The explosive growth of TV connected devices is driving rapid change for the TV industry. ADI found that TV connected device (TVCD) sales are up 143% year over year (YoY). In addition, TVE time spent viewing on connected devices is up 149% YoY.

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Adobe Digital Insights Q2 2016 TV Everywhere Report

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Methodology
Analysis based on aggregated and anonymous data from Adobe Marketing Cloud
 Includes consumer video viewing data from 2015 and 2016
 Adobe does not use any personally identifiable information to generate this report
Sample information includes:
 1.6 billion TV Everywhere authentications in North America
 300+ different sites and apps acting as access points for TV Everywhere
Solutions Leveraged:
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Adobe
Primetime
Adobe
Analytics

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Key Insights
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1. TVE time spent viewing on TV Connected Devices has increased 149% YoY
2. TVCDs have become standard household devices with 143% sales growth YoY
3. An eSports app could be TVE’s gateway to the gaming masses
o Gaming consoles represent ~40% of TVCDs, but less than 1% of all TVE video starts
4. Android devices drawing new TVE viewers into the market
o Android share of TVE authentications up 40% YoY
5. TVE grows, but loses momentum after Q1 successes
o Authenticated viewing grew 78% YoY driven by unique visitor growth

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1 / TV Returns to the Living Room
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• Nearly half of time spent occurs on TVCDs - further cementing TVE as a home-based activity
• Browsers were the medium of choice last year, but TVE awareness and app development have progressed bolstering
viewership on TVCDs

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2 / Strong TVCD Sales Indicate Growing Market & Viewer Base
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Online sales for TVCDs up 143% YoY
 Strong, existing consumer interest in SVOD helping drive TVCD sales
 Projection: 56M U.S. households have subscriptions to at least one SVOD service(Strategy Analytics, end of 2015)

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3 / eSports: TVE’s Gateway to the Gaming Masses
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eSports app could entice gaming audience into TVE
 Gaining ground in broadcast TV
 Social mentions grew 116% (since June 2014)
• Large spikes: League of Legends & DOTA 2 tournaments
 Twitch: Had over 100 million UVM last year (WSJ)
TVE is missing a huge opportunity on gaming consoles
 Consoles make up ~40% of TVCDs, but only <1% of all TVE
video starts

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4 / Android Devices Drawing New TVE Viewers Into The Market
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Android, Roku & Macs see significant YoY Growth
Android share of TVE authentications up 40% YoY
 Early adopters of TVE were iOS viewers and it is now being used by a wider audience
 Chromecast growth likely drawing in more Android viewers
iOS share of TVE authentications down 18% YoY
 Share of authentications dropped due to weak viewer growth on iOS devices;
increase in viewing frequency not enough to offset

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5 / Programming Seasonality Showing its Effects
TVE growing but lost momentum
after Q1 successes
 Authenticated viewing grew 78% YoY,
but dropped 64% QoQ
 Strong growth spurred primarily by
unique visitor growth
 Major sporting events in Q3 expected
to bring TVE viewing to an all-time high
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6 / Device Viewing Frequency Remains Constant
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Frequency on all devices remains fairly
stagnant YoY:
 Viewers appear to have fallen into their routines
watching the same amount of videos per month
 There have not been any large disruptions in
technology to shift TVE viewing behaviors

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A Few Predictions
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1. Single sign-on: Devices like Roku and Amazon Fire will follow in the footsteps of
Apple TV by implementing a single sign-on solution, easing entry into TVE
2. Netflix vs Hulu: Programmers will withhold more content from Netflix to focus on
Hulu, their own TVE offerings and those of MVPDs – as Netflix continues to
accelerate investments in original programming
3. Pure-play AVOD services will struggle: why watch commercials when ad-free
services like Netflix and Amazon are a click away?
4. Skinny bundles: MVPDs will continue creating alternatives to traditional cable TV
but will struggle with the underlying economics

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Glossary
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 Viewing frequency: Video start per unique viewer
 Authenticated video: Video content that requires credentials from multichannel video programming distributor
(MVPD)
 SVOD: Subscription Video on Demand (i.e. Netflix, Hulu, Amazon Prime)
 TVCD: TV Connected device, which includes Apple TV, Roku, Chromecast, Amazon Fire, gaming consoles such as
Xbox and PlayStation, and other platforms
 Active monthly viewer: Viewer who authenticates at least once per month
 Monthly unique visitor: Total number of unique visitors for the month
 Access types:
• Browser includes Chrome, IE, Firefox, and Safari on both PC and mobile devices
• iOS app is an app on any Apple mobile device
• Android app is an app located on any Android mobile device
• Gaming console and OTT includes data from apps on Xbox, PS4, Apple TV, Roku, Amazon Fire TV, and other similar devices

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