Adobe Primetime Continues to Drive TV Everywhere Momentum

Today we are announc­ing some great momen­tum for Adobe Prime­time PayTV Pass (for­merly Adobe Pass), as well as for the over­all indus­try move­ment of TV Every­where. Turner Broad­cast­ing Sys­tem, Inc. (TBS, Inc.) is the lat­est Adobe Prime­time cus­tomer deliv­er­ing TV across screens as a leader in dri­ving TV Every­where adop­tion. To date, TV Every­where has expe­ri­enced bursts of suc­cess with large scale events like the Olympics and March Mad­ness, but there has not been a crit­i­cal mass of every­day use. That is now start­ing to change with more pre­mium con­tent com­ing online (both live lin­ear and VOD), an increas­ing shift in view­er­ship from tra­di­tional TV to online, and greater oppor­tu­ni­ties for con­tent own­ers to mon­e­tize those online views thanks to inno­v­a­tive tech­nolo­gies such as Adobe Prime­time.

In com­par­ing the first half of 2013 with the same period last year, Adobe Dig­i­tal Index has seen a 400% increase in authen­ti­cated streams, and the total num­ber of Adobe Prime­time PayTV Pass-enabled web­sites and apps has dou­bled across devices from 50 to more than 100. Online video con­sump­tion habits are def­i­nitely chang­ing given the ever expand­ing breadth of devices and plat­forms – with tablets alone account­ing for a 150% increase in video starts from Q2 2012 to Q2 2013. Web, iOS, and Android still rep­re­sent the bulk of con­sump­tion, but other con­nected devices such as Xbox, Roku, Apple TV, and Smart TVs are rapidly gain­ing trac­tion. Our data shows that 16% of U.S. house­holds are watch­ing pay-TV online as of Sep­tem­ber 2013 – rep­re­sent­ing more than100% growth since Decem­ber 2012. We deliv­ered 29.3 bil­lion video streams to Adobe cus­tomers in Q3 2013 – up 124% year-over-year.

The con­ver­sa­tions we are now hav­ing with our cus­tomers also sug­gest that the tip­ping point for mass TV Every­where adop­tion is upon us. Whereas phase one of TV Every­where was about “check­ing the box” to appease the pay TV oper­a­tors, our pro­gram­mer cus­tomers and pay TV part­ners alike are now focus­ing on growth with an empha­sis on con­tent dis­cov­er­abil­ity, device expan­sion, and user expe­ri­ence. And most telling in my opin­ion, we are now get­ting con­sid­er­able inter­est in our upcom­ing fraud lim­it­ing ser­vices to ensure peo­ple aren’t shar­ing cre­den­tials or oth­er­wise try­ing to game the sys­tem. Con­sid­er­ing the early crit­ics ques­tioned whether the traf­fic would come at all, it’s a nice twist that too much con­sump­tion has now become a con­cern!

AdobeBroadcastWe’re thrilled to see increased momen­tum around TV Every­where on the rise with Adobe Prime­time help­ing pave the way for suc­cess. Within two years, we expect TV Every­where will advance with:

  • Every major TV chan­nel hav­ing a TV Every­where pres­ence via web­sites or apps
  • The reported 40% of Inter­net-con­nect TVs in U.S. house­holds (LGR Research) will actu­ally be in use
  • Con­tent authen­ti­ca­tion being fully auto­mated – remov­ing con­sumers from the process

We also found that mobile video view­ing is up more than 2x year-over-year (YoY). Con­sumers of video con­tent via mobile devices are on the rise (see graphs below). An Adobe Dig­i­tal Index review of 1 bil­lion video starts to 50 branded sites shows that mobile video view­ing is up 134% YoY with tablets grow­ing the fastest up 150% YoY.

ADI-Share-of-Video-StartsThe grow­ing mobile audi­ence pro­vides incre­men­tal engage­ment and rev­enue oppor­tu­ni­ties for adver­tis­ing. Tablet view­ers, in par­tic­u­lar, are early adopters who typ­i­cally spend more money, book more trips, and con­sume more media con­tent. Pub­lish­ers can cap­i­tal­ize on this tar­get audi­ence with high CPMs (Cost Per thou­sand Impres­sions) and incre­men­tal impres­sions. Pub­lish­ers may also con­sider cre­at­ing more mobile-speci­fic con­tent to pro­mote the use of mobile devices and fur­ther train con­sumers to use com­pan­ion devices while watch­ing a show live or online.

We’ve said that 2013 would be the year that TV Every­where takes off and our fore­cast is hold­ing true. Stay tuned for more updates and momen­tum com­ing as we head into 2014!

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