Globally, people are spending as much time watching online video as they spend watching TV, according to a new report from Millward Brown. That should bode well for brands trying to target cord-cutters or “cord-nevers,” but digital promos annoy many viewers.
For Millward Brown’s study, “AdReaction: Video Creative in a Digital World,” the research firm polled more than 13,500 multiscreen viewers—i.e., people who own a TV and either a smartphone or tablet—in 42 countries on what they think about video advertising.
The average consumer between the ages of 16 and 45 watches 204 minutes of video a day, split equally between TV and online. Forty-five minutes of the average online viewing time is done on a smartphone, while desktop accounts for 37 minutes and tablet for 20 minutes
While U.S. cable television customers are longing to finally be able to pay for just the channels they actually watch, others have begrudgingly accepted that bundled television is still the way to go for getting their money’s worth. Companies like DISH, Verizon, and Sony have only announced in the last year their own plans for stand-alone streaming services. With a few clicks, $8 for Netflix NFLX +0.75%, $15 for HBO, $20 for ESPN could easily add up to a higher total than what customers currently pay for only a few channels they actually watch in a bundle. What’s more, it doesn’t look like companies will use the same set-top box, if they use set-top boxes at all (Sony and Verizon are looking to offer services completely on the cloud).
The distant dream of a la carte television has never seemed closer to reality. On Thursday, just a day after HBO said it would launch a new online streaming service that doesn’t require a cable TV subscription, CBS announced the launch of CBS All Access, a service will let users watch unlimited CBS content, including some live television, on multiple devices for just $5.99 a month.
It’s still too early to proclaim the death of the traditional cable TV bundle. And yet, the two announcements signal a drastic shift in the way both cable companies and networks—so often adversaries of internet TV services like Netflix and Aereo—now view the changing television landscape. Tech savvy consumers and cord cutters have been urging these companies to unhinge themselves from the traditional cable package for years. But now that they are, the question is: are consumers really ready for it?