Content Consumption: TV and Movies - US - August 2016

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
A turbulent yet also static market
Figure 1: Total US sales and fan chart forecast of recorded movie/TV program sales, rentals, and digital subscriptions, at current prices, 2011-21
Total entertainment spending is limited
Figure 2: Average consumer entertainment spending, 2010-14
The opportunities
Younger women a prime target
Figure 3: Mean amount spent on services, by gender and age, May 2016
Push harder to parents
Figure 4: Mean amount spent on services, by parental status, May 2016
Make cable compelling
Figure 5: Method of viewing content, May 2016
What it means
THE MARKET – WHAT YOU NEED TO KNOW
A relatively static market
Pay TV has the lion’s share
A sector on the cusp of change
MARKET SIZE AND FORECAST
Historic and projected sales performance
Figure 6: Total US sales and fan chart forecast of recorded movie/TV program sales, rentals, and digital subscriptions, at current prices, 2011-21
Figure 7: Total US recorded movie/TV program sales and rentals, at current prices, 2011-21
Figure 8: Cable and satellite pay TV revenues, at current prices, 2011-21
MARKET BREAKDOWN
Cable is still king
Figure 9: Total US recorded movie/TV program sales and rentals, at current prices, 2011-21
MARKET PERSPECTIVE
Big screens, smaller audiences?
MARKET FACTORS 
Winning wallet share
Figure 10: Average consumer annual entertainment spending, 2010-14
Back to the future – of advertising?
Mind the gap
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Getting content right is critical
Take better care of your customers
Bringing movie night home
WHAT’S WORKING?
Content is king
Cord cutting: Not just for consumers
WHAT’S STRUGGLING?
Customer (dis)satisfaction
Big, bad bundles
WHAT’S NEXT?
Taking on theaters
From 4K to 8K – and beyond?
THE CONSUMER – WHAT YOU NEED TO KNOW 
Pay TV the priciest, but also most popular
Younger men, parents, and Hispanics most engaged consumers
Netflix catching up fast in viewing
Discs still the main choice for rental and sale
TVs dominate video viewing
AMOUNT SPENT ON CONTENT 
Pay TV most popular service
Figure 11: Service usage, by type, May 2016
Pay TV the priciest option
Figure 12: Mean amount spent on services, by type, May 2016
Higher-income respondents spend more
Figure 13: Mean amount spent on services, by household income, May 2016
Parents a key customer segment
Figure 14: Mean amount spent on services, by parental status, May 2016
Hispanics the highest spenders
Figure 15: Mean amount spent on services, by race/Hispanic origin, May 2016
METHODS OF VIEWING CONTENT
Cable, Netflix in the lead
Figure 16: Method of viewing content, May 2016
Younger men the biggest fans
Figure 17: Method of viewing content, by gender and age, May 2016
Low-income consumers lag in streaming use
Figure 18: Method of viewing content, by household income, May 2016
Families love to stream
Figure 19: Method of viewing content, by age of children in the household, May 2016
PROVIDERS USED FOR PURCHASE/RENTAL
Physical DVDs still in the lead
Figure 20: Providers used for purchase/rental, May 2016
Younger consumers rent less overall
Figure 21: Providers used for purchase/rental, by age, May 2016
Parents use a variety of different services
Figure 22: Providers used for purchase/rental, by parental status, May 2016
FAMILIARITY WITH SERVICES
Awareness still low for many new services
Figure 23: Familiarity with services, May 2016
Young men most engaged with new services
Figure 24: Usage of services, by gender and age, May 2016
High awareness, low usage for low-income group
Figure 25: Usage of services by household income, May 2016
Hispanics are on the cutting edge
Figure 26: Usage of services, by race and Hispanic origin, May 2016
DEVICES USED FOR VIEWING CONTENT
TVs still rule
Figure 27: Devices used for viewing content, May 2016
Younger women still like TV
Figure 28: Devices used for viewing content, most frequently used device, by gender and age, May 2016
Lower-income consumers more likely to use PCs
Figure 29: Devices used for viewing content, most frequently used device by household income, May 2016
Families fragment viewing behavior
Figure 30: Devices used for viewing content, most frequently used device, by age of children in household, May 2016
ATTITUDES TOWARD VIDEO CONTENT
Cord cutters still in the minority
Figure 31: Attitudes toward video content, May 2016
Young men driven by sports
Figure 32: Attitudes toward video content, by gender and age, May 2016
Hispanics rely on recommendations for content
Figure 33: Attitudes toward video content, by Hispanic origin, May 2016
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations
Terms
APPENDIX – MARKET 
Figure 34: Total US recorded movie/TV program sales and rentals, at inflation-adjusted prices, 2011-21
Figure 35: Cable and satellite pay TV revenues, 2010-14
Figure 36: Mean entertainment spending by household, 2010-14