BOSTON--(BUSINESS WIRE)--Look out, rotary dial phone. Here comes the TV remote. Nearly half of young TV viewers say they’d prefer their smartphone or other device over their remote to control their TV, according to a new report released today. The survey by Altman Vilandrie & Company and Research Now found that 41 percent of 18- to 34-year-olds would prefer using their smartphone, tablet or computer keyboard to change channels and control their TV.
The decline of the TV remote is part of a larger movement by younger viewers to control the TV experience, with only one-third of 18- to 34-year-olds saying they watch TV shows during the normal broadcast time on a daily basis, versus 58 percent of those 35 and older. These younger viewers are increasingly turning to mobile devices and online services like Netflix and Hulu to access television programs and movies. The survey also shows that the number of consumers spending less on cable TV, also known as “cord-shaving,” has increased as other delivery options like online and mobile viewing become more popular.
“Instead of the age-old argument about who holds the TV remote, families will soon be squabbling over whose smartphone is controlling the TV,” said Altman Vilandrie & Company Director Jonathan Hurd, who oversaw the research project. “More and more, a new generation of viewers wants to watch TV and movies on their own schedule and with their own smartphones, computers and tablets. Consumers are removing the shackles of the traditional primetime TV lineup and creating their own personal networks of preferred programming and viewing times.”
Twenty percent of consumers say they spend less on cable TV than they used to because online video meets their needs. This “cord-shaving” is up from 15 percent last year, the survey found. Twenty-four percent of 18- to 34-year-olds have “seriously considered” dropping cable service because online video meets their needs, though only 3 to 4 percent of all consumers say they have actually “cut the cord” or cancelled their cable service because of online video. Sixty percent of this same age group watch online videos at least once a week.
Other findings of the survey include:
- Eleven percent of smartphone owners aged 18 to 34 watch TV shows and movies on a mobile phone daily.
- Multitasking with laptop and desktop PCs during TV viewing is common for all age groups, while 28 percent of tablet owners multi-task with their tablet at least half the time while watching TV.
- Half of 18- to 34-year-olds say they would prefer an alternate program guide, such as a screen with apps or images of available content, to a traditional TV guide.
- Netflix is an important factor in many people’s broadband subscription and speed choices. Twenty-three percent of Netflix streaming subscribers who have broadband service said Netflix is the main reason they subscribe to broadband Internet. Twenty-two percent said they would downgrade their broadband Internet service without Netflix.
Hurd noted that while the results indicate significant challenges for traditional service providers, particularly in meeting the needs of younger consumers, “there are clear opportunities for cable TV providers to differentiate versus online video alternatives.” While many viewers are eschewing the traditional prime time TV schedule, consumers still have strong preferences for more recent TV shows and movies. In addition, while online video brands are gaining ground in younger segments, consumers still have a clear preference for their cable operator as the provider of TV show and movie subscription services. The providers that can best integrate the flexibility of online distribution and mobile viewing options, while creating a user-friendly experience will be better positioned to retain younger viewers. In addition, a vast majority of all viewers, including 75 percent of 18- to 24-year-olds, are bothered by a lack of HD, indicating that providers have an opportunity to attract younger viewers with better picture quality.
The full research study provides insight into additional areas such as:
- Subscription TV, Internet video, and mobile video usage by age segment, living situation and spending level
- Device ownership for key technologies such as Internet-connected TVs, video-enabled mobile handsets, tablets, and Internet-streaming devices across demographics
- Subscription video service features’ importance and consumer willingness to pay
The survey also used discrete choice analysis to quantify consumers’ interest in add-on video and TV programming services. Altman Vilandrie & Company has been using the survey results to explore optimal pricing models for online video.
Research Now fielded the online survey with more than 1000 U.S. consumers in July. For details about further research topics and more information about the study, contact Jonathan Hurd at jhurd@altvil.com.
About Altman Vilandrie & Company
Altman Vilandrie & Company is a strategy consulting group that focuses on the communications, media, smart grid, clean tech and related technology and investor sectors. The company’s consultants are experienced in strategy, marketing, finance, M&A, technology, regulatory and operations disciplines. With offices in Boston and New York City, Altman Vilandrie & Company enables clients to seize new opportunities, navigate mounting challenges, improve business performance, and increase investor value within complex and converging industries. Ninety percent of the boutique firm’s operator clients are large- to mid-cap companies including service providers, content creators and aggregators, and equipment and software developers. Altman Vilandrie & Company’s financial clients include many of the largest and most prominent investors in the communications, media and related technology markets. More information can be found at www.altvil.com.
About Research Now
Research Now is the leading global online sampling and data collection company. With more than 6 million panelists in 38 countries worldwide, Research Now enables companies to listen to and interact with consumers and business decision makers in order to make key business decisions. Research Now offers a full suite of data collection services, including social media sampling, and operates the Valued Opinions™ Panel and e-Rewards® Opinion Panels. The company has a multilingual staff located in 22 offices around the globe and has been recognized for four consecutive years as the industry leader in client satisfaction. Visit http://www.researchnow.com to learn more.
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