A new report from PWC looking at the fragmentation within consumer video viewing has identified five specific segments.
PwC said each segment spends between $18 billion and $24 billion on video. Ranked from biggest spenders on video to the smallest spenders, they are called Indulgists, Traditionalists, Engagers, Fanatics and Connoisseurs. Engagers and Connoisseurs have the highest annual household incomes.
Each group has its own set of preferences. For example, the Indulgists want the latest gadgets and premium content and are willing to pay for it.
Engagers are more likely to be gamers than satisfied by sitting back and being entertained. They look ahead to virtual reality experiences and like to post on social media about shows they watch.
Fanatics demand access to big libraries of content wherever and whenever they want it. They are more likely to be cord-cutters while subscribing to several streaming services at one time. They binge watch but hope someday they can get all their content in one place.
Connoisseurs are picky about what they watch and want to see more educational and diverse content.
Traditionalists spend the most on video content and want predictability, ease and comfort while watching. While this group is least likely to access video content online, PwC expects it to shrink over time as content online and on app becomes more common.
For video providers to remain relevant, PwC offers eight recommendations:
- Know your audience and target intentionally
- Personalise and target content for each segment
- Don’t let search be a liability
- Deploy AI to improve recommendations
- Encourage second-screen engagement
- Reinvent storytelling with branded content
- Go global and offer more foreign language programming
- Develop immersive experiences