WHAT VIEWERS REALLY WANT - Amazon S3 · A Study of ChAnging Viewing hAbitS in A ‘tV eVerywhere’ world Video Consumption’s next wave Page 10 Multichannel tV remains strong, but

m u l t i c h a n n e l . c o m | J a n u a r y 7 , 2 0 1 3 | m u l t i c h a n n e l n e w s | 9

viewer watch 2013

Programmers and operators have been talking about TV Everywhere for more than three years now, which in the tech world amounts to just about forever. And after all that time, the technical infra-structure to deliver more video over Internet-proto-col networks has certainly fallen into place.

Thanks to massive investments — from 1996 through year-end 2012, cable operators spent some $186 billion on their infrastructure, while telcos have coughed up tens of billions of dollars more for their mobile networks — fast Internet connections are widely available. In 2013, three quarters of all Americans will have a high-speed Internet connection and three in five U.S. citizens will have mobile Internet access, according to PricewaterhouseCoopers.

Connection speeds — so necessary to expanded video consumption on a myriad of new Internet- connected devices — are also getting a boost. With more than 160 million smartphones in the hands of consumers, telcos have deployed blaz-ing-fast 4G connections in cities representing more than 75% of the country; and cable opera-tors have deployed DOCSIS 3.0 systems, which allow for speeds of 50 to 100 Megabits per sec-ond, in more than 80% of their footprints.

But TV Everywhere is far from everywhere. While considerable progress has been made, the reality of delivering content to any device when-ever a subscriber wants to watch it hasn’t lived up to the dream.

Some of this reflects the hype surrounding digital distribution, which has generally out-paced actual usage. When asked to comment on how changing patterns of video consumption are changing the TV industry, Jack Wakshlag, chief research officer for Turner Broadcasting System, likes to remind people that they need to focus on real research, not impressions that

they’ve formed watching their own children or their peers in the TV and media industry, who tend to be more affluent, better-educated and more tech-savvy than the average American.

To support that point, Wakshlag cites a 2012 study from the Media Behavior Institute, which compared media consumption patterns of me-dia executives with the general public. It found, not surprisingly, that media professional are more likely to use mobile apps (92% of media execs used them every day, versus 25% of the population at large), social networks (50% versus 19%) and tab-lets (25% versus 9%). Alternatively, they were less likely to watch TV (75% versus 85%) or listen to radio (42% versus 80%).

With that reality check in mind, Multichannel News’ Viewer Watch 2013 takes a close look at the realities of video consumption and some of the major trends that are reshaping the business. How much video are people actually consuming on mo-bile phones, tablets and other Internet connected devices? How much progress are programmers and

operators actually making towards implementing TV Everywhere? And, importantly, what are some of the business issues that are holding back those efforts?

There are no simple answers to those questions, but this year’s Viewer Watch is once again designed to help better understand those issues by provid-ing dozens of charts and two major features based on interviews with a number of top multichannel executives.

Like previous iterations of this special report, Viewer Watch would not have been possible with-out the help of a number of research organizations, including Horowitz Associates, Pricewaterhouse-Coopers, Magna Global, Nielsen, Frank N. Magid Associates, Fox Cable Networks (which compiled some Nielsen ratings data for this report), and Turn-er Broadcasting System, which provided with some original analysis of the impact of over-the-top video and other trends. Contributing writer George Win-slow compiled the data, conducted the interviews and wrote the articles. )

WHAT VIEWERS REALLY WANTA Study of ChAnging Viewing hAbitS in A ‘tV eVerywhere’ world

Video Consumption’s next wave Page 10Multichannel tV remains strong, but new consumer-electronics devices are changing the business.

tV everywhere’s unfinished business Page 11where to find more content is one of several issues facing operators in 2013.

the Multichannel landscape Page 12Cable penetration will continue to drop as telcos continue to gain subscribers.

tV revenue Page 13Ad spending will top $42 billion in 2016; tV subscription spending will hit nearly $93 billion.

on demand landscape Page 14Cord-cutting homes will grow from under 1 million in 2012 to around 1.5 million in 2013.

the Content business Page 15revenue from electronic distribution will hit $9.6 billion in 2016.

top basic-Cable networks Page 16rankings of the top non-premium networks, by age and gender.

the online landscape Page 18three-quarters of u.S. homes will have a broadband connection by 2013.

digital Consumption trends Page 19breaking down tV and digital-media consumption by age.

the online Video business Page 20Streaming-video data shows that more than half of u.S. Asian and hispanic viewers are viewing tV fare via a connected device.

Special report: Second Screen Page 22Plotting the second-screen landscape; a technology profile of multichannel television customers.

inside viewer watch

1 0 | m u l t i c h a n n e l n e w s | J a n u a r y 7 , 2 0 1 3 | m u l t i c h a n n e l . c o m m u l t i c h a n n e l . c o m | J a n u a r y 7 , 2 0 1 3 | m u l t i c h a n n e l n e w s | 1 1

Video Consumption’s Next WaveAS deViCeS ProliferAte, So do the QueStionS About their iMPACt BY GEORGE WINSLOW

When more than 150,000 attendees gather for this week’s 2013 Inter-

national CES in Las Vegas, much of the discussion will again sur-round smartphones, tablets, smart TVs, game consoles and other In-ternet-connected devices delivering record amounts of video content to consumers.

For the moment, the prolifera-tion of new screens for watching TV hasn’t hurt the traditional tele-vision industry — and may even be helping it. The year 2012 brought record-breaking multichannel-TV subscriber counts and ad revenues, as well as improved ratings.

But behind the these rosy top-line trends, there are a number of developments that promise to significantly al-ter the way programs are funded, promoted, distributed and viewed in this coming year and beyond.

The impact of over-the-top video — delivered direct-ly to viewers via the public Internet — is one of the most discussed questions in recent years. As OTT players such as Netflix grow in size and financial clout, they are mak-ing their mark as buyers of TV and theatrical film content. Last month, Netflix acquired exclusive pay TV window rights to The Walt Disney Co.’s theatrical films starting in 2016.

With Netflix now streaming more than 1 billion hours of content each month, “you would think that this [mas-sive usage] would be eroding linear television viewing like crazy,” chief content officer Ted Sarandos said at Decem-ber’s UBS Global Media and Communications Confer-ence.

As Sarandos and others have noted, however, tradition-al TV viewing continues to grow. Despite the rising popu-larity of online and mobile video, live TV viewing declined by only five minutes per day from the second quarter of 2008 through Q2 of 2012. Overall TV viewing hit a record of four hours, 40 minutes in the second quarter of 2012.

This dynamic of rising OTT video consumption, cou-pled with record levels of TV viewing, has translated into a generally healthy landscape for both OTT players and the multichannel industry. Pointing to SNL Kagan data showing that the number of multichannel subscribers rose by 400,000 in the third quarter of 2012 from a year earlier, Turner Broadcasting System chief research offi-cer Jack Wakshlag said, “I’m still waiting for evidence of cord-cutting.”

Consumers who drop their pay TV service continue to do so for economic, not technical reasons, Wakshlag said. In one Turner study, which covers cord-cutters between February of 2011 and February of 2012, the data showed that the average cord cutter is much less likely to have a high-school diploma and own a computer than the gen-

eral population. This group also is significantly more likely to have di-al-up Internet access and household income of less than $20,000 — and to not own a computer.

An earlier study, from March 2010 through 2011, concluded that cord-cutters did not conform to the popular stereotype of affluent, professional and tech-savvy urban viewers who were embracing over-the-top video at cable’s expense.

Others note that the numbers remain small. “We see just a few hundred thousand people leav-ing the pay TV universe each year,” Vincent Letang, executive vice pres-ident and director of global fore-

casting at Magna Global, said. Magna estimated that the number of cord cutters was only 918,000 and the number of “cord shavers,” or those who cut back on pay TV service, was 3.1 million in 2012.

Over time, according to SNL Kagan senior analyst Ian Olgeirson, the increasing number of people who get their TV programming over the Internet will lead to a decline in pay TV penetration rates. But the number of overall multichannel subscribers will continue to rise, according to Olgierson and other analysts.

Meanwhile, the overall cable pro-g ra m m i ng m a r-ket also remains strong. While broad-cast-network rat-ings have declined this fall, cable chan-nels have increased audience share from 67% in third-quar-ter 2008 to 70% in Q3 2012, according to Wakshlag. Cable’s share of advertising has grown to 42% to 33% over that span, he said.

Magna Global is also predicting national cable ad rev-enue will grow by 5.3% in 2012 before slowing to a 4.6% gain in 2013. That’s better than the drop predicted for the broadcasters, Letang noted.

Still, the new video landscape raises a number of ma-jor issues for programmers and operators.

One is audience measurement. Nielsen currently can’t provide combined TV, internet and mobile rat-ings and such data “will be a minimum of two years away,” Pivotal Research Group senior analyst Brian Wieser noted.

That’s not a huge problem right now. “[There’s not] anywhere near as much change in video consumption

as many observers would have others believe,” Wieser said. Mobile viewing, for example, accounted for about 1% of the time spent viewing video in the second quarter of 2012, compared to 82% for live TV viewing and 7% for time-shifted TV.

But the potential mobile audience is large, making better measurement a key issue for 2013 and beyond. The number of Americans using the Web via mobile in-creased by 82% from July 2011 to July 2012, to 95.1 mil-lion, while the number of people using mobile apps was up 85%, to 101.8 million, according to the most recent Nielsen data.

The rapidly expanding amount of available on-demand content also raises some major issues for programmers.

Networks have long relied on their hits and their sched-uling to promote and launch new shows, Fox Networks president of distribution Mike Hopkins said, but the avail-ability of more on-demand content is causing that mod-el to change.

“We want to make sure we are not just a collection of shows and thumbnails that people can access on some new user interface that disconnects the network brand from the TV show,” he said. “Otherwise, we think you end up with a really tough model.”

In recent years, Amazon, Hulu, Google’s YouTube, Sony, Netflix and others have also ramped up their in-vestments in original online programming as more ad dollars have migrated online, said Roku CEO and

founder Anthony Wood. Wood’s firm has worked with a number of pro-grammers and operators, such as Dish Network and HBO, to make their con-tent available on the Roku box.

Over time, online orig-inals “will evolve to the point where it competes directly with cable in terms of quality,” he ar-gues, creating an opening for strong online brands that could compete di-rectly with programmers and operators. “If TV in-

cumbents wait until that happens they are in trouble,” he said.

That dynamic makes TV Everywhere efforts to make more content available on more devices increasingly im-portant. SNL Kagan’s Olgeirson noted that the over-all “scorecard for TV everywhere has so far is mixed,” but that the overall impact has been positive because “the operators have largely been able to prevent” a sig-nificant number of people giving up their multichannel subscriptions for OTT services.

How operators are working to strengthen those ef-forts is the subject of the next story, “TV Everywhere’s Unfinished Business.” )

viewer watch

Over-the-top players like Netflix are beginning to spend on original content. Pictured: Netflix on a Roku XS set-top.

“I’m still waiting for evidence of cord-cutting.”

JACK WAKSHLAG, TURNER


BY GEORGE WINSLOW

Over the past three years, the multichannel-TV industry has rallied around TV Everywhere as the best way to please both subscribers and Wall

Street. But the idea of offering subscribers more content on more devices without disrupting the traditional pay/cable business model remains a work in progress.

Viacom Media Networks now has six authenticated sites up and running, reaching some 45 million pay TV providers, senior vice president of content distribution and marketing Tom Gorke said. But like most of the 15 analysts, multichan-nel providers and programmers interviewed for this year’s Viewer Watch report, Gorke acknowledged that expanding the reach of these offerings “has been slow going.”

“It has not, by any stretch of the matter, gotten wide-spread adoption,” Gorke conceded.

That isn’t to say there hasn’t been considerable progress. Over the past year, Comcast, Time Warner Cable, Cablevi-sion Systems, Cox Communications, DirecTV, Dish Net-work, AT&T and Verizon Communications have all notably expanded the amount of content available via their TV Ev-erywhere offerings.

“We have made significant progress in offering a tremen-dous amount of content and now offer content from over 100 different networks,” Comcast senior vice president of digital and emerging platforms Matthew Strauss said.

And AT&T reports that the TV Everywhere compo-nent of its U-verse TV now streams content to about 20 devices, with about 7,900 titles for mobile, 5,500 for tab-lets and more than 285,000 titles on its website, which attracts more than 1.7 million unique visitors a month, Maria Dillard, vice president of U-verse and video prod-ucts at AT&T Services, said.

“We are working towards ultimately allowing custom-ers to watch whatever content they want when they are on the go,” Verizon FiOS director of product services Maitreyi Krishnaswamy said. The telco recently updated its mobile

app to offer 75 streaming linear chan-nels to Internet-protocol devices in the home.

Looking forward, operators want to add even more live content, according to executives at Comcast, DirecTV and other providers. “The [London Sum-mer] Olympics was a watershed mo-ment,” with more than 1 million live streams served by rights holder NBCUniversal, Strauss said. “By the end of 2012, we will have over 15 nets streaming live, and that is just the tip of the iceberg. As we move forward, we want to include live [events], as well as a vast library of on-demand [content].”

Operators also stressed that TV Ev-erywhere needs to be developed in a way that improves the overall TV view-ing experience.

“People are still looking for the best screen to watch video on,” Tony Goncalves, senior vice pres-ident of digital entertainment products at DirecTV, said. The No. 1 satellite-TV provider has expanded the content on its TV Everywhere offering from six networks to more than 35 in the last year.

“The second screen is important for convenience or catching up on missed episodes,” Goncalves said. “But we are not seeing deep and lengthy engagement on these de-vices and we still have to be focused on what happens in the living room on the big screen.”

As part of that effort, DirecTV has rolled out its Genie whole-home digital video recorder, a device closely tied to mobile apps that use social media and other tools to sim-plify the process of discovering content.

DirecTV has also been actively developing products as a member of the RVU Alliance. RVU technology allows Samsung Smart TVs and other consumer-electronics de-

vices to interact with the Genie boxes, which makes it easier to deliver content to more devices.

Dish Network has also tied TV Ev-erywhere apps into its whole-home DVR, the Hopper, vice president of product management Vivek Khemkha said. The satellite provider plans some major announcements on multiplat-form content at this week’s Interna-tional CES.

For the moment, though, current TV Everywhere offerings tend to have limited content and a number of other drawbacks, Khemkha said. “It is still a very siloed experience that, from a con-sumer experience, needs to be made very simple.”

There’s no question that the industry needs a common platform and inter-

face for authenticated content, Mary-ann Baldwin, vice president of Magid Media Futures at Frank N. Magid Asso-ciates, said. “These TV Everywhere offer-ings are very appealing and can provide a great deal of value, but the solutions are not very elegant at this point,” she said.

As part of that effort, operators are in-creasingly using apps for tablets, smart-phones and gaming consoles to make it easier to find and access content. “The advent of these devices has really opened up opportunities for people like us to revolutionize the way people are watch-ing TV,” Verizon’s Krishnaswamy said. “They enable a much more personalized and interactive experience.”

While these apps promise to dra-matically improve the TV experience — which in turn could give operators a competitive edge against over-the-top

video — a number of business issues must be solved first. In 2012, a number of major programmers significant-

ly expanded the amount of content available as part of TV Everywhere deals, Eric Bruno, vice president of strategic implementation for Verizon, said. “We certainly don’t ex-pect to have any gaps in our TV Everywhere portfolio as we move through 2013,” he said.

But a number of factors, including cost, continue to slow negotiations.

“There is great value in these rights,” Viacom’s Gorke said. “We and other programmers expect some kind of val-ue exchange and that has resulted in things not being lit up overnight. It takes time to work through those issues.”

Paying extra for TV Everywhere rights puts operators in a difficult position with consumers, thanks to the weak economy. “TV Everywhere costs the operator something in terms of their contract negotiations but they have yet to find a way to recoup that revenue,” Ian Olgeirson, senior analyst at SNL Kagan, said. “This won’t be easy because they started out giving the service away.”

Programming costs have also increased the pressure to find better audience-measurement tools. “The goal is to de-liver an ad load across all the platforms and devices and also have the ability to dynamically update and change those ads across those devices,” Comcast’s Strauss said.

Here, too, a number of business issues must get resolved. These include the split between operators and program-mers for ad avails for content distributed on mobile phones, tablets and computers, particularly after the the three-day and seven-day windows for viewing recorded ads pass.

Because of the lack of broad agreement on these issues, programmers remain cautious.

“There are some deals out there that provide markers as to where this will go,” Fox Networks president of distribu-tion Mike Hopkins said. “But everything is still a little un-certain. We don’t want to have to make 10-year business decisions without knowing where this is going.” )

TV Everywhere’s Unfinished BusinessMAking More Content ubiQuitouS iS JuSt PArt of the reMAining tASk

viewer watch

“As we move forward, we want to include live [events], as well as a vast library of

on-demand [content].”

MATT STRAUSS, COMCAST

AT&T now has some 5,500 streaming titles available to U-verse TV subscribers via tablet. Pictured: AT&T’s iPhone app.


viewer watch

source: Pricewaterhouse-Coopers, Global entertainment and media outlook: 2012–2016. Projections for 2011 and 2015.

The Multichannel TV LandscapeCable household penetration will drop below 50% in 2014, but overall multichannel penetration will continue to grow, PricewaterhouseCoopers projects.

total multichannel household Penetration (% of tV homes)

2007

86.787.1

88.487.6

87.8

90.491.2

91.692.1 92.1

2008 2009 2010 2011 2012 2013 2014 2015 2016

94

93

92

91

90

89

88

87

86

85

satellite tV household Penetration (% of tV homes)

2007

28.5

28.1

28.9

2008 2009 2010 2011 2012 2013 2014 2015 2016

29

28.9

28.8

28.7

28.6

28.5

28.4

28.3

28.2

28.1

28

telco tV homes (% of tV homes)

2007

0.81.8

3.95.4

7.4

10.111.8

13.414.9

16.0

2008 2009 2010 2011 2012 2013 2014 2015 2016

18

16

14

12

10

8

6

4

2

0

2007

cable tV household Penetration (% of tV homes)

56.8 56.3

54.1

52.351.6

50.6

49.648.7

47.9

2008 2009 2010 2011 2012 2013 2014 2015 2016

58

57

56

55

54

53

52

51

50

49

48

47

57.9

28

28.228.1

28.7 28.7

28.5

28.2


viewer watch

source: Pricewaterhouse-Coopers, Global entertainment and media outlook: 2012–2016. Projections for 2012-16.

TV revenuetotal tV advertising will grow only slightly in 2013, but it will hit $98.5 billion in 2016, when online and mobile video advertising will reach around $7 billion, according to PricewaterhouseCoopers.

total teleVision adVertising ($ billions)

2007

69.7 69.7

63.7

70.6 71.2

79.6

86.9

2008 2009 2010 2011 2012 2013 2014 2015 2016

100

96

92

88

84

80

76

72

68

64

60

2007

online and mobile tV adVertising ($ billions)

1.01.5 1.6

2.12.7

3.44.2

5.0

5.9

7.0

2008 2009 2010 2011 2012 2013 2014 2015 2016

8

7

6

5

4

3

2

1

0

79.9

88.9

98.5

multichannel teleVision adVertising ($ billions)

2007

26.3

2008 2009 2010 2011 2012 2013 2014 2015 2016

44

42

40

38

36

34

32

30

28

26

24

27.326.3

28.530

32.5

34.4

37.3

39.3

42.6

tV subscriPtion sPending ($ billions)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

96

92

88

84

80

76

72

68

64

60

56

62.465.4 67.6

69.0

71.475

78.6

83.2

88.1

92.9


viewer watch

source: Magna Global. actual Figures 2006-11; estimates for 2012-16.

On Demand Landscapeby 2016, more than 65 million homes should have digital video recorders, but the number of viewers who’ve cut the cord with their pay tV provider will number just 7.5 million, Magna global predicts.

dVr subscriPtions (millions of subs)

2007

24.629.8

34.6

41.7

46.5

50.654.2

57.761.1

64

2008 2009 2010 2011 2012 2013 2014 2015 2016

70

65

60

55

50

45

40

35

30

25

20

Vod households (millions of homes)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

80

75

70

65

60

55

50

45

40

35

30

36.3

42.0

47.4

52.3

59.463.8

66.469.6

72.976.1

2010

oVer-the-toP cord-cutting households (millions of homes)

2011 2012 2013 2014 2015 2016 2017

8

7

6

5

4

3

2

1

0

0.13 0.52 0.921.57

2.50

3.72

5.35

7.51

2010

oVer-the-toP cord-cutting and cord-shaVing homes (millions of homes)

2011 2012 2013 2014 2015 2016 2017

2.0

3.2

4.1

5.1

6.5

8.2

10.3

12.913

12

11

10

9

8

7

6

5

4

3

2

1


viewer watch

source: Pricewaterhouse-Coopers, Global entertainment and media outlook: 2012–2016. Projec-tions for 2012 and 2016. Filmed enter-tainment business includes revenues from box office, home video sell-through and rentals and electronic distribution.

The Content Businessthe filmed entertainment business will see little growth in the next few years, but revenue from electronic content distribution should reach $9.6 billion in 2016, according to PricewaterhouseCoopers.

total electronic distribution market ($ billions)

2007

1.92.4

2.83.2

5.0

6.57.4

8.29.0

9.6

2008 2009 2010 2011 2012 2013 2014 2015 2016

10

9

8

7

6

5

4

3

2

1

0

Physical home Video market ($ billions for rental and sell-through)

2007

19.318.3

17.216.1

13.7 12.611.0 10.5

9.58.4

2008 2009 2010 2011 2012 2013 2014 2015 2016

22

20

18

16

14

12

10

8

6

4

2

filmed entertainment business ($ billions)

2007

31.3

30.9

31.2

30.7

30.931.0

30.9

2008 2009 2010 2011 2012 2013 2014 2015 2016

31.6

31.4

31.2

31

30.8

30.6

30.4

30.2

30

29.8

29.6

30.6

30.0

30.3

electronic distribution market through multichannel ProViders ($ billions)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

3

2.8

2.6

2.4

2.2

2

1.8

1.6

1.4

1.2

1

1.6

1.9

2.1

2.4

2.62.7

2.82.9 2.9 2.9


viewer watch

source: nielsen. ad-supported networks ranked by average audience for full day, live-plus-seven-day, from Jan. 1 to nov. 4, 2012. Compiled for Multichannel News by Fox Cable networks.

Top Basic-Cable networksAt press time, disney Channel was leading the race for most popular network among overall viewers, while eSPn attracted the most men 18 and older and uSA network drew in the most women.

PeoPle 2-Plus (full-day, year-to-date, 2012)

average audience rank network (thousands)

1. Disney Channel 1,686

2. nickelodeon 1,680

3. adult Swim 1,261

4. uSa network 1,258

5. Cartoon 1,169

6. Fox news 1,153

7. TnT 1,112

8. History 1,009

9. ESPn 979

10. nick at nite 903

men 18-Plus (full-day, year-to-date, 2012)


1. ESPn 671

2. History 578

3. Fox news Channel 566

4. TnT 490

5. uSa network 476

6. adult Swim 440

7. TBS 387

8. FX 355

9. Discovery Channel 353

10. a&E 351

women 18-Plus (full-day, year-to-date, 2012)


1. uSa network 676


3. TnT 546

4. HGTV 485

5. a&E 407

6. Food network 396

7. Lifetime 387

8. nick at nite 371

9. TBS 368

10. nickelodeon 360


viewer watch

kids 2-11 (full-day, year-to-date, 2012)


1. Disney Channel 954

2. nickelodeon 892

3. Cartoon network 566

4. nick Jr. 383

5. Disney XD 191

6. adult Swim 190

7. nick at nite 161

8. nicktoons 100

9. Sprout 96

10. aBC Family 85

teens 12-17 (full-day, year-to-date, 2012)


1. adult Swim 299


3. nickelodeon 228

4. Cartoon network 187

4. nick at nite 187

6. MTV 120

7. aBC Family 93

8. Comedy Central 70

9. FX 69

10. TBS 62

young adults 18-24 (full-day, year-to-date, 2012)


1. adult Swim 276

2. nick at nite 145

3. MTV 134

4. nickelodeon 123

5. ESPn 122

6. Comedy Central 110

7. TBS 109

7. (tie) Cartoon network 109

9. FX 106


adults 25-34 (full-day, year-to-date, 2012)


1. adult Swim 216

2. ESPn 181

3. nickelodeon 152

4. TBS 150

5. uSa network 139

6. TnT 133


7. nick at nite 131

9. FX 126

10. a&E 124

adults 35-49 (full-day, year-to-date, 2012)


1. TnT 262

2. uSa network 256

3. History 243

4. ESPn 237

5. TBS 218

6. a&E 216

7. FX 187

8. adult Swim 184

9. Discovery Channel 169

10. ID 166

adults 50-Plus (full-day, year-to-date, 2012)



2. uSa network 659

3. TnT 562

4. History 486

5. HGTV 409

6. TV Land 367

7. a&E 351

8. ESPn 347

8. MSnBC 347

10. aMC 324


viewer watch

source: Pricewaterhouse-Coopers, Global entertainment and media outlook: 2012–2016. Projections for 2012-15

The Online Landscapethree quarters of all American homes will have a high-speed broadband connection in 2013, according to PricewaterhouseCoopers.

2007

total u.s. broadband household Penetration (% of homes)

2008 2009 2010 2011 2012 2013 2014 2015 2016

53.8

59.3 62.1 64.9

69.072.2

75.178.5

81.384.185

80

75

70

65

60

55

50

45

2007

u.s. mobile internet Penetration (% of PoPulation)

2008 2009 2010 2011 2012 2013 2014 2015 2016

1.8 3.89.5

16.9

36.3

49.9

59.465.5

71.677.580

70

60

50

40

30

20

10

0

2007

u.s. broadband access sPending ($ billions)

2008 2009 2010 2011 2012 2013 2014 2015 2016

28.431.5 32.6 33.9

35.737.5 39.3 41.7

44.046.750

45

40

35

30

25

20

2007

u.s. Video internet adVertising ($ billions)

2008 2009 2010 2011 2012 2013 2014 2015 2016

0.42 0.70 0.891.40 1.81

2.303.00

4.00

5.50

7.508

7

6

5

4

3

2

1

0

2007

total u.s. internet wired and mobile access sPending ($ billions)

2008 2009 2010 2011 2012 2013 2014 2015 2016

35.2 37.840.6 43.7

52.459.1 64.6

69.975.3

81.580

70

60

50

40

30

20

10


viewer watch

source: nielsen, The State of Media: The Cross-Platform Report

Digital Consumption TrendsMore than 101 million Americans are now using mobile apps.

weekly tV and digital media usage (hours and minutes sPent by Various age grouPs in all tV homes, Q2 2012)

african- 2-11 12-17 18-24 25-34 35-49 50-64 65+ People 2+ hispanics 2+ americans 2+

Viewing traditional linear tV

23:34 21:37 22:32 27:06 32:02 40:02 45:20 31:45 27:37 44:25

watching time-shifted tV

1:55 1:30 1:34 3:04 3:17 3:06 1:59 2:32 1:39 1:56

using a dVd/blu-ray device

1:54 1:05 1:10 1:25 1:08 0:51 0:33 1:09 1:08 1:26

using a game console

2:20 3:34 2:48 2:03 0:51 0:12 0:04 1:25 1:30 1:41

using the internet on a computer

0:30 1:14 4:56 6:48 6:40 6:01 3:05 4:34 3:04 4:16

watching video via the internet

0:09 0:23 1:21 1:17 0:58 0:41 0:16 0:44 0:41 0:52

mobile subscribers watching video on a mobile phone

n/a 0:22 0:23 0:18 0:09 0:03 <0:01 0:10 0:17 0:15

30 40 50 60 70 80 90 100

audience for aPPs and mobile web (number of PeoPle)

use mobile web

July 2011 52.4 million


use mobile apps



0 20 40 60 80 100 120 140

time sPent on mobile deVices (total minutes sPent by mobile users in the u.s.)

mobile apps

July 2011 58.8 billion


mobile web




viewer watch

source: Horowitz associates, Multiplatform Content & Services, 2012

Online Video BusinessMore than half of Asian and hispanic viewers stream tV programming each week to a connected device, according to a horowitz Associates survey.

online Viewing of tV Programming, by ethnic grouP (% of users 18 and older who watch online tV Programming weekly on Various deVices)

15 20 25 30 35 40 45 50

on a comPuter or laPtoPtotal 18+ 33%

white 31%

african-american 33%

hispanic 39%

asian 47%

20 25 30 35 40 45 50 55

watch on any connected deVicetotal 18+ 45%

white 42%


hispanic 51%

asian 53%

16 18 20 22 24 26 28 30

any handheld deVicetotal 18+ 22%

white 20%


hispanic 22%

asian 31%


viewer watch

10 12 14 16 18 20 22 24

streaming with XboX, Playstation 3, wiitotal 18+ 16%

white 15%


hispanic 23%

asian 16%

3 4 5 6 7 8 9 10

streaming to internet connected tVtotal 18+ 7%

white 7%


hispanic 5%

asian 6%

9 10 11 12 13 14 15 16

cellPhonetotal 18+ 12%

white 10%


hispanic 13%

asian 16%

1 2 3 4 5 6 7 8

streaming from aPPle tV, Vudu, moXi, roku, boXee or google tV deVicetotal 18+ 6%

white 6%

african-american 7%

hispanic 8%

asian 3%

3 6 9 12 15 18 21 24

iPad or other tablettotal 18+ 12%

white 9%


hispanic 11%

asian 23%

2 3 4 5 6 7 8 9

iPod or other mP3 Playertotal 18+ 6%

white 5%

african-american 9%

hispanic 8%

asian 7%

0 2 4 6 8 10 12 14

streaming from blu-ray dVd Player to tVtotal 18+ 7%

white 6%


hispanic 8%

asian 3%

2 2 | m u l t i c h a n n e l n e w s | J a n u a r y 7 , 2 0 1 3 | m u l t i c h a n n e l . c o m

The Second-Screen Landscape

More than one-third (35%) of tablet owners looked up

information about tV shows on a daily basis while they were

watching tV, according to nielsen.0 10 20 30 40 50

20 23 26 29 32 35%

50 60 70 80 90 100%

10 20 30in millions

TOTAL

2012 58%

2013 68%

18-49 years old

2012 67%

2013 74%

Smartphone Ownership (% owning device)

January 2012 26%

February 28%

March 27%

April 30%

May 29%

June 33%

Election Night 28.5 million

CBS’s 2012 Grammy Awards 13 million

2012 MTV Video Music Awards 12.8 million

Social-TV Twi�er Usage (% of active Twi�er users tweeting about TV)

Biggest Social TV Events of 2012 (Number of social comments)

Second-Screen Usage (% using device while watching TV each day)

Shopping while watching TVSmartphones 22%Tablets 45%

Visited a social networking site during the programSmartphones 38%Tablets 44%Looked up information related to the TV show being watchedSmartphones 23%Tablets 35%

Looked up product information for an advertisement seen on TVSmartphones 15%Tablets 26%Looked up coupons or deals related to an advertisement seen on TVSmartphones 12%Tablets 24%

0 10 20 30 40 50

20 23 26 29 32 35%

50 60 70 80 90 100%

10 20 30in millions

TOTAL

2012 58%

2013 68%

18-49 years old

2012 67%

2013 74%


January 2012 26%

February 28%

March 27%

April 30%

May 29%

June 33%










0 10 20 30 40 50

20 23 26 29 32 35%

50 60 70 80 90 100%

10 20 30in millions

TOTAL

2012 58%

2013 68%

18-49 years old

2012 67%

2013 74%


January 2012 26%

February 28%

March 27%

April 30%

May 29%

June 33%









Looked up product information for an advertisement seen on TVSmartphones 15%Tablets 26%Looked up coupons or deals related to an advertisement seen on TVSmartphones 12%Tablets 24%0 10 20 30 40 50

20 23 26 29 32 35%

50 60 70 80 90 100%

10 20 30in millions

TOTAL

2012 58%

2013 68%

18-49 years old

2012 67%

2013 74%


January 2012 26%

February 28%

March 27%

April 30%

May 29%

June 33%










viewer watch

specialreport Second Screen

source: nielsen, The Social Media Report, 2012

Bluefin Labs. Elec-tion comments occurred between 7 p.m. nov. 6, 2012 to 2 a.m. Eastern nov. 7, 2012.

nielsen, The Social Media Report, 2012

Frank n. Magid as-sociates, Mobile Study 2012


Multichannel, Multidevice

nearly four-fifths (78%) of all multichannel subscribers have the ability to stream video to either a handheld device or a tV set, according to a survey

from horowitz Associates.

technology Profile of multichannel subscribers (Percent with deVice)

60 65 70 75 80 85 90 95

broadband Video caPabilitytotal respondents 78%

total cable subscibers 80%

digital cable subscribers 91%

satellite subscribers 76%

fios/u-verse subscribers 88%

55 60 65 70 75 80 85 90

high-sPeed internet accesstotal respondents 71%





25 30 35 40 45 50 55 60

any handheld with Video caPabilitytotal respondents 39%





30 35 40 45 50 55 60 65

internet-to-tV streaming caPabilitytotal respondents 49%





0 20 40 60 80 100

receiVe on-demand serVices from multichannel ProVidertotal respondents 41%



satellite subscribers n/a


viewer watch

specialreport Second Screen

source: Horowitz associates, State of Cable and Digital Media, 2012.


55 60 65 70 75 80 85 90

hd teleVision settotal respondents 68%





10 20 30 40 50 60 70 80

hd serVice from multichannel ProVidertotal respondents 44%





20 25 30 35 40 45 50 55

Ps3, wii or XboX 360total respondents 36%





15 20 25 30 35 40 45 50

iPod, iPod touch or mP3 Playertotal respondents 31%





0 5 10 15 20 25 30 35

iPad or other Portable tablettotal respondents 15%





10 20 30 40 50 60 70 80

digital Video recorder/tiVototal respondents 40%





4 8 12 16 20 24 28 32

internet-connected tVtotal respondents 18%





3 6 9 12 15 18 21 24

tV with internet aPPstotal respondents 12%





12 14 16 18 20 22 24 26

internet caPable blu-ray dVd Playertotal respondents 20%





10 12 14 16 18 20 22 24

home theater systemtotal respondents 17%





1 2 3 4 5 6 7 8

slingboXtotal respondents 3%





0 1 2 3 4 5 6 7

aPPle tV, Vudu boX, roku, google tV or boXee d-link deVicetotal respondents 4%





viewer watch

Documents

WHAT VIEWERS REALLY WANT - Amazon S3 · A Study of ChAnging Viewing hAbitS in A ‘tV eVerywhere’ world Video Consumption’s next wave Page 10 Multichannel tV remains strong, but