Mainstreamers, Hip Seniors and Bohemians; Classifying streaming video subscribers

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Media streaming companies have taken the entertainment industry by storm. Netflix, Amazon Prime, Hulu, and a dozen other smaller streaming services are not only a threat to cable, but to movie studios as well. Streaming services’ award-winning content is forcing new players to enter the game. Industry leaders such as Apple, Disney and AT&T are playing catch-up by releasing streaming services of their own. In addition, programming and content innovations, such as Netflix’s interactive TV, are pushing the envelope on what TV content is and how viewers engage with the category, while at the same time allowing Netflix to collect valuable information about viewers’ preferences and choices.

So, with the category becoming increasingly crowded and competitive, and with new content innovations changing the way we view content, this raises the question: How can streaming companies better target consumers to compete more effectively and ultimately increase their share of subscriptions and viewership? How can they keep their viewers from finding out and shifting their viewing time to other

streaming services? The first step is to really understand who their customers are.

Obviously streaming companies already have large amounts of viewers behavior data: genres they like, when they watch, how long, from what devices etc. Our goal with this research is to understand more holistically who streamers are and what, if any, are the differences between those who choose one streaming service over another.

To understand the streaming audience, we conducted an online quantitative research study, among 500 respondents that stream content, to create a general streamer profile as well as profiles for customers of different streaming services. Profiling by service provider helped us better define and understand the nuances of who these people are demographically, attitudinally, as well as their streaming behaviors.

Our data showed that there are numerous commonalities between the customers of different streaming services, but this is not a monolithic group: there are subtle differences between users of different streaming services.

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This report highlights key findings from a recent Lab42 survey of 500 video

streaming subscribers. We conducted this analysis using a Priori Segmentation,

where groups are created using a pre-defined variable (in this case the streaming

service that is currently being used). Then we used other survey variables to give

texture and color to these respondent groups, including demographics, attitudes,

behaviors, hobbies and habits.

The resulting data can be used by streaming services to develop more custom and

effective marketing strategies, as well as communicate with customers in the most

relevant way and with the most relevant messaging and content.

Categorizing subscribers of video streaming

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Streamers tend to be younger, single urbanites/suburbanites, with slightly higher education and income levels vs. the US average.

DEMOGRAPHICS WHAT DO STREAMERS LOOK LIKE?

39% Millennial(18-34 years old)

42% GenX35-54 years old

58% single

50% have kids

51% earn > $50KUS average income is $48,150

78% live in urban or suburban areas

No political affiliation

50% have some college or moreUS average is 39%

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ATTITUDES AND HOBBIESWHAT DO STREAMERS LOOK LIKE?

Streamers are bargain shoppers, prefer the great indoors, and are not as influenced by causes when deciding what to purchase.

65%I would pay more for convenience

88%I like spending time with my family

75%I enjoy going out with friends

84%Friends describe me as open-minded

85%I always like to shop the best deals

77%I like discovering other cultures

74%Spending time outdoors is important

65%I use coupons as much as possible

80%I save money by cutting unnecessary things

61%I am the first to try new things

66%I like to wait before jumping on a trend

Streamers are minimalistic when it comes to their services and economical with their savings. They shop for the best deals (85%), often by cutting out unnecessary things from their lives (80%). Bundled services, that include extra and unused amenities, are of no interest to the average streamer. Streaming services act as the most efficient medium, that gives consumers control over what they watch and how much they pay for it.

Streamers are not as cause driven as they are cost driven, in terms of their purchasing decisions. Only 59% agree that they purchase from companies that give back or support causes they care about. Although they might not impact their purchasing decisions, streamers prioritize these social/cultural issues as the most important: healthcare, education and to a lesser degree, gun control. Gay rights and abortion rights are not as important to streamers as a whole.

Streamers are also indoor creatures; they like to spend a lot of their free time watching movies, cooking, playing music and video games. They are not into outdoor activities, sports, yoga, politics, history/art or design.

Attitudes of streaming subscribers

50%

I like bundling services even if I don’t use some of them

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STREAMING HABITSWHAT DO STREAMERS LOOK LIKE?

Streamers shop around before deciding what streaming services to use. On average, streamers try nearly 4 streaming services, but end up using between 2 and 3.

When it comes to specific streaming services, Netflix dominates all of the other services, while the rest of the streaming services are almost like fillers. Almost all streamers (84%) use Netflix, plus one more streaming service.

That said, streamers are not yet completely off cable as 62% still claim to also have cable service. This group is not just streaming TV shows and movies. Almost all (91%) also stream music videos, news clips and live sports, with more than a third (37%) also streaming podcasts.

In terms of streaming music, almost 6 in 10 (58%) use a paid streaming service, mostly Spotify (20%), followed by Amazon Prime Music at 19%. This is a much larger percentage than the 14% nationally that pay for music streaming.

Streamers don’t just subscribe to streaming services and music; four in ten (40%) tried some other unrelated subscription service, with 20% indicating they have ever tried subscription shaving kits. This aligns with streamers’ desire to cut costs as typically such subscriptions tend to be very affordable.

NEARLY

8 out of 10video streamers also

stream free music

20%

19%

12%

12%

12%

10%

7%

2%

MUSIC STREAMING SPEAKS VOLUMES% of video streamers who also subscribe to. . . .

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STREAMING CONTENT WHAT DO STREAMERS LOOK LIKE?

Who doesn’t love a good comedy or some great drama! Streamers’ favorite streaming genres align with what we all love: comedy (65%), dramas/thrillers (60%) and action/adventure (55%). The least favorite genres are foreign movies/TV shows and culture/style shows.

But how do you get streamers hooked on new content? The best way to introduce new content is directly through the service as they are already using it; they typically discover content by scrolling through their provider’s options. Word of mouth from friends and relatives is another popular way this group discovers content.

65%COMEDIES

55%ACTION / ADVENTURE

44%SCI-FI / FANTASY

44%HORROR

DRAMAS / THRILLERS60%

FAVORITE GENRES

Top genres for streamers include comedies, dramas/thrillers, and action/adventure.

DEVICESWHAT DO STREAMERS LOOK LIKE?

65% of video streamers stream content on their smartphone.

It’s easy to see why telecom companies like AT&T want to jump in the streaming category as most streamers (65%) stream movies or shows on their smartphone. Most streamers are Android users with (66%) owning Android phones, while 35% own android tablets. In addition, 63% own a PC desktop while 45% own a PC laptop.

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NOT ALL STREAMERS ARE THE SAMEWHAT DO STREAMERS LOOK LIKE?

Those who stream, regardless of what service provider they use, tend to share many similar characteristics, such as favorite genres, how they research new content, devices used etc. However, they are not all the same.

Through our research, we identified subtle differences among users of each of the 3 major providers (Netflix, Amazon Prime Video, Hulu) compared to streamers overall. These characteristics can be leveraged to customize

how to approach them and communicate with them with the most relevant messaging and content.

% OF STREAMERS USING THIS SERVICE

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MAINSTREAM(ERS)NETFLIX USERS

HIP SENIORSAMAZON PRIME VIDEO USERS

WHAT ARE THEIR UNIQUE CHARACTERISTICS? Relative to total streamers, Amazon Prime users tend to skew older (55+), and are highly educated with mid to high incomes. Their interests are diverse: they tend to love politics, sports, traveling, hiking and board games, and are more likely to be interested in many causes like gun control, gay rights, energy and income equality.

These users are also more open to trying and using a variety of streaming services. This group is likely to have tried 4.5 services, and on average, currently use at least 3 services.

CONTENT When it comes to content, Amazon Prime streamers are more likely than overall streamers to discover new content through streaming service recommendations. In addition to comedies, drama/thrillers or action/adventure movies, these streamers are more likely to enjoy content related to sports, politics, documentaries, science/technology and talk shows. They tend to stream using a video player, tablet, smart TV, or laptop.

WHAT ARE THEIR UNIQUE CHARACTERISTICS? The only slight differences between the large group of Netflix users relative to the total streamers group are their demographics. Netflix users skew slightly younger and slightly less rural, fewer tend to have post-graduate education, and fewer tend to have incomes less than $100k per year.

Netflix users are very similar to total streamers when it comes to attitudes, interests and causes that are important to them.

Netflix does have an advantage over the other streaming companies on original content and this is another area where it can further differentiate. With the push into interactive TV, Netflix has the potential of attracting at least initially, a different type of viewer, who is more into novelty, create your own TV shows.

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BOHEMIANSHULU USERS

WHAT ARE THEIR UNIQUE CHARACTERISTICS? Relative to total streamers, Hulu users skew younger (Millennial 18-34) and female, living alone, are less educated and less wealthy (less than $100k household income). They have many interests, mostly revolving around arts (design, art, arts & crafts, history) and they also like yoga, but are not as interested in politics. They are more likely than overall streamers to be interested in issues such as gay rights, income inequality and minimum wage, in addition to marijuana legalization.

This group is the most experimental when it comes to streaming services, as they are likely to have tried over 5 services, and currently use nearly 4 services.

With the increased usage in streaming services comes a lower rate of cable usage - almost half of Hulu users have already cut the cable cord.

CONTENT Hulu users are the most diverse in the content they enjoy. In addition to comedies, drama/thrillers or action/adventures, this group also tends to like content related to culture, style, fashion, beauty, Sci-Fi, fantasy, DIY/tutorials, in addition to horror and romantic drama/comedies. They are also likely to find information on new content through ads in magazines or streaming service recommendations, and are more likely to stream content through a console or a tablet.

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As more and more companies continue to enter into the media/content streaming category, there is a need to further customize their strategy, messaging and content. The more streaming companies know about their customers, the better they can serve them relevant content and messaging, as well as additional services that fit their specific tastes and needs while ultimately preventing users from fragmenting their viewing time and habits.

Lab42 conducts custom, online market research projects for clients. By obtaining respondents for online surveys via social media and social networks, Lab42 is able to reach fresh respondents as they go about their daily lives and avoid the professional survey takers often found in online panels. The Company’s offerings include a full suite of market research services - from survey writing, programming and hosting to results analysis and infographics. Lab42 is market research, smarter.