February 5, 2009

Report: Consumers Warming to 'Three Screens'

Recent spikes in both online and mobile video consumption - driven primarily by hardware and software innovations that make "anywhere, anytime" video viewing possible and practical - have created an opportunity for service providers to offer an integrated three-screen video service, according to a recent report by The Diffusion Group. Though hesitant to speak publicly, most U.S. operators are no doubt eyeing this opportunity - especially those with expansive facilities who can act from a position of power, TDG said.

"Assessing Consumer Demand for Integrated Three-Screen Video Services" is large-scale quantitative research focused on three-screen video services. In addition to determining optimal price points and content packaging, the report characterizes the key segment of consumers interested in signing up for such a service - Three-Screen Intenders.

The report also indicates the following:

• Approximately one-fourth of adult broadband users in the United States (approximately 35 million) are to varying degrees likely to sign up for a three-screen video service at some price between $65 and $105 per month.

• More than half of Three-Screen Intenders are between the ages of 25 and 44, though Intenders between the ages of 18 and 24 are significantly more enthusiastic.

• The three-screen concept is not as far ahead of the mainstream temperament as many think. A sizable portion of Early Mainstream consumers are poised to embrace a three-screen video offering, not just Early Adopters.

• Three-Screen Intenders are 21 percent more likely than Non-Intenders to use a game console, twice as likely to use an iPhone, and twice as likely to have a TV set connected to their home network.

• 92 percent of Intenders view online video on a weekly basis, compared with 78 percent of Non-Intenders.
• Cable operators are preferred as a three-screen provider almost two-to-one over satellite TV providers.

• Real-time weather, news, and sports programming (both local and national) are among the content types most favored for a three-screen video service.