Streaming Piracy to Total $52 Billion in Losses by 2022

Worldwide revenue lost to online TV and movie piracy grew from $6.7 billion in 2010 to $31.8 billion this year, and will increase to $51.6 billion in 2022, forecasts London-based Digital TV Research. Those figures don’t include online sports piracy.

Revenues from legitimate streaming sources overtook piracy losses in 2013, and since then the gap has been widening. Legitimate revenue totaled $6.1 billion in 2010, grew to $46.5 billion this year, and should hit $83.4 billion in 2022.

While the amount lost to piracy is increasing, Digital TV Research sees its growth rate declining thanks to government enforcement efforts and consumers getting easy and affordable legal streaming options.

While North America is currently the largest region for online piracy, Asia Pacific will take the lead in 2018. By 2022, that region’s piracy losses will double to almost $20 billion. The top five countries for piracy loss are the U.S., China, Brazil, the U.K., and South Korea. The U.S. will stay in the top spot in 2022, Digital TV Research forecasts, while India—currently in the eighth spot with $700 million in losses—will climb to number 3 in 2022 with $3.1 billion in losses. China’s efforts to reduce piracy will help legitimate revenues overtake losses by 2022.

This data comes from Digital TV Research’s October 2017 piracy report, which sells for £1200.00.

YouTube living room viewing up 70%

Viewers now watch more than 100 million hours of YouTube in the living room every day, up 70% compared to last year, according to Alphabet CEO Sundar Pichai.

Speaking on the Google parent company’s third quarter earnings call, Pichai said that YouTube users spend an average of 60 minutes a day on mobile – but noted that growth “isn’t just happening on desktop”.

YouTube’s living room expansion comes as the video service continues to invest in new subscription models – particularly in the US where its live television service YouTube TV is now available across two thirds of the country.

“YouTube Red, our first foray into the subscription market, is on track to release over 40 original shows this year,” added Pichai.

YouTube claims more than 1.5 billion users globally and Pichai said that ads on the video service “continue to deliver the highest viewability rates in the industry”.

“YouTube now has a 95% ad viewability rate, which is significantly higher than the average 66% viewability rate of other video ads,” he said, noting an “industry shift to six-second bumper ads”.

On the call, Pichai described YouTube as one of Alphabet’s “three big bets” – alongside Google Cloud and its hardware business, which recently launched a host of products including the Google Home Mini voice assistant and Google’s flagship Pixel 2 smartphone.

“YouTube continues to see phenomenal growth as the premier global destination where people go to watch video,” said Pichai.

“Three of the key areas we are focused on are strengthening the existing community, continuing to drive growth, and expanding our subscriptions business. On the community side, we are helping create meaningfully interactions that bring creators and fans closer together.”

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Ad-tech companies calling new Chrome browser a dictator

Google’s Chrome browser will automatically block certain ad formats, and that’s causing ad tech companies to scramble. The startup Parsec says it is completely shifting its business because of Google. Google says its actions are based on the recommendations of the Coalition For Better Ads, a cross-industry group focused on stemming the rise of ad-blocking Yet many in the digital ad industry aren’t clear on when these changes will take hold, what they need to do to prepare and who’s driving them.

Parsec, a three-year old startup, had found its niche. The company designed ads that people have to move out of the way with their finger order to keep reading a story on their mobile phone. The unique approach meant users would be forced to interact with an ad, instead of just letting it slip past as they read a story or click through a slideshow. The rough idea was that more people would be forced to stop and notice these ads, and ideally, they’d spend more time with them than the average banner.

Now, Parsec CEO Marc Guldimann says Google is blowing that business up.

Starting next year, when Google rolls out the latest version of its Chrome browser, those ads will be automatically blocked. It’s not just them. Also blocked are ads that automatically start blaring sound, and others like these that Google says make the experience of browsing the web worse. So Parsec is scrambling to ditch the old ad unit entirely – which means getting publishers, advertisers, and other business partners to run an entirely different, Chrome-approved, ad unit.

Here are the old Parsec ads:

Guldimann acknowledges that the company was always going to have to move away from ads that force interaction. But his complaint is that Google is using its massive power in the digital ad ecosystem, to play judge, jury, and executioner of ad-tech companies. He’s not clear, he says, on how Google made the decision it did or when and how it’ll be implemented.

“Right now, they are a benevolent dictator,” he said. “Let’s not joke ourselves. They own the browser. We’re playing in their world. They set the rules.”

Parsec isn’t alone in facing a sudden shift from a tech platform. Publishers too – especially those that had loaded up their sites with lots of videos that play automatically with sound- have to work out what the new Chrome restrictions will mean. Yet as the industry grapples with how to adapt to the coming changes next year, there’s loads of confusion over who is in charge, how the annoying ads will be identified and what the timeframe is for compliance. It all points to an uncomfortable position for Google, which is both a massive ad sales entity and the provider of the web’s most popular browser in the U.S.

Google says its just following the lead of the Coalition for Better Ads, a consortium of ad industry trade groups and big tech and media companies formed in September of last year.

The Coalition says it has conducted proprietary research on over 100 types of digital ads graded by 25,000 consumer respondents in the U.S. and Europe. That’s how it came up with dozen ad types that consumers find ‘annoying’ and that publishers should avoid. The list includes video ads that play automatically with sound and ads the cover more than a third of a person’s screen, for example.

It also includes “Full-Screen Scrollover ads,” or ads that “force a user to scroll through an ad that appears on top of content.” In other words, exactly the kind of ads Parsec bet the company on.

Google says with the coming Chrome update it’s just providing the hammer that the industry can use to apply these recommendations in one fell swoop. ” Thanks to the Better Ads Standards, the ad industry has 12 ad experiences that we know annoy Internet users and encourage people to opt out of ads entirely,” said a Google spokesperson.” Chrome has a long history of protecting users from annoying or harmful experiences. For example, like other browsers, Chrome blocks pop-ups in new tabs and shows warnings before malware pages. “


Given the rise in popularity of ad blockers, it’s clear that digital advertising needs to clean up its act. Many ad insiders, though, aren’t wild about Google deciding what ads are ok and which are not.

In fact, several executives told Business Insider they are of the belief that Google is the driving force behind the Coalition, and that it is funding and dictating the effort. They speak as if the Coalition is Google.

Both Google and the Coalition say this is not the case.

Parsec is moving forward with new ads that the company hopes combine consumer interruption with consumer respect. Guldimann estimates the company is about halfway through its transition to Chrome friendly ads.

The new Parsec ads:

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Views Need to Replace Impression-Based CPMs

Programmatic digital advertising was supposed to deliver a new level of accountability: Narrower targeting to drive more tailored messages, and performance metrics that inform what’s working and what’s not. But the promise of programmatic is rendered moot if ads are not viewed by human beings.

The economic framework of digital advertising on the open internet is still defined by impressions rather than views. Beyond Facebook and Google, there are thousands of quality domains and apps out there that offer superior, brand-safe content. For marketers to reach those audiences with full confidence, it is critical for programmatic technology to shift from impressions to views, with buyers paying if, and only if, their ads are viewed.

Indeed, for more than 20 years, digital advertising has been bought and sold based on CPMs. By definition, then, this universal digital currency values the number of impressions served rather than audience time and engagement, and the digital media economy has developed accordingly. Publishers are rewarded for quantity and scale—not the quality—of ad units.

Low CPMs and poor user experience

In 2011, according to an article on Adobe’s Digital Marketing Blog, CPMs declined a jaw-dropping 31 percent year over year, despite a corresponding 271 percent increase in the number of impressions served. “The key driver for CPM declines appears to be a wider play for less expensive inventory,” the author noted.

As CPMs for display ads decreased over time, publishers had to achieve scale to deliver enough impressions to preserve monetization across their digital channels, and media buyers and traders had to buy more impressions to spend their clients’ budgets. It’s easy to see how clickbait, ad farms, pops and other low-quality tactics thrived on the internet. These business models were rewarded, even as the user experience was degraded.

It’s also easy to see why consumers adopt ad blockers to avoid the barrage of unwanted ads. Or why they turn to their Facebook News Feeds to consume their preferred media in an environment designed to balance curated information with relevant marketer messages. In addition to this engaged audience, Facebook offers another critical advantage to marketers: It only charges for ads that scroll into view.

Until now, marketers have faced a stark choice: Spend their advertising budgets on Facebook, with the guarantee their ads would be viewed, or use programmatic on the open internet where perhaps half of those units are viewable.

The need for viewabiity standards

Brands and agencies are rightfully demanding viewability standards on the open internet. But most technology has not yet caught up. As eMarketer reported last year, many media agencies don’t even have line items in their systems to support anything other than CPM-based media buys. This leads to a manual reconciliation process, which adds one more task to a media trader’s already long list of tedious to-dos.

Technology companies that support a free and open internet have an opportunity to meet and exceed these marketer demands. For the past three years, AppNexus has been investing in machine learning-driven technology to help traders buy on a 100-percent-viewable basis, even when publishers are still defaulting to sell on CPMs. On each impression, AppNexus automatically predicts the likelihood of a view and pays the publisher per impression based on that prediction. The buyer only pays for impressions that are viewable.

Outcomes-based buying

Meeting the viewability standard is just the first step in achieving better economic incentives and measurement for digital ad effectiveness. The future will bring additional outcomes-based buying solutions that allow marketers and agencies to buy on the basis of tangible and verifiable results like video completion.

Automated outcomes-based buying will enable media traders to spend their time gaining a competitive advantage for their clients. Indeed, there is no one-size-fits-all strategy or metric for user engagement. Attention and engagement differ across channels (desktop, mobile) and formats (display, video, audio, native). Traders’ roles, in turn, will shift to delivering strategic outcomes as opposed to blanket impressions.

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Ai Will Bring Huge Changes to Live Video

Artificial intelligence (AI), deep learning, and natural language processing will be the next transformative technologies for streaming. They all will have an impact on streaming through all stages of production, from content creation to consumption. With the proliferation of AI in many different industries, there’s no doubt that it will be heavily used for live streaming on a wider scale in the near future.

Some of the companies and technologies that are making headway in this space include Google Cloud Video Intelligence, Conviva’s Video AI Architecture, Nvidia DLA, and IBM’s Watson technology. All of these technologies currently deploy AI in varying degrees—especially in the cloud—but we’ll soon see AI making inroads into other facets of streaming as well.

AI can help replace the production workforce behind the camera and even perform mundane and time-consuming tasks that involve labor-intensive content/data management. Currently, AI is being used in viewer metrics, network and technical troubleshooting, and ad serving, but there are other potential uses that remain virtually untapped.

Smart Camera Tracking and Video Frame Composition

Although there are currently several motion-tracking camera systems that allow automated tracking of moving subjects in front of the camera, they all require producers to place transmitters or sensors on the subject. AI will be able to track speakers, athletes, or entertainers without needing any type of additional hardware or sensors. Deep learning algorithms will analyze the video and follow people doing different activities, whether on a stage or in other environments, while simultaneously keeping them perfectly framed within the camera. Even now, this technology enables drones to follow athletes sprinting on a field and tracks the targets with unrelenting precision.

In addition, there is a direct correlation between creative visual storytelling and mathematics. The key components of video imaging—frame rates, focal lengths, aperture, and composition—are based on ratios and require at least a basic understanding of the math behind them to use them effectively.

The Golden Ratio (a proportion, prized for millennia by artists, architects, and scientists alike, in which the ratio of two numbers is the same as the ratio of their sum to the larger of the two quantities) can be programmed into deep-learning-based visual perception algorithms. Thus, AI-enabled cameras can be optimized to capture the most aesthetically pleasing video images for the human eye, a task that has traditionally been performed by camera operators. AI will eventually replace the need for a camera operator in most cases. In addition, AI will be programmed to track subjects using the golden ratio and the principals of visual hierarchy as its foundation.

Real-Time Video Switching

Deep learning algorithms are automating the editing and video creation process, and will assist in bringing AI to real-time video switching as well. Intelligent software will select optimum cameras shots or angles based on the content of the stream by using facial, emotional, gesture, clothing, body, color recognition, and other imaging data and cues. The program will determine what is in each frame of the stream and decide if it is a wide, medium, or close-up angle, along with choosing what subject matter or person it includes. The software will analyze the audio, video, and other aspects of the stream and switch a full event or show by recognizing faces, speech, movements, or events based on many other factors.

These auto-mixing features will be included in video switchers in the future to allow for a completely AI-switched production. It will eventually replace the role of a technical director for live events.

Computer-vision-based video switchers can work independently on embedded systems or devices on-premises using existing hardware. Cameras can even leverage a networked cloud server if needed.

Creating Automated Actions and Triggers for Real-Time Graphics, Animations, or CG Characters

A neural network can identify target objects or people with facial recognition, which can trigger production events such as generating a lower-third for a presenter at a conference. Facial recognition could also generate graphical statistics on a particular player on the field, or even allow control of a CG character to be inserted into a stream.

Cognitive technology will be prevalent in everything—sports, eSports, corporate communications, education, and live events. This will integrate data-driven assets and visualizations that change according to specific actions, times, locations, or dynamic data in relation to the stream.

Audio Analysis

Natural Language Processing (NLP) allows for automated live transcription, translation, interpretation, captioning, and audio description for use in meetings, lectures, or events. This would be useful for multinational corporations that need live captioning for town halls, product launches, or general communications in multiple languages for a worldwide audience.

Video Analytics and Metadata Extraction for Data Management

As companies get much more involved with streaming, the sheer volume of data generated from video is increasing exponentially. The information derived from this data can be leveraged beyond what humans can extract manually.

AI will interpret streaming content and extract metadata by generating descriptive tags, categories, and summaries automatically. This will allow for more intelligent analytics, content insights, and better content management, paving the way for efficient methods of monetizing video through targeted ads.

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F1 plans OTT service for 2018

Formula 1 has revealed plans to launch an online live streaming service in 2018 as it reviews its digital and broadcast strategies.

While the sport, under the previous management of Bernie Ecclestone, was wary of embracing new platform technology, new owner Liberty Media is keen to exploit digital opportunities, with a live streaming service from races set to be rolled out for the start of next season.

F1’s commercial chief Sean Bratches has admitted the sport needs to provide an ‘over the top’ offering if it was going to attract bigger future audiences. “We have an obligation to our fans, quite candidly, to ensure that they are able to access our content in any means they want,” he told Autosport F1 writer Jonathan Noble. “We would be derelict if we pursued a path for anything other than that.”

According to Bratches, the aim is to create platforms in the direct-to-consumer arena that engage fans and leverage F1’s assets – whether they are live races, archival or data.

The live OTT offerings will only be available in markets without pre-exiting television deals that have guaranteed exclusivity.

Equity analysts at investment bank Exane BNPP has reminded investors in a note on that it has long held the view that the new broadcasting disruptors would be exerting considerable pressure on established pay-TV operators.

The bank says: “F1 is quite unique as it’s one of the few sports that have truly global appeal. Thus, it would make a good fit for Netflix…. Netflix Sports next up? Liberty Media would partly hurt Sky by doing this as Virgin is its big UK competitor to Virgin. But it is Amazon that we see as the nearer-term threat to bid on sports – I noticed last night that Prime video is now the lead sponsor of the NFL Redzone channel and in Europe we see Amazon as a risk to bid on EPL rights at the next auction opportunity. English football appeals to a key demographic they lack and is the kind of differentiated exclusive content that will attract a critical mass to its platform.”

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Study: Netflix most preferred way to watch TV

“Goodbye​ ​broadcast,​ ​hello​ ​streaming”​ ​is​ ​the​ ​overwhelming​ ​response​ ​from​ ​a​ ​study​ ​about​ ​content​ ​and​ ​viewing​ ​habits produced​ ​by​ ​Qualtrics,​ ​a​n ​experience​ ​and​ ​insights​ ​company.​ ​Although​ ​the​ ​shift​ ​from broadcast​ ​television​ ​to​ ​on-demand​ ​streaming​ ​has​ ​been​ ​a​ ​talking​ ​point​ ​of​ ​media​ ​watchers​ ​for years,​ ​Qualtrics’​ ​study​ ​has​ ​produced​ ​some​ ​surprising​ ​data​ ​points.

Netflix​ ​is​ ​the​ ​Champ

Although​ ​Amazon​ ​Prime​ ​and​ ​Hulu​ ​put​ ​up​ ​a decent​ ​challenge,​ ​nobody​ ​has​ ​a​ ​greater​ ​hold​ ​on viewing​ ​audiences​ ​than​ ​streaming​ ​stalwart Netflix.​ ​Even​ ​live​ ​TV​ ​now​ ​lags​ ​behind.​ ​The​ ​data is​ ​clear,​ ​however,​ ​that​ ​most​ ​viewers​ ​do​ ​not​ ​limit themselves​ ​to​ ​a​ ​single​ ​option.

Q. In which of the following ways do you prefer to watch shows?
1. Netflix ​ ​ ​ ​ 30%
2. Live TV ​ ​ ​ ​ 23%
3. Recorded ​ ​ ​ ​16%
4. Amazon Prime ​ ​ 15%
5. Hulu ​ ​ ​ ​ 11%
6. Apps by station ​ 4%

Settle​ ​in,​ ​this​ ​could​ ​be​ ​a​ ​long​ ​evening

When​ ​it​ ​comes​ ​to​ ​TV,​ ​most​ ​people​ ​would​ ​prefer​ ​to​ ​binge​ ​on​ ​multiple​ ​episodes​ ​at​ ​a​ ​time​ ​than spread​ ​out​ ​in​ ​weekly​ ​installments.​ ​Around​ ​two-thirds​ ​of​ ​respondents​ ​had​ ​no​ ​interest​ ​in​ ​delaying their​ ​gratification​ ​and​ ​would​ ​prefer​ ​to​ ​just​ ​keep​ ​going,​ ​thank​ ​you​ ​very​ ​much.

Q. ​ Which do you most prefer when watching a show?
1. Binge watching ​ ​ ​ ​ 66%
2. Via weekly episode release ​ 34%

Netflix​ ​and​ ​Chill?​ ​Not​ ​really​ ​a​ ​thing

There​ ​are​ ​a​ ​few​ ​key​ ​things​ ​that​ ​would​ ​make​ ​viewers​ ​hit​ ​the​ ​pause​ ​button,​ ​but​ ​sex​ ​is​ ​not​ ​one​ ​of the​ ​top​ ​results.​ ​Only​ ​13 per cent ​of​ ​respondents​ ​would​ ​pause​ ​a​ ​show​ ​to​ ​get​ ​frisky,​ ​but​ ​bathroom​ ​breaks (22 per cent)​ ​and​ ​food​ ​(19 per cent)​ ​rank​ ​higher.​ ​Even phone​ ​calls​ ​and​ ​a​ ​reluctant​ ​need​ ​for​ ​sleep are​ ​more​ ​likely​ ​to​ ​get​ ​that​ ​pause.​ ​Two​ ​things that​ ​were​ ​less​ ​popular​ ​responses​ ​than​ ​sex? Texting​ ​(5 per cent)​ ​and​ ​family​ ​time​ ​(12 per cent).

Q. ​ Which of the following would make you pause a show while binge watching?

1. Bathroom ​break ​ 22%
2. Food ​ ​ ​ ​ 19%
3. Phone call ​ ​ ​ 15%
4. Sleep ​ ​ ​ ​ 14%
5. Sex ​ ​ ​ ​ 13%
6. Family time ​ ​ 12%
7. Text ​ ​ ​ ​ 5%

Bingeing​ ​happens​ ​late​ ​at​ ​night

It’s​ ​worth​ ​mentioning​ ​that​ ​sleep​ ​is​ ​the​ ​natural​ ​enemy​ ​of​ ​binge​ ​watching.​ ​You​ ​are​ ​most​ ​likely​ ​to find​ ​a​ ​binger​ ​in​ ​comfy​ ​sweat​ ​clothes,​ ​past​ ​1​am,​ ​with​ ​water,​ ​chips​ ​and​ ​pizza.​

Q. ​If​ you binge watch a show in a weekend, ​which of ​the following ​do ​you ​do ​to ​prepare? ​Check all that apply.
1. Put on sweats/comfy ​clothes ​ 24%
2. Finish ​chores ​ ​ ​ ​ 15%
3. Order take out ​ ​ ​ ​ 15%
4. Purchase treats ​ ​ ​ ​ 14%
5. Cook ​food ​ ​ ​ ​ 14%
6. Turn ​out the ​lights ​ ​ ​ ​ 13%
7. Cancel ​plans ​ ​ ​ ​ 3%
8. Turn ​off ​cell ​phones ​ ​ ​ ​ 2%

Q. ​ Which ​of the ​ following ​have ​you ​done ​because ​you ​couldn’t ​stop ​watching ​a show? ​Check all that apply.

1. Watched past 1am ​ ​ ​ ​ 24%
2. Watched during dinner ​ ​ 19%
3. Stayed up all night ​ ​ ​ 15%
4. Missed planned workout ​ ​ 8%
5. Bailed on social ​plans ​​ ​ 8%
6. Didn’t ​brush teeth ​ ​ ​ ​ 7%
7. Watched ​using the bathroom ​6%
8. Didn’t eat ​ ​ ​ ​ 5%
9. Watched at work ​ ​ ​ ​ 4%
10.Missed a class ​ ​ ​ ​ 2%
11.Called in sick to work ​ ​ 1%
12.Watched while driving ​ ​ 1%

The​ ​life​ ​of​ ​the​ ​typical​ ​binge​ ​watcher

The​ ​typical​ ​binge​ ​watcher​ ​is​ ​an​ ​unusual​ ​creature.​ ​Almost​ ​two-thirds​ ​are​ ​happy​ ​and​ ​optimistic about​ ​their​ ​lives,​ ​and​ ​60 per cent per cent ​are​ ​satisfied​ ​with​ ​their​ ​work-life​ ​balance.​ ​However,​ ​they​ ​must​ ​have learned​ ​that​ ​money​ ​isn’t​ ​everything,​ ​because​ ​50 per cent ​of​ ​the​ ​binge​ ​watchers​ ​make​ ​less​ ​than​ ​$40k per​ ​year.

● 50 per cent​ of binge ​watchers ​make ​less ​than ​$40K ​per ​year
● More ​than ​65 per centsay ​they are ​satisfied ​with ​their ​life, ​happy and optimistic
● 60 per cent ​say ​they are ​satisfied ​with their ​work-life ​balance
● Over ​60 per cent ​are ​not ​religious

There’s​ ​always​ ​something​ ​good​ ​on​ ​Netflix

Among​ ​Netflix’s​ ​original​ ​series,​ ​Stranger​ ​Things ​is​ ​the​ ​most​ ​popular​ ​with​ ​22 per cent of​ ​viewers​ ​having​ ​watched​ ​the​ ​show.​ ​Orange​ ​is​ ​the​ ​New​ ​Black ​is​ ​a​ ​close​ ​second​.

Q. ​Which of these ​Netflix​ shows have you watched?
1. Stranger ​Things ​ ​ ​ ​ 22%
2. Orange Is The New Black ​ 20%
3. Other ​ ​ ​ ​ 15%
4. House of Cards ​ ​ ​ ​ 14%
5. 13 ​Reasons ​ ​ ​ ​ 12%
6. How to Make a Murderer ​ 10%
7. The ​Crown ​ ​ ​ ​ 4%
8. The ​Keepers ​ ​ ​ ​ 3%

A​ ​big​ ​chunk​ ​of​ ​people​ ​watched​ ​all​ ​of​ ​Stranger​ ​Things season​ ​one​ ​in​ ​under​ ​three​ ​days​ ​(42 per cent).​ ​The​ ​total​ ​percentage​ ​of​ ​people​ ​who​ ​watched​ ​the​ ​series in​ ​less​ ​than​ ​a​ ​week​ ​was​ ​a​ ​robust​ ​73 per cent.​ ​Only​ ​10 per cent​ ​of​ ​viewers​ ​took​ ​three​ ​weeks​ ​or​ ​more​ ​to complete​ ​the​ ​first​ ​season.

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Netflix’s changing user base

Not only has Netflix’s audience grown significantly in the past two years, but the composition of its user base has changed dramatically as well, according to a DeepProfile study from consumer intelligence research platform CivicScience.

Back in May of 2015, CivicScience published a detailed study on the profile of Netflix users, as well as people who didn’t use the service yet but appeared poised to do so. Among a range of findings were signs of an emerging segment of parents signing up around that time.

Two-and-almost-a-half years later, Netflix Nation has grown and evolved in ways which CivicScience says it couldn’t have imagined back then. Today, approximately 50 per cent of US adults watch streaming content on Netflix at least occasionally, while 29 per cent watch a few times per week or more. In October of 2015, only 39 per cent of US adults watched Netflix and 23 per cent watched weekly. “That’s an addition of several million new Netflix junkies in a fairly short amount of time,” notes the firm.

The DeepProfile report details the demographic and psychographic differences between Netflix’s current user base, its user base in October of 2015, and the general US population. CivicScience compared the two groups across hundreds of dimensions, from their gender and income, to the TV genres they prefer, to the types of restaurants they frequent.

Among the findings:

– Today’s Netflix population is much more gender-balanced, showing a rise in the number of male users over the past two years.
– The average income of Netflix users has risen significantly.
– One of the biggest has been among parents, who represented only 32 per cent of users in October 2015 but 48 per cent of users today.
– New Netflix users are much more heavily influenced by social media in their shopping and entertainment decisions, which could explain why they gave in to the Netflix seduction in the first place.
– Early Netflix users were much more price-sensitive than the new generation, suggesting that the platform’s early appeal was its cost relative to other forms of TV.
– New Netflix users are more likely to be foodies, following trends in food and cooking, cooking dinner for their families, and researching recipes online.
– Both groups watch TV less than average overall.
– New Netflix users are much more likely to be concerned about things such as climate change and buying environmentally-friendly products.

CivicScience founder and CEO John Dick also took a closer look at the consumers who told the company they don’t currently watch Netflix but are planning to. This group represents about 8 per cent of the current US population, up from 7 per cent in the 2015 numbers. “No surprise, they’re more likely to be older, particularly 55+. But they’re also more likely to be unemployed, meaning that they could just be waiting to subscribe to Netflix once they have a steady income. People who are documentary fans over-index in this ‘planning to’ segment, which could provide a window into what will push them over the fence. The next wave is much more likely to come from urban centres,” he suggests.

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Nielsen Will Publicly Share Ratings for Netflix Shows

Ever since House of Cards premiered in 2013 on Netflix, the TV industry has been frustrated by the streaming service’s refusal to share ratings data for its content. Netflix ratings have become the industry’s white whale, with many companies attempting to nail down the company’s metrics, but seemingly failing to do so in any precise way.

That is finally about to change, as Nielsen says it will now be measuring, and publicly sharing, Netflix ratings data, while allowing networks and studios to finally get a sense of how the audience for the streaming service’s shows like Stranger Things, Orange Is the New Black, 13 Reasons Why and American Vandal measures up to broadcast and cable series. The company has launched SVOD Content Ratings, a syndicated service that measures content from subscription video on demand services, though out of the gate, the offering will only provide ratings for Netflix content.

Nielsen’s SVOD Content Ratings will provide clients the same ratings and demo data for Netflix’s original shows, movies and acquired content that they receive for linear TV programs, broken out both by season and by episode.

Initially, the offering will only provide ratings for Netflix content, and will be restricted to programs viewed on connected TV devices like Roku, Apple TV, video game consoles and smart TVs (which accounts for around 75 percent of SVOD viewing).

SVOD Content Ratings, which Nielsen has been testing with select clients since August, relies on data from Nielsen’s national panel, which is comprised of 44,000 households and more than 100,000 people.

Eight TV networks and production studios, including A&E, Disney-ABC, NBCUniversal, Lionsgate and Warner Bros., have already subscribed to the new service, and the company said more will be added in the coming days and weeks. “We’ve got a number of clients in various stages of subscription and evaluation,” said Brian Fuhrer, Nielsen’s svp of product leadership.

Nielsen has been measuring streaming content since 2014, but previously, studios working with Nielsen only had access to metrics about their own shows. They were also only permitted to use the data internally, which meant they couldn’t discuss it with the press or use it in negotiations. Now they’ll have access to ratings for all content measured by Nielsen.

“The question I always get is, ‘How did my program do?’ And the second question is, ‘How did it do in comparison with everybody else?’ That second key question is what we’re trying to answer,” said Fuhrer.

While the ratings metrics will be similar to what Nielsen collects for linear shows, it will take as much as three or three weeks for the data to be processed. “It’s definitely not an overnight process,” said Furher of the ratings, which will be made available each week. He added that Nielsen’s clients have said they would rather the data be accurate and complete rather than rushed, “so that’s what we’re working through to be able to do that.”

Initially, the SVOD Content Ratings will measure viewing via connected TV devices only, and the company will analyze its data approximate to how much viewing is done on mobile devices.

Hulu and other providers consistently say that around 75 percent of their viewing occurs via a connected TV device. “I wouldn’t be surprised if that was a low estimate, particularly for the high-value content,” said Fuhrer. “People like to watch content on a big, high-quality screen.”

In its infancy, SVOD Content Ratings won’t be measuring every single piece of content on Netflix. “We’re continuing to build our library, so we don’t have a comprehensive library of everything on Netflix right now,” Fuhrer said. “What we’re focusing on right now is the most-viewed assets out there. It breaks down into three categories: movies, Netflix originals and back seasons of TV.”

Netflix, which has always refused to share any ratings metrics, has tried to impede Nielsen’s measurement efforts by stripping out the company’s digital watermarks from its content.

For its SVOD Content Ratings, Nielsen captures a content’s video signature, compares that against a high-quality video signature that it holds for each program and loads that information into its crediting engines to determine viewing among its national panel.

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UK Video Ad Spend Overtakes Display

Advertisers in the UK are now spending more on video ads than display ads for the first time ever, according to the Internet Advertising Bureau and PricewaterhouseCoopers’ Digital Adspend report. The latest figures put video ad spend at £699 million for the first half of 2016, while display advertising lagged behind at £685 million.

If current growth trends keep up, the narrow lead video has gained over display can be expected to widen quickly. Back in 2014 display spending was more than double that of video, but strong growth in video has seen it quickly make up the difference; the H1 figures for 2017 represent a 46 percent year-on-year spending rise for video, but a less than 2 percent rise for display.

Video’s strong performance can be put down to a couple of factors. Mobile spending generally has risen sharply in recent years, now accounting for 43 percent of all digital advertising compared to 22 percent in 2014, and mobile makes up 70 percent of all video spending. Advertisers have also been buying heavily in new video formats – spend on outstream/social in-feed nearly doubled in the last year making it now the most popular format, overtaking pre-and post-roll ads.

The IAB’s CEO Jon Mew says these spending changes show advertisers adapting to trends in how audiences consume content. “The time people spend watching online video has grown tremendously over the last few years, so it’s little wonder that video is now the fastest-growing ad format as advertisers look to tap into the changing way people consume content,” he said in a press release.

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