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© PARKS ASSOCIATES Consumer Demand for Next-Gen TV Services 1
© PARKS ASSOCIATES
Consumer Demand for Next-Gen TV Services
1
.com | [email protected] | @CONN_Summit #CONNSummit15 | © PARKS ASSOCIATES 2
Evolving the Definition of TV
›Sources ▪Broadcasters
▪Pay-TV providers
▪OTT video providers
›Programming ▪Competition with original content
▪4K Ultra HD
›Devices ▪Connected device adoption
▪Any device with a screen can be a TV
.com | [email protected] | @CONN_Summit #CONNSummit15 | © PARKS ASSOCIATES 3
Content Trends
›Pay-TV Providers ▪Penetration remains steady between 85% and 88%
▪Eyeballs shifting to non-linear on demand viewing
▪Fear of cord-cutters beginning to resurface
›OTT Providers ▪About half of U.S. Broadband Households subscribe to an OTT video service
32%
5%
5%
37%
8%
10%
43%
12%
15%
46%
12%
18%
43%
11%
16%
0%
10%
20%
30%
40%
50%
Netflix Hulu Plus Amazon Prime Instant Video service
Q1/12
Q1/13
Q4/13
Q1/14
Q3/14
OTT Service Subscription (2012 - 2014) Among All BB HHs
% o
f B
road
band
H
ouse
hold
s
.com | [email protected] | @CONN_Summit #CONNSummit15 | © PARKS ASSOCIATES 4
Content Trends
›OTT Original Content ▪Netflix
▪Hulu
▪Amazon
›Alternative Content Providers ▪ Interactive advertising
▪Multi-channel Networks
▪Short-form Online Video
›High Resolution Video ▪4K TV Sets approaching mass market pricing
▪TV Providers in Asia/Pacific beginning service
▪U.S. OTT and Tier 1 providers follow
.com | [email protected] | @CONN_Summit #CONNSummit15 | © PARKS ASSOCIATES 5
Device Trends
19.2
2.9
0.8
0.3
20.4
5.8
1.6
0.6
18.9
8.2
1.7
1.2
19.8
6.2
1.6
1.3
23.5
9.1
2.0
1.6
0.0
5.0
10.0
15.0
20.0
25.0
TV Computer Mobile phone Tablet
Q4/10 (n=2,000, ±2.19%)
Q1/12 (n=2,000, ±2.19%)
Q1/13 (n=5,046, ±1.38%)
Q1/14 (n=5,034, ±1.38%)
Q3/14 (n=5,150, ±1.37%)
Video Consumption by Platform (2010 - 2014) Among All BB HHs, Outliers Excluded
Ave
rage
# o
f H
ours
Per
W
eek
| Source: Multiple Surveys: American Broadband Households and Their Technologies | © 2014 Parks Associates
Total Consumption: 2010: 23.2 Hours 2012: 28.5 Hours 2013: 29.9 Hours
2014/Q1: 28.9 Hours 2014/Q3: 36.2 Hours
.com | [email protected] | @CONN_Summit #CONNSummit15 | © PARKS ASSOCIATES 6
Device Trends
62% 62% 54% 51% 52%
13% 10%
9% 10% 8%
9% 8% 12% 15% 14%
11% 15% 18% 18% 17%
5% 4% 5% 5% 7%
0%
20%
40%
60%
80%
100%
Q4/10 Q1/12 Q1/13 Q1/14 Q3/14
Pay-per-view program
Video on-demand feature DVR
Internet video
DVDs/Blu-ray discs
Video Consumption on Televisions (2010 - 2014) Among All BB HHs, Outliers Excluded
Ave
rage
Per
cent
age
of T
ime
Wat
ched
per
Wee
k
| Source: Multiple Surveys: American Broadband Households and Their Technologies | © 2014 Parks Associates
.com | [email protected] | @CONN_Summit #CONNSummit15 | © PARKS ASSOCIATES 7
The Next Generation of Television
›Television is Not Dying
.com | [email protected] | @CONN_Summit #CONNSummit15 | © PARKS ASSOCIATES 8
Eric Grab Chief Technology Officer DivX, LLC
Rich Cusick General Manager, Video Gracenote
Mike Fisher Director, Strategy & Innovation BrightLine
Christy Martin Chief Technical Advisor ThinkAnalytics
Consumer Demand for Next-Gen TV Services
Chris Carey Chief Product Officer Verizon Digital Media Services
JT Taylor Senior Manager Cisco
MODERATOR—Glenn Hower, Research Analyst, Parks Associates
© PARKS ASSOCIATES 9
SPEAKER
Chris Carey Chief Product Officer
Verizon Digital Media Services
@Verizon
CHANGING THE WAY THE WORLD WATCHES AND CONSUMES CONTENT Verizon Digital Media Services brings together world-class technology to prepare, deliver, and display content so consumers can watch and enjoy on their terms.
THE DIGITAL MEDIA SERVICES PLATFORM UNITES INNOVATION WITH PEACE-OF-MIND:
SCALE • REACH • MONETIZATION • SECURITY • QUALITY
CHRIS CAREY CHIEF PRODUCT OFFICER
© PARKS ASSOCIATES 11
SPEAKER
Rich Cusick General Manager, Video
Gracenote
@Gracenotetweets
12
video automotive music
G R A C E N OT E RICH CUSICK, GENERAL MANAGER, VIDEO
H e l p i n g c u s t o m e rs r e i m a g i n e h o w p e o p l e i d e nt i f y , d i s c o v e r a n d c o n n e c t w i t h t h e
T V s h o w s , m o v i e s a n d m u s i c t h e y l o ve
© PARKS ASSOCIATES 13
SPEAKER
Mike Fisher Director, Strategy & Innovation
BrightLine
@BrightLine_TV
CONFIDENTIAL DOCUMENT
BrightLine In The Connected TV Landscape
Deep understanding of viewer behavior on TV is enabling the world’s top brands and
advertisers to connect with over 230 million viewers on the screen they watch most:
television.
Connected TV Rich Media Ad Design and Development
Suite of viewer behavior-based ad products allows content
distributors/publishers to tap into TV-caliber CPMs by offering interactive advertising
inside of Connected TV apps
App Monetization for Content Distributors/Publishers
12 YEARS in the making
600+ DESIGNS Development team
focused exclusively on the 10-foot experience
ENGINEERING TEAM focused on developing exclusively for
TV content distribution platforms
PROPRIETARY VIEWER BEHAVIOR Analytics to inform our data-driven design
THE
DETA
ILS:
© PARKS ASSOCIATES 15
SPEAKER
Eric Grab Chief Technology Officer
DivX, LLC
@DivX
©2015 DivX, LLC. All rights reserved. DivX® and associated logos are trademarks of DivX, LLC or its affiliates. 16
DivX 4K CE Solutions
4K Personal Content 4K Content Bundling 4K Streaming Showcase
Personal 4K content streamed to multiple screens via the cloud
Premium content bundled with smart TVs on a USB
hard drive
Independent content bundled and streamed to
4K smart TVs
© PARKS ASSOCIATES 17
SPEAKER
Christy Martin Chief Technical Advisor
ThinkAnalytics
@ChristyIn140 @ThinkAnalytics
The World’s Most Deployed TV Recommendations Engine ThinkAnalytics TM
• Personalized Next Generation TV Services
– Search and recommendations optimized for each consumer’s viewing habits, product
subscriptions and viewing context – Consistent understanding of content across scheduled linear, VOD, DVR and OTT – Integrated multiscreen consumer profiles – Suite of algorithms to enable highly differentiated user experiences – Business rules for increased transactional & advertising revenue – Advanced analytics and A/B testing
• Demonstrated Value of Personalized Content Discovery – 98% opt in rate for personal recs – 58% increase in number of shows viewed – 30% increase in VOD purchases – 35% more time spent watching TV
“Bridging the functionality gap…with 3-D graphics, recommendation engines and cool navigation…is game, set and match”
Mike Fries, CEO Liberty Global, when asked what will be the most important development in cable TV
© PARKS ASSOCIATES 19
SPEAKER
JT Taylor Senior Manager
Cisco
@Cisco
Transforming Video to the Cloud
Intercloud
Public Clouds
Intercloud Fabric
APIs
Portal
APIs
Cloud Services & Applications
APIs
Enterprise Private Clouds
Partner Clouds
Video
Enterprise Workloads
Native Cloud Applications
HCS
IaaS
PaaS
Microsoft Suite aaS
DRaaS
Big Data & Analytics
Meraki
Analytics
WebEx
Security
IOE aaS
HANA aaS
vDesktop aaS
Collaboration
Transforming Video to the Cloud
Video
.com | [email protected] | @CONN_Summit #CONNSummit15 | © PARKS ASSOCIATES 21
Eric Grab Chief Technology Officer DivX, LLC
Rich Cusick General Manager, Video Gracenote
Mike Fisher Director, Strategy & Innovation BrightLine
Christy Martin Chief Technical Advisor ThinkAnalytics
Consumer Demand for Next-Gen TV Services
Chris Carey Chief Product Officer Verizon Digital Media Services
JT Taylor Senior Manager Cisco
MODERATOR—Glenn Hower, Research Analyst, Parks Associates
© PARKS ASSOCIATES
THANK YOU FOR MORE INFORMATION:
Glenn Hower Research Analyst [email protected] @GlennatParks @ParksAssociates
