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Research and Markets: Streaming Media, Movies and Television Market in US - December 2013

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Albany, NY -- (SBWIRE) -- 12/23/2013 -- While copycat services might ordinarily be seen as lacking in points of differentiation, in the case of streaming video services, the elements of service are so few that each service will end up carrying each feature of its competitors, or fall by the wayside. Alternatively, brands can aim for differentiation via original content or via specializing in a specific genre.

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Table of Content

Scope and Themes

What you need to know
Definition
Data sources
Sales data
Consumer data
Abbreviations and terms
Abbreviations
Terms

Executive Summary

The market
Sales grow $1.2 billion in 2013
Figure 1: Total US sales and fan chart forecast of streaming movies and TV sales, 2011-18
Figure 2: Segment sales: purchases versus rentals versus purchases, at current prices, Q1-Q3 2013
Key players
Figure 3: Services used to purchase, rent, or watch video for free, September-October 2013
Figure 4: Usage of streaming VOD subscription services, September-October 2013
Brand awareness tied to ad support
The consumer
18-34s are the market
Figure 5: Penetration of usage of streaming video services, by age, September-October 2013
Figure 6: Heavy users of iVOD content – watched 6+ movies/shows in past week, by age, September-October 2013
Minority groups ahead of Whites in adoption
Figure 7: Use of streaming video, watched for free, rented, or purchased, by race/Hispanic origin, September-October 2013
Majority favor paying for content
Figure 8: Attitudes toward paying to view content, September-October 2013
What we think

Issues and Insights

How much original content is enough?
The issues
The implications
Does consumer binging promote sales?
The issues
The implications
Are recommendation systems a point of differentiation?
The issues
The implications

Trend Applications

Trend: FSTR HYPR
Trend: Mood to Order
Mintel Futures: Generation Next

Market Size and Forecast

Key points
Annual sales at 26% growth
Figure 9: Total US sales and forecast of streaming movies and TV sales, at current prices, 2011-18
Figure 10: Total US sales and forecast of streaming movies and TV sales, at inflation-adjusted prices, 2011-18
Fan chart forecast
Figure 11: Total US sales and fan chart forecast of streaming movies and TV sales, 2011-18

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Segmentation

Key points
Subscriptions carry half of sales
Figure 12: Subscription sales versus rentals versus purchases, at current prices, Q1-Q3 2012-13

Competitive Context – DVD/Blu-ray and DVR

Key points
Three quarters of adults buy or rent DVDs
Figure 13: Purchase and rental of DVDs and Blu-ray in past year, by age, November 2012-June 2013
Figure 14: DVD shopping online and access to a video rental store, by age, September-October 2013
DVD viewers average one purchase and two rentals per month
Figure 15: Number of DVDs/Blu-rays bought versus rented in past three months, October 2010-June 2013
About 1.5 DVDs viewed per week
Figure 16: Time spent watching DVDs in past week, October 2010-June 2013
Figure 17: Time spent watching DVDs in past week, by age, November 2012-June 2013
Figure 18: Number of DVDs/Blu-rays bought versus rented in past three months, by age, November 2012-June 2013
Limited preference for shiny discs among streamers
Figure 19: Preferences for discs over internet delivery, by age, September-October 2013
DVD gift market still rising
Figure 20: Purchase of DVDs as a gift, October 2010-June 2013
Figure 21: Purchase of DVDs as a gift in past three months, by age, November 2012-June 2013
DVR
Figure 22: DVR use, by age, November 2012-June 2013
Figure 23: Skipping ads via DVR, by household income, November 2012-June 2013

Market Drivers

Key points
Home internet subscription rising
Figure 24: Household penetration of internet service subscription, October 2011-June 2013
Figure 25: Household penetration of internet service subscription, by household income, November 2012-June 2013
Figure 26: Household penetration of internet service subscription, by age, November 2012-June 2013
Streaming device ownership and internet speed
Figure 27: Smartphone and tablet ownership, by age, June 2013
Figure 28: Personal and household ownership of computers, July 2010-March 2013
Use of smaller screens for watching movies and television
Figure 29: Use of secondary screens for streaming video, by age, November 2012-June 2013
Streaming media STB growth
Figure 30: Streaming media STB ownership, by age, November 2012-June 2013
Figure 31: Ownership and awareness of streaming media STB brands, September-October 2013
Figure 32: Streaming media STB brand ownership, by age, November 2012-June 2013
Figure 33: Streaming media STB ownership, by household income, November 2012-June 2013
Figure 34: Streaming media STB ownership, by presence of children in household, November 2012-June 2013
DVRs reduce usage
Figure 35: Amount of iVOD content watched in past week, by DVR and 3DTV owners, September-October 2013

Leading Companies

Key points
Transactional usage
No clear line for consumers between independent and studio fare
Figure 36: Services used to purchase, rent, or watch video for free, September-October 2013
Apple, Google orphan video sales
Figure 37: Google Play video ad: “Liquid,” 2013
Subscription services
Figure 38: Usage of streaming VOD subscription services, September-October 2013

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Innovations and Innovators

Netflix reorients toward families
Figure 39: Usage of streaming VOD subscription services, by presence of children in household, September-October 2013
Figure 40: Netflix Profiles, November 2013
Amazon embraces product placement
Crackle gets free movies
Crunchyroll gets Asia
Figure 41: Crunchyroll homepage, November 2013
Figure 42: Fandor homepage, November 2013

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