TV/Streaming Viewing Soars

For most industries, the lockdowns and social-distancing measures imposed by governments around the world to contain the covid-19 pandemic will be crippling. For video-streaming services, however, they could be a godsend. Citizens face what could be months of isolation at home, ideal conditions for binge-watching.
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22% of Cable Customers Also Subscribe to OTT Services

According to a new study by Millward Brown Digital, 22% of cable subscribers also subscribe to an over-the-top service.  Although some cable subscribers do cut the cord when they become OTT subscribers, other cable customers want both types of content, and therefore, maintain both subscriptions.

Jon Lafayette, writing for Broadcasting & Cable, presents additional findings from this Millward Brown Digital report:

-Netflix is the largest OTT provider.

-HBO, which introduced HBO Now earlier this year, is currently experiencing the fastest growth.

-Amazon Instant Video is also growing faster than Netflix.

-Hulu has been growing more slowly over the last few quarters, but has recently introduced an ad-free tier.

-Millennials represent the majority of HBO and Netflix subscribers.

-35% of cable login subscribers are millennials.

-25% of cable subscribers are baby boomers.

According to Millward Brown Digital, content plays an important role in the consumer subscription decision.  According to this study, “It’s important to note these insights do not declare the death of cable TV.  Rather, they highlight the importance of content to a cable provider’s overall strategy and the importance of targeting that content to different generations.”

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Connected TV Spend to Rise, While Priority Remains Low

The Association of National Advertisers (ANA), in partnership with BrightLine, an ad platform, reports that more than 70% of 215 client-side senior marketers believe that connected TV represents an opportunity for the advertising industry.  Despite this belief, none of these marketers spend more than 10% of their budget on connected TV.

YuYu Chen, summarizing this report for ClickZ, reports that 48% of respondents whose companies are currently engaged in connected TV or OTT devices plan to allocate more of their TV ad budget to it next year.  In addition, another 13% of respondents not currently engaged in connected TV or OTT, plan to allocate some of their budget to it next year.


Top benefits of connected TV/OTT include:

  • Audience targeting
  • High engagement
  • Amplification of video content

According to this report, barriers to greater spending on connected TV or OTT by marketers include:

  • Lack of reliable measurement metrics
  • Small-scale audiences
  • Cost/pricing
  • Creative concerns
  • Budgets
  • Not familiar enough (especially reported by respondents not currently engaged with connected TV/OTT)

Rob Aksman, founder and CEO of BrightLine, is optimistic about the future of connected TV.  “There’s nothing stopping connected TV from going mainstream today: there’s scale, there’s targeting and there’s data.  With connected TV, advertisers can not only reach TV viewers, but also offer a better brand experience with clickable and measurable videos.”

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