Streaming TV viewership booming, states report
Content getting thumbs up but viewer attention span almost non existent.
Specialist streaming analysts Convivia has released its 'State of The Streaming TV Industry Q1 2019' report and it shows a surge in viewers watching streamed content.Convivia supports 250 industry players including, HBO, PlayStation Vue, Hulu, and Sky and gains its data from the analysis of real-time transactions on 3 billion streaming apps in 180 countries before producing regular reports.
Overall, the report shows a 72% increase in streaming hours, split across connected TVs, mobile devices and PCs, and fuelled by a 49% faster uptake compared to the same quarter in 2018. Additionally, the quality of streaming services is generally improving but advertisers need to be cautious since the rate of ad failures has increased.
Viewing on connected TVs (which includes Smart TVs, streaming players and games consoles) appears to edge ahead as the favoured platform for streaming services as 74% of viewing hours were hosted here compared to 73% on mobile devices.
Roku TV claims 42% of all streamed hours compared to 18.6% for Amazon Fire TV, though Amazon did increase their share from 11.4% for the same quarter in 2018. Apple TV has seen an increase of 113% increase year on year. Although this still only accounts for a 10% share of viewed hours, Apple will probably see this as a positive indication for their upcoming Apple TV Plus service. Interestingly, only Samsung’s Tizen platform registers amongst the Smart TV platforms.Describing the findings as ‘TV’s triumph,’ Bill Demas, CEO of Conviva, said, "There’s no surprise that the streaming TV market is expanding significantly."
He went on, "Streaming viewership is up across the board. Consumption on connected TV devices continues to grow the fastest of any device at 74.3% year-over-year to account for 56.1% of all viewership in Q1 2019. Connected TVs also delivered the biggest improvements in quality with 60.1% less buffering, 20.6% better picture quality, and 42.7% less video start failures year-over-year."
The emphasis on quality is a crucial factor in encouraging viewers to stick with a stream, the report states. It found that viewers' patience is limited and a short delay of 5 seconds before a video starts is enough to cause 13.6% of viewers to move onto something else.
"Maintaining a high-quality viewer experience tightly across content and advertising is increasingly important as streaming providers look to increase viewer engagement and monetization,” concluded Conviva.
An audiences grew, the report noted a concurrent improvement in bitrate and a reduction in buffering. There was praise for Apple. “Apple TV also continues to impress with a strong focus on the viewer experience. This includes the industry’s shortest video start time at 2.25 seconds versus 4.65 sec across all connected TVs and highest bitrate at 7.1 Mbps as compared to the 5.4 Mbps for the connected TV category."
Worryingly for advertisers though, the report makes it clear that there are some technical issues to overcome regarding the smooth streaming of their ads. Taking into account delays by caused by wrapper ads, failure involving incorrect ad media rendition, up to 12% empty ad response, and other problems, the total ad failure rate was 47%. This pushed viewers away who would otherwise appear to be happy to experience adverts as long as they are seamlessly presented.
Given the more advanced position of the US market in adopting streaming services, it’s probably not surprising that examples of events successfully viewed using streaming platforms included live sporting events such as the recent Super Bowl final, which led to a peak increase of 157% in streaming viewership.
The report predicts that Social Media has a part to play in content distribution and monetization. Viewership for peak events such as The Oscars and recent important political proceedings demonstrated that different Social media platforms were favoured depending upon the occasions - for example, Instagram for the Golden Globes, Facebook for the Cohen Hearing and Mueller Report.
The expectation is that 2019 will be a significant year as new services from Apple, Disney and WarnerMedia enter a crowded market to challenge established players such as Netflix, Amazon and Hulu.
The report stated, “Compelling content will bring viewers to the service, but the quality of the viewing experience across the full stream is a vital component to acquire, retain, and monetize viewers.” It concluded, “Services will have to deliver an excellent experience in order to command a premium in the increasingly crowded streaming landscape.”
Source: www.flatpanelshd.com, www.convivia.com
Image Source: Convivia.com
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