If you don’t think Roku, Apple TV and Chromecast are making an impact on the delivery of broadcast or cable television programming, Pivotal Research Group analyst Brian Weiser will change your mind on just how integral OTT delivery is today.
Weiser analyzed trends associated with the use of television alongside commercial share trends for national media owners for the calendar month of July 2016.
His conclusions: Total TV use, across all sources of content inputs, increased by 1% for adults in the prized 18-49 age demographic during the month. This was supported “significantly” by content access via internet-connected devices, through platforms such as the aforementioned Roku, Apple TV, and Google Chromecast.
Perhaps more dramatic is the conclusion that viewing via internet-connected devices increased by 65% among adults 18-49 in July 2016, compared to July 2015.
Internet-connected devices now account for 8.5% of total TV use among adults 18-49 on a total-day basis.
“Growth in use of TV involving internet-connected devices was rapid, and represented an acceleration in growth of consumption,” Weiser writes. “For the month, households increased this kind of TV viewing by 79.2% … This gain was approximately equal to the loss in viewing share that can be attributed to ad-supported cable and English-language broadcast networks.”
The research led Weiser to explain why inclusion of OTT delivery vehicles is essential for the overall health of broadcast and cable television.
“Total use of TV is important to monitor, as it provides investors with a relative sense of the health of the medium,” Weiser said. “While this data is incomplete in the sense that it excludes viewing of content on non-TV-based devices, going beyond network-level ratings and looking at aggregated sources of viewing helps to better analyze the relative importance of the medium to consumers. Commercial share data is important to monitor as networks with more available inventory to sell should generally capture a greater share of advertising budgets.”