vod’s advantage: vod’s advantage: quality content, consumers & connections
TRANSCRIPT
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.
• 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 Summary
Video On Demand Is Now Available In 60% Of Homes; Up 43% In Five Years
42%46%
53%57%
60% 60%
'09 '10 '11 '12 '13 '14
VOD Availability in TV HHs
Source: Nielsen; June of each year.
47,660UE(OOO) 53,278 61,095 65,300 67,946 69,481
VOD’s Growth Is Driven By Increased Ease Of Use and Large Number of Titles Available
Average U.S. MSO VOD Titles Per Month
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.
2008 2009 2010 2011 2012 2013
5,9508,100
10,403
15,667
20,081
28,180
# of Titles Has Quadrupled In Past 5 years
…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
check
Source: Comcast reported; 70% use VOD – of those who use, 59% view tv pgm = Rentrak 2013 report
70% of Digital Consumers Use VOD
59% of All TV’s That Watch On Demand Watch Content From Major Cable &
Broadcast Networks
One Third Of All TV Entertainment Transactions Occur Within The First Three Days
Source: Rentrak 2013 report
• 23% of all FOD transactions occur within days 1-3
• 31% of all TV entertainment transactions occur with days 1-3
Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7
% of Transactions Occurring By Day
So There Exists An Opportunity For Advertisers To Reach More Viewers Outside The First Three Day Window
Source: Rentrak 2013 report
69% of all TV entertainment viewing occurs outside the C3 window
Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7
% of Transactions Occurring By Day
, ETC…
Usage Levels
Viewers Spend Almost 9 Hours a MonthWatching VOD
Time Spent (Hrs Per Month)
8.0
8.7
8.5
2011 2012 2013
Source: Rentrak state of VOD report 2013
+9% v. 2011
“In The Past 6 Months, How Has Your Video On Demand Usage Changed?”
…And Usage Will Continue To Grow: 1 in 4 A18-49 Cite an Increase in VOD Usage in Past 6 Months
CAB/Magid Video Nation Study 2013; BASE: Have VOD1208 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
Source: Nielsen custom Npower Statiistic: avg number of total pgm min viewed per viewer on each
mediumm for recent pgm (P2+), oct, 2013
Average Minutes Watched Per Viewers For a 30-min Program
LIVE20 min
DVR23 min
VOD28 min
In Fact, VOD Viewers Watch More Television Overall
Daily Time Spent With Time-Shifted Viewing
In Primetime
0:15
0:10
0:11
0:14
0:05
0:05
0:05
0:09
Asian
Black
Hispanic
Total
Recently Telecast VOD Viewers Non-Recently Telecast VOD Viewers
Source: Nielsen Cross Platform 1Q14; Recently Telecast VOD (pgm that is delivered on VOD within 7
day of original telecast
0:44
1:16
1:00
1:05
0:32
1:07
0:48
0:54
Asian
Black
Hispanic
Total
Recently Telecast VOD Viewers Non-Recently Telecast VOD Viewers
Daily Time Spent With Live Viewing
In Primetime
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
75%
60%
59%
64%
64%
67%
23%
29%
36%
35%
29%
30%
29%
68%
7%
5%
4%
3%
2%
3%
6%
P65
P50-64
P35-49
P18-34
P12-17
P2-11
ALL
LIVE VIEWING TIME-SHIFTED VIEWING VOD VIEWING
Source: Nielsen Cross Platform 1Q14; Recently Telecast VOD (pgm that is delivered on VOD within 7
day of original telecast
VOD Platform Appeals To The Younger Demos
% of Viewing
64% 59% 60%68% 75%
30% 29% 35% 36%29%
23%
64%
3%4%5%7%6% 2%
P2-11 P12-17 P18-34 P35-49 P50-64 P65
LIVE VIEWING TIME-SHIFTED VIEWING VOD VIEWING
Source: Nielsen Cross Platform 1Q14; Recently Telecast VOD (pgm that is delivered on VOD within 7
day of original telecast
…And Asian Americans Tend To Watch More VOD, Whose Contribution Through VOD is 8%
% of Viewing
65% 63%52%
32%19%
32%40%
76%
8%5%5%3%
White Black Hispanic Asian
LIVE VIEWING TIME-SHIFTED VIEWING VOD VIEWING
Source: Nielsen Cross Platform 1Q14; Recently Telecast VOD (pgm that is delivered on VOD within 7
day of original telecast
Source: MRI Doublebase 2013 A18-49; Base= watch VOD in past month
A18-49 Viewed In Past Month
(Base: VOD users)
Although Movies are Still the Most Popular Genre, 65% of VOD Users Have Watched a TV Show in the Past Month
Watched TV ShowsOn VOD
Watched Movies On VOD 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 ParticipationVariety
Comedy
Source: Nielsen Primetime internal VOD & total TV usage data; NPower internal VOD data includes only
Programming encoded for measurement
What is driving consumers to VOD?
51%
53%
47%
A18-24 A25-34 A18-49
Source: Nielsen; August of each year.
“I’ll Watch Past Episodes of TV Programs on VOD to Get Up to Date With The New Season”
(Top 2 Box)
‘Catching Up’ Is A Big Driver For VOD Content; Half Citing They Use It To ‘Get Up To Date With New Season’
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)
+23% v. YAG+19% v. YAG
+12% v. YAG
Who is the typical VOD user?
VOD Users Are More Likely To Be Younger
Share of Audience
12%
31%
23% 23%
9%5%
17%20%
48%
11%
K2-11 T12-17 A18-34 A35-49 A50-99
VOD TV
Source: Nielsen; Sept’13
They Tend To Be Higher Educated, Earn More andOwn More Video Devices
VOD Audience Comp
Delivery Status
1%
84%
15%
36% 40%
11%
Satellite Wired Cable Telco
Recently Telecast VOD
Non Recently Telecast VOD
Ethnicity
71%
15%9% 4%
65%
13% 17%5%
White Black Hispanic Asian
Recently Telecast VOD
Non Recently Telecast VOD
Income/ Family/Education
30%
45% 43%
20%
52%
33%
Earn $100K Have Kids 4+ Yrs College
Recently Telecast VOD
Non RecentlyTelecast VOD
Device Ownership
85%
57% 51%
84%
63%77%
52%42%
83%
56%
SmartphoneOwner
DVR HH Tablet Owner DVD Owner Video GameConsoleOwner
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
Is VOD measured and therefore able to be monetized?
Nielsen Now Measures and Reports VOD, Allowing the Industry to Monetize
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
Recently Telecast VOD
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)
Source: SNL Kagan; revenue for cable, dbs,telco ; grey bars are estimates
2009
2010
2011
2012
2013
2014
2015
2016
1,788
1,851
1,877
1,931
2,071
2,215
2,342
2,471
Appendix
Pro: Already hooked up to the television. No additional user name, password or additional monthly bills are necessary
• Virtual library
• Can watch content anywhere anytime on various platforms with services such as XFinity
Con: Fast-forward may be disabled for some content
Cable VOD Advantages
DVR Streaming Web Sites VOD
Pro: Has fast-forward, rewindand pause capability
Con: Extra cost to HH
Pro: Has fast-forward, rewindand pause capability
Con: Extra cost for some content
Have to create an account to access info
Fast-forward may be disabled for some content