New types of content will increase video consumption on non-TV devices
By: Rishi Kaul
Tags: Google, Smart Home, Virtual Reality, Smart Tv, Amazon

New types of video content (e.g. virtual reality, interactive sports, smart home footage), advancements in non-TV device video technology, and the introduction of new screen-based devices (e.g. smart displays, VR headsets) provides consumers with more flexibility and enables them to increasingly use non-TV devices for content consumption.

The confluence of high-powered computing, graphics cards, battery-efficiency, and higher-resolution/larger screens has made video performance and functionality across devices (i.e., from mobile through TV) relatively similar. Furthermore, the actual delivery (through Wi-Fi or data) of content is now tailored to most types of device and video players, optimizing video performance. This results in high-quality video becoming a commodity across screens (i.e., no longer exclusive to TVs). New device form factors have also been introduced, increasing the pool of screens available; in Ovum’s Digital Consumer Insights 2018: Media and Entertainment survey, 5% of respondents cited their ownership in a new segment: “Smart display with a digital assistant.”

Figure 1: Respondent ownership of screen-based devices*

Source: Ovum’s Digital Consumer Insights 2018. n=6,211 across Australia, Brazil, China, Germany, the UK, and the US. *Respondents were not asked about PC/laptop ownership.

Video content is becoming increasingly diverse, and not always best suited for TV viewing. Furthermore, new screen-based devices are providing better, more contextual ways to consume all types of video content, both old and new. Consumers may find camera-enabled smart displays like Amazon’s Echo Show and Google’s Nest Hub Max the ideal device to consume room-specific content (e.g. cooking videos in the kitchen), to make video calls, or check in on security webcam footage. Computers, tablets, or smartphones are already heavily used for shorter-form content (e.g. YouTube), but can also provide better, more individualized experiences in the era of interactive long-form content (e.g. Netflix’s Bandersnatch, sports). The 4% of virtual reality (VR) headset owners surveyed will find their device a viable TV alternative to consume certain types of sports content (e.g. NBA in VR).

With the commoditization of video quality across devices, consumers can give more weight to device criteria like convenience (such as portability) or software as non-TV devices (e.g. smartphones) often have better interactive capabilities. Furthermore, consumers can place a larger emphasis on the context of the content consumption experience, such as whether it’s a shared or individual experience; for example, a VR user may prefer gaming via the VR headset when alone, but prefer using a games console when in company. Some parents prefer that the family engage in a shared content experience (e.g., children’s games available on the Amazon Echo Show) rather than individualized smartphone gaming.

While TVs will remain the most important screen for home entertainment for the foreseeable future, non-TV devices will often be better suited to consume evolving and new types of content. As non-TV devices continue to provide high-quality video on big-enough screens, they will take a bigger share of the consumer content viewership pie.