Press Releases : Netflix

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.

Sony PS3 Most “Connected” Game Console

The Diffusion Group — Mon, 12 Apr 2010 02:52:00 GMT

Sony PS3 Most “Connected” Game Console
New TDG Research Finds Four-in-Five PS3 Owners in the U.S. Connect their Console to the Internet

April 12, 2010 (Frisco, Texas) – New research from The Diffusion Group (TDG) finds that one-third of U.S. broadband households now use a game console that is connected to the Internet. The data supports TDG’s long-standing prediction that game consoles are best positioned to become the first mainstream over-the-top (OTT) video delivery platform.

““Today's game consoles are increasingly connected to the Internet not just to enhance their gaming experience but to access the growing variety of online media” notes Michael Greeson, founding partner and director of research at TDG.

Sony's PS3 tops the list with 78% of consoles being connected to the Internet, followed by Microsoft's Xbox 360 at 73%, and Nintendo's Wii at 54%.

Greeson notes that all three console vendors are aware of the additional revenue that connected platforms could generate. While Microsoft and Sony have long invested in building console-affiliated online media portals, Nintendo has held back, content with focusing on the casual gaming market. As announced this morning, however, Wii owners that connect their console to the Internet can now view Netflix Watch Instantly streaming services, assuming they subscribe to the core Netflix service. To give you an idea of the OTT potential of the Wii/Netflix relationship, one-fourth of Wii owners in the U.S. already subscribe to the Netflix DVD-by-mail service, making use of the Netflix streaming service a snap.

This data is from TDG’s latest quantitative primary consumer research which surveyed more than 2,000 U.S. adult broadband users regarding a variety of digital video-related topics and hypothesis testing the notion of ‘TV Everywhere’ or ‘three-screen’ video services. The study also evaluated a number of emerging services and applications that may be included in a multi-screen video service.

For more information about this new research and analysis, please visit www.tdgresearch.com or contact our Research Services Team at 469-287-8050.

Half of Netflix 'Watch Instantly' Users Are Streaming to the TV

The Diffusion Group — Tue, 16 Feb 2010 19:30:00 GMT

Half of Netflix 'Watch Instantly' Users Are Streaming to the TV

New TDG Report Reveals Significant Progress
in Netflix Over-the-Top Efforts, Profiles Early OTT Adopters

February 17, 2010 (Frisco, Texas) – According to a newly published study from TDG – the nation’s leading new media research consultancy – almost two-thirds of Netflix users that subscribe to a home broadband service are now viewing the ‘Watch Instantly’ streaming video service. One-third of broadband-enabled Netflix subscribers view this streaming video exclusively only on their PCs, 8% view the content exclusively on their TVs, and 24% use both their PCs and TVs.

“Netflix is now the archetype for over-the-top (OTT) streaming video services,” notes Michael Greeson, TDG founding partner and director of research. “Not only has Netflix eclipsed its immediate competitors in terms of online DVD rental, but it has quickly become the ‘gold standard’ for new OTT streaming services.”

The implication of TDG’s research is significant: one-half of broadband-enabled ‘Watch Instantly’ users now view streaming video on their TVs, a phenomenon unimaginable just a few years ago. As Greeson points out, this speaks volumes about the maturation of streaming video technologies that, until recently, had delivered an inconsistent experience that left regular TV viewers wanting.

Greeson identifies several factors critical to this early success:

Netflix built a sizeable base of loyal service subscribers prior to launching its streaming service.

These subscribers had already demonstrated an ability to think beyond traditional content distribution schemes (e.g., renting a DVD at the local video store). In other words, they were predisposed to try novel, unproven methods of video delivery (in this case, online DVD rental).

Netflix was able to establish proof of concept by delivering streaming video to the PC before it tackled the more costly and uncertain issue of TV delivery (a market space littered with the corpses of well-intentioned efforts).

Though initially dependent upon a dedicated set-top box (Roku), Netflix moved aggressively to embed its streaming solution in a wide array of traditional CE platforms, thus reducing (if not eliminating) the consumer risk associated with trying an unfamiliar and unproven delivery scheme.

As Greeson explains, “In combination, these factors laid the groundwork upon which Netflix could build a successful OTT video distribution business. And that’s precisely what it has done.”

TDG’s latest report, Netflix Video Streamers – A Consumer Snapshot, offers an in-depth look into this first wave of OTT users, profiling the segment by key demographics, CE ownership, broadband and PayTV subscriptions and use, mobile video proclivities, and online video behavior. For more information about this new report, please contact Greg Stockard at gs@tdgresearch.com or (469) 287-8040.

TDG Releases New White Paper on the Threats and Opportunities of Online Video for PayTV Operators

The Diffusion Group — Tue, 19 May 2009 15:47:00 GMT

According to a new white paper from The Diffusion Group, the nation’s leading research advisory for the broadband media ecosystem, PayTV operators such as cable and satellite companies must work aggressively to both protect against emerging Over-the-Top TV providers and leverage their extensive content relationships and entertainment-oriented brands to establish a strong online presence...and soon....(read more)

TV Service Providers Must Move Aggressively to Expand and Incorporate Online Video Offerings

The Diffusion Group — Sun, 05 Apr 2009 03:24:00 GMT

According to The Diffusion Group, the nation's leading research advisory for the broadband video ecosystem, PayTV operators must execute three specific tactics in order to defend against emerging competitors and take full advantage of their unique position in the video value chain. ...(read more)

Direct-Mail DVD Subscribers Top 12% of US Internet Households, Offer Insight into Emerging "Digitally Inclined" Consumers

The Diffusion Group — Tue, 05 Apr 2005 02:21:00 GMT

Direct-mail DVD subscription services such as Netflix are now used by more 4.3 million US Internet households, about 12% of the 36 million US Internet households. According to a new report from research and strategic marketing firm The Diffusion Group, these households constitute a fertile target market for vendors pushing new digital devices and services....(read more)