Wible's Weekly - Ratings Evolution, Digital Spots, and Digital Game Troubles - Janney/MediaEntertainment-Tony Wible

Ratings Evolution amp8211 Nielsen is finally moving towards a system to measure viewing across digital and mobile platforms We believe this move will push much more content to TV Everywhere and VOD platforms While this should improve ratings for all companies we see disproportionate benefit for VIA and programming geared towards a younger demographic While they will measure OTT viewing it is not clear how this is relevant for those with no advertising and how it will work for programs with different ad loads It39s also not clear that this measurement is useful for some ad buyers given the potential for delayed ad viewing on the digital platforms that undermines time sensitive placements eg movie premieres Nielsen expects to have the new tools and technology in place in nearly 23000 homes before the start of the new broadcast season Ratings for OTT services such as NFLX are not included and would require NFLX to add code to their signals in order for Nielsen to pick it up Digital Troubles amp8211 Valve recently announced broad layoffs including reductions at Steam the industry39s leading traditional video game download platform The layoffs were extensive and include individuals supporting hardware development While the CEO maintains these changes will not shift their strategic focus one does need to question the future of Steam Box the consolelike digital platform and the broader health of Steam which could be suffering with the rest of the game industry as it copes with a dearth of titles Online Video amp8211 AOL is completing its transformation into an online video destination The company39s traffic has ranked second to YouTube which has traditionally focused on usergenerated content AOL currently streams 700 million videos a month to over 42 million unique viewers according to AOL executives Similar to MVPD39s or OTT providers AOL has struck content deals with networks including the BBC Discovery and Martha Stewart and is looking to bring more TV brands in We believe these trends imply increased viewership fragmentation as more high quality content becomes available outside of the TV ecosystem Conversely online success can sometimes generate interest from networks to distribute shows via traditional TV AOL Auto39s Translogic will be aired on NWSA39s Speed channel this year Video Advertising amp8211 Longerform video is likely to support a higher ad load with higher completion rates according to monetization firm FreeWheel The largest increase in ad load came in the longer form ampgt20 minutes videos which increased to 94 adsvideo 36 YoY vs 4 for midform 520 minutes and 22 for short form amplt5 minutes Viewers clearly value the long form content the most with a 93 completion ratio compared to 81 and 68 for midform and shortform videos respectively Ad completion increased for all three categories indicating that advertisers are finetuning their video strategy and convincing viewers to watch ad content from start to finish Mobile Ads amp8211 Mobile advertising is set to expand further as the number of advertising options increases With newer phone technologies tools and ad formats advertisers can now more effectively leverage location and context data to target consumers Mobile marketing is expected to exceed 2 billion in 2013 according to eMarketer Demand for mobile video ads is increasing with mobile video consumption 58 of mobile users prefer adsupported video content over subscriptions or payperview While ease of use scalability and targeting capabilities drive format choice pricing depends on available inventory with brands paying premiums to deliver immersive mobile experiences with rich mediaTony Wible joined Janney Montgomery Scott in 2008 and is a Managing Director covering the Media and Entertainment sector after spending the previous 10 years at Citigroup Investment Researchamp8212most recently covering the Broadcasting and Entertainment Services industries Tony can be reached at twiblejanneycom Janney Montgomery Scott LLC is a US brokerdealer registered with the US Securities and Exchange Commission and a member of the New York Stock Exchange the Financial Industry Regulatory Authority and the Securities Investor Protection Corp Disclosures may be reviewed at Wible39s WeeklyRead all Tony39s MediaBizBloggers commentaries at Wible39s Weekly JanneyMediaEntertainment Check us out on Facebook at MediaBizBloggerscomFollow our Twitter updates MediaBizBloggerThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaBizBloggerscom management or associated bloggers MediaBizBloggers is an open thought leadership platform and readers may share their comments and opinions in response to all commentaries

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Wible's Weekly - Ratings Evolution, Digital Spots, and Digital Game Troubles - Janney/MediaEntertainment-Tony Wible

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