Due to increased competition from over-the-top (OTT) providers, traditional cable operators were forced to shake things up if they wanted to keep their customers satisfied. Because of this, operators started to add TV Everywhere (TVE) support, in which operators offered consumers limited content of their favorite TV programs so as not stifle their monthly subscriber revenue coming from their traditional “first screen” services.
Sounds like a pretty genius plan right? While TVE has indeed gained popularity – a recent ABI Research report titled “OTT and Multi-screen Services Research Service,” states that close to one in three U.S. households that subscribe to telco TV are predicted to access TVE services by the end of this year –most operators are not monetizing their TVE services.The majority of pay-TV providers and programmers are not seeing eye to eye on online video distribution deals. In fact, the two sides are very much at a crossroads as they try to determine the best agreements for Internet-distributed video, which begs the question – can TV Everywhere be monetized?
Advertising has been a thorn in TVE’s back. 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.
“We either don’t get any credit at all, or if we do get credit, it’s at a fraction of what we would have gotten if they first watched it live on the TV,” said, NBCUniversal’s EVP for Digital Distribution Ron Lamprecht.
If TV providers won’t buy the rights to broadcast shows online, how can TVE be monetized? Tell us what you think in the comments below.