SeaWell Blog

Analytics Key to the Progress of TV Everywhere

Posted by Michael Coulson on Jul 17, 2013 11:36:00 AM

  

When it comes to the promise of “TV Everywhere” –the ability to view content anytime, anywhere on your smartphone or tablet—cable and satellite providers have been slower to fully deliver than they or their customers might want. So what exactly is the hold-up? 

Analytics and Ad Revenue

Part of the problem, according to a recent article from the Associated Press, centers on the lack of analytics and the subsequent impact on ad revenue. 

The piece, written after The Cable Show 2013 convention in June, cites the fact that “…audience measurement firms have been slow to count viewing on mobile devices, so advertisers have been reluctant to pay as much for commercials on phones and tablets compared with television sets.”

Ron Lamprecht, NBCUniversal's executive vice president for digital distribution, is quoted as saying during a panel at the industry conference "We either don't get any credit at all, or if we do get credit it's at a fraction of what we would have gotten if they first watched it live on the TV."

This ad revenue gap is clearly a problem for Networks and pay TV providers. They aren't able to offer as many shows online because as providers they are reluctant to increase their spend for rights without knowing they can make their money back. Viewers, for their part, can't reliably find the content they want online and therefore don’t use the service as much. 

Determining the Value of Audiences

Obviously, this classic chicken and egg scenario is having a negative impact on the spread of TV everywhere. Bill Niemeyer, senior analyst with research firm The Diffusion Group, thinks the delay is mostly the result of networks and content owners haggling over the value of online audiences. While this is undoubtedly part of the problem, the real fear for service providers is the impact IP delivery to any screen will have on established business models (Needham & Co. claim that unbundling could cost 50% loss in current revenues – as reported in VideoNuze).

The fact is, the longer service providers hesitate to entice and shore up multiscreen viewers, the more impact new entrants will have. The provider that gets out front with a quality live and on demand multiscreen service – one that tracks each and every subscriber and is able to target and accurately report on advertising consumption – will stand a greater chance of enduring the change that is already underway.

Next Steps

Download the Spectrum Overview for high-level details on how we insert targeted advertising and capture per session statistics

Get a demo to see Spectrum in action, and hear first-hand how Spectrum was designed to give service providers more control over ABR delivery, analytics and ad revenue

Read the full AP story here

Get our whitepaper--Making the Case for Multiscreen 2.0

Topics: multiscreen, ad insertion, multi-platform, TV Everywhere, content providers, metrics, analytics

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