Enter an Endless Entertainment Adventure

2. Enter an Endless Entertainment Adventure • Even after a modern history of 70+ years (and many more years in development), the TV set is still a magical device. Never has it been more of the doorway into an endless entertainment adventure than today. • It is also a companion, a teacher, a breaker of barriers between people and nations and a special source of warmth and solace after a long day – like a member of the family. • The focus of this Special Report from Media Group Online is the TV set as a device, the primary gathering place in the home and how people use it – and will continue to use it.

3. A Profile of the TV • The average American home has 2.7 TV sets and 67% of them have at least one Smart TV and almost half, or 47%, have a streaming media player. • Those Smart TVs are also packed with an assortment of technologies that enhance picture quality and expand content choices and viewer engagement. • When asked about the “most used” TV set in their homes, half of a 2019 Hub Entertainment Research survey respondents said theirs is 50 inches or larger and half also said their sets were less than three years old.

4. A TV Set Almost Everywhere in the Home • The Hub Entertainment Research survey also found 81% of the “most used” TV set in the average American home is located in the living room, family room, rec room or den, with the master bedroom a distant second, at 9%. • Asking the location question from a different perspective revealed a TV set was in 92% of living rooms, family rooms, rec rooms and dens, and 62% were in master bedrooms. • Because the TV set is a necessary/common device in these rooms, other devices, such as streaming media players, smart speakers, etc., are more likely to be located there, too.

5. An Emotional Thrill Ride • Almost from the beginning of the TV’s entry into American homes, it has been the device capable of creating the most emotional connection with any audience. • TV has always served as an emotional vehicle for advertisers, forging strong bonds with viewers so they easily recognize and are attracted to those brands and stores. • Another technology on the horizon is the TV set as a shopping platform for virtually all products, and using all the senses, including odors and touchscreen controls, to create even stronger consumer connections.

6. The TV Set and Social Media • The emotional power of TV programming has had a substantial effect on a much newer connection platform – social media. Much has been written about how the two devices have become complementary, and especially during the viewing experience. • A 2019 survey from The Diffusion Group found people viewed a variety of TV-related video on social media. They may or may not be viewing TV at the time, but the TV set was the catalyst. • “Making fun of the show, mashups and memes” was the top TV-related video content social network users viewed, at 43%; followed by “recap video/articles,” 39%; “animated GIFs,” 38%; and “behind-the-scenes footage,” 31%.

7. Smartly Connected • Connectivity to a TV set takes many forms. More than half, or 53%, of survey respondents said their “most-used” set was connected to a pay TV provider; 32%, cable; 14%, satellite; 6%, telco; and 41%, any streaming source. • According to the Hub Entertainment Research report, not only do almost half of all US households have a streaming media player, but also half again more, or 75%, said they “stream TV shows or movies to a connected TV screen.” • 31% said their “most used” TV had Smart TV capability and 45% of Smart TV households said their sets included Roku or Amazon Fire TV apps.

8. 4K Technology Is Still a Mystery to Some • Many Smart TVs also have 4K-video capabilities, but the survey revealed less than half, or 43%, of respondents said they have actually watched 4K content. • The primary reasons were unfamiliarity with the sources of 4K content (30%) and they think they don’t have access to it (22%). • Other reasons include “don’t have necessary equipment,” 20%; “standard/HD quality is sufficient,” 18%; “4K content costs more,” 15%; and “not interested in 4K programming,” 5%.

9. A Source for Much More Than Video Content • Because the TV set has had 70+ plus years for millions of households to consider theirs “like a member of the family,” it has evolved to become a 21st-century multi-media center. • It’s a top choice for all members of the family to watch breaking news, live sports and emotional dramas; stream music and video content; browse the Internet; and much more. • Among the “non-TV” Smart TV features Americans are more likely to use “streaming music or audio” was first, at 37%; followed by “cast a smartphone or tablet screen onto the TV screen,” 20%; and “browse the Web,” 18%.

10. A 21st Century Streaming Portal • According to Nielsen’s August 2019 Local Watch Report, the average adult streamed 2 hours, 4 minutes via an Internet-connected device or app/Web on a Smart TV during May 2019, an increase of 12 minutes from 2017. • More younger adults streamed than older adults: 18–34, 64%; 25–54, 65%; and 55+, 42%. Older adults tend to live in homes where OTA and traditional cable are primary viewing services, and are more likely to be non-streamers. • Despite the amount of time Americans use streaming video services, they and non-streamers still spend more time watching content on broadcast and cable TV.

11. A Greater Variety of Viewer Types • As media and content fragmentation continues to evolve so have audiences – and understanding them is critical if anyone in the wider media world expects to engage with them successfully. • For example, the average age of streamers is 50 and non-streamers 62, according to Nielsen, 44% of streamers have children compared to 28% of non-streamers and streamers’ average income is $69,400 vs. $44,800 for non-streamers. • Other types include “The FOMO Rewinder” who constantly rewinds programs not to miss any detail and The Frozen Watcher, or the classic Couch Potato, who will watch anything on TV simply to engage with it.

12. It’s Game Day! • Some may argue being at the game is the best seat in the stadium, but for millions of others, the front-row seat in their living room, a big-screen TV and the kitchen within a few feet is even better. • Because almost all TV sports are live broadcasts (97% in the New York market), the TV set is the equivalent of a ticket to the game. It is the ultimate appointment TV. • The contest on the field is not the only one, as advertising slots during any major sports broadcast are highly coveted and advertisers are willing to pay premium rates to appear there.

13. The TV Sports Viewer • Of the almost 10,000 people Graybo surveyed in the US, the UK, France, Italy, Germany, Spain and Australia for its Sports Video Trends Report 2019, 53% said they watch sports regularly and 45% said sports was their #1 TV program. • A primary reason advertisers want to be a part of many sports broadcasts is almost 50% of survey respondents were 36 to 64 years of age, a prime audience with larger incomes and more discretionary dollars than younger and much older adults. • An important insight from the Graybo survey is global viewers of TV sports are less likely to be cord-cutters – and the largest percentage (34%) prefer to watch on broadcast TV.

14. TV Technology Advances Faster Than Consumers’ Awareness • The technology of a TV set has evolved considerably from the days of the cathode-ray tube, but the technology is changing faster than many people’s ability to remain current with it. • The Hub Entertainment Research survey discovered a much larger share of respondents are familiar with the TV set in their home, Smart TVs (75%) and 4K TVs (53%) than the emerging technologies of 8K (17%) and Next Gen TVs (17%). • Consumers’ awareness has a direct bearing on their TV purchase plans. The Hub Entertainment Research survey also found 28% of respondents have much interest in 4K TV sets and 25% in sets with HDR, but only 17% in 8K TV sets.

15. Constantly Coveting a New TV • Half (50%) of all the respondents listed price as their most important purchase factor, with brand name and features only 25% each. • More than half (56%) said they intend to buy a smart TV set during the next 12 months – very likely, 24%, and somewhat likely, 32% –and 48% are very likely to buy a Samsung model. • Consumers’ are a bit less likely to purchase a 4K TV set during the next 12 months (51%) – very likely, 17%, and somewhat likely, 34% –, but Samsung is the first choice among 39% of consumers.