Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  WPP Group    WPP   JE00B8KF9B49

WPP GROUP

(WPP)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

WPP : TNS : Survey Finds Streaming Video on the Rise, Fuelling New Viewing Habits

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/23/2014 | 01:01pm EDT

With an array of online options for viewing media — not to mention the increasing amount of original content created for online audiences — video streaming services have become a disruptive influence on the traditional television business, this according to global research consultancy TNS. While consumer’s preference is still television, TV sets alone are no longer enough to satisfy the appetite for content, driving the growth of online media and video streaming services.

In ReQuest®, a quarterly study into the telecommunication behavior of over 20,000 U.S. households, TNS found that more than one-third (34%) of households have streamed video within the previous month. Yet, the majority of these streaming households also purchase traditional Subscription Video service (e.g. cable, satellite, or fiber TV) – more than one in four (26%) watch both Pay TV and streaming, compared to just one in thirteen (8%) that only watch streaming video.

Pay TV still rules, but power is eroding

Even while the conventional model of “Pay TV Only” service still represents a majority scenario (55%), it is steadily becoming less commonplace. “The allure of streaming technology is furthering the fragmentation of the consumer video market, resulting in weaker brand affiliations, reduced customer loyalties, and higher defection risks across all video distributors,” notes TNS Vice President Frank Perazzini. “Given the emerging challenges from alternative channels, the sustainability of traditional Pay TV service could be vulnerable if new pricing models offer consumers access to the content they desire at lower rates than are available today.” To defend their still-dominant position, many Pay TV providers are strengthening their offers in order to stay competitive through such enhancements as TV Everywhere and a variety of mobile apps, which seek to deliver customers a user-friendly interface for multi-platform and on-demand viewing.

Changing addresses leads to a change in allegiance

The shift toward online consumption of television has been a long time coming, thanks to the dual advances in both technology and viewership. Faster internet, more content, and more devices capable of streaming high-quality video have created a larger and still-growing audience for streaming video. Yet, one other factor driving the persistent growth of consumer experimentation with and acceptance of streaming video is this simple fact – people keep moving. That is, sooner or later, we all change addresses for one reason or another, and this often affords us the opportunity (or necessity) to try new communications providers and access types.

According to the report, TNS found the prevalence of streaming behavior is both higher and growing faster among households that moved within the past year. Half (50%) of Mover households have used streaming in the past month, compared to less than a third (32%) of Non-Mover households. Furthermore, nearly one in six Movers views only streaming video, compared to just one in fourteen Non-Movers. And, among Movers, the overall penetration of streaming (50%) now exceeds the penetration of households with only traditional Pay TV service (37%) by double digits.

“Although recent Movers comprise only about 8% of all households, there could be enduring effects on household viewing behaviors over the long term,” Perazzini states. “The considerably higher incidence of households that only view streaming video among Movers hints at streaming’s potential to supplant – rather than merely supplement – traditional cable, satellite, and fiber video consumption.” Top streaming providers like Netflix and Amazon Prime are aggressively pursuing strategies, such as innovative pricing structures and exclusive programming features, to attract existing Pay TV subscribers (commonly called cord-cutters or cord-frayers) as well as new market entrants. Although these providers’ subscription volumes have not yet reached the level of industry heavyweights like Comcast or DirecTV, it is safe to say that the expansion of streaming is already transforming the fundamental nature of the consumer video experience.

About TNS

TNS advises clients on specific growth strategies around new market entry, innovation, brand switching and customer and employee relationships, based on long-established expertise and market-leading solutions. With a presence in over 80 countries, TNS has more conversations with the world’s consumers than anyone else and understands individual human behaviours and attitudes across every cultural, economic and political region of the world.

TNS is part of Kantar, the data investment management division of WPP and one of the world's largest insight, information and consultancy groups. Please visit www.tnsglobal.com for more information.

About Kantar

Kantar is the data investment management division of WPP and one of the world's largest insight, information and consultancy groups. By connecting the diverse talents of its 12 specialist companies, the group aims to become the pre-eminent provider of compelling and inspirational insights for the global business community. Its 27,000 employees work across 100 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at every point of the consumer cycle. The group’s services are employed by over half of the Fortune Top 500 companies. For further information, please visit us at www.kantar.com.


© Business Wire 2014
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on WPP GROUP
07/19LONDON STOCK EXCHANGE : Fed signals help FTSE 100 brush off Italy woes, buyout s..
RE
07/18Publicis cuts revenue guidance after disappointing second quarter
RE
07/17Ogilvy Health's Zilligen Honored as an ELITE Award Winner by PM360
GL
07/17WPP : UK marketing spending growth flat, uncertainty reigns - survey
RE
07/13WPP : Sells Market-Research Stake
DJ
07/12WPP : Slimmed-down WPP to net $3.1 billion selling Kantar stake to Bain
RE
07/12WPP : Ad Giant WPP Sells Kantar Stake to Bain
DJ
07/12WPP : Slimmed-down WPP to net $3.1 billion selling Kantar stake to Bain
RE
07/12WPP : Proposed Sale of 60% of Kantar
BU
07/12WPP : Proposed sale of 60% of Kantar
PU
More news
Financials (GBP)
Sales 2019 15 629 M
EBIT 2019 1 916 M
Net income 2019 1 051 M
Debt 2019 4 099 M
Yield 2019 6,56%
P/E ratio 2019 11,5x
P/E ratio 2020 11,0x
EV / Sales2019 0,99x
EV / Sales2020 1,08x
Capitalization 11 433 M
Chart WPP GROUP
Duration : Period :
WPP Group Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends WPP GROUP
Short TermMid-TermLong Term
TrendsBearishBullishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 24
Average target price 1 079,44  GBp
Last Close Price 916,80  GBp
Spread / Highest target 65,8%
Spread / Average Target 17,7%
Spread / Lowest Target -21,5%
EPS Revisions
Managers
NameTitle
Mark Julian Read Chief Executive Officer & Executive Director
Roberto Quarta Non-Executive Chairman
Andrew Grant Balfour Scott Chief Operating Officer
Paul W. G. Richardson Executive Director & Group Finance Director
Stephan Pretorius Chief Technology Officer
Sector and Competitors
1st jan.Capitalization (M$)
WPP GROUP8.29%14 294
OMNICOM GROUP11.07%17 350
PUBLICIS GROUPE-11.74%11 530
INTERPUBLIC GROUP10.52%8 824
JCDECAUX5.30%6 166
HAKUHODO DY HOLDINGS INCORPORATED11.27%5 915