Adobe Q2 2016 TV Everywhere Report

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Adobe Digital Insights Q2 2016 TV Everywhere Report


Methodology

Analysis based on aggregated and anonymous data from Adobe Marketing Cloud Includes consumer video viewing data from 2015 and 2016 Adobe does not use any personally identifiable information to generate this report

Sample information includes: 1.6 billion TV Everywhere authentications in North America 300+ different sites and apps acting as access points for TV Everywhere

Solutions Leveraged:

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Adobe Primetime

Adobe Analytics


Key Insights

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1. TVE time spent viewing on TV Connected Devices has increased 149% YoY

2. TVCDs have become standard household devices with 143% sales growth YoY

3. An eSports app could be TVE’s gateway to the gaming masseso Gaming consoles represent ~40% of TVCDs, but less than 1% of all TVE video starts

4. Android devices drawing new TVE viewers into the marketo Android share of TVE authentications up 40% YoY

5. TVE grows, but loses momentum after Q1 successeso Authenticated viewing grew 78% YoY driven by unique visitor growth


1 / TV Returns to the Living Room

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• Nearly half of time spent occurs on TVCDs - further cementing TVE as a home-based activity

• Browsers were the medium of choice last year, but TVE awareness and app development have progressed bolstering viewership on TVCDs


2 / Strong TVCD Sales Indicate Growing Market & Viewer Base

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Online sales for TVCDs up 143% YoY Strong, existing consumer interest in SVOD helping drive TVCD sales

Projection: 56M U.S. households have subscriptions to at least one SVOD service (Strategy Analytics, end of 2015)


3 / eSports: TVE’s Gateway to the Gaming Masses

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eSports app could entice gaming audience into TVE Gaining ground in broadcast TV

Social mentions grew 116% (since June 2014)• Large spikes: League of Legends & DOTA 2 tournaments

Twitch: Had over 100 million UVM last year (WSJ)

TVE is missing a huge opportunity on gaming consoles Consoles make up ~40% of TVCDs, but only <1% of all TVE

video starts


4 / Android Devices Drawing New TVE Viewers Into The Market

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Android, Roku & Macs see significant YoY Growth

Android share of TVE authentications up 40% YoY Early adopters of TVE were iOS viewers and it is now being used by a wider audience Chromecast growth likely drawing in more Android viewers

iOS share of TVE authentications down 18% YoY Share of authentications dropped due to weak viewer growth on iOS devices;

increase in viewing frequency not enough to offset


5 / Programming Seasonality Showing its Effects

TVE growing but lost momentum after Q1 successes

Authenticated viewing grew 78% YoY, but dropped 64% QoQ

Strong growth spurred primarily by unique visitor growth

Major sporting events in Q3 expected to bring TVE viewing to an all-time high

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6 / Device Viewing Frequency Remains Constant

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Frequency on all devices remains fairly stagnant YoY: Viewers appear to have fallen into their routines

watching the same amount of videos per month

There have not been any large disruptions in technology to shift TVE viewing behaviors


A Few Predictions

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1. Single sign-on: Devices like Roku and Amazon Fire will follow in the footsteps of Apple TV by implementing a single sign-on solution, easing entry into TVE

2. Netflix vs Hulu: Programmers will withhold more content from Netflix to focus on Hulu, their own TVE offerings and those of MVPDs – as Netflix continues to accelerate investments in original programming

3. Pure-play AVOD services will struggle: why watch commercials when ad-free services like Netflix and Amazon are a click away?

4. Skinny bundles: MVPDs will continue creating alternatives to traditional cable TV but will struggle with the underlying economics


Glossary

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Viewing frequency: Video start per unique viewer

Authenticated video: Video content that requires credentials from multichannel video programming distributor (MVPD)

SVOD: Subscription Video on Demand (i.e. Netflix, Hulu, Amazon Prime)

TVCD: TV Connected device, which includes Apple TV, Roku, Chromecast, Amazon Fire, gaming consoles such as Xbox and PlayStation, and other platforms

Active monthly viewer: Viewer who authenticates at least once per month

Monthly unique visitor: Total number of unique visitors for the month

Access types:• Browser includes Chrome, IE, Firefox, and Safari on both PC and mobile devices

• iOS app is an app on any Apple mobile device

• Android app is an app located on any Android mobile device

• Gaming console and OTT includes data from apps on Xbox, PS4, Apple TV, Roku, Amazon Fire TV, and other similar devices
