Pay-TV Subscribers are Interested in Streaming Media as Part of Their Subscription Service

A new study examines how traditional Pay-TV and vMVPD services can grow revenues following changing consumer preferences during the COVID-19 crisis.

New research from Parks Associates shows that 60% of pay-TV subscribers are interested in streaming movies and TV shows from an online video service as part of their pay-TV subscription. This accounts for nearly half of US broadband households. The study “Pay TV: Perception, Adoption, and Retention” observes service providers are responding to this demand. The number of pay-TV consumers who receive online video services has jumped nearly 50% in a year. This new research examines the consumer perceptions of pay-TV services and features and measures the efficacy of different options pay-TV providers can leverage to retain subscribers. It also contrasts traditional pay-TV services and vMVPD services.

“If there was ever a time when entertainment service providers believed that OTT was a phase, they are now convinced of its permanence,” said Kristen Hanich, Senior Analyst, Parks Associates.

“In late 2019, the market reached the crossover point where the same percentage of US broadband households subscribed to an OTT service as subscribed to a pay-TV service. And now OTT adoption outpaces pay-TV by double digits,” she continues.

“The good news for providers is consumers often have both pay-TV and OTT. 79% of pay-TV households have both pay-TV and OTT subscriptions. Providers are in a spot where they must redouble their efforts to engage these subscribers by executing new innovations and business models or risk accelerating customer losses.”

Parks Associates: Appeal of Potential New Features
Parks Associates: Appeal of Potential New Features

COVID-19 has dramatically accelerated the adoption of online video services, providing a small boost to online pay-TV services. The average number of over-the-top services among households with any OTT service is around 3.8 subscriptions per household. Whereas those households with a pay-TV service and an over-the-top service would subscribe to an average of 4.2 OTT services.

As online video grew, cancellation rates for traditional pay-TV have accelerated. Millions of more cancellations occurred in 2020 compared to 2019. The question now is how stable are the remaining pay-TV customers and how to ameliorate cancellations. Video streaming is the most popular value-added service among pay-TV households, but there is a growing interest in other advanced features:

  • 43% of pay-TV households are interested in having video calls on their TV
  • 40% are interested in controlling smart home devices and security systems from the TV
  • 34% are interested in playing video games on the TV through a cloud gaming service

“Pay-TV providers must keep offering their most valuable content, which includes live sporting and cultural events,” Hanich said. “Additionally, they must offer access to streaming, target new service to their interested customers, and perhaps be willing to take a hit on pricing until this chaotic market stabilizes.”

AIM TV Group Launches “Raw Travel Plus” Channel on YouTube

The new travel-themed YouTube channel offers tips, practical advice, and an escape for viewers.

AIM Tell-A-Vision® Group (AIM TV) announced that their signature travel program Raw Travel® is officially launching Raw Travel Plus, a new YouTube channel. The latest effort from the syndicated television show capitalizes on the show’s eight-season library of web content, travel tip vignettes, themed destination content, and behind the scenes footage.

The digital-only offering has content on the channel currently with plans to add more daily. Raw Travel Plus will also grow to include bonus original, first-run content not seen on the TV show. The effort will also be supported by the current RawTravelTV YouTube channel, which serves as a promotional vehicle for the syndicated show.

“Raw Travel Plus will be much more robust than what we’ve offered in the past on YouTube, which was limited by design. At that time, we wanted to stay focused on producing content solely for broadcast syndication and international licensing,” says Executive Producer, Creator, and Host, Robert G. Rose.

“But now that our library is so extensive and so much of it still under or completely un-exploited, it makes sense to provide a digital outlet for that content. Raw Travel Plus will be a destination for those who crave authentic, on-demand, travel-related content, themed videos, travel tips, and eventually, never-before-seen, digital-first videos,” Rose continued.

The target audience for Raw Travel Plus is two-fold. The first is the core loyal Raw Travel linear TV viewer that wants more show content than can be offered in a half-hour television environment. Secondly, the show hopes to super-serve online users craving authentic travel content, researching new and different travel experiences and destinations post-pandemic, and providing a much-needed virtual escape during the pandemic and for those unable to travel. The channel will appeal to people who may or may not know the TV show. The TV show will help grow Raw Travel Plus and vice versa.

The nationally syndicated, linear TV show currently airs each weekend in the USA on over 200 broadcast affiliates (NBC, ABC, CBS, Fox, etc.) in over 173 markets in 95% of the U.S. The show enjoys multiple airings each week in many major markets. Raw Travel is currently garnering affiliate renewals for its 9th and 10th seasons, respectively, giving the green light for new episodes through 2023.

To find a local television station airing episodes of Raw Travel, visit here: rawtravel.tv/wheretowatch

In addition to domestic growth, Raw Travel continues to expand its international footprint on various outlets worldwide. Raw Travel is also exhibited on several In-Flight Entertainment (IFE) offerings on airlines such as American, Delta, Air Canada, Virgin America, and more.

Raw Travel is an adventure travel and lifestyle series. Each episode showcases socially and environmentally aware independent travel. Uniquely, the series weaves together themes of eco-tourism, voluntourism, underground music, and authentic culture. Each weekend the show is seen in over 173 U.S. cities on major broadcast affiliates and several international territories (Asia, Africa, Europe). It can also be found on several major airlines. AIM Tell-A-Vision Group produces the show and oversees its domestic and international distribution and internationally. Visit RawTravel.TV for more information.

Raw Travel Plus is the official YouTube channel for Raw Travel TV. It is dedicated to going beyond the show’s content, travel tips, themed destinations, and travel advice. The channel can be found at RawTravelPlus.com or by searching YouTube for “Raw Travel Plus”.

AIM Tell-A-Vision (AIM TV) Group is an independent production, content, and distribution company founded by media veteran and entrepreneur Robert G. Rose. Since 2000, AIM TV has been producing and distributing positive, compelling content that reflects a mission of presenting “Media That Matters.” Visit AIMTVGroup.com for more information.

Raw Travel Plus is exclusively available on YouTube

Nielsen Begins Tracking Premium Theatrical Films Being Distributed On Streaming Platforms

The service gives the movie industry a wide array of consumer data and actionable insights for the new form of entertainment distribution.

On Tuesday, Nielsen announced that it is launching its Theatrical Video-On-Demand (TVOD) measurement service. It will serve as a way to monitor new movie releases that are directly available to consumers to rent or purchase on-demand through streaming and MVPD platforms. Often offered at premium pricing, this rapidly expanding distribution model of film releases was accelerated by COVID-19 early in 2020. Content creators, such as studios, sought to offset disruption caused by social distancing mandates that temporarily closed movie theaters across the United States.

The evolution of theatrical distribution, especially during the COVID-19 pandemic, has introduced a new opportunity for both consumers and content owners. With the delivery of newly released movies directly to viewers in the comfort of their own homes, the entire media food chain, from studios to talent, has a need to analyze the volume and reach of their audiences. Information about the household and viewers’ characteristics, such as age and gender, ethnicity, or even territory, will be detailed in the service report.

Nielsen’s TVOD measurement service will help clients uncover information about the consumers streaming the premium content. The company will collect a detailed review of viewer demographics and behavioral information, which will go beyond the consumer data provided by the box office metrics and transactional rental services. The information will be crucial for audience-driven decisions concerning media licensing and promotion.

The past year, underpinned by COVID-19 related uncertainty, has changed consumer behavior, driving a rise in streaming consumption. Streaming now accounts for nearly a quarter (23%) of total usage among OTT capable homes, up from 21% just a year prior. A much broader swath of consumers has enabled streaming capabilities, presenting a new opportunity to deliver this form of entertainment directly.

“As this unprecedented pandemic continues to influence consumer behavior, perhaps even through a prolonged state of recovery waves. Being able to measure and help clients appropriately monetize new revenue streams has never been more crucial,” said Scott N. Brown, the General Manager of Audience Measurement for Nielsen.

“A bigger question might be what will audiences do following any recovery, how the behavior adopted during stay-at-home orders might influence habits when consumers have the ability to go back to theaters to enjoy that experience and how content creators will leverage data to make the best decisions regarding distribution platforms in the future.”

Nielsen Holdings plc is a global measurement and data analytics company. They provide the most complete and trusted view available of consumers and markets worldwide. Nielsen is divided into two business units:

Nielsen Global Media provides the media and advertising industries with unbiased and reliable metrics. This helps create a shared understanding of the industry, which is required for markets to function.

Nielsen Global Connect (NielsenIQ) provides consumer packaged goods manufacturers and retailers with accurate, actionable information and insights and a complete picture of the complex and changing marketplace that companies need to innovate and grow.