TiVo, a wholly owned subsidiary of entertainment technology company Xperi, has released its Q4 2024 Video Trends Report and found consumers in the US and Canada have begun to declutter their video libraries, in an effort to simplify their entertainment experiences. This trend of streamlining video services underscores the critical role high-quality content has in driving sustained engagement and connection with consumers.

In Q4 2024, TiVo found that consumers decreased their entertainment spending nearly $20 year-over-year, with the average number of services used declining from 11.1 to 9.9 in the same period. This is the first time since before 2021 that the average monthly entertainment spend dropped below $160 – it had peaked in 2022 with an average monthly spend of $189.38. Among those who canceled a SVoD service within the last 6 months, 17 per cent said they did so because they “weren’t using it enough” and 16.9 per cent said it was because the service raised its prices. This decrease, paired with a plateau of hours spent watching video, highlights that consumers are spending the same amount of time consuming content but on fewer services across linear and streaming. This points to a reprioritisation of how and what consumers chose to spend their time on, indicating a migration towards value.

Unlike in previous years, when consumers were willing to pay for ad-free SVoD services, today’s consumers are opting for richer content libraries, regardless of ad presence, as they seek a more simplified and value-driven entertainment experience. With this shift, consumer ad tolerance rose year-over-year from 75.3 per cent to 76.2 per cent and viewers displayed a preference for more personalisation. As the streaming landscape continues to evolve, the platforms that successfully win over consumers will be the ones that deliver not just value — but relevance.

“We are seeing a shift in consumer priorities as they look for ways to reduce the number of services they use without sacrificing access to quality content,” said Xperi’s chief product and services officer, Geir Skaaden. “As consumers face economic uncertainty there will be increased pressure on the entertainment industry to deliver quality content and keep users engaged for long periods of time. There is a chance we will see a similar spend and entertainment consumption trend from that which we experienced during the pandemic, with consumers searching for cost saving measures and spending more time at home, increasing the value in which consumers place on entertainment. This new balancing act is and will continue to put more pressure on the entertainment ecosystem to deliver value with relevant and timely content.”

While consumers continue to trim down their streaming services, pay-TV, on the other hand, is seeing a revival as the number of users planning to cut the cord declined 2 per cent year-over-year, indicating that consumers are staying with cable. This renewed interest has been fuelled by unrestricted access to popular entertainment — especially sports — freeing consumers from the walled gardens of many streaming platforms. In fact, sports emerged as a focus for consumers in Q4 2024. Amid an increasingly fragmented viewing landscape, 58 per cent of respondents reported being unable to watch specific sporting events due to lack of access through their subscribed services, leading to frustration when games weren’t available (49 per cent) and unveiling an opportunity for providers who can bring sports viewing together to win with consumers.

Additional TiVo Video Trend Report highlights

• In-car viewing is on the up and up: In-car entertainment viewing increased by 6 per cent year-over-year as respondents reported using video to pass the time while waiting in the car and to keep children entertained. Of those who watch video in the car, 75.1 per cent reported doing so at least a few times a month.

• Sharing is caring: Password sharing has been a hot topic for users and service providers alike, the report found that 34.6 per cent of respondents shared a SVoD password for at least one service.

• All at once vs. one at a time: About half of respondents shared that they preferred when streaming services release an entire season at once, compared to 19 per cent who prefer a slower release cadence of an episode a week, the remainder did not have a preference.

• Personalised ads at all costs: With 41.6 per cent of respondents sharing that they prefer personalised ads no matter the platform, advertisers face greater pressure to provide relevant content that drives meaningful engagement through both linear and CTV options — especially as consumers prioritise quality content.

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Categories: Articles, Consumer Behaviour, Research, VOD

Tags: TiVo, usa, vod, Xperi