Video Quality Is a Key Factor and Content Availability Is Gaining
Ground on Price As Primary Reason Consumers Shift to Viewing
Over-the-Top Content
TEMPE, Ariz.--(BUSINESS WIRE)--
As consumers find themselves with a wider variety of over-the-top (OTT)
content options, price is becoming less of a factor in the decision to
cut the cord with pay TV providers while content availability
increasingly drives decision-making. Streaming video services are
surging in popularity, with seven out of 10 consumers now subscribing to
at least one service. These are among the findings of the Limelight
Networks, Inc. (Nasdaq: LLNW), semi-annual ‘State of Online Video’
research report, which examines consumer behaviors and perceptions
around watching online video.
Twenty nine percent of respondents cited rising prices as the primary
reason they would cut the cord, down more than 8 percent since May 2015.
By contrast, 20 percent of consumers said a key factor would be the
ability to directly subscribe to the channels they want online, up 4
percent in the same timeframe. Surprisingly, the number of respondents
who would “never terminate cable or pay television subscription” has
risen from 10 percent to 15 percent since 2015. This reinforces the
diminishing impact of price on cord cutting and a shift to content
availability driving behavior.
The availability of content is particularly important to Millennials
(aged 18 to 35), who were similarly price-averse as the population as a
whole. The most striking contrast is that Millennials are seven percent
more likely to shift viewing to OTT content and cancel pay TV
subscriptions when they can subscribe to channels directly. Millennials
are also at the center of the overall dramatic surge in OTT content
consumption. Eighty percent of Millennials subscribe to at least one OTT
service and 39 percent report watching at least seven hours of online
video per week. Among the entire consumer population, 69 percent
subscribe to at least one OTT service – a ten percent increase since May
2015.
The study also found that computers and laptops remain the dominant
devices for watching online video; however, their days at the top may be
numbered. For Millennials, the smartphone is the most popular device for
watching online video and gaining ground among the broader population.
“Our research continues to show increasing adoption of OTT content,
especially among younger consumers,” said Nigel Burmeister, vice
president of global marketing at Limelight Networks. “Consumers are
demanding access to content when they want it, using the device of their
choosing. Traditional providers and delivery models are increasingly at
risk of being left behind as consumers become more savvy.”
Additional key findings from the research include:
- Video quality is becoming increasingly important. Consumers
continue to report buffering to be the most frustrating part of
watching online video, but poor video quality is starting to close the
gap.
- YouTube’s decline may signal an interest in higher quality online
content. TV shows and movies remain the most watched type of
online video, with original content/YouTube demonstrating a steady
decline since the last study. Millennials in particular are watching
less YouTube in favor of OTT services.
- Advertising in online video is becoming more accepted.
Respondents are increasingly fine with online video ads – particularly
if it allows them to access content for free. Interestingly,
Millennials are the most accepting of advertisements.
- Millennials are the video sharing generation. Across all social
media channels, Millennials share dramatically more video than their
generational counterparts with Facebook continuing as the channel of
choice for all generations.
“The State of Online Video” report is based on a survey fielded in May
2016 that collected data from 1,086 consumers ranging in age, gender and
education, located in the United States, the United Kingdom and Canada.
To view the report in full, please click here.
About Limelight
Limelight Networks (NASDAQ: LLNW), a global
leader in digital content delivery, empowers customers to better engage
online audiences by enabling them to securely manage and
globally deliver digital content, on any device. The company’s award
winning Limelight Orchestrate™ platform includes an integrated suite of
content delivery technology and services that helps organizations secure
digital content, deliver exceptional multi-screen experiences, improve
brand awareness, drive revenue, and enhance customer relationships — all
while reducing costs. For more information, please visit www.limelight.com,
follow us on Twitter , Facebook and LinkedIn and
be sure to visit our online community and read our blogs on Limelight
Connect.
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fama PR on behalf of Limelight Networks
Dan Gaffney, 617-986-5036
limelight@famapr.com
or
Investor
Inquiries:
ir@limelight.com
Source: Limelight Networks, Inc.