DVR, VOD changes TV viewing

Recent consumer research from Leichtman Research Group (LRG) shows that more than half of homes getting their TV from a multichannel video programming delivery service (i.e., cable, DBS, telco cable) have and use DVRs to record and watch TV programming, while only 4% of households without MVPDS (that is, rely on over-the-air broadcast stations and/or internet streaming for their TV programming).  Since about 90% of homes get MVPDS programming on at least one TV, that's a lot of U.S. TV households with DVR capability.  And 43% of DVR homes have DVR access to two or more TV sets in their home.
  In addition, the survey found that 70% of cable digital subscribers have used its VOD (video on demand) service to watch TV programs (compared to 58% in 2007 and 25% in 2004).  In addition, more than half (51%) of the MVPDS subscribers also subscribe to Netflix, the top on-demand Internet video streaming service.

  So now that DVRs, VOD, and on-demand Internet video streamers and other technologies that shift control over viewing time and conditions to audiences are fairly widespread, how do consumers like and use them?  What do consumers think about having the power to watch TV programs when and where they want?  LRG surveyed some 1300 U.S. households, and the LRG report concluded that:

“... the percentage of all TV households in the US with a DVR has... doubled over the past five years, and... expanding to more TV sets in the home... consumers are increasingly integrating DVR, VOD and On-Demand TV viewing into their TV viewing patterns... ”

More specifically,

• People really like having DVRs, with an overwhelming majority giving the service strongly positive ratings (8-10 ratings where 10 is excellent).  In addition, people prefer (give higher positive ratings) when they have DVR access on multiple TV sets (81% top ratings) than when they have DVR access from only one TV (71%).
• More than half of digital cable (59%) and Telco video (64%) subscribers have used their VOD service within the last month.
• More than a quarter (26%) of Netflix subscribers watch "Instantly" on a daily basis, and more than half (59 watch a movie or TV program "Instantly" at least weekly.
• More than two-thirds of VOD users strongly agree with the idea that having both VOD and DVR makes their TV service better.
• 79% of Netflix "Watch Instantly" users watch movies and TV programs on a TV set (as opposed to a computer screen or mobile device).

These reported results certainly suggest that most viewers like having more control over their TV viewing in the form of DVRs, VOD, and Internet video streaming services - and that having those tools helps to improve their perception of the value of their TV delivery service.  What's in the press report doesn't really get too much into changing behaviors, but a spate of current research is clearly establishing and increase in time-shifting viewing - enough to start a debate about what that means for TV advertising, and how to best measure and incorporate that viewing into ratings.


Source  -  The DVR Impacting TV Viewing and Satisfaction,  Research Brief

Update on Time-Shifting's Impact

A while ago I noted that a lot of this Fall seasons premieres benefited heavily from time-shifted viewing.  More recent ratings numbers suggest that the impact is not limited to sampling new series.  Many of the most popular TV series are continuing to see 40-50% of their audiences time-shifting.  Looking at the Nielsen L7 (live viewing plus time-shifted viewing within a week) ratings for the key 18-49 demographic.

Thus far in 2012, the top 10 broadcast shows have been getting 45.6% of its total audience (looking at its live premiere episode broadcast and seven days that followed) from time-shifted viewing. This compares to 41.6% in 2011.

  Shows pulling more than half their viewing from time-shifting include Big Bang Theory, Modern Family, Revolution, and New Girl (tops with 59% time-shifted). The rest of the top 10 series had time-shifting of 40% or higher, with the exception of Elementary (which narrowly missed at 39%).  Analysts note that the median age of viewers drops when time-shifting viewing is included, suggesting that younger folks make heavier use of their DVRs.  Penetration of DVR devices/services in US TVHHs continues to expand, passing 45% this summer, but cannot account for all of the increase in time-shifting on its own.  TV viewing habits seem to be changing, particularly among younger viewers.

Source -  More Broadcast Hits Seen Through Time-Shifting, Media Daily News