Ad-supported and Paid Subscription Services Cannibalizing Digital Music Sales

More on the movement toward free content from Billboard:

“While industry executives initially refused to attribute the early signs of weakness in digital sales to the rise in streaming, in the second half of 2013 many conceded that ad-supported and paid subscription services did seem to be cannibalizing digital sales.

But the good news is that so far streaming seems to be offsetting the decline in digital sales revenue.”

Smart TVs — Sales Data

From the NYTs:

Manufacturers mistakenly believed that quality of viewing was the key consumer driver.

“In the year that ended in November, 22 percent of televisions sold in the United States were Internet-connected TVs, compared with 11 percent in the previous year, according to NPD . . . Mr. McQuivey pointed to the huge growth in mobile video consumption and video services like YouTube to show how consumers are gravitating to services with lower-quality pictures than conventional television. “They were wrong,” he said. “Turns out the reason people watch video is much more emotional and psychological.” . . . Nearly a third of tablet users in the United States are watching full-length television programming on the devices at least once a week.”

The FCC, Netflix, and the End of Network Neutrality?

“Newly anointed Federal Communications Commission Chairman Tom Wheeler said this week that it would be OK for Internet service providers to charge Netflix and other companies for a faster lane to consumers.

Wheeler’s stance is surprising given that it appears to contradict the FCC’s Open Internet Order, passed under his predecessor in 2010. That order, which sets out the country’s network neutrality rules, says that fixed broadband providers may not “unreasonably discriminate” against any type of traffic. The order specifically calls out pay-for-play arrangements as being potential violations.” — ars technica

Australian Streaming Doubles

“the proportion of Australians streaming or downloading TV, movie or video content online and not watching live broadcast TV at all has doubled, to 6 per cent of the population — or 1.2 million people.

The company says this trend is related to two larger trends: the increase in Australians streaming or downloading video, TV and movies online (from 36 per cent to 53 per cent of the population), and the growing percentage who choose not to watch any live broadcast TV (10 per cent, up from 6 per cent).

Drilling down into the types of online content that Australians are streaming and downloading, the data shows that in the six months to September 2013, 17 per cent of Australians streamed TV, including free-to-air (FTA), in an average four-week period, while 45 per cent used YouTube, and 28 per cent streamed video.” — Advanced Television

Pay-Per-View Growth in Australia

“Australians rented or downloaded TV shows and movies 11.3 million times – excluding free catch-up TV services  –  during the first half of 2013, up from 10 million times during the same period in 2012.

Australian content owners also collected revenues of more than $125 million for the 2012-13 financial year from services such as iTunes and Quickflix, an increase of 34 per cent from the year before.” — Financial Review

“TV is Dying” — Stats from Business Insider

Some stats from Business Insider:

“Aside from a brief respite during the Olympics, there has been only negative ratings growth on broadcast and cable TV since September 2011, according to Citi Research . . .

ll the major TV providers lost a collective 113,000 subscribers in Q3 2013.

. . . about 5 million people ended their cable and broadband subs between the beginning of 2010 and the end of this year.

. . . Tom Rutledge, CEO of Charter Communications, told Wall Street analysts he was “surprised” that 1.3 million of his 5.5 million customers don’t want TV — just broadband internet. “Our broadband-only growth has been greater than I thought it would be,” he said.

. . . Fewer households have TV because they are watching video on mobile devices instead.

Here’s the big picture: People are spending more of their time on mobile, and less of their time on TV.”

World series and NBA TV ratings are also declining.

50 Million Americans Consuming Second Screen Content Daily

stock-footage-television-static-noise-with-audio.jpg“According to the latest Nielsen data, 75 percent of smartphone and tablet users are engaging with second screen content more than once a month as they watch TV. And about half of those people are engaged with second screen content daily—that’s about 50 million people. This is good news for brands and advertisers, according to Nielsen’s Eric Ferguson, VP Media Client Services, because the additional exposure across screens is having a big impact on ad effectiveness.” — Nielsen

US Secretly Trying to Change CND IP Laws (again)

DSCN8103-1From Michael Geist’s blog:

“a Trans Pacific Partnership based on the U.S. proposals would signal a near-complete surrender of a made-in-Canada approach to intellectual property, leading to risks of lost Internet access, expansive border seizures, increased health care costs, and criminal liability for non-commercial infringement. The leaked text provides much need sunlight on the secret talks, confirming that Canada has thus far resisted many U.S. demands and that it has the potential to play a lead role in restoring some balance to the trade deal.”