New TiVo Survey Reveals “Show-Dumping” is the Latest Challenge as Consumers Navigate Content Choices

Audiences are disengaging from even popular programming, with more
than 1 in 3 viewers reporting they have given up on shows because they
became too difficult or costly to watch

AMSTERDAM & SAN CARLOS, Calif.–(BUSINESS WIRE)–TiVo (NASDAQ: TIVO), the global leader in entertainment technology and
audience insights, today released findings from a sponsored survey of
pay TV and over-the-top (OTT) service subscribers in the U.S., Europe
and Asia. The global study is a follow-up to Rovi’s 2015 consumer
survey, delving deeper into how viewers engage with content and explore
the services and devices that make up their entertainment lifestyle.

Above all, this year’s survey revealed that viewers continue to feel
the shockwaves of an industry that is undergoing a significant transition
.
Ensuring predictable ongoing engagement of audiences, once the hallmark
of a successful television series, may be becoming much more challenging.

The survey revealed that while consumers continue to consume significant
hours of entertainment content daily, their viewership is becoming
potentially more transient, with many viewers “show dumping”—giving up
on shows they love because it became too difficult and/or costly to
access them
.

  • 37 percent of global viewers have stopped watching a show they
    previously enjoyed because it became too difficult to access the
    content
  • Shows most cited as ones which respondents had stopped watching are
    ones that generally require a premium pay-TV package, are only
    available through paid OTT and/or are unavailable on OTT services that
    aggregate content
  • On average, respondents spend 4 hours each day watching or
    streaming video content and an additional 19 minutes per day
    searching for something to watch, with the U.S. average eclipsing the
    global average with more than 5 and half hours of viewing time per
    day

Cord shaving continues to be more predominant than cord cutting, with
more consumers considering downgrading pay-TV packages as they are
supplementing their services with subscription OTT and streaming media
devices.

  • On average, 11 percent of all global respondents say they are
    extremely likely to downgrade their service instead of canceling,
    while 8 percent say they are extremely likely to cancel their
    pay-TV service in the next 6 months
  • Not surprisingly, the results in the U.S. were significantly higher
    than the global average. A staggering 21 percent stated they
    are extremely likely to cord shave and downgrade their pay-TV service,
    while only 13 percent are strongly considering cutting the cord
    all together.
  • Multiple points of access for OTT is now the norm with 58 percent of
    respondents reporting they already pay for more than one subscription
    streaming video service and 45 percent reporting that they have
    more than one streaming media device in their home

While Netflix is one of the most popular SVOD services across multiple
regions, the race for leadership in the streaming media device space is
not yet settled.

  • Of the respondents who pay for streaming services, 81 percent in
    the U.S. report having Netflix, with another 69 percent in the
    UK, 64 percent in France and 38 percent in Germany
  • Amazon Prime Video is also faring well globally, with 50 percent
    of respondents in the U.S. subscribed, as well as 49 percent in
    the UK, 61 percent in Germany and 28 percent in Japan
  • Reported ownership for media streaming devices, such as Roku, Amazon
    Fire, Google Chromecast and Apple TV, mostly fall in a tight band with
    similar results of 20-30 percent for each device brand in
    available regions
  • Roku emerged as the device of choice for U.S. cord cutters and cord
    nevers
    , with remarkably higher reported ownership of 38 percent
    versus less than 20 percent reported for each of the
    other streaming media device brands with the same audience

Overwhelmingly, consumers feel there is much room for improvement when
it comes to search and discovery. Millennials, in particular, showing
the strongest desire for better discovery solutions. Since they are the
generation consuming the most content across the most platforms, this
implies that Millennials clearly translate better discovery into a value
proposition which attracts them to the video services they use.

  • More than 47 percent of all respondents agree that for the
    amount they pay for video service(s), it should be easier to find what
    they want to watch
  • 40 percent of viewers turn off the TV and/or device and
    disengage all together when they can’t find something to watch
  • In the U.S., 73 percent of Millennials have streaming devices
    at home and 91 percent are SVOD subscribers, in contrast to 29
    percent
    and 50 percent of Boomers
  • U.S. Millennials also spend more than 6 hours per day watching
    content, with another 32 minutes searching or likely browsing
    for what to watch
  • 53 percent of Millennials say they often expect recommendations
    on what else to watch, in sharp contrast to the 14 percent of
    Boomers and 36 percent of Gen Xers

Indications from the research are that better search and
recommendations can drive increased viewer engagement and viewing time
.

  • Consumers most satisfied with their search function watch almost 7
    hours of content per day, 21 percent more than the U.S. reported
    average of 5.6 hours
  • Consumers most satisfied with their recommendation function watch 7.5
    hours of content per day, a massive 34 percent more than the U.S.
    reported average of 5.6 hours

“Shifts in viewer engagement, like show-dumping, impact the whole value
chain, further challenging business models in a fragmented marketplace
with many different viewing choices,” said Paul Stathacopoulos, vice
president of strategy and strategic research, TiVo. “Unified discovery
and seamless access to content removes some of these barriers for the
consumer, improving engagement and resulting in real business benefits
including higher content consumption, increased subscriber retention and
improved service value, especially for the Millennial generation.”

The research findings were the result of an online survey of 5,500
pay-TV and OTT subscribers across seven countries worldwide with 2,500
interviews completed in the U.S., and 500 interviews completed each in
the U.K., France, Germany, China, Japan, and India. TiVo will showcase
its entertainment technology and audience insights solutions during IBC
this week in Hall 14, Stand G01 and Hall 5, Stand A31.

Download the survey
graphics here
.

About TiVo

TiVo (NASDAQ: TIVO) is the global leader in entertainment technology and
audience insights. From the interactive program guide to the DVR, TiVo
delivers innovative products and licensable technologies that
revolutionize how people find content across a changing media landscape.
TiVo enables the world’s leading media and entertainment providers to
deliver the ultimate entertainment experience. Explore the next
generation of entertainment at tivo.com,
forward.tivo.com
or follow us on Twitter @tivo
or @tivoforbusiness.

Forward-looking Statement

All statements contained herein that are not statements of historical
fact, including statements that use the words “will” or “is expected
to,” or similar words that describe TiVo Corporation’s or its
management’s future plans, objectives or goals, are “forward-looking
statements” and are made pursuant to the Safe-Harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that could cause the actual results of TiVo Corporation to be
materially different from the historical results and/or from any future
results or outcomes expressed or implied by such forward-looking
statements. Such factors are further addressed in Rovi Corporation’s
most recent report on Form 10-Q for the period ended June 30, 2016, TiVo
Inc.’s most recent report on Form 10-Q for the period ended July 31,
2016, and such other documents as are filed with the Securities and
Exchange Commission from time to time (available at www.sec.gov).
TiVo Corporation assumes no obligation to update any forward-looking
statements in order to reflect events or circumstances that may arise
after the date of this release, except as required by law.

Contacts

Finn Partners
Ricca Silverio, +1-949-439-7869
tivo@finnpartners.com