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Video on Demand

1 minute read | March 2016

How Worldwide Video Viewing Habits are Evolving Amid an Evolving Media Landscape

Not long ago, “watching TV” meant sitting in front of the screen in your living room, waiting for a favorite program to come on at a set time. Today, the growth of video-on-demand (VOD) programming options where viewers can download or stream content from either a traditional TV package or an online source is creating extensive opportunities for consumers who have greater control than ever before over what they watch, when they watch and how they watch. And the number of self-reported VOD viewers is significant. Nearly two-thirds of global respondents (65%) in a Nielsen online survey in 61 countries say they watch some form of VOD programming, which includes long- and short-form content.

Viewing habits are not the only things changing. Traditional advertising models are changing as innovative technologies such as programmatic and addressable ads allow advertisers to reach consumers in new and creative ways. Many traditional TV providers, including networks and multichannel video-programming distributors (MVPDs), are re-evaluating their business models in order to adapt better to consumers’ evolving habits. While it’s clear that business-as-usual methods won’t work in a landscape that is changing so rapidly, the field is wide open, as all players are looking to expand share.

Full Stream Ahead?

Globally, 31% each of Generation Z (ages 15–20) and Millennial (ages 21–34) respondents say they pay an online-service provider for content, compared with 24% of Generation X (ages 35–49), 15% of Baby Boomer (ages 50–64) and 6% of Silent Generation (ages 65+) respondents. And roughly four-in-10 Gen Z (40%) and Millennial (38%) respondents who subscribe to cable or satellite say they have plans to cancel their service in favor of an online-only option—a rate that is nearly three times higher than for Baby Boomers (15%) and four times higher than for Silent Gen respondents (9%).

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