In our first blog post in the series, we discussed the first of four trends ? accurate attribution ? that TVSquared?s CTO, Kevin O?Reilly, identified as having the greatest impact for TV advertising this year. Today, we?ll explore another major trend: the unicast distribution of prime content.
Did you know that ?Game of Thrones? is the most pirated TV series in history? It hit seven million illegal downloads in the first quarter of 2015. Viewers, in part, said that the lack of accessibly to the show drove their behavior since it was not available via iTunes, Amazon or OTT.
Services like Netflix, Hulu and Amazon Prime are the new norm when it comes to TV viewing, driven by the ?never cutters? or ?cord cutters? (largely the millennial generation) who prefer to consume premium content on their own terms ? whenever/wherever they want and at a price they deem fair.
National broadcasters and MVPDs also offer VOD services, providing time-shifted viewing and access from any device. Some are even offering content via OTT subscriptions, such as Amazon?s options for Starz and Showtime.
According to Kevin, the mainstreaming of OTT that occurred in 2015 will continue in 2016, but the landscape will become even more fractured.
NBC routinely reports overall time-delayed viewing at a 50 percent increase over live viewing (and at 80 percent and higher among 18-49 audiences). Consider the following breakout of a popular network program: live and same-day (45%); C7 (1-7 days after airing; 32%); 8-35 days after airing (2%); VOD TV (7%); connected TV (6%); digital device (8%).
Now go make a TV media plan!
On top of that, there will be an avalanche of cord cutting. One?study found that the percentage of people saying they were ?extremely likely? to cut the cord this year grew to 3.7 percent from 1.9 percent in 2011. This is a large percentage change and, according to Kevin, one that is likely to lead to net subscriber losses for the first time.
So, TV viewership will continue to fragment and live viewing will continue to represent a smaller percentage of consumption ? even though more people still consume TV viewing live than any other breakout. Kevin believes that marketers should look at this as a great opportunity. If they can measure what audiences and content are driving brand engagement and sales in live TV, they can respond by locking up that inventory across VOD and connected devices with the confidence that it?s results-driven buying.
In our final blog post in this series, we?ll explore targeted TV buying and convergence.