TDG Research

Prelude to IBC: Hot Trends from Tel Aviv

Andy Tarczon — Wed, 01 Sep 2010 15:36:00 GMT

Last week, I accepted an invitation to attend a media delegation hosted by the Israeli Export and International Cooperation Institute in conjunction with the Ministry of Trade. The goal was to present Israel’s new media efforts as technology represents about 25% of their $8 billion in exports. Through a whirlwind three days in blistering hot and humid Tel Aviv, I met with 20 companies all representing certain aspects of the new media industry. Some were pertaining to the markets TDG examines; others, not so much. ...(read more)

Good News: Mobile PayTV Uptake to Double by 2013, Bad News: To Double from Just 1.6M to 3.3M Subscribers

The Diffusion Group — Tue, 31 Aug 2010 13:27:00 GMT

Good News: Mobile PayTV Uptake to Double by 2013
Bad News: To Double from Just 1.6M to 3.3M Subscribers

New TDG Report Identifies Absence of Bundles, Pricey Subscriptions, Lack of
Hardware as Primary Culprits in Mobile TV’s Lackluster Performance

August 31, 2010 (Frisco, TX) – Despite growing awareness of Mobile TV services, operators have fallen short in their efforts to convince consumers of its worth. TDG’s latest report, The Possibilities and Challenges for Mobile TV, sheds light on this promising but troubled market space; identifying and exploring the challenges Mobile TV faces, as well as how best to address them.

According to Brian Platts, primary author of the report and contributing analyst for TDG, perhaps most alarming was “…how dramatically the initial euphoria surrounding Mobile TV has waned.” A telecommunications professional with a deep knowledge of the North American market, Platts noted that “not only are there far fewer mobile TV subscribers than one would think, but short-term prospects do not look much brighter.”

In terms of the factors contributing to poor demand, Platts points first to high subscription prices and poor value perception. “Consumers fail to see the value of Mobile TV in general, or they fail to see sufficient value at these prices. Either way, it is keeping them on the sideline.”

To overcome this barrier, Platts argues PayTV operators should bundle Mobile TV services with their current video offerings; creating a legitimate multi-screen TV service at a single “bundled” price. Such multi-screen bundled-service positioning make even more sense when one considers that the operators preferred for Mobile TV service happen to be the very cable or satellite TV operators with which many already have a relationship.

Another demand inhibitor is the fact that very few handsets feature native support for Over-the-Air (OTA) broadcast Mobile TV. As Platts notes, “OEMs already pack these devices with a wide range of features, including support for multiple wireless networks, leaving very little physical or economic room to add a mobile TV receiver. As long as demand for Mobile TV remains soft, OEMs will forgo such support on all but their most expensive units.”

The bottom line? Despite these limitations, TDG expects Mobile PayTV subscriptions will double over the next three years, from 1.6 million today to 3.3 million in 2013. ”Yes, there is a growing market for Mobile TV,” says Platts. “But demand for Mobile TV is dependent on extending or expanding the fixed TV relationship, and as such is tied to the shift toward integrated multi-screen TV services in general. That’s the future of TV."

For more information regarding TDG’s new research and detailed analyses on Mobile TV, please visit www.tdgresearch.com or contact our Research Services Team at 469-287-8050.

About TDG: TDG provides actionable intelligence on the quantum shifts impacting consumer technology and media behaviors. Since 2004, our market research and advisory services have helped technology vendors, media companies, and service providers understand how consumers access, navigate, distribute, and consume broadband media - whenever and wherever they may be.

Google Goes to the Guggenheim to Take YouTube Fare Upmarket

The Diffusion Group — Mon, 23 Aug 2010 20:05:00 GMT

Google Goes to the Guggenheim to Take YouTube Fare Upmarket
BusinessWeek | Douglas MacMillan | August 23, 2010

Clearleap, RCDb Clear Way for Cable VOD on Blu-ray

The Diffusion Group — Tue, 17 Aug 2010 22:25:00 GMT

Clearleap, RCDb Clear Way for Cable VOD on Blu-ray
Home Media Magazine | Chris Tribbey | August 18, 2010

Move Over Google TV, Here Come Cox and TiVo

Colin Dixon — Fri, 13 Aug 2010 19:13:00 GMT

TiVo announced Thursday that Cox Communications would fully support and promote the DVR pioneers Premiere box and service throughout its cable system. The deal is a first for TiVo because it fully integrates Cox’ VoD library into the TiVo interface. It’s also a first for North American cable; Cox is the first company to make its full VoD library available through a retail product. But there’s a lot more to this deal than meets the eye. For Cox, it marks a radical departure from standard cable practices; a move that brings with it substantial risks as well as the potential for great rewards. ...(read more)

Major Studios Sign on to Netflix Streaming

The Diffusion Group — Wed, 11 Aug 2010 16:29:00 GMT

Major Studios Sign on to Netflix Streaming
SF Gate | Benny Evangelista | August 11, 2010

Pay-TV Operators Add VOD Access Through Web-connected Blu-ray Players

The Diffusion Group — Wed, 11 Aug 2010 16:27:00 GMT

Pay-TV Operators Add VOD Access Through Web-connected Blu-ray Players
FierceIPTV | Jim O'Neill | August 11, 2010

Google, Verizon and the Netflix Business Model

Colin Dixon — Wed, 11 Aug 2010 15:43:00 GMT

Three independent but related announcements on Monday reveal the power of the Internet to reinvent distribution. They also highlight the importance of net neutrality in maintaining the delicate balance that currently sustains the business models of some of the biggest online players. Google and Verizon talked about their plan for Net Neutrality, Netflix continued to shore up its streaming catalog and AT&T announced U-verse TV-Everywhere content to the mobile phone. All three announcements are interesting in themselves. But taken together they illustrate how even minor changes to the status quo could destroy the most robust of online business models....(read more)

Supplement vs Supplant: OTT business models at the TV

Andy Tarczon — Wed, 28 Jul 2010 21:49:00 GMT

When it comes to delivering Over the Top Video to the television, there are two models that encompass virtually every approach. Those that outright replace (supplant) paytv service and those that provide additional content to augment (supplement) paytv. If we look at some of the winners and the failures of the recent OTT market, there is evidence which model will dominate in the short term. ...(read more)

Study: Blu-ray Renters Rip Too

The Diffusion Group — Tue, 27 Jul 2010 16:45:00 GMT

Study: Blu-ray Renters Rip Too
Home Media Magazine | Chris Tribbey | July 27, 2010

HDTV Almanac - Willing to Pay for Internet TV

The Diffusion Group — Mon, 19 Jul 2010 18:49:00 GMT

HDTV Almanac - Willing to Pay for Internet TV
HDTV Magazine | Alfred Poor | July 19, 2010

Have Cable Subscribers Got The Stomach For TV Everywhere Fees?

The Diffusion Group — Sat, 17 Jul 2010 17:48:00 GMT

Have Cable Subscribers Got The Stomach For TV Everywhere Fees?
WorldTVPC | July 17, 2010

What Does the Future Hold for 'TV Everywhere?'

The Diffusion Group — Thu, 15 Jul 2010 18:53:00 GMT

What Does the Future Hold for 'TV Everywhere?'
WebNewser | Alex Weprin | July 15, 2010

Report: Customers will pony up $ for TV Everywhere

The Diffusion Group — Thu, 15 Jul 2010 17:37:00 GMT

Report: Customers will pony up $ for TV Everywhere
CED Magazine | Mike Robuck | July 15, 2010

Would subscribers pay for TV Everywhere?

The Diffusion Group — Thu, 15 Jul 2010 17:29:00 GMT

Would subscribers pay for TV Everywhere?
Connected Planet | Dan O'Shea | July 15, 2010

TDG Releases New Report on Early Demand for ‘TV Everywhere’ Services

The Diffusion Group — Wed, 14 Jul 2010 06:48:00 GMT

TDG Releases New Report on Early Demand for ‘TV Everywhere’ Services
New Study Distinguishes Between and Profiles Two Segments of Early TVE Adopters

July 14, 2010 (Frisco, TX) – A new report from TDG suggests that the era of multi-screen TV delivery is upon us, having rapidly evolved from a “hot topic” to a legitimate and essential market strategy. According to the new research, 60% of adult broadband users (about 95 million consumers) are enthusiastic about TVE services, while 34% (about 54 million) are willing to pay at least $5 extra per month to enjoy such access.

“Current TVE-type offerings remain relatively fledging services with little in the way of compelling content,” notes Michael Greeson, TDG founding partner and author of the new report. “That’s to be expected from a service breaking new ground and no doubt feeds operator belief that these services should be viewed as a free value-added service to existing residential TV subscribers as opposed to a new service capable of generating additional revenue.”

As time passes, Greeson expects incumbents will become more likely to “pull a Hulu” – that is, wean customers into using the free site until demand and breadth of content can support the introduction of a premium tier worthy of an additional monthly fee. New video leader, Netflix, is expected to follow Hulu’s lead and introduce a premium streaming tier that features high-value Hollywood content. Incumbent PayTV operators will closely watching how this experiment plays out.

According to TDG’s data, consumers would respond positively to a TVE offering that included access to their favorite TV content, all on demand. For example:

39% of PayTV subscribers would pay $5 or more each month to access their favorite TV programs on their PCs.

Among this 39%, about half would pay $5 extra each month, about one-third would pay an extra $10 per month, and about one-fifth would pay more than $15 per month.

As TDG has stated on numerous occasions, demand is such that by failing to charge an additional fee for multi-screen access, operators could be leaving tens of millions of dollars on the table.

Then again, the operator rationale for introducing TVE services (that is, to reduce churn and fend of emerging new video threats) is validated by this same research. Among the segments profiled, the availability of multiscreen TV services is likely to deter home TV cancellation among four in ten would-be cord cutters.

TDG’s new report, Early Demand for TVE Services – A Consumer Snapshot, mines recent primary research focused on the video viewing behavior of adult broadband users across multiple screens including TVs, PCs, and mobile devices. The report sizes the early market for TVE-like services, and profiles two key early market segments, Enthusiasts and Optimals. For more information about this new report, please contact our Research Services Team at 469-287-8050.

Netgear Can't Set TiVo Free

The Diffusion Group — Fri, 09 Jul 2010 21:09:00 GMT

Netgear Can't Set TiVo Free
Light Reading Cable | Craig Matsumoto | July 9, 2010

An Opinion on ‘The Minionator’

Andy Tarczon — Fri, 09 Jul 2010 16:02:00 GMT

Thursday evening I had the dual chance to both test out Best Buy’s Movie Mode app at a screening of ‘Despicable Me’ and be a hero to my six-year-old who could see this highly anticipated movie before any of his friends. ...(read more)

Netflix Breaking Through the PayTV Window

Colin Dixon — Wed, 07 Jul 2010 14:37:00 GMT

Further evidence that Netflix is shaking off the shackles of a DVD rental business emerged Tuesday. Relativity Media, producers of such titles as “Get Him to the Greek” and “Robin Hood”, will allow Netflix to stream first-run theatrical films at the same time as HBO and Showtime. This agreement is good for Netflix as it reduces the expense of shipping a physical DVD to subscriber homes. But it’s also good for subscribers as they no longer must wait 2 days or more to receive the DVD. They can stream it immediately to the host of devices that run the Netflix client. ...(read more)

Move Networks Lays Off Workforce, Looks for Buyer

The Diffusion Group — Thu, 01 Jul 2010 18:37:00 GMT

Move Networks lays off workforce, looks for buyer
FierceIPTV | Jim O'Neill | July 1, 2010

Who's down with OTT? 2014.

The Diffusion Group — Tue, 29 Jun 2010 18:32:00 GMT

Who's down with OTT? 2014.
CedMagazine.com | Traci Patterson | June 29, 2010

Move Networks Comes to a Standstill

Andy Tarczon — Tue, 29 Jun 2010 05:53:00 GMT

Today saw the loss of another OTT player as Move Networks, the pioneer of adaptive bitrate technology halted operations. Most of the remaining employees were released this morning. Few will be surprised by the announcement - Move’s challenges have been well discussed since last year’s big management shakeup....(read more)

DigitalMedia Conference and Audience Poll Shocker!

The Diffusion Group — Fri, 25 Jun 2010 17:13:00 GMT

Kelly Day, EVP & GM, Digital Media at Discovery, gave the keynote this morning and gave a fascinating insight into the role of brand in the online world. She told the story of how Discovery purchased HowStuffWorks.com. HowStuffWorks had a robust section devoted to recipes which Discovery repurposed under the TLC brand. They brought in video featuring Buddy Valastro as “The Sauce Boss”, and Hunts as the sponsor for the site. Within a month the company saw 42% increase in uniques growing to 100% within 3 months. Search referrals went up 34% and engagement rocketed 100%. ...(read more)

Comcast's thePlatform extends reach to OTT, IP devices

The Diffusion Group — Wed, 23 Jun 2010 19:18:00 GMT

Comcast's thePlatform extends reach to OTT, IP devices
CedMagazine.com | Mike Robuck | June 23, 2010

thePlatform Expands Video Publishing Support for Wide Range of “Over-the-Top” Services

The Diffusion Group — Wed, 23 Jun 2010 19:15:00 GMT

thePlatform Expands Video Publishing Support for Wide Range of “Over-the-Top” Services
thePlatform | June 23, 2010

thePlatform Broadens OTT Content Distribution

The Diffusion Group — Wed, 23 Jun 2010 19:10:00 GMT

thePlatform broadens OTT content distribution
Connected Planet | Dan O'Shea | June 23, 2010

Cord Cutting Gets More Press, This Time Debunking the 'Myth,' Sort-of

The Diffusion Group — Tue, 22 Jun 2010 18:55:00 GMT

Cord cutting gets MORE press, this time debunking the 'myth,' sort-of
FierceIPTV | Jim O'Neill | June 22, 2010

Why Google TV Can Succeed In Spite of The Cable Companies

Bill Niemeyer — Mon, 21 Jun 2010 13:45:00 GMT

The announcement of Google TV has certainly got a lot of attention. I think it could (maybe) gain a good deal of consumer, developer, advertiser and network traction. Google TV could even be a Game Changer. While my ten years in the advanced TV/video business has taught me to be a curmudgeon about "Net Meets TV" efforts and there are many "devils in the details" that will affect chances for success, I find myself being somewhat optimistic about Google TV. Welcome to 2010 - (some) things have changed. With many Google TV topics to discuss, I'm going to focus on one here - can Google TV get market traction without any cable, satellite or telco IPTV operator cooperation beyond the deal they now have with DISH? ...(read more)

Rovi Launches Advertising Network With Broad Reach Into Multiple Platforms

The Diffusion Group — Wed, 16 Jun 2010 20:32:00 GMT

Rovi Launches Advertising Network With Broad Reach Into Multiple Platforms
Globe Newswire | June 16, 2010

Google TV Will Lag Startups

The Diffusion Group — Thu, 03 Jun 2010 19:07:00 GMT

Google TV Will Lag Startups
INVESTOR'S BUSINESS DAILY | Brian Deagon | June 3, 2010