VAB REPORT: MVPD S VOD DRIVING ENGAGEMENT & AD LIFT

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Juniper Cole
6 years ago
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1 PGM VAB REPORT: MVPD S VOD DRIVING & AD LIFT

2 MVPD s VOD Insights MVPD s On-demand platform is a top preference for viewing programming content VOD is available in 62% of the Homes Growth driven by improved interface and surge of recently aired programming 79% of Cable subscribers use VOD per month (Comcast subs) & almost half (46%) time spent is with episodic TV viewing Consumers spend 9.3 hours/month with VOD content (Rentrak) Profile of VOD user: Younger, more educated, higher income homes tend to view VOD programming MVPD s VOD creates ad lift & generates more engagement Cable VOD Day 4+ outperform ads in general environment in following metrics: Likeability, relevance and attention Driving consumers to brand s website Consideration for purchasing Brand impact metrics & intent to purchase) VOD poised to grow 6% in next year to $2.5 Billion PGM

3 PGM Consumers Are Just As Engaged With Television Programming as In Years Past 82% Cite More/Same Engagement As Last Year PGM TV Shows Engagement Versus Year Ago Movies Less 16% Non-Viewers 2% More 22% Less 15% Non-Viewers 3% More 31% Same 60% Same 51% Source: Nielsen home entertainment consumer trends5/15: Q: Thinking about all the ways you watch TV shows, how do the following activities compare to last year? Thinking about all the ways you watch movies, how do the following activities compare to last year?

4 Provider s On-Demand Remains A Top Preference For Viewing Programming Content Percentage of Shows Viewed Per Source PGM Shows you record on a DVR or TiVO 34 (Provider's) On-Demand service Shows you stream from Netflix Sites/apps from TV nets 8 Any other online source 7 Shows on Hulu/Hulu+ 6 Amazon Prime/Amazon Instant Site/App from {provider} Source: 2015 Feb Hub Report on Timeshifting 3 3

5 Today, Video On Demand Is Now Available In 62% Of Homes - Up 32% In Just Five Years PGM VOD Availability in TV HHs 72,391,000 UE 43% 47% 53% 57% 60% 60% 62% Source: Nielsen; September of each year

MVPD s VOD Growth Is Driven By Its Improved

Past 5 years 33,875 27,930 Sample Programs on

15,667 20,081 5,950 8,100 10,403 2008 2009 2010

Multichannel market trends; Count represents

refreshed content and are not comparable to

6 MVPD s VOD Growth Is Driven By Its Improved Interface and Surge Of Recently Aired Programming Content PGM Average U.S. Titles Per Month # of Titles Has Quadrupled In Past 5 years 33,875 27,930 Sample Programs on VOD (Availability Varies by Cable Provider) 15,667 20,081 5,950 8,100 10, Source: SNL Kagan Multichannel market trends; Count represents avg monthly selection, reflecting turnover and refreshed content and are not comparable to average titles available simultaneously. 3/15; Sampling of programming for one provider.

7 MVPD s Offer A Vast Variety Of On-Demand Content Unmatched By Any SVOD Service SVOD vs. Average U.S. Comparison: # of Titles Per month PGM Netflix 33,875 Hulu+ 27,930 Amazon Avg MVPD 20,081 16,712 17,309 12,554 5,841 9,848 7,293 8,830 10, Source: SNL Kagan; Netflix reflects estimates based on 1/13, dec 13, dec 14; Hulu + reflected estimates based on dec 12/ 13/ 14; avg mvpd reflects annual monthly estimates as of 3/15; amazon reflects estimates in July 13/ 14. Includes both TV and movie titles.

8 In Fact, Regular Users Of On-Demand Prefer VOD Over Streaming Among users of VOD and Streaming Services, those who turn to VOD at least once a week, prefer PGM VOD 43% Streaming Services Source: MRI How People Use Media; TV Everywhere/VOD,A13-64 in pay tv homes 30%

9 PGM

10 More Than Three Out of Four MVPD Subscribers Use Video On Demand PGM 79% of Comcast Subscribers Use VOD Per Month 46% of Their Time Is Spent With Episodic TV Viewing Source: FierceCable 5/15 Comcast reported;

11 Consumers are Spending Over 9 Hours a Month Watching VOD Content; Spending a Significant Amount Of Time With Your Commercial Since Fast-forward Feature Is Most Likely Disabled Time Spent (Hrs Per Month) PGM Viewers spend 9.3 hours with VOD in 2014 up +16% v Source: Rentrak state of VOD report 2014; 9.3 in 2014 v. 8 hours in 2011

12 VOD Users Are More Likely To Be Younger Share of Audience VOD TV 56% PGM 29% 23% 19% 27% 11% 8% 9% 4% 13% K2-11 T12-17 A18-34 A35-49 A50-99 Source: Nielsen; VOD represents only nets Nielsen reports for bdcst+cable; 3Q15

13 They Tend To Be Higher Educated, Earn More And Hold Professional/Managerial Positions Share of Audience PGM VOD TV 31% 34% 31% 18% 18% 20% Earn $100K 4+ Years College POM Source: Nielsen; VOD represents only nets Nielsen reports for bdcst+cable; 3Q15

14 When Compared To Online Video Viewers, VOD Viewers Tend To Be More Upscale PGM Index To General Population VOD Viewer Online Video Viewer Master s Degree Married Children in Home HHI $75K HHI $150K Source: MRI Doublebase 2014; watched vod in past month movies/shows any; online video viewer= watched any movies/shows online;a18+

15 PGM

16 MVPD s VOD Creates Ad Lift & Generates More Engagement TV Viewer Who Saw Ad On VOD Day 4+ v. TV Viewer Who Saw Ad in General Environment PGM How much did you like the ad? How relevant is the ad to you? How much attention did you pay to the ad? +3% +22% +6% 74% 77% 58% 80% 62% 68% Likeability Relevance Attention General Viewing VOD D4+ Viewing Source: Canoe/Magid 2015 study; general adv= live, DVR or VOD anytime; VOD d4+= free on demand between 4th-7th day after first airing/ top 2 box; Insurance Brand; P18-49

17 MVPD s VOD Ads Have Stronger AD Impact Driving Consumer To Visit Brand s Website TV Viewer Who Saw Ad On VOD Day 4+ v. TV Viewer Who Saw Ad in General Environment PGM +14% +3% 31% +4% 17% 19% 22% 15% 19% Made me want to visit the brand website Made me want to consider purchasing/switching Made me want to search for information about the brand General Viewing VOD D4+ Viewing Source: Canoe/Magid 2015 study; general adv= live, DVR or VOD anytime; VOD d4+= free on demand between 4th-7th day after first airing/ top 2 box; Insurance Brand; P18-49

18 MVPD s VOD Generates Greater Brand Lift TV Viewer Who Saw Ad On VOD Day 4+ v. TV Viewer Who Saw Ad in General Environment PGM How much did you like the brand? How likely would you recommend the brand? How likely would you Consider purchasing? +15% +38% 73% +3% 49% 35% 36% 21% 24% Brand Opinion Intent To Recommend Intent to Purchase General Viewing VOD D4+ Viewing Source: Canoe/Magid 2015 study; general adv= live, DVR or VOD anytime; VOD d4+= free on demand between 4th-7th day after first airing/ top 2 box; Insurance Brand; P18-49

19 PGM

20 VOD Dynamic Ad Insertion (DAI) Canoe Enables National TV Network Programmers to easily insert advertising into their Video on Demand programming on cable operators VOD platforms Consumer picks TV program from cable VOD service PGM Consumer watches TV program Consumer watches ads inserted as ad breaks occur before, during, and after the program

21 Where Canoe is Coverage in 130 DMAs; 48 of the top 50; 35+M Households PGM = Canoe homes in DMA

22 Benefits of : Quality Programming PGM

23 Benefits of Familiar Business Model Sold by National Programmer Sales Teams % of Inventory goes to MSO for local Sold on CPM, like TV Targeting, like TV Viewed Ad Impression metric, like Digital Timely & Reliable Measurement Pay only on actual viewed ad impressions verified by Canoe Stable, accurate, single source measurement * Compliments TV plan's reach as DAI reporting separate from VOD in Nielsen C3/C7 rating Compliments Rentrak s overall VOD insights * MRC Accreditation of Canoe s measurement service in process. Pre-Audit, Committee Review, & Membership Review stages passed. PGM

24 Viewed Ad Impressions On The Rise Viewed Ad Impressions PGM 6,300,392,507 7,653,062, YTD Oct Source: Canoe, Oct 2015

25 A Look At Campaign Types PGM Campaigns Running in Q { Campaign Orders } Come from linear, digital and hybrid groups 12% 88% 988 Total Campaigns In 3Q15 { Category Types Include } Auto, QSR, Financial, Insurance, Technology, Pharma, Toy, Shipping, Hospitality, Food, Health & Beauty, Fitness, Theatrical, Retail, Pet Care, Home Improvement, Beer & Wine, Spirits, Armed Forces, Clothing, Travel, Home Furnishing, Packaged Goods, Healthcare, Outdoor, Gaming, Energy Drinks, Education, Industrial External client ad campaigns Source: Canoe, Oct 2015 Network Tune-In ads

26 Ad Opportunities Per Break PGM Average Ad Opportunities per Break 4.5 For campaigns that utilize { Frequency Capping } the average campaign caps at Impressions per episode Pre-Roll Each Mid-Roll Post-Roll Source: Canoe, Oct 2015

27 CONTACT US PGM If you would like additional video advertising information, insights or analysis please visit our website at or feel free to contact us directly: Sean Cunningham President & CEO Jason Wiese VP Strategic Insights Follow us on and like us on Danielle DeLauro SVP Strategic Sales Insights Evelyn Skurkovich Sr. Director, Strategic Insights

Time-Shifting: More Choices For Watching More Content

Time-Shifting: More Choices For Watching More Content Time-Shifting refers to the ability of a consumer to access premium TV content when, where, and how it is most convenient for them. The options for