Do you watch online videos on your home TV set?

(Table of Contents)
▼Survey on Online Video and TV Receivers Conducted for the First Time in Two Years
▼Latest TV Models Make Online Video Viewing More Accessible
▼ "Music" on sharing platforms like YouTube, "Movies & TV Shows" on streaming services like Netflix
▼The Existence of Households with Internet-Connected TVs Who Don't Watch Online Videos
▼The trigger for watching online videos on TV: "Because someone told me I could"
▼Big screen, high definition, and relaxation. The benefits and potential of TV

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Survey on online video and TV sets conducted for the first time in two years

The emergence of various online video services and the proliferation of viewing devices like smartphones have diversified online video viewing styles.

Focusing on viewing devices, smartphones and tablets enable location-independent viewing experiences. On the other hand, television sets (hereafter referred to as TVs) offer the advantage of watching online videos on a large screen in a relaxed environment. However, this requires either connecting the TV itself to the internet or setting up streaming from other devices like PCs.

Dentsu Inc. Media Innovation Lab conducted a web survey in September 2017 targeting "people who use online video services on TV." In this survey, "online video services" refers to any of the following:

[Classification of Online Video Services]

・Subscription-based video streaming services (e.g., Hulu, Netflix – services offering unlimited viewing for a flat fee)
・Pay-per-view video streaming services (e.g., Actvila – services charging per title)
・Free video streaming services (e.g., GYAO!)
・Shared video services (e.g., YouTube, Niconico Video)

Approximately two years have passed since our previous survey in 2015 ( see Insight Memo #48 ). During this period, new online video services like "AbemaTV" have emerged. Operators promoting campaigns emphasizing "the experience of watching online videos on a large TV screen" have also appeared, indicating changes in the environment surrounding online video viewing. This column analyzes these environmental shifts based on the survey results.

Please note that this survey used a different panel from the 2015 survey, making direct comparisons with previous results difficult. The survey criteria were also set more strictly than last time, targeting "people who used online video services on their TV within the past month. "

Additionally, this time we also surveyed "people who own an internet-connected TV but do not use online video services on that TV. "

*See the end of the article for survey details.

Latest TV Models Make Online Video Viewing More Accessible

In the screening survey, 29.0% of respondents stated they "use a TV connected to the internet." Narrowing it down further, only 12.6% "used an internet video service on their internet-connected TV within the past month." This indicates that the number of people currently watching internet videos on TV cannot be considered high.

By service type, the most commonly used online video service on TV is sharing-based services like "YouTube." This is followed by paid video streaming services (including both subscription-based and pay-per-view models) like "Netflix," and then free video streaming services like "GYAO!" <Figure 1>

Figure 1: Online Video Service Usage on TV Sets

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Regarding specific service names, "YouTube" was the most used online video service on TV across all age groups. Among paid services, "Amazon Prime Video," "Hulu," and "Netflix" were popular. Respondents also mentioned relatively new services like "AbemaTV" and "DAZN."

A characteristic of people watching online video on TV is that they tend to use relatively newer TV models. Nearly half (49.6%) of respondents used a TV purchased between 2014 and 2017.

Furthermore, the most common method for connecting TVs to the internet was "direct internet connection via the TV itself" (53.1%). This likely reflects that newer TVs are designed with built-in features like Wi-Fi, making internet connectivity easier. <Figure 2>

Figure 2: Most Common TV Internet Connection Methods (Top 5)

For sharing platforms like YouTube: "Music" For streaming services like Netflix: "Movies/Dramas"

So what kind of videos are being watched on TV? <Figure 3> organizes the video genres being watched by service type.

Figure 3: Online Video Genres Viewed on TV

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First, "dramas" and "movies" are frequently watched on both paid video streaming services (subscription-based/pay-per-view) and free video streaming services.

On the other hand, the most-watched video genre on sharing-type services, represented by YouTube, was "Music. " This trend aligns with the 2015 survey results. Incidentally, in group interviews conducted the year after the 2015 survey, many respondents mentioned "continuously playing YouTube playlists created on PCs or other devices via their TV." Reasons cited included:

・Because the TV offers the best sound quality in the home
・Because they want to concentrate on other tasks on their PC or smartphone

This serves as an example of how TV usage can flexibly adapt based on the desired experience.

The existence of a segment that owns internet-connected TVs but does not watch online videos

What are the purposes for connecting TVs to the internet?

Figure 4: What are the purposes for connecting TVs to the internet?
　 ※Respondents:Those who watch online videoson their internet-connected TV

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Since this survey targeted people who watch online videos on their TVs, "To use online video services" (43.4%) was the most common reason. This was followed by "To use the TV's software updates" (32.0%) and "To use data broadcasting" (20.0%). (Multiple answers allowed)

Conversely, when the same question was asked to "people who own an internet-connected TV but do not watch online videos on it," the results were as follows.

Figure 5: What is the purpose of connecting your TV to the internet?
　 ※Respondents:Those who do not watch online videoson their internet-connected TV

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The second-ranked response is noteworthy. The fact that a significant number of people connected their TV to the internet "just as part of the initial setup process for their newly purchased TV," without having a specific purpose in mind, is an interesting point when considering the future expansion of internet-connected TVs .

The trigger for starting to watch online videos on TV was "because someone told me I could watch them"

We also asked, "What prompted you to start using online video services on your TV?" <Figure 6>

Figure 6: Triggers for starting to watch online videos on TV (Top 5)

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The top reasons cited were "I saw an advertisement or promotion from an online video service provider and learned it could be watched on TV" (27.9%), followed by "I was recommended by a salesperson when I replaced my TV" (22.2%).

Indeed, more video streaming providers are running campaigns highlighting the enjoyment of videos on large TV screens. This result can be seen as a response to such initiatives.

Conversely, what are the barriers for people who own internet-connected TVs but don't use video services on them? <Figure 7> shows the reasons for not watching online videos on TV. (Multiple answers allowed)

Figure 7: Reasons for not using online video services on TV (Top 5)

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Responses like "Other devices are more convenient," "Don't know how to do it/too much trouble," and "Think it costs money" ranked high.

Incidentally, within this group, only 14% have friends or colleagues who use online video services on their TVs. This suggests that even when home TVs are internet-connected and viewing environments are ready, people struggle to grasp the actual usage scenario and find it hard to take the first step.

Large screen, high definition, and relaxation. The benefits and potential of TV

Those who watch online videos on TV cited the following benefits:

Figure 8: What are the benefits of watching online videos on TV?

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All highly value the relaxed viewing experience, revealing TV's potential as a platform for online video consumption.

Beyond the TV's inherent features of large screen and high definition, it's reasonable to infer that this evaluation also encompasses the comfortable viewing environment surrounding the TV, such as the sofa positioned facing it in the living room.

It's easy to imagine that setting up a home wireless LAN environment or upgrading to a newer TV model lowers the barrier to watching online videos on TV. Furthermore, many people learned that "online videos can be watched on TV" through explanations from store staff when buying a new TV or through promotions by video streaming services, and then actually watched them.

On the other hand, there are also cases where information about specific viewing methods or the level of effort involved is not sufficiently communicated to viewers.

How widespread will the practice of watching online videos on TV become?

While understanding consumers' behaviors, needs, and the communication environment and device penetration within households is clearly crucial for assessing its spread, based on this survey's findings, the influence of how related businesses—such as online video distributors, TV manufacturers, and retailers—engage with consumers is also significant.

While it is unlikely that television usage will change dramatically in the short term, the "advantages of television" – offering a viewing experience entirely distinct from smartphones – are being reevaluated. This implies not only the future of online video viewing styles but also the redefinition of the television set's role as a "device for watching broadcast television." This trend warrants continuous attention.

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"Second Survey on Online Video Viewing via Television Sets" Overview
● Survey Method: Internet survey (Survey Area: Nationwide)
● Valid Sample Size: 2,531 samples (Men and women aged 15-59)
＊Series 1 = 1,200 samples
　Used online video (any of subscription-based video services, pay-per-view video services, free video services, or sharing-based video services) on a TV set within the past month
＊Series 2 = 1,331 samples
　TV set connected to the internet but no online video service used
＊Weighted back to match the occurrence rate in the screening survey (nationwide men and women aged 15–59, 22,394 samples) and the sex-age composition ratio of the 2017 Basic Resident Register
●Survey period: September 22–25, 2017
●Cooperating organization: Video Research Ltd.