Research |
Buffering risks streaming churn
Research from streaming
infrastructure provider Bitmovin
has found that poor video quality
and buffering issues could cost
video streamers as much as £ 45
million (€ 51.9m ) per month .
More than one in three Brits
( 38 %) claim to have unsubscribed
from a streaming service due to
buffering issues .
With the ongoing cost of
living crisis in the UK and the
ongoing streaming battle for
subscribers , the research findings
demonstrate to video streamers
that poor video quality and
buffering are potentially dealbreaking
issues for consumers .
The research also found that
nearly a quarter of Brits ( 23 %)
would drop a streaming service
with poor video quality .
It takes at least 13.4 seconds
of buffering on average
before consumers consider
unsubscribing from any video
entertainment provider . However ,
not all content is created equal
when it comes to buffering :
respondents are more tolerant
of buffering when it comes
to eLearning content , only
considering unsubscribing
after 15.5 seconds of buffering .
Fitness and free streaming
platforms such as YouTube
came second with 14.3 seconds ,
and consumers considered
unsubscribing from paid-for
streaming services after 13.3
seconds .
Male respondents were also
found to be more impatient
than female respondents . For
paid streaming services , male
respondents would only tolerate
12 seconds of buffering before
considering unsubscribing ,
whereas females would tolerate
14 seconds .
With Netflix now offering
an ad-supported , lower-cost
subscription model , and Disney +
launching its own ad-supported
tier , the research had some
additional insights into consumer
sentiment around ad-supported
video streaming subscriptions .
Interestingly , when it comes to
a paid subscription model , the
majority ( 58 %, rising to 67 % in
those aged 18-35 ) are happy to
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pay that little bit extra for an adfree
experience .
Most viewers ( 60 %) are happy
to tolerate ads when it comes
to free streaming services .
However , it seems if paying for a
subscription , no matter the cost ,
they would like ad-free content .
“ We are in an era of
technology-driven experiences ,
and so , within this tech-savvy
generation , streamers need to go
above and beyond just offering
entertaining content ,” advises
Stefan Lederer , CEO , and founder
at Bitmovin . “ The consumer ,
especially when paying for these
services , also wants a seamless
and enjoyable experience .
Streamers need to realise that it ’ s
not just great content that will
help them win out but also topnotch
delivery of its content .”
The research also found
that almost one in four ( 19 %)
Brits valued the ability to use
a streaming service across all
devices as one of the top three
reasons to keep a subscription .
Interestingly , mobile phones are
the second most popular choice
for viewing streamed content
( 26 %), behind Connected TVs
( 48 %) – and much higher than
tablets ( 10 %) and laptops ( 8 %).
80 % UK fans prefer sports streaming
Eighty per cent of UK sports
fans now want to watch sport
exclusively on streaming
platforms , as pay-TV customers
continue to decline in the UK ,
according to the 2022 UK Sports
Video Trends report from cloud
video platform Grabyo .
Pay-TV subscriptions have
been high among sports fans in
the UK , with pay-TV providers
having exclusive access to the
premium sporting competitions
on these platforms .
Grabyo ’ s report finds that
fans are either opting to cancel
their TV subscriptions , or
choosing to pay for streaming
access to sports events , often
on companion apps provided by
broadcasters , rather than a full
pay-TV package .
Grabyo has tracked a
continued increase in the use
of streaming-enabled devices
to watch sport , including
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smartphones , Smart TVs and
laptops , while the use of set-topboxes
has dropped to one-third
of UK fans .
While online streaming
services remain the most popular
for video consumption among
sports fans , social media is now
as popular as pay-TV for sports
video content .
The report suggests the
major social platforms are used
regularly by more than 25 % of
fans to watch sports content , with
most fans watching sports videos
on at least three different social
accounts every month . TikTok
is the fastest growing social
platform in 2022 , with a 42 %
increase in users among UK fans
in the past 12 months .
The report also found that
the popularity of sport for
women in the UK has increased
dramatically , with a 65 % increase
in female sports fans from 2021 .
“ Since 2019 we have been
closely tracking how sports fans
want to consume video , and this
year ’ s findings suggest we ’ re
nearing a tipping point ,” notes
Gareth Capon , Grabyo , CEO .
“ Sports viewership may begin
to fall back unless more flexible
streaming options become
available . Many broadcasters are
acutely aware of this trend , but
our findings paint a clear picture
of what sports fans want from
rights holders and broadcasters .
With social media and streaming
becoming the preferred options
for video viewing , linear
broadcast audiences will continue
to fall .”
UK primed for SAVoD
November 3rd marked Netflix ’ s
official launch of its ad-supported
tier , notes research and strategy
consultancy MTM . The platform
joins other Subscription &
Advertising Based VoD ( SAVoD )
platforms such as Discovery + and
NOW in the UK who offer tiered
propositions , which includes a
cheaper ad-inclusive tier . Disney +
also announced it would be
replacing its basic package with
an ad-supported tier , meaning
existing customers will be
required to pay more to access
ad-free content .
Both platforms hope to
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increase subscriptions by enticing new audiences , whilst retaining subscribers who are concerned about spending during the ongoing cost of living crisis . Netflix ’ s current Basic package costs £ 6.99 (€ 8.03 ) per month , but its new Basic With Ads package will be discounted at £ 4.99 . Disney +, although yet to confirm its tiered pricing options , has however confirmed it will be increasing prices for existing customers in order to avoid ads instead of offering cheaper ad-supported tiers that offer an alternative . The benefits of SAVoD for both these platforms will rely on the balance between revenue growth from advertising against a potential slowed growth in subscribers .
With all of this in mind , MTM has been exploring how it feels UK viewers will respond to these SAVoD launches .
The UK is already a wellestablished advertising market for video on demand providers , with higher levels of AVoD viewing compared to the rest of Europe and the US . Audiences in the UK are familiar with the SAVoD proposition , driven by interactions with commercial broadcasters ’ streaming platforms , including ITV , Channel 4 , Channel 5 and UKTV .
MTM ’ s projections expect that long-form AVoD viewing will grow by 7 % yearly before even accounting for the impact of Netflix and Disney + entering the SAVoD market . MTM ’ s forecast also suggests Netflix and Disney + will take a large share of total AVoD streams over the next five years . With AVoD itself driving the biggest increase in overall ad spend online – growing by more than £ 1 billion in the past year , the SAVoD market potential should not go unnoticed .
Within a recent MTM study , it asked how willing people would be to either switch or take-up Netflix ’ s ad-supported package . This suggested that there is a lot of interest in this offer , with 49 % of current subscribers claiming they would consider moving down to their cheaper SAVoD plan , and 28 % of Netflix nonsubscribers claiming they would
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