STILL
NOT
DEAD
THE REMARKABLE RESILIENCY OF THE US TELEVISION INDUSTRY
The
makes

Death
for

great

of

Television

headlines,

but it’s not happening*
!
The
makes

Death
for

great

of

Television

headlines,

but it’s not happening*
!

*not anytime
soon
The
makes

Death
for

great

of

Television

headlines,

but it’s not happening*
!

*not anytime
soon
(*even if the naysay...
Here are just of few

of the

misconceptions
floating around
MYTH #1

Cord-cutting is a

mass
movement
ROOKLYN
B

fueled mostly by tech
savvy millennials who
get their TV from the
int...
MYTH #1

Cord-cutting is a

mass
movement
ROOKLYN
B

fueled mostly by tech
savvy millennials who
get their TV from the
int...
Research shows that when it
actually does happen,

cord-cutting is largely
an economic decision,

DETROIT

made by people ...
Research shows that when it
actually does happen,

cord-cutting is largely
an economic decision,

DETROIT

© PIKSEL 2013. ...
More About Cord Cutting
More About Cord Cutting
BOOMERANG SUBSCRIBERS
More About Cord Cutting
BOOMERANG SUBSCRIBERS
Viewers who cut the cord for
economic reasons frequently return
to pay TV wh...
More About Cord Cutting
BOOMERANG SUBSCRIBERS
Viewers who cut the cord for
economic reasons frequently return
to pay TV wh...
More About Cord Cutting
BOOMERANG SUBSCRIBERS
Viewers who cut the cord for
economic reasons frequently return
to pay TV wh...
More About Cord Cutting
BOOMERANG SUBSCRIBERS

PAY TV PENETRATION

Viewers who cut the cord for
economic reasons frequentl...
More About Cord Cutting
BOOMERANG SUBSCRIBERS

PAY TV PENETRATION

Viewers who cut the cord for
economic reasons frequentl...
More About Cord Cutting
BOOMERANG SUBSCRIBERS

PAY TV PENETRATION

Viewers who cut the cord for
economic reasons frequentl...
More About Cord Cutting
BOOMERANG SUBSCRIBERS

PAY TV PENETRATION

Viewers who cut the cord for
economic reasons frequentl...
More About Cord Cutting
BOOMERANG SUBSCRIBERS

PAY TV PENETRATION

Viewers who cut the cord for
economic reasons frequentl...
More About Cord Cutting
BOOMERANG SUBSCRIBERS

PAY TV PENETRATION

Viewers who cut the cord for
economic reasons frequentl...
Numerous surveys show that Americans
are largely dissatisfied with
their pay TV service, so while cord
cutting may not be ...
Numerous surveys show that Americans
are largely dissatisfied with
their pay TV service, so while cord
cutting may not be ...
Numerous surveys show that Americans
are largely dissatisfied with
their pay TV service, so while cord
cutting may not be ...
Numerous surveys show that Americans
are largely dissatisfied with
their pay TV service, so while cord
cutting may not be ...
MYTH #2

Kids pretty much

ignore
mainstream
TV and just watch
Netflix on their

iPads
MYTH #2

Kids pretty much

ignore
mainstream
TV and just watch
Netflix on their

iPads

G!
ON
WR
A recent Kaiser study shows that

71%

of 8-18 year olds have a

TV in their bedroom.
A recent Kaiser study shows that

71%

of 8-18 year olds have a

TV in their bedroom.
A Deloitte survey of “trailing
mille...
A recent Kaiser study shows that

71%

of 8-18 year olds have a

TV in their bedroom.
A Deloitte survey of “trailing
mille...
Viewing habits are changing
Viewing habits are changing
They’re just not there yet.
Viewing habits are changing
They’re just not there yet.
Tablet and streaming viewing index
much higher with upper income
f...
Viewing habits are changing
They’re just not there yet.
Tablet and streaming viewing index
much higher with upper income
f...
Viewing habits are changing
They’re just not there yet.
Tablet and streaming viewing index
much higher with upper income
f...
Viewing habits are changing
They’re just not there yet.
Tablet and streaming viewing index
much higher with upper income
f...
MYTH #3

Your pay TV
provider is the one
forcing you to

pay for 800

channels you
don’t want to
watch
MYTH #3

Your pay TV
provider is the one
forcing you to

pay for 800

channels you
don’t want to
watch

G!
ON
WR
The networks

are the ones
forcing pay TV operators to take

bundles— groupings of

channels they own. So if you have
ABC,...
The networks

are the ones
forcing pay TV operators to take

bundles— groupings of

channels they own. So if you have
ABC,...
The networks

are the ones
forcing pay TV operators to take

bundles— groupings of

channels they own. So if you have
ABC,...
Who Owns What: Network Bundles
Who Owns What: Network Bundles
ABC/DISNEY

!

ABC Television
ABC News
Fusion
A+E Networks (JV)
• A&E
• History
• Bio.
• H2...
Who Owns What: Network Bundles
ABC/DISNEY

CBS

ABC Television
ABC News
Fusion
A+E Networks (JV)
• A&E
• History
• Bio.
• ...
Who Owns What: Network Bundles
ABC/DISNEY

CBS

NBC UNIVERSAL

ABC Television
ABC News
Fusion
A+E Networks (JV)
• A&E
• Hi...
Who Owns What: Network Bundles
ABC/DISNEY

CBS

NBC UNIVERSAL

FOX

ABC Television
ABC News
Fusion
A+E Networks (JV)
• A&E...
Who Owns What: Network Bundles
ABC/DISNEY

CBS

NBC UNIVERSAL

FOX

VIACOM

ABC Television
ABC News
Fusion
A+E Networks (J...
MYTH #4

Cutting the cord
and switching to
web TV lets you

stick it to
the cable
companies for
overcharging you!
MYTH #4

Cutting the cord
and switching to
web TV lets you

stick it to
the cable
companies for
overcharging you!

G!
ON
W...
Where do you think that
internet connection
comes from?
Where do you think that
internet connection
comes from?
own the
broadband connections in
the US, and with just two or
thre...
Where do you think that
internet connection
comes from?
own the
broadband connections in
the US, and with just two or
thre...
Net Neutrality and GAFA
Net Neutrality and GAFA
GAFA (GoogleAmazonFacebookApple) have all
been trying to break into the TV industry to no
avail. T...
Net Neutrality and GAFA
GAFA (GoogleAmazonFacebookApple) have all
been trying to break into the TV industry to no
avail. T...
Net Neutrality and GAFA
GAFA (GoogleAmazonFacebookApple) have all
been trying to break into the TV industry to no
avail. T...
MYTH #5

Second Screen is
all about

Social TV
and Social TV is all
about

Twitter
MYTH #5

Second Screen is
all about

Social TV
and Social TV is all
about

Twitter

G!
ON
WR
Second Screen is more
than just social TV and
social TV is more than
just Twitter
Second Screen is more
than just social TV and
social TV is more than
just Twitter

75% of Americans rarely, if
ever, use T...
Second Screen is more
than just social TV and
social TV is more than
just Twitter

75% of Americans rarely, if
ever, use T...
More About Second Screen
More About Second Screen
TWITTER
While Twitter is popular with event shows, game
shows and shows aimed at teenage girls, a...
More About Second Screen
TWITTER
While Twitter is popular with event shows, game
shows and shows aimed at teenage girls, a...
More About Second Screen
TWITTER
While Twitter is popular with event shows, game
shows and shows aimed at teenage girls, a...
More About Second Screen
TWITTER
While Twitter is popular with event shows, game
shows and shows aimed at teenage girls, a...
More About Second Screen
TWITTER

The 4 S’s

While Twitter is popular with event shows, game
shows and shows aimed at teen...
More About Second Screen
TWITTER

The 4 S’s

While Twitter is popular with event shows, game
shows and shows aimed at teen...
MYTH #6

TV viewing has

decreased
Thanks to the
internet, people are
watching

less TV
MYTH #6

TV viewing has

decreased
Thanks to the
internet, people are
watching

less TV

G!
ON
WR
People are watching
more TV than ever.
They’re just not watching
it live.

Time-shifting and
VOD means that
more people ar...
People are watching
more TV than ever.
They’re just not watching
it live.

Time-shifting and
VOD means that
more people ar...
MYTH #7

TV Everywhere
is the future.
We’ll be able to

watch TV
wherever, whenever
and however we
want
MYTH #7

TV Everywhere
is the future.
We’ll be able to

watch TV
wherever, whenever
and however we
want

G!
ON
WR
rt of)
(...
We’ll be able to watch TV
whenever and however,
but

wherever

may still be an issue
We’ll be able to watch TV
whenever and however,
but

wherever

may still be an issue

Out-of-home doesn’t

have many use c...
The TV Industry Is Changing
The TV Industry Is Changing
It’s just not changing as fast
as many would like it to.
The TV Industry Is Changing
It’s just not changing as fast
as many would like it to.
A lot of that has to do with the fact...
The TV Industry Is Changing
It’s just not changing as fast
as many would like it to.
A lot of that has to do with the fact...
The TV Industry Is Changing
It’s just not changing as fast
as many would like it to.
A lot of that has to do with the fact...
Thank You.
If you’d like to benefit from

insights like the ones

you found here, contact us at info@piksel.com
Some Proof I’m Not Just Making This Up
SLIDE 5: “Moffett and Nathanson wrote. "We have always argued that cord-cutting is ...
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Still Not Dead: 7 Myths About The Current State of the TV Industry Debunked

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Piksel's Global Lead Analyst Alan Wolk dispels seven common myths about today's TV industry, taking on everything from cord cutting to Twitter in this insightful and valuable presentation.

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Still Not Dead: 7 Myths About The Current State of the TV Industry Debunked

  1. 1. STILL NOT DEAD THE REMARKABLE RESILIENCY OF THE US TELEVISION INDUSTRY
  2. 2. The makes Death for great of Television headlines, but it’s not happening* !
  3. 3. The makes Death for great of Television headlines, but it’s not happening* ! *not anytime soon
  4. 4. The makes Death for great of Television headlines, but it’s not happening* ! *not anytime soon (*even if the naysayers prove correct, the demise they’re predicting is still 10-15 years away.)
  5. 5. Here are just of few of the misconceptions floating around
  6. 6. MYTH #1 Cord-cutting is a mass movement ROOKLYN B fueled mostly by tech savvy millennials who get their TV from the internet
  7. 7. MYTH #1 Cord-cutting is a mass movement ROOKLYN B fueled mostly by tech savvy millennials who get their TV from the internet G! ON WR
  8. 8. Research shows that when it actually does happen, cord-cutting is largely an economic decision, DETROIT made by people who can no longer afford pay TV and give it up for rabbit ears, not Netflix, Amazon and Hulu.
  9. 9. Research shows that when it actually does happen, cord-cutting is largely an economic decision, DETROIT © PIKSEL 2013. ALL RIGHTS RESERVED | CONFIDENTIAL made by people who can no longer afford pay TV and give it up for rabbit ears, not Netflix, Amazon and Hulu. According to noted industry analyst Craig Moffett, cordcutting, which he defines as “also including that "gap" created by new household formation that DID NOT translate into Pay TV growth” is happening at a rate of 0.5% a year and actually decelerated in Q3 2013.* *UPDATED 12.13.13 to include clarification from Moffett PAGE
  10. 10. More About Cord Cutting
  11. 11. More About Cord Cutting BOOMERANG SUBSCRIBERS
  12. 12. More About Cord Cutting BOOMERANG SUBSCRIBERS Viewers who cut the cord for economic reasons frequently return to pay TV when their circumstances improve, and then cut the cord again when they deteriorate.
  13. 13. More About Cord Cutting BOOMERANG SUBSCRIBERS Viewers who cut the cord for economic reasons frequently return to pay TV when their circumstances improve, and then cut the cord again when they deteriorate. Unlike professionals who make moral/philosophical decisions to abandon pay TV (and write about it on media and tech blogs) this demographic is not lost to the industry forever.
  14. 14. More About Cord Cutting BOOMERANG SUBSCRIBERS Viewers who cut the cord for economic reasons frequently return to pay TV when their circumstances improve, and then cut the cord again when they deteriorate. Unlike professionals who make moral/philosophical decisions to abandon pay TV (and write about it on media and tech blogs) this demographic is not lost to the industry forever. PAY TV PENETRATION
  15. 15. More About Cord Cutting BOOMERANG SUBSCRIBERS PAY TV PENETRATION Viewers who cut the cord for economic reasons frequently return to pay TV when their circumstances improve, and then cut the cord again when they deteriorate. • Unlike professionals who make moral/philosophical decisions to abandon pay TV (and write about it on media and tech blogs) this demographic is not lost to the industry forever. Pay TV penetration in the US is around 87%
  16. 16. More About Cord Cutting BOOMERANG SUBSCRIBERS PAY TV PENETRATION Viewers who cut the cord for economic reasons frequently return to pay TV when their circumstances improve, and then cut the cord again when they deteriorate. • Unlike professionals who make moral/philosophical decisions to abandon pay TV (and write about it on media and tech blogs) this demographic is not lost to the industry forever. Pay TV penetration in the US is around 87% • In the early 2000s, it was around 80%
  17. 17. More About Cord Cutting BOOMERANG SUBSCRIBERS PAY TV PENETRATION Viewers who cut the cord for economic reasons frequently return to pay TV when their circumstances improve, and then cut the cord again when they deteriorate. • Unlike professionals who make moral/philosophical decisions to abandon pay TV (and write about it on media and tech blogs) this demographic is not lost to the industry forever. Pay TV penetration in the US is around 87% • In the early 2000s, it was around 80% • Satellite services added another 6% in the mid-2000s, mostly those who could not afford or get access to traditional cable
  18. 18. More About Cord Cutting BOOMERANG SUBSCRIBERS PAY TV PENETRATION Viewers who cut the cord for economic reasons frequently return to pay TV when their circumstances improve, and then cut the cord again when they deteriorate. • Unlike professionals who make moral/philosophical decisions to abandon pay TV (and write about it on media and tech blogs) this demographic is not lost to the industry forever. Pay TV penetration in the US is around 87% • In the early 2000s, it was around 80% • Satellite services added another 6% in the mid-2000s, mostly those who could not afford or get access to traditional cable • A final 1% came on board in the past few years, during the digital era
  19. 19. More About Cord Cutting BOOMERANG SUBSCRIBERS PAY TV PENETRATION Viewers who cut the cord for economic reasons frequently return to pay TV when their circumstances improve, and then cut the cord again when they deteriorate. • Unlike professionals who make moral/philosophical decisions to abandon pay TV (and write about it on media and tech blogs) this demographic is not lost to the industry forever. Pay TV penetration in the US is around 87% • • Satellite services added another 6% in the mid-2000s, mostly those who could not afford or get access to traditional cable • • In the early 2000s, it was around 80% A final 1% came on board in the past few years, during the digital era A recent— and oft-cited— Nielsen study revealed there were 5 million “zero TV households” up from 2 million in 2007.
  20. 20. More About Cord Cutting BOOMERANG SUBSCRIBERS PAY TV PENETRATION Viewers who cut the cord for economic reasons frequently return to pay TV when their circumstances improve, and then cut the cord again when they deteriorate. • Unlike professionals who make moral/philosophical decisions to abandon pay TV (and write about it on media and tech blogs) this demographic is not lost to the industry forever. Pay TV penetration in the US is around 87% • • Satellite services added another 6% in the mid-2000s, mostly those who could not afford or get access to traditional cable • • In the early 2000s, it was around 80% A final 1% came on board in the past few years, during the digital era A recent— and oft-cited— Nielsen study revealed there were 5 million “zero TV households” up from 2 million in 2007. • Given that pay TV subscriptions actually grew during that period, many are likely part of the 15 million households (13%) who never had pay TV to begin with.
  21. 21. Numerous surveys show that Americans are largely dissatisfied with their pay TV service, so while cord cutting may not be an issue today, it could soon become one: high prices and dissatisfied customers are a deadly combination.
  22. 22. Numerous surveys show that Americans are largely dissatisfied with their pay TV service, so while cord cutting may not be an issue today, it could soon become one: high prices and dissatisfied customers are a deadly combination. What’s stopping it?
  23. 23. Numerous surveys show that Americans are largely dissatisfied with their pay TV service, so while cord cutting may not be an issue today, it could soon become one: high prices and dissatisfied customers are a deadly combination. What’s stopping it? A lack of attractive alternatives:
  24. 24. Numerous surveys show that Americans are largely dissatisfied with their pay TV service, so while cord cutting may not be an issue today, it could soon become one: high prices and dissatisfied customers are a deadly combination. What’s stopping it? A lack of attractive alternatives: Cobbled together solutions requiring a number of different devices are not a viable mass market option.
  25. 25. MYTH #2 Kids pretty much ignore mainstream TV and just watch Netflix on their iPads
  26. 26. MYTH #2 Kids pretty much ignore mainstream TV and just watch Netflix on their iPads G! ON WR
  27. 27. A recent Kaiser study shows that 71% of 8-18 year olds have a TV in their bedroom.
  28. 28. A recent Kaiser study shows that 71% of 8-18 year olds have a TV in their bedroom. A Deloitte survey of “trailing millennials (ages 14 -23) shows that while 20% say they watch TV on their tablets, 62% are still watching live on a TV set
  29. 29. A recent Kaiser study shows that 71% of 8-18 year olds have a TV in their bedroom. A Deloitte survey of “trailing millennials (ages 14 -23) shows that while 20% say they watch TV on their tablets, 62% are still watching live on a TV set A 2013 Pew survey shows that only 35% of Americans actually own tablets.
  30. 30. Viewing habits are changing
  31. 31. Viewing habits are changing They’re just not there yet.
  32. 32. Viewing habits are changing They’re just not there yet. Tablet and streaming viewing index much higher with upper income families, but even there they are far from the dominant behavior.
  33. 33. Viewing habits are changing They’re just not there yet. Tablet and streaming viewing index much higher with upper income families, but even there they are far from the dominant behavior. It’s hard to predict what will become the dominant behavior, but live TV viewed on an actual TV set is still the primary use case for all age and income groups.
  34. 34. Viewing habits are changing They’re just not there yet. Tablet and streaming viewing index much higher with upper income families, but even there they are far from the dominant behavior. It’s hard to predict what will become the dominant behavior, but live TV viewed on an actual TV set is still the primary use case for all age and income groups. Remember too, that the viewing habits of today’s 12 year olds won’t start to affect the industry for at least 10 more years.
  35. 35. Viewing habits are changing They’re just not there yet. Tablet and streaming viewing index much higher with upper income families, but even there they are far from the dominant behavior. It’s hard to predict what will become the dominant behavior, but live TV viewed on an actual TV set is still the primary use case for all age and income groups. Remember too, that the viewing habits of today’s 12 year olds won’t start to affect the industry for at least 10 more years.
  36. 36. MYTH #3 Your pay TV provider is the one forcing you to pay for 800 channels you don’t want to watch
  37. 37. MYTH #3 Your pay TV provider is the one forcing you to pay for 800 channels you don’t want to watch G! ON WR
  38. 38. The networks are the ones forcing pay TV operators to take bundles— groupings of channels they own. So if you have ABC, you also have Disney and Disney XD and ESPN and ESPN2
  39. 39. The networks are the ones forcing pay TV operators to take bundles— groupings of channels they own. So if you have ABC, you also have Disney and Disney XD and ESPN and ESPN2 The operators would love to break up the bundles and offer smaller, cheaper packages but the networks won’t do it.
  40. 40. The networks are the ones forcing pay TV operators to take bundles— groupings of channels they own. So if you have ABC, you also have Disney and Disney XD and ESPN and ESPN2 The operators would love to break up the bundles and offer smaller, cheaper packages but the networks won’t do it. In their defense, the networks claim that bundling keeps fees down by spreading out costs, something many analysts believe is a valid point.
  41. 41. Who Owns What: Network Bundles
  42. 42. Who Owns What: Network Bundles ABC/DISNEY ! ABC Television ABC News Fusion A+E Networks (JV) • A&E • History • Bio. • H2 • Military History • Crime & Investigation • Lifetime • Lifetime Movie Network • Lifetime Real Women Disney Channel Disney Cinemagic Disney Junior Disney XD ESPN ESPN2 ESPN on ABC ESPN Classic ESPNews ESPN Deportes
  43. 43. Who Owns What: Network Bundles ABC/DISNEY CBS ABC Television ABC News Fusion A+E Networks (JV) • A&E • History • Bio. • H2 • Military History • Crime & Investigation • Lifetime • Lifetime Movie Network • Lifetime Real Women Disney Channel Disney Cinemagic Disney Junior Disney XD ESPN ESPN2 ESPN on ABC ESPN Classic ESPNews ESPN Deportes CBS Television CBS News CBS Sports The CW Showtime Showtime 2, Showtime Showcase, Showtime Extreme Showtime Beyond Showtime Next Showtime Women Showtime Family Zone The Movie Channel The Movie Channel Xtra Smithsonian TV Guide Network ! ! ! ! ! ! ! !
  44. 44. Who Owns What: Network Bundles ABC/DISNEY CBS NBC UNIVERSAL ABC Television ABC News Fusion A+E Networks (JV) • A&E • History • Bio. • H2 • Military History • Crime & Investigation • Lifetime • Lifetime Movie Network • Lifetime Real Women Disney Channel Disney Cinemagic Disney Junior Disney XD ESPN ESPN2 ESPN on ABC ESPN Classic ESPNews ESPN Deportes CBS Television CBS News CBS Sports The CW Showtime Showtime 2, Showtime Showcase, Showtime Extreme Showtime Beyond Showtime Next Showtime Women Showtime Family Zone The Movie Channel The Movie Channel Xtra Smithsonian TV Guide Network Bravo Chiller Cloo CNBC E! Esquire Channel G4 MSNBC Mun2 NBC NBC Sports Oxygen PBS Kids Sprout Syfy Telemundo The Golf Channel The Weather Channel (JV) TV One (JV) Universal HD USA Network ! ! ! ! ! ! ! ! ! !
  45. 45. Who Owns What: Network Bundles ABC/DISNEY CBS NBC UNIVERSAL FOX ABC Television ABC News Fusion A+E Networks (JV) • A&E • History • Bio. • H2 • Military History • Crime & Investigation • Lifetime • Lifetime Movie Network • Lifetime Real Women Disney Channel Disney Cinemagic Disney Junior Disney XD ESPN ESPN2 ESPN on ABC ESPN Classic ESPNews ESPN Deportes CBS Television CBS News CBS Sports The CW Showtime Showtime 2, Showtime Showcase, Showtime Extreme Showtime Beyond Showtime Next Showtime Women Showtime Family Zone The Movie Channel The Movie Channel Xtra Smithsonian TV Guide Network Bravo Chiller Cloo CNBC E! Esquire Channel G4 MSNBC Mun2 NBC NBC Sports Oxygen PBS Kids Sprout Syfy Telemundo The Golf Channel The Weather Channel (JV) TV One (JV) Universal HD USA Network Big Ten Network (JV) Fox Business Network Fox College Sports Fox Broadcasting Fox News Channel Fox Soccer Plus Fox Sports 1 Fox Sports 2 Fox Sports Networks FX FXX FX Movie Channel National Geographic Channel (JV) Nat Geo Mundo (JV) Nat Geo Wild (JV) ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
  46. 46. Who Owns What: Network Bundles ABC/DISNEY CBS NBC UNIVERSAL FOX VIACOM ABC Television ABC News Fusion A+E Networks (JV) • A&E • History • Bio. • H2 • Military History • Crime & Investigation • Lifetime • Lifetime Movie Network • Lifetime Real Women Disney Channel Disney Cinemagic Disney Junior Disney XD ESPN ESPN2 ESPN on ABC ESPN Classic ESPNews ESPN Deportes CBS Television CBS News CBS Sports The CW Showtime Showtime 2, Showtime Showcase, Showtime Extreme Showtime Beyond Showtime Next Showtime Women Showtime Family Zone The Movie Channel The Movie Channel Xtra Smithsonian TV Guide Network Bravo Chiller Cloo CNBC E! Esquire Channel G4 MSNBC Mun2 NBC NBC Sports Oxygen PBS Kids Sprout Syfy Telemundo The Golf Channel The Weather Channel (JV) TV One (JV) Universal HD USA Network Big Ten Network (JV) Fox Business Network Fox College Sports Fox Broadcasting Fox News Channel Fox Soccer Plus Fox Sports 1 Fox Sports 2 Fox Sports Networks FX FXX FX Movie Channel National Geographic Channel (JV) Nat Geo Mundo (JV) Nat Geo Wild (JV) BET CMT CMT Pure Country Comedy Central Logo MTV MTV2 MTV Hits MTV Jams mtvU Nick at Nite Nick Jr. Nickelodeon Nicktoons Palladia Spike TeenNick Tr3s TV Land VH1 VH1 Classic VH1 Soul ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
  47. 47. MYTH #4 Cutting the cord and switching to web TV lets you stick it to the cable companies for overcharging you!
  48. 48. MYTH #4 Cutting the cord and switching to web TV lets you stick it to the cable companies for overcharging you! G! ON WR
  49. 49. Where do you think that internet connection comes from?
  50. 50. Where do you think that internet connection comes from? own the broadband connections in the US, and with just two or three providers to choose The MVPDs from, competition isn’t fierce
  51. 51. Where do you think that internet connection comes from? own the broadband connections in the US, and with just two or three providers to choose The MVPDs from, competition isn’t fierce That’s why the MVPDs aren’t too worried about you switching to Netflix. They’ll just impose bandwidth caps to make up the difference
  52. 52. Net Neutrality and GAFA
  53. 53. Net Neutrality and GAFA GAFA (GoogleAmazonFacebookApple) have all been trying to break into the TV industry to no avail. The networks and studios believe they have no reason to play ball with them.
  54. 54. Net Neutrality and GAFA GAFA (GoogleAmazonFacebookApple) have all been trying to break into the TV industry to no avail. The networks and studios believe they have no reason to play ball with them. Recent speculation has centered on GAFA lobbying to break up the hold the MVPDs have on broadband access in the US and it’s potential interference with the principle of Net Neutrality.
  55. 55. Net Neutrality and GAFA GAFA (GoogleAmazonFacebookApple) have all been trying to break into the TV industry to no avail. The networks and studios believe they have no reason to play ball with them. Recent speculation has centered on GAFA lobbying to break up the hold the MVPDs have on broadband access in the US and it’s potential interference with the principle of Net Neutrality. Were they to convince the powers that be to redistribute broadband access, the effect on the industry would be considerable.
  56. 56. MYTH #5 Second Screen is all about Social TV and Social TV is all about Twitter
  57. 57. MYTH #5 Second Screen is all about Social TV and Social TV is all about Twitter G! ON WR
  58. 58. Second Screen is more than just social TV and social TV is more than just Twitter
  59. 59. Second Screen is more than just social TV and social TV is more than just Twitter 75% of Americans rarely, if ever, use Twitter and that number seems to be staying pretty static
  60. 60. Second Screen is more than just social TV and social TV is more than just Twitter 75% of Americans rarely, if ever, use Twitter and that number seems to be staying pretty static binge time-shifted The trend towards viewing and viewing works against Twitter’s time-sensitive platform.
  61. 61. More About Second Screen
  62. 62. More About Second Screen TWITTER While Twitter is popular with event shows, game shows and shows aimed at teenage girls, another type of second screen experience is being developed to account for binge and time-shifting viewing.
  63. 63. More About Second Screen TWITTER While Twitter is popular with event shows, game shows and shows aimed at teenage girls, another type of second screen experience is being developed to account for binge and time-shifting viewing. Aimed at serious fans rather than casual viewers, these experiences are designed to be accessed after, rather than during, the show, when fans can spend more time with them.
  64. 64. More About Second Screen TWITTER While Twitter is popular with event shows, game shows and shows aimed at teenage girls, another type of second screen experience is being developed to account for binge and time-shifting viewing. Aimed at serious fans rather than casual viewers, these experiences are designed to be accessed after, rather than during, the show, when fans can spend more time with them. They can also be ad supported, creating a second revenue stream for networks and operators.
  65. 65. More About Second Screen TWITTER While Twitter is popular with event shows, game shows and shows aimed at teenage girls, another type of second screen experience is being developed to account for binge and time-shifting viewing. Aimed at serious fans rather than casual viewers, these experiences are designed to be accessed after, rather than during, the show, when fans can spend more time with them. They can also be ad supported, creating a second revenue stream for networks and operators. The 4 S’s
  66. 66. More About Second Screen TWITTER The 4 S’s While Twitter is popular with event shows, game shows and shows aimed at teenage girls, another type of second screen experience is being developed to account for binge and time-shifting viewing. Future second screen experiences will be populated by some combination of the 4 S’s: Aimed at serious fans rather than casual viewers, these experiences are designed to be accessed after, rather than during, the show, when fans can spend more time with them. They can also be ad supported, creating a second revenue stream for networks and operators.
  67. 67. More About Second Screen TWITTER The 4 S’s While Twitter is popular with event shows, game shows and shows aimed at teenage girls, another type of second screen experience is being developed to account for binge and time-shifting viewing. Future second screen experiences will be populated by some combination of the 4 S’s: Aimed at serious fans rather than casual viewers, these experiences are designed to be accessed after, rather than during, the show, when fans can spend more time with them. They can also be ad supported, creating a second revenue stream for networks and operators. STORIES: scenes from next week, behind the scenes videos, cast member interviews, etc. SOCIAL: in-app message boards and blogs plus Twitter and Facebook STATS: sports statistics, polls, voting, infographics SHOPPING: t-commerce from product placement and advertising
  68. 68. MYTH #6 TV viewing has decreased Thanks to the internet, people are watching less TV
  69. 69. MYTH #6 TV viewing has decreased Thanks to the internet, people are watching less TV G! ON WR
  70. 70. People are watching more TV than ever. They’re just not watching it live. Time-shifting and VOD means that more people are watching than ever before.
  71. 71. People are watching more TV than ever. They’re just not watching it live. Time-shifting and VOD means that more people are watching than ever before. Hence the pressure on Nielsen to take a full 7 days of time shifted viewing into account
  72. 72. MYTH #7 TV Everywhere is the future. We’ll be able to watch TV wherever, whenever and however we want
  73. 73. MYTH #7 TV Everywhere is the future. We’ll be able to watch TV wherever, whenever and however we want G! ON WR rt of) (so
  74. 74. We’ll be able to watch TV whenever and however, but wherever may still be an issue
  75. 75. We’ll be able to watch TV whenever and however, but wherever may still be an issue Out-of-home doesn’t have many use cases beyond news and live sports and rights issues continue to be an issue, so operators may not push it.
  76. 76. The TV Industry Is Changing
  77. 77. The TV Industry Is Changing It’s just not changing as fast as many would like it to.
  78. 78. The TV Industry Is Changing It’s just not changing as fast as many would like it to. A lot of that has to do with the fact that most players are still making money. So there’s no incentive for them to change and the industry is too tightly bound together for anyone try and go it alone.
  79. 79. The TV Industry Is Changing It’s just not changing as fast as many would like it to. A lot of that has to do with the fact that most players are still making money. So there’s no incentive for them to change and the industry is too tightly bound together for anyone try and go it alone. The key to success in the years ahead will be to constantly re-evaluate your decisions. Because what made sense six months ago, may no longer make sense today.
  80. 80. The TV Industry Is Changing It’s just not changing as fast as many would like it to. A lot of that has to do with the fact that most players are still making money. So there’s no incentive for them to change and the industry is too tightly bound together for anyone try and go it alone. The key to success in the years ahead will be to constantly re-evaluate your decisions. Because what made sense six months ago, may no longer make sense today. Things change slowly. And then, all at once.
  81. 81. Thank You. If you’d like to benefit from insights like the ones you found here, contact us at info@piksel.com
  82. 82. Some Proof I’m Not Just Making This Up SLIDE 5: “Moffett and Nathanson wrote. "We have always argued that cord-cutting is an economic phenomenon, not a technological one. ... Rapidly rising prices are squeezing lower-income consumers out of the ecosystem.” Los Angeles Times, Nov 12, 2013 ! SLIDE 5: Pace Of Cord-Cutting Growth Slows in Q3: Analyst. Multichannel News, Nov 12, 2013 ! SLIDE 6: Study: U.S. Broadband Homes Without Pay-TV are Basically Flat at 9% VideoNuze iQ, Oct 3, 2013 ! SLIDE 9: Kaiser Study. Pew Study. Deloitte Study ! SLIDE 18: In their IPO filing, Twitter stated they had 100 million “active users” and that 77% of usage was USbased. 77 million people = 24.5% of the population. ! SLIDE 18: Twitter Has A Serious User Growth Problem Ahead of its IPO, AllTwitter, Oct 17, 2013 ! SLIDE 21: Surprise, You’re Watching More TV Than Ever, AllThingsDigital, Dec. 4, 2013 ! SLIDE 23: Report: Pay-TV Tablet App Usage Improves, But Still Nominal Video iQ, Sept 3, 2013 !

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