Infographic shows rise of online video viewing

From the fine folks at ComScore:

Some highlights:

-- Broadcast network live viewing down 30% over last 5-6 years
-- 87% of US Internet users report regular online video viewing
-- 40% of online video viewing is done on mobile devices
-- 15% of internet users report watching video on smartphones daily

-- viewing on tablets and OTT are leading a shift to online video viewing

Source:  ComScore Infographic Shows Marketers Where the Viewers Are,  OnlineVideo.net

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.

"TV Everywhere" Challenged

The concept of "TV Everywhere" - the ubiquitous access to TV programming on any device, at any time, and at any location (including while mobile) is facing a critical challenge from those seeking to control access so as to maximize licensing fees and revenues.  This can be seen in several recent trends:

1. Lawsuits against Aereo and similar services that seek to make local broadcast station signals accessible from mobile devices (without actually putting a tuner and antenna onboard).  Almost as soon as the product started trials in several cities, networks and big station groups filed suit challenging the legality of the practice.  The broadcasters have lost at every court level so far, and have asked the Supreme Court to weigh in on the temerity of anyone helping people to watch free over-the-air TV broadcasts without paying them.  I'm hoping that the case gets cert, so that a Justice can ask the network lawyers - "So, in essence, you want to prevent people from watching free over-the-air TV signals on anything other than a TV set?" - or - "You're arguing that you deserve to be paid so people can watch your free broadcast signal?"  The whole idea that stations - who are losing audiences to competition - wouldn't want to expand their potential audience base is kind of nonsensical, until you realize that stations and networks are increasingly turning to licensing fees as a major revenue source.
2. The drive for maximizing licensing fees through retrans fees for local stations.  CBS in particular is pushing the idea that cable MSOs need to pay $3-5/mo. per subscriber in retransmission fees for their local affiliates.  While this may seem a good short-term strategy, it's likely to lead to some MSOs (which remain - with DBS & telco cable operators - the major source for video programming for 90% of US households) dropping the local affiliates.  And if successful, it'll sure lead to sticker shock if the Big Four jacks up subscription costs $15-20 a month for watching "free" TV, and probably a lot of people selecting to not take that bundle.  The broadcasters seem to be realizing that "free" and loading up on licensing fees are incompatible, so they're resorting to classic fear-mongering of taking all the good programs (and sports) to pay cable.  
3. In the meantime, ABC is looking to regain control of online access to its programs, by seeking to block subscribers of DirecTV, the Dish, and TWC (TimeWarnerCable) from being able to access recently aired programs online.  It's also removing access to that programming from the free version of Hulu+.  Those wanting access will have to subscribe to Hulu Plus, or purchase episodes at $2.99 a piece from iTunes or Amazon.  CBS and Fox are also said to be blocking online access to recent programs and/or looking to move access behind paywalls.  The blocking is said to be limited to systems without "authentication" deals, which assure that only paying customers get access to current programming.

"TV Everywhere" had been set to take off, with big gains in mobile and online viewing, and an increase in authentication protocols.  But a lot of that is predicated on the idea that online and mobile viewing is free, or at least included in existing subscription levels.  Behaviors that seemed designed to make such viewing more costly, such as the efforts outlined above, are not likely to be well-received by consumers.  After all, they have an exploding universe of free content alternatives that they can choose from instead.  With a few exceptions, moving network series and programming from "free" to "pay" is likely to be disastrous - particularly for an industry that still is funded predominantly by advertisers and audience size.

Sources -  Supreme Court May Decide Jan. 10 Whether to Hear Aereo Case,  TheWrap

Could Supreme Court kill free sports, network programs on TV?  Philly.com

ABC to block DirecTV, TWC, Dish subs from watching TV series online, FierceCable

Latest Research on Online Video 3: Magid Connected Culture report

Three research reports on aspects of video/TV viewing and use have been released recently.

A nationwide study from Frank N. Magid Associates characterizes the role of mobile devices as "the beating heart of content and commerce."   Perhaps a bit of hyperbole, but the rapid adoption of smartphones and tablets, and the increased availability of compelling high-quality content is certainly impacting, and shifting, audience viewing behaviors.  The audience for mobile TV and video is there - the report finds 74% of U.S. "mobile consumers" have a smartphone, and 52% use tablets. 71% of tablet viewers, and 45% of smartphone viewers, now watch long-form TV, movies, and sports content on their devices.

Perhaps the most striking indication of that shift is the finding that digital and mobile devices are becoming the dominant source of entertainment for the 18-34 age group: smartphones/tablets account for 35%, PCs/laptops at 34%, while traditional television trails at 21%.

"Consumers have made the clear leap into mobile long-form," says Andrew Hare, Magid Research Director. "Beyond just TV and traditional video consumption, however, the visual culture has taken over with the growth of Instagram, Tumblr, Pinterest, Snapchat, and Vine showing consumers increasingly prefer to communicate through images and video."

Sources -  'Mobile is the new TV', finds Magid study,  Broadcast Engineering
The Heartbeat of Connected Culture - Magid Smartphone and Tablet Study 2013

TV, Media Execs Embrace Multi-Platform Distribution

A recent survey of broadcasters and media executives found that three out of four believe that online, social, and mobile platforms are driving audiences to watch more television content.
  The Avid broadcast survey interviewed more than 200 "executives and decision-makers from leading broadcast and post and professional organizations in Europe and North America," who were asked questions about where they thought their businesses were headed, and the role and impact of a variety of digital delivery platforms.
   Two thirds of the media organizations indicated that they were optimistic about their future, despite declining audiences and revenues in many traditional media operations.  The optimism was more than wishful thinking - it was linked to the belief that new digital distribution platforms would offer "unprecedented" opportunity for business growth. The researchers identified three drivers for continued growth - increased audiences, multiplatform distribution (MPD), and revenues growth potential from both advertising and audience payments.
  As noted above, 74% of respondents agreed with the statement that the Internet (digital video delivery) will also drive viewers to more traditional linear media (Broadcast, Cable, Satellite).  As for fears of digital options further fragmenting their markets, more than half (55%) of the executives felt that current economic uncertainty was a bigger threat.  They also felt that current and emerging digital video delivery options gave them entry into new and expanded markets - an entry that could be exploited in a variety of ways.  85% of respondents said that multiplatform distribution was critical to capturing new markets and their growth potential.
  One largely undeveloped opportunity is the ability to access and exploit existing content archives.  Respondents felt that, on average, 40% of existing archives could be monetized (potentially profitable) - but at this point they felt that only a fourth of their archives were accessible.  Expanding access could make more valuable content readily available.  The survey found that 83% of respondents felt that all premium video services would be available online, as a means of increasing accessibility and market size. Almost tw0-thirds (63%) also felt that MPD opened a new market for professional content. But most critically, the media executives seemed to be recognizing the full range of opportunities that multiple digital platforms offer - not only access new and expanded markets, but potential to add value to their content streams by customizing them to specific platforms and individual customers.  Adding value increases demand generally, and if high enough, it can justify direct payments from consumers.

Gary Greenfield, CEO and chairman of Avid, says "... media organizations worldwide are moving from addressing homogenous audiences to delivering personalized experiences... this change in the relationship between broadcasters and their audiences... forces a change in business models... “

More than three-quarters of those surveyed (78%) thought that within the next ten years, most of the content delivered would be customized for individual viewer preferences.  70% felt that most content would also be optimized for the particular device viewers are watching the content on.
  Survey participants also thought that moving towards an emphasis on exploiting content assets, by expanding accessibility or adding value through customization, could also be beneficial on the operations/cost side.  When asked about the potential effects of an increased emphasis on asset-based workflows, 75% felt it would increase business efficiency and the bottom line, and two-thirds (67%) felt it would enable new business models.  More specifically, 79% felt that implementing asset-based workflows would enhance operational agility, 69% indicated it would enable better automation, and 62% thought it would largely solve the problem of increasing content volume.
  Exploring new business models and markets opens the way for new growth opportunities at a time when the traditional broadcast model appears static or in decline.  The media executives recognize this, and are looking for their future growth to occur in other areas: 85% see growth potential in multi-platform services; 78% look to new markets and increased audiences for growth; 71% feel those increased channels and audiences will lead to increased advertising revenues; and 70% see growth from audience direct revenues (fees/sales).  There's also a general recognition of the potential of the Cloud; almost all respondents indicated they were already using the Cloud (24%) or exploring how to use the Cloud in their future operations (75%)

  For me, the survey results confirm that today's broadcasting and media executives now recognize the fundamental market transformation that digital has brought - they no longer see themselves as monolithic "broadcasters" relying on long-established revenue streams.  They have recognized that they're primarily purveyors of content in an increasingly competitive market; that the source of their value is content and not merely a signal; and they should seek and embrace multiple mechanisms for exploiting their content and the multiple revenue streams available.  While the various MPD options have yet to show they can fully replace losses in traditional revenue streams, early efforts suggest that when fully developed, the added revenues from multiple streams and operational savings could provide the basis for broadcaster survival into the future. 

Sources -  Multiple Digital Platforms Boost TV Viewing,  Research Brief blog
To request research results, go to Avid/Ovum The Future of Digital Media Survey

No Surprise - Most Mobile Video Delivered Through WiFi

The latest report from mobile video ad network Rhythm NewMedia suggests that 70% of videos delivered to mobile devices uses WiFi for the data streams.  That's up from last year, when about half used WiFi for mobile video access.  (The numbers are for delivery of their videos, but should reflect general use patterns).  Their most recent quarterly report also indicated that half of tablet users watched videos or clips on their tablets more than once a week; the report for the previous quarter noted that people had a strong preference for tablets over smartphones for their viewing.  Rhythm NewMedia also noted that a survey indicated that more than half of tablets are shared by 2 or more users, while smartphones are rarely shared.
  Another survey result suggested that mobile news users may be starting to regularize their news consumption - about half of those who visited a news site on their mobile devices "today" had also visited that site "yesterday".   This suggests a certain stickiness that could evolve into habit.
  The report suggested several factors that contributed to the continued growth of mobile video use and the increased use of WiFi - the proliferation of WiFi networks, particularly in homes; the rapid adoption of tablets (primarily used at home); and a conscious shift to WiFi from wireless as wireless operators shift to capped data plans that can ring up heavy data charges for mobile video users.  In addition, there is a separate trend in terms of increasing use of online videos and video streaming - a report from Cisco projects continued growth in the share of all mobile traffic.  In 2011, video accounted for 52% of mobile data flow; Cisco predicted that video will have accounted for 58% of all mobile traffic in 2012.

Source - Rhythm: Wi-Fi Powering Most Mobile Video,  Online Media Daily

New niches and targets? New research on online & mobile

There have been several interesting reports on how various segments of the audience are using, or are impacted by, aspects of the evolving media world.

  Mentioned in a previous post was the interesting finding that college students felt that advertising is still the most influential medium for ads, although.  New research reported by the Association of National Advertisers suggests that company and product websites are the best way to reach multicultural audiences.  And consulting firm Altman Vilandria & Co.  is reporting that use of tablets for TV and movie viewing is growing most quickly among older viewers. The use of tablets for video viewing grew, in the last year, from 11% to 19% among those 55 or older, and from 15% to 24% for those in the 45 to 54 age group.

“The implications for marketers and the future of advertising are profound: video advertising on tablets can be more timely (inserted at time of viewing), more targeted, and more interactive than has yet been possible with TV advertising,” said Jonathan Hurd, author of the (Altman Vilandria & Co.) study.

There's other interesting research coming out about "second-screen" viewing (watching TV & video on a device other than a TV set). Research from TDG suggests that second-screen viewing doesn't detract much from regular TV viewing - they found that in key demographics there was little impact on regular TV viewing (only a "negligible" proportion of those 50 or older reported a decline in normal TV viewing, while for the key 18-49 demographic, only 15% reported a decline in regular TV viewing. In fact, for that demographic, 39% of those watching video and TV on tablets said that their tablet viewing led them to increase their regular TV viewing. The idea that tablet or mobile TV viewing supplements traditional TV viewing rather than acting as a substitute is also supported by the recent Nielsen Cross-Platform Media Report (see this post).
  And then there's the MediaMind study results that suggest that online video ads are much more effective (in generating click-throughs) than online banner ads or rich media ads.

What all of these results suggest is that "second-screen" TV viewing through online and mobile devices may be more efficient and effective outlets for marketers and advertisers who are interested in targeting particular niche audiences. As these outlets continue to develop, they should be able to attract advertising and marketing dollars - especially once reasonable audience measurement metrics emerge.

Sources - Tablet Viewing Rising In Popularity For Older Viewers, Not Hurting TV Viewing, VidBlog
Digital Marketers Reach Multicultural Demos Best On Web Sites, OnlineMediaDaily

Competing Interpretations of Audience Shifts

The release of the latest Nielsen Cross-Media report generated some interesting spin in reporting.
  The basic underlying results on aggregate viewing are that live TV viewing (watching broadcasts in real time) is slightly down, while watching time-shifted programming is slightly up, and using TVs for something other than traditional TV programming (i.e, watching movies on discs or playing games using the TV set as the display screen) was more or less steady.  In total, U.S. viewers watch an average of almost 35 hours a week of TV content, 5 hours using the Internet, and a bit over an hour and a half using their game consoles, and about an hour and a half watching content from DVD (and Blu-Ray) players. In addition, the percentage of U.S. homes with TV sets fell to 96%.

    The Nielsen report also indicated that a viewers were increasingly using a range of devices other than the TV set to access and watch live programming.  Compared to the previous quarter, the average time watching time-shifted programming, watching online video on the Internet, and watching video on mobile devices all increased.  The report also noticed a lot of variation in viewing habits -

Even so, consumer video use and interaction by screen and device varies greatly by life-stage and lifestyle, by age, gender, and by ethnicity. No longer does one size fit all, and trends continue to emerge.

  So how were these results spun?  Ad Age led their coverage with the headline "Live Viewing Still Overwhelmingly Dominates TV"; for online news site MediaDailyNews, it was "Time-Shifted Viewing Up, Live Viewing Dips"; the Fox Business site headlined "Nielsen: Fewer Watch Traditional Cable, But They Still Own TVs"; Radio - TV Business Report headlined "Nielsen could re-define U.S. TV households," suggesting that the definition be expanded to those homes where TV programming is accessed through devices other than TV sets.  All spinning to their target audience.

Personally, I'd go with Nielsen's lead -

"IT’S CHOICE! US Consumer Appetite for Video Continues to Grow."

Sources -  Live Viewing Still Overwhelmingly Dominates TV,  Ad Age
Time-Shifted Viewing Up, Live Viewing Dips.  MediaDailyNews
Nielsen's State of the Media: The Cross-Platform Report, Q1, 2012

Better Authentication Boosts TV Everywhere

NBC partnered with Adobe this summer to authenticate its Olympic coverage video streaming efforts.  A recent announcement from Adobe indicated that its Adobe Pass system authenticated more than 88 million video streams during the Olympics, capping a ten-fold increase in authenticated streams..

That represents “the highest number recorded for a single event in TV Everywhere history,” according to Campbell Foster, marketing director for Adobe Media & Ad Solutions.

Adobe Pass allows users to authenticate themselves and their multiple devices with a single login, and without having to acquire additional hardware or software, or entry of credit card information.  By simplifying the authentication process - without sacrificing security and minimizing content owners' concerns about lost revenues.  The system is now in use by more than 150 pay TV providers and 25 networks.
They hope is that streamlining and simplifying a secure authentication process will promote use of online and mobile options for video content delivery, fostering content use across platforms and fostering the rise of "TV Everywhere."

Source - Adobe Trumpets TV Everywhere Streaming Success, Online Media Daily

Biggest Blunders in Mobile Broadcast TV

Fierce Wireless has an interesting series of posts on the worst wireless blunders.  I'll focus on one that's right on the money - the failure of U.S. mobile broadcast TV to find or develop a market.  The post focuses on is the various efforts to launch a nationwide network dedicated to mobile TV, as distinct from using existing mobile networks to stream TV, whether through dedicated channels (MobiTV) or streaming apps for smartphones or tablets.
  There's already been three major failures in mobile TV - the most widely known is probably Qualcomm's MediaFLO, which actually had some buzz at NAB conventions and had several test markets going for a while.
  In addition, Crown Castle (known for building and operating broadcast towers) tried to push its Modeo service beginning in 2004, using the international Digital Video Broadcasting - Handheld (DVB-H) technology.  It offered the network to operators on a wholesale basis, but never secured major carrier cooperation.  It even ran a beta test in New York, starting in January 2007.  By July Crown Castle had pulled the plug, and leased its nationwide wireless spectrum to other telecomm operators.
  A second company, Aloha Partners, also tried to develop a nationwide service using the DVB-H technology, beginning in 2006.  Aloha managed to at least interest a major wireless carrier (T-Mobile USA) in testing their system in 2007, which they claimed could offer up to 24 channels of programming.  The test evidently didn't go so well, as Aloha sold its wireless spectrum to AT&T in October 2007.
  Qualcomm's MediaFLO service was launched across the U.S. in mid-2009, with deals with both Verizon and AT&T to sell phones capable of receiving the approximately 12 channels of content that FLO offered.  Subscriptions to the FLO service through the carriers ran about $15 a month.  In October 2009, Qualcomm supplemented the carrier service by marketing a personal FLO device for $249 and offering subscriptions to channels starting at $8.99 a month.  Even after several price cuts, the number of subscribers never approached the number needed for long-term viability, and Qualcomm closed down the FLO service in the spring of 2011, selling the wireless bandwidth to AT&T.
  Many of the problems of these systems were that they only offered a fraction of the channels available, and often mixed content from multiple channels (often time-delayed and time-shifted) to the point where consumers couldn't rely on finding the programming they wanted.  But the biggest problem was the fact that these early systems relied heavily on cellphone technology - which at the time, meant very small screens, and severely shortened battery life (processing and displaying video uses much more power than voice calls.)  But the primary issue was that there wasn't much (if any) demand for mobile TV, and the various systems certainly didn't do much to try to build up demand.

  That's not to say that mobile TV will never succeed - handset and device improvements have kindled new interest in watching video content on phones and tablets; wireless broadband and "TV Everywhere" are helping consumers determine the value of mobile TV; and a new transmission technology using local TV broadcasters' excess bandwidth may provide more channels - and the potential for simulcasting the local station's programming gives consumers more insight into the possible value of mobile TV.  There's a new proposal for mobile TV (Dyle) being developed as a joint-venture of 12 major broadcast groups (including Fox, NBC, and Ion station groups) that seems promising. The first handsets are entering the market, so there should be some indications in the next year or so as to whether this iteration of mobile TV will have any better luck attracting consumers.

Source  -  The failure of mobile broadcast TV to capture consumer attention - worst wireless blunders,  Fierce Wireless

Will Olympics drive mobile video?

A study commissioned by mobile marketing firm Velti found that 4 in 10 people who follow Olympic sports will do so on on multiple devices.  35% of tablet owners said they planned to use their tablets to get Olympics coverage, as did 37% of smartphone owners.  Of those thinking of using their smartphones, 77% said they anticipate using their devices' browser for Olympics info, and 63% would use an Olympics app.  Anticipated usage for tablets was about the same, with 80% reported likely browser use, and 58% using apps.  Tablet users, however, anticipated use of mobile video was quite high, due in part by both the NBC and BBC promising to stream all Olympic events live.  Half of tablet owners anticipated watching video clips accessed through browsers, and 45% indicating that they were likely to watch live streamed content.

Among other findings -:

*14% of U.S. adults will track the Olympics on three or more devices. 

*Of those who keep up with the Olympics this summer: 36% will watch on TV and a computer; 11% will use a TV and a smartphone; and 10% will use a computer and their smartphone.

*Almost four in 10 people using their smartphones to follow the Olympics will also do so by connecting with others by calling them or via texting.

*Among men 18-34, 83% plan to watch the Olympics compared to 71% of women in the same age group.

I'm "watching" a live women's water polo match on my iPad, using the NBC Olympics Live app, while I'm writing this - and I have to say there has been significant improvements in online video options and quality from previous Olympics.  (And remembering a discussion on ESPN's "Mike and Mike" show this morning wondering when the first all-live Olympics coverage will be.  It's here, now, online - but it's likely that given the huge rights fees, the traditional TV broadcast network will still try to delay broadcasting popular events until prime (advertising) time.

Source -  Olympic Fans Screen Action on Multiple Devices,  OnlineMediaDaily

Goin' Live on Mobile

Results from the Dyle Mobile TV Data Report suggest that more than two-thirds of consumers would watch more TV if live programming was available on their mobile devices.  Using a sample of US consumers in the critical 18-54 age demographic, the study asked about their use of various media devices, as well as their viewing behaviour.
  The study found high penetration levels for many of the media/mobile devices considered - in fact, only 2% indicated that they had none of them. 86% reported owning a cell phone (56% owned a smartphone), 79% owned a laptop, and 71% owned a desktop computer.  One third of the sample reported owning an iPad or other tablet.

  The sample also reported that consumers in the sample used a wide variety of devices and sources when watching TV.  When asked about their viewing habits in the previous month, 85% reported watching live programming on their TV, 59% watched TV content streamed online, 56% watched recorded content on their TV, 32% watched streamed content via a gaming console, 26% watched streamed content on a mobile device, and 22% watched streamed content on an iPad/tablet.  When asked about their interest in watching live mobile TV if it were available, more than half the sample indicated they'd be interested in watching it on their smartphone or tablet.  Interestingly, the two-screen home option was not the mostly likely place that respondents said they would be likely to watch live mobile TV.  While 63% indicated that they'd use live mobile TV at home as an additional TV, 85% had an interest in watching live mobile TV while waiting, 76% would watch in transit, and 74% would use live mobile as a way to entertain kids in a car.  They also reported high likelihood of using live mobile in more intrusive locations (53% at a sporting event, 52% at the gym, and 44% at work).
  As for the types of programming they'd be likely to watch live mobile TV, local news & weather topped the list (81%), followed closely by movies (79%) and national news (75%), while about two-thirds also expressed interest in sitcoms (69%), sports (66%), children's cartoons (65%), and dramas (64%).

The research and report are in support of a joint venture of mobile TV providers from 12 major broadcast TV groups.  I would also note that the sample was not very large, and limited to US consumers in the 18-54 age bracket, so results are not generalizable to the general population, but reflect a core demographic of interest to advertisers and broadcasters.

Sources:  Dyle: Mobile Users Prefer Live TV,  TV Technology
Full Dyle Mobile TV Data Report

Mobile changing media habits

A report from Edison Research on the Smartphone Consumer looked at how and where smartphone owners used their devices, and more interesting for the future of media, looked at the differences between smartphone owners and those without.  With cell phone ownership now approaching 90%, and evenly split between those with smartphones and those with more basic cellphones, media usage differences are likely to start impacting overage media use metrics.  Here's some highlights -

• When listening to the radio at work, more than half of smartphone owners report listening to the radio on their smartphone.  Overall they are more likely to listen to the radio at work through their smartphones than listen over their computers (listening via regular radio still dominates, accounting for 59% of listening)
• Smartphone owners are much more likely than non-smartphone cell phone owners to frequently (several times a day or more) engage in the following media behaviors: browse the internet (46% v. 5%); use social networking sites (34% v. 4%); listen to downloaded music (25% v 3%); listen to online radio (12% v 1%); and watch videos (11% v. 1 %).
• Compared to non-Smartphone owners, those with smartphones: watch less TV (3:20 hrs/day v. 4:05 hrs/day); spend much more time on the internet (3:24 hrs/day v 1:38 hrs/day) - in fact, they spend more time on the internet than they do watching TV.
• Smartphone owners spend more time listening to the radio (2:26 vs 1:52) and less time reading newspapers (0:19 vs 0:26) than those who do not own smartphones.
• 29% of smartphone owners report listening to Internet radio streamed from a cell phone through their car's stereo

While legacy media are likely to initially see this as a negative. a loss in audience, I'd interpret these findings more as a warning.  As mobile devices and broadband capacity improve, people are likely to shift some of their media usage to those devices - the message that legacy media should take from this is that they need to make sure their content is available for those new devices and delivery mechanisms.

Source - The Smartphone Consumer 2012,  Edison Research press release.
Presentation slides accompanying the report

Goin' Mobile - Content

Some quick news items -

The Smithsonian Channel is launching an iPad app as part of an effort to "better serve existing viewers and attract new ones."  The app will provide users with access to hundreds of videos, including a rotating selection of full episodes and specials and a constantly updated archive of short-form videos.  The app will include social media integration, AirPlay integration, tools for building custom playlists, and the ability to receive notifications about the Smithsonian Channel schedule and the availability of new content.

Facebook announced that it will stream multiple FA Cup soccer matches this year.  Last year, FA Cup sponsor Budweiser streamed one match through its Facebook page.  More than 30,000 people watched the live stream of an early rounds match between Ascot United and Wembley FC.  They hope to feature five preliminary round games this year.

Google has begun a YouTube Developer Program to bridge the gap between brand channels and viewers.  The program will emphasize developing templates and applications that channels can use to facilitate video production, and help users find and access content.

The latest Nielsen Cross-Platform Report shows a 36% increase in the number of mobile video users.

A new app called Are You Watching This? constantly analyzes streams of sports data to let users know what games are on and where to find them.  Behind the app is an algorithm that rates games according to the number of exciting things going on, as well as social media ratings by fans.

ZEE Network's digital division is launching a new app that will stream TV and other video channels from India.  Ditto TV is currently available in India, the UK, Australia, New Zealand, and the UAE.  It's expected to be available in the US within several months.  The app currently offers 21 channels, and has partnered with a number of other streaming channels and content providers.

A study from Knowledge Networks finds that the online availability of TV shows increases their viewing, and likeability.  Over 40% of respondents said having programs available online makes them think "more highly of a TV network."  And 20% said that they spend more time watching a network's content after it became available online.

Sources -  Smithsonian Channel Lands on iPad,  Broadcasting & Cable
Facebook to broadcast more live FA Cup matches next season,  MarketingMagazine.co.uk
YouTube Begins to Form Developer Channel Program,  OnlineMediaDaily
TV Sourcing and Viewing Continues to Change, Research Brief from the Center for Media Research
How one sports geek wants to save cable TV with data,  GigaOM
ZEE launches app to stream channels from India,  BizAsia.co.uk
TV Shows With Online Access Improve Reach,  MediaDailyNews

Analog to Digital to IP - News about the Future of TV

The last few days have seen the release of a number of stories and studies that all point to one simple conclusion - IPTV is, or will soon become, the dominant transmission mechanism for TV programming.

  A report from  Needham & Co. suggests that in 2012, the U.S. TV ecosystem will generate more revenue from licensing and subscriptions ($85 billion) than from advertising ($80 billion).  Further, the continued rollout of "TV Everywhere" technology (using IPTV to deliver content to mobile and other devices) is likely to add $10-12 billion a year to the US TV market.  They note that these numbers currently don't include what's being earned on online video sites like YouTube.

Interest in video content will continue to grow. We'll see it in display ads and search engine queries. Brands not only want to monetize pre-recorded content for channels on YouTube and other video sites, but to stream live programming effortlessly from their YouTube Channels to mobile devices. It appears this will become Google's unofficial long-term strategy.

Most of the new IPTV revenue, the report suggests, will come from advertising - as research is beginning to suggest that that Video-on-Demand viewers are less likely to skip standard spot ads than viewers who access programs through DVRs. As the IPTV experience is much closer to VOD than DVR, this suggests that TV Everywhere content can be monetized with standard TV ad loads, pricing, and monitoring.  The report concludes by saying "We believe that TV Everywhere will be one of the primary drivers of valuation growth for today's TV ecosystem over the next five years."

  While global demand is likely to remain high, the recent news for leading U.S. telco IPTV providers is mixed.  Verizon recently announced a halt to major expansion of its IPTV service (FiOS) as well as most system upgrades for existing customers, and seems to be shifting its focus to more the profitable wireless sector.  AT&T's U-verse, on the other hand, is seeing greater-than-expected demand as it continues to build out its network - experiencing delays as it runs out of critical equipment and having to hire more installers.

  Research firm Ovum released a report suggesting that most of the early roadblocks to IPTV are disappearing as newer broadband and IPTV systems continue to diffuse and achieve scale economies.  They suggest that as these improved telco nets expand, IPTV use will shift to those platforms, as well as bringing new audiences and demand for IP-delivered digital video.  Ovum notes that for the 114 million subscribers around the globe who get TV through telcos, less than half get the TV through a telco IPTV feed.  However, demand is high, and with the next-gen systems enabling expanded (and lower-cost) delivery, Ovum predicts that by 2016, IPTV revenues will account for 60% of global telco TV revenue, and 71% of their pay-TV subscribers.


  Mobile devices lies at the heart of the TV Everywhere experience, and there's good news on that front as well.  New research from the Pew Research Center showed that ownership of two main mobile devices doubled over the holidays.  In the one month between mid-December 2011 and early January 2012, both tablet and E-book ownership nearly doubled, rising from 10% to 19% in each case.  Nearly one-third of adults in the U.S. (29%, up from 18%) own at least one of the devices.
  For TV Everywhere, Ultrabooks (fast, slim, light laptops with wireless connectivity and long battery life - like the MacBook Air) may prove to be even a better platform for mobile video viewing.  Juniper Research suggests that with the introduction of a wide range of new models at CES, Ultrabooks will become strong competition for tablets, and predicts a faster rate of adoption than experienced by tablets.  Specifically, they see ultrabook sales growing at three times the rate of tablet sales over the next five years.  Ultrabook sales, regardless of its growth rate, adds to the growing potential audience for mobile video, and is likely to contribute to its growth and diffusion.


  Meanwhile, a NATPE panel addressed the future of mobile video, and most of the panelists were strongly positive:

“The opportunity appears to be enormous by any stretch of the imagination,” said Nielsen Senior Vice President Scott L. Brown, noting the boom in smartphone penetration.

Mike Bloxham, the executive director of the Media Behavior Institute, said: “There’s a huge amount of growth yet to come in mobile-related revenues … we’re almost at a Jurassic stage of development.”

Brown added later that advertising might not even be the dominant revenue source for mobile video, reminding the audience that pay vs. ad-supported business models are still being developed.  Other panelists reported on studies that suggested that there's likely to be increasing demand for live events streamed onto mobile devices.

All said, the future of IPTV, TV Everywhere, and mobile video seems bright, as long as the industry can resolve licensing and rights issues.

Sources - YouTube: Influence TV Everywhere Will Have on Search,  SearchBlog (MediaPost)
TV Everywhere Will Overshadow Hulu and YouTube,  MoBlog (MediaPost) 
Does Verizon Cable Deal Spell Death of FiOS Expansion?  DSLReports.com
Modem shortages lead to delays in Milwaukee U-verse installs,  FierceIPTV
Telco TV delivery to grow to 71% IPTV by 2016 as hurdles fall,  FierceIPTV
Tablet and E-book reader Ownership Nearly Double Over the Holiday Gift-Giving Period, Pew Research Center report.
Ultrabooks Growth To Outpace Tablets,  OnlineMediaDaily (MediaPost)
Mobile Video Primed, Ad Model in Early Stages,  OnlineMediaDaily (MediaPost)

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Redefining TV?

The world of television, and how we experience, is changing.  On one hand, we have the lumbering elephant of network broadcast TV, already beset by the dominance of multichannel distributors and their hundreds of channels of competition.  On the other hand is IPTV and all that brings - streaming video, user-generated video, social media, etc.  Add to the mix the growing prevalence of DVRs and the emergence of mobile TV in myriad forms, and pretty soon you have elephant stew.  Or maybe elephant curry.
Susan Ashworth, in a post on the TVTechnology blog, suggrested that there is an opportunity now to merge the quality content of the professional video industry with the ability to foster connectivity with viewers, and create an engaged, more reliable, and more valuable, audience.

Despite the initial wary eye that broadcasting had for what's being dubbed the "second screen," and its social media clique, broadcast networks and local stations, as well as cable and satellite, have slowly begun to embrace this phenomenon. By pairing a social media component with traditional broadcast solutions, networks are using social media to do everything anew: sensationalize the debut of a new program, exchange info with viewers, encourage speculation on upcoming programming and test their interests.

From initially viewing the Internet as a major threat, the big TV networks are beginning to embrace its potential - making its content available to viewers outside scheduled hours, and exploring the net's (and social media's) potential for promotion.  Led by local broadcasters, they're also beginning to take advantage of the available user-generated content. A group of local stations have partnered with ConnecTV to implement a system that would sync broadcast programs with second screen experiences. As ConnecTV's CEO Stacy Jolna quipped -

"There are new ways of connecting, new ways of advertising, new sways of promoting... This would really light up the TV experience for consumers."

She also notes that while harnessing social media chatter about TV is still in its infancy, broadcasters and networks are seeing the value of immediate feedback, particularly in contrast to the delays (and recent problems of) traditional ratings. 

"It used to be that the only personal connection you had with any on-air talent was if you say them at an event," the Weather Channel's Boss said. "[Social media] is a way to really communicate with and engage viewers in a conversation.

It's a changing world - take advantage of it.

Source:- Defining the TV Experience,  TVTechnology

Scripps TV goes live - on mobile

E.W. Scripps Co.is slated to be the first TV station group to offer regular live video programming streamed to mobile devices.  The mobile effort will use the Internet and mobile apps (available on smartphones and tablets using Apple's iOS or Android operating systems, and for selected Blackberry devices), or through a mobile Web browser. Scripps indicated that the stream may be a simulcast of a station's on-air programming, or other content unique for the stream, and includes the capacity for users to be notified of breaking news alerts.
Adam Symson, vice president of interactive for the Scripps television division, stated: "We'll now close the gap and aggressively deliver live continuous coverage to the massive and growing on-the-go audience." 

While we have a Scripps newspaper and Scripps Networks here in Knoxville, we don't have a Scripps television station, so we're out of luck, for now.

Sources - Scripps Streams Live Video To Mobile,  Media Daily News 
(edit - fix title and source listing)

Use of newer video channels expand, yet total viewing up.

The Nielsen Cross-Media Platform Media Report for the first quarter of 2011 is out, and shows continued growth of mobile and Internet viewing of TV and video content.  Better still, for the industry, total viewing across all platforms is rising, averaging an additional 22 minutes a month per person.  Watching TV in the home largely remained at previous levels,  The increase in total viewing came largely from watching time-shifted programming (up 13% - DVRs are in 40% of US TV homes have a DVR); increased watching of videos through the Internet (up 5%), and watching video through mobile devices (up 41% among users, but only 10% of USTVHH are using mobile for this purpose).
There's a lot more in the report, but I'll leave with this teaser: 91% of US households paid for a TV subscription in the last quarter (or - only 9% of USTVHH rely exclusively on local broadcast TV signals).  While the proportion accessing TV programming through cable or DBS (combined) is relatively steady, there is a slow shift from cable to DBS among US households.  Use of telco-based video delivery services is showing slow but steady growth.  There seems to be a significant generational shift in preferred viewing source - adults 50+ are the most likely to rely on local broadcast sources; those in the 35-49 age group are the most likely to use Internet sources; and 25-34 year olds are the most likely to use mobile devices.

Source:  "Understanding the Video Consumer", MediaPost Research Brief
"State of the Media - The Cross Platform Report, Quarter 1, 2011" Nielsen

Dark Clouds & Raging Streams

I've had a number of posts lately talking about major online players and their cloud offerings (Apple, Amazon, Google) and the growing success of media streams (both music and video - expanded content offerings, Pew Report, Magid report,, Yahoo report).  These and more show expanded use of the Internet for the delivery of media content of almost all forms. In addition, networks are improving their network infrastructure, extending the range of broadband access as well as their capacity to handle high-bandwidth applications like video streaming.

But the vision of the future of media clouds and streams is predicated on having not only a secure, high-speed broadband network, but also on pricing schemes that can accommodate normal usage within basic pricing structures.  If networks aren't secure, people may not want to place their faith in the clouds - and keep programs and content off-line.  And if spending a few hours or more a day listening to streamed music and/or watching streamed  video programming pushes people past their ISP's price-level download caps - to the point where they encounter high per Gb fees - well, that's when users will think twice about relying on streaming for their media use. Several stories from last week raise those spectres. In one, a former US counter-intelligence official told a conference of net security officials that cyber-warfare is an imminent threat. Already, a number of government agencies and large corporations have seen major attacks on their systems.  Another looks at another bottleneck in the network infrastructure - signalling.  Expanding the pipe - the total capacity of a channel is fairly cheap and easy, at least compared to the capacity to get those data packets to the right place in a timely manner.  Mobile networks are experiencing increased congestion as users increase their use of high-bandwidth and increasingly complex applications run on smartphones and tablets.  Some are concerned that the new high-capacity broadband mobile network being launched (LTE) may not be able to cope with smartphone and tablet uses, and the tendency for those users to have their devices remain connected to multiple platforms for long periods.
The darkness on the edge of town, though, is what's happening with mobile and ISP pricing plans.  Here in the U.S., one mobile provider after another are dropping "unlimited data" plans, and many cable operators are placing download caps, or implementing added delays on downloads past a certain limit.  Now most can offer higher caps, if you move to a more expensive service tiers, but the fundamental impact is the same - as the cost of using clouds and streams increases, the value they offer to consumers declines.  This could slow or even halt the development of these and other new ways of delivering media content to potential users.

Sources:  "Ex-CIA Official Warns Black Hat Attendees of Coming Cyber-War", e-Week.com
"Signaling: the other bottleneck?" Telecoms.com
"Verizon Tiered Data Pricing is a Mistake: 10 Reasons Why," e-Week.com

Goin' Mobile - Local TV stations to join the fray

The Open Mobile Video Coalition reported that, based on a survey of its members, 126 local TV stations will be broadcasting mobile digital TV  (mobile DTV) programs by the end of the year.  As most are in larger markets, this suggests that about two-thirds of US homes will be able to receive the signals.  The bad news is that the press report indicates that it's quite likely that no one will be able to watch it, as the the trade group is still working on finalizing standards and providing the technical specs for receivers.  The group doesn't anticipate mobile DTV receivers to be available until sometime next year.

Two other groups have emerged with plans for programming.  The Mobile Content Venture, comprising NBC, Fox, and 10 major station groups, promises to provide national programming (from Fox, NBC, and Telemundo) and some local programming from group stations.   The other programming group, the Mobile 500 Alliance (representing more than 400 stations), will emphasize local programming.  Both plan to start as ad-supported channels, with the potential for some content to require subscriptions at some point in the future.

If I recall correctly, this is about the fourth plan to be announced for local TV stations to use part of their digital signal to provide video programming to mobile devices.  If you add in the various apps and IPTV sites accessible to smartphone and tablet users, apps for major streaming sites like Netflix and Hulu, and the promise of "TV Everywhere", the mobile video field is getting quite crowded.

Source: "Mobile DTV Tally: 126 Stations By Year's End", TV News Check