the impact of multi-screen entertainment dixon nscreenmedia.pdfdata from nielsen’s march 2013...

The Impact of Multi-Screen Entertainment

Colin Dixon, Founder & Chief Analyst, nScreenMedia

colin@nscreenmedia.com | twitter: @nscreenmedia

About nScreenMedia

nScreenMedia is a resource to the Digital Media Industry as it transitions to

the new infrastructure for multi-screen delivery. Through a mix of informed

opinion, news, information and research nScreenMedia helps you make

sense of multi-screen media.

www.nscreenmedia.com

Disclaimer

We at nScreenMedia use rigorous methodologies in constructing and validating our research and

opinions. Our collective knowledge includes information gathered from public and private sources,

industry interviews and other research sources. Since the markets nScreenMedia covers are subject

to rapid change, nScreenMedia is not responsible for loss caused by any errors, omissions, or

misinterpretation of the contents. All information is provided “as is” with no warranty implied or

expressed. nScreenMedia disclaims any liability to any individual or organization that has made

business or investment decisions based on reliance on the contents of our research.

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What happens to television when it goes multi-screen?

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Does your home look more like this?

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Disney’s answer

The impact of multi-screen entertainment

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Tablets and Smartphones

European penetration of tablets is

climbing fast

• UK will move from 15.5% in 2012 to

21.2% by the end of this year

• 17.7% UK smartphone owners also

own a tablet

• 17% Spain, 15% Italy and France

In the U.S. #1 device on holiday

wish lists 2012 was tablet

• 40% of online U.S. adults now own a

tablet (CEA)

• 26% of U.S. consumers own a pc,

tablet and smartphone (Deloitte)

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• U.S. 32% of tablet owners watch

video daily (Rovi)

• 80% of activity media related (TDG)

0%

5%

10%

15%

20%

25%

UK Spain Germany France Italy

European Tablet Penetration: 2012-2013

2012 2013

Source: ABI Research 2013

Mobility is driving growth

According to Ooyala

• Tablet & smartphone video

viewing doubled share in 2012

• 4% to 8%

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• PC is loosing share fast (BBC)

• Fell from 59% to 47% in 2012

• Smart TVs “don’t even register”!

Second Screen Syndication

What

• Content creators create “bonus” content meant to be shown on a tablet or smartphone while watching a live TV show

• Content shows up on device synchronized with events in the live show

Why

• We aren’t paying attention to ads anymore

• We aren’t watching live anymore

How

• Automatic Content Recognition (ACR)

• Watchwith: syndicates the content

Who

• Fox, USA Network, ABC

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Second Screen Content

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Second Screen Syndication

What

• Content creators create “bonus” content meant to be shown on a tablet or smartphone while watching a live TV show

• Content shows up on device synchronized with events in the live show

Why

• We aren’t paying attention to ads anymore

• We aren’t watching live anymore

How

• Automatic Content Recognition (ACR)

• Watchwith: syndicates the content

Who

• Fox, USA Network, ABC

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The impact of multi-screen entertainment

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The emergence of “Zero-TV” consumers

What is a “Zero-TV” home?

• A household that doesn’t subscribe to pay-TV and doesn’t watch broadcast TV

• Grew from 2M in 2007 to 5M in 2013

• 75% have at least one TV

• 67% watch TV on other, non-TV, devices

• 48% subscribe to OTT TV service

• Why don’t they have traditional TV?• Cost: 36%

• Lack of interest: 31%

• 18% “interested” in pay-TV

• Who are they?• Almost half are under 25

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Data from Nielsen’s March 2013 Cross Platform Report

The impact of multi-screen entertainment

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Start Delays

If a live video stream takes 3 seconds or more to start up to 90% of the

audience will give up. Similar for short form.

Audience more tolerant with long form videos. 3 sec delay costs 30% of viewers

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Source: Conviva, 2013

Frictionless

Online viewers very intolerant of any impediment to watching what they want

• Delays of 3 seconds or more and they are gone

• GfK study says consumer prefer free video services over authenticated

• 64% pay-TV subs aware of free broadcster services, 37% used them

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• 52% aware of pay-TV TV-E• 30% used them

• 70% said deterred by authentication

Chet Kanojia, Aereo CEO, says for online “easy-in-easy-out” is very important

• Online services must be frictionless

• To many other things to do

The impact of multi-screen entertainment

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New era for TV – Content Strategy

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The impact of multi-screen entertainment

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Entertainment becomes more collaborative

Amazon announces fans can add to pop culture through fiction

• Kindle Worlds – aspiring writers can pen own takes on popular books,

films, TV, games and comics

• Submit efforts to Amazon, may publish and share profit

• Amazon licensed 3 teen TV series: Gossip Girl, Pretty Little Liars, The

Vampire Diaries

• But this is nothing new

• For gamers, part of the experience

• This is not a small niche audience

• Can attract millions

• Your audience is already doing it!

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One Conclusion

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The Real Conclusion: Multi-Screen is changing us

We want it all in the palm of our hand

• Makes viewing a more personal experience

• Can be leveraged to enliven the “old” TV

For many linear channels are just not interesting

• Zero TV

With so many other things to do, we just

move away if something is slow

• Frictionless

To keep our attention just eliminate the gaps!

• House of Cards et al.

We want to be part of the creative process

• Kindle Worlds

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About nScreenMedia

nScreenMedia is a resource to the Digital Media Industry as it transitions to

the new infrastructure for multi-screen delivery. Through a mix of informed

opinion, news, information and research nScreenMedia helps you make

sense of multi-screen media.

www.nscreenmedia.com

Disclaimer

nScreenMedia uses rigorous methodologies in constructing and validating our research and opinions.

Our collective knowledge includes information gathered from public and private sources, industry

interviews and other research sources. Since the markets nScreenMedia covers are subject to rapid

change, nScreenMedia is not responsible for loss caused by any errors, omissions, or

misinterpretation of the contents. All information is provided “as is” with no warranty implied or

expressed. nScreenMedia disclaims any liability to any individual or organization that has made

business or investment decisions based on reliance on the contents of our research.

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