TiVo: Pay TV's TVE Finally Gaining Traction

March 8, 2017
According to the 16th edition of TiVo's (NASDAQ:TIVO)quarterly "Video Trends Report," adoption of pay TV providers' TV Everywhere (TVE) ...

According to the 16th edition of TiVo's (NASDAQ:TIVO) quarterly "Video Trends Report," adoption of pay TV providers' TV Everywhere (TVE) offerings has taken a major upswing. TiVo says that since the launch of the survey in 2012, the company has seen slow growth in the adoption of pay TV providers' TV Everywhere offerings. However, for the last three consecutive quarters, respondents' adoption of TVE has seen a tremendous spike.

Among the findings:

  • Awareness: 49.1% of respondents are aware of their pay TV provider's app. TVE app awareness grew 2.0% quarter over quarter and 9.1% year over year. In Q4 2016, survey respondents became more aware of TVE offerings than in any quarter measured before, since the start of this question four years ago in Q4 2012.
  • Adoption: 30.9% of respondents access their pay TV provider's TVE app, a trend that saw increases of 2.8% quarter over quarter and 9.4% year over year. Just like app awareness, adoption of TVE apps is at its peak across all quarters, dating as far back as Q2 2013.
  • Engagement: 61.5% of respondents access their pay TV provider's TVE app on a weekly basis, an increase of 3.1% quarter over quarter and 16.1% year over year. Some 58.0% of respondents are engaged with content discovery functionality (search/recommendations) offered in their TVE app. Search is used by 46.7% of TVE users, an increase of 5.3% year over year. Recommendations is used by 27.5%, an increase of 2.8% year over year.

The report also indicated a double-digit decrease in how much consumers are willing to pay for their favorite 20 channels. This quarter, the ideal price respondents would pay for the top 20 channels dropped 12.3% among U.S. respondents and 12.0% among Canadian respondents, prompting concerns that linear TV's value may be dwindling as video content options increase.

The report, based on a survey of over 3,100 consumers, covers pay TV, VOD, pay-per-view, OTT, TV Everywhere, streaming devices and content discovery.

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