Streaming Media: Movies and Television - US - December 2013

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Sales grow $1.2 billion in 2013
Figure 1: Total US sales and fan chart forecast of streaming movies and TV sales, 2011-18
Figure 2: Segment sales: purchases versus rentals versus purchases, at current prices, Q1-Q3 2013
Key players
Figure 3: Services used to purchase, rent, or watch video for free, September-October 2013
Figure 4: Usage of streaming VOD subscription services, September-October 2013
Brand awareness tied to ad support
The consumer
18-34s are the market
Figure 5: Penetration of usage of streaming video services, by age, September-October 2013
Figure 6: Heavy users of iVOD content – watched 6+ movies/shows in past week, by age, September-October 2013
Minority groups ahead of Whites in adoption
Figure 7: Use of streaming video, watched for free, rented, or purchased, by race/Hispanic origin, September-October 2013
Majority favor paying for content
Figure 8: Attitudes toward paying to view content, September-October 2013
What we think
ISSUES AND INSIGHTS
How much original content is enough?
The issues
The implications
Does consumer binging promote sales?
The issues
The implications
Are recommendation systems a point of differentiation?
The issues
The implications
TREND APPLICATIONS
Trend: FSTR HYPR
Trend: Mood to Order
Mintel Futures: Generation Next
MARKET SIZE AND FORECAST
Key points
Annual sales at 26% growth
Figure 9: Total US sales and forecast of streaming movies and TV sales, at current prices, 2011-18
Figure 10: Total US sales and forecast of streaming movies and TV sales, at inflation-adjusted prices, 2011-18
Fan chart forecast
Figure 11: Total US sales and fan chart forecast of streaming movies and TV sales, 2011-18
SEGMENTATION
Key points
Subscriptions carry half of sales
Figure 12: Subscription sales versus rentals versus purchases, at current prices, Q1-Q3 2012-13
COMPETITIVE CONTEXT – DVD/BLU-RAY AND DVR
Key points
Three quarters of adults buy or rent DVDs
Figure 13: Purchase and rental of DVDs and Blu-ray in past year, by age, November 2012-June 2013
Figure 14: DVD shopping online and access to a video rental store, by age, September-October 2013
DVD viewers average one purchase and two rentals per month
Figure 15: Number of DVDs/Blu-rays bought versus rented in past three months, October 2010-June 2013
About 1.5 DVDs viewed per week
Figure 16: Time spent watching DVDs in past week, October 2010-June 2013
Figure 17: Time spent watching DVDs in past week, by age, November 2012-June 2013
Figure 18: Number of DVDs/Blu-rays bought versus rented in past three months, by age, November 2012-June 2013
Limited preference for shiny discs among streamers
Figure 19: Preferences for discs over internet delivery, by age, September-October 2013
DVD gift market still rising
Figure 20: Purchase of DVDs as a gift, October 2010-June 2013
Figure 21: Purchase of DVDs as a gift in past three months, by age, November 2012-June 2013
DVR
Figure 22: DVR use, by age, November 2012-June 2013
Figure 23: Skipping ads via DVR, by household income, November 2012-June 2013
MARKET DRIVERS
Key points
Home internet subscription rising
Figure 24: Household penetration of internet service subscription, October 2011-June 2013
Figure 25: Household penetration of internet service subscription, by household income, November 2012-June 2013
Figure 26: Household penetration of internet service subscription, by age, November 2012-June 2013
Streaming device ownership and internet speed
Figure 27: Smartphone and tablet ownership, by age, June 2013
Figure 28: Personal and household ownership of computers, July 2010-March 2013
Use of smaller screens for watching movies and television
Figure 29: Use of secondary screens for streaming video, by age, November 2012-June 2013
Streaming media STB growth
Figure 30: Streaming media STB ownership, by age, November 2012-June 2013
Figure 31: Ownership and awareness of streaming media STB brands, September-October 2013
Figure 32: Streaming media STB brand ownership, by age, November 2012-June 2013
Figure 33: Streaming media STB ownership, by household income, November 2012-June 2013
Figure 34: Streaming media STB ownership, by presence of children in household, November 2012-June 2013
DVRs reduce usage
Figure 35: Amount of iVOD content watched in past week, by DVR and 3DTV owners, September-October 2013
LEADING COMPANIES
Key points
Transactional usage
No clear line for consumers between independent and studio fare
Figure 36: Services used to purchase, rent, or watch video for free, September-October 2013
Apple, Google orphan video sales
Figure 37: Google Play video ad: “Liquid,” 2013
Subscription services
Figure 38: Usage of streaming VOD subscription services, September-October 2013
INNOVATIONS AND INNOVATORS
Netflix reorients toward families
Figure 39: Usage of streaming VOD subscription services, by presence of children in household, September-October 2013
Figure 40: Netflix Profiles, November 2013
Amazon embraces product placement
Crackle gets free movies
Crunchyroll gets Asia
Figure 41: Crunchyroll homepage, November 2013
Figure 42: Fandor homepage, November 2013
MARKETING STRATEGIES
Overview
Hulu pitches next-day TV offerings
Figure 43: Hulu Plus, “Wild Night” television ad, 2013
Figure 44: Hulu, “Hulu Latino” television ad, 2013
Netflix warns that its excess of content may lead to excessive behavior
Figure 45: Netflix, “Watching ahead” television ad, 2013
Chromecast sells simple and affordable
Figure 46: Google Chromecast, “For Bigger Fun” television ad, 2013
TiVo grapples with consumer confusion
Figure 47: TiVo Roamio, “Duct tape” television ad, 2013
Roku aims to convert users from online streaming services
Figure 48: Roku, “Merry Christmas from Moxkat Grvida” online ad, 2013
SOCIAL MEDIA – STREAMING MEDIA: MOVIES AND TELEVISION
Key points
 KEY SOCIAL MEDIA METRICS
Figure 49: Key performance indicators, Nov. 18, 2012-Nov. 17, 2013
Market overview
Brand usage and awareness
Figure 50: Brand usage and awareness of streaming media brands, September 2013
Interaction with brands
Figure 51: Interaction with streaming media brands, September 2013
Online conversations
Figure 52: Selected Netflix Twitter discussions, November 21, 2013
Figure 53: Online mentions, selected streaming media brands, Nov. 18, 2012-Nov. 17, 2013
Where are people talking about streaming media brands?
Figure 54: Mentions, by page type, selected streaming media brands, Nov. 18, 2012-Nov. 17, 2013
What are people talking about online?
Figure 55: Mentions, by type of conversation, selected streaming media brands, Nov. 18, 2012-Nov. 17, 2013
Figure 56: Mentions, by type of conversations surrounding streaming media brands, by week, Nov. 18, 2012-Nov. 17, 2013
 BRAND ANALYSIS
Netflix
Figure 57: Netflix key social media indicators, November 2013
Key online campaigns
What we think
Hulu
Figure 58: Hulu key social media indicators, November 2013
Key online campaigns
What we think
iTunes
Figure 59: iTunes key social media indicators, November 2013
Key online campaigns
What we think
Amazon Instant Video
Figure 60: Amazon Instant Video key social media indicators, November 2013
Key online campaigns
What we think
Redbox Instant by Verizon
Figure 61: Redbox Instant by Verizon key social media indicators, November 2013
Key online campaigns
What we think
Vudu
Figure 62: Vudu key social media indicators, November 2013
Key online campaigns
What we think
USAGE OF STREAMING SERVICES
Key points
Subscription services
Figure 63: Usage of streaming VOD subscription services, by age, September-October 2013
Figure 64: Usage of leading streaming VOD subscription services, by household income, September-October 2013
Subscriptions not necessarily competing with transactional usage
Figure 65: Cross tabulation of usage of leading sVOD and pay TV subscription services, September 2013-October 2013
Transactional and free usage
18-34s clear leaders in usage
Figure 66: Use of streaming video, watched for free, rented or purchased, by age, September-October 2013
Figure 67: Amount of iVOD content watched in past week, by age, September-October 2013
Figure 68: Use of streaming video, watched for free, rented or purchased, by household income, September-October 2013
Figure 69: Amount of iVOD content watched in past week, by household income, September-October 2013
Figure 70: Use of streaming video, watched for free, rented or purchased, by presence of children in household, September-October 2013
Figure 71: Amount of iVOD content watched in past week, by presence of children in household, September-October 2013
Figure 72: Use of streaming video, watched for free, rented or purchased, by gender, September-October 2013
Figure 73: Amount of iVOD content watched in past week, by gender, September-October 2013
Electronic sell-through
Figure 74: Services used to purchase video, by age, September-October 2013
Role of 3DTV owners as bellwethers
Figure 75: Services used to purchase video, by 3DTV owners, September-October 2013
Rentals
Figure 76: Services used to rent videos, by age, September-October 2013
Figure 77: Services used to rent video, by 3DTV owners, September-October 2013
Ad-supported/free usage
Figure 78: Services used to watch videos for free, by age, September-October 2013
Figure 79: Services used to watch videos for free, by presence of children in household, September-October 2013
Figure 80: Services used to watch videos for free, by 3DTV owners, September-October 2013
cVOD usage
Figure 81: cVOD use, October 2010-June 2013
Figure 82: Access to cVOD, by household income, November 2012-June 2013
Figure 83: Number of cVOD movies ordered, by household income, November 2012-June 2013
Figure 84: Access to cVOD, by age, November 2012-June 2013
Figure 85: Number of VOD movies ordered, by age, November 2012-June 2013
ATTITUDES TOWARD PRICE
Key points
Majority in favor of paid content
Figure 86: Attitudes toward paying to view content, by household income, September-October 2013
Price checking uncommon
Figure 87: Incidence of price comparison for buying and renting digital movies, by household income, September-October 2013
Figure 88: Incidence of price comparison for buying and renting digital movies, by subscription service membership, September-October 2013
HD premium may be excessive
Figure 89: Regular purchase/rental of HD version of digital movies, by household income, September-October 2013
FINDING CONTENT
Key points
One third browse
Figure 90: Finding content, by age, September-October 2013
Frequent users browse for finds
Figure 91: Finding content, by amount of iVOD content watched in past week, September-October 2013
Figure 92: Finding content, by age, September-October 2013
Figure 93: Apps and social media usage to find or post content, by age, September-October 2013
Figure 94: Apps and social media usage to find or post content, by amount of iVOD content watched in past week, September-October 2013
INTEREST IN LIVE EVENTS
Key points
Streamers interested in live events
Figure 95: Current live event viewing online and interest in iVOD for live events, September-October 2013
Figure 96: Current live event viewing and interest in iVOD for live events, by gender, September-October 2013
Figure 97: Current live event viewing and interest in iVOD for live events, by age, September-October 2013
RACE AND HISPANIC ORIGIN
Key points
Shifting Asians and Hispanics from physical to digital
Figure 98: Number of DVDs/Blu-rays bought and rented in past three months, by race/Hispanic origin, November 2012-June 2013
Minority groups ahead of curve on streaming
Figure 99: Use of streaming video, watched for free, rented, or purchased, by race/Hispanic origin, September-October 2013
Figure 100: Apps and social media usage to find or post content, by race/Hispanic origin, September-October 2013
STB penetration twice as high among Asians
Figure 101: Streaming media STB ownership, by race/Hispanic origin, November 2012-June 2013
APPENDIX – USAGE DATA FROM OFFLINE SURVEY
Key points
Streaming video websites
Figure 102: Streaming video websites visited in last 30 days, October 2010-June 2013
Figure 103: Streaming video websites visited in last 30 days, by age, November 2012-June 2013
Figure 104: Streaming video websites visited in last 30 days, by race/Hispanic origin, November 2012-June 2013
Figure 105: Streaming video websites visited in last 30 days, by household income, November 2012-June 2013
Figure 106: Streaming video websites visited in last 30 days, by presence of children in household, November 2012-June 2013
Number of visits to specific streaming websites in past 30 days
Figure 107: Number of visits in past 30 days: Youtube.com, by gender, November 2012-June 2013
Figure 108: Number of visits in past 30 days: Youtube.com, by age, November 2012-June 2013
Figure 109: Number of visits in past 30 days: Youtube.com, by race/Hispanic origin, November 2012-June 2013
Figure 110: Number of visits in past 30 days: Netflix.com, by gender, November 2012-June 2013
Figure 111: Number of visits in past 30 days: Netflix.com, by age, November 2012-June 2013
Figure 112: Number of visits in past 30 days: Netflix.com, by household income, November 2012-June 2013
Figure 113: Number of visits in past 30 days: Hulu.com, by gender, November 2012-June 2013
Figure 114: Number of visits in past 30 days: Hulu.com, by presence of children in household, November 2012-June 2013
Figure 115: Number of visits in past 30 days: Fox.com, by gender, November 2012-June 2013
Figure 116: Number of visits in past 30 days: NBC.com, by gender, November 2012-June 2013
Figure 117: Number of visits in past 30 days: CBS.com, by gender, November 2012-June 2013
Figure 118: Number of visits in past 30 days: ABC.com, by gender, November 2012-June 2013
Streaming movies/television
Figure 119: Movie downloading and streaming in past 30 days, October 2010-June 2013
Figure 120: Number of videos streamed in past 30 days, October 2010-June 2013
Figure 121: Movie downloading and streaming in past 30 days, by age, November 2012-June 2013
Figure 122: Movie downloading and streaming in past 30 days, by race/Hispanic origin, November 2012-June 2013
Figure 123: Number of videos watched online in past 30 days – Watch videos, TV programs, or movies online, by age, November 2012-June 2013
Figure 124: Number of video watched online in past 30 days – Watch videos, TV programs, or movies online, by household income, November 2012-June 2013
APPENDIX – SOCIAL MEDIA
Brand usage/awareness
Figure 125: Brand usage or awareness, September 2013
Figure 126: Hulu usage or awareness, by demographics, September 2013
Figure 127: Vudu usage or awareness, by demographics, September 2013
Figure 128: Netflix usage or awareness, by demographics, September 2013
Figure 129: Amazon Instant Video usage or awareness, by demographics, September 2013
Figure 130: iTunes usage or awareness, by demographics, September 2013
Figure 131: Redbox Instant by Verizon usage or awareness, by demographics, September 2013
Activities done
Figure 132: Activities done, September 2013
Figure 133: Hulu – Activities done, by demographics, September 2013
Figure 134: Netflix – Activities done, by demographics, September 2013
Figure 135: Amazon Instant Video – Activities done, by demographics, September 2013
Figure 136: iTunes instant video – Activities done, by demographics, September 2013
Figure 137: Redbox Instant by Verizon – Activities done, by demographics, September 2013
Online conversations
Figure 138: Online mentions, selected streaming media brands, Nov. 18, 2012-Nov. 17, 2013
Figure 139: Mentions, by page type, selected streaming media brands, Nov. 18, 2012-Nov. 17, 2013
Figure 140: Mentions, by type of conversation, selected streaming media brands, Nov. 18, 2012-Nov. 17, 2013
Figure 141: Mentions, by type of conversations surrounding streaming media brands, by week, Nov. 18, 2012-Nov. 17, 2013
APPENDIX – ADDITIONAL CONSUMER TABLES
Subscription usage
Figure 142: Use of streaming VOD subscription services, by race/Hispanic origin, September-October 2013
Figure 143: Use of streaming VOD subscription services, by 3DTV owners, September-October 2013
Free usage
Figure 144: Free use of streaming video, by gender, September-October 2013
Figure 145: Free use of streaming video, by user groups, September-October 2013
Figure 146: Free use of streaming video, by presence of children in household, September-October 2013
Figure 147: Free use of streaming video, by household income, September-October 2013
Figure 148: Free use of streaming video, by race/Hispanic origin, September-October 2013
Rentals
Figure 149: Streaming rentals, by gender, September-October 2013
Figure 150: Streaming rentals, by household income, September-October 2013
Figure 151: Streaming rentals, by race/Hispanic origin, September-October 2013
Figure 152: Streaming rentals, by presence of children in household, September-October 2013
Figure 153: iVOD rentals, by user groups, September-October 2013
Purchases
Figure 154: EST, by household income, September-October 2013
Figure 155: EST, by presence of children in household, September-October 2013
Figure 156: iVOD purchases, by gender, September-October 2013
Figure 157: EST, by race/Hispanic origin, September-October 2013
Amount viewed in past week
Figure 158: Amount of iVOD content watched in past week, by race/Hispanic origin, September-October 2013
Figure 159: Amount of iVOD content watched in past week, by presence of children in household, September-October 2013
Figure 160: Amount of iVOD content watched in past week, by subscriptions, September 2013-October 2013
Figure 161: Amount of iVOD content watched in past week, by subscriptions, September 2013-October 2013 (continued)
Finding content
Figure 162: Finding content, by gender, September-October 2013
Figure 163: Finding content, by household income, September-October 2013
Figure 164: Finding content, by race/Hispanic origin, September-October 2013
Figure 165: Finding content, by user groups, September-October 2013
Price and ads
Figure 166: Attitudes toward price and ads, by race/Hispanic origin, September-October 2013
Figure 167: Attitudes toward price and ads, by user groups, September-October 2013
Figure 168: Attitudes toward price and ads, by gender, September-October 2013
Figure 169: Attitudes toward price and ads, by age, September-October 2013
Figure 170: Attitudes toward price and ads, by race/Hispanic origin, September-October 2013
Figure 171: Attitudes toward price and ads, by presence of children in household, September-October 2013
Use of secondary screens
Figure 172: Use of secondary screens for streaming video, by race/Hispanic origin, November 2012-June 2013
Use of discovery apps and social TV
Figure 173: Apps and social media usage to find or post content, by presence of children in household, September-October 2013
Figure 174: Apps and social media usage to find or post content, by 3DTV owners, September-October 2013
DVD shopping online and access to a video rental store
Figure 175: DVD shopping online and access to a video rental store, by 3DTV owners, September-October 2013
Figure 176: DVD shopping online and access to a video rental store, by household income, September-October 2013
Live event viewing
Figure 177: Current live event viewing and interest in iVOD for live events, by household income, September-October 2013
Figure 178: Current live event viewing and interest in iVOD for live events, by race/Hispanic origin, September-October 2013
Figure 179: Current live event viewing and interest in iVOD for live events, by 3DTV ownership, September-October 2013
Figure 180: Current live event viewing and interest in iVOD for live events, by user groups, September-October 2013
DVD usage
Figure 181: Purchase of DVDs as a gift in past three months, by race/Hispanic origin, November 2012-June 2013
DVR usage
Figure 182: DVR use, by race/Hispanic origin, November 2012-June 2013
Figure 183: DVR use, by household income, November 2012-June 2013
Figure 184: Skipping ads via DVR, by age, November 2012-June 2013
Figure 185: Skipping ads via DVR, by race/Hispanic origin, November 2012-June 2013
APPENDIX – TRADE ASSOCIATIONS