A newly released SNL Kagan study analyzing the mobile programming industry found that the ability to access the full HTML Internet, over-the-top (OTT) video services, apps and TV Everywhere from mobile devices has reduced the incentive for consumers to pay for dedicated carrier-based mobile video services.
With an eye on preventing an exodus to device-agnostic OTT services like Netflix and Hulu Plus, multichannel operators have rolled out TV Everywhere apps, but these have so far been met with a lukewarm consumer response.
For now, OTT apps like Hulu Plus and Netflix are resonating more with consumers than are TV Everywhere apps from multichannel operators.
According to our research, free video iPad apps from major content owners including Disney, Viacom and Time Warner are doing great; however, paid video apps are not doing as well. This is shifting emphasis towards video app advertising to generate revenue.
Overall, however, many content owners are starting to view mobile as a necessary churn reduction tool to complement existing multichannel subscription services, and less as an opportunity to generate new revenue.
A number of companies we used to track for this report were acquired or shuttered in 2011. We think the shakeout is healthy and reflects internal problems at these businesses rather than softness in demand for mobile video services.
In 2011, companies that focused on providing the technologies that enable mobile video delivery once again reported the strongest revenue growth.
Other notable highlights from the report include:
*Can HBO go it alone with HBO GO?
*Our database of the top 18 Second Screen/Social TV apps including GetGlue, IntoNow and Viggle
*What are the most popular video apps on iPhone and iPad available from major content owners?
*MetroPCS' upcoming Dyle TV launch
About SNL Kagan
SNL Kagan, a division of SNL Financial LC, is a comprehensive resource for financial intelligence in the media and communications sector, including the broadcasting, cable, entertainment, motion picture, telecom, wireless, satellite, publishing and new media industries. The SNL Kagan suite of products integrates breaking news, comprehensive data and expert analysis into an electronic database available online and updated around the clock. For more information, visit http://www.snlkagan.com.
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