Archive for December, 2015

Update on HTML5 Premium Video Playback with Adobe Encrypted Media Extensions Support in Firefox

The Adobe Primetime Content Decryption Module (CDM) went live today in Firefox 43 for 32-bit and 64-bit Windows. This extension provides support for the Encrypted Media and Media Source extensions available in HTML5 – allowing premium video to be played back without requiring the Flash plugin.

Enabling HTML5 premium video playback is the product of a close collaboration with Mozilla and Netflix over the last 18 months. We will continue to work with Mozilla to provide equivalent support for additional platforms (e.g. Mac and Linux) over the coming months. Our first major customer leveraging this capability is Netflix, and we expect more in the coming months as video providers continue to deliver immersive viewing experiences via HTML5. We are excited to bring the Adobe Primetime CDM to Firefox, as well as other platforms in the future.

All-Time High TV Everywhere Consumption Demonstrates User Satisfaction; Opportunity Remains to Broaden Footprint

Each quarter, the Digital Video Benchmark report by Adobe Digital Index highlights the changes taking place in how consumers view video. The biggest highlight of the Q3 2015 report is the rapid growth of TV Everywhere viewing on connected TV devices like Apple TV and Roku. Our data shows that television is moving back into the living room with more content becoming available via connected TV devices. The data also shows that once viewers find TV Everywhere content, they consume an ever-increasing amount of it. However, to maximize the potential of TV Everywhere and ensure new user adoption accelerates, the industry has to do more around awareness, discoverability and ease of use. Here are some key findings from the report:

TV is returning to the living room

23% of all TV Everywhere authentications now take place on a connected TV device, representing 130% YoY growth. Of this 23%, 13% is from Apple TV and 7% is from Roku, which leaves a mere 3% of TV Everywhere authentications to all other TV connected devices such as gaming consoles, the Amazon Fire TV and Smart TVs. Movie viewership in particular is driving this trend. Movie viewers are twice as likely to watch programming on a TV connected device than any other device.

 

1 - ShareOfTVEverywhereAuthenticationsByAccessTypeYOY

TV Everywhere shows stickiness with users

Consumption from existing TV Everywhere users jumped by 102% YoY while new user adoption inched up, growing by just 8% over the last 12 months. So, the viewers who do consume TV Everywhere content have nearly doubled their consumption.

2 - TVEverywhereAuthenticatedVideoViewingGrowth

3 - TVEverywhereShareOfActiveMonthlyPayTVViewers

Youth programming and movies boost stickiness

Much of the growth in TV Everywhere content consumption is coming from teens and toons programming for youth and movies. Teens and toons is the most frequently viewed content genre and it grew 46% QoQ. It’s viewed the most frequently on Android devices. Movies is the fastest growing content genre with 127% growth QoQ. Movies are heavily viewed from TV connected devices where the bigger screen improves the viewing experience.

4 - IndexedAverageTVEverywhereViewingFrequencyByAccessTypeAndGenreQ3MonthlyAverageAuthenticatedVideosVisitor (1)

Smartphones replaced tablets as the preferred mobile viewing device 

Viewing non-authenticated online video on smartphones increased by 33% YoY while tablet viewing declined 7%, which can be attributed to slowing tablet sales and smartphones with larger screen sizes. Although nearly half of all web browsing occurs on a smartphone or tablet, only 31% percent of videos were viewed on a mobile device.

5 - GlobalDeviceTypeShareOfOnlineVideoStarts

About the Q3 2015 Digital Video Benchmark report

The analysis in the benchmark report is based on aggregated and anonymous data from over 1,500 media and entertainment sites between Q3 2014 and Q3 2015. It measured 134 billion online video views and 3.6 billion TV Everywhere authentications across pay-TV service providers covering 99 percent of pay-TV households in the U.S and Canada. Adobe also analyzes TV Everywhere content from 159 TV channels and over 300 TV Everywhere sites and apps – more than any other technology company in the industry.

For more insights, download the full Q3 2015 Digital Video Benchmark report.

Quickening Pace of Direct-to-Consumer (D2C) Launches

The industry is abuzz about direct-to-consumer (D2C) streaming video services, which give consumers programming choices that fall outside of traditional pay-TV packages.

Early entrants to the D2C streaming video market, such as MLB.tv and Netflix, have proven it’s possible to attract a large audience with a D2C offering. For example, Netflix has over 66 million paid members around the world and MLB.tv has 3.5 million paid subscribers. Now, the question is whether or not others will follow in their footsteps and also go direct to consumer.

Two views on the future of D2C

D2C is heading in one of two directions. Consumers could favor centralized access to streaming video content. This consumer preference could make it difficult for niche streaming video providers to secure the subscribers they need to sustain their offerings. It would allow players like Netflix, Hulu, Amazon Prime Instant Video and MVPD apps to capture the bulk of time and budgets that consumers are willing to spend on streaming video. 

On the other hand, consumers could embrace the ability to curate their own collection of content. It’s cumbersome to manage today, but search and discovery innovations could easily improve the curated experience in the near future. With this, any streaming video provider with a loyal audience could thrive going D2C.

2015 was a big year for D2C launches

Whatever the future of D2C holds, one thing is for certain. There’s a quickening pace of new D2C launches. Together, 2014 and 2015 had eighteen major launches. This is more than all prior years combined. And even more D2C streaming video services are set to launch in 2016. AMC Networks is in beta with a horror-themed offering called Shudder and Bell Media’s CraveTV plans to go direct to consumer on January 1st.

Sources: Launch dates announced in industry press. Data compiled November 2015.

Programmers future-proofing their business

The main impetus for going D2C is to find another path to viewers who are watching less traditional TV. A MarketingCharts.com analysis of Nielsen data reports, “Between 2011 and Q2 2015, TV viewing by 18–24-year-olds dropped by almost 8 hours per week, or by more than an hour a day. Tellingly, the largest decline (in absolute time) occurred within the past year, between Q2 2014 and Q2 2015.”

Source: MarketingCharts.com analysis of Nielsen data

Over-the-top (OTT) devices make going D2C easy

Another impetus for going D2C is the ease and range of options for getting premium streaming video content onto TVs. D2C streaming video services can provide a viewing experience that’s as good or better than traditional TV by going over-the-top (OTT) to TV screens via set-top like Apple TV and Roku, streaming media sticks like Chromecast and Amazon Fire Stick, and gaming platforms like PlayStation 4 and Xbox One. 

Who else will go D2C?

Existing entrants in the D2C space have proved that OTT can be leveraged at the same time as traditional TV distribution deals and that it can grow the pie of viewers beyond what traditional TV can reach. However, subscriber acquisition can be difficult and nobody wants to launch a service that can’t gain traction. Expect ad technology and marketing automation partners to ease this difficulty for new and existing D2C players.