A survey of consumer behaviour has identified the five types of ‘Television Tribes’ each with very different patterns in the way they consume and pay for content.
The study, produced by Ampere Analysis on behalf for content protection firm NAGRA, and available from the Broadband TV News website, identifies five so-called Television Tribes”.
- Content Connoisseurs – a young, affluent and tech-savvy early adopter group who want everything on demand and are willing to pay for it. They are also the most likely to churn.Broadcast Bingers – a low-spending group best entertained when binge-watching box sets
- Digitally Detached – an older generation, harder to reach and least likely to spend money on pay-TV content
- TV Traditionalists – a middle-aged group of linear TV consumers most interested in the big screen, and particularly in sports
- Super Spenders – linear TV experts with money to spend to have full bundle access to content
Guy Bisson, Research Director, Ampere Analysis, said: “The future is not about running from changes in the pay-TV market, but embracing them. Successful operators realise that the world of paid content has moved beyond the simplicity of relying only on sports and Hollywood movies to drive subscription and into a business environment characterised by shades of grey. To succeed, operators must understand the very different demands of today’s consumers and continue to give them what they want by embracing the opportunities offered by streaming services and content.”
The research focuses on the Content Connoisseurs, the most valuable and fastest-growing consumer type, but also the most demanding, making up 24 per cent of the global market. They are the biggest spenders, love their content and consume significantly more from subscription-video on demand sources than the average household.
They claim they will stop watching linear TV altogether in five years.
The often overlooked TV Traditionalists are the second most valuable Tribe for pay-TV operators and represent 18 per cent of market share.
“As the distinction between conventional pay-TV and OTT services blurs, understanding these TV tribes, which ones are the most valuable, and keeping them happy with compelling content, experiences and technology, is the first step for operators to unlock new opportunities and remain relevant in a new pay-TV era,” said Ivan Verbesselt, SVP Group Marketing, NAGRA. “A one-size-fits-all strategy will not maximise value. Meeting the needs of distinct segments of consumers is the key to attracting and retaining subscribers, and growing revenue.”
The study identifies key actions operators can undertake to help defend their position including: stacking the right services for each market segment, leveraging IP and cloud technology to launch new on-demand services quickly and cost-effectively, delivering multiscreen user experience that embraces data analytics to improve customer insight and personalisation.
