|[April 04, 2014]
Accenture Consumer Survey Finds Addressable Screens Reshaping the Entertainment Landscape
NEW YORK --(Business Wire)--
Consumer viewing of TV programming and movies over the Internet is
growing, according to a new survey released today by Accenture (News - Alert)
(NYSE:ACN). The demand for more devices and more online content, as well
as consumers' willingness to pay for better access to content, is
reshaping the media and entertainment landscape.
The fourth annual multi-national "Accenture
Digital Consumer Survey" for communications, media and technology
companies, found significant daily consumption of online content across
a number of different devices and video screens.
The survey found that 25 percent of respondents indicated they intend to
purchase a connected TV in the next 12 months. And, another 11 percent
intend to replace an existing connected television, while 12 percent
plan to purchase a tablet, expanding the market of addressable screens
"If consumers act on these intentions, it will represent remarkable
growth in the addressable market for online video," said Gavin Mann,
Accenture's global broadcast industry lead. "This rapid digital
expansion is fostering a new era of personalized TV experiences with the
number of video-centric connected devices predicted to surpass the
world's population by 2017."
The survey also found that close to half (44 percent) of all respondents
are viewing full-length movies and TV shows over the Internet on a daily
basis, and 39 percent do so weekly. This demand was not hindered by the
fact that 86 percent reported streaming interruptions and 71 percent
noted considerable slowdowns in the viewing experience.
In an encouraging sign for service providers, 60 percent of respondents
streaming video at home indicated they were willing to pay for a faster
connection, while just as many (62 percent) said they would pay extra
for better quality so they could view videos whenever and wherever they
"Today's consumers are viewing so much online video content that they
are willing to pay for faster connections," said Mann. "That's good news
for content owners and for the service providers who are investing
heavily in super-fast broadband. The fact that consumers are also
willing to pay more for the content itself is a huge vote of confidence
in the validity of over-the-top services."
Battle of the Titans: New Entrants, New Services
Consumers clearly want all of their content to be seamlessly bundled.
When asked to express their preference for a non-traditional broadcaster
to provide them access to video, respondents selected Google, Apple and
Samsung (News - Alert), in that order. The selections were based on the companies'
potential to deliver Pay TV, VOD and Catch-up TV, not the current core
capabilities of these companies.
"It is no coincidence that the three most popular brands also have the
largest market share of phones and tablets. Consumers clearly value
content seamlessly bundled with devices - the reason Amazon dominates
the ebook market with Kindle - it provides the best end-to-end
experience. It will be interesting to see if Amazon climbs up the list
when they launch a TV product," said Mann.
"These disruptors are clearly bringing a lot of new technology to our
century-old television viewing experience. Today's incumbents have a
great opportunity if they can innovate, while successfully leveraging
their core strengths. Tomorrow's high performers - will be those that
combine art and technology."
Consumers Willing to Take Chances
Consumers expressed growing confidence in Ultra HDTV, with 18 percent
looking forward to buying an Ultra HDTV set over the next 12 months
despite a lack of content and streaming outlets. This suggests a
trajectory similar to that off HD, where strong early adoption of TV
sets ultimately drove up the supply of HDTV channels and Blu-ray discs.
Despite more than half (55 percent) of respondents expressing concerns
about data security, two-thirds (67 percent) are willing to provide
additional personal data if service providers will offer additional
services or discounts. Of course, these offers need to comply with local
data protection laws. Having grown-up with computers, Millennials appear
to be the generation that is most comfortable sharing their personal
information, with Generation X and Baby Boomers significantly less
"Broadcasters must gain this trust if they are going to offer new
products and services such as recommendation engines and targeted
advertising based on consumer data," said Mann.
Mobile Video is the Next Frontier
Consumers are viewing digital content across more mobile screens but it
remains anchored in the home. The overwhelming majority (more than 90
percent) of all digital consumption still occurs in the home via a fixed
line. Bandwidth (News - Alert) constraints outside the home also continue to limit
mobile entertainment to a highly significant degree.
"There is a significant opportunity here for providers that can offer a
truly mobile video experience regardless of location. The race is on to
create the compelling mobile user experience, 'the Spotify (News - Alert) for Video' -
which, combined with increased 4G network coverage, could create the
next tipping point," said Mann.
If you would like to contribute to the ongoing discussion about these
themes and trends, please join us online at Pulse
of Media or follow #PulseofMedia on Twitter (News - Alert).
Digital Consumer Survey was conducted online between October and
December, 2013, with 23,000 consumers in 23 countries: Australia,
Brazil, Canada, China, Czech Republic, France, Germany, India,
Indonesia, Italy, Japan, Mexico, Netherlands, Russia, Saudi Arabia,
South Africa, South Korea, Spain, Sweden, Turkey, United Arab Emirates,
the United Kingdom, and the United States. The sample in each country is
representative of the online population, with respondents ranging in age
from 14 to 55 and over. The survey polled respondents about their daily
consumption of online content across a number of devices and video
Accenture is a global management consulting, technology services and
outsourcing company, with approximately 289,000 people serving clients
in more than 120 countries. Combining unparalleled experience,
comprehensive capabilities across all industries and business functions,
and extensive research on the world's most successful companies,
Accenture collaborates with clients to help them become high-performance
businesses and governments. The company generated net revenues of
US$28.6billion for the fiscal year ended Aug. 31, 2013. Its home page is www.accenture.com.
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