Video consumption levels declined in 2022, after a pandemic-related spike in 2020 and 2021. Platform trends continue in the pattern they were already going. Traditional broadcast and pay- TV’s share of video consumption continues to decline and now accounts for only one-third of all video consumption. Check out the trending data from Parks Associates research of 10,000 internet households tracking average weekly video consumption by distribution method.

With that stated, mobile video viewing has continued to increase as a percentage of all platform viewing. It is not only hours of viewing that declined, but so are reported dollars paid for OTT viewing; between Parks Associates’ 1Q 2021 and the 2Q 2022 survey, dollars paid for OTT content went from $90 to $81.

Multiple reasons have caused this decline, both in hours and dollars:

• COVID restrictions were almost completely lifted in Q1 2022. Nearly all households went back to their normal lives, albeit with a new normal for hybrid work and, in some cases, school. This left less time for viewing and less need to have multiple viewing options to alleviate boredom.
• Inflation began to swell in 2021 with the year’s average 4.7% up from 1.2% in 2020. While 2022 is not over, it seems inflation will run at least 8%. Many of the price increases are in staples that households must purchase with food and clothes as prime examples. Fuel has come down to normal prices after reaching $5.00 per gallon in some areas of the country. These increases encourage cost-cutting in other areas of the household budget.
• Content providers started raising their monthly or annual fees due to inflation and its accompanying increases to development and labor costs. The next slide offers multiple examples between 4Q of rising content and subscription prices.

Trends in terms of the use of platforms and content viewed are continuing trends already in play. Cell phones are increasing their importance as viewing platforms, OTT subscriptions are increasing their dominance over legacy subscriptions, and age and geography cause different content and platform choices. However, all of this is happening in a changing marketplace due to inflation, world uncertainty, continued political polarization, and more.

Every content provider must work to delight ALL of its viewers. That is a formidable but critical task. Understanding your different customer segments is close to a commandment.

Parks Associates will watch data responses for signs of stabilization in subscription viewership trends. Have most of the shakeouts occurred or are providers in for rude shocks?

This is an excerpt from Parks Associates research study: Video Consumption Trends: Content and Platforms. Video Consumption Trends: Content and Platforms analyzes trends in consumption by platform (TV, SMP, computer, smartphone, tablet, and gaming console), source (linear TV, physical media, OTT video, etc.), and content access by source. It segments consumers based on their consumption habits and identifies how their video viewing habits have been changing over time.

Key questions addressed:

1. What platforms are used for video content and how has that changed over recent years?
2. How do demographics affect platform usage?
3. What are video consumption hours by type and how has that changed over recent years?
4. How do consumption hours vary by platform and key demographics?
5. How are OTT subscriptions affecting traditional subscriptions? Does subscription type affect viewing platform?
6. How do OTT subscribers and Linear TV subscribers vary in their preferred content and how does that vary by platform?

For more information on our research visit www.parksassociates.com or contact any member of our team. Thanks for the feedback you have about our research and analysis. We appreciate the support. 

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