Digital/Virtual MVPD Viewers: Drivers and Characteristics

Summary

Viewers can watch content in a variety of ways.  MVPDs – Multichannel Video Programming Distributors – providers include cable operators, satellites and telecom companies.  There are also a growing number of Digital/Virtual MVPDs, who do not use the MVPD infrastructure, but rather the Internet.  Advertiser supported Digital MVPD providers include Sling, Hulu, DirectNow, and Roku. Roku and Omnicom Media Group (OMG) assembled an original research project from among the 15 million+ Roku device U.S. households. They collected a random probability sample of last-month active DMVPD viewers, over 5,900 in total. They then matched a Roku account’s survey responses to second-by-second viewership data for examining even more information. Almost half of the sample of DMVPD viewers trialed a single service before buying one.  About a third of the sample trialed two services. Close to a quarter trialed three or more services. On the question of “how did you learn about the digital TV service you now subscribe to?” The three most popular answers (in the 20-26% range) were: Joint promotions (e.g., free Roku device with subscription); TV Commercials; and TV Talk Show. Another question asked, “Thinking about your household’s choice to subscribe to a digital TV service, please select the top 3 Most/Least important factors in making your final decision?” (multiple choices accepted). Price (80%), Channel offerings (73%) and Better value than traditional TV (60%) received the highest ranking, while the lowest choices were Professional Reviews (40%), Rebate (44%), Brand Familiarity (50%). In terms of content, movies and national programming were key drivers in users’ final decision to subscribe to a digital TV service. Viewers were bullish on their DMVPD services, with only four to five percent indicating that they would drop the service or cancel early. Of note: results indicated that viewers don’t just watch TV on DMVPDs; they all do Searches, watch the Roku channels and use TV Everywhere options as well. Targeted advertising was identified as a big opportunity:

• Millennials were 31% more likely to say they appreciated relevant ads when watching TV on their DMVPD service.
• One in three adults said watching their DMVPD service helped them discover new shows.