Findings from digital content delivery specialist Limelight Networks demonstrate a clear shift in video consumption trends led by Millennials. Among the findings, the research reveals that, under the right circumstances, 90 per cent of consumers are open to “cutting the cord” and cancelling their cable and pay-TV subscriptions in favour of over-the-top (OTT) video services such as HBO Now and Hulu.
“Our findings show that consumers are increasingly moving away from the traditional television experience towards online viewing,” says Jason Thibeault, senior director at Limelight and author of the report – The State of Online Video. “With Millennials leading this change, consumers are driven by the flexibility of being able to watch what they want, where they want, and on whatever device they choose.”
While OTT service offerings are in their early stages, consumers are beginning to move in that direction choosing to get the content they want directly from the content owner over the Internet rather than from a pay-TV service provider. In fact, 90 per cent of respondents said they either don’t have cable or would be willing to cut the cord for reasons such as price increases or the ability to subscribe directly to the channels they want. Flexibility of watching on demand and cost are two main drivers of this shift.
On average, Millennials view 4-7 hours of online video a week, nearly twice that of all other age groups surveyed. Despite the popularity of mobile devices and smartphones, today personal computers are the top choice for consuming online video across all age groups. However, younger viewers are 10 percent more likely to watch on a smartphone than any other age group.
The study is Limelight Network’s latest in a series of annual surveys that explore consumer perceptions and behaviours around digital content. The survey was conducted in April 2015 and is based on responses from 1,200 consumers globally.