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Streaming is a supplement, not a replacement for traditional TV say consumers

Consumer choice is driven by performance and pricing issues

A new report from Limelight Networks says consumers place more emphasis on pricing and quality when picking a video provider.

According to the company’s State of Online Video report, consumers are supplementing their traditional pay-TV subscription with streaming services not replacing them. 

Limelight said that while online video consumption is growing – consumers watch an average of 6 hours 45 minutes online every week, an increase of one hour per week over last year, 62 per cent of respondents worldwide pay for more video services in addition to their pay-TV subscription, and said the top two devices for watching online video are smart TVs (31 per cent) and set-top boxes/DVRs (18 per cent).

More than half of respondents to the survey (55 per cent) said that price increases would be the primary reason to cancel an SVoD service and nearly half (46 per cent) said the same for their cable subscription. 

Quality of service also was a top priority – 43 per cent said rebuffering was their primary frustration, with 66 per cent reporting they stop watching a video after two rebuffers and 60 per cent claiming they would be more likely to watch a live sporting event online if it was guaranteed there would be no viewing delays.

Globally, people watch films online the most, followed closely by TV shows and news. Young millennials (18-25) watch professionally-produced video and user-generated content on social media more than they watch the news and sports online.

Limelight’s survey was conducted globally with 5,000 responses from consumers in France, Germany, India, Italy, Japan, Philippines, Singapore, South Korea, the UK, and the US during the first two weeks of August.