Accenture : Video-over-internet consumer usage survey 2011

Consumers of all ages are
going over-the-top
Results of the 2011 Accenture Video-Over-Internet
Consumer Usage Survey

The era of Internet video is here, and Although considerable challenges lie communications companies—to have
it’s influencing the viewing behaviors ahead for broadcasters, telcos and a better understanding of changing
of more than just younger generations. other companies looking to position consumer behaviors and interests, so they
According to new research from themselves optimally within the can direct their investments properly.
Accenture—the 2011 Video-Over- Internet video ecosystem, it’s clear
Internet Consumer Usage Survey—more that consumers are ready—and in some To give companies deeper insights into
than three-quarters of consumers of all instances may even be ahead of the their target customers as they launch
ages in major geographies around the companies—in terms of their vision or extend broadband TV and video
world are now watching video content for how, when and where they watch capabilities, Accenture has conducted
over the Internet via a PC or TV—also and interact with video content in the a global survey of more than 6,500
called “over-the-top TV” (see Figure 1). digital age. consumers around the world across
major geographies: the United States,
Of course, the fact that 85 percent of New research from United Kingdom, Australia, Brazil,
people ages 18 to 24 are Internet video Germany, Italy and Spain.
consumers is hardly surprising. But even
Accenture: consumer
among consumers over the age of 65, trends in the Internet The results give companies a look
not only at current trends, but also
two-thirds of our survey respondents are video industry at where those trends are leading, in
joining the Internet video movement.
The amazing growth of broadband is terms of both video viewing habits and
And 82 percent of those in one of
shaking up how people around the world where revenue growth is most likely
the most important demographics to
watch TV and, in general, how they to occur. Although traditional linear
advertisers (ages 35 to 44) are now
consume all types of video content across TV offerings still dominate consumer
accessing and interacting with video
all types of devices. It’s also shaking up viewing habits, that dominance is
over desktops, laptops, Internet-
business models and entire industries, already in question.
connected TVs and mobile devices.
as Web-enabled platforms drive a rapid
These are numbers that cannot be uptake of digital video services. Case in point: two-thirds to three-
ignored. Consumption of video over the fourths of consumers are already
In this environment of overwhelming using other devices including desktop
Internet is now more than a millennial-
market potential, it’s more important computers, laptops, DVD players, mobile
generation phenomenon; it is an
than ever for all the players in this devices and even broadband-enabled TVs
activity that crosses all ages. Video over
market space—broadcasters, content to watch video.
the Internet is on its way to becoming
providers, network operators and other
the new mass media.

Figure 1. Proportions of consumers (total and by geography) who watch video over the Internet

100%

89%
86%
80% 80% 79%
77% 75%
72%
65%
60%

40%

20%

0%
Total United States Brazil United Kingdom Germany Italy Spain Australia

3

Consumers are The need for over-the-top players to
adopt new capabilities and business
What does it mean that devices
(Internet-connected TVs) so recently

still watching
models may increase the demand introduced have already reached a
for specialty firms and partners with level of acceptance equal to the use
both the technology and experience of mobile devices to watch video? The
traditional TV, to bring compelling offerings to
market at an accelerated pace. This
finding may reflect the “form factor”
challenge when it comes to mobile
but they’re demand is heightened by a constantly
evolving landscape of services and
video viewing: with broad access
to video across devices with larger
also viewing devices which, our research finds, are
increasingly compelling to consumers
screens, mobile video viewing will
rarely be the first choice among many

content over all over the world. consumers. Providers will need to focus
even more on video content created
Video on everything?
an amazing The growth of video
specifically for the small screens of
mobile phones.

range of other watching across devices
Watching TV certainly isn’t what it
Looking at geographic differences,
several areas of the world are out in
devices and used to be. Once confined to a single
kind of device, and an experience
front. Brazil leads the way in desktop
video watching (82 percent) and Italy

interacting that involved an undifferentiated
audience “leaning back” to enjoy
in mobile video watching (76 percent).
Consumers in the United States lag

with content content pushed to them, the video
experience has become much more of
behind in several respects when it
comes to video over the Internet:

and people a “lean-forward” activity that involves
choosing, interacting and sharing.
as compared to other geographies
surveyed, the fewest percentages watch

during the
video on laptops (64 percent) and
This is a trend that’s been growing mobile devices (47 percent). Brazil’s
in the marketplace, and our research consumers again lead the pack when it
viewing confirms it. The consumers participating
in the Accenture Video-Over-Internet
comes to using Internet-connected TVs
(78 percent) while Australia shows the
experience. Usage Survey are certainly still
watching traditional, passive, linear TV,
lowest level of usage (55 percent).

but they’re also accessing and viewing However, it’s the pervasiveness of
content over an amazing range of Internet video-watching across age
other devices and using other means to groups and genders that is truly an
interact with content and people during outstanding development. Nearly equal
the viewing experience. percentages of the men (79 percent) and
women (75 percent) surveyed are online
For example, seventy-five percent of video consumers. Numbers across the
consumers globally have used a desktop most profitable age demographics are
computer to view video content; 72 also extremely strong: 85 percent of 18
percent have watched video on a laptop; to 24 year-olds; 84 percent of 25 to 34
and 63 percent have watched video on a year-olds; and 82 percent of 35 to 44
mobile device or Internet-connected TV. year-olds (see Figure 3).
Tablet computers such as iPads—which
are new in the marketplace—lag the
pack, with only 21 percent of consumers
saying they’ve used them for video
watching (see Figure 2).

4

Figure 2. Proportions of consumers (total and by geography) who watch video—by device

100%
92% Total
United States

80% Brazil
75% United Kingdom
72% 71%
Germany
63% 63% Italy
60%
Spain
Australia

40%

21%
20%

0%
TV via traditional Desktop Laptop DVD/Blu-ray TV via broadband Mobile iPad/tablet
sources computer computer or Internet phone/device

Figure 3. Proportions of consumers who watch video over the Internet—by age and gender

100%

85% 84% 82%
80% 77% 79%
75% 76%
71%
64%
60%

40%

20%

0%
Total Male Female 18-24 25-34 35-44 45-54 55-64 65+

5

Trending upward, And these trends are showing up in age viewing on mobile devices. The viewing
groups beyond the expected numbers of video over a laptop has dramatically
across all age groups of the millennial generation. Indeed, increased among 18 to 24 year-olds
Equally compelling are the trend lines. for most devices, growth numbers (54 percent) and 25 to 34 year-olds
Our global survey respondents indicated are nearly identical for the 25-34 (46 percent), but has also increased by
that they were increasing their use year-old category as for the 18-24 about one-third for consumers between
of non-traditional devices to watch year-old category. Thirty-one percent the ages of 35 to 54 (see Figure 5).
video. Viewing increased in the past of consumers in both age groups, for
year on laptops (35 percent), desktops example, have increased their video
(28 percent), Internet-enabled TVs viewing on desktops; 34 percent in
(26 percent) and mobile devices (23 both groups have increased video
percent) (see Figure 4).

Figure 4. Proportions of consumers (total and by geography) whose video watching increased on each device in the past year
50%
Total
United States

40% Brazil
United Kingdom
35%
Germany
Italy
30%
28% Spain
26%
Australia
23% 23%
20% 19%

10%
7%

0%
Laptop computer Desktop TV via broadband TV via traditional Mobile DVD/Blu-ray iPad/tablet
computer or Internet sources phone/device

Figure 5. Proportion whose video viewing has increased on each device in the past year—by gender and age

60%
Total
Male

50% Female
18-24
25-34
40% 35-44
35% 45-54
55-64
30%
28% 65+

23%
20%

10%

0%
Laptop computer Desktop computer Mobile phone/device

6

Dealing with a more analog world isn’t going away, either: What do consumers want?
about one-third of consumers regularly
fragmented viewing read a book or newspaper while
What features and functions of Internet/
broadband TV are most appealing
experience watching TV.
to consumers? The largest share of
The “lean forward” experience enabled Again, nearly identical percentages of respondents—40 percent—pointed
by the digital world is also changing the 18 to 24 year-olds (94 percent) and 25 to functionality with which they are
very nature of TV and video viewing. to 34 year-olds (92 percent) multitask. already familiar: catch-up TV that
There is no longer any delivery channel About three-fourths of those ages 45 enables viewers to watch content they
or device that receives the uninterrupted to 64 also are engaged in multiple may have missed, recorded up to a
attention of viewers. The viewing media experiences as they watch TV. week or so in the past. This finding is
experience is now made up of an ever- additional support for the contention
changing mix of different devices for This fragmented viewing experience that consumers are ahead of the market:
different reasons, all at the same time. might at first appear to present they want unlimited content at their
challenges to groups such as traditional convenience and actually see less value
The economics of free-to-air, advertisers looking for a share of in the more traditional, but constrained,
advertising-funded broadcasting were dedicated consumer “eyeballs.” On model of the personal video recorder
based on the economy of attention: the other hand, companies able to (PVR) (see Figure 6).
the ability to capture and maintain leverage this multi-device, multichannel
people’s attention during commercials, experience to reinforce messages Looking at other service features of
at scale. These traditional economics or content across devices have an video over the Internet, the survey
are now in question according to opportunity to gain even more viewer results point to the fact that consumers
survey results, as eighty-one percent awareness and loyalty. Today, very few are now looking to experience the same
of consumers multi-task with other broadcasters and content providers have kinds of freedom, unlimited choices
devices while watching TV, and truly compelling multi-device services and compelling user experience with
presumably, this behavior is intensified that can leverage these consumer their video and TV viewing that they
during 30-second advertising spots. behaviors. Yet consumers are clearly have grown accustomed to on their
Almost half of consumers (48 percent) indicating that they have the mental computers. However, they do not
use a laptop computer while watching; bandwidth to cope with additional necessarily want to surf the Web and
41 percent use a mobile device; and 23 information, services and entertainment. see relatively little value in using the TV
percent use a desktop computer. The as a device for widgets.

Figure 6. Most important Video-Over-Internet service feature: total and by geography

50%
Total
United States

40% 40% Brazil
United Kingdom
Germany
Italy
30%
Spain

24% Australia

20%

14%
12%
11%
10%

0%
Catch-up TV to pause Personal video recorder Surfing the Web on Ability to watch content Having interactive/social
and watch at leisure (ability to store and your TV on other devices networking functionalities
watch whenever)
7

Consumers are indicating that good Compelling functions Tablets: supporting a more
content is as important as ever, but the
key driver for adopting a new service for PC and laptop interactive experience
is to package that content with an eye video viewing As noted previously, iPads and other
toward a more personalized experience. The Accenture Video-Over-Internet tablet computers are just now entering
They want to watch video on their survey also asked consumers about the arena and thus are not yet a
terms—not by appointment. specific features and functions they significant factor in Internet video
would be interested in across different by consumers. However, consumers
On the horizon are functions related to are already aware of how the tablet
social networking. These are features devices. More than half pointed to one
of the key capabilities of Internet TV: might change their viewing experience.
that providers will have to increasingly Although the greatest percentage of
incorporate into their offerings. the ability to store and record content
locally, and then view it on multiple consumers (54 percent) are interested
Although the numbers of interested in using their tablets for fairly standard
consumers appear low at this time, devices at their convenience. In this case,
the ability to record content on the PC video-on-demand and catch-up
these lean forward capabilities represent functions, another 44 percent cited
a growing trend in the industry. Interest and then watch it later either on that
computer or on a TV was compelling interest in the ability to interact with
in social networking as a service feature an on-air program to receive additional
provided though Video-Over-Internet functionality to majorities of consumers
across most geographies (see Figure 7). content related to what’s being viewed.
was slightly higher among 18 to 24 year Another 39 percent were interested
olds (16 percent) than for those ages 25 Employing a catch-up feature on a in access to interactive content during
to 64 (10 to 11 percent). computer was of interest to 43 percent a show (e.g., placing a bet on a game
of consumers, and video on demand or voting).
The greater issue here is control: once
consumers experience control over was of interest to 40 percent. Forty-one
percent were interested in the more These findings again point to a trend
what content they watch and when, it’s that is likely to dramatically alter how
only a small step to additional matters expansive set of TV channels that can
be made available to them through video content is provided to consumers
of control such as on what device and and how other media and devices
with whom they watch and interact. Internet-enabled TV.
will be used to reinforce the primary
experience and device being used.

Figure 7. Preferred services from content providers via Internet on a computer/laptop—total and by geography

70%
Total

60% United States
Brazil
52% United Kingdom
50%
Germany
43% Italy
41% 40%
40% Spain
36% Australia

30%

20% 20%
18%
14%
10%

0%
Ability to use PC Catch-up TV New TV Video on TV channels Apps such as Recos and Social network
to record TV channels not demand (i.e., available on TV weather, alerts for features
content and watch available on TV movie or TV news, stocks, programs of
later on PC or TV show library) horoscope interest

8

Quality is king This concern about quality was issue looks to be a growing concern of
underscored by another finding from the younger consumers, who appear to be
“Content is king” has been a standard survey: the biggest frustration consumers more impatient: 61 percent of consumers
phrase of the broadcast industry for currently experience with Internet video ages 18 to 24 are concerned about the
many years. The statement remains is the time required to buffer, download time required to download and buffer
true, but the technical delivery quality and play a video. Clearly, one of the videos. That percentage consistently
of that content is now on the minds of issues providers must anticipate and drops about seven percentage points as
many consumers as well. Asked to name solve if they are to be successful in the one moves up the age levels. But that
the most important technical feature IP video marketplace is the ability to also means that quality will be a growing
of Internet TV, about half of consumers handle congestion on the network and concern as those millennials become key
around the world (slightly higher in the perform streaming in such a way as to buyers in the future (see Figure 9).
United Kingdom and Australia) cited deliver a high-quality experience.
quality of service (specifically, clarity In general “poor video quality” was
of the picture and speed of content The need for quality becomes a kind of a concern of more than one-third of
delivery). These numbers are almost “reality check” for the over-the-top TV consumers (35 percent). Concerns
uniformly consistent across all age era. Yes, exciting functionalities are here about advertising interfering with the
groups, too. because of broadband-enabled video: viewing experience was named by
multidevice convergent experiences, about the same number of respondents
The desire for quality viewing far catch-up TV, video on demand, unlimited (36 percent). Costs were not cited as
outranked other features such as channels, personalized playlists and a primary concern: only 16 percent of
high-definition (27 percent), the more. But simply offering these services consumers are worried about increased
ease of the user interface in enabling is not enough; based on consumer broadband data costs from downloading
search and content management feedback, quality will play a key role in videos, though that number was much
capabilities (14 percent), and the use separating winners and losers. “Best higher in Brazil (30 percent).
of recommendation engines to point effort” quality is no longer acceptable.
viewers toward content in which they
might be interested (11 percent) (see As opposed to other areas of our survey
Figure 8). where consumers across all age groups
shared similar interests, the quality

Figure 8. Most important Video-Over-Internet technical feature: total and by geography

70%
Total
United States
60% Brazil
United Kingdom
50% 49% Germany
Italy
Spain
40%
Australia

30%
27%

20%
14%
11%
10%

0%
Quality of service (i.e., HD (high-definition viewing) User interface and ability Quality of recommendations
clarity of the picture, to find and manage video of videos/shows I might be
speed of content delivery) content interested in viewing

9

The ultimate stakeholder, however, is
Managing the effects Conclusion: Listening the consumer. Understanding consumer
Is Internet TV beginning to surpass other to the consumer Video-Over-Internet preferences is
important sources of revenue such as Different types of companies are critical to success, regardless of where
premium subscription services? These experimenting with Video-Over-Internet a company seeks to position itself in
effects are only beginning to be seen services, and savvy players are learning the overall ecosystem.
and are unclear as of yet. Although both from past mistakes and current
about two-thirds of consumers (fairly Video delivered over broadband
stumbles. Original IPTV offerings, for
consistently across geographies) have connectivity is no longer a phenomenon
example, did not meet expectations
not changed their premium channel confined to younger generations. As the
because they tried to imprison
subscriptions because of Internet TV, 2011 Accenture Video-Over-Internet
consumers in proprietary, walled
results indicate an initial net loss of Consumer Usage Survey shows, growing
gardens. Mobile video has struggled
premium channel subscriptions of about percentages of consumers across all age
with overcoming the restrictions of
eight percent. Consumers are possibly groups are watching video on Internet-
smaller screens and devices.
not fully convinced that over-the-top enabled devices.
video is a full substitute for premium In general, openness is becoming an
Consumers are indicating strongly that
pay TV, but as consumers test new, important marketplace characteristic,
they are ready for a true multi-device
over-the-top services, a progressive and also a key to success. Since the
experience—one that goes beyond
downgrading of subscriptions may occur. birth of commercial television, TV
simply replicating traditional TV on
broadcasting has been a business
Similarly, Internet video has had only another device to creating a new
dominated by a fairly limited number
a modest effect on video-on-demand experience where content is important,
of stakeholders. Today, many players
(VoD) purchases. About three-fourths of quality is critical and personalization of
are jockeying for position. New
respondents said their VoD purchasing the service is a must. Over-the-top TV
stakeholders—telcos, Web search
habits have remained about the same; can succeed—if companies understand
engines, portals, device and software
eight percent or so claim to have and embrace new consumer behaviors.
giants, and others—are looking to
reduced VoD purchases, but about an play a key role in how the industry
equal amount say they are now actually evolves. This is now a wide-open—and
purchasing more. increasingly global—playing field.

Figure 9. Frustrations about viewing Internet video on computer, TV and other devices—by gender and age*

70%
Total

60% Male
58%
Female
52% 18-24
50% 50%
25-34
35-44
40% 45-54
55-64

30% 65+
25%
23%
20%

11%
10%

0%
Time required to Advertising during Poor video quality Poor navigation/ Increased broadband/ None
buffer/download/ the program (if not HD) search/EPS high-speed data costs
play video from downloading video

*Data in the chart is reflective of the 4,566 survey respondents who are currently viewing Internet video on their computer, laptop, mobile phone, tablet, or other device.

10

Contact About the authors
For more information about the Marco Vernocchi
Accenture 2011 Video-Over-Internet Global Managing Director, Media &
Consumer Usage Survey, please contact: Entertainment, Accenture
marco.vernocchi@accenture.com
Janice Burg-Levi
Director of Global Industry Marketing, Francesco Venturini
Communications & High Tech, Accenture Global Broadcasting Lead, Accenture
janice.burg-levi@accenture.com francesco.venturini@accenture.com

Dipan Patel
North America Video Lead, Accenture
dipan.d.patel@accenture.com

Copyright © 2011 Accenture About Accenture
All rights reserved.
Accenture is a global management
Accenture, its logo, and consulting, technology services and
High Performance Delivered outsourcing company, with more than
are trademarks of Accenture. 215,000 people serving clients in
more than 120 countries. Combining
unparalleled experience, comprehensive
capabilities across all industries and
business functions, and extensive
research on the world’s most successful
companies, Accenture collaborates
with clients to help them become
high-performance businesses and
governments. The company generated
net revenues of US$21.6 billion for
the fiscal year ended Aug. 31, 2010. Its
home page is www.accenture.com.

Accenture : Video-over-internet consumer usage survey 2011

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