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1in5 subs use TV Everywhere monthly
ccording to the latest
NPD Group TV
Everywhere Report,
more than one-in-five (21%) of
pay-TV subscribers use the TV
Everywhere services
provided by their
pay-TV operator at
least once per
month.
Although the payTV industry has
increasing concerns
that Over-The-Top (OTT)
subscription video-on-demand
services (SVoD) will lead to cord
cutting or cord trimming, NPD’s
report finds that consumers who
subscribe to SVoD are actually
among the most active TV
Everywhere
users. Three
out of four
SVOD homes
also have a
pay-TV subscription, and 25% use
their provider’s TV Everywhere
service at least once per month.
A
NPD Group says that not only
are dual SVoD and pay-TV
subscribers more likely to have
tried TV Everywhere, they are also
using it more
frequently. Three-inten SVoD subscribers
use TV Everywhere
weekly, compared to
only two-in-ten TV Everywhere
users who do not subscribe to
SVOD.
“TV Everywhere is
about mobility and
control.”
“Though some SVoD
subscribers may be cutting the
cord, the evidence is that the
overwhelming majority are not only
keeping the cord, they are
lengthening it through aggressive
use of TV Everywhere,” said Russ
Crupnick, SVP, industry analyst.
“This speaks to the level of
engagement they have with
programming and a comfort in
using the Internet to both access
and interact with that
programming”
Not surprising given
their investment in TV
Everywhere, nine out of 10
SVoD subscribers reported
being satisfied with their
TV Everywhere experience,
noted the NPD Group. Today
those dual users say they most
appreciate the ability to watch
anywhere in the home, and 46%
want the ability to actually
download the shows in order to
watch them outside their home.
“TV Everywhere is about
mobility and control,” said
Crupnick. “Customers, especially
subscription streamers, are
becoming accustomed to over-thetop options where the location and
device are no longer barriers, and
they crave a similar experience with
TV Everywhere. The way to keep
SVoD subscribers using TV
Everywhere platforms is to make
the experience even more
portable,” he suggested.
4K - Better late than never
Rosy forecasts
for consumer use
of 4K or Ultra-HD
video are overly optimistic,
suggests research firm TDG.
While 4K will ultimately
reach the mainstream, it will
be a niche market for at
least another five years,
with widespread viewing of
4K content arriving in 2019
and growing quickly
beyond.
TDG's findings, published
in Forecasting the 4K Video
Ecosystem, 2014-2025, offers
both mid- and long-term
analyses and forecasts
regarding the uptake of 4Kenabled devices, 4K content,
and ultimately 4K's
percentage share of total
consumer video viewing.
Joel Espelien, author of the
report, notes that short-term
viewership of 4K video will be
driven by consumer
purchases of smart TVs with
4K functionality. However, the
diffusion of 4K televisions will
12
occur more slowly than many
believe due to poor consumer
awareness, high prices, and
lack of 4K content. That said,
the emergence of 4K-enabled
devices will help to fill this
gap.
For example, Espelien
predicts that iSTBs from
companies like Amazon,
Apple, and Roku will join
smart TVs in supporting 4K
streaming from OTT services.
“This will
create a
'halo
effect'
around
broadband
video
quality and
provide a
strong differentiator for OTT
services such as Netflix and
Amazon,” notes Espelien.
“This will be a valuable tool in
recalibrating consumer
ADVANCED TELEVISION
perceptions of video quality
and reinforcing the value
proposition of broadband
streaming services.”
According to TDG, iSTBs
and Blu-ray players will each
account for almost one-fifth
of total 4K video viewing in
2017. While physical discs
will enjoy only short-term
success, the use of 4K iSTBs
will be propelled to even
greater heights due to several
factors,
including
support
from the
'Big 4'
(Apple,
Amazon,
Google,
and
Microsoft); a one-to-two year
replacement cycle (versus
seven-to-eight years for TVs);
and a sub-$100 price when
they finally arrive in market.
As such, 4K iSTB
diffusion will remain
strong throughout
the forecast period and
surpass 4K smart TVs to
become the single mostimportant platform used to
view 4K video aside from
legacy pay-TV operator STBs.
While OTT streaming video
will be the most notable
short-term driver of 4K video,
pay-TV operators will also
play a defining role.
Beginning with on-demand 4K
offerings, pay-TV operators
will slowly add live 4K
support as the ecosystem
matures. According to
Espelien, regardless of the
timing of market entry, and
irrespective of the availability
of alternatives, the sheer
strength of legacy pay-TV and
the ability of operators to
deliver must-see live events
such as the Super Bowl and
the Olympics will propel
operator 4K-enabled STBs to a
dominant position.