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The TV App Revolution Authenticated Channel Apps And TVE Strategy

Report by Tim Mulligan
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The 20,000 Foot View

Pay-TV is under assault from a pincer movement, on the one hand losing subscribers to cord cutting and on the other growth slowing due to cord-nevers (Digital Natives with no interest in subscribing to traditional pay-TV).  Netflix, Amazon, Hulu and others welcome these consumers with open arms. The result is a steady erosion of audience share for traditional TV operators which in turn disrupts the TV networks that rely on them for distribution. TV Everywhere (TVE) strategy is the pay-TV industry’s response to the streaming insurgents and has begotten a host of channel apps.  TVE is still work in progress, racked by licensing tensions that could ultimately see studios and networks using it as a means to bypass TV operators in order to sell direct to the end user.

Key Findings

  • In            2015            pay-TV companies lost            subscribers while            video services added            million new           
  •            of US consumers pay for Subscription Video On Demand (SVOD), rising to            of            year olds 
  • The            year            age group is the fastest            for SVOD adoption
  • SVOD has            appeal,            are female compared to            music subscriptions
  • TVE describes            increasingly diverse mix of strategies            technologies
  • Operators and            / studios have differing, and            conflicting, TVE objectives
  • Channel apps            what a channel represents
  • Google, Facebook            Apple could all emerge as            generation operators, re-bundling individual channel           

Companies mentioned in this report: A+E Networks, ABC, Apple, Amazon, AT&T, CBS, Comcast, Direct TV, Dish, Fox Networks, Foxtel, Google, HBO, Hulu, NBC, Netflix, Sky, TED, Telenet, Time Warner Cable, the Huffington Post, The Walt Disney Company, The Weather Company, Vevo, Xfinity

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