The Case for News in Video D2C Services
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The 20,000 Foot View: Digital disruption of the traditional pay-TV landscape was led by subscription video on demand (SVOD) services using scripted drama to gain consumer adoption, one of pay-TV’s very own four pillars. With SVOD originals strategy now diversifying into factual and reality, the two remaining pay-TV pillars sports and news are all that is stopping SVOD being a full like-for-like replacement for traditional pay-TV. With sports ROI hindered by excessive valuations, news is optimally placed to join scripted drama, factual, and reality at the core of direct-to-consumer services, catalysed by live coverage and the growing tribalism of politics.
Key Insights
- News is reborn with of consumers spending per week consuming news (more any other media genre)
- News, however, a utility rather than fan-focused, the favourite TV genre for of consumers, making it just sixth most popular genre
- Yet news also set to grow, with consumers intending to increase their consumption and politics catalysed news consumption, with channels on YouTube seeing a increase in subscribers (nearly twice as quickly as the YouTube average) and a increase in views from April to October 2020
- Apple may particularly well placed in the of news, with Apple TV+ active users over-indexing for news
- News audiences older with of news genre aged
- High news are on higher income, over-indexing the household income bracket
- Digital paid subscribers over-index for connected device consumption and under-index for TV-based consumption
- Paid news are digital sophisticates, with only watching live TV weekly compared the consumer average of and over-index for paid video subscriptions
Companies and brands mentioned in this report: Amazon, Amazon Prime Video, Apple, Apple TV+, Comcast, Facebook, Google, Peacock, YouTube