Doesn’t it seem like this year’s Upfront presentations were filled with way too many acronyms, making it harder and harder to make sense of them? Playing House’s Executive Producers, writers and stars Lennon Parham and Jessica St. Clair break down what they all mean and how they illustrate the innovation taking place at NBCUniversal.
The State of Online Video is Limelight Networks’ latest in a series of annual surveys that explores consumer perceptions and behaviors around digital content. The State of Online Video 2015 report is based on responses that Limelight Networks received from 1,206 consumers ranging in demographics, gender, and education. According to the findings, most people watch 1-2 hours of online video each week, though younger viewers do watch more overall. When asked under what circumstances respondents would terminate service with their cable or pay-television subscriber, the largest percentage of respondents indicated, by a wide margin, that they would terminate their subscription because of increasing prices. Again, this number is even higher among young Millennials of which more than 40% indicated that they would terminate for financial reasons.
New data from Juniper Research shows that subscriptions from over-the-top (OTT) TV providers such as Netflix and Amazon Prime will generate $31.6 billion by 2019, up from just under $8 billion in 2014. According to Juniper’s report Mobile & Online TV & Video: OTT, IPTV & Connected Markets 2015-2019, continued growth in the established markets of West Europe and North America, along with the emergence of key OTT players in the Far East and Asia Pacific, will bring a surge in the uptake of OTT subscriptions over the next four years.
Key OTT findings from Juniper’s research include:
The Growing Trend for Online Video
This behavior originated from the trend for DTV given that online video does not conform to a schedule and Internet TV and online video services often see less advertising within the show compared to shows on traditional TV. Consumers are also easily able to share online videos via social networking sites or email, which has been a key driver in the proliferation of such a service.
Global subscription revenues from OTT services will approach $32 billion in 2019, compared to just under $8 billion estimated in 2014. Continued growth in the established markets of West Europe and North America, along with the introduction of key OTT players in Far East & China and Rest of Asia Pacific, will bring a surge in uptake of OTT subscriptions over the next 4 years.
OTT providers at the forefront of 4K delivery
As of March 2015, some content is available in the online space, most notably from Amazon Instant Video, who have around 30 movies available in 4K, as well as several of their original TV series. Netflix also provide some of their original shows such as House of Cards and Marco Polo in 4K. Netflix had been providing 4K content to all subscribers since April 2014, but in October of the same year it announced that it would charge those subscribers who wanted to enjoy their 4K service a higher fee. It is now the company’s most expensive service tier at $11.99 per month and requires users to sign up for a ‘family’ plan that allows the simultaneous stream of up to 4 programs.
Pay-TV incumbents see bundled packages as the way forward
One of the biggest threats to the traditional TV industry, is ‘cord-cutting’- consumers cancelling their satellite or cable TV services in favour of cheaper deals from streaming companies such as Netflix and Hulu.
Many broadband service providers now offer quad-play packages, which add mobile to the current triple-play system, making for an even more appealing package. In February 2015, the UK triple-play provider BT purchased mobile network EE for £12.5 billion ($20.2 billion) with deal expected to be finalised in March 2016. With the addition of EE, BT will now be able to offer quad-play packages.
However, the emergence of services such as Sling TV, offering a cheaper OTT alternative to cable and satellite subscriptions while providing a range of quality entertainment channels, may serve to disrupt this model.
Access and entertainment research from Parks Associates finds 57% of consumers in U.S. broadband households subscribe to an OTT (over-the-top) video service, such as Netflix or Hulu Plus. In its new report, TV Everywhere and the New World of OTT, the research firm reports the average U.S. broadband household spends $9 per month on Internet video, up from $7 in 2012.
Data highlights from Parks Associates include:
There will be nearly 50 million streaming media players sold globally by 2017.
S. broadband households watch an average of 3.4 hours of Internet video per week.
S. broadband households spend more than $6 per month on average on subscription OTT video services.
Among U.S. broadband households with a pay-TV subscription, 15% are very interested in at least one OTT service, compared to 9% of households without a pay-TV subscription.
7% of U.S. broadband households are likely to subscribe to an OTT video service from HBO.
Over 50% of U.S. broadband households subscribe to an OTT video service.
More than 75% of streaming media player owners have an OTT subscription.
Homes with children spend on average 90% more on OTT services and digital video than homes with no children.