Analysis for 'Comcast'
Monday, May 11, 2015, 10:03 AM ET|
U.S. pay-TV operators lost 31K video subscribers in Q1 '15, compared to a gain of 271K in Q1 '14, according to analysts MoffettNathanson. The loss was the first time the industry has ever lost subscribers in a first quarter, and signals an acceleration of cord-cutting (or cord-nevering, since it's hard to pull the two apart), contributing to a .5% industry contraction over the past 4 quarters (461K subscribers).
MoffettNathanson has always tried to put pay-TV results in context with both occupied housing net additions and new household net additions. In Q1, the former declined by 407K, but the latter increased by 1.3 million, suggesting around 900K households were added in the U.S. Despite the gain the industry still lost subscribers.
Wednesday, February 18, 2015, 10:23 AM ET|
Comcast said that in 2014 over 30% of its Xfinity TV subscribers used its TV Everywhere app ("Xfinity TV Go") on a monthly basis, representing a 20% year-over-year growth rate. The average Xfinity TV Go viewer watched over 7 hours per month via the app, up 40% vs. a year ago. Comcast said the Xfinity TV Go app for iOS and Android has been downloaded over 11 million times.
Monday, June 2, 2014, 10:12 AM ET|
Binge-viewing is surely one of the most notable cultural phenomena of the past few years. Barely registering as a concept less than 3 years ago, many recent research reports now cite binge-viewing as having been adopted - if not regularly practiced - by a majority of TV viewers (examples here, here, here, here, here, here).
The shift toward binge-viewing has immense implications for the TV and video industries, touching everything from the creative process to programming/distribution decisions to monetization approaches. Some companies are fully embracing binge-viewing and riding its wave, while others are taking a more cautious approach.
Stepping back though, how exactly did binge-viewing become such a cultural phenomenon? I believe there are at least 5 key contributing factors, with the relationships among them creating a perfect storm of growth.
Monday, March 17, 2014, 9:33 AM ET|
The 17 largest broadband ISPs in the U.S. added over 2.6 million subscribers in 2013, down almost 105K vs. the approximately 2.7 million subscribers they added in 2012. These ISPs now have 84.3 million subscribers, with cable TV operator ISPs having 49.3 million (58%) and telco ISPs having 35 million (42%). The data comes from Leichtman Research Group.
Friday, January 14, 2011, 10:51 AM ET|Even though I was very focused this week on the CES "takeaways" series, there was still plenty of news happening in the online and mobile video industries. So as in the past, I'm pleased to offer VideoNuze's end-of-week feature highlighting 5-6 interesting online/mobile video industry news items that we weren't able to cover this week. Enjoy!
Level 3 fights on in Comcast traffic dispute
Level 3 is showing no signs of relenting on its accusations that Comcast is unfairly trying to charge the CDN for Internet traffic it delivers to Comcast's network. In an interview this week, Level 3 said it may use the "Open Internet" provisions of the FCC's new network neutrality rules to press its case. Level 3's challenge is coming at the 11th hour of the FCC's approval process of the Comcast-NBCU deal; it's not really clear if Level 3 is having any impact on slowing the approval, which appears imminent.
Comcast-NBCU deal challenged over online video proposal
Speaking of challenges to the Comcast-NBCU deal, word emerged this week that Disney is voicing concern over the FCC's proposed deal condition that would force Comcast to offer NBC programming to any party that had concluded a deal with one of NBC's competitors for online distribution. The Disney concern appears to be that the condition would have an undue influence on how the online video market evolves and how Disney's own deals would be impacted. While the FCC should be setting conditions to the deal, the Disney concerns highlights how, in a nascent, fast-moving market like online video, government intervention can cause unintended side effects.
YouTube is notching 200 million mobile video views/day
As if on cue with my CES takeaway #3, that mobility is video's next frontier, YouTube revealed this week that it is now delivering 200 million mobile views per day, tripling its volume in 2010. That would equal about 6 billion views per month, which is remarkable. And that amount is poised to increase, as YouTube launched music video site VEVO for Android devices. YouTube clearly sees the revenue potential in all this mobile video activity; it also said that it would append a pre-roll ad in Android views for tens of thousands of content partners.
Google creates video codec dust-up
Google stirred up a hornet's nest this week by announcing that it was dropping support for the widely popular H.264 video codec in its Chrome browser, in favor of its own WebM codec, in an attempt to drive open standards. Though Chrome only represents about 10% market share among browsers (doubling in 2010 though), for these users, it means they'll need to use Flash to view non-WebM ended video. There are a lot of downstream implications of Google's move, but for space reasons, rather than enumerating them here, check out some of the great in-depth coverage the issue has received this week (here, here, here, here).
Netflix usage drives up Canadian broadband bills
An interesting test of Canadian Netflix streaming showed that a user there might have to pay an incremental $12/month under one ISP's consumption cap. That would be more than the $7.99/mo that the Netflix subscription itself costs, leading to potential cord-shaving behavior. This type of upcharge hasn't become an issue here in the U.S. because even ISPs that have caps have set them high relative to most users' current consumption. But if streaming skyrockets as many think it will, and the FCC allows usage-based billing, this could fast become a reality in the U.S. as well.
Friday, December 3, 2010, 10:49 AM ET|Following the Thanksgiving break last Friday, VideoNuze's end-of-week feature of curating 5-6 interesting online/mobile video industry news items that we weren't able to cover this week, is back. Read them now or take them with you this weekend!
Friday, November 19, 2010, 10:29 AM ET|After a short break, VideoNuze's Friday feature of curating 5-6 interesting online/mobile video industry news items that we weren't able to cover this week, returns today. Read them now or take them with you this weekend!
Time Warner Cable Experiments With Lower Tier Video Package
It's a rare day when a cable operator announces a lower-priced offering, but that's what Time Warner Cable did yesterday, unveiling a test of what it's calling "TV Essentials." The new tier, priced between $30-$40, will most notably exclude ESPN, the most expensive channel in the cable universe, meaning right away TV Essentials isn't targeted to sports fans. I've argued for a while now that pay-TV operators have ceded the low-priced/value-oriented end of the video market to Netflix (and others), which given the ongoing recession is a mistake. It will be interesting to see how the new bargain service fares; 2 things that will limit its appeal though are that no channels will be offered in HD, and that it appears those with broadband Internet and telephone services won't benefit from typical package discounts.
Nielsen study: We're still a nation of couch pumpkins
More evidence this week that despite all the deserved enthusiasm over online and mobile delivery, good old-fashioned TV viewing still rules in terms of hours of consumption. Nielsen said that the average person watched 143 hours of TV per month in Q2, essentially flat vs. a year ago. For homes with DVRs, hours of time watched on them nudged up a bit to about 24 1/2 hours. On a related note, this week comScore released its online video viewing data for October, which showed average viewing of 15.1 hours per person. While online video has made huge progress in the last few years, it still has a ton of room to grow to catch up with TV.
More Videos Ads, More User Acceptance
Speaking of the comparison between online video and TV, this week brought some interesting new data on monetization patterns for premium online video. Online video ad manager FreeWheel released data that showed mid-roll ads are the fastest-growing category of ads (up 693% since Q1), and now represent 8% of its ad volume. Completion rates have increased for pre, mid and post-roll ads this year, but notably mid-rolls have the highest completion rate, at 90%. FreeWheel's conclusion is that monetization of premium online video is starting to look a lot like TV, with ad pods inserted throughout. Going a step further, if viewer acceptance of mid-rolls stays high, then this represents a valuable opportunity for TV networks in particular to combat DVR-based ad-skipping.
Startup Claims To Have Set-Top Hulu Can't Block
It was inevitable that Hulu's decision to block access to its programs would set off a game of whack-a-mole, with various devices springing up to do end-arounds. Sure enough, the $99 Orb TV debuted this week, prominently positioning itself as the device that can bring Hulu (among other content) to your TV. One catch is that Orb streams video from your computer and only does so in standard definition. It addresses the "keyboard in the living room" challenge by also including a smartphone app to control the device. It's not a perfect solution, but it does provide a glimpse into the PR-unfriendly dynamic that Hulu, and the broadcast networks, have created for themselves by blocking access to their content by Google TV and others. No doubt there will be plenty more Orb-like devices to come to market in the months ahead, all positioning themselves as solving the blocking problem.
Comcast's Top Digital Exec Amy Banse to Open New Silicon Valley Equity Fund for Cable Giant and NBC
As Comcast enters the final stages of approval for its NBCU deal, the company this week announced a new NBCU management structure. One item that wasn't formally announced yet, but was reported by AllThingsD earlier this week was that Amy Banse, formerly head of Comcast Interactive Media (now headed by Matt Strauss), will be heading to Silicon Valley to run the combined operations of Comcast's current Comcast Interactive Capital venture arm, and NBCU's current Peacock Equity (a JV with GE). With all the distribution, technology and content assets that will be under the Comcast roof, the fund will be at the top of any online/mobile video startup's list of strategic investors. I've known Amy for a while and have enjoyed having her on industry panels; she'll be a huge asset to Comcast in the Valley venture world.
Friday, October 29, 2010, 10:03 AM ET|Lots more happened this week in online/mobile video, and so to make your lives easier, VideoNuze is once again curating 5-6 interesting industry news items that we weren't able to cover this week. Read them now or take them with you this weekend!
No Longer 'Must-See TV'
The WSJ reported this week that Thursday night TV viewership (live or recorded) among 18-49 year-olds is down 4.3% this season to 48.5 million, a drop of 2.2 million viewers. For this age group, the drop across all nights (live or recorded) is 2.7%. While the decreases have immediate implications on networks' ad revenue, the bigger issue of course is what the drops say about shifting consumer preferences. For example, I continue to hear anecdotes about users with connected devices now tuning in first to their Instant Watch queues instead of channel surfing or visiting their DVR libraries or VOD. The Nielsen data corroborates other data (here, here) about the decline of TV viewing, especially among young people, and is another reason why broadcast networks in particular should be embracing connected devices like Google TV, not blocking them.
CW Says Study 'Dispels Myth' About Aversion to Ads in Online Video
Speaking of networks and their online distribution, this week CW released some interesting new data that detailed extremely low abandonment rates for its shows consumed online, even with ad loads almost equal to those on-air. While it is too early to generalize, the data provides a very encouraging sign that networks may be able to achieve parity economics with on-air, even when they window their online releases for delayed availability. It's also an important sign that online video may be a firewall against DVR-based ad-skipping.
Comcast Launches Free Streaming Video Service Xfinity for All Digital Subs
In addition to releasing stellar Q3 earnings this week (albeit with a bigger-than-expected subscriber loss), Comcast also pulled the "beta" label off its Xfinity TV service this week, and relaxed its rules about who can gain access. Now any video subscriber, regardless of who they take their broadband Internet service from, can access XFTV.
Some began to speculate that it could be a precursor for Comcast allowing non-video subs to also gain access to XFTV. This is the concept I wrote about in over a year ago, in "How TV Everywhere Could Turn Cable Operators and Telcos Into Over-the-Top's Biggest Players." The idea is that TV Everywhere services like XFTV could be offered outside of Comcast's franchise areas to allow them to poach video subscribers from other pay-TV operators. It's still a fascinating concept, but nothing about Comcast's move this week suggests it's coming soon.
Insight To Bow 50-Mbps Internet In Two Markets
If you think all that Netflix and other long-form streaming is going to strain users' bandwidth, think again, as yet another cable operator/broadband ISP, 9th-largest Insight Communications unveiled plans for a speedy 50 megabit per second broadband tier. Big players like Comcast and Time Warner Cable have been offering this for a while already. It's still very pricey, but as some viewers shift more of their consumption to online and away from conventional TV viewing (see above), more bandwidth will be worth the price. Update - I missed this item, that over in the U.K. Virgin Media began taking sign-ups for a 100 Mbps broadband service. Net, net, last-mile bandwidth will keep expanding to meet increasing demand.
Promoted Videos hit half a billion views
Fresh evidence this week that YouTube is finding innovative ways to monetize its massive audience: the company's performance-based "Promoted videos" format achieved its 500 millionth view, just 2 years after being introduced. With Promoted videos, anyone uploading a video to YouTube (brand, content provider, amateur), can buy opportunities to have that video appear alongside relevant keyword-based searches in YouTube. It's a similar format to AdWords, and of course the video provider only pays when their video is actually clicked on. As I said recently, YouTube is becoming a much more important part of Google's overall advertising mix, while for many brands, YouTube's home page is fast-becoming the most desirable piece of online real estate.
Friday, July 17, 2009, 9:09 AM ET|Following are 4 news items worth noting from the week of July 13th:TV Everywhere survey should have cable industry clicking their heels - I wasn't at all surprised to read results of a new Solutions Research Group survey fielded to 500 Comcast and Time Warner Cable subscribers giving the concept of TV Everywhere positive reviews. As Multichannel News reported, in the overall survey 28% of respondents said the idea was "excellent" and 45% said it was "good." Digging in further though, among those 18-49 the "excellent" score surged to 80%, while 87% of Hulu and Fancast users approved of the idea. Unprompted, respondents cited benefits like convenience, remote viewing, getting better value from their cable subscriptions, watching on PCs in rooms without TVs and catching up on missed programs. My take: consumers "get" what TV Everywhere is all about and already have positive initial reactions, meaning there's very significant upside for the cable industry.
Paid video forecast to surpass free - A Strategy Analytics forecast that got attention this week says that the global paid online video market will be worth $3.8B in 2009, exceeding the global free online video segment which will total $3.5B. I haven't seen the details of the forecast, but I'm very curious what's being included in each of these numbers as both seem way too high to me. The firm forecasts the two segments to grow at comparable rates (37% and 39%), suggesting that their size will remain relatively even. I suspect we're going to be seeing a lot of other research suggesting the paid market is going to be far larger than the ad-supported market as sentiment seems to be shifting toward subscriptions and paid downloads.
Consumer generated video contests remain popular - VideoNuze readers know I've been intrigued for a while now about contests that brands are regularly running which incent consumers to create and submit their own videos. Just this week I read about two more brands jumping on the bandwagon: Levi's and Daffy's retail stores. NewTeeVee had a good write-up on the subject, citing new research from Forrester which reviewed 102 different contests and found the average prize valued at $4,505. I see no end in sight for these campaigns as the YouTube generation realizes it's more lucrative to pour their time into these contests than training their cats to skateboard. Brands too are recognizing the wealth of amateur (read cheap!) talent out there and are moving to harness it.
MySpace has lots of work ahead to become a meaningful entertainment portal - The WSJ ran a piece on Monday based on an interview with Rupert Murdoch in which he was quoted as saying MySpace will be refocused "as an entertainment portal." That may be the winning ticket for MySpace, but I'm not totally convinced. MySpace has been in a downward spiral lately, with a 5% decline in audience over the past year, a 30% headcount reduction and an executive suite housecleaning. While always strong in music, according to comScore, its 48 million video viewers in April '09 were less than half YouTube's 108 million, while its 387 million video views were about 5% of YouTube's 6.8 billion. Clearly MySpace has a very long way to go to give YouTube serious competition. It will be interesting to see if the new management team Murdoch has installed at MySpace can pull off this transition.
Monday, July 13, 2009, 9:47 AM ET|
I'm back in the saddle after an amazing 10 day trip to Israel with my family. On the assumption that I wasn't the only one who's been out of the office around the recent July 4th holiday, I've collected a batch of industry news links below so you can quickly get caught up (caveat, I'm sure I've missed some). Daily publication of VideoNuze begins again today.
Wednesday, March 11, 2009, 8:01 AM ET|
Last Friday, Leichtman Research Group released is quarterly roundup of broadband subscription growth sorted by major cable operators and telcos. LRG, run by my former colleague and friend Bruce Leichtman, has long been the bible for many in the industry for tracking broadband subscriber growth. LRG's numbers continue to demonstrate why broadband video has become such an exciting new distribution medium while adding context to Comcast's and Time Warner's recent moves to begin making online access to cable programming available to their subs.
To highlight a few key numbers, at the end of '08 the top broadband ISPs had 67.7 million subscribers, with top cable operators accounting for about 54.5% and top telcos the remainder. Top cable operators continue to maintain their edge in subscriber acquisition as well, grabbing 59% of all new broadband subs in '08.
And no surprise to anyone, with the rising penetration levels, the annual increases in total new subs have continued to slow: in '06 top cable and telco ISPs added 10.4M subs, in '07, 8.5M subs and in '08, 5.4M subs. Still, in the teeth of harsh economic downturn in Q4 '08, these ISPs were still able to add over 1M subs, growth that contracting industries like autos, retail and home-building would no doubt have killed for.
Broadband has long since become a utility for many American homes, a service that is as much expected as essentials like electricity and plumbing. A key reason broadband video is enjoying the success it is owes to the fact that broadband subscriptions have been driven for other reasons (e.g. faster email access, music downloads, always-on connectivity) over the years. Video has only recently become an additional and highly-valued benefit, which broadband ISPs now expect will drive interest in faster (and more expensive) broadband service plans.
Broadband's importance to the cable industry is demonstrated by the chart below showing #1 cable operator Comcast's performance over the last 2 years, which I originally posted on last November ("Comcast: A Company Transformed).
Note the company has now lost basic cable subscribers for 7 straight quarters, even as it continues to add digital video subs and broadband subs (and voice subs) at a healthy clip. I expect these trend lines will continue in their current pattern. No doubt this is the kind of picture that has helped spur Comcast (and #2 operator Time Warner Cable) to begin planning online distribution of cable programming, a feature that I believe will provide highly popular. Operators are in a tremendous position to capitalize on the shifting interests of their subscribers.
What do you think? Post a comment now.
Thursday, February 26, 2009, 8:54 AM ET|
This past Tuesday I highlighted some of Nielsen's recent data which showed, among other things, significant online and mobile video usage by younger age groups. In that post I noted that marketers need to pay close attention to these trends to ensure their products and services meet these users' needs and expectations.
New research from The Diffusion Group (a long-time VideoNuze partner) provides a window into how users think about accessing video across multiple screens, and who the providers might be. TDG has recently completed a survey of 2,000 adults (18 or above) which tested interest in two-screen and three-screen services along with content and features. TDG has graciously provided a sample of the slides for complimentary download by VideoNuze. You can download the slides here.
TDG defined a three-screen service as "a single video service which feeds all your household TVs, PCs and mobile devices, for a single monthly fee, from a single service provider, and with relatively equal content, variety and quality of service for all three devices."
TDG found that almost 25% of those surveyed responded positively to such a package. Whereas video marketers would have traditionally considered heavy TV viewership (25 hours/week and above) to be the most important criterion for driving more video services adoption, these so-called "three-screen intenders" don't exhibit heavier TV viewership than non-intenders (though they're slightly higher in moderate viewership, 11-25 hours/week).
Rather, the behavior that distinguishes three-screen intenders is how much online viewing they're doing. The intenders are far higher consumers of online video in general, and of online TV programs in particular. In other words, their behaviors are already self-selecting them as the targets for a three-screen service offering. That of course makes it much easier for marketers to find and target them.
All of this certainly supports Comcast's and Time Warner Cable's recently revealed plans to offer their video subscribers online access to programs. Better news still for these companies is that TDG found that cable operators were the top choice by intenders as the preferred three-screen provider. Cable was chosen by 31.7% of intenders, almost double the amount that selected satellite operators. Translation: there is a sizable group of consumers interested in three-screen services and cable appears to be in the prime position to capitalize on this.
Of course, the next question then is whether cable operators should charge for these services or imitate Netflix's example with Watch Instantly by including them as a value add to existing digital services. In my opinion, at least some of the online viewing capability should be included for no extra charge. That would go a long way toward establishing loyalty, and position cable for even greater competitive gains.
What do you think? Post a comment now.
Categories: Cable TV Operators
Video Research Around the Web
- As streaming surges globally, Roku is falling behind abroad Protocol
- World-Wide Streaming Subscriptions Pass One Billion During Pandemic WSJ
- Cable Now Controls Nearly 70% of U.S. Fixed Broadband After Biggest Year Since 2008 Next TV
- Cord Cutting’s Worst Year Ever: Analyst B&C
- Disney Plus Will Surpass Netflix in Customers by 2026, Research Company Says Next TV
- Tubi Says Streaming Rose 58% In 2020, With Half Of Viewers Younger Than 35 Deadline
- U.S. SVOD Revenue Spiked 39% in Q3 to $5.5 Billion Next TV
- What Are Consumers Willing To Pay For Ad-Free TV Content? Mediapost