Streaming Surges On, But Smart TV App Usage Plateaus

Streaming continued to capture a higher share of TV viewing time than cable, satellite or over-the-air antenna at the end of last year, according to Inscape’s recently-released Q4 2023 TV Market Trends report. The analysis, which looked at consumer behavior across the last quarter of 2023 compared to previous years, revealed that streaming’s share of viewing time has increased from 49.3% to 57.5% in Q4 since 2021, while cable/satellite has fallen from 41.5% to 33.8%. 

While the above is not exactly shocking — streaming has been eating away at traditional viewing methods for a while now — Inscape’s report also surfaces a notable trend: Smart TV app usage has leveled off over the last nine months, landing at around 5.5 native apps used per device. Inscape notes that this is “perhaps a sign to the market that consumers have had their fill and are simply fatigued by an endless array of subscriptions and authentications to navigate.” 

This data supports the strategic value on display as media companies start to consolidate holdings. HBO was ahead of the game, combining HBO Max and Discovery+ into Max last year, while Disney is in the process of merging Hulu and Disney+ into a “one-app experience.” While not exactly apples to apples, Paramount is also dipping its toe into the water by renaming both its streaming app and the Showtime cable channel as “Paramount+ With Showtime” — a marketing move likely to try and spark more streaming signups.  

Consider the above, and six apps have just been made into three. This is a positive sign for consumers, currently crushed under myriad entertainment options, because one less app to find is only a good thing. 

TVREV’s Alan Wolk has written extensively about the “great rebundling,” albeit from a lens of promoting ad-support tiers, while Magnite’s SVP, Platform Revenue Mike Laband noted in his predictions for 2024 the desire for simplicity in a medium that has grown increasingly complex, with “an overwhelming number of streaming apps, presenting consumers with an array of options and decisions - perhaps too much when they want to lean back and relax. “

So the great rebundling may not just be about MVPDs teaming up with streamers to offer deals on ad-supported tiers, but about the things themselves that consumers must use to get what they want: The app on the smart TV. 

You can download Inscape’s full Q4 2023 TV Market Trends Report here.