Brian Fuhrer: Senior Vice President, Product Leadership, National and Cross-Platform Television Audience Measurement, Neilsen
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  • 1. TRENDS  AND  OPPORTUNITIES  BASED  ON    U.S.  VIDEO   CONSUMPTION   Brian  Fuhrer   SVP,  Product  Leadership   WHAT’S  ON  THE  MENU?  
  • 2. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   2  2   WHAT’S  ON  THE  MENU?   Trends  and  opportuniOes  in  the  U.S.  video  market..   A  brief  review  of  some  key  trends   •  The  past  5  years  in  the  next  5  minutes   Recent  landscape  changes  driving  opportuni:es     The  increasing  popularity  of  Video  On  Demand     Key  enablers  to  sa:sfying  the  VOD  appe:te…      
  • 3. YEARS  5 THE   LAST  
  • 4. MINUTES  5 IN  THE   NEXT  
  • 5. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   5   SMARTPHONES   Source:  Nielsen’s  Q3  2008  3  Screen  Report  and  Q2  2013  Cross  PlaXorm  Report,  StaOsOc:  Average  number  of  persons  watching  video  on  a  mobile  phone  during  a  month.   U.S.  smartphone   video  consumers   have  quintupled   from  10  to                           50  Million    
  • 6. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   6   MOBILE  VIDEO   Source:  Nielsen’s  Q3  2008  3  Screen  Report  and  Q2  2013  Cross  PlaXorm  Report,  StaOsOc:  Average  number  of  persons  watching  video  on  a  mobile  phone  during  a  month.   Mobile  video  users   are  spending  59%   more  Ome  watching   video  on  their   phones.      
  • 7. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   7   TABLETS   Source:    NPower,  NPM    Panel,  StaOsOc:  Number  of  households  with  at  least  1  tablet,  Interval:  11/02/2013   Introduced  just  3   years  ago,  over     35  million  U.S.   homes  have  at  least   one  tablet  
  • 8. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   8   COMPUTER  STREAMING   Source:  Nielsen’s  Q3  2008  3  Screen  Report  and  Q2  2013  Cross  PlaXorm  Report,  StaOsOc:  Average  minutes  per  user  per  day  streaming  video  on  a  computer   Video  consumpOon   on  a  computer  is  up   157%  among  users  
  • 9. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   9   MULTI-­‐MEDIA  DEVICES   Over-­‐The-­‐Top   enabling  devices  are   steadily  gaining   tracOon  
  • 10. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   10   OVER-­‐THE-­‐TOP   Source:  Nielsen’s  NPM  Panel,  StaOsOc:  Unweighted  count  of  homes  with  a  television  that  is  enabled  to  access  the  internet  either  directly  or  through  an  adached  device,  Interval:  10/25/2013   25%  of  U.S.  TV   homes  can  now   access  internet   video  directly  on   their  television    
  • 11. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   11   VIDEO  GAME  CONSOLE   Source:  NPower,  StaOsOc:  Percent  of  total  screen  Ome  that  is  adributed  to  video  game  console  usage,  Interval:  Q3  2013  (7/1/2013  -­‐  9/29/2013)   12%  of  total  TV   screen  Ome  for   18-­‐24  year  olds  is   now  spent  with  a   game  console  
  • 12. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   12   DVD  USAGE   Source:  NPower,  StaOsOc:  Average  minutes  per  person  per  day  using  a  DVD  player,  Interval:  Q3  2008  (6/30/2008  -­‐  9/28/2008)  and  Q3  2013  (7/1/2013  -­‐  9/29/2013)   18-­‐24  year  olds   have  cut  their   DVD  player   usage  by  50%    
  • 13. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   13   VCR   The  VCR  has   virtually   disappeared  
  • 14. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   14   DVR  PLAYBACK   Source:  NPower,  StaOsOc:  Average  minutes  per  person  per  day  watching  Ome  shijed  television,  Interval:  Q3  2008  (6/30/2008  -­‐  9/28/2008)  and  Q3  2013  (7/1/2013  -­‐  9/29/2013)   35-­‐54  year  olds  have   doubled  their   Omeshijed  viewing  
  • 15. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   15   LIVE  TELEVISION   Source:  NPower,  StaOsOc:  Average  minutes  per  person  per  day  watching  live  television,  Interval:  Q3  2008  (6/30/2008  -­‐  9/28/2008)  and  Q3  2013  (7/1/2013  -­‐  9/29/2013)   12-­‐17  year  old   Americans     are  watching  26   minutes  less   live  TV  per  day  
  • 16. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   16   TOTAL  TELEVISION  SCREEN  TIME   Source:  NPower,  StaOsOc:  Average  minutes  per  person  per  day  using  the  television,  Interval:  Q3  2008  (6/30/2008  -­‐  9/28/2008)  and  Q3  2013  (7/1/2013  -­‐  9/29/2013)   The  total  Ome  spent   using  a  television  has   increased  by  5%  
  • 17. SOME  MORE  RECENT   DEVELOPMENTS:     TWITTER,  SMART  TV’S,   AND  CABLE  MIGRATION  
  • 18. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   18   WE  ALL  KNOW  THAT  PEOPLE  TWEET  ABOUT  TV   Viewers  interacOng  with  television  programming  through  social  media  is  an   important  consumer  phenomenon   Source: Nielsen Social, Unique Audience Data from 9/1/13-11/30/13, Nielsen Qtr 3 2013 Connected Devices Report of  smartphone/tablet  owners     use  devices  as  second-­‐screens     while  watching  TV   Tweets about U.S. TV in 2013, sent by 36 million people Average Daily Unique Audience seeing Tweets about U.S. TV 11    990    84   percent   million   million  
  • 19. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   19   SMART  TV  GROWS  FROM  13%  TO  18%  YOY   Smart  TVs  are  more  likely  to  be  located  in  the  Living  Room   Source: Nielsen Custom Data HHLD, February 2014 February  2014   No   Smart   TV,  82%   Smart  TV   and   enabled,   10%   Smart  TV   and  not   enabled,   9%   18%   Smart  TV  PenetraOon   71%   20%   5%   4%   Living  Room   Bedrooms   Basement   Other   Smart  TV  by  LocaOon   52%  enabled   51%  enabled   53%  enabled   49%  enabled  
  • 20. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   20   DISTRIBUTION  CONTINUES  TO  SHIFT  FROM  WIRED  CABLE   9.3   9.4   9.5   9.5   10.2   55.7   53.6   51.8   49.5   47.1   5.3   6.6   7.9   9.4   10.9   29.6   30.4   30.8   31.5   31.8   Feb  '10   Feb  '11   Feb  '12   Feb  '13   Feb  '14   Broadcast  Only   Wired  Cable  (No  Telco)   Telco   ADS   Percent  of  Total  US   Source: Nielsen NPM, data from the 15th of each month, based on scaled installed counts, Broadband Only Households fall into the ADS bucket Percent of Total US is based on a sum of the four breaks listed and is slightly higher than total Composite households
  • 21. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   21   Homes  with  alternaOve  means  to  receive  content   BROADBAND  ONLY  SKEWS  YOUNGER   Source: Nielsen NPOWER, Based on Scaled Installed Households, Feb ‘14 Total  U.S.   African   American   Asian   American   Hispanic   White   Non-­‐Hispanic   HH 1.6%   1.0%   4.1%   1.2%   1.6%   P2-­‐11 2.5%   0.8%   2.8%   0.6%   3.5%   P12-­‐17 1.6%   1.0%   2.3%   1.6%   1.7%   P18-­‐34 3.3%   2.3%   7.2%   1.2%   4.0%   P35-­‐49 1.6%   1.0%   1.6%   1.1%   1.9%   P50+   0.3%   0.0%   0.4%   0.0%   0.4%   Broadband  Only  PenetraOon%  
  • 22. AN  OPTION  GROWING   IN  POPULARITY:     VIDEO  ON  DEMAND  
  • 23. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   23   THERE  WILL  ALWAYS  BE  LIVE  TELEVISION   Live  events  and  top  programs  conOnue  to  adract  a  live  audience   Source:  NPower,  StaOsOc:  Percentage  of  prime  Ome  program  viewing  that  was  live  versus  playback  within  7  days  (p2+),  Interval:  September  2013  (8/26/2013  –  9/29/2013)   94%   94%   88%   88%   86%   77%   77%   6%   6%   12%   12%   14%   23%   23%   News   Sports  Event   Awards   Ceremonies   Comedy  Variety   SituaOonal   Comedy   General  Drama   General  Variety   Live   Timeshijed  
  • 24. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   24   TV  Viewing  OpOons   Mobile   Devices   TradiOonal   Linear   On   Demand  
  • 25. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   25   A  THIRD  OF  PEOPLE  ACCOUNT  FOR  HALF  THE  VIEWING   (HINT:  AND  THEY’RE  NOT  THE  YOUNGEST  HALF)   13.4%   9.6%   8.4%   5.1%   9.8%   6.7%   13.2%   10.9%   20.1%   20.0%   7.4%   8.9%   27.8%   39.0%   Universe  EsOmate   PUT   P55+   P50-­‐54   P35-­‐49   P25-­‐34   P18-­‐24   P12-­‐17   P2-­‐11   35%  of  pop   account  for   almost    half   of  all  Ome   spent  using   television   Source: NPOWER, Share of UE vs. Share of PUT – Total Day, 9/23/13 – 02/23/14 Universe  Es:mate   (000)   PUT  (000)    
  • 26. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   26   VIDEO  ON  DEMAND  ENABLERS   CONTENT   ACCESSIBILITY   INTERFACE  
  • 27. THE  NEW  ENTRANT:   SUBSCRIPTION  VIDEO  ON   DEMAND  
  • 28. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   28   SUBSCRIPTION  VIDEO  ON  DEMAND  DEFINED   Subscrip:on  Video  On  Demand,  [SVOD],   On  demand  video  content  made  available   to  consumers  via  internet  connected   devices  on  a  subscripOon  basis  (separate   from  MVPD  subscripOon).   Examples  include:  Ne1lix,  Hulu  Plus,  and   Amazon  Prime.  
  • 29. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   29   5%   Hulu   Plus   Amazon   Prime   8%   SUBSCRIPTION  VIDEO  ON  DEMAND  PENETRATION   1/3  of  U.S.  television  households  report  they  have  access  to  an  SVOD  service   Source:  NPower,  StaOsOc:  Percent  of  homes  with  SubscripOon  Video  On  Demand  access,  Interval:  10/13/2013   29%   Neclix  
  • 30. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   30   Broadband   only  TV   homes   88%   Broadcast   only  TV   homes   with  internet   49%   Cable  Plus   homes   with  internet   36%   WHICH  HOMES  HAVE  NETFLIX?   33.5  million  U.S.  homes  have  access  to  NeXlix   Source:  NPower,  StaOsOc:  Percent  of  homes  with  NeXlix  access,  Interval:  10/13/2013   TV  homes   29%  
  • 31. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   31   NETFLIX  COVERAGE  COMPARED  TO  NETWORKS   NeXlix’s  coverage  closely  aligns  with  that  of  U.S.  premium  pay  networks     Source:  NPower,  StaOsOc:  Percent  of  US  Televisions  households  that  receive  content,  Interval:  10/13/2013   0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%   TWC   USA   NICK   CNN   HIST   AMC   CMDY   ESPN   SYFY   VH1   TVL   CNBC   BET   Fox  Sports  1   InvesOgaOon  Discovery   OWN   MTV2   NBC  Sports  Network   FOX  Business  Network   INSP   WGNA   FUSE   FXX   H2   NKTNS   UP   MIL   DesOnaOon  America   TV1   SPRT   G4   FX  Movie  Channel   Encore   Encore  Primary   Fox  Sports  2   HBO  Prime   Starz  Primary   FOXD   Discovery  En  Espanol   NeXlix  29.0%  
  • 32. “RECENTLY  TELECAST”   VIDEO  ON  DEMAND  –   A  NEW  WAY  TO   DELIVER  PREMIUM   CONTENT  
  • 33. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   33   RECENTLY  TELECAST  VIDEO  ON  DEMAND  DEFINED   Recently  Telecast  Video  On  Demand,   [RTVOD],  On  demand  content  provided  by   MVPDs  that  is  taken  directly  from  the  live/ linear  airing  (including  same  commercials)   within  7  days  of  broadcast.  Viewing  credits   back  to  TV  raOngs  as  Omeshijed  viewing.   All  major  U.S.  broadcast  networks  and  most  cable  networks   now  make  their  content  available  via  RT  VOD  via  all  major   MVPDs.  
  • 34. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   34   VIEWERS  TEND  TO  BE  YOUNG  AND  UPSCALE   A  look  at  “Recently  Telecast  On  Demand”  viewers   Source:  NPower,  StaOsOc:  Percent  of  persons  p2+  that  watched  a  recent  program  either  live  or  on  VOD  and  reside  in  homes  with  the  corresponding  characterisOcs,  Interval:  October  2013   HOH  Age   W/CHILDREN   INCOME   8%   25%   18%  18%   38%   29%   HOH  Age  <  35   Presence  of  Chidren   HH  Income  >  $100K   Live   VOD  
  • 35. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   35   THE  PAYOFF:  ON  DEMAND  DELIVERS  THE  MESSAGE   ProporOon  of  the  commercial  raOng  to  program  raOng  for  a  U.S.  broadcast  network     Source:  NPower,  StaOsOc:  The  raOo  of  the  commercial  average  audience  against  the  program  average  audience,  Interval:  September  2013  (08/26/2013  -­‐  09/29/2013)   Live   95.1%   DVR   49.9%   VOD   96.8%  
  • 36. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   36   A  TIPPING  POINT?:  VOD  VS.  DVR   Source:  NPower,  StaOsOc:    Percent  of  total  program  and    total  commercial  playback  minutes  that  were  adributed  to  VOD  (p18-­‐24),  Interval:  October  2013    VOD  %  of   Non-­‐Live  Viewing   Viewing  of  commercial  minutes,  persons  18-­‐24  for  a  popular  new  acOon  show   VOD  %  of     Total  Viewing     22%   55%  
  • 37. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   37   POPULAR  NEW  ACTION  SHOW  COMMERCIAL  MINUTES   Source:  NPower  -­‐  NPM  Panel,  Interval:  Week  of  10/07/2013   P18-­‐24   66%   Homes  Capable  of  Viewing  NeXlix    VOD  %   of  Non-­‐Live   Viewing  
  • 38. KEY  ENABLERS  TO   SATISFYING  THE   VIDEO  APPETITE…  
  • 39. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   39   KEYS  TO  SUCCESS  FOR  VIDEO  ON  DEMAND   CONTENT   ACCESSIBILITY   INTERFACE   SUCCESS  
  • 40. Copyright  ©2012  The  Nielsen  Company.  ConfidenOal  and  proprietary.   40   KEYS  TO  SUCCESS  FOR  VIDEO  ON  DEMAND   INTERFACE