[opendtv] Wired: As Online Viewing Soars, Internet TV Will Soon Be the Only TV

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Wed, 31 Dec 2014 23:40:41 +0000

This is an article for Craig, who has *way* belatedly taken up the banner for 
how the Internet is unable to handle TV signals. It also has other gems. Here 
are a few examples:

"Researchers tracked 165 online video views and 1.53 billion logins over a 
year, and they found that total TV viewing over the internet grew by 388 
percent in mid-2014 compared to the same time a year earlier-a 
near-quintupling. And the increase is more than just a few diehards 
binge-watching: the number of unique viewers well more than doubled, growing 
146 percent year-over-year."

Near quintupling in a year, and somehow the Internet and ISP nets have kept 
pace. That's what it takes, Craig. Keeping up with the increase in demand, as 
it occurs. Not "years and years," as you say, as if to say that Internet TV is 
not viable yet.

"Eventually cable will follow bunny ears into the basement of dead technology, 
and online TV will be called something else: plain old TV."

"Because the Adobe report covers TV-watching by viewers who are paying for 
cable, it's hard to read the results as a sign that more cord-cutting is 
coming. But getting viewers habituated to the internet way of watching TV could 
hasten a less aggregated future, says Gaffney, one where customers may prefer 
the more personalized service of an HBO-only login, for example, versus one for 
their entire cable package."

So in other words, this near quintupling ONLY considers MVPD subscribers, not 
all the cord cutters and cord nevers who have taken up Internet TV.

I don't agree with this, though:

"The big loser would seem to be broadcast TV, since the traditional way the 
broadcast networks spread the news about their new shows is on their networks. 
For people watching TV online, those are ads they'll never see."

First, it all depends on how you watch TV online. I get to see those ads just 
as much online as I would OTA. And too, it's not "broadcasters" the author is 
talking about here, but the TV networks, if anything. Broadcasters may lose out 
in the sense that they won't have a TV-content-distribution role to play, 
unless they get busy creating their place.

Bert

-------------------------------------------------------
http://www.wired.com/2014/10/online-viewing-soars-internet-tv-will-tv/

As Online Viewing Soars, Internet TV Will Soon Be the Only TV
By Marcus Wohlsen
10.20.14 10:00 pm

More people are watching TV online than ever-a lot more. Viewers may not be 
cutting the cable cord altogether, but growth in the number who want to watch 
TV over a different set of pipes is surging, according to a new report from 
Adobe. If anyone was still wondering why HBO and CBS plan to offer an 
online-only option, the trend is clear: the internet is where people want to 
watch. In more and more homes, online TV isn't a geeky novelty, a sidelight to 
the traditional version. It's just what TV looks like now.

Adobe is in a position to know because its software runs the platform that 
nearly all US cable customers use to log into the online versions of their 
subscriptions, according to the company. Researchers tracked 165 online video 
views and 1.53 billion logins over a year, and they found that total TV viewing 
over the internet grew by 388 percent in mid-2014 compared to the same time a 
year earlier-a near-quintupling. And the increase is more than just a few 
diehards binge-watching: the number of unique viewers well more than doubled, 
growing 146 percent year-over-year. 

Eventually cable will follow bunny ears into the basement of dead technology, 
and online TV will be called something else: plain old TV.

According to analyst Tamara Gaffney, three factors are drove this growth: more 
apps and sites for watching, more content to watch on those apps and sites, and 
the World Cup. Sports act as as kind of "appetizer" whetting viewers' appetites 
for the flexibility and breadth of online TV, Gaffney says. The World Cup was 
an especially strong lure because the internet was the only way to watch so 
many games that traditional TV lacked the bandwidth to show. But Gaffney said 
once viewers came for sports, they stayed for everything else.

"Households generally connect because of sports," she says. "But then when they 
start to use online television, they start to branch out."

Back to the Big Screen

According to Adobe, viewers have branched out so much that, for the first time, 
viewers watched more movies online than sports. The average was 4.5 movies per 
month, Adobe says, versus two a year ago. Viewing of "episodic television" over 
the internet also saw a sharp increase. The jump is all the more remarkable 
since Adobe's survey doesn't include the main streaming services: Netflix, 
Amazon Prime, and Hulu. In other words, many people still paying for cable are 
less interested in watching TV in the cable way and more in the way Netflix has 
led viewers to come to expect.

"When you want to really binge-view something you didn't know you wanted to 
watch until the season was over, you're going to turn to the online option," 
Gaffney says.

The turn toward online TV, however, hasn't entirely meant a turn away from the 
television itself. In fact, the gadgets that showed the greatest increase in 
their share of use for internet-TV watching were gaming consoles and 
over-the-top devices such as Apple TV and Roku. Where a year ago they accounted 
for just 3 percent of online TV viewing, they now account for 10 percent. These 
devices all pipe TV from the internet to the big screen, and the one thing 
viewers are still most eager to watch there is sports. 

"During the Olympics and World Cup, people wanted to watch on the big screens 
in their living room," Gaffney says. 

Broadcast Bottoms Out

But unlike traditional TV, the appeal of the online version is that it doesn't 
require viewers to commit to a single piece of hardware. More than half (51 
percent) of all online TV viewing happens on iOS apps, according to Adobe's 
figures. And Gaffney believes the iPhone 6 and 6 Plus' larger screens will only 
cement Apple's place as the platform of choice for online TV. Apple's timing 
appears to be good as smartphones, driven by the embrace of phablets, start to 
surpass tablets as the online video-viewing device of choice, according to 
Adobe's findings.

Because the Adobe report covers TV-watching by viewers who are paying for 
cable, it's hard to read the results as a sign that more cord-cutting is 
coming. But getting viewers habituated to the internet way of watching TV could 
hasten a less aggregated future, says Gaffney, one where customers may prefer 
the more personalized service of an HBO-only login, for example, versus one for 
their entire cable package. 

The big loser would seem to be broadcast TV, since the traditional way the 
broadcast networks spread the news about their new shows is on their networks. 
For people watching TV online, those are ads they'll never see. What they're 
more likely to see is chatter on social media-if a new show generates enough 
buzz, wannabe viewers can track down old episodes online and binge-watch to 
catch up. More and more, this is the way TV is now, and there's no reason the 
trend will stop. Eventually cable will follow bunny ears into the basement of 
dead technology, and online TV will be called something else: plain old TV.

 
 
----------------------------------------------------------------------
You can UNSUBSCRIBE from the OpenDTV list in two ways:

- Using the UNSUBSCRIBE command in your user configuration settings at 
FreeLists.org 

- By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word 
unsubscribe in the subject line.

Other related posts: