There is no question that we’re changing our viewing habits. According to Ericsson’s TV and Media 2015 report, the percentage of people watching streaming on-demand video services is about to surpass scheduled linear TV. In other words we’re about to cross a major milestone when more people stream videos, TV shows and movies from services like Netflix, Hulu, Amazon Prime than watch traditional television. The continued growth of YouTube also factors strongly into the growth of streaming on-demand video.
As you can see the percentage of people watching streamed on-demand video surpassed 50% for the first time in 2015. The number has been steadily increasing from 30% since 2010. The same can not be said for scheduled linear TV which has been steadily losing ground during the same period. The numbers give more insight into why so many media companies are partnering with popular streaming services and launching their own. The writing is on the wall. Streaming is hitting the mainstream and will soon surpass traditional TV.
The numbers get even more interesting when you look at the share of total TV time by age group, measured by the device type. As you can see there is a large gap between the percentage of young people (age 16-19) watching content on smartphone, tablet, and laptop, versus the percentage of those age 35 and above. The numbers are most glaring when you look at the percentage of smartphone viewing between the different age groups. It is clear that the younger generation is very comfortable watching content on their smartphones.
Ericsson’s report breaks the numbers down further and shares that smartphones and tablets are used equally to watch short content. However, tablets are preferred for longer videos. Netflix users watch on tablet more than twice the number of hours they view on smartphone. Millennials, those age 16-34, watch over half their videos on smartphone, laptop, and tablet. They watch three hours more content a week on smartphone than they did in 2012, an increase of 71 percent.
One reason people are turning to streaming services like Netflix is the availability of on-demand content. The TV and Media 2015 report found that half the people watching linear TV say they have trouble finding something to watch on a daily basis. That number increases to 62% for those age 25-34. Another reason for the increase in streaming is binge viewing. Streaming services like Netflix have spoiled us. It’s hard to beat the ability to watch multiple episodes of a TV series without delay and without the annoying commercial breaks.
It’s clear is that streaming is here to stay. That doesn’t mean traditional TV is going away. There are still plenty of reasons to watch linear TV. As the NFL season is about to get underway sports fans will be gathering around the TV to watch their favorite teams. The same is true for college football, basketball, and other sports. There are still areas that TV networks do better than streaming services but the day is quickly coming when on-demand streaming will surpass traditional TV viewing.
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