Published June 23rd, 2017
Smart TVs are the preferred way for customers to access content provided by a streaming service as revealed by FutureSource Consulting. According to a Futuresource senior market analyst, Jack Wetherill, smart TV was the leader in six markets that it had studied.
Presenting data at the Futuresource New Content Horizons event in London, Futuresource senior market analyst, Jack Wetherill, said that the smart TV led in each of the six markets it had analysed.
Spain led with 49% of Netflix users opting to watch via smart TV, followed by Italy at 42%, the UK at 35%, Germany at 32%, the US at 30% and France at 28%.
Streaming media devices like Google Chromecast were the second-highest favoured option for accessing Netflix in four of the six countries, with PC or laptop viewing proving second most popular in Spain and Italy.
Viewing Netflix via a set-top box did not rank among the top five viewing methods in any of the six markets – apart from France, where it came in fifth place with 8% of viewers saying they liked to view the SVOD service this way.
Despite this, set-top box ownership in Western Europe climbed by 39% between 2012 and 2016 to have a presence in 111 million households, according to Futuresource.
Smart TV ownership climbed by a larger 163% over the four-year period but only appeared in 79 million homes in the region in 2016, while digital media adaptor ownership grew by a massive 458% to appear in 22 million Western European homes.
Wetherill said Futuresource expects 20 million set-top boxes – excluding free-to-air boxes – to be shipped in Western Europe this year, down just 1% year-on-year.
This compares to 19 million smart TVs, up 6% year-on-year, and 13 million digital media adapters, up 16% year-on-year.
“There’s a range of different devices there for consumers to be enjoying OTT content – it’s a complex landscape out there,” said Wetherill.
“We know that the move from broadcast to IP is an irreversible trend, but for some of the reasons I’ve outlined, it will take time to move from a) to b) – in fact many years. The set-top box will remain part of that landscape for some years to come.
“As somebody once described it, and it will no doubt be described again, the set-top box is kind of like the cockroach in a nuclear winter. It will be one of the things that survives this whirlwind of development in content and hardware.
Source: Digital TV Europe
Aug 27, 2018
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Ad-funded VOD (AVOD) is outpacing other paid media with spend set to double to $47 billion (€41.2bn) by 2023 worldwide, according to WARC’s latest Global Ad Trends report.
More broadly, both consumer and advertiser investment in OTT platforms is rising: globally, spend is projected to reach $129.3 billion in the next five years.
As a medium, AVOD is still young, though notable examples of Hulu, HBO Now, and Sony’s Crackle, as well as reported interest from Amazon, hint at its future power.
Compared to other paid media in WARC’s International Ad Forecast, AVoD is growing faster. The expected $23.8 billion in brand investment that AVoD will receive this year equates to a 5.2 per cent share of global adspend, but spend has increased year-on-year. As a percentage of total OTT spend (estimated by Digital TV Research at $68.7 billion this year – up 29 per cent from 2017), AVoD will account for 34.7 per cent.
“Consumers’ voracious appetite for video content anywhere, on any device, has been propelled by SVoD services such as Netflix. But it is AVoD platforms which present the opportunity for advertisers to marry rich consumer data with pinpoint targeting during engaging content,” says James McDonald, Data Editor, WARC. “This is why AT&T and Amazon are exploring moves into the AVOD sector next year, with the ultimate aim of taking the lion’s share of a market expected to be worth $47 billion by 2023.”
At the strategic level, consumers’ appetite for cross-device streaming is creating an impact. A full 81 per cent of consumers now say it is important that they can watch TV programmes whenever they want.
The wide array of publisher specs, insufficient lead time required to track down all creative assets and a lack of standardised measurement when buying cross-channel audience-based inventory are cited as major concerns by practitioners.
As a result, OTT is not currently front of mind when building media strategies; just a quarter (26 per cent) of US CMOs regard OTT as either very or extremely important to their plans. This despite evidence showing integrated campaigns are 31 per cent more effective at brand building.
Source: Report: AVOD spend to double in next 5 years