VideoNuze Posts

I’m pleased to present the 412th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.

New data from Deloitte shows a convergence of streaming video behaviors among 3 age groups, Gen Z (14-20 year-olds), millennials (21-34 year-olds) and Gen X (35-51 year-olds) in terms of viewing frequency, subscription levels and binge-watching. Colin and I discuss the data and what’s  likely driving the convergence.

We then dig into the math behind Amazon’s originals and how they contribute to Prime memberships and the company’s profitability. Jeff Bezos has spoken publicly about how video drives commerce. My analysis of Amazon’s “The Man in the High Castle” supports this, proving that Amazon is a totally new breed of competitor in the video and TV industries.

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I recently caught up with Walt Horstman, SVP and GM of TiVo’s Advanced Media and Advertising business unit. TiVo, which was known for its DVRs, was acquired in the Fall of 2016 by data provider Rovi, and the combined company was renamed TiVo. It is pursuing an ambitious vision of using data to increase the value of relationships among viewers, content providers and advertisers. An edited transcript follows. 

VideoNuze: What is TiVo doing with advanced advertising?

Walt Horstman: There is a lot going on at TiVo in terms of advanced media and advertising and data.  I’m nearing on my one-year anniversary at the company, and we’ve been really heads down looking at the number of assets that we’ve got across the company, through a lot of acquisitions over the years, that we’ve now consolidated under this business unit, Advanced Media and Advertising, and it’s coming together very nicely with a very impressive set of capabilities. We really are focusing on two key objectives within the media ecosystem. We call these our two Virtual Cycles.

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The average 45 year-old may not think they have a lot in common with the average 15 year-old, but according to the newly-released 12th edition of Deloitte’s Media Trends Survey, it turns out they do. In fact, Deloitte has concluded that the media consumption behaviors of Gen Z (14-20 year olds), millennials (21-34 year-olds) and Gen X (35-51 year-olds) is actually converging, causing the firm to firm to dub the combined group, “MilleXZials.” This group’s behaviors are increasingly distinct from Baby boomers (52-70 year-olds) and Matures (71+ year-olds).

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Please join me 3 weeks from today, on April 10th, at the NABShow’s full-day Online Video Program in Las Vegas, which I’ll be hosting once again. We have a fantastic group of over 30 speakers from companies including ABC News, Discovery, NBA, Newsy, PlayStation Vue, Roku, Sinclair, TEGNA, Univision, YouTube TV and many more.

A highlight of the day will be our keynote session with Christy Tanner, EVP and GM of CBS News Digital. I will be interviewing Christy about how CBSN, which is CBS News’ streaming video news service launched in 2014, creates new value for viewers, advertisers and the CBS Corporation. Another highlight will be Parks Associates’ Senior Director of Research, Brett Sappington presenting brand new data on critical changes in the video industry.

Big thanks to OVP’s Platinum sponsor NeuLion, whose EVP and co-founder Chris Wagner will moderate the session, “The Six Pillars of a Successful OTT Video Strategy” at 11:20am and to Branding sponsor You.i TV, whose Head of Strategy Matt Nelson will participate in the “How Innovation is Driving the Video Industry Forward” session at 2:15pm.

Over 275 industry leaders are already registered to attend OVP. If you’re coming to NABShow and have a FlexPass, please plan to stop by North Hall, room N262/N264 for OVP. If you’re still deciding about attending NABShow, you can save $100 on registration now by using this link and code EP02. Don’t miss out, register now!

Last week Reuters reported data from internal Amazon documents that for the first time provided insights into viewership of the company’s original TV programs and their contribution to creating new Prime subscriptions. Below I’ve done some additonal math using separately reported information to calculate how profitable at least one of Amazon's original programs could be.

Last October, Fortune reported research from Consumer Intelligence Research Partners indicating that Amazon Prime subscribers spend an average of $1,300 per year compared to an average of $700 per year that non-Prime subscribers spend. (Note, back in Fall, 2016, Morgan Stanley said that according to its survey, Prime subscribers spend nearly $2,500 per year, vs. $544 for non-subscribers). For the purpose of my calculations, I just used the CIRP estimate of $600 incremental spending per year by subscribers.

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I’m pleased to present the 411th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.

This week Colin and I share details from TiVo’s new Q4 ’17 Online Video & Pay-TV Trends report (download here), which shows how the high cost of multichannel TV subscriptions is leading to a record level of cord-cutting. The TiVo report also shows how SVOD has gained loyalty and that broadcast TV remains critical for many viewers.

All of this adds up to a dynamic which Colin and I only see firming up further: consumers becoming more proactive through more cord-cutting and cobbling together SVOD subscriptions with low cost, “good enough” skinny bundles and/or antennas. Skinny bundles like YouTube TV, which includes broadcast will become market leaders, while those that don’t (or don’t offer a solution like Sling TV does) will be challenged. Absent a new catalyst, we see this as the state of play in the TV industry for the foreseeable future.

Listen in to learn more!

 
Click here to listen to the podcast (23 minutes, 28 seconds)


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The VideoNuze podcast is also available in iTunes...subscribe today!
 

Video ad tech provider Extreme Reach has released its 2017 Video Advertising Benchmark Report, which shows improvements in key video ad metrics. Importantly, ad fraud is decreasing, as filtered bot traffic decreased 31% across all content publishers and 40% for aggregators in 2017. Extreme Reach attributed this to advertisers’ demands for better accountability and improved vigilance by ad tech providers.

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Video supply-side platform Beachfront is expanding its partnership with cybersecurity provider WhiteOps to also ensure fraud-free connected TV video ad inventory. WhiteOps specializes in bot detection and human verification. The new CTV collaboration is focused in particular on mid-tail and long-tail video. Beachfront said last November that CTV ad requests jumped to over 2 billion in Q3 '17, with a completion rate of 97% and viewability of 100%.

Connected TVs are one of the hottest areas of online video, as consumers rapidly adopt the devices and smart TVs to be able to access OTT video. While CTVs were initially used mainly to access ad-free SVOD services, ad-supported services have gained share recently. eMarketer estimates there were 168 million connected TV users in the U.S. at the end of 2017, which will rise to 194.4 million by 2021.

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