the Report

Report
VOD’s Advantage: VOD’s Advantage: Quality Content,
Consumers & Connections
VOD (Video on Demand) allows users to view/catch
up on shows or movies through a single platform
from cable, telco or satellite providers without the
need for extra hardware.
Video On Demand Summary
•
VOD is now available in 60% of homes; up 43% in five years
•
VOD content has grown exponentially
• Number of titles have quadrupled
• Recent episodes and high profile programs have been added to VOD
libraries
•
As a result, consumer usage is growing steadily
• 70% use VOD; 59% watch TV content
• Time spent with VOD is up; close to 9 hours/months
• VOD viewers watch longer; spend more time with commercials
•
Who are they?
• Higher income, A18-34 who are likely to have kids & own more devices
• Asians tend to watch more VOD content
•
Nielsen measures and reports VOD Viewing
• VOD viewing is now being measured and therefore monetized within the
C3 window.
• More advertisers are exploring VOD opportunities day 4 and beyond
Video On Demand Is Now Available In 60% Of
Homes; Up 43% In Five Years
VOD Availability in TV HHs
53%
42%
'09
UE(OOO) 47,660
Source: Nielsen; June of each year.
57%
60%
60%
'13
'14
67,946
69,481
46%
'10
'11
53,278
61,095
'12
65,300
VOD’s Growth Is Driven By Increased Ease Of Use
and Large Number of Titles Available
Average U.S. MSO VOD Titles Per Month
28,180
# of Titles Has Quadrupled In Past 5 years
20,081
15,667
10,403
8,100
5,950
2008
2009
2010
2011
Source: SNL Kagan Multichannel market trends; Count represents avg monthy selection, reflecting
turnover and refreshed content and are not comparable to average titles available simultaneously.
2012
2013
…And Libraries Continue To Be Populated With
Recent Episodes of Popular Shows
Sample Programs on VOD
(Availability Varies by Cable Provider)
Two Out Of Three Consumers Use Video On Demand;
Mostly Tuning To TV Programming
70% of Digital Consumers Use VOD
check
59% of All TV’s That Watch On Demand Watch
Content From Major Cable & Broadcast Networks
Source: Comcast reported; 70% use VOD – of those who use, 59% view tv pgm = Rentrak 2013 report
One Third Of All TV Entertainment Transactions
Occur Within The First Three Days
% of Transactions Occurring By Day
Day 1
Day 2
Day 3
Day 4
Day 5
• 23% of all FOD transactions occur
within days 1-3
• 31% of all TV entertainment
transactions occur with days 1-3
Source: Rentrak 2013 report
Day 6
Day 7
So There Exists An Opportunity For Advertisers To
Reach More Viewers Outside The First Three Day
Window
% of Transactions Occurring By Day
Day 1
Day 2
Day 3
Day 4
Day 5
Day 6
Day 7
, ETC…
69% of all TV entertainment viewing
occurs outside the C3 window
Source: Rentrak 2013 report
Usage Levels
Viewers Spend Almost 9 Hours a Month
Watching VOD
Time Spent (Hrs Per Month)
+9% v. 2011
8.7
8.5
8.0
2011
Source: Rentrak state of VOD report 2013
2012
2013
…And Usage Will Continue To Grow: 1 in 4 A18-49
Cite an Increase in VOD Usage in Past 6 Months
“In The Past 6 Months, How Has Your Video On Demand Usage Changed?”
CAB/Magid Video Nation Study 2013; BASE: Have VOD
1208 In the past 6 months, has your Video On Demand usage….?
On-Demand Viewers Tend To Watch More Of The
Commercials Since Fast-Forward Feature Is Most
Likely Disabled
Average Minutes Watched Per Viewers For a 30-min Program
LIVE
20 min
DVR
23 min
VOD
28 min
Source: Nielsen custom Npower Statiistic: avg number of total pgm min viewed per viewer on each
mediumm for recent pgm (P2+), oct, 2013
In Fact, VOD Viewers Watch More Television Overall
Daily Time Spent With Time-Shifted Viewing
In Primetime
Recently Telecast VOD Viewers
0:09
Total
Hispanic
Non-Recently Telecast VOD Viewers
0:14
Daily Time Spent With Live Viewing
0:05
0:11
In Primetime
Black
0:05
Recently Telecast VOD Viewers
0:10
0:54
Total
Asian
Non-Recently Telecast VOD Viewers
1:05
0:05
0:15
0:48
Hispanic
1:00
1:07
Black
Asian
Source: Nielsen Cross Platform 1Q14; Recently Telecast VOD (pgm that is delivered on VOD within 7
day of original telecast
1:16
0:32
0:44
VOD Viewing By Age/Race
On Average, VOD Contributes 4-5% In The Coveted 18-49
demo, While Individual Shows Experience a 15-20%
Increase in Viewership From VOD
% of Viewing
LIVE VIEWING
ALL
T IME-SHIFT ED VIEWING
67%
VOD VIEWING
29%
3%
P2-11
64%
30%
6%
P12-17
64%
29%
7%
P18-34
59%
P35-49
60%
P50-64
P65
5%
35%
4%
36%
68%
75%
Source: Nielsen Cross Platform 1Q14; Recently Telecast VOD (pgm that is delivered on VOD within 7
day of original telecast
29%
23%
3%
2%
VOD Platform Appeals To The Younger Demos
% of Viewing
LIVE VIEWING
6%
T IME-SHIFT ED VIEWING
7%
30%
29%
64%
P2-11
4%
5%
35%
36%
64%
59%
60%
P12-17
P18-34
P35-49
Source: Nielsen Cross Platform 1Q14; Recently Telecast VOD (pgm that is delivered on VOD within 7
day of original telecast
VOD VIEWING
3%
29%
2%
23%
68%
75%
P50-64
P65
…And Asian Americans Tend To Watch More VOD,
Whose Contribution Through VOD is 8%
% of Viewing
LIVE VIEWING
3%
32%
TIME-SHIFTED VIEWING
5%
VOD VIEWING
5%
8%
19%
32%
40%
65%
White
76%
63%
Black
Source: Nielsen Cross Platform 1Q14; Recently Telecast VOD (pgm that is delivered on VOD within 7
day of original telecast
Hispanic
52%
Asian
Although Movies are Still the Most Popular Genre, 65% of
VOD Users Have Watched a TV Show in the Past Month
A18-49 Viewed In Past Month
(Base: VOD users)
Watched Movies
On VOD
Watched TV Shows
On VOD
Source: MRI Doublebase 2013 A18-49; Base= watch VOD in past month
81%
65%
Due to their Serialized Nature, Dramas are the Most
Popular TV Program Type to Use VOD to “Catch Up” With
Distribution Of Top Program Genres
52%
29%
7%
6%
2%
Feature Film
Drama
Documentary
Source: Nielsen Primetime internal VOD & total TV usage data; NPower internal VOD data includes only
Programming encoded for measurement
Participation
Variety
Comedy
What is driving consumers to VOD?
‘Catching Up’ Is A Big Driver For VOD Content; Half
Citing They Use It To ‘Get Up To Date With New Season’
“I’ll Watch Past Episodes of TV Programs on VOD to Get Up to Date
With The New Season”
(Top 2 Box)
+23% v. YAG
+19% v. YAG
53%
51%
+12% v. YAG
47%
A18-24
A25-34
A18-49
1055 Please indicate the extent to which you agree with the following statement – “In order to be up to date with the new season, I’ll watch past
episodes of TV programs on Video on Demand.” (Top 2 box – strongly agree, agree)
Source: Nielsen; August of each year.
Who is the typical VOD user?
VOD Users Are More Likely To Be Younger
Share of Audience
VOD
TV
48%
31%
23%
17%
12%
9%
20%
23%
11%
5%
K2-11
Source: Nielsen; Sept’13
T12-17
A18-34
A35-49
A50-99
They Tend To Be Higher Educated, Earn More and
Own More Video Devices
VOD Audience Comp
Income/ Family/Education
Delivery Status
84%
45%
52%
43%
33%
30%
20%
40%
36%
15% 11%
1%
Satellite
Wired Cable
Telco
Earn $100K
Ethnicity
Device Ownership
71%
65%
85%
77%
84%
83%
57%
52%
15%13%
Black
9%
4+ Yrs College
Recently Telecast VOD
Non RecentlyTelecast VOD
Recently Telecast VOD
Non Recently Telecast VOD
White
Have Kids
63%
56%
51%
42%
17%
Hispanic
4% 5%
Asian
Smartphone
Owner
Recently Telecast VOD
Non Recently Telecast VOD
Source: Nielsen Cross Platform 1Q14; Recently Telecast VOD (pgm that is delivered on VOD within 7
day of original telecast
DVR HH
Tablet Owner
DVD Owner
Recently Telecast VOD
Non Recently Telecast VOD
Video Game
Console
Owner
Is VOD measured and therefore able
to be monetized?
Nielsen Now Measures and Reports VOD,
Allowing the Industry to Monetize
Recently Telecast VOD
Day 1
Day 2
Day 3
Day 4
Day 5
Day 6
Day 7
Day 8+
If content has SAME commercial
load…does it contribute to linear
telecast rating?
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
If content has DIFFERENT commercial
load…does it contributes to linear
telecast rating?
No
No
No
No
No
No
No
No
What Happens After The 7th Day?
Content is captured but does not contribute to the linear telecast ratings.
Is VOD incorporated in the C3 rating?
Yes, if content has same commercial load.
VOD’s Dynamic Ad Insertion
Allows For Monetization
VOD Dynamic Ad Insertion
What is It?
• Allows network operators to provide target ads that can be swapped in
and out of VOD television programs
Footprint?
• 30+M HHs DAI Universe
Who?
• 10 of the Top 10 DMAs, 26 of the Top 30
• Top broadcast and cable programming for example NBCU, Scripps, Fox, &
FearNet
Source: Canoe 2013 STB Data
VOD DAI Current Usage…
•Average of 68 VOD DAI campaigns per week
•17 networks utilizing the platform
•Campaign orders come from linear & digital
•Brand categories executing DAI campaigns include:
–
–
–
–
–
–
–
Retail
Health & Beauty
Travel
Movie Studio
Food
Pet
Automotive
Source: Canoe 2013 STB Data; 8/13
Benefits of DAI…
Leverage the Existing Linear TV Plan
• Potential to target like linear TV, by:
•
•
•
•
Time,
Series
Genre
Rating
• Use the same ad asset as linear TV
• Compliment the TV plan's reach as VOD DAI reporting does not disrupt
VOD inclusion in the Nielsen rating
Benefits of DAI…
Get Timely & Reliable Reporting
• Pay only on actual viewed ad impressions verified by Canoe
(MRC Certification in process)
• Stable, accurate, single source ad impression reporting delivered
on a daily basis by Canoe
• All ad impressions are "above the fold“
• Fuse Canoe HH ad impression with Nielsen VPVHs
(apply Linear or C3 VOD VPVHs)
• Compliment Rentrak data on Program Views
What is the future of VOD?
Video On Demand Revenue Is Poised To Grow
PPV/VOD Ad Revenue (in millions)
2016
2,471
2015
2,342
2014
2,215
2013
2012
2011
2010
2009
Source: SNL Kagan; revenue for cable, dbs,telco ; grey bars are estimates
2,071
1,931
1,877
1,851
1,788
Appendix
Cable VOD Advantages
DVR
Streaming Web Sites
Pro: Has fast-forward, rewind
and pause capability
Pro: Has fast-forward, rewind
and pause capability
Con: Extra cost to HH
Con: Extra cost for some
content
VOD
Pro: Already hooked up to the
television. No additional user
name, password or additional
monthly bills are necessary
•Virtual library
Have to create an
account to access info
Fast-forward may be
disabled for some
content
•Can watch content anywhere
anytime on various platforms
with services such as XFinity
Con: Fast-forward may be
disabled for some content

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