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  • Research: Streaming Services Linked to Cord-Cutting

    Streaming services have long been linked to cord-cutting, and new research from Manatt and Vorhaus Advisors provides another window into the relationship.  Among those likely to cut the cord in the next year, nearly half (44%) said that after doing so they would rely on SVOD services like Netflix or Hulu.

    And when asked their reasons for going without pay-TV service, “too expensive’ topped the list of reasons cited (as expected) with 47%, followed by “I don’t watch enough TV to make it worth it” (30%). But then the next 3 reasons all relate to the strength of streaming services: “I am satisfied with online streaming options on my TV,” (24%) “I have enough entertainment options on the Internet” (23%) and I can watch the TV shows and movies I like on the Internet” (21%).

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  • Video Ad Spending Stays Strong on Social, With CTV Gaining

    Video ad spending remains strong on the biggest social platforms, while connected TVs are gaining, according to a new Pixability survey of ad agency executives. 90% of agencies are running video ad campaigns on Facebook, followed by 88% on YouTube and Instagram. Hulu was fourth with 80%. Roku was at 58%, ahead of Twitter (42%) and Snapchat (36%). Amazon Fire TV lagged at 27%. Linear TV is used by 76% of ad executives surveyed.

    All platforms look poised for continued success with 63% of agency executives saying they’ll increase video ad spending in 2020 by 1-10%, and another 20% saying they'll increase spending by over 10%.

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  • Research: Streaming Hours Up 130% in Q2 ’19 as CTV Leads Again

    Streaming video hours were up 130% in Q2 ’19 vs. Q2 ’18 according to Conviva’s new State of the Streaming TV Industry report. Connected TVs led with 143% growth, followed by mobile (up 109%) and PC (up 75%). CTVs also led with 28.8 minutes of watch time per play, followed by PC with 15.1 minutes and mobile with 12 minutes.

    Overall, CTVs accounted for 54% of all viewing hours in Q2 ’19, followed by mobile (23%), PC (14%) and others (8%). Roku continues to dominate the CTV category, with 43% of time viewing. Fire TV was a distant second at 18%, followed by Apple TV at 10% and Xbox at 9%.  Roku also had the highest year-over-year growth rate in viewing hours, at 173%, with Fire TV next at 145%, and then Apple TV at 129%.

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  • Research: Nearly Half of Online Video Ads Now on Connected TVs

    Nearly half (49%) of online video ad impressions in Q1 ’19 were delivered on connected TVs according to new data from Extreme Reach’s Q1 '19 Video Benchmark Report, which is based on the company’s proprietary ad server. CTVs’ 49% share in Q1 ’19 was up from its 31% share in Q1 ’18. Every other device saw declines in video ad impressions year over year: Mobile from 33% to 25%, Desktop from 24% to 17% and Tablet from 11% to 7%.

    As Extreme Reach notes in its analysis, there are multiple tailwinds helping drive up CTV ads: Over two-thirds of U.S. households owned a CTV device by end of 2018, ad-supported services like Hulu, Pluto TV, Tubi, The Roku Channel, etc. are proliferating and growing their usage. vMVPDs like YouTube TV, Hulu with Live TV, etc are expanding their subscribers and viewing times with linear TV consumption. These and other factors are growing CTVs’ supply, while enhanced targeting/attribution are enticing buyers.

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  • Research: U.S. Cord Never Population Rises to 31 Million

    There are now approximately 31 million “cord never” adults in the U.S. - people who have never paid for a traditional pay-TV service - according to MRI-Simmons’s latest Cord Evolution research. This represents 12% of the U.S. population, an increase from 9% that MRI-Simmons found in 2017. Cord nevers have a median age of 33 and household income of $52,800 (up from $41,500 two years ago).

    With the massive explosion of streaming options, it is easier than ever for viewers to avoid becoming a pay-TV subscriber. It is even more alluring for younger viewers for whom streaming has played a bigger part in their lives and who are less wedded to traditional channel surfing and linear viewing.

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  • Another Strong Year for Cable Broadband Growth Fuels TV’s Disruption

    The biggest U.S. cable companies added nearly 2.9 million broadband subscribers in 2018 according to a new report from Leichtman Research Group. That was up from 2.7 million subscribers added in 2017.

    Cable-delivered broadband continues to dominate, with 65% share, compared to telcos’ 35%, the biggest gap since Q3 ’03. The biggest telcos collectively lost over 470K broadband subscribers in 2018, slightly better than the 620K they lost in 2017. The top providers combined now have 98.2 million broadband subscribers.

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  • Research: CTV Ad Impressions More Than Doubled in 2018, Boosting 30-Second Ads

    Extreme Reach has released its Q4 and full year 2018 Video Advertising Benchmarks report, which further reinforces the ascendance of connected TV (CTV) viewing and monetization. Importantly, the ER research is the first I’ve seen that highlights how CTVs are actually helping 30-second ads gain share of impressions vs. ads of other durations. This is a critical development as it helps re-energize TV advertising’s traditional workhorse unit that has been under pressure from all corners.

    First, CTV’s share of video ad impressions jumped to 38% in 2018, up from 16% in 2017. CTV video ads are benefiting from a perfect storm: rapid device adoption, launch of numerous apps by premium content providers, emphasis on ad-supported business models with the exception of a few SVOD or hybrid stalwarts (e.g. Netflix, Amazon, etc.) and heavy investment in CTV ad tech stacks. All of this is leading ad buyers to rapidly embrace CTV as a must-have in their campaigns. (And by the way as just one indicator of how accessible CTVs have become, I just noticed that Amazon is selling its Toshiba Fire TV 32-inch model for just $100 today only. Yes, you read that right.)

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  • Research: Roku Users Have Lower Pay-TV Subscription Levels

    The Diffusion Group has released new data showing that Roku users have the lowest levels of traditional pay-TV subscriptions and the highest level of cord-cutting. According to TDG, 64% of Roku box users and 66% of Roku stick users subscribe to pay-TV. 30% of Roku box users and 26% of Roku stick users are cord-cutters.

    For all adult broadband users, 73% continue to subscribe to pay-TV, with just 21% saying they’re cord-cutters. Other devices measured, including Fire TV, Apple TV and Chromecast all had slightly higher levels of pay-TV subscriptions and similar to lower levels of cord-cutting.

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