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Insights to Know CONTENT MATTERS IDEAS IMPACTING THE CONTENT COMMUNITY 2016 Q4 ISSUE #5 Culled from the headlines of the TV Industry’s Trade Press, CONTENT MATTERS is a Bi-Monthly Newsletter curated and contextualized by KATZ Content Strategy’s Bill Carroll. 1. Latest study: TV vs. Online: Where do audiences want to watch? The report shines a bit more light on how various demographics are viewing video, and where that behavior is shifting. Millennials own the most “smart” TVs. Baby Boomers are bigger cord-cutters. In the meantime, Generation X is caught in the middle. 2. The CW is Forging its Own Digital Path, Without Hulu Exclusive, in-season streaming rights are key. For the first time, The CW's website and apps will exclusively stream shows like Supergirl in-season. 3. What does Twitter’s streaming experiment mean for the future of live television? It’s reported that millions of viewers watched some of the Thursday night NFL football game on Twitter and several million more used it to watch the first 5 Presidential debate. INSIGHTS 4. TV Might Be Everywhere -- But Viewers Aren't As more and more formats become available over the TO KNOW next few years, even fewer people will get everything, or even most things. Today’s media world is much more splintered. 5. Networks Rethink Midseason Hiatus Plans After Last Year's Ratings Collapse Can shorter breaks and big cliff-hangers stave off audience erosion? Networks hope dramatic midseason finales will entice audiences to return. 1 CONTENT MATTERS IDEAS IMPACTING THE CONTENT COMMUNITY 2016 Q4 ISSUE #5 Millennial-aged consumers may be getting Millennial, Gen X or Baby Boomer age more attention for their out-of-home mobile groups. The report shines a bit more viewing habits, but the much-studied 18-34 light on how various demographics are age group apparently likes kicking back in viewing the video, and where that behavior front of the big screen as well. A new survey is shifting. It can also provide a little by Furious Corp., a business intelligence insight into factors like the slowing firm, found that millennials own the decline in pay-TV subscriptions: for smartest TVs, with almost 21 percent having example, in the first quarter of 2016, at least one set in their home. mid-sized cable operators in the U.S. This article is excerpted and condensed dropped more than 30,000 customers, from the FIERCE ONLINE VIDEO and FURIOUS but Tier 1 pay-TV providers like Charter CORP sites. Further turning the image of added a total of 89,000 subs. millennials as highly mobile cord-never on Other findings from Furious Corp.'s its head, the survey found that more than survey weren't as surprising: for example, 33 percent of millennials are "very happy" Netflix still reigns as the most popular with their cable service and have no plans SVOD platform, with 48.2 percent of to cancel their subscription. Meantime, those surveyed saying they used it the just over 37 percent of Baby Boomers do most to watch movies and TV shows. not have a pay-TV subscription, making Amazon Prime was the least popular them the least likely group in the study SVOD option, with just 4.3 percent to subscribe to cable. In the meantime, saying they watch it the most. And Generation X is caught in the middle -- 11.7 YouTube was the most-streamed service percent have considered canceling their on mobile devices, with 44.6 percent pay-TV subscription in the past six months, saying it's their "platform of choice." the report said. Their chief reason for not Women watch long-form video doing so: the lack of live sports events on mobile devices 7.9 percent more streaming online. Generation X prefers live than men. For those still considering TV 21.9 percent more than Millennials, but canceling their cable subscription, the roughly 17.8 percent less than Boomers. go-to streaming option -- at least for For its report, "TV vs. Online: Where do men -- is Hulu Plus; almost 17 percent audiences want to watch?" conducted in May of respondents said they would 2016, Furious surveyed 466 U.S. consumers choose the service to replace cable over 18 years old and segmented them into programming. CONTENT IN CONTEXT As the introduction to the report states, the many believe that traditional TV is dying, statistics of cord cutting and online viewing the numbers show that most viewers are send mixed messages about whether finding more time in the day to consume audiences are ready to give up cable and video content, both on TV and online and stream all their video content. Although they are not choosing one over the other. 2 CONTENT MATTERS IDEAS IMPACTING THE CONTENT COMMUNITY 2016 Q4 ISSUE #5 As The CW debuted its season premieres, been looking for more from us because viewers used to streaming those shows on our inventory was somewhat constrained, Hulu were in for a surprise according to and we now have been able to release it. this article excerpted and condensed from …Our digital growth this year was really AD WEEK. The network's five-year deal significant." with the streaming service has lapsed, In addition to being the only which means that for the first time, The network to offer unauthenticated access CW's website and apps will have exclusive via its apps ("our median age on digital in-season streaming rights to its shows is 23, and our viewer does not want to like Supergirl, which has migrated over authenticate," explained Tuck), Pedowitz from CBS, Jane the Virgin and The Flash. and Tuck have reduced The CW's digital It's a brave new digital world ad load this season, from 12 minutes per for The CW, which created its CW Seed hour, which mirrored the linear load, to digital platform in 2013 in part so it would seven-to-nine minutes per hour. "We're one day be prepared to go it alone without trying to figure out what is the right load Hulu. The network rolled out its CW app so that viewers feel that they've had a on Roku, Apple TV, Xbox, Chromecast and great viewing experience," said Pedowitz. Amazon Fire, and is ramping up marketing While The CW ended its partnership efforts to direct audiences to the new digital with one SVOD, it has enhanced its destinations. "When you know this is the relationship with another. In July, the only place you have to go, that makes a network signed a lucrative, multiyear big difference, and it helps our business deal with Netflix, giving that company model," said network president Mark exclusive streaming rights to full seasons Pedowitz. of each CW series, beginning just eight While ABC, Fox, and NBC, whose days after its season finale. Under its parent companies jointly own Hulu, previous CW deal, Netflix did not get were able to sell a big chunk of their ad streaming access until several months inventory for the streaming service, The after a season had concluded. While CW was not given the same access to Hulu Pedowitz is confident that viewers who ad revenue. "We had none of it, and I'm watch his network's programming in- sure a lot of advertisers went there to get season won't be tempted to wait and our shows," said Rob Tuck, evp, national binge the entire season on Netflix in May, sales for The CW. "The advertisers had others aren't so sure. CONTENT IN CONTEXT We are cautiously optimistic about The CW's broadcast affiliates) or possibly stream new digital strategy. Citing the network's current seasons. We will soon have to see research, viewers were discovering past if their approach optimizes their broadcast seasons on Netflix and then going to the audience by also allowing viewers to watch network to watch (to the benefit of the CW the CW in nontraditional ways. 3 CONTENT MATTERS IDEAS IMPACTING THE CONTENT COMMUNITY 2016 Q4 ISSUE #5 The live “Twittercast” is the latest technologies – streaming, on demand development changing the business or DVR recording – have wrought on of television. That’s clearly changing network schedules of scripted programs. according to this item by Professor Amanda In the past, networks have tried to use Lotz excerpted and summarized from THE social media discussions to encourage CONVERSATION. It’s reported that millions viewers to turn into scheduled broadcasts. of viewers watched some of the Thursday By promoting hashtags or having writers night NFL football game on Twitter and and actors live tweet during the show, several million more used it to watch the they hope to create a media event and a first Presidential debate. These two events conversation around a weekly episode. illustrate the different potential for Twitter- Twittercasts attempt to do the same. The distributed video. Neither offered a “game- Twitter feed based on the game hashtag changing” experience – yet. But these two isn’t really a conversation – more a experiments, arriving in quick succession, broadcast of thousands of fans’ reactions. reveal the future of live TV. The debate Twittercast provided some So why is the NFL letting Twitter contrast in this regard. There was more to show these games? Twitter did pay $10 engage with and it was able to provoke million for the rights. But a big advantage more diverse reactions, which made is that programmers gather a lot more it seem like eavesdropping on a lot of information about viewers that watch on different conversations. Twitter than by broadcast or cable. Knowing Neither of these Twittercasts was more about who your viewers are and how revolutionary.
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