HAMPSHIRE, UK – By 2017, two billion mobile and tablet users worldwide will watch TV and video primarily on their devices, according to a new report from Juniper Research. Though Western Europe will lead the trend, the U.S. will not lag far behind — and increasing uptake in developing regions will account for a surprisingly large share of the rise.
Report author Siân Rowlands attributes the growing user base to increased distribution of short, easily shared video clips and rapidly expanding global availability of connected devices with faster processors and bigger, better displays.
According to Rowlands, mobile users — particularly younger users — increasingly consider their mobile devices to be their primary screen. Although older users continue to view migration to mobile as “cutting the cord,” younger users never had a cord to cut. For many of them, a mobile device was their first connected device. That youth demographic — for whom sharing content via handsets or tablets is intuitive, rather than learned — is driving a seamless integration of streaming services and social networks.
Consequently, streaming providers like Netflix, Hulu and YouTube have achieved cross-demographic success by providing truly multi-screen experiences. The move has unsettled the pay-TV industry somewhat, as consumers have cancelled pay-TV subscriptions in favor of easier — and in some cases less expensive — access whenever and wherever they want to watch. Pay-TV providers only recently began fighting back with multi-platform strategies of their own.
“We are now seeing companies such as YouTube trialing paid channels to get a slice of the marketplace,” Rowlands said. “This will have incredible repercussions throughout the mobile space given YouTube comes preinstalled on an immense number of devices and the Android platform’s billing options.”
YouTube, of course, is owned by Google, which also developed the Android operating system. Android has been the world’s most popular mobile OS since overtaking Apple’s iOS in May 2012. In terms of consumer adoption, Android now far outperforms any competitor, according to StatCounter.
Rowlands’ report indicates another area likely to accelerate growth: the rate at which mobile devices are improving, especially in developing regions. Although feature phones continue to reign, better-quality displays and faster processors mean watching mobile TV and video on a smartphone is no longer a cumbersome experience. Furthermore, in many developing regions, fixed broadband penetration remains very low, whereas wireless networks have become almost ubiquitous. The two factors combine to make handsets the only way to access video content in some regions.
Rowlands’ complete report, “Mobile TV & Video — Cutting the Cord” is available on Juniper’s website.
