Survey: Consumers Now Prefer Streaming vs Live TV

What do the survey's results mean for the future of television?

Story by Matt Cummings

Ours is a world driven by technology. From smart devices to web apps, technology has affected the way we live every minute of our lives. And according to a new survey, it's affecting the way people consume entertainment.

According to The Deloitte Digital Democracy Survey, US consumers are now more willing to watch streaming entertainment than tune in to it via live TV. The ninth annual results were published by the consulting firm Deloitte, who sampled 2,076 US consumers from Nov. 3-19, 2014. Here is just some of the landmark data:

Services such as Netflix, who now have subscribers in approximately 42% of American households, have overtaken live television as the most preferred way to watch programming. More people now stream movies (56%) and television (53%), eclipsing those who still prefer to watch live television (45%).

Consumers 14-25 - dubbed the "Trailing Millenials" by Deloitte - find better value with Internet-video services (72%) than cable or satellite TV (58%).

Generation X-ers (32-48) still believe satellite TV is worth more, with 80% choosing it over streaming (47%). Baby Boomers preferred pay-television (89%) while only 43% cited a preference for streaming.

Younger viewers prefer to watch TV shows on mobile devices, tablets, and PCs, with 57% of these "Trailing Millennials" choosing those services.

Among the most interesting items from the report released Wednesday: most viewers prefer binge-watching (defined as watching three or more episodes in one sitting). Approximately 67% said they engage in some sort of multiple viewings, with 31% doing it at least once per week.

So what does this mean for the future of live television? In the short term, probably not much as networks grapple with reducing the size of their seasons to make them more competitive with pay stations. Not that this is a good thing, as networks could see further erosion of their profits from audiences being able to fast-forward commercials. The real change will happen down the road, as networks will have to ask some very fundamental questions about their audiences: Should they end live broadcasts? Can we force audiences to listen and view commercials when streaming? Is it time to add a pay service to network television?

The answers here are clear: no, no, and no. Deloitte still shows that Baby Boomers and older adults still prefer live television, meaning those services shouldn't and probably can't end as someone like CBS claims many of them as their core audience. And unless HD television builders like Sony and Samsung agree to remove the MUTE button on their sets, it's unlikely that any service could or should try to force audiences to listen to ads. Finally, too many retirees and consumers on the lower end rely on network television for news and information.

So what happens when network television is faced with such hurdles? Simple: make better programming to bring pay audiences back to the fold. Network television needs to take bold chances with their shows, creating 'Must See' events and entire evenings. Better shows mean more viewers watching them. Live sports is another way to keep bums in seats, but those ads need to cater as close to their intended audience as possible. The answers aren't so clear when considering whether stations should offer free streaming of their shows through Hulu or their own sites. Network television will have to decide if their future is in streaming, or will they force audiences back to DVR's and live programs.

One other item of note: the study also revealed that a stunning 90% of audiences multi-task when watching television, engaging in various activities like reading email, surfing the Internet, and text messaging. That's problematic for advertisers who need their ads to reach their intended target. With the ability to walk away from programs, can network television ever guarantee that advertisers are getting their money's worth? With so many great shows on network television and many critics claiming that we're in a renaissance, it will be interesting to see if the 2016 Digital Democracy Survey changes any of the criticism that television is dead but they just don't know it.

NEXT: DAVID DUCHOVNY THINKS BROADCAST TV NEEDS SHORTER SEASONS.

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