Consumers prefer watching traditional TV series and films from streaming services on the biggest TV in their homes, and are more accustom to watching short-form content on smaller screens like phones and tablets, according to a new report released by Deloitte on Wednesday.
The survey, revealed in Deloitte’s 19th annual “Media Trends Report,” found 66 percent of streamers prefer watching traditional TV shows and movies on their smart TVs, while only 12 percent said the same for phones and tablets.
The number is slightly lipped or short-form videos, like those found on TikTok, with 3 percent saying they prefer watching shorter videos on their smart TVs and 43 percent saying the same for phones and tablets. Long-form video content was more of a mixed bag, though most consumers — 48 percent — said they preferred watching on phones and tablets, compared to 17 percent who said the same for smart TVs.
The trends come as more consumers are shifting away from traditional forms of television offered through cable and satellite plans, in favor of streaming apps that allow them to watch channels, shows and movies across different devices. Deloitte offers that consumer preferences “can further fragment the landscape of entertainment and make it more challenging for services and brands to reach audiences, and for providers to gather more people onto their services,” given that consumers seem to use different devices to watch different types of content.
Streaming also comes at a cheaper cost: The average streamer reports spending $69 per month on their services, according to Deloitte, while the typical cable or satellite subscriber pays $125 for their entertainment needs. The number of consumers who affirmed having a cable or satellite subscription today is 49 percent, down from 63 percent who said the same three years ago.
The biggest reason why people are still holding onto their expensive traditional pay TV subscription is to watch sports and news, Deloitte said. But that is likely to change in the coming years — and, in fact, it is already starting to change — as network-owned streaming video services incorporate more live sports rights into their products.
Paramount Plus, Comcast-owned Peacock and Warner Bros Discovery’s (WBD) Max all offer live simulcasts of sports programming airing on their co-owned broadcast and cable networks. The Walt Disney Company simulcasts some of its ABC and ESPN sports programming on ESPN Plus and Hulu, the latter of which is now fully integrated into Disney Plus as well. Amazon’s Prime Video and Google-owned YouTube have also pursued live sports rights for their platforms, some of which are not offered on broadcast or cable TV, beyond a few exceptions.
For streamers who want a one-size-fits-all solution, streaming cable-like alternatives are an attractive option, as they offer the flexibility to watch live channels across devices, and typically cost less than the average cable or satellite bill. But they also cost more than the conventional subscription video on-demand (SVOD) service, Deloitte said, and rather than marketing to younger consumers who want flexible programming options, many of those services are targeting cable and satellite subscribers who are already used to shelling out significant amounts of cash for news, sports and entertainment.
