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Connected TVs Marry New and Old Viewing Habits

More than 50% of the U.S. population is expected to watch streaming content on connected TVs by 2016, and that percentage is expected to increase to 60% by 2019.  In the new eMarketer report, “US Connected TV Usage: Digital Content Gives the ‘First Screen’ New Life,” connected TVs are defined as TV sets connected to the internet through built-in internet capability or through another device, such as Blu-ray players, game consoles or set-top boxes.

In addition, it is important to note that connected TV is a household phenomenon more than a personal one, so that household penetration is an important metric.

According to this eMarketer article, viewing habits for connected TV more closely resemble linear TV than other digital platforms.  eMarketer refers to studies by both Nielsen and Tremor Video that found that the share of average US audience on connected TV devices peaks during primetime.

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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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The Number of TV Households Remains the Same According to Nielsen

 

According to an article in Media Life Magazine, Nielsen reports that the number of TV households will remain the same this season as it was last season. In order to be included in the measurement, households must have “at least one operable TV/monitor with the ability to deliver video via traditional means of antennae, cable set-top-box or satellite receiver and/or with a broadband connection.”  This number stands at 116.4 million households.  

There was a 0.3% increase in the total number of people in those households rising to 296.8 million. Hispanic, Black and Asian households increased.  Nielsen attributes this shift to population growth.

Nielsen also reported that the percentage of homes that receive traditional TV signals from broadcast, cable, satellite or telco companies, or have a broadband internet connection decreased from 96.1% to 95.2%.

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TV is a Major Driver of Social Activity

Yuyu Chen, writing for ClickZ, discusses a study by ShareThis, “Social TV Research Study.”

TV drives 11 percent of online sharing. On average 16 percent of viewers share ideas, opinions and content about the shows they watch. In terms of the types of programs and platforms with greater sharing:

-Reality programs create the most buzz.

-Streaming services, like Netflix, draw 2.1 times more social engagement than broadcast programs.

-Twitter is especially active during live broadcast time, followed by Facebook and Reddit.

This study also reveals that social activity helps drive TV viewership. Users who click on shared TV-related content are 2.4 times more likely to become viewers.

Social data provides vital insights into audience behaviors, and can increase viewership by current audiences and discovery by new viewers.

For more on this topic, check out the Advertising Tab in Morning Coffee.

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How Social Media Engagement Leads to Sports Channel Loyalty

A paper in the journal Computers in Human Behavior looks at  users’ social media behavior during live events and explores whether different levels of engagement lead to channel loyalty. The research used a sample South Korean national panel data during the 2014 Winter Olympic Games.  Read more »

Word-of-Mouth Most Effective in Driving TV Show Views

Offline word-of-mouth tops social media, digital contact, and promotions in increasing the likelihood someone will view a show, according to CRE’s Talking Social TV 2. The findings, highlighted in AdAge, indicate that “offline communications and Facebook had more influence on likelihood to watch something when participants were not watching TV. Read more »

Cinema Ads Are Effective But…

WARC cites a study from Digital Cinema Media, which suggests that viewers exposed to cinema ads were two times as likely to recall a brand as those exposed to the TV ad. Cinema audiences were four times as likely as television audiences to be emotionally engaged. Read more »