The choice is theirs

For 57% of Europeans, watching video material is amongst one of their top three hobbies, along with accessing the internet and carrying out home tasks. This is true across all ten EU markets analysed in our “New life of the living room” research published earlier this year.

According to OMDIA, in 2022, average Total Video daily viewing time in the main European markets and the US was 6h13 per person per day. Excluding social media video viewing, it was 5h05. Not surprisingly, the figures were slightly higher during Covid-19. But if we compare the pre-Covid year 2019 to the post-Covid year 2022, we can see that the discrepancy between overall viewing time (excluding social) was just one minute less in 2022 compared with 2019 (5h06).[1]

Linear TV continues to dominate overall watching time in all major European markets and the US. Worldwide, people watch 2h25 of linear TV every day (Europe 3h22, South America 3h38, Africa 3h26, Middle East 3h27, Asia 2h01 and Oceania 1h46).[2]

Taking a closer look at Europe, the share of linear is still huge as demonstrated in Germany (68%), France (71%), Spain (73%) and Italy (80%). However, people watch less linear TV than in the past. But even in Germany (with a decrease of about 19 minutes per day), the average time spent watching linear is still about three hours a day (similar to France and Spain). Italians watch almost four hours of linear TV every day, one reason is their enthusiasm for live-sport events broadcasting.[3]

In those European countries where linear viewing time is often lower (the average linear watching time in the UK and the Netherlands, for example, is roughly two hours),1 it is apparent that more and more consumers choose to watch what linear delivers, but they stream it when it suits their schedule.

In the UK, for example, live linear content accounts for 48% of total viewing time. When time-shifted PVR viewing is added, linear TV’s aggregate viewing share rises to 57.6%. In the US, in 2022 linear viewing stood at less than 45%, although linear programming still leads with viewing time at 54.5% when time-shift viewing is taken into account, demonstrating that conventional TV remains by far the most popular medium.[4]

Total Video consumption continues to undergo significant change primarily driven by shifts in consumer behaviour, the growth of digital platforms and advancements in technology. Viewers now have more choices, more flexibility and more control over what, when and how they watch video content. How has video consumption evolved across audiences worldwide? We take a look at current video viewing statistics and consumption habits, and by zooming into the world of younger adults and kids, we attempt to predict the near future for broadcasters and advertisers.

OMDIA reveals that viewers across all markets spend about 75 minutes on “online long form” (covering VOD and the like). About 32 minutes is spent on “online short form” (including YouTube content up to 15 minutes but excluding social media) and another 68 minutes on other social media video platforms.

In the US, Netflix remains the most popular service. However, in 2022, it lost audience share due to tough competition.[5] In Europe, SVOD seems to have reached a plateau. BVOD is where growth lies in Europe and our local partners are investing heavily in those platforms to offer exclusive high quality local content.[6] Weekly penetration of non-broadcast AVOD in Europe is still much lower than in the US (20%4 vs 51%[7]).

Future growth in the streaming market may come from Free Ad-Supported Television (FAST) channels in the US and in Europe. One of the benefits for viewers is the simplicity of FAST. Instead of having to look through the vast catalogues of content available on VOD platforms, with FAST, viewers can simply choose a channel with a specific type of content they feel like watching – often classic shows.[8]

Strong content is what drives audiences to platforms, so broadcasters and streamers are investing heavily in studios and offering exclusive productions as well as investing in local content and global success stories.

Live TV offers the widest range of genres with people watching films (57%), news, magazine programmes and current affairs (55%), series (52%), documentaries (42%), sport (41%), entertainment shows (39%) and animation and kids’ programming (14%)[9]. During times of political instability, people tend to watch more news as TV, in general, is a trusted source. At the same time, major events broadcast live, such as the Eurovision Song Contest, or a sporting event, such as the FIFA World Cup, lead to increased linear viewing time.

VOD platforms compete foremost with series and movies. SVOD services understand the need for local content and have invested heavily in studios and local productions. At the same time, US drama series such as Stranger Things and Grey’s Anatomy continue to attract audiences worldwide. On video-sharing services such as YouTube, entertainment shows and documentaries are the most popular categories.[10]

The big screen in the living room remains centre stage for family entertainment. Over two thirds of Europeans watch video on the big screen every day. Most European living rooms have Smart TVs (73%) and the product in use is fairly new.[11]

Among 18 to 34-year-olds – a group which is generally associated with looking at their mobile phones rather than sitting in front of a big screen – 63% say that they have bought a smart TV set in the past two years. 74% of them stated: “The living room looks empty without a TV.”[12]

So, if a TV set still is a must for most Europeans, do they actually watch the big screen on a daily basis? Yes, 77% watch video content on the big screen every day or almost every day. Nevertheless, other devices, especially smartphones, come in at a close second at 69%.[13]

What and how people watch, is also influenced by the individual’s and local technical set-up. A robust broadband infrastructure and a high penetration of smartphones, tablets, and CTVs, as in the Netherlands, assists online viewing in general. While in Italy, lower broadband standards mean that more people use their mobile phones to watch video content, which results in them watching shorter video content.[14]

The growth in streaming is not only based on the growing number of kids and young adults streaming content. As VOD services mature, so do their audiences. Public broadcasters and commercial TV providers are stepping up in terms of programme expansion (exclusive content) to cater for the 50 plus market.[15]

While linear TV is still dominant, amongst younger audiences it is falling out of favour as streaming via various platforms takes the lead, be it BVOD, SVOD or YouTube. Europe’s young adults rank live TV (59%) lower than SVOD services (75%) and video-sharing sites such as YouTube (62%). These are also the platforms on which they frequently watch content with others: 80% indicate co-viewing on SVOD platforms and 56% report co-viewing on video sharing sites, both of which are higher than the European average (18 to 34 year-olds).[16]

Recent research (UK study:[17] 18 to 40-year-olds, German study:[18] 16 to 39-year-olds) depicts a complex media environment. This age group relies on videos for escape and connection and often prefers VOD platforms for individualised content experiences as they multitask and engage in other activities while watching television.

In search of relevance and authenticity, this age group looks for a variety of shows and platforms that connect with their quest for a sense of self-preservation and well-being. Using BVOD and high quality (exclusive) content, broadcasters can still appeal to this group, if they meet their specific needs.

For the youngest target group, an abundance of content is the new normal. However, while kids are young, their parents influence their choices and those parents generally accept that broadcasters’ curated content is the most suitable.

According to the German study Kinderwelten[19], 96% of all kids (3 to 13-year-olds) watched linear TV in 2022, and curated children’s programmes such as TOGGO or KIKA are especially popular. It is these two programmes that adults co-view with their children (2.5 million parents reached every month). Watching TV together is perceived as a family event.

M6 Publicité’s cross-country study “Les Tendances Kids 2022”[20] which looks at France, Germany, the UK, Spain, the US and Japan, reveals that the duration of Live TV and Replay (BVOD) accounts for at least two thirds of the childrens’ video consumption in all countries. VOD viewing accelerated during Covid, a time when kids (and parents) stayed at home and the use of electronic devices increased. However, it appears that the SVOD audience share reached a plateau among the youngest audience.

The older kids become, the more their parents trust them to choose their own content on various platforms. The earlier kids get their first mobile phone, the earlier they have the option to choose their own content, leading to more non-linear content (including YouTube and social media) and gaming takes up more of their time.

In summary, the following factors are key to capturing volatile video audiences in the future: Investing in qualitative content both at a local and global level to recruit viewers; retaining audiences by improving content discoverability and by making that content shareable, including personalised suggestions for what to watch next; and finally, optimising the user experience by providing content seamlessly across platforms and devices.

[1] https://omdia.tech.informa.com/OM032131/Cross-Platform-Television-Viewing- Time-Report–2023.

[2] Glance, January-December 2022/relevant partner – reproduction forbidden, all rights reserved by Médiamétrie.

[3] https://omdia.tech.informa.com/OM032131/Cross-Platform-Television-Viewing- Time-Report–2023.

[4] https://omdia.tech.informa.com/OM032131/Cross-Platform-Television-Viewing- Time-Report–2023.

[5] https://www.bbc.com/news/business-62226912.

[6] RTL AdAlliance, “The new life of the living room” (2023).

[7] RTL AdAlliance, “The new life of the living room” (2022).

[8] https://www.nielsen.com/insights/2023/linear-tvs-comeback-the-arrival-of-fast/.

[9] RTL AdAlliance, “The new life of the living room” (2023).

[10] RTL AdAlliance, “The new life of the living room” (2023).

[11] RTL AdAlliance, “The new life of the living room” (2023).

[12] RTL AdAlliance, “The new life of the living room” (2023).

[13] RTL AdAlliance, “The new life of the living room” (2023).

[14] https://omdia.tech.informa.com/OM032131/Cross-Platform-Television-Viewing- Time-Report–2023.

[15] https://tvamediagroup.com/americans-age-50-and-up-are-powering-streaming- growth/.

[16] RTL AdAlliance, “The new life of the living room” (2023).

[17] https://www.itvmedia.co.uk/research/what-unites-young-adults.

[18] https://www.ad-alliance.de/studiensteckbrief/page5483/.

[19] Insights & Analytics Kids RTL Data / Kinderwelten 2023  https://www.ad-alliance.de/ cms/news/forschung/forschung-kinderzielgruppe/kinderwelten-2023-event.html.

[20] https://m6pub.fr/m6-publicite-gulli-tendances-kids-2022