Samsung Ads released its Streaming Index today, detailing metrics of 45 million devices from its U.S. smart TV footprint.
The Streaming Index, capturing streaming trends and motivations from Q4 2021, is designed to help TV app marketers gain insight into smart TV usage. Samsung Ads used data from subscription video on demand (SVOD) and ad-supported video on demand (AVOD) services to generate their statistics. Transactional video on demand (TVOD), or pay-per-view models, were excluded from the study.
The future of smart TV apps looks robust, according to index findings. 88% of respondents intend to use TV apps more or at the same level they did in 2021. Only 12% of viewers said they intend to cut back on streaming services.
Time spent streaming smart TV, on the other hand, slightly decreased from 1 hour and 54 minutes daily in Q4 2020 to 1 hour and 52 minutes in Q4 2021.
Churn rates, which count the users who have tried a TV app and not returned, remain high at 50% on average, growing across all streaming apps. 39% of viewers said they are more likely to cancel if a streaming service lacks original content, and 36% of viewers citing a lower quantity of new content compared to other services.
First-time users increased by 32% in any given month of Q4 2021. 34% of viewers said affordability was the top reason for choosing a streaming service.
User experience, low-cost service and fresh content are key for audience retention. 50% of respondents said the main reason they stick with a streaming service is if it’s easy to use. 48% of viewers are more likely to keep their subscriptions if the service frequently uploads new content.
“The challenges in the streaming app market have never been more significant, yet there are still major opportunities across every tier of the ecosystem,” said Justin Evans, global head of analytics and insights at Samsung Ads.
The smart TV market is poised to be consolidated among a small number of providers, according to Roku CEO Anthony Wood at a Morgan Stanley investment conference last week. Roku TV holds the leading number of smart TV OS market share in the U.S.
“TV app marketers have to work a lot harder than traditional broadcast companies to achieve consumer loyalty, and build brand awareness,” Evans said. “It is critical to focus equally on retention and new customer acquisition to succeed in this competitive and evolving streaming landscape.”
In 2021, Samsung Ads supported over 500 campaigns with insights, activation and measurement focused on acquiring and retaining a TV app audience.