Contents contributed and discussions participated by Carri Bugbee
A new report by Magid Advisors surveyed 2,400 consumers and found that cord cutting is not only on the rise, but it's happening much quicker than industry watchers anticipated.
When asked the reasons why they would consider canceling pay TV service, 77 percent of very likely cord cutters cited over-the-top video as a key factor. Half of respondents said they were satisfied with online streaming options like Netflix and Hulu, while 30 percent said pay TV was too expensive.
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Evolution of TV: How TV's Migration to the Cloud Might Upend TV As We Know It - Think w... - 0 views
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Apple TV and iAd - Business Insider - 1 views
Apple TV could be the shot in the arm needed to finally wake up its mostly dormant advertising business iAd.
The ability to target very specific audiences. Apple has a wealth of first-party data about its customers, due to the fact that they register with their real details when they sign up for Apple ID and iTunes.
Apple should be able to tell who was served an ad and what that individual immediately went on to do afterwards: That could include checking out the advertiser's website on their iPad, or tweeting about the brand via their iPhone.
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Apple TV could take away that pain point for advertisers in-between showing an ad and the user actually buying an item: They could make purchases directly from their TV. That's a very appealing call to action for an advertiser.
While The Wall Street Journal reports that Apple has signed up heavy-hitters like CBS, ABC, and Fox, it appears NBC is not involved with the negotiations due to a long running feud with NBC parent company Comcast.
it might well be that the broadcasters still dictate the advertising that will run against their content on Apple TV. Apple might instead have to rely on more "native" forms of advertising rather than pre-rolls and mid-rolls — Like banners, text overlays, or ads that appear on the home screen for instance.
Apple may have another bargaining chip: According to the New York Post, the company is making offers to share detailed customer data with content partners, who could then use this information to target shows to users and advertisers.
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SVOD providers are particularly problematic for broadcasters and their advertising partners, because they hurt ad supported television in a number of ways:
- Consumers with SVOD subscriptions replace time spent watching ad supported television with ad free SVOD watching
- With so much of online video viewing time spent watching ad free, those quality ad opportunities that are available are more expensive to buy
- Consumers get a decreased tolerance for advertising as they grow used to seeing content uninterrupted.
U.S. ad agencies spent 2% less on broadcast TV networks in the 4th quarter of 2014 and 16% less on national cable TV. The company also found that, if you exclude the Olympics, broadcast ad revenue would have declined 2% for the full year (it increased 4.1% when the Olympics are included.)
online originals are growing prodigiously and a good proportion of that inventory will provide advertising opportunities. For example, Alex Carloss, YouTube’s head of original programming, announced the site would be funding more original programming in the same way it did in 2012.
“We expect to see the Add-to-DVR option drive tune-in among consumers, as they are reminded about their favorite shows through websites, banner and mobile ads,” said Viggle president and COO Greg Consiglio, in a statement. “As an added benefit, viewers who check into any TV programs with the Viggle app will earn points that can be redeemed for free movies, TV shows and music at Viggle.com.”