68 TVBEurope Data Centre
www.tvbeurope.com August 2014
Viewing decline a wake up call for broadcasters
IHS analysis of television viewing data has found that traditional broadcast TV viewing saw a signifi cant fall in the UK and US in 2013. The research fi rm fi nds that consumers are increasingly looking to on-demand services, both via pay-TV and online platforms, to time-shift and place-shift their TV viewing. Fateha Begum, senior analyst at IHS, discusses the need for transformation in broadcaster and pay-TV operator strategies, as cross-platform competition intensifi es and broadcast TV and online spaces increasingly merge across the value chain
THE FINDINGS from the Cross Platform Television Viewing Time Report 2013 published by IHS Technology show that linear broadcast viewing fell well below historic levels in both US and UK markets for the fi rst time, facing the biggest decline to date.
IHS data reveals that although DVR time-shifted viewing accounted for the largest proportion of non-traditional viewing in both markets, on a per DVR home basis it has stagnated. Time-shifted minutes on a per DVR household declined for the fi rst time in
more than half of all pay-TV VoD minutes. However, IHS has found that pay-TV VoD and DVR time-shifted viewing failed to compensate for linear declines, resulting in total time spent viewing television content to decline in the UK, and to only increase by an additional
more time watching on-demand content on connected devices than on pay-TV VoD services in the US.
Subscription-based platforms (sVoD) such as Netfl ix have been driving online growth in both markets, eating into broadcast TV.
“OTT subscription-based VoD services such as Netfl ix have proved that the power to reach a large audience without the help of the traditional TV set-top box is within their grasp, and as such, it is critical for operators and broadcasters to maintain control of key content and off er comparable routes to access”
Average daily viewing time fell by 11 minutes per person in the UK and seven minutes in the US year-on-year.
While linear broadcast TV viewing has declined sharply, non-traditional viewing (DVR recorded and on-demand) on TV sets and other devices has increased substantially, now accounting for nearly one in fi ve minutes of television viewing time.
the UK, alongside 1.4 million new DVR households being added in the year. DVR ownership has had a larger impact on VoD than recordings in the UK, with time spent viewing pay-TV VoD content increasing by 50 per cent year-on-year.
Access to catch-up TV content has contributed to the fall in linear viewing, accounting for
minute in the US. Increases in TV viewership came largely from devices other than the TV set. The report also fi nds that long-form video viewing online increased by six minutes each day between 2011 and 2013 in the US, while viewing on the TV set, both linear and non-linear, fell by seven minutes each day. By year-end 2014, IHS forecasts that individuals will be spending
Total time spent viewing sVoD content online doubled year- on-year in the UK, while the US saw a threefold increase in consumption over two years. IHS suggests that these ongoing declines in broadcast viewing serve as a wake up call to incumbent pay-TV operators and broadcasters, prompting them to bolster their content portfolios and ensure
their online services do their catalogues full justice. The entrance of OTT sVoD services has intensifi ed competition for viewership in the TV world. With sVoD’s ability to offer large catalogues of content with a higher degree of fl exibility and a low monthly cost, it is perhaps no surprise that viewers are beginning to shift their habits. IHS says that it is now more crucial than ever to ensure that customers are able to watch content on their various devices and in more locations. A strong TV Everywhere proposition will help distinguish pay-TV operator platforms from OTT sVoD services, ensuring the operators’ video platforms, both on the TV set and online, remain the subscriber’s go-to video viewing source. OTT sVoD services such as
Netfl ix have proved that the power to reach a large audience without the help of the traditional TV set-top box is within their grasp, and as such it is critical for operators and broadcasters to maintain control of key content and offer comparable routes to access.
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