TORONTO – The focal point of CTAM’s annual Broadcaster Forum conference is the consumer trends reveal.
Presided over by Gord Hendren, a principal with Charlton Strategic Research, the CTAM consumer survey illustrated key changes to consumers’ pay TV subscription loyalty and attitudes and their intentions toward new TV service options.
Broadly speaking, the overall marketplace read is that half of Canadians are considered “at risk,” — meaning they are thinking about trimming or cutting their TV services. “But those considering trimming aren’t saying they’re cutting,” Hendren stressed, “only that they’re looking to rearrange their service” often citing price as the issue.
Pay TV through traditional service providers is still the most-used method of video consumption, “but having said that, change is happening and will continue for years to come,” he added.
That’s the case for three reasons: consumers have a desire to save money and not pay for channels they’re not using; they want freedom to choose the channels they want; and they want greater flexibility in their media platform.
While he conceded that this culture of change represents “significant risk for some channels and content providers,” Hendren was careful to add that, “if managed well, we see opportunity.”
“If we really want to win back these people who are non paid-TV subscribers… it’s going to take more aggressive pricing and some freedom to choose.” – Gord Hendren, Charlton Strategic Research
Among other research highlights:
- The number of hours Canadians spend consuming video content (29/week in 2016) is growing, with OTT and streaming claiming the gain.
- The number of Canadians with no paid TV service increased this year over last (17% to 20%). While that’s significant, paid television still has 80% market share. “Any marketer would say, ‘That’s pretty incredible,’” Hendren reminds.
- There’s more focus this year on content and less on channels. The lesson? “The need to brand channels is greater than ever.”
- Streaming increased by 20% in the past year.
- Canadians’ declared consideration of removing channels to save money is up (23% from 20%) as is their conviction that they can find content on line, so don’t need a TV subscription (19% from 16%).
- The profile of non-subscribers skews female (65%), younger than the national average and urban.
- 50% of Canadians are satisfied with their current TV package, 38% are planning to trim, 8% are planning to cut and 5% are planning to increase.
- In 2013, 52% of viewers watched TV live/during the scheduled time; in 2016, that dropped to 42%. When you slice these stats according to age, the emergence of a new style of TV consumption emerges: 18-24 (72%) and 25-39-year-olds (54%) are predominantly using OTT methods.
- 66% of non-TV subscribers will continue with no subscription; 8% subscribe to skinny basic and add channels; 7% subscribe to skinny basic; 19% create their own package. “If we really want to win back these people who are non paid-TV subscribers,” Hendren said, “it’s going to take more aggressive pricing and some freedom to choose.”
- Millennials are more likely than 35+-year-olds not to subscribe to paid TV service (30% versus 16%). However, among millennials who do subscribe, their risk of cutting or trimming is significantly lower (37% versus 48%).
“Overall, we know there are definitely some challenges,” Hendren concluded. “However, we also know that consumer viewing of content remains high and on a long-term growth trend. Paid TV captures a majority of this—we have to keep reminding ourselves of that. Methods of engagement are shifting, and the industry must continue to up its game.”
The full research deck is available to all CTAM Canada members.
Photo courtesy CTAM Canada by Warren Antonio.
