Thursday, April 18, 2013

In EMEA, Operators Look to Monetize Thirst for TV Everywhere

TV Everywhere is continuing to see steady penetration into the Europe, Middle East & Africa (EMEA) markets, but operators are struggling to find ways to make it revenue-generating.

Parks Associates research finds that more than 70 percent of pay-TV subscribers in Western Europe are able to receive a TV Everywhere/multiscreen service. In Eastern Europe, multiscreen availability topped 25 percent of pay-TV households in early 2013.

And in Central Eastern Europe, Middle East and Africa (CEEMEA), a recent study from Discovery Networks and the Future Foundation showed that young and early adopters show an increasing appetite for new TV services that complement existing viewing behaviors.

Multiscreen living across technology platforms is becoming increasingly commonplace, while there is a growing appetite for off-schedule viewing via catch-up TV services. At the same time, there is a rising demand for short-form content that allows viewers to “snack” between bigger TV “meals,” the report found.

“It’s an incredibly exciting time for the TV industry and viewers who are relishing the greater freedom they have to access and interact with content across multiscreens and social media. This study shows people are watching more linear TV than ever before and how traditional TV viewing is being supplemented and enriched with new audience behaviors across CEEMEA markets,” said Caleb Weinstein, senior vice president and general manager of distribution for Discovery Networks EMEA.

Across CEEMEA, 52 percent have watched live television online in the last six months. The proportion is highest in Romania, at 64 percent, and lowest in Hungary, at 27 percent.
Second screening is in its early stages, though the penetration of new technologies is rising fast, the report noted. In Turkey, 21 percent and 15 percent of smartphone owners have used the device to watch live TV and TV on demand, respectively, ahead of the CEEMEA averages of 12 percent and 11 percent.

And, the Middle East is ahead of Central and Eastern Europe with around a third of tablet owners in Turkey (34 percent) having watched live TV on their tablets, and 28 percent in the UAE against the CEEMEA average of 25 percent.

“We’re seeing an increasing trend towards watching live TV online, using catch-up services, viewing on second screens and interaction with content and friends using social media,” said Weinstein. “At the center of the viewer experience stands great content with a clear opportunity to reach a larger audience, with an increased frequency through continued innovation across both programming and distribution.”

However, as in the United States, pay-TV operators are struggling with how to monetize the interest in the second screen and digital distribution. In EMEA, ARPU remains low, pushing many operators to test new business models such as a-la-carte pricing.

"Connected CE and digital media usage continues to grow in Europe, and cloud-based services, including music, video games and storage, will drive more data across broadband provider networks," said Stuart Sikes, president at Parks Associates. "However, several challenges unique to Europe, including low margins, competition, and regulatory and economic factors, create uncertainties on the best path to boost revenues.”

From the article, "In EMEA, Operators Look to Monetize Thirst for TV Everywhere" by Tara Seals.

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