A More Active Audience for TV

According to one recent analysis, delayed viewing (from DVR or VOD) is becoming the dominant form of primetime entertainment watching.  The Rentrack State of VOD report that delayed viewing was up 24% during prime time last year.  In 2013, some 43.2 million sets accessed a total of 4.4 billion hours of VOD content.  That works out to an average of 9 hours of VOD content a month per TV set.

But a better reflection of the change in audience TV viewing habits was the fact that 66% of the viewing of broadcast prime-time programming occurred more than 3 days after the original broadcast.  Delayed viewing is not concentrated to particular days; those watching On-Demand content did so on an average of 16-18 days a moth.  TV viewers, in the U.S. at least, are increasingly choosing when they watch their favorite programs.

"The consumer is utilizing the VOD button on their remote in a bigger way than ever, and TV networks have responded with their best programming," said Rentrak Chief Executive Officer and Vice Chairman Bill Livek.

Source:  Video-On-Demand Broadcast Primetime Viewing Grew 24% According to Rentrak's Newly-Released 'State of VOD' Report,  Market Watch

IRTS - Poltrack confirms shifting audience habits

The second speaker today was David Poltrack, Chief Research Officer, CBS.  He confirmed trends he hinted at at an earlier IRTS.  With new devices and new delivery channels, people's viewing patterns are changing.  Some highlights:

• This year, 94% of their large tracking sample are "connected."  Less than 10% of US TVHH only watch TV on home TV sets.
• Delayed viewing is accounting for large and growing portion of viewing and ratings - not just for the big prime time series but in all day parts.
• Streaming, VOD, and mobile are all seeing big increases in TV viewing.
• Non-live viewing not only large share of total viewing, but showing some differentiable habits developing.
• Broadcasters, advertisers, ratings services are trying to develop better metrics.
• Streaming-only big series draw audiences similar to big pay-TV series, prime time broadcast series.
• Second screen usage up to 67% for some demographics
• Email, texting, and chatting is most frequent activity.  Gaming is second (20% of  USTVHH is playing Candy Crash while watching TV.

Basically, the audiences are becoming more active, and programmers and networks are trying to figure out how to reach them.

Nielsen- VOD/DVR use expands, changing TV habits`

Nielsen's latest "Cross-Platform Report" notes that 60% of US TVHH have VOD (Video On Demand) capabilities through set-top boxes and access through video streaming services.  Nielsen suggests that ease of use and increased programming options have made VOD and increasingly viable option for TV viewing.

The report shows that while traditional TV viewing (live on TV sets) remains the source of most viewing, audiences are increasing their use of both DVRs and VOD for time shifting programs and supplementing their viewing options.  The report also suggests that DVR and VOD uses are developing unique niches, with DVR time-shifting primarily used for general dramatic series, and VOD used primarily for watching movies.

The full report finds that younger demographic groups are more likely to make use of VOD, as are families with kids, and households with incomes above $100,000.  There's no real difference in use between households with DVRs and those without, but those with high speed Internet connections are much more likely to use VOD.

If you look at how different age groups use different devices for watching video content, those 50+ report the highest amount of traditional TV viewing (over 40 hrs/week), while the 25-49 age groups do the most time-shifted viewing (3+ hrs/wk) and spend the most time on the internet on computers (6+ hrs/wk).  The 18-34 age group averages the most time watching video on the Internet (about 1.3 hrs/wk).

Looking at different race/ethnic groups, Blacks watch the most "traditional" TV, averaging more than 200 hrs/month.  They also spend the most time watching videos using DVD/BluRay players (6 hrs/month), game consoles (7+ hrs/month), and rank second to Asians in time watching video content through the internet (9 hrs/month).  Asians spend the least time watching video content on traditional TVs (86 hrs/month), yet spend the most time accessing the internet via computers (35 hrs/month) and watching videos through the internet (12 hrs/month).  Whites watch the most time-shifted video content, averaging 12 1/2 hrs/month.

Sources - Q2 2013 Cross-Platform Report: Viewing on Demand, Nielsen Newswire
Viewing on Demand: The Cross-Platform Report September 2013, Nielsen research report

DVR, VOD changes TV viewing

Recent consumer research from Leichtman Research Group (LRG) shows that more than half of homes getting their TV from a multichannel video programming delivery service (i.e., cable, DBS, telco cable) have and use DVRs to record and watch TV programming, while only 4% of households without MVPDS (that is, rely on over-the-air broadcast stations and/or internet streaming for their TV programming).  Since about 90% of homes get MVPDS programming on at least one TV, that's a lot of U.S. TV households with DVR capability.  And 43% of DVR homes have DVR access to two or more TV sets in their home.
  In addition, the survey found that 70% of cable digital subscribers have used its VOD (video on demand) service to watch TV programs (compared to 58% in 2007 and 25% in 2004).  In addition, more than half (51%) of the MVPDS subscribers also subscribe to Netflix, the top on-demand Internet video streaming service.

  So now that DVRs, VOD, and on-demand Internet video streamers and other technologies that shift control over viewing time and conditions to audiences are fairly widespread, how do consumers like and use them?  What do consumers think about having the power to watch TV programs when and where they want?  LRG surveyed some 1300 U.S. households, and the LRG report concluded that:

“... the percentage of all TV households in the US with a DVR has... doubled over the past five years, and... expanding to more TV sets in the home... consumers are increasingly integrating DVR, VOD and On-Demand TV viewing into their TV viewing patterns... ”

More specifically,

• People really like having DVRs, with an overwhelming majority giving the service strongly positive ratings (8-10 ratings where 10 is excellent).  In addition, people prefer (give higher positive ratings) when they have DVR access on multiple TV sets (81% top ratings) than when they have DVR access from only one TV (71%).
• More than half of digital cable (59%) and Telco video (64%) subscribers have used their VOD service within the last month.
• More than a quarter (26%) of Netflix subscribers watch "Instantly" on a daily basis, and more than half (59 watch a movie or TV program "Instantly" at least weekly.
• More than two-thirds of VOD users strongly agree with the idea that having both VOD and DVR makes their TV service better.
• 79% of Netflix "Watch Instantly" users watch movies and TV programs on a TV set (as opposed to a computer screen or mobile device).

These reported results certainly suggest that most viewers like having more control over their TV viewing in the form of DVRs, VOD, and Internet video streaming services - and that having those tools helps to improve their perception of the value of their TV delivery service.  What's in the press report doesn't really get too much into changing behaviors, but a spate of current research is clearly establishing and increase in time-shifting viewing - enough to start a debate about what that means for TV advertising, and how to best measure and incorporate that viewing into ratings.


Source  -  The DVR Impacting TV Viewing and Satisfaction,  Research Brief

DVRs in half of homes by 2016

Analysis from MagnaGlobal predicts the percentage of US TV homes that also have DVRs will reach 50% in 2016 (up from roughly 33% in 2011).  Even more homes will have access to Video-on-Demand, at 58% of TV homes in 2016 (up from 46% last quarter).  Finally, they predict that in 2016, the percentage of homes totally reliant on the Internet for media consumption will reach 15%.
These all reflect a transition to a different model of TV use and consumption that seems to be emerging - a movement from a purely passive audience to one that is increasingly in control of their media consumption.

Source: "Report: DVR Households to Hit 51.3% In 2016", Broadcasting & Cable.

IPTV - Expect High Growth Rates

IPTV providers around the world should continue to see rapid market expansion over the next few years, according to a recent report released by SNL Kagan.  They project that subscriptions to IPTV services will double in the next three years, reaching 70 million.
The rosy forecast results from an IPTV adoption rate that has averaged a 92.4% compound average growth rate over the last 6 years.  The also think that the current push for "TV Everywhere" and IP-based Video on Demand (VOD), and continued diffusion of broadband networks will drive demand, leading to a doubling of IPTV video service revenues in the next three years.  Currently, IPTV accounts for 6% of all global subscription-TV revenues; SNL Kagan predicts that by 2014, it will account for 11%, between IPTVs rapid growth and the slowing down of cable and satellite providers.

Expect further market expansions and realignments, as consumers embrace the choice and flexibility of IPTV video services (and the lower distribution costs, compared to older video media models).

Source: "Major IPTV Adoption Means $27B Revs by 2014," Media Daily News

TV for iPad app

Time Warner Cable has launched a new iPad app that extends its adoption of the "TV Everywhere" concept.  Initially, the app will offer access to 30 cable channels through a subscriber's home WiFi network.  TW indicated that over time, they will add capacity to access programming outside the home, to set a DVR to record programs, and to use the iPad as a remote control.
Comcast had offered a similar iPad app last November allowing access to video-on-demand (VOD) programs, and plans to offer access to live programs later this year, and plans to offer an Android app accessing VOD later this month.

Source: "Time Warner Cable Offers TV-Watching App,"  Online Media Daily

TV's Changing Behavior- DVR Penetration and Use grows

Revised projections from a Magna Global study suggests that both DVR (Digital Video Recorder) and VOD (Video on Demand) penetration in the US will reach 50% by 2016. 
In the meantime, a recent Nielsen study suggested that DVR use added 2.3 ratings points to total day usage, and 7.9 ratings points for primetime programing (in DVR homes).  More importantly, it showed that DVR viewers did watch commercials on their DVRs.  Nielsen also reported that current DVR penetration varied by ethnicity (40.3% White, 35.4% Asian, 30.3% African-American, 29.8% Hispanic), and income.

Source: "Play It Again, Sam," Research Brief form the Center for Media Research