Comcast TechnologySolutions - leaderboard - 4-20-17

Analysis for 'SVOD'

  • Parks: Living Room OTT Use Soars in Past 7 Years

    Here’s one measure of how popular watching online video in the living room has become: according to new research from Parks, which was presented at NABShow, among broadband households, over 25% of viewing done on TV was from online sources, up from 10% in 2010. No surprise, linear broadcast TV saw the biggest decline over that period, dropping from 62% of TV time to 41% of time.

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  • VertaMedia - full banner - 4-3-17
  • VideoNuze Podcast #367: Netflix Falls Short in Q1; Data Comes to TV Ads

    I’m pleased to present the 367th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    Once again, we’d like to thank our podcast sponsor Akamai Technologies, which will show its Media Acceleration capabilities and range of cloud-based solutions at the NABShow in Las Vegas, in booth SL3324. There's still time to schedule a meeting.

    First up on this week’s podcast we discuss Netflix’s Q1 earnings which were released earlier this week. Netflix came up a bit short of its own forecasts for both domestic and international subscribers. Colin provides his analysis of what happened and what might be ahead for Netflix in 2017.

    Then we shift gears to discuss how TV advertising is increasingly about data-enablement. I share further details on my post yesterday on Videology’s research, and also explain iSpot.tv’s new conversion solution. TV is in a race to provide improved targeting and better ROI to advertisers who are being avidly pursued by Google, Facebook and other digital competitors.  

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  • IBM Cloud Video - full banner - 4-24-17
  • Downloading Continues to Gain Momentum

    Downloading video for offline playback continues to gain momentum with Showtime announcing late last week that it has enabled downloading of its entire roster of programs from its standalone subscription and TV Everywhere apps at no additional cost. Downloading is available on iOS and Android phones and tablets plus Amazon Fire tablets.

    Loyal VideoNuze readers know that I’ve been an enthusiastic downloading proponent for 4 1/2 years, back to when I first experienced TiVo’s implementation of it via TiVo Stream. I immediately saw downloading as a killer app because it allowed high quality out-of-home viewing independent of shaky or non-existent WiFi hotspots and/or eating up expensive mobile data plans (if they could even support video streaming).

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  • IBM Cloud Video - full banner - 4-24-17
  • Amazon’s NFL Deal is Further Evidence of How Prime is Upending the Video Industry

    Amazon further reinforced its position as the most influential company in the video industry with news late yesterday that it had won the rights to stream the NFL’s 10 game Thursday night football package for $50 million, with plans to make the games available for Amazon Prime members only (they'll still be broadcast alternatively on CBS and NBC, and on NFL Network). The sum is a whopping 5 times more than the $10 million that Twitter reportedly paid for the same rights last season.

    The key to understanding Amazon’s willingness to pay up for the TNF rights is the power of its unique business model, based on Prime. As I wrote last November, Prime is the linchpin for Amazon’s ever-expanding video initiatives.

    At last summer’s Recode conference, Amazon CEO and founder Jeff Bezos plainly articulated Prime’s value to the company in driving greater customer loyalty and increased purchases (if you’re a Prime customer, you no doubt know this dynamic yourself). And keep in mind, with approximately 60 million members paying $99 per year, Prime generates $6 billion in revenue for Amazon before a single purchase has been made.

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  • VertaMedia - full banner - 4-3-17
  • Never Mind Apple Bundling Premium TV Networks, Amazon is Really the One to Watch

    Recode reported a couple days ago that Apple is potentially looking to sell online subscriptions to HBO, Showtime and Starz in a single bundle to subscribers. Since Apple has made so little progress in video compared to its peers, a bundling move like this could give it a boost. But if I were handicapping which company is much more likely to sell HBO, Showtime and Starz in a discounted bundle - and succeed with it - I’d put my money on Amazon far sooner than Apple.

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  • VertaMedia - full banner - 4-3-17
  • "Mad Men" Creator Matthew Weiner Explains How SVOD’s International Distribution Changes TV’s Economics

    “Mad Men” creator Matthew Weiner explained how Netflix’s and Amazon’s international distribution capabilities are changing the TV industry’s economics as well as mitigating domestic viewership fragmentation, in an interview he did with Videology’s Chairman and CEO Scott Ferber at the company’s “Full Frontal 2017” event on March 8th.

    It’s no secret that both Netflix and Amazon are aggressively promoting their SVOD services in approximately 200 different countries around the world. But Weiner explained how having their own international distribution footprint distinguishes them from other networks, enabling them to pursue projects with the intention of globally distributing the programs without the necessity of having partners.

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  • VertaMedia - full banner - 4-3-17
  • Research: Pay-TV’s High Cost is Creating Huge Industry Vulnerability

    TiVo has released its 16th quarterly Video Trends Report (previously published by Digitalsmiths, which was acquired by TiVo in 2014) and the key takeaway is that pay-TV’s high cost is creating huge industry vulnerability that is already showing up in increased cord-cutting/cord-shaving and higher penetration and use of SVOD services. It also looks possible that interest in skinny bundles could be fueled by their low cost compared to traditional pay-TV.

    TiVo found that in Q4 ’16, 17% of respondents didn’t subscribe to a pay-TV service, and of this group, 19.8% cut the cord in the last 12 months. No surprise, “price/too expensive” was the top factor influencing respondents’ decision to cut the cord, cited by 80.1% of them. But in second position was using a streaming service such as Netflix/Hulu/Amazon, which was cited by 48.3% of respondents.

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  • IBM Cloud Video - full banner - 4-24-17
  • Survey: 23% of U.S. Adults Now Stream Netflix Daily, Quadrupling Since 2011

    More data today showing the ascendance of Netflix into Americans’ lives. Leichtman Research Group’s 15th annual On-Demand TV survey found that 23% of U.S. adults now stream Netflix on a daily basis, nearly quadruple the 6% who did back in 2011. 81% of Netflix users say they watch Netflix on a TV set. And 54% of adults said they have Netflix, vs. 53% having a DVR, the first time the penetration lines have crossed (in 2011, 44% had a DVR and 28% had Netflix).

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  • Beachfront - full banner - 3-26-17
  • VideoNuze Podcast #357: Super Bowl Streaming and NFL Viewing; Assessing HBO Now’s Growth

    I’m pleased to present the 357th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    First up, Colin shares his experiences streaming the Super Bowl on numerous services and devices. Overall the video quality was pretty strong, especially on Sling TV. Colin also used the Fox VR app with Google Cardboard and relays his reactions.

    While Super Bowl LI was one of the best-viewed in history, NFL ratings this past season declined across the board and we discuss what’s likely happening. As I wrote earlier this week, the wide adoption of ad-free SVOD feels like a major culprit.

    We then transition HBO Now, which Time Warner reported earlier this week now has over 2 million subscribers. Neither Colin nor I are super-impressed with HBO Now’s growth, especially by comparison with Netflix’s performance in the same time period. We both think HBO Now’s relatively high price of $15/month is the key issue.

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  • VertaMedia - full banner - 4-3-17
  • HBO Now Tops 2 Million Subscribers, But Pace of Additions Looks Static

    Time Warner’s CEO Jeff Bewkes said on this morning’s earnings call that HBO Now has passed the 2 million subscriber mark. That would be an increase from the 800K HBO Now had at the end of 2015.

    On the one hand, gaining 2 million subscribers since launching HBO Now in April, 2015 is a positive sign of market acceptance for the SVOD service, which entered the market relatively late. But on the other hand, the pace of HBO Now’s monthly subscriber additions seems static, suggesting the service has not been able to accelerate its momentum.

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  • VertaMedia - full banner - 4-3-17
  • VideoNuze Podcast #355: Millennials Go Cordless, Netflix Reality TV, YouTube Targeting and FCC’s Overhaul

    I’m pleased to present the 355th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    This week we discuss four topics that caught our attention and we wrote about: research from GFK MRI that 30% of U.S. millennials are now “cordless” (here), Netflix’s move into reality TV programming (here); Google enabling YouTube ad targeting based on users’ searches (here) and the new chairman of the FCC, Ajit Pai (here). We dig into all of these topics and discuss their implications.

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    Click here to listen to the podcast (24 minutes, 49 seconds)



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  • Beachfront - full banner - 3-26-17
  • T-Mobile Zings AT&T Again With New Hulu Offer as Wireless and Video Combine

    T-Mobile is continuing its attack on AT&T by introducing a bonus of one free year of Hulu for AT&T customers who switched to T-Mobile under a prior offer where they received a free year of DirecTV Now. T-Mobile has been sniping at DirecTV Now’s sketchy service since it launched, so its new offer amounts to a make-good for customers who made the switch, but may have ended up feeling underwhelmed by DirecTV Now.

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  • IBM Cloud Video - full banner - 4-24-17
  • Amazon’s New Anime Strike is the First of More Branded SVOD Services to Come

    Last Thursday Amazon announced Anime Strike, its own branded SVOD service, available to Prime members in the U.S. for $4.99/month. Anime Strike is the first SVOD service from Amazon (aside from its flagship Prime Video service), and based on an interview I did with Michael Paull, VP for Amazon’s Channels program, it won’t be the last. Rather, Anime Strike is the latest signal of Amazon’s ever-expanding video ambitions.

    The Channels program itself (which launched in December, 2015 and was originally called the Streaming Partners Program), has grown by leaps and bounds, and now includes over 100 different SVOD services that Prime members can easily add, with all video viewable in the Prime Video app across devices. For content providers, Amazon handles all hosting, delivery and billing, in exchange for a revenue share.

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  • Beachfront - full banner - 3-26-17
  • Late to the Party, Apple Now Plans to Enter Crowded Scripted TV Market

    Talk about showing up late to the party: the WSJ is reporting that Apple is now planning to invest in original scripted TV shows and movies. Whether the move actually materializes though is unclear. But if it does, it would be happening years after countless false starts and rumors about the company’s plans to build out a content strategy. Importantly, it would also happen as the number of scripted TV shows rocketed to over 450 in 2016, marked by “Peak TV’s” escalating budgets and intense competition.

    According the WSJ article, Apple is engaged with various producers and could be offering scripted TV shows by the end of 2017. Apple’s commitment still seems modest by the standards of Netflix, Amazon and numerous TV networks, with just a handful of productions planned.

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  • IBM Cloud Video - full banner - 4-24-17
  • As "Peak TV" Grows, SVOD Providers Will Become Even Stronger in 2017

    Just prior to the holiday break FX released its latest update on “Peak TV” - the name company president John Landgraf coined a couple years ago to describe the exploding number of original scripted TV programs being produced. According to FX, which is tracking Peak TV, in 2016 there were 455 scripted originals, up from 421 in 2015 and 182 in 2002.

    In that 14-year time period, the biggest volume contributor has been ad-supported cable TV networks, increasing from 30 shows in ’02 to 181 shows in ’16. But zeroing in on just the last 3 years, it’s the SVOD providers (Netflix, Amazon and Hulu) that have had the biggest impact. The group tripled their output from 24 shows in ’13 to 93 in ’16 while ad-supported cable TV rose from 161 to 181, broadcast TV bumped up from 131 to 145 and premium TV (HBO, Showtime, etc.) was basically flat, from 33 in ’13 to 36 in ’16. Put another way, in 2013, SVOD accounted for just 6.9% of all scripted TV and in 2016 they tripled their share to 20.4%.

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  • VertaMedia - full banner - 4-3-17
  • Research: Only 13% of SVOD Subscribers Take More Than Two Services

    Here’s more evidence that most smaller SVOD services are fighting for the attention of a tiny group of prospective subscribers. New research from Limelight Networks indicates that just 13% of SVOD subscribers in the U.S. and U.K. take more than 2 services. Of all respondents, 60% subscribe to SVOD, broken down as follows: 33% taking 1 service, 19% taking 2 services, and approximately 8% taking 3 or more services (which translates to 13% of overall SVOD subscribers).

    Since Netflix, Amazon and Hulu have by far the biggest market share, they undoubtedly are among the first 2-3 services most people subscribe to. As a result, all other SVOD services, which in the U.S. exceeds 100, are vying for attention from the sliver of people who go beyond the big 3 to subscribe to others. The data highlights how difficult it’s going to be for the dozens of smaller SVOD services to achieve scale.

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  • Beachfront - full banner - 3-26-17
  • Amazon Rolls Out Prime Video to 200+ Countries

    Amazon has officially made Prime Video available in over 200 countries and territories around the world, a move that has been expected. Prime Video will be included for Amazon Prime members in Belgium, Canada, France, India, Italy and Spain. Elsewhere, Prime Video is being offered for a special rate of either $2.99 or 2.99 Euros per month for the first 6 months, after which it will revert to the standard rate of $5.99 or 5.99 Euros per month.

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  • IBM Cloud Video - full banner - 4-24-17
  • HBO is Losing Ground to SVOD Competitors By Maintaining Market Skimming Price Strategy

    When HBO Now launched in April, 2015, its $14.99/month price was well above competing SVOD services such as Netflix ($11.99/month), Hulu (ad-free $11.99/month) and Amazon ($8.99/month or included with Prime for $99/year). On the one hand, an argument could be made that an HBO subscription is more valuable due to HBO’s rich library and therefore should be priced higher than newer competitors. But HBO’s market-skimming high price strategy means its more aggressively priced competitors are growing far faster than HBO, enabling them to have greater scale, which will be the key to future success.

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  • Beachfront - full banner - 3-26-17
  • Netflix Belatedly Offers Downloading

    In a move that was long, long overdue, Netflix announced yesterday that it was enabling downloading of content to iOS and Android mobile devices. Not all shows and movies are available for download, but importantly, it looks like most, if not all, of Netflix’s original productions are included. I tried downloading  last night and it worked perfectly.

    I’ve been saying since 2012 that downloading is a bona fide killer app, after I first started using TiVo’s excellent downloading feature to watch recordings on my iPad when traveling. Amazon totally understood the value of downloading as well, enabling it back in September, 2015. In a press release that both touted the new feature and implicitly tweaked Netflix, Amazon proclaimed it as “The First and Only Subscription Streaming Service to Offer This Feature.”

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  • VertaMedia - full banner - 4-3-17
  • Prime’s Unique Business Model is Fueling Amazon’s Ever-Growing Video Ambitions

    Evidence of Amazon’s expansive video ambitions is everywhere these days. The company has transformed itself into arguably the most influential industry player heading into the new year. There are now so many Amazon video initiatives, it’s getting hard to keep track.

    First and foremost, it’s critical to understand the most important attribute Amazon is bringing to bear in video, that enables everything else and makes it such a formidable new competitor: its unique business model, based on Prime. As Amazon CEO Jeff Bezos explained in a Recode interview this past summer (see 37:32 cue point), Prime has become a “physical digital hybrid membership program that is unlike anything else.” Bezos clearly spells out how video helps drive new Prime memberships and retention. Prime members are more loyal to Amazon, purchasing more products.

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  • Beachfront - full banner - 3-26-17
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