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Rough Waters? Downstream Effects from the Transition to Streaming Via Smart TVs
David Tice – Consultant, HUB Entertainment Research
Justin Fromm – Head of Insights & Thought Leadership, Samsung Ads
Justin Fromm from Samsung Ads and David Tice of HUB Entertainment Research discussed how consumer behavior is changing due to greater Smart TV penetration and usage. Streaming has become the default method of watching TV for a large swath of viewers. Streaming audiences have also increasingly become more receptive to advertising. Another important trend, Smart TV operating systems (OEMs) are constantly upgraded and made easier to use. As a result, home screen interactions continue to grow. Home screens have played a significant role in content discovery, although TV brand is a moderating factor. Home screens have even helped accelerate the rise of FAST services. In an era of constant churn, coming up in a home screen search and having an advertising model or tier have become critical to retention. Key takeaways:- Two-thirds of people in all TV households use a CTV to stream content.
- Home screen usage is up 140% due to manufacturers consistently improving the user experience and helping viewers find content.
- Nearly two-thirds of Smart TV users spend most of their time with streaming. In 2022, 70% of all viewing minutes were streamed, and 62% of viewers spent more than half of their time with streaming content.
- In Q4 of 2023, 64% of respondents said they would rather watch ads and save money on a subscription, up 7% from Q4 of 2022. Ad tolerance has been stable over the last three years.
- All streaming was up 22% in 2023. AVOD was up 50%, while SVOD use was down 7%. Home screen use was up 117%, and deep link use was up 59% from 2020.
- Content discovery occurs about 50% of the time from the TV’s home screen, and 50% from an app’s home screen. This varied substantially by brand. For instance, only 38% of TCL owners (bottom of the batch) found content from the home screen.
- While most found shows from TV promos (61%) in the last year, 17% of respondents found their favorite new show through their TVs’ home screen.
- Advertising to at-risk audiences on the TVs’ home screen increased retention by a factor of eight.
- In the last two years, FAST services increased 16%, which was 6% faster than the two years prior. The number one reason people used a FAST app was, they found it on their TV’s home screen (36%).