TV Everywhere (TVE) has been touted as the cable industry’s savoir, helping it win back customers from over-the-top (OTT) providers such as Netflix and Hulu. In fact, a recent IHS study found that TVE is starting to expand beyond iOS and Android smartphones and tablets into high-growth platforms such as smart and connected TVs and video game consoles like Xbox. Yet, service providers are still hitting several road blocks.In continuation of our three-part series on the TVE’s top three biggest hurdles, let’s take a look at the third and final challenge below.
Advertising has been the preverbal thorn in TVE’s back, deterring it from reaching its full potential. During a recent panel at the Cable Show industry summit, TV executives voiced their concerns about online audience measurement, stating that unreliable ratings standards for mobile viewing is deterring them from paying for commercials on smartphones and tablets.
Marketing, or rather a lack there of, is another major challenge facing service providers. Providers are increasingly reluctant to spend marketing dollars on “free services.” Many big time providers, such as DirecTV, Verizon and Dish Network, are choosing not to invest in marketing their TVE services, instead focusing heavily on their products that drive revenue.
For example, Dish Network chose to invest in its set-top box the Hopper, instead of its TVE service. “Set-top boxes offer so much opportunity,” said Dish Network spokesman Aaron Johnson. “TV Everywhere is just one of the many things you can do with the Hopper.”
Although TVE is slowly cementing itself within the industry, these challenges will remain a road block until a viable solution is reached.