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Consumers back Google, Apple and Samsung to lead the next wave of TV broadcasting

Consumers back Google, Apple and Samsung to lead the next wave of TV broadcasting

The race is on to create the "Spotify for video", an Accenture consumer survey reveals

The race is on to create the "Spotify for video" as almost half of consumers globally watch movies and TV shows online on a daily basis.

The Accenture consumer survey said the demand for more devices and more online content, as well as consumers’ willingness to pay for better access to content, was reshaping the media and entertainment landscape.

The fourth annual multi-national Accenture Digital Consumer Survey for communications, media and technology companies, found significant daily consumption of online content across a number of different devices and video screens.

The survey was conducted online between October and December, 2013, with 23,000 consumers in 23 countries: Australia, Brazil, Canada, China, Czech Republic, France, Germany, India, Indonesia, Italy, Japan, Mexico, Netherlands, Russia, Saudi Arabia, South Africa, South Korea, Spain, Sweden, Turkey, United Arab Emirates, the United Kingdom, and the United States.

The sample in each country is representative of the online population, with respondents ranging in age from 14 to 55 and over. The survey found that 25 per cent of respondents indicated they intend to purchase a connected TV in the next 12 months.

Another 11 per cent intend to replace an existing connected television, while 12 per cent plan to purchase a tablet, expanding the market of addressable screens even further. Accenture global broadcast industry lead, Gavin Mann, said, if consumers acted on these intentions, it would represent remarkable growth in the market for online video.

“This rapid digital expansion is fostering a new era of personalized TV experiences with the number of video-centric connected devices predicted to surpass the world’s population by 2017.” The survey also found that close to half (44 per cent) of all respondents are viewing full-length movies and TV shows over the Internet on a daily basis, and 39 per cent do so weekly.

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This demand was not hindered by the fact that 86 per cent reported streaming interruptions and 71 per cent noted considerable slowdowns in the viewing experience. Some 60 per cent of respondents streaming video at home indicated they were willing to pay for a faster connection, while just as many (62 per cent) said they would pay extra for better quality so they could view videos whenever and wherever they like. Mann said consumers were viewing so much online video content that they were willing to pay for faster connections.

When asked to express their preference for a non-traditional broadcaster to provide them access to video, respondents selected Google, Apple and Samsung, in that order.

The selections were based on the companies’ potential to deliver Pay TV, video on-demand and catch-up TV, which is not the current core capabilities of these companies. Mann said it was no coincidence that the three most popular brands also have the largest market share of phones and tablets.

"Consumers clearly value content seamlessly bundled with devices – the reason Amazon dominates the eBook market with Kindle – it provides the best end-to-end experience. It will be interesting to see if Amazon climbs up the list when they launch a TV product,” he said. “These disruptors are clearly bringing a lot of new technology to our century-old television viewing experience.

"Today’s incumbents have a great opportunity if they can innovate, while successfully leveraging their core strengths.

"Tomorrow’s high performers – will be those that combine art and technology.”

Despite more than half (55 per cent) of respondents expressing concerns about data security, two-thirds (67 per cent) are willing to provide additional personal data if service providers will offer additional services or discounts.

Of course, these offers need to comply with local data protection laws. Having grown-up with computers, the Millennials appear to be the generation that is most comfortable sharing their personal information, with Generation X and Baby Boomers significantly less trusting.

While consumers are viewing digital content across more mobile screens than ever before, it remains anchored in the home.

According to the report, the overwhelming majority (more than 90 per cent) of all digital consumption still occurs in the home via a fixed line.

Mann said there was a significant opportunity for providers that can offer a truly mobile video experience regardless of location.

"The race is on to create the compelling mobile user experience, ‘the Spotify for Video’ – which, combined with increased 4G network coverage, could create the next tipping point,” he said.

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