Content Consumption Milestone: Number of Streaming Video Viewers Now Equal To Paid TV Subscribers, Says CTA

Video consumption on TVs now equaled by consumption on all other
consumer tech devices

ARLINGTON, Va.–(BUSINESS WIRE)–For the first time ever, the percentage of free or paid streaming video
subscribers in the U.S. (68 percent) has caught up to the number of paid
TV subscribers (67 percent), according to new research from the Consumer
Technology Association (CTA) ™. The new study, The Changing Landscape
for Video and Content, also shows the time consumers spend watching
video content on TVs (51 percent in 2016, down 11 points since 2012) is
now equaled by – within the sampling margin of error – time spent
watching video content on all other consumer technology devices (49
percent) including laptops, tablets and smartphones.

“More and more consumers are embracing the freedom of connectivity – in
this case, the anytime/anywhere access to video content,” said Steve
Koenig, senior director of market research, CTA. “This is one of the
driving trends of our time. Today’s advancement of technology delivers
‘content convenience’ that results in cultural changes such as binge
watching, second screen behavior, content recommendations and the
screens consumers use to consume video. And we expect streaming
subscribers to surpass paid TV services – and by a fair margin – in the
next year or so.”

“Are You Still Watching?”

The growing diversity of content sources and consumer viewing devices
helped raise consumers’ average video consumption. On average, the
amount of video that consumers watch per week is increasing considerably
– up 32 percent since 2001 (16.8 hours a week in 2016, from 12.7 hours
in 2011) – or 3.2 hours a day.

“Because you watched…”

Most consumers still learn about new content through traditional methods
such as commercials on TV (56 percent), word-of-mouth (54 percent) and
internet search (32 percent). Yet roughly one in five cite
nontraditional mediums such as streaming service recommendations (23
percent), social media (21 percent) or radio, TV or podcast host
recommendations (16 percent) as content discovery sources.

Market Overview: TVs

Even with the largest ownership rates (96 percent of American households
own TVs) and high density (2.8 TVs per household) according to other CTA
projections, 4K Ultra HD TVs are among the tech industry’s fastest
growing segments. Significantly outpacing the transition to
high-definition television, CTA projects shipments of 4K UHD displays to
reach 15 million units in 2017 (51 percent increase) and earn $14.6
billion in revenue (38 percent increase). Sales of all TVs are expected
to reach $19 billion in revenue in 2017, on par with last year.

The Changing Landscape for Video and Content report was designed
and formulated by CTA, the most comprehensive source of sales data,
forecasts, consumer research and historical trends for the consumer
technology industry. This research represents the findings of two-part
study. The quantitative survey was administered via Internet web form to
an online national sample of 1,000 U.S. adults, between Oct. 21-28,
2016. The qualitative research study was created using responses from an
online focus group with online consumers, between Oct. 25-27, 2016.

To download or purchase the report, visit CTA.tech/research.

About Consumer Technology Association:

Consumer Technology Association (CTA)^TM is the trade
association representing the $292 billion U.S. consumer technology
industry, which supports more than 15 million U.S. jobs. More than 2,200
companies – 80 percent are small businesses and startups; others are
among the world’s best known brands – enjoy the benefits of CTA
membership including policy advocacy, market research, technical
education, industry promotion, standards development and the fostering
of business and strategic relationships. CTA also owns and produces CES^®
– the world’s gathering place for all who thrive on the business of
consumer technologies. Profits from CES are reinvested into CTA’s
industry services.

Contacts

Consumer Technology Association (CTA)
Danielle Cassagnol,
703-907-5253
dcassagnol@CTA.tech
www.CTA.tech
or
Tyler
Suiters, 703-907-7654
tsuiters@CTA.tech