Reasons why consumers prefer to watch TV online
Consumers’ TV viewing habits have started to shift more towards online devices. According to a survey conducted by Comscore, Millennials—consumers between age 18 and 34 years—spend one-third of their time watching original TV series through digital platforms such as tablets, smartphones, and laptops. Interestingly, about 16% of Millennials didn’t watch any original TV series from traditional TV sets in the last 30 days. This finding underscores the phenomenon of “cord-cutting” that we discussed earlier in this series.
There are a number of reasons why consumers have started to watch TV programs through the Internet. The Comscore report mentions that more than half of online TV viewers cited schedule flexibility and convenience as the main reasons for watching TV online. There were some other reasons, too, such as the ability to skip commercials, the ability to watch multiple episodes sequentially, and the lower cost compared to cable and pay-TV services such as Comcast (CMCSA) and Time Warner Cable (TWC).
Internet-connected TV devices are the most popular mode of watching Netflix
As we discussed in the previous part of this series, Netflix (NFLX) is the most popular video streaming player, followed by Amazon (AMZN) and Hulu. The most preferred mode of watching Netflix is through Internet-connected TV devices such as Apple (AAPL) TV and Google (GOOG)(GOOGL) Chromecast. As the chart above shows, 44% of people preferred Internet-connected TV devices for watching Netflix. This preference was followed by desktop and laptop preference, gaming console or Blu-ray device preference, and mobile device preference.