Friday, 17 April 2015

The average Netflix subscription watches over 50 hours on Netflix per month

“Video streaming pioneer Netflix Inc added more subscribers than projected in the United States and abroad during the first quarter, news that sent its shares up nearly 12 percent on Wednesday.
Net subscriber additions rose 22 percent year-over-year to 4.88 million in the March quarter, beating the company's forecast of 4.05 million.
The company that shook up television with original shows such as "House of Cards" has been aggressively building its overseas presence as growth slows in the United States. It launched services in Australia and New Zealand in the quarter and expects to start in Japan later this year.
Netflix added 2.6 million customers in its nearly 50 international markets in the quarter ended March 31, bringing the total to 62.27 million users worldwide.
Customers spent more time than ever watching Netflix, streaming 10 billion hours of programming in the quarter, the company said.”
Source:  Reuters, 15th April 2015
10bn hours over 60m subscribers = 166 hours per quarter
(So that’s over 50 hours per subscription per month…)
Note that each subscription can use up to six devices, so potentially multiple users and anecdotally people give their spare places to friends and family

Wednesday, 15 April 2015

57% of American broadband households subscribe to a paid online video service

"Access and entertainment research from Parks Associates finds 57% of consumers in U.S. broadband households subscribe to an OTT (over-the-top) video service, such as Netflix or Hulu Plus. The research firm, which will participate at the NAB Show next week in Las Vegas, reports the average U.S. broadband household spends $9 per month on Internet video, up from $7 in 2012.
Parks Associates is partnering with NAB to host the Super Session “Constant Cravings - Using OTT to Win the Next Generation of Viewers” on Monday, April 13, 10:30 a.m. – 12 p.m., in room S222 of the Las Vegas Convention Center. The session, with executives from CBS Interactive, Vubiquity, Discovery Communications, and Parks Associates, features an in-depth discussion of the challenges, opportunities, and threats for OTT video and pay-TV providers.
"The number of hours watching video content continues to rise, exceeding 36 hours per week in 2014, with Internet video accounting for 36% of that time, or approximately 13.3 hours a week," said Brett Sappington, Director of Research, Parks Associates. "Rather than cannibalizing the consumption of broadcast, pay-TV, and packaged media content, Internet video is increasing overall consumption levels for video.""

Daily screen usage in the US across generations

Source:  Getting Audiences Right, Millward Brown, March 2015

Changes in the preferred device when accessing video content

Source:  Digital Video & The Connected Consumer Report by Accenture, April 2015
(Lots more charts & data)
Press release from Accenture, 13th April 2015
"The research was conducted online in October and November 2014, with 24,000 consumers in 24 countries: Australia, Brazil, Canada, China, Czech Republic, France, Germany, India, Indonesia, Italy, Japan, Mexico, Netherlands, Poland, Russia, Saudi Arabia, South Africa, South Korea, Spain, Sweden, Turkey, United Arab Emirates, United Kingdom, and the United States.
The sample size in each country was representative of the online population, with respondents ranging in age from 14 to 55 and over. The survey polled respondents about their usage, attitudes and expectations related to digital device ownership, content consumption, broadband constraints, digital trust and the Internet of Things."

Facebook accounted for three quarters of global social network ad spend in 2014

"Boosted by solid growth in usage and advertising spend across major social networks, the global social network market continued to show strong growth in 2014, according to Strategy Analytics Global Social Network Forecast. Globally, Social Networks surpassed 2 billion users for the first time in 2014, of which Facebook accounted for 68%.
Ad spend on social networks grew a robust 41% globally in 2014 totaling over $15.3 billion, accounting for 11% of global digital ad spend. Facebook accounted for three-quarters of global social network ad spend in 2014, while Twitter accounted for 8%. In 2015, ad spend on social networks is expected to grow by 29%, totaling $19.8 billion.
“Overall, the social network market continues to show strong growth across all regions as the major social network platforms drive usage and engagement via improved integration of digital media content,” said Leika Kawasaki, author of the report. “While Facebook currently dominates the global social network market, its absence in China allows local social networks such as QZone and Tencent Weibo to gain traction in the rapidly expanding Chinese digital advertising market.”
Other Key Findings from this report include:
Nearly half (46%) of social network users reside in the Asia Pacific region.
China accounts for almost 25% of global social network users with 495 million users in 2014.
North America had the highest ratio of social network users to its population (64%) in 2014, followed by Western Europe at 55%.
The US accounts for the largest share of global social network ad spend (41%), totaling $6.2 billion in 2014, up 35% YoY.
The UK. is the second largest market for social network ad spend, accounting for 8.2% of global social network ad spend in 2014, just edging out China (8%).
The US had the highest social network ad spend per social network user at $31.37 in 2014. This is expected to grow 27% to $39.84 in 2015."

HBO vs Netflix

Source:  Redef, 5th March 2015
Other stats and charts in the full article

Tuesday, 14 April 2015

It took Apple 74 days to sell one million iPhones and 28 days to sell one million iPads

"To put [Apple Watch figures not yet revealed] in context: It took Apple 74 days to sell one million iPhones and 28 days to sell one million iPads. So even if sales are constrained by supply, it still likely represents a significant increase in momentum from previous new Apple products."
Source:  Mashable, 13th April 2015
Links -
74 days to sell 1m iPhones - 10th September 2007 (Press release also points out that it took nearly 2 years to sell 1m iPods)
(Note that the iPhone wasn't released in UK and other major markets until after this point)
28 days to sell 1m iPads - 3rd May 2010
Over 300,000 iPads sold in first day - 5th April 1010

Thursday, 9 April 2015

UK online ad spend hit £2.7bn in 2014; mobile was 23% of total

"Nearly four in ten UK households bought a tablet in the last year. Mobile now accounts for 23% of digital ad spend and 56% of social media spend.
The average UK household now owns 7.4 devices that connect to the internet. This drove advertisers to spend a record £7.2 billion on digital advertising in 2014 – according to the latest Internet Advertising Bureau UK Digital Adspend report, conducted by PwC. The report is accompanied by YouGov consumer data.
Among Britons online, smartphones are the most common internet-enabled device (1.7 per household)¹, followed by laptops (1.3) and tablets (1.2). Four in 10 (40%) households now own one tablet, one fifth (19%) have two, while 11% own three or more. According to the IAB/PwC data, tablet-dedicated ad spend alone² grew 118% to reach £87.4 million.
Digital advertising hits annual record £7.2bn – funding free services people increasingly rely on
Alongside the rise in internet-enabled devices, IAB/PwC data shows advertisers increased digital ad spend, like-for-like³, by 14% to £7.19 billion in 2014 – up from £6.26 billion in 2013 (an absolute increase of £936m).
“Advertisers are increasing their digital budgets to reach people as they go online through an increasing array of devices,” says Tim Elkington, Chief Strategy Officer at the UK’s Internet Advertising Bureau. “It’s a win-win for consumers, because digital advertising pays for the wide range of free online services they increasingly rely on in their daily lives, but don’t necessarily want to pay much for.”  
The YouGov study reveals the average British adult online is willing to pay a maximum of £1.53 a month for their email service, £1.33 to use search engines, £1.10 for video content, 92p for news websites, 88p for social media, 55p for online games and 52p for price comparison sites⁴.
Banking/finance is the area of people’s lives that would be most affected without the internet or mobile phone – cited by over half (51%)¹ of adult Britons online – followed by keeping up with current events (42%), shopping (38%) and their relationships with friends and family (37%).
Mobile ad spend up 63%; accounts for nearly one-quarter of digital advertising
With smartphones accounting for nearly eight in 10 (78%)⁵ handsets, mobile advertising grew 63% to £1.62 billion in 2014. Mobile now accounts for 23% of all digital advertising spend – up from 16% in 2013.
Consumer goods biggest display advertisers
The biggest spending sector on display ads in 2014 was consumer goods, which had a 19% share, followed by travel & transport (14%) and finance (13%). Consumer goods was also the biggest spender on mobile display ads – accounting for a 19% share, followed by entertainment & media (18%) and retail (14%).
Digital advertising formats
Boosted by video and social media, display advertising across the internet and mobile grew almost twice the overall digital rate (14.0%) at 26.4% to £2.27 billion in 2014. Display now accounts for 32% of digital ad spend – its largest ever share.
Elkington comments, “Display advertising's record share shows marketers are increasingly seeing online as a viable ‘brand awareness’ ad medium – as with traditional media – not just one for generating an immediate ‘direct response’. The internet has been characterised as the latter since the start due to its unrivalled measurability but this shows online advertising has come of age.”
Social media ad spend grew 65% to £922 million, with 56% (£517 million) accounted for by mobile.
Content and native advertising⁶ spend hit £509 million – 22% of digital display advertising.
Video advertising grew 43% year-on-year to £442 million in 2014 – compared to just £53m five years ago. Mobile video advertising, alone, grew 142% year-on-year to £164 million.
Paid-for search marketing increased 8.7% to £3.77 billion in 2014.
Classifieds including recruitment, property and automotive listings, grew 11.6% to £1.05 billion – accounting for 15% of digital ad spend.
“Despite digital’s continued stellar performance, there remains significant growth opportunities to be exploited on mobile and tablet devices,” says Dan Bunyan, Senior Manager at PwC. “These are the two areas where ownership and usage is extremely high but where advertising investment is disproportionately low. For instance, over half of web pages are viewed via mobile phones but they account for just 23% of digital spend.”
¹Source: YouGov Plc. Total sample size was 2090 adults. The survey was conducted online between 16-17th March 2015. The figures have been weighted and are representative of all GB adults (aged 18+).
²Tablet-specific advertising only (i.e. not including internet advertising displayed on a tablet by default).
³All growth rates except video and social media advertising are a like-for-like basis, i.e. only companies that submitted in 2013 and 2014 have been included in year-on-year growth calculations.
⁴All calculations performed by the Internet Advertising Bureau, based on YouGov consumer data
⁵Source: comScore, MobiLens, UK, 3 months ending Dec 2014.
⁶Content marketing = paid for sponsorship, advertisement features, in-feed & native distribution tools."

Wednesday, 8 April 2015

More than 1,000 apps for the Apple Watch were submitted in the first four days

"Cook also told employees that “more than one thousand apps were submitted in just four days last week when the App Store started accepting them, and the rate of submissions has only been climbing since then.” Apple started accepting Apple Watch app submissions last week."

Apple has more than 25% of the Chinese smartphone market

"Apple has stolen the No. 1 spot in smartphone sales in urban China from local rival Xiaomi, according to market researcher Kantar Worldpanel ComTech.
For the three months that ended in February, Apple's iPhone 6 was the top selling phone in urban China with a market share of 10.2 percent, up from 9.5 percent for the prior three months. The iPhone 6 Plus was the third best-selling phone just behind Xiaomi's Android-based RedMi Note in second place. With the two new iPhones as well as older models selling robustly in China, Apple jumped to the top spot with 27.6 percent market share overall, Kantar said Wednesday."

Mobile & tablets account for more than 50% of iPlayer requests

"Mobile and tablet requests for BBC iPlayer increased to 52% of all requests to TV programmes on the service in February – the highest level seen to date, according to the latest monthly update on the catch-up service from the BBC.
Tablets accounted for 29% of requests while smartphones accounted for 23%
BBC iPlayer had its biggest week ever beginning on February 16, driven by audience interest in the 30th anniversary episodes of soap opera EastEnders, which received 75 million requests, according to the BBC."