The Era of Untethered TV Begins How portability and connectivity are changing the video landscape
“Viewers” are Evolving… Content Aggregation Connected Viewers Enhanced Subscribers• Free TV + OTT services • Bundled PTV: triple-play + anywhere, anytime• Schedules are key: live + catch-up viewing • Personalisation is key: across linear, PVR & VOD• Broadcasters dominate viewing experience • Operator dominates viewing experience• Opportunities: direct reach & mass-market scale • Opportunities: innovation & need to add value Willing to Pay Social Discoverers Pick ‘n’ Mixers• Free online & OTT services • Free, PPV & subs online & OTT services• Discovery is key: on-demand across services • Flexibility is key: how, where & when they want• Social media dominates viewing experience • Personal preferences dominate experience• Opportunities: deep engagement, content brands • Opportunities: new competition, content brands
Among All Screens, TV is First Choice 4.69 Q: If you were to watch an episode of your favorite show, how would you prefer to watch it? Please rank”. (converted to 5-point scale) 3.38 3.14 2.12 1.67 TV PC VOD iPad MobileSource: Disney Media & Advertising Lab. Five Screen Study
But, Size Really Doesn‟t Matter Programs were equally engaging on any screen 5.91 5.72 5.64 5.73 5.60 Q: We are interested in your involvement with the show you were watching during your session. Please respond to the following statements by rating how much you agree or disagree with the statement. (Engagement score was an average of responses to six statements on a 7-point scale). TV PC VOD iPad MobileSource: Disney Media & Advertising Lab. Five Screen Study
On-Demand Devices Drive Growth ABC Availability Universe by Platform - Millions +6 mil +3 mil +29 mil +20 mil 86 89 49 43 40 27.6 11 7.4 DVR Online VOD iPads (U.S.) (Broadband) Fall 2010 Fall 2011DVR: Nielsen NPower, Universe Estimates , Nov ’11 and YA DVR HH’s VOD: ABC VOD Sub numbers provided by ABC ASM team, Data for Verizon is not included. Based on Sept/Oct ‘11 AverageOnline:Emarketer 2010 US broadband house holds iPad: Apple quarterly earnings report, U.S. iPad Unit Sales as percentage of worldwide. Aggregate thru Dec ‘10 and Dec ’11- estimates
Breaking iOS News….• App-based full episode streams contribute almost 10% of all ABC full episode online views - including ABC.com and Hulu• ABC’s iPhone/iTouch app, launched 3/15, already contributes 10% of all iOS full-episode streams
On-Demand Is In-Demand 11/12 Season Average Episode Deliveries* Modern Family & Last Man Standing are not available on VOD, however are available on iTunes but STD average episode delivery, telecast airdate 9/19/11-11/23/11 with data through 12/21/11. ABC does not receive the data.. DWTS not avail on iTunes . Happy Endings is available on iTunes TV: Nielsen NPower, P2+ reach per telecast (1 minute qualifier), Live +7 DVR Playback however ABC does not receive the data. Online: Combination of episode starts from Rentrak (ABC.com incl. iPad) and video views from Hulu** Suburgatory is based on 3 episodes, recently added to online and VOD in late Nov. VOD: Data via Rentrak iTunes: Data based on domestic transactions, 11/12 Season based on all EST (Apple, Amazon, Microsoft).
“Established” vs “New” 11/12 Season Average Episode Deliveries CASTLEOnline 75% 13% 7% 5%VOD* 65% 15% 11% 8%iTunes 81% 10% 6% 4% ONCE UPON A TIME STD average episode delivery, telecast airdate 9/19/11-11/23/11 with data through 12/21/11. Online: Combination of episode starts from Rentrak (ABC.com incl. iPad) and video views from Hulu VOD: Data via Rentrak iTunes: Data based on domestic transactions, Apple Only.
ABC Set-Top Box VOD Growth Total VOD 43.9M Orders +657% 5.8M Fall 10 Fall 11*Verizon is excluded due to data delaySource: Rentrak Season to Date total orders, 2011/12 (9/19-11/23/11), 2010/11 (9/20/-11/24/10)
“Catching Up” Drives FEP I missed I can I’m a fan It’s episode/wanted watch of the free to catch up anytime showSource; Online study, Frank Magid Associates, 1Q 2011, Total sample – age 18-54
For More Perspective on Tablets…• ABC partnered with Horowitz Associates Market and Multicultural Research on a study of iPad users.• Wave 1 in April 2011, wave 2 in January 2012.• Both waves of research consisted of: – Online Survey of iPad Owners – Ethnographic Videographies – Focus Groups – Online Research Community
Key Takeaways• iPad video viewers are a highly desirable audience• Not inherently cannibalistic to traditional TV, tablets allow consumers to take advantage of new locations and times of day to watch more video.• Convenience, ease of use, and connected portability both inside and outside the home creates expanded viewing “dayparts.”• Expanded access builds engagement with, and loyalty to shows and network brands.
Dual, Young and Upscale Watch TV Total Read/ Watch Demographics Content on ABC App User 18+ News on iPad iPad # of respondents 500 339 128 358 Sex Male 50% 54% 52% 56% Female 50% 46% 48% 44% Children <18 in HH (any) 34% 37% 43% 34% Age 18-29 21% 26% 32% 20% 30-49 47% 47% 44% 50% 50+ 32% 27% 24% 31% Average age 42.9 40.9 38.4 43.0 Household income $50K+ 81% 81% 80% 83% Mean (Any) $108.43K $105.53K $100.11K $111.08KSource: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.
Micro Mobility: In and Out of Home iPad used for video Source: Horowitz Associates, Inc. Market and Multicultural Research
Video Viewing is Core Activity Weekly Data Browse the Internet 93 Check and send email 86 Play games 74 Go & stay on specific sites 73 Read the news 70 81% among 18-29 YO Watch TV content 66 74% among recent owners Use social media sites/apps 65 70% among 3G users Shop for products/services online 56 Use the calendar 53 Read books 49 For work-related purposes 44Source: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.
Users‟ “App of Choice” Always/Frequently among those who use apps to watch TV content on iPad Netflix app 31 ABC app 21 iTunes 20 An app from your TV service 14 provider Hulu+ app 13 HBO GO app 13 NBC app 12Source: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.
Type of Content WatchedWeekly Data Short clips* 44 The news 35 Full episodes of TV shows 33 Movies 27 Sports highlights 26 Full sports events 9 Source: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.
By Genre Always/Frequently National/International news 23 Drama 23 Local news 18 Sitcoms 17Premium channels original series 12 Children programs for your kids 9 Reality shows 7Shows only available on the web 6 Daytime talk shows & soap… 5 Source: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.
Catching Up is Easy To Do!Among those who watch full TV shows on their iPad To catch up on past episodes or seasons of shows 67 Watch shows on your TV set, but on iPad if missed 46 Watch shows not available cable/satellite subscription 31 Browse apps to find something interesting to watch 27Watch additional content (clips, extras, deleted scenes) 24 Watch different things on iPad than TV 23 Watch shows directly on iPad, rarely on TV 23 Discovered TV show on iPad and now watch regularly 21 Watch shows on your TV set and then again on iPad 16 Stopped watching show on TV to watch on iPad 15Source: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.
The New “Co-Viewing” Apr ‟11 Jan „12 Among Respondents Who Watch TV Content Wave (n=115) Wave (n=???) (%) (%) While traveling (other than commuting) 69 63 While in a room in your home without a TV 58 50 While someone else in your home is watching something else on your TV set 43 41 When you have downtime at work or school 41 27Source: Horowitz Associates, Inc. Market and Multicultural Research, 2001 & 2012 iPad user studies
The iPad is Indispensable…Change in Usage among iPad Users who Have Had their iPad for Over 6 Months: 55% Use functions and apps you never used before 5% 38% 50% Use your iPad overall 7% 43% 36% Watch video content on your iPad 11% 52%Take the iPad with you when you leave your house 31% 17% during the day 51% 26% Let other people in your home use your iPad 14% 56% 0% 20% 40% 60% More Less SameSource: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.
…and Advertising is Preferred Preference among those who watch full TV shows on their iPad Paid, No Ads 19% Don’t know 7% 74% Free, Ad-SupportedSource: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.
Verbatim…. “I understand the need “Truthfully, commercials don’t for commercials. bother me. I’m a shopper, so “I have no problem with Someone is paying to commercials just let me know watching TV shows on advertise their what’s going on in the the iPad. I like the products on the market.” portability: being able to channel, so I’ll give watch it virtually commercials a shot, anywhere.” especially if they’re short.” “I like ‘marathoning’ …instead of watching an hour of my favorite “I got the iPad because show and waiting a when you live in a house week in suspense for with five other adults, the next episode.” sometimes you need your own TV.” – San DiegoSource: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.
The Big Questions…• How does DAI evolve in on-demand?• What about multi-screen measurement?• Ad loads/optimization by screen, content, and location?• Addressability?• How is short-form treated relative to long-form?