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1 Copyright © 2016 The Nielsen Company VIDEO ON DEMAND HOW WORLDWIDE VIEWING HABITS ARE CHANGING IN THE EVOLVING MEDIA LANDSCAPE MARCH 2016

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Page 1: Video on demand - Nielsen€¦ · • Video on demand is becoming a part of daily viewing habits for many. Among those who watch any type of VOD programming, 43% say they watch at

1Copyright © 2016 The Nielsen Company

Video on demandHow worldwide viewing Habits are cHanging in tHe evolving media landscape

MARCH 2016

Page 2: Video on demand - Nielsen€¦ · • Video on demand is becoming a part of daily viewing habits for many. Among those who watch any type of VOD programming, 43% say they watch at

2 Video on demand

• TraditionaldefinitionsofwhatitmeanstowatchTVarechanging,and

consumersareincontrol.

• Nearlytwo-thirdsofglobalrespondentssaytheywatchsomeform

ofvideo-on-demandprogramming(includeslong-andshort-form

content).

• Mostviewersappeartobesupplementing,ratherthanreplacing,paid

traditionalTVservices(receivedthroughacableorasatellite).Nearly

three-quartersofglobalonlinerespondentssaytheypaysuchaservice

towatchprogramming;justoverone-quartersaytheypayanonline-

serviceprovider(suchasHulu,NetflixorAmazon).

• Nearlytwo-thirdsoftraditionalTV-packagesubscribersinthesurvey

plantomaintaintheirsubscriptions,butnearlyone-thirdsaytheyplan

tocanceltheirserviceinfavorofanonline-onlyprovider.(Althougha

recentNielsenstudyfoundthatveryfewofthosewhosaythisactually

docanceltheirservice.)

• Videoondemandisbecomingapartofdailyviewinghabitsformany.

AmongthosewhowatchanytypeofVODprogramming,43%saythey

watchatleastonceaday.

• Morethanhalfofglobalrespondents(51%)somewhatorstrongly

agreethatadsdisplayedbefore,afterorduringvideo-on-demand

programminggivethemgoodideasfornewproductstotry,and59%

saytheydon’tmindgettingadvertisingiftheycanviewfreecontent.

around the world

2

the topsy-turVy Video-Viewing landscape

Page 3: Video on demand - Nielsen€¦ · • Video on demand is becoming a part of daily viewing habits for many. Among those who watch any type of VOD programming, 43% say they watch at

3Copyright © 2016 The Nielsen Company 3

Notlongago,“watchingTV”meantsittinginfrontofthescreeninyour

livingroom,waitingforafavoriteprogramtocomeonatasettime.

Today,thegrowthofvideo-on-demand(VOD)programmingoptions

whereviewerscandownloadorstreamcontentfromeitheratraditional

TVpackageoranonlinesourceiscreatingextensiveopportunities

forconsumerswhohavegreatercontrolthaneverbeforeoverwhat

theywatch,whentheywatchandhowtheywatch.Andthenumberof

self-reportedVODviewersissignificant.Nearlytwo-thirdsofglobal

respondents(65%)inaNielsenonlinesurveyin61countriessaythey

watchsomeformofVODprogramming,whichincludeslong-andshort-

formcontent.

Viewinghabitsarenottheonlythingschanging.Traditionaladvertising

modelsarechangingasinnovativetechnologiessuchasprogrammatic

andaddressableadsallowadvertiserstoreachconsumersinnewand

creativeways.ManytraditionalTVproviders,includingnetworksand

multichannelvideo-programmingdistributors(MVPDs),arereevaluating

theirbusinessmodelsinordertoadaptbettertoconsumers’evolving

habits.Whileit’sclearthatbusiness-as-usualmethodswon’tworkin

alandscapethatischangingsorapidly,thefieldiswideopen,asall

playersarelookingtoexpandshare.

“Today’smedialandscapeiscomplex,butthegrowthofvideo-on-

demandprogrammingservicescancreateopportunitiesforallplayersin

themediaecosystem,”saidMeganClarken,president,NielsenProduct

Leadership.“Foraudiences,advertisersandcontentprovidersalike,

advantagewillbegainedwithanin-depthandkeenunderstandingof

notjusthowconsumerviewingdynamicsarechanging,butwhytheyare

changing.Twothingswerenevertruerthantheyaretoday:Contentwill

alwaysbeking,andconsumerswillcontinuetodemandgreatercontrol

andcustomizationoftheviewingexperience.Providerswhoexceed

standardsonbothfrontswillhaveanadvantage.”

TheNielsenGlobalVideo-on-DemandSurveypolledover30,000online

respondentsin61countriestogaugeworldwidesentimentaboutVOD

viewingandadvertisingmethods.Weexaminewho’swatchingon-

demandcontent,howthey’rewatchingandwhy.Wealsoexplorehow

online-serviceprovidersareaffectingthetraditionalTVlandscapeand

offerinsightsabouthowtoadaptastheecosystemcontinuestoevolve.

ABOUT THE GLOBAL SURVEY METHODOLOGY

Thefindingsinthissurveyarebased

onrespondentswithonlineaccess

in61countries(unlessotherwise

noted).Whileanonlinesurvey

methodologyallowsfortremendous

scaleandglobalreach,itprovides

aperspectiveonlyonthehabitsof

existingInternetusers,nottotal

populations—somethingparticularly

relevantwhenreportinganactivity

suchaswatchingvideo-on-demand.

Indevelopingmarketswhereonline

penetrationislower,audiencesmay

beyoungerandmoreaffluentthan

thegeneralpopulationofthatcountry.

Inaddition,surveyresponsesare

basedonclaimedbehaviorrather

thanactualmetereddata.Cultural

differencesinreportingsentimentare

likelyfactorsintheoutlookacross

countries.Thereportedresultsdonot

attempttocontrolorcorrectforthese

differences;therefore,cautionshould

beexercisedwhencomparingacross

countriesandregions,particularly

acrossregionalboundaries.

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4 Video on demand

are Viewers replacing or supplementing selections?VODispopulararoundtheworld,butareviewersreplacingonevideo

servicewithanother,oraretheyaddingnewservicestotheirviewing

repertoire?

Justoverone-quarterofglobalonlinerespondents(26%)saythey

paytowatchbroadcastorVODprogrammingviasubscriptiontoan

online-serviceprovidersuchasHulu,NetflixorAmazon,compared

with72%whosaytheypaytowatchviaatraditionalTVconnection.

Consideringthis,itappearsthatmoresupplementingthansheddingis

takingplacearoundtheworld.Butresponsesvarywidelyfromregion

toregion.

NorthAmericaandAsia-Pacificleadtheway,with35%ofrespondents

inNorthAmericaand32%inAsia-Pacificindicatingtheypayanonline

serviceproviderforprogrammingcontent.Self-reportedusagein

Europefallswellbelowtheglobalaverage,witharesponserateof

11%.Justoverone-fifthofonlinerespondentsinLatinAmericaand

theMiddleEast/Africasaytheysubscribetoanonline-serviceprovider

(21%each).

Page 5: Video on demand - Nielsen€¦ · • Video on demand is becoming a part of daily viewing habits for many. Among those who watch any type of VOD programming, 43% say they watch at

5Copyright © 2016 The Nielsen Company

WATcHinG ViDEO pROGRAMMinG ViA A pAiD OnLinE-SERVicE pROViDERiS MOST pOpULAR in nORTH AMERicA AnD ASiA-pAcific

Self-RepoRted pAid SeRviCeS uSed to wAtCH bRoAdCASt And/oR vod pRogRAMMing*

latin america

asia-pacific

europe

middle east/ africa

*Respondentscouldselectmultipleserviceproviders.Doesnotincluderespondentswhodonotsubscribetoanypaidservice.

Source:NielsenGlobalVideo-on-DemandSurvey,Q32015

north america

44%

29%

32%

4%

31%

29%

21%

8%

54%

30%

35%

2%

44%

21%

11%

6%

56%

20%

21%

3%

ONLINE SERVICE ONLINE SERVICE

ONLINE SERVICE ONLINE SERVICE

ONLINE SERVICE

CabLE CabLE

CabLE CabLE

CabLE

SatELLItE SatELLItE

SatELLItE SatELLItE

SatELLItE

OthER OthER

OthER OthER

OthER

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6 Video on demand

full stream ahead?SowhatdoestherisingpopularityofVODservicesmeanforfuture

viewingpatterns?

LookingspecificallyattheU.S.market,whereVODcontinuestogain

strongmomentum,Nielsenmeteredpaneldatashowsthathomeswith

subscriptionvideo-on-demand(SVOD)serviceswatchlessTV.Amajor

reasonforthisisthatSVODuserstendtobeyoungerandmoreaffluent

—twogroupsthatcustomarilyhavelowerTVviewinglevels.SVOD

householdsalsohavehigherTV-connectedanddigitaldeviceownership

thanthegeneralpopulation,buttraditionalTVstillaccountsforthe

majorityofviewinginthesehomes.

Whilethemajorityofrespondentsintheglobalonlinesurvey(68%)say

theyhavenoplanstocanceltheirexistingtraditionalserviceinfavorof

anonline-onlyservice,almostone-third(32%)saytheyplantocutthe

cord.ResponseswerehighestinAsia-Pacific,where44%ofrespondents

indicatetheyplantocanceltheircableorsatelliteserviceforanonline-

onlyservice.Lessthanone-quarterofLatinAmerican(24%),North

American(22%)andEuropean(17%)respondentshaveplanstocancel.

Itshouldbenoted,however,thatthedesiretocutthecorddoesn’t

necessarilytranslatetoactualbehavior.Infact,arecentNielsenstudyin

theU.S.showsthatonlyaverysmallpercentageofthosewhoexpressed

adesiretodroptheirmultichannelserviceactuallydidso.

Thelong-termimpactofgrowingonline-servicesubscriptionsis

amplifiedbytheirpopularityamongyoungerconsumers.Globally,

31%eachofGenerationZ(ages15–20)andMillennial(ages21–34)

respondentssaytheypayanonline-serviceproviderforcontent,

comparedwith24%ofGenerationX(ages35–49),15%ofBabyBoomer

(ages50–64)and6%ofSilentGeneration(ages65+)respondents.And

roughlyfour-in-10GenZ(40%)andMillennial(38%)respondentswho

subscribetocableorsatellitesaytheyhaveplanstocanceltheirservice

infavorofanonline-onlyoption—aratethatisnearlythreetimeshigher

thanforBabyBoomers(15%)andfourtimeshigherthanforSilentGen

respondents(9%).

Page 7: Video on demand - Nielsen€¦ · • Video on demand is becoming a part of daily viewing habits for many. Among those who watch any type of VOD programming, 43% say they watch at

7Copyright © 2016 The Nielsen Company

YOUnGER RESpOnDEnTS ARE MORE LikELY TO USE An OnLinE-SERVicEpROViDER AnD TO pLAn TO cUT THE cORD

peRCentAge of ReSpondentS wHo CuRRently pAy pRovideR foR pRogRAMMing*

*Respondentscouldselectmultipleserviceproviders.Doesnotincluderespondentswhodonotsubscribetoanypaidservice.

Source:NielsenGlobalVideo-on-DemandSurvey,Q32015

70% CAble And/oR SAtellite

31% online SeRviCe

5% otHeR

73% CAble And/oR SAtellite

31% online SeRviCe

5% otHeR

77% CAble And/oR SAtellite

24% online SeRviCe

4% otHeR

64% CAble And/oR SAtellite

15% online SeRviCe

4% otHeR

63% CAble And/oR SAtellite

6% online SeRviCe

2% otHeR

peRCentAge of CAble/SAtellite SubSCRibeRS wHo SAy tHey plAn to CAnCel SeRviCe in fAvoR of online-only SeRviCe

geneRAtion Z (AgeS 15–20)

MillenniAlS (AgeS 21–34)

geneRAtion X (AgeS 35–49)

bAby booMeRS (AgeS 50–64)

Silent geneRAtion

(AgeS 65+)

40%

38%

30%

15%

9%

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8 Video on demand

“Theincreasingpopularityofonline-onlyvideoserviceswillcontinueto

putpressureonnetworksandMVPDs,butasubstantialreplacementof

onefortheotherisunlikely,”saidClarken.“Whilesomeconsumersare

cuttingbackontraditionalTVservices,manyaren’tseveringthecord

completely.Formostviewers,onlineandtraditionalservicesarenot

mutuallyexclusive,butcomplementary.Moreover,online-onlyservices,

networksandMVPDsfacemanyofthesamechallenges,including

rapidlyevolvingconsumerpreferences,anoverabundanceofchoice

andrisingcontentcosts.Inthenearterm,cordshavingislikelythe

biggestthreatasconsumersevaluatethebenefitofpremiumservicesor

networksandconsiderslimmerchannelpackagesthatprovideabetter

matchforbothpreferencesandwallets.”

OneclearadvantagefornetworksandMVPDsisthatthereisnosimple

replacementforlivenewsandsportsprogramming.Inaddition,these

providersmaintainliveaccesstoprograms,someofwhichdon’t

becomeavailableondemanduntillongafterthey’veoriginallyaired.

It’salsotruethatdealingwithasingleproviderratherthanmanaging

multipleaccountscanbeeasierforconsumers.

“Some networks and MVPDs are turning to a business model referred to as ‘tV Everywhere,’ which allows their customers to access content from their network through Internet-based services—either live or on demand,” said Clarken. “this type of service is a win-win for audiences and tV providers alike: Customers get more ways to view the content they’re already paying for, at no additional cost, while networks and MVPDs give consumers one less reason to explore alternative providers. the ability to access content anytime, anywhere, on any device represents the ultimate in convenience and choice for consumers, but not all networks and MVPDs have been able to check all of these boxes. to drive mass adoption of tV Everywhere, providers need to boost awareness, do a better job communicating the value proposition, and consolidate and simplify the user experience.”

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9Copyright © 2016 The Nielsen Company

1VODprogrammingcanincludelong-andshort-formcontent.

Source:NielsenGlobalVideo-on-DemandSurvey,Q32015

the ins and outs of on-demandOn-demandisfastbecominganintegralpartofdailyviewinghabitsfor

many.Infact,amongthosewhowatchanytype1ofVODprogramming

(65%),morethanfour-in-10globalrespondentssaytheywatchatleast

onceaday(43%).Andit’snotjusttheyoungestrespondentsviewingon-

demandprogramming.WhileahigherpercentageofGenerationZand

Millennialrespondentsreportwatchingon-demandcontentdailyormore

often(49%and48%,respectively,watchdailyormoreoften)thantheirolder

counterparts,morethanone-fifthofSilentGenerationrespondents(21%)

andone-quarterofBabyBoomers(26%)saytheywatchatleastonceaday.

MoviesdominatethetypeofVODcontentwatchedacrossallregionsand

generations.Eightypercentofglobalrespondentswhowatchon-demand

contentsaytheyviewmovies,followedbyon-demandTVprograms(50%).

Whenitcomestopopularprogramgenres,comedies(38%)andoriginal

series(32%)rankthehighestglobally,followedbysportsanddocumentaries

(31%each).Twenty-twopercentofglobalrespondentssaytheywatchshort-

formvideocontent(videosof15minutesorlessinlength).

THE MAjORiTY Of VOD ViEWERS Of ALL AGES WATcH pROGRAMMinGA fEW TiMES A WEEk OR MORE OfTEn

Self-RepoRted viewing fRequenCy AMong tHoSe wHo wAtCH Any typeof vod pRogRAMMing on Any online deviCe

GENERatION Z (15–20)

MILLENNIaLS (21–34)

GENERatION X (35–49)

baby bOOMERS (50–64)

SILENt GENERatION (65+)

49% 34% 17%

48% 38% 14%

38% 43% 19%

26% 43% 31%

21% 40% 39%

Gotta have it(daily)

Love it (a few times per week)

Like it (3 times per month or fewer)

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10 Video on demand

growth driVers and deterrentsThere’snoquestionthatVODservicesaretransformingtheways

audiencesconsumevideo.Butwhileseveralstrongmotivatingfactors

willsupportcontinuedgrowth,thereareafewbarrierstobemindfulof,

too.

Notsurprisingly,convenienceisaveryimportantfactorinthedecision

towatchVODprogramming.AmongthosewhowatchVOD,morethan

three-quartersofglobalrespondents(77%)somewhatorstronglyagree

theydosobecausetheycanviewcontentatatimethatisconvenientfor

them.AgreementwashighestinLatinAmerica(82%),NorthAmerica

(81%)andEurope(80%)andslightlylowerintheMiddleEast/Africa

(77%)andAsia-Pacific(76%).

RespondentsarealsowatchingVODcontentbecauseitallowsmultiple

peopleinthehouseholdtowatchdifferentprogrammingondifferent

devicesatthesametime.Two-thirdsofglobalrespondentswhowatch

VODagreethisisareasonforviewing(66%).Inaddition,among

thosewhowatchVODcontent,binge-watchingispopularanddriving

viewership.Sixty-sixpercentofglobalrespondentssaytheabilityto

watchmultipleepisodesinasinglesittingisamotivatorforwatching

VODcontent.ThisattributeismoreappealinginNorthAmerica(73%)

andAfrica/MiddleEast(70%)thanglobally.AndwhileMillennialsand

GenerationXarethemostlikelytoagreetheywatchVODbecause

theyliketocatchuponmultipleepisodesatonce(68%and67%,

respectively),almosthalfofrespondentsineveryothergeneration

somewhatorstronglyagreewiththisstatement.

TheperceptionofcostisanotherpotentialdriverfuelingVODgrowth.

Nearlysix-in-10globalrespondentswhowatchVODprogrammingsay

itislessexpensivethanprogrammingfromacableorsatelliteprovider

(59%),withabove-averageagreementinLatinAmerica(67%)andNorth

America(64%).

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11Copyright © 2016 The Nielsen Company

Forallitsbenefits,VODhasshortcomings.Amongthosewhowatch

VODcontent,morethanseven-in-10globalrespondents(72%)say

theywishmoreprogrammingchoiceswereavailable.InaseparateU.S.

onlinesurveyofSVODviewers,limitedcontentselectionwasamongthe

topreasonsSVODsubscriberswerestreaminglesscontentthanwhen

theyfirststarted.

Two-thirdsofglobalrespondents(67%)agreewatchingVOD

programmingonanonlineormobiledeviceisnotasgoodaswatching

onabiggerscreen.Sentimentissimilaracrossregionsandgenerations.

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12 Video on demand

LatIN aMERICaaSIa-PaCIfIC EuROPE MIDDLE EaSt/afRICa NORth aMERICa

cOnVEniEncE iS THE pRiMARY DRiVER Of VOD ViEWinG

peRCentAge of vod vieweRS wHo SoMewHAt/StRongly AgRee witH StAteMent

dRiveRS deteRRentS

i CAn view At A tiMe tHAt iS Convenient foR Me

i wiSH tHeRe weRe MoRe vod pRogRAMMing CHoiCeS AvAilAble

i like to CAtCH up on Multiple epiSodeS At one tiMe

pRogRAMMing iS leSS eXpenSive tHAn A CAble oR SAtellite pRovideR

eACH peRSon in My HouSeHold CAn wAtCH diffeRent pRogRAMMing At tHe SAMe tiMe

wAtCHing vod pRogRAMMing on An online oR Mobile deviCe iS not AS good AS wAtCHing on A biggeR SCReen

76%77%

68%

68%

63%

57%

80%62%

63%

61%

68%

52%

77%72%

68%

68%

70%

58%

82%73%

65%

66%

68%

67%

81%68%

67%

64%

73%

64%

Source:NielsenGlobalVideo-on-DemandSurvey,Q32015

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13Copyright © 2016 The Nielsen Company

OLDER RESpOnDEnTS BinGE-WATcH LESS VOD, BUT RESpOnDEnTSOf ALL AGES LOVE THE cOnVEniEncE Of VOD

peRCentAge of vod vieweRS wHo SoMewHAt/StRongly AgRee witH StAteMent

geneRAtion Z(15–20)

MillenniAlS (21–34)

geneRAtion X(35–49)

bAby booMeRS (50–64)

Silent geneRAtion

(65+)

I CaN VIEw at a tIME that IS CONVENIENt

fOR ME

I LIkE tO CatCh uP ON MuLtIPLE EPISODES at

ONE tIME

VOD IS LESS EXPENSIVE thaN a CabLE OR

SatELLItE PROVIDER

I wISh thERE wERE MORE VOD

PROGRaMMING ChOICES aVaILabLE

watChING VOD ON aN ONLINE OR MObILE

DEVICE IS NOt aS GOOD aS watChING

ON a bIGGER SCREEN

EaCh PERSON IN My hOuSEhOLD CaN

watCh DIffERENt PROGRaMMING at thE

SaME tIME

70%

60%

59%

55%

68%

62%

77%

70%

68%

60%

75%

67%

79%

66%

67%

61%

74%

67%

83%

57%

61%

52%

66%

67%

82%

44%

48%

38%

39%

66%

Source:NielsenGlobalVideo-on-DemandSurvey,Q32015

dRiveRS

deteRRentS

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14 Video on demand

staying afloat in a sea of adVertisingGreaterprogrammingchoicesalsomeanmorecompetingadvertising

messagesforaudiences.Consumersareinundatedwithan

overwhelminglyhighnumberofadsonadailybasis,andthey’relooking

tocutthroughtheclutter.Sixty-twopercentofglobalrespondents

whowatchVODsayonlineadsdisplayedbefore,duringorafterVOD

programmingaredistractingandtwo-thirds(65%)wishtheycouldblock

allads.

Thegoodnewsforadvertisersisthatmanyconsumersseevaluein

ads,butthevaluepropositionmustberight.Infact,morethanhalfof

globalrespondentswhowatchVOD(51%)somewhatorstronglyagree

thatadsinVODcontentgivethemgoodideasfornewproductstotry

andnearlysix-in-10(59%)saytheydon’tmindgettingadvertisingifthey

canviewfreecontent.ThissentimentisparticularlystronginNorth

America,where68%arewillingtotradetheirtimeandattentionforfree

programming.

What’sclear,however,istheneedformorerelevantadsthatspeak

directlytoconsumers.Two-thirdsofglobalrespondentssaymostadsin

VODcontentareforproductstheydon’twant(66%).

“Inacrowdedmediaenvironment,relevantadsandbrandexperiences

arecriticalforengagingconsumers,”saidClarken.“Justastechnology

hasmadeiteasierforconsumerstocontroltheamountofadvertising

theysee,ithasalsomadeiteasierforadvertiserstoreachtheright

consumersattherighttimeandintherightplace.Theadvertiserswith

thegreatestbrandandsalesimpactwillnaturallybethosethatconnect

messagesaboutproductsandserviceswiththepeoplewhowantthem.”

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15Copyright © 2016 The Nielsen Company

GLOBALLY, MOST WAnT LESS AD cLUTTER AnD MORE RELEVAnT ADS

peRCentAge of vod vieweRS wHo SoMewHAt/StRongly AgRee witH StAteMent About AdS diSplAyed befoRe, duRing oR AfteR vod pRogRAMMing

LatIN aMERICaaSIa-PaCIfIC EuROPE MIDDLE EaSt/afRICa NORth aMERICa

unfAvoRAble MoRe fAvoRAble

MoSt AdS ARe foR pRoduCtS i don’t wAnt

i don’t Mind getting AdS if i CAn view fRee Content

i wiSH i Could only See AdS tHAt ARe foR pRoduCtS tHAt inteReSt Me

i don’t Mind AdS tHAt diReCtly RefleCt puRCHASeS i’ve MAde in tHe pASt

online AdS ARe diStRACting

AdS give Me good ideAS foR new pRoduCtS i wAnt to tRy

76% 59%

59%

56%62%

68% 51%

69% 53%

64%

53%

65%

51%

52%50%

66%

64% 49%

62% 60%

56%

63% 43%

68% 68%

65%

64%

66% 50%

34%

34%

Source:NielsenGlobalVideo-on-DemandSurvey,Q32015

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16 Video on demand

naVigating what comes nextInthecurrentmediaenvironment,theonlyconstantischange.VOD

maybeoneofthemorerecententrantsinthefragmentationforay,

butitrepresentsacontinuationofthewildridetheindustryhasbeen

onformorethanadecade.Andthepaceofchangeisn’tlikelytoslow

anytimesoon.Winningoverviewershasneverbeenmorechallenging.

Whilechangeanduncertaintycanbedifficult,contentprovidersmust

stayagile,flexibleandaheadofwhateverchallengecomesnext.For

successfullynavigatingthenewmedialandscape,afewremindersare

worthnoting:

• Contentisking.It’sbeensaidtimeandtimeagain,butitbears

repeating:Goodcontentisgoodcontent,regardlessoftheplatform

ordeviceonwhichitisviewed.Theevolvingmedialandscape

hasnotlessenedthedemandforquality,professionallyproduced

content.Ifanything,ithasgainedimportance,asviewersare

unlikelytosettleforsomethingthatissimplyacceptablegiventhe

abundanceofchoicesavailable.Quality,notquantity,ofcontent

mustbethefocus.

• Contentdiscoveryisgainingimportance.Qualitycontentisanecessity,butit’snotenough.Programmingisdestinedtofail

ifaudiencesdon’tknowaboutitorcan’teasilyaccessit.With

ahuge—andgrowing—numberofchoicesavailable,mastering

contentdiscoverybecomesevenmorecritical.Smarterdiscovery

interfacesandcontentrecommendationalgorithmsthatpredict

whatusersmaylikeshouldbeakeyinnovationareaforcontent

providers.

• Personalizationisahugeopportunity.Consumersarewatching

contentontheirowntermsandthey’redemandingevenmore

control.Increasingly,they’repiecingtogetherpackagesthatdeliver

alltheprogrammingtheywantwithoutthesurplusofchannels

theydon’t.Savvycontentprovidersarerecognizingthistrend

andcateringtheirofferingsaccordingly.Inaddition,seamless

integrationofcontentacrossdeviceswillbecriticalasconsumers

growaccustomedtowatchingcontentanywhere,anytime,onany

screen.Andhelpingconsumerswadethroughtheabundanceof

availablecontentandselecttheprogrammingthatismostlikelyto

beofinterestwillbeparamount.

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17Copyright © 2016 The Nielsen Company

• Dualadvertisingmodelsareemerging.Thepersonalizationtrendalsoholdsforadvertising.Technologicaladvanceslike

programmaticandaddressableadvertisingareunlocking

opportunitiesformarketerstoreachviewersmoreprecisely.Perhaps

oneday,the65%ofrespondentswhowishtheycouldblockads

willinsteadintentionallytuneinforthem.Despitethepotential

forprogrammaticandaddressableadvertising,thereremainsa

powerfulcaseforbroadbrandadvertising,asthetwomodelsserve

differentpurposes.Onewillnotreplacetheother.

• Engagementwilldrivesuccess.Inasociallyengaged,buzz-drivenworld,contentcangoviralinaninstant.Increasingly,passionate

fans,notjustviewers,drivesuccessfulcontent.Fifty-eightpercentof

globalrespondentssaytheyliketousesocialmediawhilewatching

VODprogramming.Andit’snotjuston-demandprogrammingthat

benefitsfromsocial-mediabuzz.It’sanevenbiggerdrawforlive

TV.Infact,aU.S.NielsenSocialstudyshowedthat,onaverage,

68%ofweeklyTwitteractivityforseriesprogramsoccursduring

liveprogramairings(threehoursbeforethroughthreehours

after).Highlysocialseriesepisodes,withmoreTwitterimpressions

(numberoftimesTweetsareseen)duringliveairings,seeastronger

boostin+7ratings(ratingsforliveplussevendays),comparedto

lesssocialepisodes.Specifically,a10%increaseinimpressions

fromliveairingscorrespondswitha1.8%increaseinthe+7

audience.So,themoreTweetsareseenfromliveepisodeairings,

thegreatertheaudiencemaybelookingtocatchuponanepisode

laterthatweek.Consequently,contentprovidersshouldlookfor

waystoengageviewersbyintegratingdigitalcontentandsocial

mediaintheirofferings.

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18 Video on demand

MaRkEt INtERNEt PENEtRatION

Australia 93%

China 50%

HongKong 81%

India 30%

Indonesia 31%

Japan 91%

Malaysia 68%

NewZealand 94%

Philippines 43%

Singapore 82%

South Korea 92%

Taiwan 84%

Thailand 56%

Vietnam 50%

COuNtRIES IN thE StuDy

ASiA-pAcific

MaRkEt INtERNEt PENEtRatION

Egypt 55%

Morocco 61%

Pakistan 15%

SaudiArabia 66%

SouthAfrica 49%

UnitedArabEmirates

93%

MiDDLE EAST/AfRicA

Source:MiniwattsMarketing,InternetWorldStats,Nov.30,2015,www.internetworldstats.com

MaRkEt INtERNEt PENEtRatION

Canada 95%

UnitedStates 87%

nORTH AMERicA

EUROpE

MaRkEt INtERNEt PENEtRatION

Austria 83%

Belgium 85%

Bulgaria 57%

Croatia 75%

CzechRepublic 80%

Denmark 96%

Estonia 84%

Finland 94%

France 84%

Germany 88%

Greece 63%

Hungary 76%

Ireland 83%

Israel 75%

Italy 62%

Latvia 82%

Lithuania 82%

Netherlands 96%

Norway 96%

Poland 68%

Portugal 68%

Romania 56%

Russia 71%

Serbia 66%

Slovakia 83%

Slovenia 73%

Spain 77%

Sweden 95%

Switzerland 87%

Turkey 60%

UnitedKingdom 92%

Ukraine 43%

MaRkEt INtERNEt PENEtRatION

LATin AMERicA

Argentina 80%

Brazil 58%

Chile 72%

Colombia 59%

Mexico 49%

Peru 53%

Venezuela 62%

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19Copyright © 2016 The Nielsen Company

abOut thE NIELSEN GLObaL SuRVEy TheNielsenGlobalVideo-on-DemandSurveywasconductedAug.10—Sep.4,2015andpolledmorethan30,000onlineconsumersin61countriesthroughoutAsia-Pacific,Europe,LatinAmerica,theMiddleEast/AfricaandNorthAmerica.ThesampleincludesInternetuserswhoagreedtoparticipateinthissurveyandhasquotasbasedonageandsexforeachcountry.ItisweightedtoberepresentativeofInternetconsumersbycountry.Becausethesampleisbasedonthosewhoagreedtoparticipate,noestimatesoftheoreticalsamplingerrorcanbecalculated.However,aprobabilitysampleofequivalentsizewouldhaveamarginoferrorof±0.6%atthegloballevel.ThisNielsensurveyisbasedonlyonthebehaviorofrespondentswithonlineaccess.Internetpenetrationratesvarybycountry.Nielsenusesaminimumreportingstandardof60%Internetpenetrationoranonlinepopulationof10millionforsurveyinclusion.

abOut NIELSEN NielsenHoldingsplc(NYSE:NLSN)isaglobalperformance

managementcompanythatprovidesacomprehensiveunderstanding

ofwhatconsumerswatchandbuy.Nielsen’sWatchsegmentprovides

mediaandadvertisingclientswithTotalAudiencemeasurement

servicesforalldevicesonwhichcontent—video,audioandtext

—isconsumed.TheBuysegmentoffersconsumerpackagedgoods

manufacturersandretailerstheindustry’sonlyglobalviewofretail

performancemeasurement.ByintegratinginformationfromitsWatch

andBuysegmentsandotherdatasources,Nielsenalsoprovidesits

clientswithanalyticsthathelpimproveperformance.Nielsen,anS&P

500company,hasoperationsinover100countries,coveringmorethan

90%oftheworld’spopulation.

Formoreinformation,visitwww.nielsen.com.

Copyright©2016TheNielsenCompany.Allrightsreserved.Nielsenand

theNielsenlogoaretrademarksorregisteredtrademarksofCZT/ACN

Trademarks,L.L.C.Otherproductandservicenamesaretrademarksor

registeredtrademarksoftheirrespectivecompanies.16/9625

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20 Video on demand