A Parks Associates Whitepaper Developed forA Parks Associates Whitepaper Developed forA Parks Associates Whitepaper Developed for

Enabling Connected Media Experiences: Mastering Video Delivery, User Engagement, and Monetization Strategies

Enabling Connected Media Experiences: Mastering Video Delivery, User Engagement, and Monetization Strategies

2

Consumers increasingly use

• SMAR TPHONES

• TAB L E T S

• SMAR T T V S

• GAME CONSOL E S

• D I G I TA L MED I A R EC E I V E R S

platformstoconsume all types of media content…

including VIDEO .

TODAY

Executive OverviewThis whitepaper assesses the impact of connected device ownership

andmedia use on cross-platform video delivery, discovery, andmon-

etizationstrategies.Themediamarketplace isevolvingdueto Internet

connectivity and changing consumer behavior. Content owners and

serviceprovidersmustfindnewstrategiestomanagevideodeliveryand

discoverywhileimprovingconsumerengagementtowardtheultimate

goalofsuccessfulmonetization.

TOPICS ADDRESSED IN THIS WHITEPAPER:• The Hyperconnected Consumer

• Capturing Consumer Attention and Forming a Bond

• Impact of Social Networking

• The Quest to Deliver Quality User Experiences

The Hyperconnected Consumer

Consumers are more connected to media content and services than ever before.

RatesofInternet-connecteddeviceadoptioncontinuetorise,andservice

andcontentaccessibilityanytime, anywhere isan increasinglycommon

distributionrequirementduetoconsumerdemand.

1Q 2012

1Q 2013

©ParksAssociates

grewto 66%smartphone ownership

tablet ownership is48%

werepresentin

57% HOUSEHOLDS

smartphonesOFU.S.BROADBAND

©ParksAssociates

Connected game consoles arepresentin 63%BROADBANDHOUSEHOLDS

OFU.S.

©ParksAssociates

New video distributiondevices,categorizedasdigitalmediareceivers,includingApple TV &Roku,haveslowlypenetratedthemarketwithanownershiplevelof 14%

Th

e h

yp

erco

nn

ecte

d co

nsu

me

r

©ParksA

ssociates

QUICK STATS

tabletswerepresentin

31% HOUSEHOLDSOFU.S.BROADBAND

©ParksAssociates

From 2010 to 2013

smart TV ownershiprosefrom 17%to26%

3www.parksassociates.com|Allrightsreserved.

Enabling Connected Media Experiences: Mastering Video Delivery, User Engagement, & Monetization Strategies

*Smartphonesandtabletsaremeasuredinnumberofusersbecausethesedevicesareuniquetoindividualvideoviewers.SmartTVsaremeasuredbynumberofhouseholdsbecausethesedevicesaregenerallysharedbymorethanonehouseholdmember.

Connected Device Adoption Trends

35%

© Parks Associates

1Q 2009

1Q 2009 - 1Q 2013

1Q 2010 1Q 2011 1Q 2012 1Q 2013

70%

0%

U.S. Broadband Households

Tablet

Smartphone

Smart TV*

Game Console

Digital MediaReceiver

Figure1

Smartphone users*inNorth Americawill increase from nearly

231 million in 2013 to

300 million by 2017

from 2013 to 2014, 61% Tablet userswill increase by

ACCORDINGTOPARKSASSOCIATESFORECASTS

with healthy ownership rates projected through 2017.

Tablets users inNorth Americawill exceed

244 million by 2017.©ParksAssociates

4

OFTHE

136 million TV households in North America in 2013

32 MILLION,

23% ofallTVhouseholds.

will be insmart TVs

©Parks Associates

MIL

LIO

NS

120

80

North American Smartphone and Tablet Users

U.S. and Canada (2013-2017)IN MILLIONS

© Parks Associates

2013 2014 2015 2016 2017

360

240

120

0

Smartphone Users Tablet Users

61%INCREASE

Connected TV Households in North America U.S. and Canada (2013-2017)

IN MILLIONS

© Parks Associates

2013 2014 2015 2016 2017

160

40

0

Smart TV HouseholdsGame Console Households

TV Households

MIL

LIO

NS

BY

DE

VIC

E

Figure2

ThegrowthofsmartTVsinTVhouseholdsaddsanewlevelofcomplexityforcontentownersandserviceprovidersasthesedevicesenablenewchannelsforvideodeliveryandconsumeruse.

Internetconnectivitypairedwithvideodistributionpartnershipsrepositionsgame

consolesasmorethanagamingdevice.

While gamers primarily use these systems to play games, non-gaming video usage patterns are forming.

By 2017—53% of TV households will own a smart TV set.

©ParksAssociates

57 MILLIONaconnected game console byyear-end2013,

NorthAmericanTVhouseholdswillhave

8 4 MILLIONrisingtonearly by2017 .

or

5www.parksassociates.com|Allrightsreserved.

Enabling Connected Media Experiences: Mastering Video Delivery, User Engagement, & Monetization Strategies

Despite industrydebate regarding the impactof alternativedeviceplatforms (desktop, laptop, smartphone,or tablet) on video

deliveryandconsumptionbehavior,consumers have yet to turn away from the traditional viewing environment.

ThesefindingsindicatethatTVviewersspendmoretimewatchingviaaTVsetbecausetheywatchlong-formvideoonthatproduct.

Usersspendlesstime,onetofivehourseachweek,watchingvideosonasmartphoneortabletbecauseit ismoreconduciveto

short-formvideoviewing.

Weekly Time Spent Watching TV/Video by Device Platform(AmongusersofdeviceplatformsinU.S.broadbandhouseholds)

1-5 hours 6-10 hours More than 10 hours

LiveTVshowonaTVset 29% 19% 41%

LiveTVshowsviaacomputer 20% 5% 7%

Videowebsitesviaacomputer 52% 12% 12%

Videowebsites/appsonasmartphone 59% 7% 4%

Videowebsites/appsonatablet 62% 14% 10%

% of Viewers Increasing Time Spent Watching Video

(AmongvideoviewersbydeviceinU.S.broadbandhouseholds)

Tablet 44%

Smartphone 32%

Computer 32%

TVset 25%

Evenso,video viewing outside of conventional channels is growing.

Source:Parks Associates, Video-on-Demand: The Road to Revenues©Parks Associates

Source:Parks Associates, Video-on-Demand: The Road to Revenues©Parks Associates

Figure3

Figure4

©Parks A

ssociates

OVER ONE-THIRD of computer, smartphone, & tablet owners report spending more time, in general, watching video on these devices than one year ago.

Consumers still spend more time, in hours, watching TV shows and movies on a TV set than on a computer or mobile device. In sheer volume, consumers spend more time each week watching live TV broadcasts on a TV set than online shows or content.

6

Content owners and distributors are challenged with formulating

effective cross-platform video delivery and discovery approaches—

onesthatreachandengageusersatany touch point.Mediacompanies

andtheirdistributorpartnersmustidentifyanddeployscalableanden-

gagingmethodstoextendtheirbrandorservicepresencetoconnected

devices,inordertoreachqualifiedaudiencesegments.

Anotherchallengeisovercomingcomplexitiesor

inconveniencesrelatedtoconsumercontentdiscoverability.

Theinabilitytofinddesiredcontentamidstmultipledeliverychannelsand

distributionsourceshindersstakeholderabilitytoearnrevenues.Gaining

the ability to distribute more video and interactivity to connected

devices via easy discoverability improves promotional endeavors and

revenue potential forcontentownersandTVserviceprovidersalike.

Whenassessinggenerationaldifferences,thedatarevealTV viewers under the age of 30 years old are 1.5 times more likely to

conduct second-screen activitiesthangeneralaudiences.

Capturing Consumer Attention and Forming a Bond

Internetconnectivityhasforeverchangedhowconsumersviewandinteractwithbroadcast&cableTVprograms.

Today, consumers can supplement, or even change altogether, the ways in which they view their favorite TV shows.Time-

shiftingorplace-shiftingcontentiscommonplacefollowingtheadventofDVRs,on-demandvideoservices,andsecond-screen

engagement;obtainingreal-timeTVprogramorproductorservicedetailsisanewconsumerbehavior.

Today, innovative approaches are emerging that tie

consumers’ individual viewing preferencestovideocontent.

Second-screen Activities While Watching TV(Among smartphone & tablet users in U.S. broadband households)

%ConductingActivityDailytoMonthly

General Population Viewers aged 18 to 30

GetadditionalinformationrelatedtotheTVprogramornetwork 27% 38%

ReadlivetweetsorcommentsabouttheTVprogram 19% 30%

WatchvideosrelatedtotheTVprogramornetwork 19% 32%

LoginthatyouarewatchingaTVprogram 19% 27%

ShopformusicormerchandiserelatedtotheTVprogramornetwork 16% 25%

Source:Parks Associates, Video-on-Demand: The Road to Revenues|©Parks Associates Figure5

FOR INSTANCE consumersaregrowingmoreaccustomedtousingasmartphone or tabletdevicewhile watching a TV programon a TV set.

Figure 5 highlights new trends in second-screen engagement amongsmartphoneandtabletusers.

Twitter Impacts the Incremental Reach of TV Shows

8.5%increaseinTwitteruse=1%increaseinTVratingsforpremiereTVprograms

4.2%increaseinTwitteruse=1%increaseinTVratingsformidseasonTVshows

14%increaseinTwitteruse=1%increaseinTVratingsforpremiereTVprograms

8.4%increaseinTwitteruse=1%increaseinTVratingsformidseasonTVshows

Premiere TV Programs

Premiere TV ProgramsADULTS

ADULTS Midseason TV Shows

Midseason TV Shows

8.5% 1%

14% 1%

4.2% 1%

8.4% 1%

ages

18-34

ages

35-49

Source:SocialGuide2013 Twitter/TV Rating Correlation Study,2013|©SocialGuide,aNielsenCompany Graphic:©Parks Associates

Impact of Social Networking Notonlyareconsumersusingtheirsmartphoneor tablet to interactwithprogramswhilewatch-

ingTV, their social network interactions positively influenceTV tune-in and program ratings. A

SocialGuide study finds Twitter usage enhances TV program ratings specifically among young

second-screenusers.

The Quest to Deliver Quality User Experiences

AsInternetconnectivitystandardizesacrossmultipleCEdevices,consumerswillacceleratetheirviewingofvideocontentoutsideoftraditionalchannels.

ThisphenomenonwillnotsubsideandinfactwillonlygrowmoreproblematicasmoreInternet-connecteddevicespenetratethe

marketandconsumersfindnewwaystoaccesscontentontheirownterms.Alongsidesecuringadequatedevicescale,content

ownersandserviceprovidersaretaskedwithprovidingtoolstoallowvideotobediscoveredwithinmultipledistributionecosystems

andamongaplethoraofcontentchoices.

Thosethatmastervideodelivery,userengagement,andmonetizationstrategiespositivelypositionthemselvestogainacompetitiveedgetosupportbusinessobjectivesintheyearstocome.

TOMEET THESE CHALLENGES ,

stakeholders must attain sufficient audience reach at a matching or even higher rate to remain relevant. At the core of successful video delivery and discovery strategies is the consistent promotion of activities that increase video views, drive app downloads, and more importantly, boost company revenues.

8

Thistableoutlinesthecoreconnecteddevicevideodeliveryanddiscoverysuccessfactorsincluding

solutionsandbenefitsofeach.

Success Factors Integrative Solutions Benefits

AchieveCross-platformDeviceScale&AudienceReach

Cloud-basedManagement• Unifiesandscalesvideoexperiencesonmultipleconnecteddeviceplatforms• Reducesdevelopmentcosts• Providescentralizedmanagementandanalytics

StrengthenDiscovery SecondScreenPlatforms

• Leveragescompaniondevicessuchassmartphoneandtablettoenablesearch,discovery,andrecommendations

• FacilitatesmediastrategiesbeyondconventionalTVviewingenvironments• Stimulatesvideodiscoverybasedonsocialrecommendations•Offerspromotionalopportunitiesforprogramsorservices

CreatePersonalizedUserExperiences

SecondScreenandSocialTVExperiences

• ComplementsTVviewingexperiences,turningapassiveinteractionintoanengagingone• Buildsviewingaudiencesanddrivesvideoviewsviasocialsharingactivities• Increasesappdownloadsviarecommendationsfromtrustedvoices(i.e.,family&friends)• Formsindividualconnectionwiththeviewer,providingtheabilitytolearnmoreabouttheirattributesandpreferences

DriveTVTune-in SecondScreenSolutions• Enhancescontentandengagesaudiences• Increasesviewerloyalty• IncreasesadvertisingrevenuefromTVprogramming

Deliv

ery &

Disc

over

yM

onet

izat

ion

Deliveringhigh-qualityand

personalizedcross-platformvideo

experiencesencouragesuser

interactivity,fostersbrandloyalty,

andimprovesrevenues.

ScreenBee is a connected device

solutionbuilton topofmPortal’s

SPRINGBOARD® Media platform

inordertoshowcasesomeofthe

30+buildingblocksdesignedtoenhanceprogram-

mingandstrengthencustomer loyalty.ScreenBee

isavailableasawhite labelsolutionfor launching

videoapplicationsonconnecteddevices.

SPRINGBOARD Media is a cloud-based platform that enables

cablecompaniesandtelevisionprogrammerstoquicklylaunch

mobileexperiencesacrossthedivergingsetofconnectedde-

vicesinordertodriveconsumerloyaltyandtune-intoTVpro-

gramming.

Innovative Ways to Deliver Value and Increase Revenues

Cloud-based videomanagement and second-screen integration emerge as re-

sourcefulwaystoprovidevideoconsistencyandconsumervaluewithinmultiple

viewingenvironmentswhilereducingdevelopment,management,anddistribu-

tioncosts.Contentownersandserviceprovidersmusthonetheirvideodelivery,

discovery,andmonetizationstrategies to remaincompetitive inan increasingly

disparatemediamarket.

Delivery and Discovery Success

Author and Attribution

RESEARCH SOURCES

ABOUT THE AUTHOR—Heather Way, Senior Research Analyst

AsananalystatParksAssociates,Heather’scoreresearchfocusincludesevaluatingandprovidingstrategicassessmentsof

advancedadvertisingtechnology,platforms,managementsystems,buying/sellingservices,anddataanalytics.Heather

alsocoverstheconnecteddeviceapplicationecosystem.

PriortojoiningParksAssociates,HeatherworkedinthemediaindustryholdingpositionsasDirectorofAdvertising,media

plannerandbuyer,nationalTVsalesrepresentative,andtrainingcoordinator.Additionally,Heathertaughtasanadjunctprofessoratthe

UniversityofNorthTexas.Heather iscited in top-tier industry tradepublicationssuchasAdAge,Adweek,MediaPostPublications,USA

TODAY,andBusinessweek.

INDUSTRY EXPERTISE:AdvancedAdvertising(TV,Internet,mobile,gaming,socialmedia),ConsumerAdvertisingEffectivenessand

Preference,AdvertisingMetricsandReporting,ConnectedApps,TVCompanionAppsandSecond-screenAdvertising

mPortal, founded in 2000, offersmobile soft-

wareandservicestotelecom,cableandmedia

providers,empoweringthemtodeliversupe-

riormobileuserexperiencesfortheircontentandservicesacrosssmart-

phones,tablets,smartTVsandotherIP-connecteddevices. 

Specificallytailoredtomeetserviceprovider’sneeds,mPortalproductsare

designedtoextendbrandandpresencetoconnecteddevices,making it

funandeasyforuserstodiscoverandinteractwithunifiedentertainment,

socialappsandcommunicationservices.

Asatotalsolutionprovider,mPortaleliminatesthecomplexitiesinvolved

inlaunchingamobileoffering.UsingmPortalasastrategicpartner,cus-

tomerscanfocusontheircorebusinessandrelyonmPortaltoprovideits

expertiseinlaunchingrevenue-generatingmobileexperiences.

Our customers todate includemanyof theworld’s leading companies

suchasAT&T,BrighthouseNetworks,Cablevision,Comcast,CricketCom-

munications,CoxCommunications,DisneyMobile,MobileESPN,Reliance

Infocomm,TELUS,TVGuide,TimeWarnerCable,andVerizonWireless.

For more information, visit www.mportal.com.

Stay up-to-date with our The Connected Experience blog— www.mportal.com/blog—and follow us on Twitter, Facebook, and LinkedIn. 703-852-9600|info@mportal.com 

ParksAssociates isaninternationallyrecog-

nizedmarketresearchandconsultingcom-

pany specializing in emerging consumer

technologyproductsandservices.Foundedin1986,ParksAssoci-

atescreatesresearchcapitalforcompaniesrangingfromFortune

500 to small start-ups through market reports, primary studies,

consumerresearch,customresearch,workshops,executiveconfer-

ences,andannualservicesubscriptions.

Thecompany’sexpertiseincludesnewmedia,digitalentertainment

andgaming,homenetworks,Internetandtelevisionservices,digi-

talhealth,mobileapplicationsandservices,consumerelectronics,

energymanagement,andhomecontrolsystemsandsecurity.

www.parksassociates.com |972.490.1113 |info@parksassociates.com

ABOUT PARKS ASSOCIATESABOUT MPORTAL

ATTRIBUTION

Authored by HeatherWay, Executive Editor: Tricia Parks Published byParksAssociates,©ParksAssociates,Dallas,Texas75248

Allrightsreserved.Nopartofthisbookmaybereproduced,inanyformor by any means, without permission in writing from the publisher.PrintedintheUnitedStatesofAmerica.

Disclaimer—Parks Associates has made every reasonable effort to ensure that all information in this report is correct. We assume no responsibility for any inadvertent errors.

• ParksAssociates,Global Digital Living Forecast Workbook,February2013Edition

• ParksAssociates,Untapped Consumer Opportunities for Mobile Services,anonlinesurveyof2,500U.S.broadbandhouseholds(ages18+)

• ParksAssociates,Video-on-Demand: The Road to Revenues,anonlinesurveyof10,000U.S.broadbandhouseholds(ages18+)

• SocialGuide2013Twitter/TVRatingCorrelationStudy,2013

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