video on demand report - the vab tv shows on vod. state of mvpd’s video-on-demand 20...

What is VOD? .................................................................................... 3

Provider of Choice For Viewing VOD .......................................... 4

By Demo .........................................................................................5

Reasons for Viewing VOD .............................................................. 6

By Demo ......................................................................................... 7

Title’s Growth ................................................................................... 9

VOD v. SVOD ...............................................................................10

Navigation ........................................................................................11

VOD Penetration ............................................................................ 13

Usage ............................................................................................... 14

Frequency ..................................................................................... 15

Time Spent ...................................................................................... 16

MVPD VOD Viewing by Demo ..................................................... 17

VOD Profile ............................................................................... 18-19

Free-On-Demand ..........................................................................20

Category Growth ..................................................................... 21-22

High Definition VOD ...............................................................23-26

VOD Engagement ....................................................................28-29

Ratings Growth ..............................................................................30

Viewing by Day ............................................................................... 31

Nielsen’s Measurement ................................................................ 32

Canoe’s DAI ...............................................................................33-38

Contents

STATE OF MVPD’S VIDEO-ON-DEMAND 3

What is VOD?

• Video-on-demand (VOD) are systems which allow users to select and watch/listen to video or audio content when they choose to, rather than at a specific broadcast time

• Television VOD systems can either stream content through a set-top-box, a computer or other device, allowing viewing in real time, or download it to a device such as a computer, digital video recorder or portable media player for viewing at any time

• MVPD Video-On-Demand (VOD) is a feature that enables cable or telco video subscribers access to a library of free or pay-per-view content through their set-top-box

This report will concentrate on MVPD VOD

WHAT IS VOD?


Even With The Rise Of Alternate Viewing Platforms, More Than Half (54%) Of Total Video-On-Demand Viewing Still Takes Place Through A Cable Provider

PROVIDER OF CHOICE FOR VIEWING VOD

Self-reported Paid Services Used To Watch Broadcast and/or VOD Programming

Source: Nielsen Global VOD Survey 3Q15,North America, *respondents could select multiple service providers

Cable

Online Service

Satellite

Other

54%

35%

30%

2%


High Cable / Satellite VOD Usage Among Gen Z And Millennials

Source: Nielsen Global VOD Survey 3Q15,North America, *respondents could select multiple service providers

Cable and/or Satellite Online Service Other

70% 31% 5%

73% 31%

77% 24%

64% 15%

63% 6%

4%

4%

5%

2%

Gen Z(A15-20)

Millennials(A21-34)

Gen X(A35-49)

Baby Boomers(A50-64)

Silent Generations(A65+)

Self-reported Paid Services Used To Watch Broadcast and/or VOD Programming

PROVIDER OF CHOICE FOR VIEWING VOD


REASONS FOR VIEWING VOD

Convenience & Catching Up Are Primary Drivers Of VOD Viewing

Source: Nielsen Global VOD Survey 3Q15, Total Audience; North America

% of VOD Viewers Who Somewhat/Strongly Agree With…

67% Prefer to View on

a Big Screen

64%

67%

68%

73%

81%I can view at a time that is convenient for me

I like to catch up on multiple episodes at one time

I wish there were more VOD programming choices available

Watching VOD programming on an online or mobile device is not as

good as watching on a bigger screen

Each person in my household can watch different programming at the same time


Regardless Of Age, Convenience Is A Top Motivator; Younger Generations Want More VOD Content

Source: Nielsen Video On Demand Report, March 2016,; Nielsen Global VOD Survey 3Q15; North America

% Of VOD Viewers Who Somewhat/Strongly Agree With…

Generation Z (15-20) Millennials (21-34) Generation X (35-49)

Baby Boomers (50-64) Silent Generation (65+)

44%

66%

39%

67%

66%

67%

74%

67%

75%

62%

57%66%70%60%

68%

83%79%77%70%

48%61%67%68%59% 73%

82%I can view at a time that is convenient for me

I like to catch up on multiple episodes at one time

I wish there were more VOD programming choices available

Watching VOD programming on an online or mobile device is not as good as

watching on a bigger screen

Each person in my household can watch different programming at the same time

REASONS FOR VIEWING VOD

MVPD Video-On-Demand Growth


MVPD’s VOD Growth Is Driven By The Continuous Accumulation Of Recently Aired Programming Content

Source: SNL Kagan Multichannel Market Trends; Count represents avg monthly selection, reflecting turnover and refreshed content and are not comparable to average titles available simultaneously. 1/16

TITLE’S GROWTH

2015 Average U.S. Operator VOD Titles Per Month

Some Examples of Programs On VOD(varies by cable provider)

2008 2009 2010 2011 2012 2013 2014 2015

5,950

37,750

30,200

25,344

18,961

15,667

9,8038,100

25000

30000

35000

40000


In Fact, MVPD VOD Libraries Exceed Those Of The Most Popular Subscription VOD (SVOD) Services

VOD V. SVOD

SVOD vs. MVPD VOD Titles Comparison# of Titles Per Month

Source: VAB analysis of SNL Kagan January 2016 data; mvpd vod= SNL Kagan Multichannel Market Trends; Count represents avg monthly selection, reflecting turnover and refreshed content and are not comparable to average titles available simultaneously. 1/16

50000

Net�ix Hulu Amazon MVPD VOD

14-Jan 15-Jan

9,635

7,160

17,241

30,200

8,8038,945

17,218

37,750


…And Navigation Has Continued to Improve – Making It Easier To Locate Specific VOD Titles

Do You Feel It Is Easy To Find a Movie You Will Enjoy In The VOD Catalog Provided By Your Cable/Satellite Provider?

Source: Digitalsmiths Q2 2016 Video Trends Report

Q2 2014 Q2 2015 Q2 2016

47.5%48.4%

67.5%

Yes, I Feel It Is Easy To Find A Title

NAVIGATION

Video-On-Demand Usage


Over 70 Million Consumers Have Access to MVPD VOD

Source: Nielsen VOD penetration; June of each year, MVPD VOD

VOD PENETRATION

VOD Penetration By Year

20102009 2011 2012 2013 2014 2015 2016

60.0%61.9

%63.2%

59.5%

56.9%

52.7%

46.4%

41.6%

73,607,000


8 Out Of 10 Report Using MVPD VOD

Source: Comcast

Video On Demand

79% Of Comcast Subscribers Have Watched VOD Content Through Their Provider

USAGE


Those Who Utilize It, Do So Frequently; 70% Use Either Every Day Or A Few Times A Week

Source: Nielsen Home Technology report; Base: HH subscribing to VOD or PPV in past week: transactions= comScore State of VOD Report 2016; mvpd VOD; monthly averages; A VOD transaction is defined as any On Demand streaming order or view; 2014 & 2015 are yearly and 2016 is through 2Q16

USAGE

How Often Use VOD/PPV Service(among Cable HHs)

50000

2015 2016

15.9

16.7

Every day

A few times a week

Once a week

A few times a month

19.8%

50.4%

16.5%

7.4%

5.0%

0.8%

Once a month

Less than once a month

50000

2015 2016

15.9

16.7

Every day

A few times a week

Once a week

A few times a month

19.8%

50.4%

16.5%

7.4%

5.0%

0.8%

Once a month

Less than once a month

…Increase In Usage Is Evident As Monthly MVPD VOD Transactions Are Up +5%

Monthly MVPD VOD Transactions Per TV


TIME SPENT

Time Spent With MVPD VOD Is Up 10% In Just Two Years - Reaching 10 Hours Per Month

Source: comScore State of VOD Report 2016; mvpd VOD; monthly averages; 2014 & 2015 are yearly and 2016 is through 2Q16

Hours Spent With MVPD VOD Per TV Per Month

2014 2015 2016

9.1 hrs

9.3 hrs

10.1 hrs


MVPD VOD Viewing Is Highest Among Millennials

MVPD VOD VIEWING BY DEMO

TV Viewing Distribution In Total DayAvg Mins Per Person with Viewing, Total Day

May 2016, Nielsen National People Meter Data, All Originators

TV Viewing Distribution In PrimetimeAvg Mins Per Person with Viewing, Primetime

Live + Timeshifted Viewing Recently Telecast VOD Viewing

95%

94%

94%

96%

97%

98%

5%

6%

6%

4%

3%

2%

9%

9%

9%

7%

5%

4%

91%

91%

91%

93%

95%

96%

P2-11

P12-17

P18-34

P35-49

P50-64

P65+


VOD Users Tend To Be Young, Educated And Affluent

Source: 2016 GfK MRI Spring, “Video-On-Demand # of Times Watched Past 30 days-TV/Shows/Movies (Any)”

A18-24 14%

A25-3420%

A35-4422%

A45-5421%

A55-6414%

A65+9%

Didn't Graduate High School

7%

Some College19%Associate

Degree10%

Bachelor's Degree

25%

Post-Graduate Degree

14%

High School Graduate

25%

Less Than $30K11%

$30K-$50K 12%

$75K+$100K16%

Native American

0.5%

Asian2.4%

Hispanic10.4%

Black14.3%

$100K-$200K 32%

$200K+11%

$50K-$75K 18%

White, Non-Hispanic

72.6%

Age HHI

Education Ethnicity

34%

49%

43%

Watched Movies or TV Shows on VOD

VOD PROFILE


…And Consumers Who View Only TV Content On VOD Are Even More Affluent

Source: 2016 GfK MRI Spring, “Video-On-Demand # of Times Watched Past 30 days-TV/Shows (Any)”

VOD PROFILE

A18-24 14%

A25-3420%

A35-4421%

A45-5420%

A55-6414%

A65+11%

Didn't Graduate High School

6%

Some College19%Associate

Degree11%

Bachelor's Degree

25%

Post-Graduate Degree

14%

High School Graduate

25%

Less Than $30K11%

$30K-$50K 13%

$75K+$100K15%

Native American

1%

Asian2%

Hispanic10%

Black14%

$100K-$200K 34%

$200K+10%

$50K-$75K 17%

White, Non-Hispanic

73%

HHIAge

Education Ethnicity

44%

Watched TV Shows On VOD


FREE-ON-DEMAND

Free On Demand, Where Typically The TV Content is Housed, Is The Most Popular

MVPD VOD Share Of Transactions: 2Q16

Source: comScore State of VOD: Trend Report 2016; A VOD transaction is defined as any On Demand streaming order or view

MVPD VOD Share Of Time Spent: 2Q16

21.8%Streaming

Video-On-Demand

75.6%Free-On-Demand

2.6%Transactional-On-Demand


29.6%Streaming

Video-On-Demand

63.4%Free-On-Demand

21.8%Streaming

Video-On-Demand

75.6%Free-On-Demand



29.6%Streaming

Video-On-Demand

63.4%Free-On-Demand


TV Entertainment And Kids Programming Represent The Most Popular Free Content

Source: comScore OnDemand Essentials, *A VOD transaction is defined as any On Demand streaming order or view.

Free On Demand Share Of Transactions* By Category

TV Entertainment Kids Music Movies Other

2014 2015

47.8%

23.3%

13.9%

5.1%

10.0%

49.4%

25.6%

10.2%

5.5%

9.3%

CATEGORY GROWTH


TV Entertainment Content Has Been Rapidly Gaining Share Of Total VOD Transactions And Time Spent Year After Year

Source: comScore OnDemand Essentials, *A VOD transaction is defined as any On Demand streaming order or view.

MVPD VOD Share Of Transactions* & Time Spent In TV Entertainment Category

2009 2011 2013 2015

16% 16%

23% 25%

32%36% 37%

40%Share Of Transactions

Share Of Time Spent

CATEGORY GROWTH

High Definition VOD


More HD VOD Content Is Being Viewed Than Ever Before – 68% Of Overall VOD’s Time Is Spent With High Definition VOD

1990’s

Source: comScore State of VOD Report 2016; MVPD VOD; HD=High Definition

High Definition Average Monthly Share Of Overall VOD

HD % Of Transactions HD % Of Time Spent

20152014 2016 2014 2015 2016

57%

68%

44%

63%

50%

37%

0.8

1.0

HIGH DEFINITION VOD


Across All Content Types, High Definition Transactions Have Continued To Rise Substantially

High Definition Share Of All TransactionsBy Content Type

Source: comScore State of VOD: Trend Report 2016

2014

2015

2016

Free-On-Demand Streaming VOD Transactional VOD

34%

48%

61%

45%

58%

71%

7080

56%

65%71%

HIGH DEFINITION VOD


High Definition Entertainment Has Propelled VOD’s Growth As Time Spent Is Up 18%

Source: comScore State of VOD Report 2016; MVPD HD VOD

HIGH DEFINITION VOD

Hours Spent With High Definition MVPD VOD Per TV/Month

2016

2015

2014

8.7

+18% v. YAG7.4

6.4

VOD Viewership In-Depth


Consumers Are More Engaged With MVPD VOD Programming, Spending More Time With An Average Program

Source: Nielsen People Meter Data, including only networks who encode RTVOD; 5/16; primetime

Average Minutes Viewed Per Telecast TunedP2+, 5/16, 30 Min Primetime Programs

Live TV16 min

Timeshifted18 min

VOD24 min

More Commercials Are Viewed SinceFast-forward is Most Likely Disabled

VOD ENGAGEMENT


This Is True Among Key Advertiser Targets, As Engagement Is Higher With MVPD VOD Programming

VOD ENGAGEMENT

May 2016, Nielsen National People Meter Data, Including only networks who encode Recently Telecast VOD Programming

Average Minutes Viewed Per Telecast TunedMay 2016, 30Min Primetime Programs

Live Viewing

Time-Shifted Viewing

Recently Telecast VOD Viewing

P18-24 P18-49 P25-54

18.217.1

24.0

16.418.0

23.8

16.018.0

23.7


Growth Varies Greatly By Program

Overall, MVPD’s VOD Provides Additional Reach: Within Non-DVR Homes, Ratings Grow 10% With Playback In First 3 Days, Mostly Attributed To VOD Viewing With Fast-Forwarding Disabled

Source: Nielsen Update on Time-shifted Viewing report 5/16; Npower, P18-49 prime programming on ABC, CBS, CW, Fox, NBC, Tel and UNI

RATINGS GROWTH

Program Type Live Live+3 % Lift

Total U.S. 0.87 0.95 10%

White 0.69 0.78 12%

Black 0.83 0.94 12%

Asian 0.36 0.42 16%

Hispanic 1.45 1.52 5%

Program Ratings In Non-DVR Households


6 Out Of 10 People View VOD After The First Three Days A Program Airs

VIEWING BY DAY

Source: Rentrak Custom report, June 2015; www.comcastwholesale.com – vod monetizing content across its entire lifecycle

% Of VOD Viewing By Day

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 & Beyond…

40% Of VOD Viewing Occurs In The

C3 Window.

60% View In Days 4 And Beyond


NIELSEN’S MEASUREMENT

Nielsen’s Measurement Of MVPD VOD Allows For Monetization

Playback of encoded VOD viewing will be credited to the linear C3 and C7 rating, as long as program content and National ad load are fed exactly the same to the VOD feed.

In order to get VOD credit, the program and spots must preserve the original Nielsen linear encoding.

How it works: Clients embed a “VOD flag” into the linearly encoded content via software encoder. The VOD flag simply identifies the content as VOD v. DVR.

– There are 2 options:

• C3 flag – used if content will retain the linear commercials for only 3 days. Use of C3 flag eliminates the need to “re-pitch” the VOD content on day 4 when the linear commercials are removed

• C7 flag – used if content will retain the linear commercials for 7 days

Source: Nielsen

Reaching The Consumer Using Dynamic Ad Insertion (DAI) On Cable Video On Demand (VOD)


Cable VOD DAI Via Canoe

Source: Canoe

Canoe Enables National TV Network Programmers To Easily Insert Advertising Into Their Video On Demand Programming On Cable Operators’ VOD Platforms

Consumer Picks TV Program From Cable VOD Service

Consumer Watches

TV Program

Consumer Watches Ads Inserted As Ad Breaks Occur Before, During, And After the Program

CANOE’S DAI


Where Cable VOD DAI Is Today

Source: Canoe

Coverage in 130 DMAs; 49 of the top 50; 35M Households

= No Canoe homes in DMA

= Canoe homes in DMA

CANOE’S DAI


Ad Impressions Are On The Rise

Source: Canoe, Jan. 2014 - Jun. 2016

1.8

1.6

1.4

1.2

1

0.8

0.6

0.4

0.2

0

BIL

LIO

NS

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014: 6.3B Ad Impressions

2015: 11.8B Ad Impressions

2016 YTD: 9B Ad Impressions

2014 To 2016 YTD

CANOE’S DAI


Multiple Ad Opportunities Available

Source: Canoe, Jun. 2016

Q2 2016Avg Ad Opportunities per Break

Pre-Roll Mid-Roll Post-Roll

1 1

4

2

For campaigns that utilize { Frequency Capping }

the average campaign caps at

Pre-Roll Mid-Roll Post-Roll

1 1

4

2Impressions per episode.

CANOE’S DAI


Benefits Of VOD DAI

CANOE’S DAI

Source: Canoe

New Targeting Capabilities

• Advanced/Data Driven/Addressable TV

• Data sets that influence index % to series on national inventory

• Data sets that influence HH targeting on local inventory

• Programmatic to Supply Side Platforms (SSP) e.g. FreeWheel and Google DPF

• Programmatic to Demand Side Platforms (DSP) e.g. Innovid

Timely & Reliable Measurement

• Pay only on actual ad impressions verified by Canoe

• Stable, accurate, single source measurement

• Complements TV plan’s reach as DAI reporting separate from VOD in Nielsen C3/C7 rating or ComScore

• No Fraud, No Bots, All Viewable

CONTACT US For More Information Visit Us Online TheVAB.com

Sean Cunningham President & CEO

[email protected]

Danielle DeLauro SVP Strategic Sales Insights

[email protected]

Jason WieseVP Strategic Insights

[email protected]

Follow us: @VideoAdBureau

Like us: facebook.com/VideoAdvertisingBureau

Evelyn Skurkovich VP Strategic Research & Insights

[email protected]

video on demand report - the vab tv shows on vod. state of mvpd’s video-on-demand 20...

Documents