Limelight: Online video gaining on traditional TV

Sept. 25, 2018
According to Limelight Networks' (NASDAQ:LLNW) "State of Online Video" report, consumers worldwide are watching more online video ...

According to Limelight Networks' (NASDAQ:LLNW) "State of Online Video" report, consumers worldwide are watching more online video than ever, increasing 58% since 2016, to an average of 6 hours, 45 minutes each week.

However, the study also indicates that consumers still spend more time watching traditional broadcast, averaging 8 hours, 2 minutes each week. Performance issues with online video, such as live event delays and video rebuffering, continue to turn viewers off, pushing them to rely on traditional broadcast viewing.

Some 60% of global consumers surveyed said they would be more likely to watch live sports online if they were guaranteed not to experience viewing delays. When it comes to online video frustrations, rebuffering is the primary area of contention for viewers, with 66% reporting they will stop watching a video after two rebuffers.

Other findings indicate:

  • Cable subscribers pay for more streaming services than cord-cutters. Some 59% of worldwide consumers subscribe to at least one video on demand (VOD) service. Cable subscribers are supplementing (not replacing) traditional TV with online video, paying for an average of 1.2 streaming services, while non-cable subscribers pay for 0.7 service.
  • Millennials lead the global shift to online video. Respondents age 18-35 currently watch more online video than broadcast. Young millennials (age 18-25) watch an average of 9 hours,13 minutes of online video weekly compared to 6 hours, 11 minutes of traditional TV. 15% of young millennials spend more than 20 hours a week watching online video.
  • Consumers will cancel their service due to price increases. 55% of worldwide consumers say price increases would be the primary reason for canceling an SVOD service. 46% said the same for their cable subscription.
  • Online viewing ranges widely by country. Viewers in the Philippines watch the most online video at 8 hours, 46 minutes each week, followed closely by India and the United States at nearly eight-and-a-half hours of viewing each week. Germany had the lowest online video viewership rate at 5 hours, 2 minutes.

"As consumer adoption of online video has increased, patience for video interruptions is at an all-time low," said Michael Milligan, senior director at Limelight Networks. "Missed moments spoil live online viewing experiences, which means that providers must ensure low latency to lure viewers away from traditional TV."

The State of Online Video report is based on responses from 5,000 consumers in France, Germany, India, Italy, Japan, Philippines, Singapore, South Korea, the United Kingdom, and the United States age 18 and older who watch one hour or more of online video content each week.

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