• Study: 82% of Heavy TV Everywhere Users Believe Pay-TV is a Strong Value

    New research validates the key assumption that TV Everywhere adds critical value to the increasingly expensive pay-TV subscription. In a survey, HUB Research has found that 82% of heavy TVE users rate pay-TV a "good" or "excellent" value vs. 52% for light TVE users, and just 48% for non-TVE users.  

    That's encouraging news for the pay-TV ecosystem, however, just 16% of subscribers are actually heavy users, using TVE several times per week or every day). Importantly though, 30% of millennials identify themselves as heavy users. Clearly a key industry challenge is to raise TVE awareness and usage.

    In addition, HUB found that TVE creates more positive impressions of both TV networks and pay-TV operators. Among all pay-TV subscribers, 54% said TVE makes them feel a lot more positive about a particular TV network, vs. 73% for TVE users. Similarly, among all pay-TV subscribers, 53% said TVE makes them feel a lot more positive about their pay-TV operator, vs. 71% for TVE users.

    The research was presented by HUB principal Jon Giegengack at last week's NABShow Online Video Conference, which I hosted. I have embedded the full presentation below.

    I've long believed that TV Everywhere is the pay-TV industry's most critical strategic initiative because it untethers pay-TV's huge assortment of programming from the set-top box. By providing anytime/anywhere access to this content, pay-TV helps meet the expectations of OTT users who have long since grown accustomed to watching on multiple devices.

    This is particularly important for millennials, who are being barraged by a range of new low cost, flexible services like Sling TV, HBO Now, Verizon "Custom TV" and others seeking to pull them away from expensive pay-TV subscriptions. HUB found that 61% of the shows millennials watch are time-shifted and that 65% of millennials with pay-TV have used TVE.

    The research is definitely a positive for the industry, showing that TVE can have a big impact on subscriber value. That said, TVE is still very much a work in progress, as it's been rolled out to differing extents by different operators, and with network/program inclusion and user experiences all over the board. That contrasts with Netflix's one-size-fits-all approach that has helped it to get to 40+ million U.S. subscribers.

    The survey was conducted online of 1,507 U.S. TV viewers with broadband, age 16-74 who watch at least 5 hours of TV per week.


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