Latest Inscape Trends Report Shows Continued Popularity Of Smart TVs

Inscape recently released its latest quarterly Trends Report comparing viewing patterns in third quarter 2023 with previous quarters. Inscape’s data comes from the more than 22 million opt-in VIZIO smart TV devices nationwide. This report specifically analyzed consumer behavior as technology continues to document the new opportunities available for viewers to connect with content. The report also quantifies the impact streaming has had on the video landscape over the past few years. Here are some of the key takeaways.

In third quarter 2023, the average number of smart TV apps being accessed was 5.4. While this figure matches the previous quarter, it is double the average number of apps used in first quarter 2022.

Inscape found the percentage of viewers who exclusively stream content has grown from 45% in fourth quarter 2021 to 54% in third quarter 2023. Conversely, the percentage only using cable/satellite/OTA television has dropped from 9% to 5% over the same time frame. Moreover, the number of viewers using both streaming content and traditional TV also declined from 46% in fourth quarter 2021 to 41% in third quarter 2023. These trends coincide with the findings from Nielsen’s monthly Gauge Report, which reports a continued increase in share of streaming viewers with the share of cable and broadcast TV viewing on a downward trend.

In third quarter 2023, 94% of total streaming time was done by viewers who only (64.6%) or mostly (29%) stream content on their smart TVs. Inscape points out the 54% of smart TV viewers that account for 65% of smart TV time spent are not being reached by those marketers allocating their ad budget to strictly traditional linear television. The data also underscores the growing importance of AVOD and FAST channels as marketing vehicles.

In an email, Ken Norcross, Vice President, Data Licensing and Strategy, VIZIO/Inscape, says, “Marketers should really take note of these (consumer) shifts. With more than half of smart TV viewers not reachable by traditional cable/satellite/OTA advertising, it reinforces the fact that brands should prioritize diversification across marketing efforts and lean into data that will give them the best decision-making ability to do so.”

With more streaming content becoming available and increased subscriber counts, Inscape reports since third quarter 2021, streaming has grown its share of viewing time in U.S. TV households by 9.4%. The sharpest year-over-year increase occurred in third quarter 2023, with an increase of 6%. Hence, since third quarter 2021, the share of viewing time with streaming has risen from 46.5% to 55.9%. Conversely, the share of time spent with cable/satellite has fallen from 44.3% to 34.9%. The remaining viewing shares were attributed to gaming and over-the-air antenna viewing which have been fairly consistent.

Although streaming is now the dominant video source in smart TV homes, there are two programming genres that are still predominant on cable/satellite/OTA homes; news (81.8%) and sports (76.7%). Inscape found in third quarter 2023 the NFL and college football games specifically, accounted for less than one-third of viewing time on streaming platforms. Also, the two Republican Party presidential debates in third quarter, garnered 77.8% of viewing time on traditional television. In all probability, the audience shares for these genres are expected to decline on traditional television as more sports and news content become available on streaming platforms.

As well documented, cord cutting in U.S. TV households has been accelerating. In third quarter 2023, Inscape reported 5.7% of U.S. households stopped viewing content on cable/satellite. Over the past year, the figure has been steadily growing. In fourth quarter 2022, 4.0% were no longer watching on cable/satellite, increasing to 4.4% in first quarter 2023 and 5.3% in second quarter 2023.

Inscape defined another trend when accessing tuning sources dubbed, “quiet quitters.” These are households that have sharply curtailed viewing on cable/satellite providers, but did not cancel their cable/satellite subscription. Inscape found in third quarter 2023 that 11.9% had cut back on their cable/satellite viewing by 75% or more compared to third quarter 2022, but did not entirely stop viewing. Additionally, 11.1% of U.S. cable/satellite households had a drop of 50-75% in their cable/satellite viewing time from third quarter 2022 to third quarter 2023.

These continuing trends has resulted in the continued audience erosion with cable television (except news and sports). Cord cutting can be expected to continue as subscribers use these services less and less and watch a greater amount of streaming content.