(Photo by Minerva Studio/Shutterfly)
September 15, 2022
Gaming and video viewing are among a wide range of media activities competing for the attention of users across a wide range of demographics. According to new data from Ampere Analysis, US consumers spend five times more time a day watching videos than playing games. However, gamers spend more money for each hour of gaming than for each hour of watching videos.
While many gamers play free games without spending, others monetize massively and frequently, propelling average consumer revenue per hour played to the top spot against competing video streaming services. This partly explains why video platforms like Netflix are turning to games to increase revenue and engagement.
Consumer spending on broadcast television – largely on access to pay TV – comes second. Subscription VOD services, which typically incur lower monthly fees than their cable and satellite counterparts, are lagging behind.
“As an individual can no longer consume anything that catches their eye, the rate at which captured minutes are monetized takes on greater importance,” principal analyst Louise Shorthouse said in a statement.
Subscribe HERE FOR FREE Media Play News Daily newsletter!
Shorthouse argues that in terms of consumer spending, games offer better returns per hour and therefore represent an opportunity for media groups looking to effectively monetize their intellectual property.
Collectively, gaming and watching videos account for about six hours of consumption time per day. The average American Internet user spends just over five hours a day watching TV and/or online videos, and just under an hour playing video games. The game is of course interactive and therefore more mentally and physically taxing than watching a video, which generally provides a more relaxing experience.
Video encompasses a wide variety of content and themes, which means it can be shaped to suit a wide range of consumers. It is ubiquitous, and increasingly accessible through short-form platforms, although the passive nature of video consumption allows other media formats to overlap.
“Over the past two years, we’ve seen daily social media usage by gamers and viewers decline by about 5%,” Shorthouse said. “This coincides with the continued growth of games as social platforms and the evolution of live streaming services such as Twitch – burgeoning social hubs that can serve the same needs.”