TV Everywhere Research
A summary of research findings regarding TV Everywhere from
various sources
Compiled August, 2015 by CTAM
1
TV Everywhere
Contents
THE UNIVERSE OF TVE USERS ....................................................................................................................... 2
How large is it overall? .............................................................................................................................. 2
Use by network? ....................................................................................................................................... 4
Use in home vs. out of home? .................................................................................................................. 8
Growth/trends of unique users? .............................................................................................................. 8
Profile of the TVE User vs. Non-User? ...................................................................................................... 9
BEHAVIOR ................................................................................................................................................... 13
Frequency ............................................................................................................................................... 13
What has the frequency of use been over time? ................................................................................... 14
How has usage of live stream vs. on demand changed over time? ........................................................ 15
What percentage of time is spent, by demo, streaming content by device? ......................................... 15
What does streaming of older, library content look like vs. episodes from current seasons? .............. 16
How is viewership of short- and long-form content changing? ............................................................. 16
What are the demos of streamers of different content, on different devices? ..................................... 16
What does usage look like by device? .................................................................................................... 17
What does usage look like in terms of time of day and content? .......................................................... 21
Do users prefer MVPD-aggregated services or network services? ......................................................... 22
ISSUES & OPPORTUNITIES........................................................................................................................... 24
What percentage of consumers could use TVE but aren’t? Why not? .................................................. 24
What do we know about the authentication process? .......................................................................... 28
How does TVE fit in with other viewing platforms, what occasions drive usage? ................................. 30
Is TVE being used in place of other platforms or in addition? ................................................................ 34
To what extent does password sharing occur? ...................................................................................... 35
Is TVE driving eyeballs back to linear? .................................................................................................... 35
PERCEPTIONS, SATISFACTION & EXPECTATIONS ........................................................................................ 35
What is the consumer perception of TV Everywhere? ........................................................................... 35
What do we know about satisfaction? ................................................................................................... 38
What do viewers want or expect? .......................................................................................................... 39
2
TV Everywhere
ADVERTISER VALUE & MONETIZATION ...................................................................................................... 42
What’s the incremental value of TVE content to the advertiser? .......................................................... 42
What do drop off rates at varying ad loads look like? ............................................................................ 46
Metrics of digital video monetization ..................................................................................................... 46
THE UNIVERSE OF TVE USERS
How large is it overall?
86% of the total U.S. Internet population watches online video.1
Reported actual numbers and share of viewers using TV Everywhere vary across sources.
Adobe reports that on average, 13 million household viewers tuned in to TVE services in 2014; up 116%
from 6 million in 2013. 12.5% of Pay-TV subscribers actively viewed TV Everywhere content in Q4
2014; up 184% since Q1 2013 (Fig. 1).2
(Fig. 1)
In 2014, Parks Associates estimated that there were 27 million North American TV Everywhere users,
and projected this number to grow to nearly 64 million by 2018 (Fig. 2).3
1
ComScore Presentation: The Future of TV is Total Video, November 2014. Manish Bhatia, Chief Revenue Officer,
comScore
2
U.S. Digital Video Benchmark: Adobe Digital Index 2014 Annual Report
3
TV Everywhere
(Fig. 2)
Hub Research found that by June, 2015, 44% of cable subscribers use TVE at least once a month (Fig.
3).4
(Fig. 3)
3
4
Parks Associates TV Everywhere 2.0: The Next Steps in Multiscreen, March 2014
Hub Research, CTAM TV Everywhere Wave Four Report, Among P18-64, July 2015
4
TV Everywhere
Per Parks Associates, of those subscribers aware of TV Everywhere services from their pay-TV
provider, 77% claim to use the TV Everywhere service, a 19% increase from 2012.5
Early 2015 research commissioned by natpe/CEA identified 71% of the U.S. population A13-54 (with
high-speed Internet access) are “TV Streamers” overall.6
Use by network?
Hub Research reported for June, 2015 that TVE viewing of basic cable networks remained widely
distributed across networks (Fig. 4). Expansion of the networks surveyed in this wave of the study
revealed highest penetration for History Channel and Food Network (Fig. 5), as well as AMC (Fig. 4).
Watch ESPN remains the most mentioned sports TVE app, with Fox Sports Go on its heels (Fig. 6) and
HBO Go the most widely mentioned premium source (Fig. 7).7
(Fig. 4)
5
Parks Associates TV Everywhere 2.0: The Next Steps in Multiscreen, March 2014
NATPE/CEA Consumer Choice in a Dynamic TV Landscape, November 2015
7
Hub Research, CTAM TV Everywhere Wave Four Report, Among P18-64, July 2015
6
5
TV Everywhere
(Fig . 5)
(Fig. 6)
6
TV Everywhere
(Fig.7)
Use of non-authenticated broadcast sites and apps continues to fall, per Hub Research (Fig. 8).8
(Fig. 8)
8
Hub Research, CTAM TV Everywhere Wave Four Report, Among P18-64, July 2015
7
TV Everywhere
A study commissioned by Discovery Networks and conducted among P18+ also found a similarly wide
distribution of monthly/+ viewing across sources (Fig. 9).9
Q5A. How frequently do you watch full episodes on each of these ... sites or apps? (% Monthly+)
Total 18+ Pay TV Sub 18+
Base:
1411
1171
Netflix
32%
29%
YouTube
17%
16%
ABC
12%
12%
CBS
11%
11%
Hulu
11%
9%
Amazon Instant Video
11%
10%
NBC
9%
9%
HBO Go
9%
9%
FOX
9%
8%
Cable or satellite provider's site or app
9%
9%
Hulu Plus
8%
7%
TBS
7%
8%
ABC Family
6%
7%
A&E
6%
7%
USA
6%
7%
TNT
6%
7%
Comedy Central
6%
6%
AMC
6%
7%
History Channel
6%
6%
ESPN
5%
6%
Discovery Channel
5%
6%
PBS
5%
5%
FX
5%
5%
TLC
5%
5%
Syfy
5%
5%
Lifetime
4%
5%
The CW
4%
4%
MTV
4%
4%
Showtime Anytime
4%
4%
Crackle
4%
3%
Nickelodeon
3%
4%
Animal Planet
3%
4%
Spike TV
3%
3%
Bravo
3%
3%
Starz Play
3%
3%
E!
2%
3%
Max Go (Cinemax)
2%
3%
BET
2%
2%
Encore Play
2%
3%
VH1
2%
2%
Univision
1%
1%
9
Discovery Media Consumption Study, December 2014
(Fig. 9)
8
TV Everywhere
Use in home vs. out of home?
The Diffusion Groups’s Senior Analyst Joel Espelien notes that, ironically, mobile video is primarily
about in-home viewing, rather than viewing while on the go. “According to February 2015 research,
close to 80% of tablet viewing and 50% of smartphone viewing takes place in the home. It’s less about
‘mobile’ viewing as commonly imagined and more about the individualization and personalization of TV
itself.” 10
Similar, Hub Research found that 78% of viewers were at home the last time they watched TV on a
tablet, and that 69% reported, “My most recent viewing session on a mobile app was inside home”.11
Of note, certain types of viewers are more likely than others to associate TV Everywhere specifically with
out of home viewing. While 14% of the base surveyed agreed that “Watching TV shows and movies
from your TV service when you’re at another location (someone else’s home, airport, hotel, etc.) came
closest to their understanding of “TV Everywhere”, 21% of Amazon Prime and Roku users agreed with
this description. And, not surprisingly,19% of those who watch on a phone were more likely than the
base (14%) to describe TVE as “Watching TV shows and movies from your provider outside your home”,
as were 22% of Apple TV users.12
The average number of devices used to watch TV online in 2014 was 2.7, vs. 2.3 in 2013. Mobile devices
like tablets are increasingly being used as devices for viewing at home. “The last time you watched on a
tablet were you…”: At Home 78%, Away from home 22%. (Base: have watched TV on computer, tablet
or smartphone).13
Growth/trends of unique users?
According to new research from TDG, mobile video viewing on smartphones and tablets will
experience strong growth over the next decade (2015-2025), taking share from both legacy TV and PCbased broadband video viewing. By 2025, mobile video will account for more than 20% of total video
viewing minutes among US consumers (including legacy TV).
“The concept of ‘watching television’ is being redefined,” notes TDG’s Senior Analyst Joel Espelien,
“transforming from a social medium characterized by groups of viewers sitting in front of the living
room television, to an individual medium defined by solitary viewers watching programs on smaller,
more personal devices such as tablets and smartphones.” Importantly, this transformation represents
10
TDG Press Release: TV Gets Personal: Mobile Video to Account for 20% of Total Viewing by 2025; March 4, 2015;
www.tdgresearch.com
11
Hub Research 2015: What’s TV Worth Study; April 2015
12
Hub Research 2015: What’s TV Worth Study; April 2015
13
Hub Research 2015: What’s TV Worth Study; April 2015
9
TV Everywhere
the replacement of mass-market broadcasting by personalized video apps, some of which are already
generating half of their total video traffic from such devices.14
FreeWheel’s take on the strong growth of video ad viewing during 2014 is that viewers finding new
ways to watch their favorite “ultra-premium content” are expanding the TV ecosystem. To wit:





Live viewing grew 297% year-over-year, driven by strong growth in Sports streaming and News
simulcasts
First-run broadcast shows attracted far more viewers in Q4 2014 than in the year prior (67 %
increase in digital video ad views)
Over-the-top (OTT) streaming devices, overwhelmingly used for long-form and live viewing,
overtook tablets, accounting for 8% of all video ad views
Viewers are accessing current season content throughout the television season. 64% of
viewing occurred over a week after that content’s original air date.
Authenticated viewing grew 591% year-over-year, as 56% of all video ad views on long-form
and live content now come from behind authentication walls.15
Profile of the TVE User vs. Non-User?
Viacom identifies two groups of viewers:


Authenticators complete authentication as pay TV subscribers. They are early adopters –21% of
authenticators started using TVE because they like to be the first to try new things.
Digerati watch shows on apps and sites but don’t authenticate.16
Parks Associates has identified seven viewer segments which are based on time spent consuming
video and display platforms used (table below, Fig. 10).17
Avid Viewers
Traditionalists
Above average consumption of video across all
devices.
Relatively higher levels of education.
Relatively younger.
More than 50% have children.
More than 90% are pay-tv subscribers.
High video spending.
Enjoy staying on top of technologies and like
owning the latest devices.
Don’t worry about saving money and getting the
best value as much as other segments.
Above average video consumption on the TV.
Below average on all other devices.
Relatively higher levels of education.
Less likely to have children in the home.
Do not often watch TV with others.
Likely to follow a particular series on TV and to
watch at the time of broadcast.
High spending on triple play bundles and access
services.
High use of premium Pay-TV features.
Relatively older.
14
TDG Press Release: TV Gets Personal: Mobile Video to Account for 20% of Total Viewing by 2025; March 4, 2015;
www.tdgresearch.
15
FreeWheel Video Monetization Report, Q4 2014FreeWheel Video Monetization Report, Q4 2014
16
Viacom Strategic Insights & Research, TV, Here, There, (Not Quite) Everywhere, 2014
17
Parks Associates Digital Media: Q3 Market Focus: The Death of Linear TV?, Q3 2014
10
TV Everywhere
Travelers
Rooted Viewers
Above average video consumption on mobile
devices.
Relatively younger.
High percentage of females.
More than 50% have children. Children heavily
influence spending and viewing in the home.
Use mobile devices while watching TV.
Relatively low spend on triple-play bundles, but
high spend on broadband and mobile services.
Above average video consumption on large
screen devices (TVs and computers). Below
average on mobile.
Relatively lower income.
Relatively lower levels of education.
Value-conscious. Low spending on TV, but
moderate overall video spending.
High use of VOD.
Others in the household rarely influence video
spending.
Multiscreeners
Purists
Above average video consumption on computer
and mobile devices. Below average on TV.
Relatively younger. Less likely to be married than
other groups.
Relatively lower income. Lower rate of home
ownership and higher rate of apartment dwelling
than other groups.
Lowest likelihood to have a pay-TV subscription.
Relatively low ARPU for triple play services or
standalone broadband / TV services.
High overall spending on video, including paid
VOD.
Higher than average TV Everywhere awareness.
Feel that online video is just as good as Pay-TV.
Exclusively watch video on a television.
Relatively older.
Less likely than other groups to have children at
home.
More than 90% are Pay-TV subscribers.
Lower overall video spending, but high ARPU for
standalone TV services.
Among groups, most likely to be married and
most likely to own a home.
Do everything they can to save money and get
the best value when purchasing anything.
Light Users
Below average video consumption across all devices.
Among groups, highest triple-play bundle ARPU.
Low overall video spending.
Lowest use among groups of all premium pay-TV services.
More likely than other groups to watch TV programs when broadcast but do not necessarily follow a
particular series.
Less open to technology as a way to save time.
Less likely to pay more for convenience.
18
Source:
(Fig. 10)
One distinguishing characteristic of Multiscreeners is a heavy reliance on computers as a viewing
platform. Computers account for 64% of Internet video consumed by this group, as well as a majority
of all video consumed by this group.19
18
19
Parks Associates Digital Media: Q3 Market Focus: The Death of Linear TV?, Q3 2014
Parks Associates Digital Media: Q3 Market Focus: The Death of Linear TV?, Q3 2014
11
TV Everywhere
TV Everywhere users have several characteristics that set them apart from average pay-TV
subscribers, including:





Younger age (on average, seven years younger)
More likely to have children at home
A higher rate of connected device ownership
Higher monthly ARPU
Higher spending on all types of video (Fig. 11, Fig. 12)20
(Fig. 11)
(Fig. 12)
Parks Associates reveals that TVE use is inversely proportional to age (Fig. 13)21, and further determined
that TV Everywhere users are more likely than average subscribers to have downgraded their pay-TV
package in the past year to a lower cost option, so called cord-shaving or cord-trimming. However, the
higher overall ARPU for TV Everywhere users suggest that these subscribers either make up for their
20
Parks Associates TV Everywhere 2.0: The Next Steps in Multiscreen, March 2014
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
21
12
TV Everywhere
lower-priced TV package with a higher priced broadband package or that they still have more
premium video services than average subscribers, even after a downgrade.22
(Fig. 13)
Hub Research has identified a preference for mobility as an important characteristic of TV Everywhere
users. They are more likely to use a portable device for email than an average subscriber, twice as
likely to update Facebook with a tablet, and 50% more likely to catch up on news and blogs via
smartphone. TVE use is higher among premium channel subscribers and Smart TV owners.23
Demographic differences are less dramatic, although use is stronger among males and Millennials, and
data from Hub Research suggests that men will be more attracted to messages touting TVE as an
exclusive benefit (Fig. 14).24
22
Parks Associates TV Everywhere 2.0: The Next Steps in Multiscreen, March 2014
Hub Research 2015: What’s TV Worth Study; April 2015
24
Hub Research 2015: What’s TV Worth Study; April 2015
23
13
TV Everywhere
(Fig. 14)
BEHAVIOR
Frequency
According to Hub Research, heavy TVE users – those MVPD subscribers who say that they access TV
content that requires MVPD authentication “daily or several times a week”- have grown from 15% to
23% in the six months between the waves collected in January and June, 2015 (Fig. 15).25
25
Hub Research, CTAM TV Everywhere Wave Four Report, Among P18-64, July 2015
14
TV Everywhere
(Fig. 15)
What has the frequency of use been over time?
Parks Associates reported in 2013 that roughly one-half of those that report having TV Everywhere
service used it on a monthly basis, and that most pay-TV subscribers who reported successfully using
online video that requires authentication also reported doing so with some level of frequency—13%
watched authenticated video at least monthly.26
Parks Associates also observed in 2013 that 21% report watching video on websites that require
verification several times a week or daily (sum of “daily/almost daily” – 8% and “1-3 times a week” –
13%).27
Adobe observed in the U.S. Digital Video 2014 Inaugural 2014 report that the frequency with which
viewers are logging in and engaging with premium subscription gated content is growing rapidly, driving
TV Everywhere to become more mainstream. TV Everywhere average active quarterly viewers grew
from 6% to 13% year over year.28 Most recently, Adobe has observed that active monthly household
viewership was up 6% quarter over quarter in 1Q 2015, rising to 13.2% of HH’s.29
26
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
27
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
28
Adobe U.S. Digital Video 2014 Inaugural Report, Adobe Digital Index
29
Adobe Q1 2015 Digital Video Report, Adobe Digital Index
15
TV Everywhere
According to data collected for natpe/CEA, 52% report viewing full-length TV programs or series on
network websites once a week or more often, and 51% report using official apps with this frequency.30
How has usage of live stream vs. on demand changed over time?
Linear video (vs. non-linear video) accounted for roughly one-fifth (19%) of the video consumed on
smartphones in 2014, down from 25% in 2012.31 Although smartphone live viewing is down, delayed
viewing is on the rise.32
Live sports have been deployed as a “gateway drug”, hooking new adopters and indoctrinating digital
viewing habits. Live events are also more likely than other digital video content to be viewed across
device platforms and are used as an entry point for TV Everywhere offerings.33
During 2014, each successive quarter brought record volumes of live streaming, culminating with a
297% annual growth rate. Strong volumes seen in Q2 and Q3, largely propelled by the World Cup, were
eclipsed by events such as the College Football Bowl Season in Q4, as 23% of Programmer ad views
were on live content and 83% of live ad views came from Sports.34
What percentage of time is spent, by demo, streaming content by device?
Those A18-34 and digital video subscribers are most likely to time-shift their TV viewing, per comScore
findings (Fig. 16).35
(Fig. 16)
30
NATPE/CEA Consumer Choice in a Dynamic TV Landscape, November 2015
Parks Associates Digital Media: Q3 Market Focus: The Death of Linear TV?, Q3 2014
32
Nielsen: SVOD Services in 41% of U.S. Homes, 3/11/2015 9:00 AM Eastern, Jon Lafayette, Broadcasting & Cable
33
FreeWheel Video Monetization Report, Q4 2014
34
FreeWheel Video Monetization Report, Q4 2014
35
comScore Presentation: The Future of TV is Total Video, November 2014. Manish Bhatia, Chief Revenue Officer,
comScore
31
16
TV Everywhere
Further, 82% of those A18-34 report using a second screen device while watching TV programming on
a TV set at the same time (42% “frequently” and 40% “Occasionally”). This figure is 70% overall, and
drops with age, to 57% for A50-64.36
What does streaming of older, library content look like vs. episodes from
current seasons?
FreeWheel first reported on relative age of content being viewed for Q4 2014. Video ad views of
Broadcast show current seasons grew 67% during 2014. While most Broadcast networks saw Fall TV
ratings drop or remain stagnant in 2014, the fact that digital viewing spiked so dramatically suggests
that viewers are not going away so much as finding new ways to connect with their favorite
programs.37
94% of ad views were during current season content in Q42014 (vs. 86% in Q42013). Correspondingly,
ad views during archival content dropped from 14% to 6%.38
How is viewership of short- and long-form content changing?
FreeWheel reported a 43% increase in video ad views on long-form (20+ minute) content year over
year (Q4 2014 vs. Q4 2013), continuing a trend observed as viewers replicate the TV experience in the
new digital living room and outside the home. By successfully packaging bite-size clips for digital
platforms, publishers grew video ad views 19% on short-form (less than 5 minute) and mid-form (5-20
minutes) content.39
Long-form content accounted for 52% of Programmer video ad views in 4Q2014. FreeWheel
hypothesizes that long-form content is poised to increase share as digital-first Publishers make original
content a strategic priority.40
What are the demos of streamers of different content, on different devices?
When Millennials watch original TV series on a TV set, they often do so through a digital connection,
streaming the series online. 32% report using an Internet-connected TV device within the past month
for the purpose of viewing original TV series content, and 25% report using a gaming console or Blu-Ray
player.41
Attitudes toward viewing live vs. streaming vary on a few dimensions. SVOD subscribers A50-64 are
much more likely than those who are younger to report that they “prefer watching shows live, at the
time they air, so I can discuss the latest episode with friends/family”. Younger SVOD users, A13-34 and
36
comScore Presentation: The Future of TV is Total Video, November 2014. Manish Bhatia, Chief Revenue Officer,
comScore
37
FreeWheel Video Monetization Report, Q4 2014
38
FreeWheel Video Monetization Report, Q4 2014
39
FreeWheel Video Monetization Report, Q4 2014FreeWheel Video Monetization Report, Q4 2014
40
FreeWheel Video Monetization Report, Q4 2014FreeWheel Video Monetization Report, Q4 2014
41
ComScore Presentation: The Future of TV is Total Video, November 2014. Manish Bhatia, Chief Revenue Officer,
comScore
17
TV Everywhere
A35-49 are more likely than older users to report that they “prefer waiting until a whole season of a
show is available to watch so that I can watch the entire thing.”42
What does usage look like by device?
TV Everywhere users have 2.7 more Internet-connectable CE devices than the average pay-TV subscriber
and are likely to have more screens in their homes, more devices connected to the television, and more
mobile devices than average subscribers.43
TV-E authenticated videos grew 467% from January 2013 to December 2014 (Fig. 17).44 Authenticated
video starts grew 282% year over year through 1Q 2015, even in the absence of a major sporting event.
45
(Fig. 17)
Gaming Console & OTT device share of videos rose 50% during 2014. iOS share was down 21% YOY and
19% QOQ.46 Connected TV devices like Apple TV, Roku and Xbox grew 4x share year over year in 1Q
2015, increasing from 6% to 24% of authentications.47
iPad is the most popular device for streaming TV-E content (of the device breakdowns shown below),
with 29% share of authenticated videos in Q4 2014; Roku is most popular OTT device (Fig. 18).48
42
NATPE/CEA Consumer Choice in a Dynamic TV Landscape, November 2015
Parks Associates TV Everywhere 2.0: The Next Steps in Multiscreen, March 2014
44
U.S. Digital Video Benchmark: Adobe Digital Index 2014 Annual Report
45
Adobe Q1 2015 Digital Video Report, Adobe Digital Index
46
U.S. Digital Video Benchmark: Adobe Digital Index 2014 Annual Report
47
Adobe Q1 2015 Digital Video Report, Adobe Digital Index
43
18
TV Everywhere
(Fig. 18)
Mobile continues to increase share of video views; smart phone share up 55% YOY in 2014, to 15%, and
tablet share up 25% YOY to 12%.49 Apple TV drove growth of connected TV devices in the most recent
year ended Q1 2015, doubling its share of all authentications quarter over quarter (from 5% to 10%).50
Larger screens lead to more time spent viewing online videos. Q42014 vs. Q32014, smart phone
viewers spent 24% more time per month, however time spent watching content on a desktop was 14
times longer than watching on a smart phone in Q4 2014.51
Hub Research corroborates this finding in use of devices to watch TV “in the past six months” (Fig. 19).52
48
U.S. Digital Video Benchmark: Adobe Digital Index 2014 Annual Report
U.S. Digital Video Benchmark: Adobe Digital Index 2014 Annual Report
50
Adobe Q1 2015 Digital Video Report, Adobe Digital Index
51
U.S. Digital Video Benchmark: Adobe Digital Index 2014 Annual Report
52
Hub Research 2015: What’s TV Worth Study; April 2015
49
19
TV Everywhere
(Fig. 19)
By creating a device index which multiplies incidence of reported device use by share of total usage
for TV, Hub Research pegs the website/PC as the runaway favorite, with Roku, game console and
Smart TV rounding out the above-average devices other than the TV screen (Fig. 20).53
(Fig. 20)
53
Hub Research 2015: What’s TV Worth Study; April 2015
20
TV Everywhere
Freewheel reports that 30% of monetization in 4Q2014 came outside of desktop and laptop
environments, bringing the share of viewing outside of “traditional” digital platforms up about 20%
for all of 2014. While each device saw double-digit growth in both the quarter and 2014 as a whole,
monetization on smartphones and OTT streaming devices exploded, growing 70% and 236%
respectively, in 4Q2014. In addition, 4Q2014 was the first in which OTT streaming devices (such a
Roku, AppleTV, Chromecast, FireTV, Xbox and PlayStation) combined to account for a larger share of
monetization than tablets. Dramatic increases in purchases of streaming media players and slower
growth of tablet sales globally demonstrate many viewers prefer the “lean-back” experience of
streaming content onto their television set vs. the smaller tablet screen.54
TV viewing habits were found to be most closely replicated on OTT devices. Live streams are more
likely than other digital video to be viewed on OTT devices, accounting for 37% of live volume,
compared to 8% of all viewing. Additionally, 91% of video ad views on OTT devices come during longform and live content.55
Meanwhile, desktop computers, laptops, and smartphones continue to be used for viewing shorter
content. 70% of desktop computer and laptop video ad views and 75% of smartphone video ad views
are on content under 20 minutes in duration. Computers and smartphones are used to “snack” on
content through the workday while tablets and OTT devices tend to live in the hone and are “binge
viewing” portals.56
Confirming these findings, Parks Associates reports that TVs are the preferred platform for movies and
TV programs. Computers come second; tablets and mobile phones a distant third. The consumer’s first
display choice to watch a movie or TV program is generally not a computer, tablet, or mobile phone.
Consumers fall back to these options when TV viewing isn’t feasible or is too expensive. Further,
viewing habits differ little by platform. Regardless of which platform consumers use to watch movies
and TV programs, their habits are remarkably similar. They watch the same kind of content
(mainstream titles), at the same time (evenings), and in the same locations (living rooms and
bedrooms). They also watch a similar balance between previously seen and unseen content (50/50%)
and oftentimes watch with family and friends. Alternative platforms provide only slightly less social
viewing than the TV.57
Parks Associates finds that frequency of viewing is directly proportional to screen size (Fig. 21).58
54
FreeWheel Video Monetization Report, Q4 2014
FreeWheel Video Monetization Report, Q4 2014
56
FreeWheel Video Monetization Report, Q4 2014
57
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
58
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
55
21
TV Everywhere
(Fig. 21)
Even so, Parks Associates notes that premium content consumption on mobile devices saw sharp
increases from 2011-13, with broadband households reporting that they “use the Internet to watch TV
shows and moves on a mobile phone/tablet” growing from 14% to 27% over the period.59
comScore identifies the significance of Millennials as early adopters. In 2014, A18-34 reported 19% of TV
viewing on computer, 6% on smartphone and 6% on tablet, paving the way for mainstream
multiplatform adoption. In fact, 1 out of 6 Millennials did not watch from traditional TV sets in the past
month. 60
What does usage look like in terms of time of day and content?
Adobe reports that viewers turn to TV Everywhere to stream movies, with unique visitor growth up
216% over 2014. However, Sports content has over 3 times as many unique visitors as Movie content;
Broadcast & Cable content has almost twice as many unique visitors as Movie content.61
59
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
60
ComScore Presentation: The Future of TV is Total Video, November 2014. Manish Bhatia, Chief Revenue Officer,
comScore
61
U.S. Digital Video Benchmark: Adobe Digital Index 2014 Annual Report
22
TV Everywhere
More recently, Adobe notes that TV Everywhere authenticated video starts see a continuation in
growth; even during a period without unique landmark sporting events like the Olympics and World
Cup. This has led Adobe to conclude that the technology has crossed the chasm and moved into the
“Early Majority” stage.62
With only 7% of sports authenticated content viewed through a gaming console or OTT device, TV
Everywhere viewers are less likely to watch sports programming in the living room, compared to other
types of programming, such as movies – 14% of which are played through a gaming console or OTT
device. TV Everywhere movie viewing is more common on an Android device; compared to the rest of
the industry. Android share of authenticated movies was 27% in 4Q2014, compared to an industrywide 15% share of all authenticated videos.63
The highest share of video authentications occurs on Wednesdays, followed by the weekend, observes
Adobe in its 1Q 2015 report. The Friday night “TV Death Slot” is actually a popular time for binge
viewing.64
Do users prefer MVPD-aggregated services or network services?
Hub Research finds that TVE (authenticated) use is fairly evenly distributed across MVPD, premium
cable, and basic cable sites and apps. Have watched online content from a/an…:
 MVPD (authenticated) – 32%
 Broadcast Network – 64%
 Premium Network (authenticated) – 30%
 Basic Cable Network (authenticated) – 26%.
In addition to authenticated content, 6% say they’ve watched broadcast TV content from a site or app.65
Websites are the most common form of access across providers (Fig. 22).66
Have watched
content from…
MVPD
Broadcast
Network
Premium Network
Basic Cable
Network
(Fig. 22)
62
Accessed through…
Website
22%
59%
24%
20%
Tablet App
(or) Smartphone
App
17%
16%
28%
27%
20%
19%
17%
16%
Adobe Q1 2015 Digital Video Report, Adobe Digital Index
Adobe U.S. Digital Video 2014 Inaugural Report, Adobe Digital Index
64
Adobe Q1 2015 Digital Video Report, Adobe Digital Index
65
Hub Research 2015: What’s TV Worth Study; April 2015
66
Hub Research 2015: What’s TV Worth Study; April 2015
63
Connected TV App
or Icon
23
TV Everywhere
Websites, then mobile and connected TV apps are the most frequented vehicles for authentication
(Fig. 23).67
(Fig. 23)
According to a Discovery Media Consumption Study, among Pay-TV subscribers A18+ over the past
year:



25% streamed from a broadcast or cable TV network’s own site or app (e.g., NBC.com,
BravoTV.com)
15% streamed from a premium TV channel’s site or app (e.g., HBO Go, Showtime Anytime)
11% streamed from a cable/satellite provider’s site or app (e.g., Xfinity TV, TWC TV) 68
Research performed for natpe/CEA found that among SVOD subscribers over the past 6 months:



67
25% sourced TV programming from a network website
12% sourced from a network app
12% sourced from a TV service provider streaming video app 69
Hub Research, CTAM TV Everywhere Wave Four Report, Among P18-64, July 2015
Discovery Media Consumption Study, December 2014
69
NATPE/CEA Consumer Choice in a Dynamic TV Landscape, November 2015
68
24
TV Everywhere
Hub Research also finds that satisfaction is higher with VOD services than with MVPD sites or apps (Fig.
24).70
(Fig. 24)
Viacom reports that TVE helps networks preserve a favorable fan base. 68% have a more favorable
impression of networks that offer TVE apps/sites. 71
ISSUES & OPPORTUNITIES
What percentage of consumers could use TVE but aren’t? Why not?
The majority of aware non-users claim that they do not use TV Everywhere because “watching
programs on computers, smartphones and tablets is not enjoyable.”72
Viacom’s identified Digerati segment don’t see a need for TVE, but also worry about fees and login
issues. Reasons Digerati don’t use TVE:





70
Simply no need - 34%
Worried about costs/fees - 28%
Login issues - 23% (32% for Kids)
Lack of awareness - 21%
Tech concerns - 20%
Hub Research 2015: What’s TV Worth Study; April 2015
Viacom Strategic Insights & Research, TV, Here, There, (Not Quite) Everywhere, 2014
72
Parks Associates TV Everywhere 2.0: The Next Steps in Multiscreen, March 2014
71
25
TV Everywhere




Kid concerns - 19%
Not offered by provider - 12%
Privacy concerns - 9%
Don’t think it has current episodes - 6% 73
Viacom’s Off-Liners don’t see a need for TVE either, but also are concerned with screen size and hidden
fees. Reasons Off-Liners don’t use TVE:








Simply no need - 61%
Small screen size - 32% (57% of teens vs. 18% of kids)
Worried about costs/fees - 26% (39% of teens vs 22% of kids)
Tech concerns - 24%
Lack of awareness - 17%
Kid concerns - 7%
Don’t think it has current episodes - 7%
Privacy concerns - 4% 74
A key inhibitor to TV Everywhere use is simply an aversion to watching movies and TV programs on
alternative platforms. One-half of those not using TV Everywhere say it is because of this. Service
providers can do little to change this sentiment. At the same time, a notable portion of subscribers cite
problems with the service or a limited understanding of how it works—factors the service providers can
influence.75
Viacom found that the top concerns current users have with TVE are tech-related, followed by issues
with the content. Tech-related issues with TVE (among Authenticators):







Long loading/buffering – 24%
Crashing/freezing -23%
Too many ads I can’t skip - 21%
Poor video quality - 15%
Start/stop issues - 12%
Device incompatibility - 12%
Poor sound - 11%
Content-related issues with TVE (among Authenticators):


73
Episodes disappear - 16%
Lacks current episodes - 15%
Viacom Strategic Insights & Research, TV, Here, There, (Not Quite) Everywhere, 2014
Viacom Strategic Insights & Research, TV, Here, There, (Not Quite) Everywhere, 2014
75
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
74
26
TV Everywhere

Lacks all seasons - 13%
19% say they have no problems with TVE.76
Awareness is still a significant issue. Despite the widespread availability of TV Everywhere services in
the U.S. market, only 24% of pay-TV households in 2013 claimed to have a feature from their pay TV
provider which allows users to watch programs on a computer, mobile phone or tablet. This
awareness measurement was double the 12% figure found in 2012, and varied by less than 10
percentage points across providers, with DISH at 20% and Comcast/Xfinity at 28% (Fig. 25).77
(Fig. 25)
Awareness grew coming into 2015 but has plateaued in 1Q2015. Hub Research shows aided awareness
of TVE among Cable subs A18-64 is flat, with 57% “definitely aware” (Top Box) after the concept is
described, as of July 2015 (Fig. 26).78
76
Viacom Strategic Insights & Research, TV, Here, There, (Not Quite) Everywhere, 2014
Parks Associates TV Everywhere 2.0: The Next Steps in Multiscreen, March 2014
78
Hub Research, CTAM TV Everywhere Wave Four Report, Among P18-64, July 2015
77
27
TV Everywhere
(Fig. 26)
As Hub Research summarizes, “TVE the name is not well known – even among TVE users. Neither is the
value proposition. As things stand now, Netflix and Hulu stand to benefit from promoting TV Everywhere
as a brand.” Those who claim the strongest understanding of TVE are actually more likely to say it
applies to ANY provider including Netflix, Hulu, iTunes, and so on. And those who actually use TVE the
most are especially likely to say the concept only applies to viewing in transit (heavy TVE users, 12%
vs. 6% of the base). What’s more, even those who say they’re familiar with TVE have less than a
consistent definition. Only 1 in 3 (34%) of those who have at least heard of TVE understand “TV
Everywhere” to mean watching TV shows and movies from your cable or satellite service on different
devices – computer, smartphone or tablet.79
Viacom research also identified as barriers to overcome TVE’s lack of awareness and understanding.
Noting no go-to source for discovery, the recommendation in light of the low awareness is to consider
all audiences and marketing avenues. Optimizing messaging to alleviate cost concerns and
communicate TVE value (content & flexibility) are suggested approaches to improving
understanding.80
79
80
Hub Research 2015: What’s TV Worth Study; April 2015
Viacom Strategic Insights & Research, TV, Here, There, (Not Quite) Everywhere, 2014
28
TV Everywhere
What do we know about the authentication process?
Over one-half say they must authenticate every time they use the site or each time they watch
something. Of note, another 11% say they must authenticate occasionally, but they are not sure
when.81
A majority (57%) of those that watch authenticated video say that they are deterred by the
authentication process some of the time. 8% of pay-TV subscribers are deterred by the authentication
process on a monthly basis.82
A number of factors deter subscribers from using authenticated video (Fig. 27).83
(Fig. 27)
The nature of the beast is such that the more often subscribers must authenticate, the more
frequently they are deterred from watching video (Fig. 28).84
81
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
82
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
83
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
84
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
29
TV Everywhere
(Fig. 28)
4 in 10 have abandoned the log in process for viewing TV shows from any online source, according to
Hub Research. The top barriers to entering sign in information are perceived time commitment and
forgotten passwords.85
Making the login process less arduous would have the biggest impact on authenticated online TV use.
Changes that would have the biggest impact on adoption:






Entering a minimal amount of information – 38%
Only having to enter your information once, and it is remembered every time – 34%
Having a better understanding of exactly what shows or movies you’d gain access to – 31%
If by entering your information, you’d have access to additional content others can’t get – 27%
If all sites that allow you to watch online asked for your account info, not just certain ones – 23%
Having just one password that you can use across all online services – 23% 86
The authenticated video process causes many headaches for subscribers:
85
86
Hub Research 2015: What’s TV Worth Study; April 2015
Hub Research 2015: What’s TV Worth Study; April 2015
30
TV Everywhere



Nearly three quarters of those watching authenticated video say they must authenticate more
than once. 43% say they must authenticate every time they use the site; 17% say they must
authenticate each time they want to watch something.
Nearly one-half of those trying to watch authenticated video say they are deterred from
watching video some of the time. Moreover, as usage increases so does the occurrences of
deterred viewing.
Subscribers are deterred from watching authenticated video for many reasons. 41% are
deterred because they do not have access to the content; 38% say the process is too much of a
hassle; 34% were unable to complete the authentication process.87
Only 23% think that the login process for TV content is consistent across sources. More consistency
across apps – how they work, what they do, the UI – would also drive adoption. 60% report that they
would be “a lot more interested” (28%) or “a little more interested” (32%) if TV apps worked more
consistently.88
Lack of communication and coordination among systems and platforms forces users to launch and
authenticate viewing sessions on each device independently. Thus, each platform is its own “island”
experience that is separated from experiences on other platforms.89
How does TVE fit in with other viewing platforms, what occasions drive usage?
More TV is watched live than any other way:



Largest share of total TV consumption, at 40%
Most common “default” source for TV, at 38%
Most “indispensable” TV source, at 45% 90
DVR or TiVO, Netflix and Hulu Plus ranked just below “live TV” as first choice source of programming, in
a 2015 survey conducted on behalf of CEA and NATPE, 20% of consumers named service provider
apps, and 10% mentioned network apps (Fig. 29).91
87
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
88
Hub Research 2015: What’s TV Worth Study; April 2015
89
Parks Associates TV Everywhere 2.0: The Next Steps in Multiscreen, March 2014
90
Hub Research 2015: What’s TV Worth Study; April 2015
91
NATPE/CEA Consumer Choice in a Dynamic TV Landscape, November 2015
31
TV Everywhere
(Fig. 29)
A media consumption study by Discovery conducted in 4Q2014 asked about ways in which viewers had
watched a full episode of any TV show in the past year. 55% of pay-TV subscribers reported streaming
from any source, and 25% had streamed from a broadcast or cable TV network site or app, while 11%
had streamed from a cable/satellite provider’s site or app (Fig. 30).92
92
Discovery Media Consumption Study, December 2014
32
TV Everywhere
Q4. Please think about your TV viewing during the past year. In which of the following ways have you
watched a full episode of any TV show during the past year? Please select all that apply.
Total 18+ Pay TV Sub 18+
Base:
1411
1171
Live on TV
81%
87%
Recorded/from a DVR or Tivo
45%
52%
On Video on Demand from your cable/satellite provider
36%
41%
From a DVD
38%
37%
Any Online Streaming or Purchased Eps [Net]
59%
55%
Streamed from a broadcast or cable TV network’s own site or app (e.g.,
NBC.com, BravoTV.com)
27%
25%
Streamed from a premium TV channel's site or app (e.g., HBO Go,
Showtime Anytime)
14%
15%
Streamed from a cable/satellite provider's site or app (e.g., Xfinity TV, TWC
TV)
10%
11%
Streamed from a free video site/service that offers TV shows from
different networks (e.g., Hulu, YouTube)
25%
23%
Streamed from a subscription video site/service (e.g., Netflix, Hulu Plus,
Amazon Instant Video)
39%
36%
Streamed or downloaded from an unofficial or unauthorized source (e.g.
BitTorrent, Project Free TV)
7%
7%
Purchased episode(s) from an online source (e.g. iTunes, Amazon)
9%
9%
Other way (please specify)
1%
1%
I haven't watched an episode of a TV show during the past year
2%
1%
(Fig. 30)
Online sources continue to gain traction, however. 74% of MVPD subs use at least one online TV
source. And the percent of viewers who say that live TV is their default source is falling, from 50% in
2013 to 38% in 2015.93
TV Everywhere serves a variety of purposes.



Two-thirds use it for “catch-up” TV viewing.
52% use it to watch programs when outside the home.
41% use it when the TV set is being used by someone else. 94
TV Everywhere users gravitate toward particular use cases, according to Parks Associates. In particular,
three groups stand out:


93
Busy Viewers (26%) – Use TV Everywhere to catch up on missed programs; this group is only
interested in the catch-up aspect of TV Everywhere viewing and is uninterested in other use cases
Travelers(30%) – Use TV Everywhere outside of the home; in the backseat for the kids, stave off
boredom in waiting rooms, catch-up on favorite shows during their commute; changes are even if
Travelers had not missed the latest episode of a favorite show, they would still be watching some
content on their phone or tablet. The mobility of the service drives their use.
Hub Research 2015: What’s TV Worth Study; April 2015
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
94
33
TV Everywhere

Maximum Multiscreeners (44%)– Have integrated TV Everywhere into their lifestyle. Unlike the
other two groups, these people use TV Everywhere inside their own home when the TV is not
available, but they also use it for catch-up purposes and while on the go. This group takes full
advantage of every feature, and has the heaviest use among the three groups. 95
Catch-up viewing is the most common TVE use case among consumers:



67% report “I watch the programs that I missed at original time of broadcast”
52% report “I watch the programs when I am outside my home”
41% report “I watch the programs when somebody else is using the TV” 96
comScore found that when viewers are asked why they watch original TV on the Internet, flexibility and
convenience rule. 56% indicate that they prefer to watch on their own schedule and 52% indicate that
it is more convenient. Further, adoption drivers vary by age, with older viewers (A55+) using online to
catch missed episodes (29%), and younger adults (A18-34) preferring fewer ads (13%) or cost savings
(12%).97
Viacom has identified specific content related drivers of TVE usage among Authenticators:




Re-watch episodes – 31%
Start show from 1st season – 22%
Only way to watch show – 17%
Access exclusive content – 14% 98
Further, these TVE users report using TVE vs. an app or site without Pay TV login because (top
reasons):



It has more shows - 42%
It has the shows/series I want to watch - 38%
It has exclusives - 23% 99
41% of U.S. homes have access to a subscription video-on-demand service like Netflix, up from 36% a
year ago. 100
95
Parks Associates TV Everywhere 2.0: The Next Steps in Multiscreen, March 2014
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
97
ComScore Presentation: The Future of TV is Total Video, November 2014. Manish Bhatia, Chief Revenue Officer,
comScore
98
Viacom Strategic Insights & Research, TV, Here, There, (Not Quite) Everywhere, 2014
99
Viacom Strategic Insights & Research, TV, Here, There, (Not Quite) Everywhere, 2014
100
Nielsen: SVOD Services in 41% of U.S. Homes, 3/11/2015 9:00 AM Eastern, Jon Lafayette, Broadcasting & Cable
96
34
TV Everywhere
In 2014, 34% of U.S. broadband households subscribed to some type of OTT service, an increase of two
percentage points from the prior year. 101
Viacom research finds that, after live TV, TVE is as viable a source as VOD, DVR and subscription
streaming services. Further, TVE supplements viewing rather than cannibalizing – more than half of
TVE users now watch more TV. Since starting to use TVE (among authenticators), 64% watch more TV
overall (72% of P18-24), and only 36% watch the same amount. 102
In homes with streaming services, usage of TV-connected technology is nearly 50 minutes per day
greater than in a typical TV home. 103
YouTube is a significant source of streamed full length program viewing among Millennials (36%
watched in past 6 months), outpacing other types of streaming options, like network websites, free
websites like Hulu and Crackle, and other subscription services among this age group. Millennials are
also more open to viewing on other devices, most notably the laptop, selected as the preferred device
for viewing TV shows among 19% in this age group. Portability is a key driver for Millennials and many
cite this as the reason for their preference for laptops. Some also reference that is has a larger screen
than other portable devices.104
Is TVE being used in place of other platforms or in addition?
TVE provides flexibility – allowing viewers to watch shows when, where and how they want. Flexibility
related drivers of TVE usage (among Authenticators, per Viacom’s research):






Couldn’t watch the show live - 30%
Watch away from home - 28%
All TVs were being used - 22%
Can move around house - 22%
Watch a show privately - 15%
Use DVR on another device - 14% 105
Parks Associates notes that computers and smartphones marginally contribute to linear video
consumption, accounting for only about 10% of linear viewing hours across all platforms. Linear video
accounts for roughly 15% of all video consumption on a computer and one-fifth of the video
consumed on smartphones.106
101
Parks Associates TV Everywhere 2.0: The Next Steps in Multiscreen, March 2014
Viacom Strategic Insights & Research, TV, Here, There, (Not Quite) Everywhere, 2014
103
Nielsen: SVOD Services in 41% of U.S. Homes, 3/11/2015 9:00 AM Eastern, Jon Lafayette, Broadcasting & Cable
104
NATPE/CEA Consumer Choice in a Dynamic TV Landscape, November 2015
105
Viacom Strategic Insights & Research, TV, Here, There, (Not Quite) Everywhere, 2014
106
Parks Associates Digital Media: Q3 Market Focus: The Death of Linear TV?, Q3 2014
102
35
TV Everywhere
To what extent does password sharing occur?
Research from The Diffusion Group (TDG) reports that more than 20% of adult broadband users that
stream video from an online subscription service are ‘cord cheaters,’ consumers who access these
services using the account name and password of someone that does not reside in the same
household. The incidence of this for Netflix streaming at 19.9% is similar to that of HBO Go (18%).107
“While it is widely acknowledged that ‘cord cheating’ is occurring, few comprehend how widespread
the behavior has become,” noted Michael Greeson, TDG Founder and Director of Research. According
to a TDG’s latest research, a sizable segment of online subscription video viewers live in households that
are not paying to enjoy on-demand access to movies, TV programs, and a host of other high-value video
content. Content providers are losing substantial revenue by not enforcing more restrictive
authentication procedures. 108
Only 12% say they’ve shared account info with a friend or family member that lives somewhere else,
however, self-reported credential sharing is twice as high for cable sites and apps as for Netflix (6%).109
Is TVE driving eyeballs back to linear?
In 2014, 51% of viewers A16-74 report having watched a show live that they first discovered online.
Among viewers A16-54, this figure is 61% and has not changed significantly vs. 2013 (64%).110
72% of Millennials watch TV shows on regular TV that they first discovered online.111
52% of viewers A13-34, and 41% of total viewers, consider “a recommendation from a streaming
service based on other things I watch” to be a very or somewhat important source of TV
programming.112
PERCEPTIONS, SATISFACTION & EXPECTATIONS
What is the consumer perception of TV Everywhere?
24% of pay-TV subscribers report having TV Everywhere as part of their service up from 16% in Q2/13.
The increase in awareness was primarily among subscribers age 18-34. Nevertheless, awareness is far
below the actual number of subscribers that have TV Everywhere service. Service providers have
generally completed their roll-out of the capability.
107
TDG Press Release: TV Gets Personal: Mobile Video to Account for 20% of Total Viewing by 2025; March 4,
2015; www.tdgresearch.com
108
TDG Press Release: TV Gets Personal: Mobile Video to Account for 20% of Total Viewing by 2025; March 4,
2015; www.tdgresearch.com
109
Hub Research 2015: What’s TV Worth Study; April 2015
110
Citation-L
111
Citation-L
112
NATPE/CEA Consumer Choice in a Dynamic TV Landscape, November 2015
36
TV Everywhere
Pay-TV subscribers do not necessarily associate authenticated video services with their pay-TV
provider. One-half of those using authenticated video from their provider monthly report that they
do not have TV Everywhere services as part of their pay-TV package.113
Pay-TV subscribers that watch movies and TV programs from alternative sources and on alternative
platforms should be prime users of TV Everywhere services. In reality, over one-half of them are not
even aware that they have access to TV Everywhere services.114
Viacom found that TVE awareness does not equate to really “knowing”. 68% of all respondents are
aware of the TVE concept:



Authenticators - 81%
Digerati - 61%
Off-Liners 42% 115
Asked directly, consumers vary somewhat in the type of online content they think MVPDs offer, but
the prevailing sentiment is uncertainty. “As far as you know, do MVPDs offer you the ability to: 116






Watch past episodes of TV programs on a computer, through their website – 43% Yes / 7% No
/ 50% Don’t Know
Watch live TV on a smartphone or tablet while you’re at home, through their mobile app –
39% Yes / 7% No / 54% Don’t Know
Watch live TV on a computer while you’re at home, through their website – 39% Yes / 9% No /
52% Don’t Know
Watch past episodes of TV programs on a smartphone or tablet, through their mobile app –
38% Yes / 10% No / 52% Don’t Know
Watch live TV on a computer when you’re away from home, through their website – 35% Yes /
10% No / 55% Don’t Know
Watch live TV on a smartphone or tablet when you’re away from home, through their mobile
app – 35% Yes / 10% No / 55% Don’t Know
Viacom further notes that our definition of TVE is not short & sweet: “Have you ever heard about TV
Everywhere sites/apps that allow you to watch full-length TV shows by logging in with your cable or
satellite information? These apps are available on tablets and smartphones, or you would watch on an
Internet-connected/Smart TV, video game system/console, computer, or media playing device (like
Apple TV, Roku), etc.” 117
113
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
114
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
115
Viacom Strategic Insights & Research, TV, Here, There, (Not Quite) Everywhere, 2014
116
Hub Research 2015: What’s TV Worth Study; April 2015
117
Viacom Strategic Insights & Research, TV, Here, There, (Not Quite) Everywhere, 2014
37
TV Everywhere
Subscribers won’t get much value from TV Everywhere if they don’t know that it exists. Awareness
levels are thankfully increasing, but service providers should make greater efforts to educate their
subscribers. Placing more advertisements in billing, price sheets, and websites will help boost
awareness. Older subscribers, in particular, are unaware of TV Everywhere offerings.118
Nearly all authenticators agree that TVE adds value to their pay TV subscription and increases loyalty.
98% say TVE adds value to their pay TV subscription; 67% say TVE adds a lot of value. And 93% are
more likely to stay with a provider because of TVE.119
Use of TVE services has had a major impact on consumer’ engagement and perceptions of an MVPD
subscription (base: have watched TV on computer, tablet or smartphone) (Fig. 31).120
(Fig. 31)
Hub Research finds that among all MVPD Subs, 61% report feeling somewhat or a lot more positive
about their TV provider because of the availability of TVE services. The impact is especially strong
among younger viewers (e.g., Millennials). Among A16-34, 71% report feeling somewhat/a lot more
positive and among A35-64, this figure is 55%. 121
The impact is also stronger than average among households with young kids age 5 and under (73%
feel somewhat or a lot more positive), and among those HH that say TV is an “essential” part of their
entertainment lives (75% feel somewhat or a lot more positive).122
The availability of TVE also seems to reduce the appeal of cord-cutting. 83% of heavy TVE users report
that availability of TVE services makes them more likely to continue getting service from their MVPD,
and 66% of all TVE users report this, whereas the average for all MVPD subscribers is 54%.123
118
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use & Authentication, Q3
2013
119
Viacom Strategic Insights & Research, TV, Here, There, (Not Quite) Everywhere, 2014
120
Hub Research 2015: What’s TV Worth Study; April 2015
121
Hub Research 2015: What’s TV Worth Study; April 2015
122
Hub Research 2015: What’s TV Worth Study; April 2015
38
TV Everywhere
48% of non-TVE users say that their MVPD subscription is an excellent/good value. 67% of all TVE
users report this, as do 82% of heavy TVE Users, 59% of moderate TVE users and 52% of light TVE users.
124
More than half (51%) of cable subs say their cable subscription is more valuable because of TVE.125
54% of all MVPD subscribers report that the ability to watch TV content on different devices makes
them feel a little or a lot more positive about a cable network. 69% feel a little or a lot more positive
about a premium network in light of this ability.126
What do we know about satisfaction?
For viewing sources in general, satisfaction with apps and network sites trails that of more traditional
and familiar methods of access, including DVR, SVOD and live TV (Fig. 32).127
(Fig. 32)
Online viewers are happiest watching via Netflix, premium apps and basic cable sites (Fig. 33).128
123
Hub Research 2015: What’s TV Worth Study; April 2015
Hub Research 2015: What’s TV Worth Study; April 2015
125
Hub Research, CTAM TV Everywhere Wave Four Report, Among P18-64, July 2015
126
Hub Research, CTAM TV Everywhere Wave Three Report, Among P18-64, February 2015
127
NATPE/CEA Consumer Choice in a Dynamic TV Landscape, November 2015
124
39
TV Everywhere
(Fig. 33)
Device-wise, consumers are more satisfied with watching on a connected TV on a site or app, and give a
7.8 (10 –scale) rating for watching on a TV set vs. 7.2 on a smartphone or tablet app and 6.6 on a
website.129
What do viewers want or expect?
According to research performed by Viacom, a majority of Authenticators want deep content libraries,
the flexibility of a DVR and excellence in functionality:




True Flexibility: Start/stop functionality, Watch on any device, Use outside home Wi-Fi;
Smart Search: Search for specific show, content organized by genre, create queue/list of
favorites;
Complete Content: Instant access to recent episodes, old seasons of shows still on air, Old
episodes of shows still on air;
Custom Logins: Accounts for multiple users, App specific logins130
Consumers have varying expectations about what content should be available from online sources:



128
Any episode from the current season of a show - 65%
Episodes from the network’s MOST POPULAR shows - 64%
Episodes that are available one week after airing for the first time on live TV - 59%
Hub Research 2015: What’s TV Worth Study; April 2015
Hub Research 2015: What’s TV Worth Study; April 2015
130
Viacom Strategic Insights & Research, TV, Here, There, (Not Quite) Everywhere, 2014
129
40
TV Everywhere








Episodes that are available 2-3 days after airing for the first time on live TV - 58%
Any episode from the previous season of a show - 52%
Episodes that are available immediately after airing for the first time – so as soon as they finish
on live TV - 46%
Any episode from 2-3 seasons ago for a show - 42%
Episodes from ALL of the network’s shows, current and past - 40%
Live episodes, so you can watch at the same time it’s on regular TV - 39%
Episodes from the network’s PAST shows, no longer on the air - 39%
Extra content from the network’s shows, such as interviews and behind the scenes videos 29%131
Consumers are most likely to feel that they would find current episodes on premium and basic cable
online sources. 65% would expect to find current season episodes from premium and basic cable
networks (vs. Netflix, Broadcast, MVPD, etc.). 64% would expect to find episodes from most popular
shows from premium and basic cable networks. They are more likely to expect back catalog episodes
from Netflix. 52% expect to find any episode from the previous season on Netflix, and 42% expect to
find any episode from 2-3 seasons ago there. 39% also expect to find past shows no longer airing on
Netflix. Broadcast online sources (and VOD) are among the last places consumers would expect to find
older episodes.132
In light of these findings, Hub Research suggests that TVE messages emphasizing multiple devices, deep
catalog and no additional cost will be most effective (Fig. 34).133
131
Hub Research 2015: What’s TV Worth Study; April 2015
Hub Research 2015: What’s TV Worth Study; April 2015
133
Hub Research 2015: What’s TV Worth Study; April 2015
132
41
TV Everywhere
(Fig. 34)
For premium channel subs, the strongest messages are those focusing on exclusivity and deep catalog
(Fig. 35).134
(Fig. 35)
134
Hub Research 2015: What’s TV Worth Study; April 2015
42
TV Everywhere
TV Everywhere services still lag other OTT offerings in terms of features, despite advances in quality
and availability on mobile devices. As a result, operators and solution providers are focusing on feature
improvements to better compete with OTT and to differentiate TV Everywhere services. Many TV
Everywhere 2.0 features address the user experience and how it will be enhanced in the future. OTT
services have consistently maintained an advantage over TV Everywhere offerings in content
discovery. To date, few pay-tv providers have yet added personalized recommendations to their
multiscreen interfaces, but many are expected to do so in the near term.135
ADVERTISER VALUE & MONETIZATION
What’s the incremental value of TVE content to the advertiser?
According to FreeWheel - the advertising technology company acquired by Comcast last year authenticated viewing (defined as viewing that occurs after a viewer enters his or her MVPD
credentials) accounted for more than half (about 56%) of long-form and live content monetization in
the fourth quarter of 2014. This represents 591% growth from Q42013 to Q4 2014 (Fig. 36).136
(Fig. 36)
According to a report from TDG, revenue from OTT TV advertising –- that is, commercial advertising
placed in full-length TV-quality programming delivered via broadband –- is expected to grow nearly
four- fold between 2015 and 2020.
According to TDG’s analysis, the average ad load for a 30-minute legacy linear program will decline by
38% between 2014 and 2020, from approximately eight minutes to around five minutes. During the
135
Parks Associates TV Everywhere 2.0: The Next Steps in Multiscreen, March 2014
TV Everywhere Ad Views Jump 591% in Q4: FreeWheel, 2/24/2015 1:00 PM Eastern, Jeff Baumgartner,
MultiChannel.com
136
43
TV Everywhere
same period, average OTT TV ad loads will increase 63%, from 3.2 minutes to 5.1 minutes, during the
same time period, bringing OTT TV ad loads in line with that of legacy linear TV (Fig.37).137
(Fig. 37)
This shift in ad load is not all bad for content networks. According to Alan Wolk, TDG senior analyst, the
value of legacy linear TV advertising in 2020 will be worth considerably more than today. Wolk adds that
new forms of advertising such as native and sponsored promotions will generate additional revenue
and keep total TV ad revenue stable through 2020 (no growth in total revenue, but no decline, even as
dollars are shifted to OTT TV ). By 2020, OTT TV ad revenue will be approximately $40 billion, just
under half of 2020’s projected $85 billion in total TV ad revenue.138
Observes FreeWheel, “Also of interest are the patterns by which viewers consume new seasons of
content. 28% of viewing occurs within three days of a show’s linear air date, while 64% occurs after a
week. While most linear TV ad sales are transacted on the first three days, the fact remains that the
vast majority of digital viewers are not beholden to traditional scheduling and are now watching at their
own convenience.”139
137
TDG Press Release: TDG: OTT TV Ad Revenue to Increase Four-Fold by 2020; New Report Examines the Future of
Video Ads in Long-Form TV Quality-Programming Delivered via Broadband. April 9, 2015, www.tdgresearch.com
138
TDG Press Release: TDG: OTT TV Ad Revenue to Increase Four-Fold by 2020; New Report Examines the Future of
Video Ads in Long-Form TV Quality-Programming Delivered via Broadband. April 9, 2015, www.tdgresearch.com
139
FreeWheel Video Monetization Report, Q4 2014
44
TV Everywhere
Driven by “must-watch” live streaming and the need for consumers to catch-up on TV series,
authenticated, TV Everywhere ad viewing soared 591% in the fourth quarter of 2014 versus the yearago quarter, FreeWheel found in its latest report.140
comScore reports share of ad spending in online video at 9%($7B) expected in 2015 (Fig. 38). 141
(Fig. 38)
In the Nielsen Mobile TV Ratings: National Preview Report (July 28-October 19, 2014), it was observed
that a greater percentage of potential C3-qualified commercials was viewed on mobile than on TV
(Fig. 39). Greater likelihood for C3-qualified ads to be viewed can make mobile an effective ad viewing
environments.142
(Fig. 39)
140
TV Everywhere Ad Views Jump 591% in Q4: FreeWheel, 2/24/2015 1:00 PM Eastern, Jeff Baumgartner,
MultiChannel.com
141
ComScore Presentation: The Future of TV is Total Video, November 2014. Manish Bhatia, Chief Revenue Officer,
comScore
142
Nielsen How Mobile Is Changing Media: Findings From Our Total Audience Measurement, July 2014
45
TV Everywhere
Nielsen reports that mobile presents an opportunity for programmers and advertisers to reach elusive
younger audiences with TV programs and ads, and specific networks can see markedly different
audiences for their programs on mobile vs TV sets - critical to understand their audiences across
platforms. Further, publishing to the intended audience has proven to be more accurately accomplished
via mobile (Fig. 40).143
(Fig. 40)
According to FreeWheel, Q4 2014 marked the first quarter in which over half of long-form and live
monetization came via authenticated viewing, with this share more than quadrupling (from 13%) vs.
the year-prior quarter, a 591% growth rate (Fig. 41).144
(Fig. 41)
143
144
Nielsen How Mobile Is Changing Media: Findings From Our Total Audience Measurement, July 2014
FreeWheel Video Monetization Report, Q4 2014
46
TV Everywhere
What do drop off rates at varying ad loads look like?
FreeWheel reports that long-form ad completion rates are at 92% “as viewers are more committed to
the content and tolerant of mid-roll ads.” In 4Q2014, FreeWheel also saw a 43% increase in video ad
views on long-form content (20 minutes or more) amid a shift of viewing to digital devices in and out of
the home.145
Ad completion rates on long-form content have never dipped below 90% since this metric was first
reported. One trend that reversed course slightly in 4Q2014 was the move towards longer, “TV-style” ad
breaks on long-form content. After several consecutive quarters in which the average ad break crept
up in duration, the average mid-roll break shrank from 4.0 ads in Q3 to 3.9 ads in Q4, with an average
duration of 93 seconds, down from 101 seconds. Still, there was a 27% increase in ads per break year
over year.146
Metrics of digital video monetization
Most monetization in 4Q2014 came by way of a show’s current season (94%) compared to archival
content (6%), versus 86% and 14%, respectively, in the 3Q2014. Additionally, 28% of viewing occurred
within three days of a show’s linear air date, while 64% occurred after a week.147
23% of programmer ad views were of live content, with the bulk of them (83%) coming from sports,
versus 12% for news, 2% for comedy/variety shows and 3% from scripted dramas. On the on-demand
end, ad share was more evenly distributed: documentary/reality (25%), news and music/trailers (19%
each), sports (15%), scripted dramas (10%) and comedy/variety (9%).148
FreeWheel also found that 30% of monetization in 4Q2014 came outside of desktops and laptops.
Usage on smartphones and OTT streaming devices (Roku, Apple TV, Chromecast, Amazon Fire and
gaming consoles, etc.) grew 70% and 236%, respectively, in 4Q2014. Of that group, OTT devices
combined to account for a larger share of monetization than tablets.149
145
TV Everywhere Ad Views Jump 591% in Q4: FreeWheel, 2/24/2015 1:00 PM Eastern, Jeff Baumgartner,
MultiChannel.com
146
FreeWheel Video Monetization Report, Q4 2014
147
TV Everywhere Ad Views Jump 591% in Q4: FreeWheel, 2/24/2015 1:00 PM Eastern, Jeff Baumgartner,
MultiChannel.com
148
TV Everywhere Ad Views Jump 591% in Q4: FreeWheel, 2/24/2015 1:00 PM Eastern, Jeff Baumgartner,
MultiChannel.com
149
TV Everywhere Ad Views Jump 591% in Q4: FreeWheel, 2/24/2015 1:00 PM Eastern, Jeff Baumgartner,
MultiChannel.com
47
TV Everywhere
Sources:
Nielsen: SVOD Services in 41% of U.S. Homes, 3/11/2015 9:00 AM Eastern, Jon Lafayette, Broadcasting &
Cable
TV Everywhere Ad Views Jump 591% in Q4: FreeWheel, 2/24/2015 1:00 PM Eastern, Jeff Baumgartner,
MultiChannel.com
Viacom Strategic Insights & Research, TV, Here, There, (Not Quite) Everywhere, 2014
FTDG Press Release: TV Gets Personal: Mobile Video to Account for 20% of Total Viewing by 2025;
March 4, 2015; www.tdgresearch.com
FTDG Press Release: TDG: OTT TV Ad Revenue to Increase Four-Fold by 2020; New Report Examines the
Future of Video Ads in Long-Form TV Quality-Programming Delivered via Broadband. April 9, 2015,
www.tdgresearch.com
FreeWheel Video Monetization Report, Q4 2014
Parks Associates TV Everywhere 2.0: The Next Steps in Multiscreen, March 2014
Parks Associates Access & Entertainment Services: Q3 Market Focus. TV Everywhere Use &
Authentication, Q3 2013
Parks Associates Digital Media: Q3 Market Focus: The Death of Linear TV?, Q3 2014
U.S. Digital Video Benchmark: Adobe Digital Index 2014 Annual Report
Nielsen How Mobile Is Changing Media: Findings From Our Total Audience Measurement, July 2014
Adobe U.S. Digital Video 2014 Inaugural Report, Adobe Digital Index
Hub Research, CTAM TV Everywhere Wave Three Report, Among P18-64, February 2015
Discovery Media Consumption Study, December 2014
comScore Presentation: The Future of TV is Total Video, November 2014. Manish Bhatia, Chief Revenue
Officer, comScore
Hub Research 2015: What’s TV Worth Study; April 2015
NATPE/CEA Consumer Choice in a Dynamic TV Landscape, November 2015
Adobe Q1 2015 Digital Video Report, Adobe Digital Index
Hub Research, CTAM TV Everywhere Wave Four Report, Among P18-64, July 2015