Published May 8th, 2017
A new report suggests that Gen Z is a native digital video generation that overwhelmingly equates “watching TV” with an online source. Analysis of the survey from Tremor says they also may be the first to fully embrace digital video advertising by seeing ads as indistinguishable from actual TV shows, and they will lean heavily toward connected TVs.
The study is based on an online survey administered to 1,020 respondents ages 14-50 in March of this year by the Center for Generational Kinetics. At The Center for Generational Kinetics, we call the generation after Millennials “Gen Z or iGen.” This corresponds within their research defining them as cloud natives rather than digital natives; their world is “iEverything,” with a lowercase “i.” Other popular names for this fast-emerging generation are Generation Z and Centennials
The study suggests the term “watching TV” now holds a different meaning for many people with 84 percent of adults aged 14-50 surveyed equating “watching TV” with devices such as an Apple TV or PlayStation. Specifically, 70 percent of Gen Z consider watching TV through an online source, whereas 74 percent of Gen X consider watching TV to be through traditional cable or satellite services.
“The transition of television programming to a digital, streaming-first culture has been happening at a rapid pace,” Karen Ring, senior director, insights and analytics at Tremor Video, observes. “Gen Z, who in two years will make up 20 percent of the workplace, is in a prime position to create an inflexion point in favor of online consumption.”
The data suggests Gen Z respondents are 40 percent more likely to watch multiple episodes of TV in solid, focused chunks, much like reading chapters in a novel. More than half of those surveyed said they prefer to stick to a single show until they finish the series, rather than intermix shows.
Additionally, a majority (54 percent) of Gen Z respondents said that they either don’t mind or enjoy watching ads, compared to smaller portions by Millennials (45 percent) and Gen X (43 percent). While the youngest generation claims to watch less TV than their parents do, they still have a low tolerance for a heavy ad load.
Source: CED Magazine
Consumer habits will continue to evolve with rapid advances in technology. In an increasingly fragmented market across Asia Pacific, innovation driven by consumer needs will be a key tool in the arsenal of pay-TV operators, both big and small. Operators who can offer their customers greater choice and value will flourish in 2017 and beyond.
Over the last few years, technology has transformed the consumption of television. As a result, the pay-TV industry is undergoing a period of change and development with intensifying competition and business model disruption. In Asia Pacific, the industry is projected to grow at a 5.8 per cent average annual rate from 2016 to 2021. However, traditional pay-TV platforms are being threatened by the rise of video on demand (VOD) and over-the-top (OTT) services. 2016 saw the entrance of Netflix in markets across Asia. Other OTT players in the region such as iFlix, Hooq and Viu are also vying for a share of the market.
Although the markets in Asia Pacific are at varying stages of change and evolution, given the differences in economic conditions, demographics, penetration of broadband and pay-TV, and content preferences, there is no doubt that pay-TV providers across the region must develop viable new offerings to retain and grow their customer base.
On every front, at every step in the OTT workflow and ecosystem, evolving technologies and changing consumer habits are driving the industry and impacting the way content is created, delivered, viewed and monetized. Keeping pace in an increasingly fragmented market driven by consumer needs is challenging. Join us at the OTT Days event in Singapore we look into the myriad of technical and business decisions faced when launching an OTT solution.
Moving from analog to digital: In order to provide enhanced services to customers and meet regulatory requirements on analog switch-off, pay-TV providers across the region are expected to continue the move to digital broadcasting. This will be seen across countries such as Singapore, Indonesia, Thailand, Philippines and Vietnam as they work towards switching off analog broadcasting entirely. Customers will benefit from more programming options and higher quality images and sound.
Greater collaboration between pay-TV and OTT providers: The evolving consumer appetite for more on-demand and multiscreen viewing is transforming the TV market. As per the Pay-TV Innovation Forum, a research programme launched by NAGRA in partnership with MTM, Asia Pacific’s OTT video industry is developing rapidly, with around 100 million people subscribing to online video services in 2015. As such, pay-TV providers will have to further embrace all things OTT, including enhancing their core TV service with OTT partner offerings or integrating OTT into their hardware and infrastructure. The increased OTT investments will broaden content options, resulting in happier subscribers, who will have more viewing choices.
TV User Experience (UX): Modern consumers are looking for a seamless, easy-to-use TV experience combining linear and on-demand viewing across all screens. Pay-TV providers will have to rise to the challenge to remain competitive. This includes providing a better integration of the technology ecosystem into a rich UX that delivers the same services on all screens.
More flexibility with personalisation of pay-TV packages and pricing offers: Contract obligations for large channel bundles are losing traction, and one-size-fits-all business models are no longer going to cut it. By leveraging OTT, pay-TV providers are adjusting their business models with new offers, including skinny bundles and a-la-carte options. This also includes more app-based services, stand-alone OTT and TV Everywhere offerings to connect consumers to the content they love.
Diversification into adjacent services: Service providers looking to strengthen their offerings will explore diversification into adjacent offerings, including dynamic data-driven advertising and smart home solutions (such as in-home security and automation). These new services will be driven by large telcos and service providers. In particular, for pay-TV providers that own broadband networks, data is just too big of an opportunity to not be explored. Further investments should be expected from advanced providers looking at leveraging their own network infrastructure to develop new monetization engines.
Taking a broader view on content protection: The growing trend of streaming premium live TV channels and 4K content over the internet is forcing pay-TV operators and content owners to revisit their content security policies. Simply securing content distribution over managed networks is not enough anymore. Controlling piracy with a holistic approach is the new normal. For service providers, this will mean expanding beyond protecting distributed content over any network to incorporating cyber-security media services and forensic watermarking into their portfolio. This will be a necessity to meet content owner requirements and sustain revenues.
Local and regional programming: While the market for global content remains strong, quality local and regional content will become increasingly important for providers and will serve as a key differentiator in an increasingly competitive market. The Pay-TV Innovation Forum research by NAGRA and MTM found that Asia Pacific is characterised by very high levels of cultural and linguistic diversity, with many consumers having a strong preference for content in a local language. As such, providers will be tasked with building a strategy that incorporates both local and global content in order to cater to the diverse customer base in Asia Pacific.
Source: Digital Market
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Jul 10, 2017
May 17, 2017
More than half of all Americans, or 56 percent, have the ability to watch internet video on their TVs — but they’re still watching regular TV most of the time.
Since 2015, there has been a 20 percentage-point increase in the share of adults who can get internet video on their TV, either through the TV itself or by using a device like a Chromecast, according to a new report from ad trade agency Interactive Advertising Bureau.
But a large portion of the time (39 percent), people are using these TVs to watch old-fashioned live TV. As for internet video, they’re streaming Netflix or YouTube or Hulu about 24 percent of the time.
Fortunately for subscription streaming services like Amazon and Netflix that offer TV-on-the-internet packages, that share is going up.
People who do use their TVs to watch Netflix or Hulu are doing so more often. About half (46 percent) of people with streaming-enabled TVs watch streaming video daily, up from 32 percent in 2015.
What are they streaming? Seventy-nine percent watch TV shows (either currently airing, or shows that have aired in the past), whereas a close 70 percent watch subscription originals like Netflix’s “Stranger Things” or Hulu’s “Handmaid’s Tale.”
Nov 15, 2019
Congratulations to KPN, who today launched their Smart TV App on LG TVs in the Netherlands. The app, which was created by 24i, allows KPN subscribers to watch, pause and record live TV programs, catch up on what they have missed and easily search and discover more of their favourite content - all without the need for a set-top-box.
“Earlier this year, we created KPN’s first Smart TV app for Samsung TVs which was a major milestone in offering their customers even more choice and convenience. The launch on LG fits in with KPN’s mission to provide the best TV experience possible and we are proud to be able to help deliver on that promise,” said Martijn van Horssen, joint CEO, 24i.
Built upon the 24i Video Experience Platform, KPN is able to continuously improve and adapt its Smart TV apps and experience based upon customer behaviour, choice and preferences. The app can be used by KPN customers who have an internet and TV subscription and have a recent model of Smart TV from Samsung (from 2017) or from LG (from 2017).
You can read the news release (Dutch) from KPN here