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Tuesday, September 2, 2014

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  • U.S. Broadband ISPs Add 1.2 Million Subscribers in Q1 '14, Most in 2 Years

    The top 17 U.S. broadband ISPs added nearly 1.2 million subscribers in Q1 '14, notching the best quarter of growth since Q1 '12 (see chart below). These ISPs now have 85.5 million subscribers, with top cable operators accounting for nearly 59% or 50.3 million and top telcos accounting for 41% or 35.2 million. The data is according to Leichtman Research Group.

    The top cable operator ISPs garnered 83% of the quarter's 1.2 million subscriber additions, vs. just 17% for the telcos. This compares with Q1 '13, when the top cable operator ISPs took 72% of net additions, with telcos taking 28%. LRG notes that Q1 subscriber additions historically account for more than Q2 and Q3 additions combined.

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  • IAB: Viewers' Interest in Online Originals Now Exceeds TV News, Sports and Daytime Programming

    In a significant sign of how quickly the market has evolved, the IAB released new research with GfK showing that regular monthly online video viewers prefer online originals to TV news, sports and daytime programming. In addition, online originals are enjoyed almost as much as primetime TV programming. The chart below shows the data - it is a little difficult to understand, but the conclusions are clearly articulated.

    The data was presented at the IAB's NewFronts Insights lunch yesterday, which I attended. The lunch included 5 research presentations from BrightLine, Tremor Video, Unruly, Visible Measure and YuMe.

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  • Analyst: Google Fiber Adopted by As Much As 75% of Homes Passed in KC Neighborhoods

    Google Fiber has captured an eye-opening 75% of homes it passes in certain medium-to-high income Kansas City neighborhoods, according to an extensive new analysis from Bernstein Research. The firm employed a market research company to conduct a door-to-door survey in 5 KC neighborhoods in which Google Fiber has rolled out. This is the first research I'm aware of revealing how Google Fiber may be performing (Google itself has never shared any detailed data on Google Fiber).

    In Wornall Homestead, the highest household median income neighborhood ($116K) Bernstein surveyed, it found that 83.1% of respondents were taking Google Fiber service - 15.3% for the $120/mo pay-TV+ broadband bundle, 52.5% for the $70/mo 1 Gbps broadband-only service, and 15.3% for the free 5 Mbps broadband service. This contrasted with Community College, the lowes household median income neighborhood ($24K) surveyed, in which 27.2% of respondents were taking Google Fiber service - 7% for the $120/mo pay-TV+ broadband bundle, 19.2% for the $70/mo 1 Gbps broadband-only service, and 7.3% for the free 5 Mbps broadband service.

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  • Vindico: Just 34% of Online Video Ad Impressions Are At TV's Quality

    According to new data from Vindico's Adtricity rankings, just 34% of online video ad impressions received a grade of "A or B," equating to TV quality. The definition of "A-B" is a high-quality video ad environment, imitating a TV-like experience, with ads front and center, in a large player and frequently user-initiated.

    Another 22% of video ad impressions received a "C," which is typically an in-banner placement that is viewable on the page. Finally, 44% received a "D-F" which includes video ads that are below the fold, are near inappropriate content and/or suffer from fraudulent practices. The data is part of Vindico's newly-released 2013 annual report.

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  • Study: 70% of TV Viewers Now Consider Themselves Binge-Viewers

    The latest evidence supporting the craze around binge-viewing was released by consultancy Miner & Co., finding that 70% of U.S. TV viewers now consider themselves binge-viewers. Miner defined binge-viewing as watching 3 or more episodes in a single session. For most, binge-viewing is still a monthly activity (90%), followed by weekly (63%) and daily (17%).

    The survey found that 55% of binge-viewers and 61% of frequent binge-viewers were millennials. It also defined three categories of binge-viewers: "Streamers" (35%) who use services like Netflix/Hulu Plus/Amazon; "Marathoners" (18%) who watch TV marathons and "DVRers" (16%) who mostly binge-view using their DVR.

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  • IAB: Advertisers' Interest In TV and Video Is Now At Parity

    As the Digital Content NewFronts gear up this week, IAB has released a study of agency and brand buyers, which, among other things, finds that interest in TV and online video advertising is now basically at parity. When asked how they would allocate their ad spending for their most important product/service, respondents' preference was 51% for TV and 49% for video. As shown in the below chart that compares with 58%-42% in 2012.

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  • Google/YouTube: We're TV's Best Friends

    Late last week Google released research demonstrating the growing impact that YouTube and Google are having on TV show viewership and engagement. Per the chart below, Google found that for a sample of 100 broadcast and cable networks, TV-related activities on Google and YouTube for May-December 2013 were up sharply across 5 different metrics vs. the same period of 2013.

    The biggest gainer was TV-related watch time on YouTube, which was up 65%, followed by TV-related engagement activities on YouTube (up 56%) and TV-related searches on YouTube (up 54%). The big driver of searches was mobile devices, which experienced a 100%+ growth rate year-over-year.

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  • Ooyala: Mobile and Tablet Video Surges By 719% Since Q4 2011

    Ooyala released its Q4 2013 Global Video Index, finding an increase of 719% in video viewing on mobile devices and tablets since Q4 2011 and 160% since Q4 2012. In December, 2013, mobile and tablet viewing accounted for 26% of time played, up from 18% in October. Based on current growth rates, Ooyala forecasts that by the end of 2015, 37% of all video viewing will be on mobile devices and tablets, and by the end of 2016, it will amount to fully half of all viewing.


    Ooyala said that the proliferation of video-capable mobile devices and tablets, WiFi hotspots and new multi-screen services have led to rapid increases in mobile video usage. Somewhat surprisingly, more than half (53%) of mobile viewers’ time was spent watching video longer than 30 minutes in Q4, compared to 35% for tablet users. Additionally mobile video share of plays increased by 21% from Q3 to Q4 2013.

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  • Study: Video Buffering and Quality Improve in 2013, But Offset By Rise in Start Failures

    Conviva has released its 2014 Viewer Experience Report, finding that of the 45 billion video views in 2013 that it analyzed, 26.9% were impacted by buffering, an improvement from 39.3% in 2012, while those impacted by low resolution delivery also improved, to 43.3% from 63% in 2012. Offsetting these was a rise in video start failures from 4% in 2012 to 4.8% in 2013.

    As consumers shift their viewing to online from traditional TV, they bring along expectations of the  seamless experience, so the Conviva data is critical to understand how well these expectations are being met. In fact, Conviva found that online viewers expectations are actually rising as they shift to online.

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  • Branded Videos Generated 8.3 Billion Views in 2013, Up 44% vs. 2012

    People want to skip ads, right? The conventional wisdom is yes, but it turns out the answer isn't quite so simple. In fact, viewers are seeking out, watching and sharing certain types of advertisers' messages in record numbers. According to Visible Measures 2013 Branded Video report, branded videos (video campaigns advertisers posted online, as opposed to video ads that run in-stream, etc.), generated 8.3 billion views, up 44% vs. 2012.

    There's huge momentum in branded videos: of the 8.3 billion views, 6.5 billion, or 78%, were for campaigns newly launched in 2013. This compares with 3.8 billion views for new campaigns launched in 2012 and 1.7 billion views for campaigns launched in 2011.

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  • PointRoll: In-Stream Video Ads Get 4.5x Higher Click-Throughs Than Flash

    PointRoll's 2013 Benchmarks report finds, among other things, that in-stream video ads achieved a .46% click-through rate, 4.5x higher than the CTR of Flash ads. In-stream video ads also had a 75.3% completion rate, far better than rich media with video (31.7%) and mobile rich media (25.2%). Conversely, rich media with video had a 2.2% interaction rate compared to 1.3% for in-stream video (interaction rate defined as percentage of interacted ad impressions).

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  • Study: 58% of Consumers are Interested in Downloading Pay-TV Content to Tablets

    According to a new study by Vubiquity, 58% of consumers would like the ability to download to their tablets TV shows and movies that are included in their pay-TV subscriptions. Of these, 63% would be willing to pay $1 to $5 to stream or download content. Respondents who expressed interest in downloading already consume proportionately more content across all platforms.

    Vubiquity believes a downloading feature offers a big opportunity for pay-TV operators to differentiate themselves. Coincidentally, Will wrote back in October, 2012 how he believed TiVo Stream's download feature was a killer app. In late 2012 Comcast introduced a similar feature for certain TV shows (there are rights issues involved in deploying this more broadly).

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  • Top U.S. Broadband ISPs Add Another 2.6 Million Subscribers in 2013

    The 17 largest broadband ISPs in the U.S. added over 2.6 million subscribers in 2013, down almost 105K vs. the approximately 2.7 million subscribers they added in 2012. These ISPs now have 84.3 million subscribers, with cable TV operator ISPs having 49.3 million (58%) and telco ISPs having 35 million (42%). The data comes from Leichtman Research Group.

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  • U.S. Pay-TV Industry Loses 105K Subscribers in 2013, First-Ever Loss

    The U.S. pay-TV industry lost 105K video subscribers in 2013, the first time in history that the industry has contracted on a year-over-year basis. The industry ended 2013 with approximately 94.6 million subscribers vs. 94.7 subscribers at YE 2012. The 105K loss is a swing of 280K vs. the 175K the industry gained in 2012. (see chart below)

    The data comes from Leichtman Research Group, which has tracked the top pay-TV operators' video subscriber numbers for years.

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  • Vindico: Interactive Video Ad Impressions Up 77% From A Year Ago

    According to data from ad management platform company Vindico, interactive video ad impressions are up 77% from a year ago. It also found that on average, brands can expect a nearly 3x engagement lift when utilizing interactive ads vs. repurposed TV ads.

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  • Videology Releases 4 Case Studies Showing Cross-Screen Video Advertising Success

    As people splinter their video viewing across multiple devices, reaching them across screens  with video advertising has become has become a growing imperative. Still, TV is tried and true, and the tools for planning, managing and measuring cross-screen campaigns are not yet widely understood.

    To help illustrate early success of cross-screen advertising, Videology has published 4 case studies on different clients who augmented their TV campaigns with online video buys, resulting in significant improvements to audience reach, brand awareness, offline sales and market share.

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  • Report: Over 1/2 of Pay-TV Subscribers Still Don't Know About their Provider's TV Everywhere App

    Over half (52.4%) of pay-TV subscribers still don't know whether their provider offers an app that allows for tablet or smartphone-based viewing, according to Digitalsmiths' new Q4 '13 video trends report. The level is basically the same as the company's Q3 report. Just 21.6% of subscribers have downloaded their provider's app (up slightly from 19.6% in Q3), but almost 60% of those that have downloaded it use it either less than once per week or never.

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  • Study: 59% of Millennials' Video Viewing is Now On-Demand

    Verizon Digital Media Services has unveiled research finding that 59% of millennials' video viewing is now done on-demand, with 41% on live TV. Online accounts for 34% of millennials' viewing, with DVR following at 15% and on-demand at 10%. Non-millennials have the opposite viewing pattern, with 59% of their viewing still live TV, next is DVR with 17% with online and on-demand following at 12% each. Verizon found that 64% of millennials said they subscribe to an OTT video source, compared with 33% of non-millennials.

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  • YuMe Study Provides Insights on How to Optimize Advertising in Connected TVs

    YuMe, Frank N. Magid Associates and Razorfish have released results of a study on how consumers interact and view content/advertising on Connected TVs (CTV). Among the key findings are that consumers are receptive to CTV advertising and that choice and control in advertising are a priority for them.  

    For example, participants said that they have a low tolerance for interruption and would rather be shown ads that have relevant calls-to-action, rather than something completely unrelated to the content being viewed. Participants also said that their attention is drawn to on-screen animation but want ad interactions to be kept simple and easily accessible. Additionally, utilizing video advertising works best because CTV should be a lean-back experience.

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  • FreeWheel Q4 '13 Report: Live Video Now Accounts for 10% of Ad Views As TV Everywhere Surges

    FreeWheel has released its Q4 '13 video monetization report, revealing among things, that ads viewed in live streaming jumped 148% vs. Q4 '12, and now account for nearly 10% of ads viewed in online video streams served by pay-TV operators and TV networks. Related, ad views in authenticated, TV Everywhere content rose 268% vs. Q4 '12. Overall, ad views were up 30% year-over-year. Brian Dutt, who manages Advisory Services at FreeWheel and oversaw the report, shared more detail behind these and other data being released.

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