Understanding the Shifts in TV and Online Viewing: Key Insights from the Ofcom Nations Report
The landscape of TV and online video consumption is evolving rapidly. Yes we know that traditional Broadcast TV is in decline but what are the nuances? According to the latest Ofcom Nations report, several trends are reshaping how we engage with video content. Here’s a breakdown of the key takeaways:
Decline in Traditional Broadcast TV
- Weekly Reach Drop: Broadcast TV’s reach fell from 79% in 2022 to 75% in 2023. However, this decline is slowing down, indicating a gradual shift rather than a sharp drop.
- Generational Gap: Young adults aged 16-24 are tuning into broadcast TV less frequently, with less than 20% of their viewing going to broadcasters. In stark contrast, over-64s still dedicate a substantial 87% of their viewing time to traditional TV channels.
- Total video viewing is up overall but broadcast content now makes up only 57% of total
Rise in On-Demand and Streaming Content
- Increased BVoD Viewing: Daily viewing of broadcaster video-on-demand (BVoD) services rose by 29%, now averaging 20 minutes per person. This suggests that while traditional broadcast TV is in decline, on-demand options are gaining traction.
- Video-Sharing Platforms Growth: Viewing on platforms like YouTube, TikTok, and Twitch has increased by 12%, with people spending an average of 49 minutes per day on these sites.
- BVoD- no longer as appealing to the under 24’s but increasingly important for the over 55’s.
YouTube’s Growing Influence
- TV Integration: The importance of TVs for watching YouTube is on the rise, with TV-based viewing accounting for 34% of all in-home YouTube views in 2023, up from 29% in 2022.
- Content Preferences: Short videos up to 15 minutes long remain the most popular, with YouTube Shorts also seeing a significant increase in usage. Additionally, 36% of users access YouTube multiple times a day, a figure that jumps to 53% among YouTube Premium subscribers.
Streaming Services Stabilize
- SVoD Take-Up: The adoption rate for subscription video-on-demand (SVoD) services like Netflix, Disney+, and Prime Video has plateaued at around 68% of households. Among younger viewers, Netflix is the top choice for casual viewing, while older audiences still prefer traditional TV channels.
Demographic Viewing Habits
- Young Adults: For those aged 16-24, SVoD services are the go-to option when they have no specific content in mind. Netflix leads the way for this group, with 38% choosing it first, compared to just 8% who turn to TV channels.
- Older Adults: Conversely, 72% of viewers aged 74 and over prefer TV channels. For this demographic, BBC iPlayer and Netflix are nearly equal in popularity, though YouTube is less favoured.
Conclusion
The Ofcom Nations report highlights a significant shift from traditional broadcast TV to a mix of on-demand services and online platforms. While older generations remain loyal to TV channels, younger audiences are increasingly drawn to streaming services and video-sharing platforms. The growing role of YouTube, especially on big screens, and the steady adoption of SVoD services reflect broader changes in media consumption habits.
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