1. P R O V I D I N G I N - D E P T H I N S I G H T ,
D A T A , A N D A N A L Y S I S O F
E V E R Y T H I N G D I G I T A L .
THE FUTURE
OF TV 2017
THI NKI NG O UTSI DE
THE BO X ABO UT HO W
WE CO NSUME VI DEO
3. BUT NEW MEDIA SOURCES CONTINUE TO GARNER A LARGER
SHARE OF ATTENTION
Note: Other media includes time-shifted TV, TV-connected devices, radio, and total internet usage
Source: Nielsen, Rentrak
P E R C E N TA G E O F T O TA L M E D I A U S A G E A M O N G U S A D U LT S
52% 48% 45% 40%
48% 52% 55% 60%
2013 2014 2015 2016
All Other Media
Live TV
4. Millennials
43%
S H A R E O F C O R D - C U T T E R S
O R C O R D - N E V E R S W H O A R E
M I L L E N N I A L S
WHICH IS A BIG REASON
WHY MILLENNIALS ARE CUTTING THE CORD
n=25,000US consumers
Source: GfK MRI Survey of the American Consumer, Fall 2016
Cordless
30%
S H A R E O F M I L L E N N I A L S W H O
A R E C O R D - C U T T E R S O R
C O R D - N E V E R S
5. CONSUMERS OF ALMOST ALL AGE GROUPS ARE WATCHING
LESS TRADITIONAL TV
Source: Nielsen, January 2016
2-11
-26%
12-17
-38%
18-24
-39%
25-34
-34%
35-49
-19%
50-64
-9%
65+
2%
-45%
-40%
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016
T I M E S P E N T W A T C H I N G T R A D I T I O N A L T V, B Y A G E G R O U P
6. THAT’S HURTING EVEN TV STRONGHOLDS, LIKE SPORTS
Source: Nielsen, WSJ
96.17
94.4
92.94
90.99
89.01 88.78
Jul'14 Feb'15 Jul'15 Feb'16 Jul'16 Aug'16
Lost 7.4M
households in 2
years
H O U S E H O L D S W I T H E S P N
( M I L L I O N S )
NBC Sunday Night Football: -10%
Fox Sunday: -7%
CBS Sunday: -6%
CBS Thursday Night: -15%
ESPN Monday Night: -12%
N F L R A T I N G S
( R E G U L A R S E A S O N 2 0 1 5 V S . 2 0 1 6 )
7. 55
52 50
45
59
54 54
49
CBS ABC NBC FOX
2010 2015
MEANWHILE, TRADITIONAL TV AUDIENCES
ARE GETTING OLDER
Source: The Sternberg Report, Nielsen
M E D I A N V I E W E R S H I P A G E O F B I G 4 B R O A D C A S T N E T W O R K S
8. 209 212
260 273
325
357
375 362
2009 2010 2011 2012 2013 2014 2015 2016
LESS ORIGINAL CONTENT IS BEING MADE FOR THE FIRST
TIME EVER
Source: FX Research, December 2016
S C R I P T E D O R I G I N A L S E R I E S O N T R A D I T I O N A L T V ( U S )
The # of broadcast & cable
scripted original series
dipped for the first time YoY
9. $54
$57
$61
$63
$67
$70
$74
2010 2011 2012 2013 2014 2015 2016
AND PAY-TV PRICES HAVE FINALLY SURPASSED WHAT
CONSUMERS ARE WILLING TO PAY
$72
$60
Upper limit consumers
are willing to pay
Lower limit consumers
are willing to pay
n=4,000
Source: Activate
M O N T H LY P R I C E O F E X P A N D E D B A S I C C A B L E ( U S )
11. Source: Gfk MRI Survey of the American Consumer, Fall 2016
“Millennials are most likely to define ‘TV’ as
anything they can watch on any device — a TV,
laptop, smartphone, or tablet.”
12. IT’S NO LONGER JUST TV NETWORKS
n=1,309 US consumers who watch at least five hours of TV per week
Source: Hub Research, January 2017
75%
33%
45%
72%
TV Networks
16-24 Years Old 55+ Years Old
Q : H E R E A R E S O M E T E R M S R E L A T E D T O T V. W H I C H O N E S C O M E
C L O S E S T T O W H A T Y O U T H I N K O F W H E N Y O U T H I N K O F T V ?
13. IN FACT, LOYALTY TO TRADITIONAL TV NETWORKS
IS DIMINISHING
n=1,309 US consumers who watch at least five hours of TV per week
Source: Hub Research, January 2017
Only 13% say that network
brands are a big factor in their
decision about which show to
watch
Less than half (41%) can
identify the original network of a
show that aired on an SVOD
service
16. Live TV
47%
Digital
28%
Other
26%
DIGITAL IS EATING AWAY AT LIVE TV
Note: Other = time-shifted TV & radio
Source: Nielsen
Live TV
39%
Digital
39%
Other
22%
Q3 2014 Q3 2016
S H A R E O F M E D I A T I M E S P E N T P E R D A Y P E R A D U LT, B Y F O R M A T ( U S )
17. IT’S STILL GROWING, UNLIKE TRADITIONAL TV
Source: eMarketer, BI Intelligence
C H A N G E I N A V E R A G E T I M E S P E N T P E R D A Y W I T H M E D I A ( U S )
17%
15%
7%
6%
5% 3%
1%
-2% -3% -4% -2% -2%
2012 2013 2014 2015 2016 2017
Digital TV
18. 64%
57%
53%
31%
38% 40%
2014 2015 2016
Set-Top Box Online
AND IT’S BECOMING A TOP CHOICE FOR VIDEO
CONSUMPTION
Q: What is the main source you use to watch your favorite program?
Source: Hub Research, n=1,200
T O P S O U R C E F O R C O N S U M I N G V I D E O C O N T E N T ( U S )
19. 49.5 49.3 49.2 49.0 48.8 49.1 49.1 48.9 48.8
51.2
52.0
53.0 53.5
54.3
55.3
56.3 57.0
57.8
Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16
TV Broadband
MEANWHILE, CONSUMERS ARE SHIFTING FROM CABLE TV TO
BROADBAND
Source: Leichtman Research Group
Total Subscribers (Millions)
U S C A B L E S U B S C R I B E R S , B Y S E R V I C E
TV down 1%, broadband
up 13% from Q3 14
20. CREATING AN INCREASE IN BROADBAND-ONLY HOUSEHOLDS
9.2 9.86
10.89
12.09
14.8
16.3
18.0
19.9
21.9
2012 2013 2014 2015 2016 2017 2018 2019 2020
B R O A D B A N D - O N LY H O U S E H O L D S I N T H E U S
( M I L L I O N S )
Source: SNL Kagan
2016-2020:
14% CAGR
21. 4:10
4:48
5:09
5:28
5:43 5:53
4:38 4:31 4:22 4:11 4:05 4:00
2012 2013 2014 2015 2016 2017
Digital TV
SO DIGITAL MEDIA CONSUMPTION WILL CONTINUE TO GROW,
WHILE TRADITIONAL STUMBLES
Source: eMarketer
A V E R A G E T I M E S P E N T P E R D A Y W I T H M E D I A ( U S )
+41% vs.
2012
-14% vs.
2012
24. 72%
44%
18%
12%
78%
54%
22%
19%
84%
61%
28%
25%
Smartphone Tablet Multimedia Device Smart TV
2014 2015 2016
HOUSEHOLD PENETRATION OF MAJOR DEVICES CONTINUES
TO INCREASE
Note: Multimedia Device = Apple TV, Amazon Fire Stick, Roku, Google Chromecast, etc.
Source: Nielsen
D E V I C E S I N U S H O U S E H O L D S , B Y P E N E T R A T I O N
25. AND CONSUMERS ARE SPENDING MORE AND MORE TIME
WATCHING VIDEO ON THESE DEVICES
Source: Ericsson
P E R C E N TA G E O F M O B I L E D A TA T R A F F I C V O L U M E F R O M V I D E O
2014 2016 2022
45% 50% 75%
26. WHICH IS SEEMINGLY EATING AWAY AT TRADITIONAL TV
Note: Digital TV = connected TVs, desktops, smartphones, and tablets
Source: Nielsen
1,455
1,143
1,347
1,431
Traditional TV Digital TV
Weekly average during Q1 2015 Weekly average during Q1 2016
-7% YoY
+25% YoY
V I E W I N G T I M E B Y U S A D U LT S ( M I N U T E S )
29. OVERALL TIME SPENT ON MOBILE IS SKYROCKETING
Source: comScore, 2016
409,847
621,410
778,954
864,328
77,081
97,440
118,299
124,787
June '13 June '14 June'15 June'16
Mobile App Mobile Browser
U S D I G I TA L M E D I A T I M E S P E N T O N M O B I L E
( M I L L I O N S O F M I N U T E S )
30. AND CONSUMERS ARE SHIFTING THEIR DIGITAL VIDEO TIME
TO MOBILE DEVICES
7%
12%
27%
44%
51%
2012 2013 2014 2015 2016
US M O BILE VID E O C O NSUM E R TIM E SP E ND,
% O F TO TA L TIM E SP E NT O N O NLINE VID E O
Source: Ooyala Global Video Index
Mobile video
viewing surpasses
desktop for first time
32. WHICH IS LEADING TO INCREASED CONTENT THAT IS
TAILORED TO MOBILE SCREENS
33. 33%
43%
33%
63%
75%
54%
Desktop Mobile Tablets
2014 2016
INCLUDING VIDEO CONTENT THAT IS 10 MINUTES OR LESS
How to read: Viewers watched desktop videos less than 10 minutes 33% of the time
Source: Ooyala
S H O R T- F O R M C O N T E N T S H A R E O F T I M E W A T C H E D , B Y D E V I C E
( G L O B A L )
91%
74%
64%
34. 10.1
1.9
8.3
3.2
Professional Content Pro-Am and Amateur Content
2011 2016
AND AMATEUR PRODUCED CONTENT
n=266 millennials aged 19-30
Source: Boston Consulting Group
M I L L E N N I A L S ’ A V E R A G E H O U R S
V I E W E D
18%
68%
385
489
628
788
938
2012 2013 2014 2015 2016
G L O B A L C O N T E N T
C R E A T O R S ( M I L L I O N S )
35. THE NEW TV IS DIGITAL, SOCIAL, AND CROSS-PLATFORM
37. SVOD IS CONTROLLING HOUSEHOLD PENETRATION GROWTH
Source: Nielsen, Leichtman Research Group, BI Intelligence estimates
88% 86% 83% 82% 80% 78% 76% 75%
35%
41%
48%
55%
61%
66%
71%
75%
2013 2014 2015 2016 2017 2018 2019 2020
Pay-TV SVOD
U S H O U S E H O L D S W I T H P A Y -T V V S . S V O D
If this trend continues,
the same % of homes
with Pay-TV will have
access to an SVOD
service by 2020
38. $11.9
$10.2
$5.7
$4.9
$3.8
$2.9 $2.7 $2.5
$2.0
$0.8
SVOD SPENDING IS RIGHT UP THERE WITH
MAJOR TV NETWORKS
Note: Red denotes a pureplay SVOD provider
Source: IHS Markit TV Programming Intelligence
2 0 1 5 G L O B A L P R O G R A M M I N G S P E N D ( B I L L I O N S )
39. 209 212
260 273
325 357 375 362
1 4
6
15
24
32
46 93
2009 2010 2011 2012 2013 2014 2015 2016
Broadcast/Cable Online TV
WHICH IS CONTRIBUTING TO AN INFLUX OF ONLINE VIDEO
CONTENT
Online TV: Amazon Prime, Crackle, Hulu, Netflix, PlayStation, Seeso, Vimeo, Yahoo, and YouTube Red
Source: FX Research, December 2016
E S T I M A T E D N U M B E R O F S C R I P T E D O R I G I N A L S E R I E S ( U S )
+102% YoY
-3% YoY
41. 0
12%
1
34%
2
34%
3
14%
4,
4%
5+
1%
GIVING CONSUMERS THE CHANCE TO CREATE THEIR OWN
DIGITAL TV BUNDLES
Q: “How many PAID streaming video subscriptions do you have?”
Source: BI Intelligence Survey, October 2016, n=1,146
N U M B E R O F P A I D V I D E O S T R E A M I N G S E R V I C E S
( U S A D U LT S )
53% of respondents have
2 or more SVOD services
42. AND ALLOWING THEM TO WATCH WHATEVER, WHENEVER
THEY WANT VIA OFFLINE VIEWING
Source: Company filings
The offline viewing feature enables users to download and watch films
and TV shows in places where internet is limited or expensive — like in
subways, car rides, and planes.
44. SOCIAL CHANNELS ARE LANDING MAJOR TV DEALS TO HOST
VIDEO CONTENT ON THEIR PLATFORMS
R E C E N T S O C I A L P L A T F O R M T V D E A L S
Source: Company filings, BI Intelligence
September
2016
December
2016
January
2017
February
2017
August
2016
July
2016
April
2016
46. WHICH IS CAUSING A SPIKE IN OVERALL SOCIAL VIDEO
VIEWERSHIP
Source: Facebook, Snapchat, YouTube, WSJ, Bloomberg, BI Intelligence estimates
4
5
6
8
10
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16
4
6
8
10
12
Q1'15 Q2'15 Q3'15 Q4'15 Q1'16
6.0 6.3 6.5
7.0
8.0
Q2'14 Q3'14 Q4'14 Q2'15 Q4'15
+200%
+150% +33%
D A I LY V I D E O V I E W S , B Y P L A T F O R M ( B I L L I O N S )
47. $5.1 $4.9 $5.4
$6.3 $6.4 $6.7 $6.9 $6.6
$7.6
$3.6
$5.5
$9.1
$13.7
$16.8
$21.5
Q1-Q3 2014 Q1-Q3 2015 Q1-Q3 2016
CBS Disney Comcast Facebook Google
AND HELPING TO DRIVE AD REVENUE FOR THESE PLATFORMS
U S A D V E R T I S I N G R E V E N U E ( B I L L I O N S )
#5 #3
#2
FB ad rev
surpasses TV
for the first
time
Source: The Information
48. WHILE TRADITIONAL PLATFORMS GROW MORE SLOWLY
Source: Company reports, UBS
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
2007 2008 2009 2010 2011 2012 2013 2014 2015
Millions
M O D E R N D I G I TA L A D R E V E N U E V S . T R A D I T I O N A L T V R E V E N U E
50. 48%
EVEN SHORT-FORM VIDEO IS BECOMING INCREASINGLY
POPULAR ON BIG SCREENS…
Source: Google, YouTube, December 2016
Y O U T U B E V I E W I N G T I M E O N T V S
Share of viewers aged 16-
34 who have watched
YouTube on their TV
screen
YouTube viewing time on
TV screens more than
doubled YoY in 2016
2015 2016
The average length of an
online video:
4:20
51. …WHILE LONGER-FORM CONTENT IS DRAWING BIG
AUDIENCES ON DIGITAL SCREENS
Source: NBC Sports Group
Over 1B minutes of Olympics-
related content consumed on
YouTube
NBC digital sites drew 100M
unique visitors, 29% higher
than 2012 London Games
2.2B snaps across Live and
Discover platforms in the US, with
230M min of consumed content
600M video views on NBC
Olympics Page, with 3.5M live
viewers consuming FB Live videos
2 0 1 6 O LY M P I C S D I G I TA L B R E A K D O W N
52. AND THE RISE OF INTERNET-CONNECTED DEVICES ALLOWS
FOR ONLINE VIEWING ON TV SCREENS
Source: Digital TV Research, BI Intelligence estimates
115
163
228
307
397
487
584
673
759
831
870 896
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0
100
200
300
400
500
600
700
800
900
1000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Millions
G L O B A L I N T E R N E T- C O N N E C T E D T V S I N S TA L L E D B A S E
Year-Over-Year Growth
53. 6.6 6.2
4.6
0.5 1.1 4.3
0.15
2014 2015 2021
Other Subscriptions LTE 5G
BUT IT WILL BE LTE & 5G NETWORKS THAT DRIVE MOBILE
VIDEO GROWTH INTO THE FUTURE
Source: Ericsson
G L O B A L M O B I L E S U B S C R I P T I O N G R O W T H , B Y N E T W O R K
( B I L L I O N S )
