Consumption
Media Execs See OTT Video as Supplementing – Not Replacing – Pay TV
Media industry executives feel that over-the-top (OTT) video services such as Netflix are more likely to lead to cord-shaving than cord-cutting behavior, according to [download page] a recent report from StreamingMedia.com. Among the 758 executives surveyed, 51% said they believe that consumers are responding to the emergence of pure OTT video services by cutting back on their pay-TV channel packages and supplementing them with OTT content. By comparison, 23% feel that consumers are responding by canceling their traditional pay-TV subscriptions in favor of OTT video.
Netflix subscribers themselves appear to hew more closely to the former view, at least when it comes to content consumption. Last year, a GfK study found Netflix users saying that their regular TV content consumption was unaffected by their subscription. In a more recent study, GfK discovered that a majority of Netflix users said that they watch less premium cable as a result of their subscription.
Interestingly, the StreamingMedia.com study finds that pay-TV operators are far less likely to believe that consumers will cut the cord due to the emergence of OTT video. Just 5% of pay-TV operators responding to the survey believe that’s the case, compared to 22% of technology vendors and 25% of content providers. Instead, pay-TV operators are more likely to believe that consumers are responding to OTT video by cutting back on channel packages.
drag2share: Why The $130 Billion Deal For Verizon Wireless Is Key To Verizon’s Fight For The Future Of Mobile And Media
Data revenues: Another way to drive revenue growth is to encourage customers to consume large amounts of wireless data, by playing games and watching videos, and paying for it on their mobile bills. Telecommunications’ future will be won by the company that can foster a new culture of heavy data consumption and build the best 4G infrastructure to support it. It’s an expensive, risky game. Only the largest, most disciplined companies will win it.drag2share: How Tablets Are Driving A Huge Explosion In Mobile Video
Mobile video has begun to accumulate scale, and has also turned out to be one of the few types of mobile content — along with games — that monetizes reliably and drives premium ad rates.
That’s reflected in the much higher prices that mobile publishers can command for mobile video ads, compared to standard mobile formats like banners. eMarketer estimates mobile video will account for $520 million in ad spending in the U.S. this year, or 13% of the digital video ad market.
In a recent report, BI Intelligence breaks down the mobile video ecosystem, analyzing the behavior and devices behind the growth in consumption, and examining the demographics and behavior of mobile video consumers.
We specifically detail how mobile video monetization is booming, and look at the new video ecosystem that is taki! ng shape , with tablets — rather than television — at the center.
Access The Full Report And Data By Signing Up For A Free Trial Today >>
Take look at this chart from our report:
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Here are some additional key points about tablet video habits:
- Video is one of the main reasons people use tablets: Two video-related activities — playing videos and sharing them — are among the top ten favorite things to do for tablet users. For smartphone users, neither activity cracks the top-10 list.
- Tablet owners are far more likely than the average U.S. consumer: to disconnect their pay TV subscriptions: and! use alt ernative streaming and download services like Hulu, Apple TV, iTunes, Netflix, and Google TV.
- Tablet users tend to have higher conversion rates than those on smartphones. This has already been borne out in the context of search ads and e-commerce, and the touchable surfaces and larger screens suggest that tablet video ads would enjoy the same benefit.
- Among younger viewers in the U.S., millennials aged 14 to 23: tablets are nearly as popular for watching TV shows as Blu-rays or DVDs. Twenty-five percent of respondents in this age group say they watch TV shows on tablets everyday or weekly, compared to 24 percent who do so on DVD or Blu-ray,
drag2share: Users Dont Pay to Download They Just Stream
Paying to download: End of an era?
The advent of the iPod, and with it iTunes, is generally credited with ushering in a new era of music consumption, as well as pulling the music industry out of its Napster-induced tailspin.
But our survey suggests that era may already be waning: the majority of BI’ers say they hardly ever, or never, pay to download music anymore.
More News Reading Goes Mobile – eMarketer
source: http://www.emarketer.com/Article/More-News-Reading-Goes-Mobile/1010123
More than one in 10 print news subscribers to cancel their subscription in the next year
A substantial percentage of smartphone and tablet users consumed news on their devices in Q1 2013, according to polling by the Donald W. Reynolds Journalism Institute. The 35-to-44 age group showed the highest incidence of reading news on their smartphones, at 73% of users. But penetration rates for every other adult age group except those 65 and older were above 60%. Among the oldest smartphone users, the small screen size seemed to turn them off to news consumption; only 35% read the news on their phone.
Among tablet users, the figures were similar, with the percentage between 25 to 64 years old reading news on the devices hovering around 67%. Interestingly, those 65 and over were much more likely to read on the tablet compared with the smartphone, at 59%; bigger font seems to translate to older readership.
Netflix Users Say They’re Watching Less Premium Cable
Subscription streaming service viewing may be eroding consumption of premium cable channels such as HBO and Starz, according to details from a new report released by GfK. The report asked users of Netflix, Hulu Plus and Amazon who previously used premium cable channel or pay-TV service video-on-demand (VOD) services if their consumption of those services had declined as a result of their subscriptions.Americans Are Watching More Online Video Ads Than Ever Before
Americans’ consumption of online video ads has been on a record-breaking tear over the past couple of months, per comScore Video Metrix data. In June, online video ad views reached a new peak of 20.1 billion, a dramatic 27% jump from the previous high of 15.8 billion just a month earlier, and making April’s record of 13.3 billion views seem like a distant memory. So what’s fueling all these extra ad views? Surprisingly, online video ad reach has grown only incrementally. Instead, the growth in views is almost all the result of a big increase in the number of ads each viewer is seeing.
drag2share: CHART: How Tablets Are Driving A Huge Explosion In Mobile Video
Mobile video has begun to accumulate scale, and has also turned out to be one of the few types of mobile content — along with games — that monetizes reliably and drives premium ad rates.
That’s reflected in the much higher prices that mobile publishers can command for mobile video ads, compared to standard mobile formats like banners. eMarketer estimates mobile video will account for $520 million in ad spending in the U.S. this year, or 13% of the digital video ad market.
In a recent report, BI Intelligence breaks down the mobile video ecosystem, analyzing the behavior and devices behind the growth in consumption, and examining the demographics and behavior of mobile video consumers.
We specifically detail how mobile video monetization is booming, and look at the new video ecosystem that is taki! ng shape , with tablets — rather than television — at the center.
Access The Full Report And Data By Signing Up For A Free Trial Today >>
Take look at this chart from our report:
Here are some additional key points about tablet video habits:
- Video is one of the main reasons people use tablets: Two video-related activities — playing videos and sharing them — are among the top ten favorite things to do for tablet users. For smartphone users, neither activity cracks the top-10 list.
- Tablet owners are far more likely than the average U.S. consumer: to disconnect their pay TV subscriptions: and! use alt ernative streaming and download services like Hulu, Apple TV, iTunes, Netflix, and Google TV.
- Tablet users tend to have higher conversion rates than those on smartphones. This has already been borne out in the context of search ads and e-commerce, and the touchable surfaces and larger screens suggest that tablet video ads would enjoy the same benefit.
- Among younger viewers in the U.S., millennials aged 14 to 23: tablets are nearly as popular for watching TV shows as Blu-rays or DVDs. Twenty-five percent of respondents in this age group say they watch TV shows on tablets everyday or weekly, compared to 24 percent who do so on DVD or Blu-ray,
Cost Drives Cord-Cutting; Content Dulls The Knife
A recent study [pdf] commissioned by pivot concerning Millennial’s consumption of TV content suggests that viewers stick with pay-TV or considering returning to a subscription because of an affinity for their favorite shows, while cost is a major driver of cord-cutting intent. The study, conducted by Beagle Insight and Miner & Co. Studio looked at 4 segments of TV viewers whose attitudes could signal future trends in pay-TV subscription intent.How Tablets Are Driving A Huge Explosion In Mobile Video
Source: http://www.businessinsider.com/tablets-driving-explosion-mobile-video-2013-6
Mobile video has begun to accumulate scale, and has also turned out to be one of the few types of mobile content — along with games — that monetizes reliably and drives premium ad rates.
That’s reflected in the much higher prices that mobile publishers can command for mobile video ads, compared to standard mobile formats like banners. eMarketer estimates mobile video will account for $520 million in ad spending in the U.S. this year, or 13% of the digital video ad market.
In a recent report, BI Intelligence breaks down the mobile video ecosystem, analyzing the behavior and devices behind the growth in consumption, and examining the demographics and behavior of mobile video consumers.
We specifically detail how mobile video monetization is booming, and look at the new video ecosystem that is taking shape, with tablets — rather than television — at the center.
Access The Full Report And Data By Signing Up For A Free Trial Today >>
Take look at this chart from our report:
.png)
Here are some additional key points about tablet video habits:
- Video is one of the main reasons people use tablets: Two video-related activities — playing videos and sharing them — are among the top ten favorite things to do for tablet users. For smartphone users, neither activity cracks the top-10 list.
- Tablet owners are far more likely than the average U.S. consumer: to disconnect their pay TV subscriptions: and use alternative streaming and download services like Hulu, Apple TV, iTunes, Netflix, and Google TV.
- Tablet users tend to have higher conversion rates than those on smartphones. This has already been borne out in the context of search ads and e-commerce, and the touchable surfaces and larger screens suggest that tablet video ads would enjoy the same benefit.
- Among younger viewers in the U.S., millennials aged 14 to 23: tablets are nearly as popular for watching TV shows as Blu-rays or DVDs. Twenty-five percent of respondents in this age group say they watch TV shows on tablets everyday or weekly, compared to 24 percent who do so on DVD or Blu-ray,
Digital Consigliere
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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