NEW YORK--(BUSINESS WIRE)--With services such as Netflix and Hulu raising the bar for convenience in video viewing, TV networks are in a bind. They have little choice but to offer the ready program access that consumers have come to expect – but the net benefit in ad revenue is increasingly unclear.
A new GfK report, TV’s Digital Connections 2013 – the seventh in an annual series – defines these difficult trade-offs. When asked if they “think more highly” of TV networks that make shows freely available, 42% of consumers agree – a figure that rose steadily from 2006 (31%) to 2011, but now seems to have plateaued.
During the same timeframe, the proportion of those who say they “expect to be able to watch my favorite shows on a device of my choice” has nearly doubled, from 19% in 2006 to 34% now.
But those who watch network programs via streaming options are now more likely to say that this erodes their “traditional” viewing of the same shows. One in three (33%) report that they watch less “regular” TV as a result of streaming viewing, compared to one in four (24%) who say they watch more – a net differential of -9 percentage points.
As recently as 2008, GfK’s research showed that streaming options provided a net benefit to regular TV viewing; that year, the differential was +5 points, with 25% saying they watched more regular TV, while 20% said they watched less.
At the same time, 27% of those who use streaming or downloaded video now say that they “watch a greater number” of shows because of these options – more than double the 2006 figure of 12%. And 21% report that they spend more time watching TV content thanks to digital viewing options.
“Traditional ad-supported TV remains the networks’ biggest revenue source – so anything that impinges on that viewing is a concern,” said David Tice, Senior Vice President in Media and Entertainment at GfK. “While greater time spent with TV content is certainly good news, the notion of ‘digital nickels versus analog dollars’ clearly applies. TV networks need to begin to make the underlying value of digital viewers pay off more consistently.”
About GfK
GfK is one of the world’s largest research companies, with more than 12,000 experts working to discover new insights into the way people live, think and shop, in over 100 markets, every day. GfK is constantly innovating and using the latest technologies and the smartest methodologies to give its clients the clearest understanding of the most important people in the world: their customers. In 2012, GfK’s sales amounted to EUR 1.51 billion.
To find out more, visit www.gfk.com/us or follow GfK on Twitter: https://twitter.com/GfK_en.
