The shift from traditional broadcast television to online video is being driven by millennials, the majority of who watch between four to seven hours of internet video each week, according to new global research from content delivery network Limelight Networks.
Millennials represent a benchmark, or “tipping point,” below which all subsequent generations will skew increasingly toward online video, the report stated. The willingness to abandon traditional television, however, is also reflected across all age groups – only 10% of those surveyed said they would never cut the cord.
“The State of Online Video”, released today, concludes that an increasingly “tenuous” connection between cable companies and their subscribers is contributing to the popularity of online video.
The information was gathered over five days by surveying more than 1,200 participants from Canada (201), Australia (200), the U.S. (407) and U.K. (413), all of who watched more than one hour of online video a week.
When asked what would cause them to their cancel cable or pay TV subscriptions, 38% of 18-plus year-old respondents cited price increases. Other reasons for cancellation include: when people can subscribe directly to channels they want online (16%) and when sports and live events become available online (8%).
More so than in the U.K., U.S. and Australia, these types of results have a pressing implication in Canada, which has long had high rates of online video consumption.
In the survey, Canada posted the highest percentage of people watching four to seven hours of online video per week (23.9%) and seven to 10 hours (14.4%).
According to numbers from the Television Bureau of Canada (TVB), consumers between the age of 18 and 34 here watched an average of 19.8 hours of television a week each, for the three months ending in March.
Elsewhere, results showed that consumers are generally fine with online video ads, as long as they can be skipped or are sufficiently targeted. When asked a variety of questions about online video advertising, 60% of consumers admitted to finding it disruptive, however 71% said this wasn’t a problem provided the ads were skippable. In a separate question, 42% said they were fine with online video ads that were properly targeted.
The study highlighted Business Insider global research figures, which suggest online video ad revenue will increase from $2.8 billion in 2013 to $5 billion in 2016, while revenue from television ads will dip 3% over the same three year spell.
PCs and laptops are still where the majority of online video is consumed, the study’s results also revealed – but only barely. With the increase in smartphone usage, the study’s authors predict that the handheld devices will overtake traditional computers as the primary platform for consuming online video in the next five to 10 years.
