North American consumer demand for video suffered a decline in the second quarter

After an explosion during the pandemic, consumer demand for streaming appears to be waning at least somewhat, according to the latest quarterly edition of TiVo's Video Trends Report.

First example: The average number of video sources used by US television viewers has increased steadily over the past five years. However, the second quarter 2024 version of TiVo's report shows a decline: consumers used an average of 1.8 fewer video sources in the second quarter than in the same period in 2023.

The biggest hit came from paid video sources, which fell from an average of 6.9 per survey respondent in the second quarter of 2023 to just 5.7 in the April-June period of this year.

TiVo, a brand now owned by San Jose, California-based technology company Xperi Corp. Heard, found in its Q2 survey of North American consumers that 84% of respondents reported using a subscription video on demand (SVOD) service, up from 88% year-over-year. However, there is some good news for subscription streaming companies. According to the TiVo report, churn has declined as consumers stick longer with cheaper versions of SVOD services that are partially funded by advertising.

In the second quarter of this year, 18.5% of survey respondents said they had canceled an SVOD service, compared to 24.3% in the second quarter of 2023. Meanwhile, 64.3% of respondents said they had canceled an ad-supported SVOD service, compared to just 48% in Q2 2023.

Notably, total TV usage fell to 4.4 hours per day in the second quarter, compared to 4.7 hours a year ago. Average daily SVOD usage fell year-over-year from 30.7% of daily viewing to 28.6%. (Strangely, pay TV usage increased from 28.1% of viewer share to 30.3% over the same period.

Of course, consumers have been fleeing the pay TV ecosystem for years, primarily to save money. However, according to the Video Trends Report, the savings gap has closed somewhat as prices for linear pay-TV services fall and subscription streaming companies increase their monthly bills.

In 2022, TiVo's Q2 survey found that pay TV subscribers spent an average of $211.92 per month on video, compared to just $62.30 for consumers who just subscribed to broadband, leading to a “gap” of about $150. In the second quarter of this year, that gap closed, and the difference in video spending between pay-TV and broadband-only subscribers averaged about $113. Total average monthly spending on video services decreased $30 year-over-year to approximately $140, primarily due to lower spending by pay-TV subscribers.

Finally, the latest report identified further, more subtle declines. Use of voice remote features fell 9% year-over-year in the second quarter, with a decline in interest across all audience segments except baby boomers.

TVOD usage also fell significantly, the report said: consumers rented or purchased an average of 7.3 titles in the second quarter of this year, compared to 11.3 films and TV shows in the same period in 2023.

Even in-car entertainment took a hit: 27.4% of respondents said they watched videos in a vehicle in the second quarter, down from 38.7% year over year.

To compile the results, TiVo surveyed 4,490 people in the United States and Canada.