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TV Everywhere Household Penetration Still Lagging

27 Feb, 2016 By: Erik Gruenwedel

TV Everywhere (TVE), pay-TV’s languid attempt to afford subscribers on-demand and live access to content in the home on the TV and portable media devices, remains a non-factor.

New research from Adobe Digital Index pegs fourth-quarter (ended Dec. 31, 2015) TV Everywhere household penetration at 17.4%, which nonetheless represented a 102% increase from the previous-year period.

Designed to retain pay-TV subscribers and halt consumer migration toward competing over-the-top video services, TVE household use pales in comparison to subscription video-on-demand. A separate report found that 57% of households get SVOD service from Netflix, Amazon Prime Video, and/or Hulu Plus. Overall, 48% of adults stream any of these services on a monthly basis.

"Today, over 80% of households get at least one of these services, and in recent years Netflix and other streaming SVOD offerings have expanded the use and popularity of on-demand TV,” said Bruce Leichtman, principal analyst for Leichtman Research Group.

Drilling into TVE data, Adobe found use of TVE on Apple’s iOS platforms declined 20% in the quarter, while increasing proportionally on Android devices and up 31% among connected televisions. TVE consumption via Roku increased 14% -- likely due to the major broadcast networks adding channels in mid-November. Indeed, broadcast and cable able content had the highest TVE growth, at 111%.

“This is the first time we've seen that, and we think it’s because of some of these fall TV premieres and people waiting to watch when it’s most convenient for them instead of when it broadcasts on the actual cable channel,” said Becky Tasker, managing analyst at ADI.

Notably, the recent Super Bowl saw relatively flat year-over-year TV ratings but a substantial increase in online viewership.

“And it’s no surprise, really, since CBS streamed the Super Bowl for free to everybody who wanted to receive it digitally,” said Tamara Gaffney, principal at ADI. “I think what's great about that data, if you're thinking of it as glass-half-full, is that that makes a much more digitally addressable audience for television.”

Specifically, Adobe suggests TVE adoption will grow and shouldn’t be ignored.

“Marketers need to be aware of consumer behavior and where it is shifting to so they can optimize their own ad experiences,” said Tasker. [They] should already be planning and testing so that when [TVE] penetration does occur, they can have a better handle of how they’re going to shift their marketing dollars to attract that audience.”

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