Second Screen by the Numbers, Q1 2014 - more growth, more engagement, more monetization

2nd Screen Q1 2014 infographic

2nd Screen Viewing Experiences:
73% of TV Everywhere views are on a 2nd Screen.  ReelSeo.  Feb 6th  http://www.reelseo.com/73-tv-everywhere-mobile/
89% of video views on the BBC’s iPlayer are VOD vs. Live.  52% of video requests came from mobile http://www.nscreenmedia.com/tablet-dominate-iplayer-tv-requests-end-2014/
Auto-authentication reduces TV Everywhere abandonment rate from 50% to 10% http://news.synacor.com/Press-Releases/Synacor-and-Midcontinent-Communications-Deploy-Auto-Authentication-for-Sochi-TV-Everywhere-Result-i-163.aspx

2nd Screen Companion Experiences:
35% of 1st screen time is 2nd screened, of which 1/3 is with related content.  41% of that to follow-up on TV ad, 11% to interact with TV, 14% social about TV program, 24% discovery.  Milward Brown http://www.mediapost.com/publications/article/222041/its-a-multi-screen-world.html

2nd Screen Growth:
Year over year, share of time spent watching videos on tablets and mobile devices has increased 719% since Q4 2011, and 160% year-over-year since Q4 2012  http://iq.videonuze.com/article/ooyala-mobile-and-tablet-video-surges-by-719-since-q4-2011
Mobile video ad spend will increase 82.1% in 2014.  eMarketer.  http://www.admonsters.com/blog/mobile-video-revenue


Find more information, research, and infographics on our website

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The Oscars, Roku and the BBC - Revealing the future of TV

It's been another fast-paced week in the digital video and second screen industries.  While the OTT video world is still reeling from the previous week's announced Disney Movies Anywhere service (a serious threat to UltraViolet) and Marvel's announcement of an exclusive output deal with Netflix (continuing to threaten HBO), second screen took a shot in the arm from the Oscars, and Roku mounted an attack on Chromecast.  At a glance:

• "Watch ABC" did Second Screen for the Oscars "right"
• Ellen broke Twitter
• Roku announced their "streaming stick" device
• Dish struck a deal with Disney to delay commercial skips
• FreeWheel was acquired by Comcast
• The BBC announced the death of analog for it's Channel 3 service
• An Aereo lost its court battle in Salt Lake City and Denver

Quarterly Second Screen Market Trend Update

2^nd Screen had a tumultuous run up to CES 2014 with the press continuing to be split between hype and disillusion.  While we normally would have written and presented this update at CES, we decided to focus on releasing our research on monetization on behalf of our society members to help them and their primary stakeholders (investors, customers, management) cut through the hype and the disillusionment and focus on clear examples of what is working.  Ironically, the additional insight gained in the first few weeks of January has been invaluable with regards to both consolidation (Yahoo closing IntoNow) and M&A (Viggle buying Dijit, TiVo buying Digitalsmiths).  NATPE also did the production industry a favor by publishing some great research on enhanced viewing experiences as seen through consumers’ eyes as well as those of the production executives making decisions about where to invest in content development (in-depth blog).  Finally, the holiday season has continued to accelerate the proliferation of devices into the market place, driving continued growth in engagement and monetization opportunities for the 2^nd Screen companion and viewing experience ecosystem.

2nd Screen by the Numbers - Q4 2013 infographic

 

Long overdue, I know.  This and more at http://www.2ndscreensociety.com/research/report/

What happened to Second Screen this week?

What a crazy week.  As if it wasn't enough for NATPE to be taking place in Miami (with some great research and stats published about second screen), there was a ton of consolidation activity in our industry (Dijit/Viggle, IntoNow from Yahoo, Digitalsmiths/Tivo) and some rebranding by GetGlue.  At the same time the 2nd Screen Society (S3) published a teaser on its new research about monetizing the second screen, and then Gigaom and TechCrunch wrote some pretty disparaging views, with Gigaom reverting to the salacious headline of "Social TV is Dead".

Monetizing the 2nd Screen--business models that work

Second screen, social media and companion applications are all high on the agenda of executives in the media and technology industries. As a reflection of all major TV and technology conferences in 2013, CES, NAB, IBC, and MIP had several sessions dedicated to second screen. But second screen, while proven as a reality of consumer behavior, is not yet widely seen as a revenue driver. Indeed the reality of the second screen phenomenon is accepted, as is proven by the continuous flow of statistics showing that viewers use another screen in front of their TV (one of the latest being Nielsen saying that 75% of smartphone and tablet users are engaging with second-screen content more than once a month as they watch TV[1]). Another proof of the generalization of second screen is the multiplication of companion screen applications: over the course of 2013 they have become widespread in new geographies including the Middle East, Eastern Europe and Latin America, where they had little presence only 12 months before. Comparing the space with 2012, it is clear that no TV players can ignore it. Even more striking, the players behind some of the most successful apps are large and well established: Peel now has  40m+ downloads, mostly through a global partnership with Samsung; Apple bought Matcha in August 2012; zeebox grew their partnerships with Sky, Comcast (NBCU) and Foxtel, while DirecTV acquired a share of i.TV (which bought Getglue at the end of 2013); Viggle has a longstanding partnership with DirecTV; Comcast has launched “SEE iT” with Twitter[2] and Xbox SmartGlass app was downloaded more than 17m times.  Despite this popularity and the presence of the largest players, few industry executives dare to speak openly about monetization of second screen applications and only a small percentage of 3^rd party app providers have made their progress public. There may be good reason for the industry stalwarts to keep their progress private with commercial competition so tough, but the sceptics of course believe that is because no one has actually experienced much monetization success.  So while many in the industry are wondering where the money is in second screen, next to nobody is ready to “show [you] the money”.

Looking for Evidence of Monetization and Engagement after the Hype

When I look at the 2^nd Screen industry trends today, I can’t help but think back to what we were focused on only 12 months ago as we prepared to come together at CES in Las Vegas.  We spent a lot of time talking about Social TV, the consolidation of the industry, ACR, and whether or not consumers were actually using their 2^nd Screen devices to engage with there video content—or just to play Angry Birds.