Television VOD systems can either stream content through a set-top-box, a computer or other device ..... Like us:faceboo
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
Contents
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
WHAT IS VOD?
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
STATE OF MVPD’S VIDEO-ON-DEMAND
3
PROVIDER OF CHOICE FOR VIEWING 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 Self-reported Paid Services Used To Watch Broadcast and/or VOD Programming
54%
Cable
Online Service
35% 30%
Satellite
Other
2%
Source: Nielsen Global VOD Survey 3Q15,North America, *respondents could select multiple service providers
STATE OF MVPD’S VIDEO-ON-DEMAND
4
PROVIDER OF CHOICE FOR VIEWING VOD
High Cable / Satellite VOD Usage Among Gen Z And Millennials Self-reported Paid Services Used To Watch Broadcast and/or VOD Programming
Cable and/or Satellite
Gen Z (A15-20)
Online Service
Other
70%
Millennials (A21-34)
31%
73%
Gen X (A35-49)
31%
77%
Baby Boomers (A50-64)
64%
Silent Generations (A65+)
63%
5%
24% 15% 6%
5% 4%
4%
2%
Source: Nielsen Global VOD Survey 3Q15,North America, *respondents could select multiple service providers
STATE OF MVPD’S VIDEO-ON-DEMAND
5
REASONS FOR VIEWING VOD
Convenience & Catching Up Are Primary Drivers Of VOD Viewing % of VOD Viewers Who Somewhat/Strongly Agree With…
I can view at a time that is convenient for me
81%
I like to catch up on multiple episodes at one time
73%
I wish there were more VOD programming choices available
68%
Watching VOD programming on an online or mobile device is not as good as watching on a bigger screen
67%
Each person in my household can watch different programming at the same time
67% Prefer to View on a Big Screen
64%
Source: Nielsen Global VOD Survey 3Q15, Total Audience; North America
STATE OF MVPD’S VIDEO-ON-DEMAND
6
REASONS FOR VIEWING VOD
Regardless Of Age, Convenience Is A Top Motivator; Younger Generations Want More VOD Content % Of VOD Viewers Who Somewhat/Strongly Agree With…
Generation Z (15-20)
Millennials (21-34)
Baby Boomers (50-64)
Silent Generation (65+)
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
70%
59%
77%
68%
68%
75%
Generation X (35-49)
79%
67%
61%
74%
Watching VOD programming on an online or mobile device is not as good as watching on a bigger screen
62%
67%
67%
Each person in my household can watch different programming at the same time
60%
70%
66%
82%
83%
48%
66%
39%
66%
67%
57%
73%
44%
Source: Nielsen Video On Demand Report, March 2016,; Nielsen Global VOD Survey 3Q15; North America
STATE OF MVPD’S VIDEO-ON-DEMAND
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MVPD Video-On-Demand Growth
TITLE’S GROWTH
MVPD’s VOD Growth Is Driven By The Continuous Accumulation Of Recently Aired Programming Content 2015 Average U.S. Operator VOD Titles Per Month
Some Examples of Programs On VOD (varies by cable provider)
37,750
30,200 25,344
18,961 15,667 9,803 8,100 5,950
2008
2009
2010
2011
2012
2013
2014
2015
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
40000
STATE OF MVPD’S VIDEO-ON-DEMAND
35000
9
VOD V. SVOD
In Fact, MVPD VOD Libraries Exceed Those Of The Most Popular Subscription VOD (SVOD) Services SVOD vs. MVPD VOD Titles Comparison # of Titles Per Month 750 37, 0 ,20 30
218 17,
1 24 17, 35 9,6
03 8,8
60 7,1
14-Jan
Netflix
45 8,9
15-Jan
Hulu
Amazon
MVPD VOD
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
STATE OF MVPD’S VIDEO-ON-DEMAND
10
NAVIGATION
…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?
Yes, I Feel It Is Easy To Find A Title
5% 67.
5% 47.
Q2 2014
.4% 48
Q2 2015
Q2 2016
Source: Digitalsmiths Q2 2016 Video Trends Report
STATE OF MVPD’S VIDEO-ON-DEMAND
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Video-On-Demand Usage
VOD PENETRATION
Over 70 Million Consumers Have Access to MVPD VOD VOD Penetration By Year 73,607,000
6% 41.
2009
.4% 46
2010
.7% 52
2011
.9% 56
2012
.5% 59
.0% 60
.9% 61
.2% 63
2013
2014
2015
2016
Source: Nielsen VOD penetration; June of each year, MVPD VOD
STATE OF MVPD’S VIDEO-ON-DEMAND
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USAGE
8 Out Of 10 Report Using MVPD VOD Video On Demand
79% Of Comcast Subscribers Have Watched VOD Content Through Their Provider
Source: Comcast
STATE OF MVPD’S VIDEO-ON-DEMAND
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USAGE
Those Who Utilize It, Do So Frequently; 70% Use Either Every Day Or A Few Times A Week How Often Use VOD/PPV Service (among Cable HHs)
19.8%
Every day
19.8%
Every day A few times a week
50.4%
A few times a week
50.4% 16.5%
Once a week
16.5%
Once a week
7 16.
7.4%
A few times a month
5.0%
Once a month Less than once a month
Monthly MVPD VOD Transactions Per TV
7.4%
A few times a month
Once a month
…Increase In Usage Is Evident As Monthly MVPD VOD Transactions Are Up +5%
9 15.
5.0%
7 16.
9 15.
0.8%
Less than once a month
0.8%
2015
2016 2015
2016
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
STATE OF MVPD’S VIDEO-ON-DEMAND
15
TIME SPENT
Time Spent With MVPD VOD Is Up 10% In Just Two Years - Reaching 10 Hours Per Month Hours Spent With MVPD VOD Per TV Per Month
hrs 1 . 10
hrs 1 . 9
2014
hrs 9.3
2015
2016
Source: comScore State of VOD Report 2016; mvpd VOD; monthly averages; 2014 & 2015 are yearly and 2016 is through 2Q16
STATE OF MVPD’S VIDEO-ON-DEMAND
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MVPD VOD VIEWING BY DEMO
MVPD VOD Viewing Is Highest Among Millennials TV Viewing Distribution In Total Day Avg Mins Per Person with Viewing, Total Day
TV Viewing Distribution In Primetime Avg Mins Per Person with Viewing, Primetime
P2-11
95%
5%
91%
9%
P12-17
94%
6%
91%
9%
P18-34
94%
6%
91%
9%
P35-49
96%
4%
93%
7%
P50-64
97%
3%
95%
5%
P65+
98%
2%
96%
4%
Recently Telecast VOD Viewing
Live + Timeshifted Viewing
May 2016, Nielsen National People Meter Data, All Originators
STATE OF MVPD’S VIDEO-ON-DEMAND
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VOD PROFILE
VOD Users Tend To Be Young, Educated And Affluent Watched Movies or TV Shows on VOD A65+ 9%
$200K+ 11%
A18-24 14%
A55-64 14%
Less Than $30K 11%
34% $30K-$50K 12%
43% $100K-$200K 32%
Age
HHI
A25-34 20% A45-54 21%
$50K-$75K 18% A35-44 22%
Post-Graduate Degree 14%
Didn't Graduate High School 7%
$75K+$100K 16%
High School Graduate 25%
49%
Bachelor's Degree 25%
Education
Black 14.3%
Hispanic 10.4% Asian 2.4% Native American 0.5%
Associate Degree 10%
Some College 19%
Ethnicity
White, Non-Hispanic 72.6%
Source: 2016 GfK MRI Spring, “Video-On-Demand # of Times Watched Past 30 days-TV/Shows/Movies (Any)”
STATE OF MVPD’S VIDEO-ON-DEMAND
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VOD PROFILE
…And Consumers Who View Only TV Content On VOD Are Even More Affluent Watched TV Shows On VOD A65+ 11%
$200K+ 10%
A18-24 14%
Less Than $30K 11%
A55-64 14%
$30K-$50K 13%
44% $100K-$200K 34%
Age
HHI
A25-34 20% A45-54 20%
$50K-$75K 17% A35-44 21%
Post-Graduate Degree 14%
Didn't Graduate High School 6%
$75K+$100K 15%
High School Graduate 25% Bachelor's Degree 25%
Black 14%
Hispanic 10%
Education
Asian 2% Native American 1%
Associate Degree 11%
Some College 19%
Ethnicity
White, Non-Hispanic 73%
Source: 2016 GfK MRI Spring, “Video-On-Demand # of Times Watched Past 30 days-TV/Shows (Any)”
STATE OF MVPD’S VIDEO-ON-DEMAND
19
FREE-ON-DEMAND
Free On Demand, Where Typically The TV Content is Housed, Is The Most Popular MVPD VOD Share Of Transactions: 2Q16
MVPD VOD Share Of Time Spent: 2Q16
7.1% 7.1% Transactional-On-Demand Transactional-On-Demand
2.6% 2.6% Transactional-On-Demand Transactional-On-Demand
29.6% 29.6% StreamingStreaming Video-On-Demand Video-On-Demand
21.8% 21.8% StreamingStreaming Video-On-Demand Video-On-Demand
75.6% 75.6% Free-On-Demand Free-On-Demand
63.4% 63.4% Free-On-Demand Free-On-Demand
Source: comScore State of VOD: Trend Report 2016; A VOD transaction is defined as any On Demand streaming order or view
STATE OF MVPD’S VIDEO-ON-DEMAND
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CATEGORY GROWTH
TV Entertainment And Kids Programming Represent The Most Popular Free Content Free On Demand Share Of Transactions* By Category 10.0%
9.3%
5.1%
5.5% 10.2%
13.9%
25.6%
23.3%
47.8%
49.4%
2014
2015
TV Entertainment
Kids
Music
Movies
Other
Source: comScore OnDemand Essentials, *A VOD transaction is defined as any On Demand streaming order or view.
STATE OF MVPD’S VIDEO-ON-DEMAND
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CATEGORY GROWTH
TV Entertainment Content Has Been Rapidly Gaining Share Of Total VOD Transactions And Time Spent Year After Year MVPD VOD Share Of Transactions* & Time Spent In TV Entertainment Category
Share Of Transactions Share Of Time Spent
32% 23%
16%
36%
37%
40%
25%
16%
2009
2011
2013
2015
Source: comScore OnDemand Essentials, *A VOD transaction is defined as any On Demand streaming order or view.
STATE OF MVPD’S VIDEO-ON-DEMAND
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High Definition VOD
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 High Definition Average Monthly Share Of Overall VOD
HD % Of Transactions
HD % Of Time Spent
1990’s
% 68
% 63
% 57
% 50 % 44
37%
2014
2015
2016
2014
2015
2016
Source: comScore State of VOD Report 2016; MVPD VOD; HD=High Definition
STATE OF MVPD’S VIDEO-ON-DEMAND
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HIGH DEFINITION VOD
Across All Content Types, High Definition Transactions Have Continued To Rise Substantially High Definition Share Of All Transactions By Content Type
71%
71% % 65
61% % 48
% 58
% 56
% 45
2015
% 34
Free-On-Demand
2014
2016
Streaming VOD
Transactional VOD
Source: comScore State of VOD: Trend Report 2016
STATE OF MVPD’S VIDEO-ON-DEMAND
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HIGH DEFINITION VOD
High Definition Entertainment Has Propelled VOD’s Growth As Time Spent Is Up 18% Hours Spent With High Definition MVPD VOD Per TV/Month
8.7
2016
+18% v. YAG 7.4
2015
6.4
2014
Source: comScore State of VOD Report 2016; MVPD HD VOD
STATE OF MVPD’S VIDEO-ON-DEMAND
26
VOD Viewership In-Depth
VOD ENGAGEMENT
Consumers Are More Engaged With MVPD VOD Programming, Spending More Time With An Average Program Average Minutes Viewed Per Telecast Tuned P2+, 5/16, 30 Min Primetime Programs
Live TV 16 min
Timeshifted 18 min
VOD 24 min
More Commercials Are Viewed Since Fast-forward is Most Likely Disabled Source: Nielsen People Meter Data, including only networks who encode RTVOD; 5/16; primetime
STATE OF MVPD’S VIDEO-ON-DEMAND
28
VOD ENGAGEMENT
This Is True Among Key Advertiser Targets, As Engagement Is Higher With MVPD VOD Programming Average Minutes Viewed Per Telecast Tuned May 2016, 30Min Primetime Programs
0 24.
2 18.
1 17.
8 23.
4 16.
7 23.
0 18.
0 18. 0 16.
Live Viewing Time-Shifted Viewing Recently Telecast VOD Viewing
P18-24
P18-49
P25-54
May 2016, Nielsen National People Meter Data, Including only networks who encode Recently Telecast VOD Programming
STATE OF MVPD’S VIDEO-ON-DEMAND
29
RATINGS GROWTH
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 Growth Varies Greatly By Program
Program Ratings In Non-DVR Households
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%
Source: Nielsen Update on Time-shifted Viewing report 5/16; Npower, P18-49 prime programming on ABC, CBS, CW, Fox, NBC, Tel and UNI
STATE OF MVPD’S VIDEO-ON-DEMAND
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VIEWING BY DAY
6 Out Of 10 People View VOD After The First Three Days A Program Airs % Of VOD Viewing By Day
Day 1
Day 2
Day 3
Day 4
Day 5
Day 6
Day 7
& Beyond…
60% View In Days 4 And Beyond
40% Of VOD Viewing Occurs In The C3 Window.
Source: Rentrak Custom report, June 2015; www.comcastwholesale.com – vod monetizing content across its entire lifecycle
STATE OF MVPD’S VIDEO-ON-DEMAND
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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
STATE OF MVPD’S VIDEO-ON-DEMAND
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Reaching The Consumer Using Dynamic Ad Insertion (DAI) On Cable Video On Demand (VOD)
CANOE’S DAI
Cable VOD DAI Via 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
Source: Canoe
STATE OF MVPD’S VIDEO-ON-DEMAND
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CANOE’S DAI
Where Cable VOD DAI Is Today
Coverage in 130 DMAs; 49 of the top 50; 35M Households
= No Canoe homes in DMA = Canoe homes in DMA
Source: Canoe
STATE OF MVPD’S VIDEO-ON-DEMAND
35
CANOE’S DAI
Ad Impressions Are On The Rise 2014 To 2016 YTD 1.8
1.6
1.4
BILLIONS
1.2
2016 YTD: 9B Ad Impressions
1
0.8
2015: 11.8B Ad Impressions 0.6
0.4
2014: 6.3B Ad Impressions
0.2
0 Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Source: Canoe, Jan. 2014 - Jun. 2016
STATE OF MVPD’S VIDEO-ON-DEMAND
36
CANOE’S DAI
Multiple Ad Opportunities Available For campaigns that utilize { Frequency Capping } the average campaign caps at
Q2 2016 4 Avg Ad Opportunities per Break
4
1
2 2
1
1 Pre-Roll
Pre-Roll
Impressions per episode.
1 Mid-Roll
Mid-Roll
Post-Roll
Post-Roll
Source: Canoe, Jun. 2016
STATE OF MVPD’S VIDEO-ON-DEMAND
37
CANOE’S DAI
Benefits Of VOD DAI 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 Source: Canoe
STATE OF MVPD’S VIDEO-ON-DEMAND
38
CONTACT US
For More Information Visit Us Online TheVAB.com Follow us: @VideoAdBureau Like us: facebook.com/VideoAdvertisingBureau Sean Cunningham
Danielle DeLauro
President & CEO
SVP Strategic Sales Insights
212-508-1223
212-508-1239
Jason Wiese
Evelyn Skurkovich
[email protected]
VP Strategic Insights
212-508-1219
[email protected]
[email protected]
VP Strategic Research & Insights
212-508-1220
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