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The move towards three-screen video services
Posted: 06-Feb-2009 [Source: The Diffusion Group]

[TDG reports on interest among consumers and providers in offering bundled video programming on TVs, PCs and mobile devices.]

Dallas, TX -- Recent spikes in both online and mobile video consumption -- driven primarily by hardware and software innovations which make "anywhere, anytime" video viewing possible and practical -- have created an opportunity for service providers to offer an integrated three-screen video service. Though hesitant to speak publicly, most U.S. operators are no doubt eyeing this opportunity -- especially those with expansive facilities who can act from a position of power.

"This is the trifecta of video services," notes Michael Greeson, president and principal analyst at TDG. "Though very few have the assets and acumen to pull it off, rest assured every major cable, satellite, and mobile operator is actively pursuing a three-screen strategy. As our new research suggests, they'd be crazy not to."

As it stands today, consumers who want to watch TV programming and other video on their TVs, PCs, and mobile devices end up signing contracts with three different providers, receiving three different packages of content, and paying three different fees. At some point, notes Greeson, operators must integrate or "bundle" these disparate services into a single offering with one price, one point of customer contact, and one integrated electronic program guide. And the optimal time for market entry is fast approaching.

Other unique insights from TDG's new report include the following:

- Approximately one-fourth of adult broadband users in the U.S.(approximately 35 million) are (to varying degrees) likely to sign up for a three-screen video service at some price between $65 and $105 per month.

- More than half of Three-Screen Intenders are between the ages of 25 and 44, though Intenders between the ages of 18 and 24 are significantly more enthusiastic.

- The three-screen concept is not as far ahead of the mainstream temperament as many think. A sizable portion of Early Mainstream consumers are poised to embrace a three-screen video offering, not just Early Adopters.

- Three-Screen Intenders are 21% more likely than Non-Intenders to use a game console, twice as likely to use an iPhone, and twice as likely to have a TV connected to their home network.

- 92% of Intenders view online video on a weekly basis, compared with 78% of Non-Intenders.

- Cable operators are preferred as a three-screen provider almost two-to-one over satellite TV providers.

- Real-time weather, news, and sports programming (both local and national) are among the content types most favored for a three-screen video service.

Assessing Consumer Demand for Integrated Three-Screen Video Services is the first large-scale quantitative research focused exclusively on the topic of three-screen video services. In addition to determining optimal price points and content packaging, the report characterizes the key segment of consumers interested in signing up for such a service -- Three-Screen Intenders or "TSIs."

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