The Internet Is Not Designed For Broadcast Quality
The chief problem that streaming media service providers face is that ultimately the internet is not designed to deliver broadcast quality sound and vision.
"The internet video delivery ecosystem has significantly more potential points of failure than traditional broadcast TV. As people and providers make the shift to streaming, streaming entertainment will become the predominant form of TV consumption by 2022. This increased traffic only amplifies the complexity,” explains Bill Demas, CEO of Conviva. “Overcoming quality problems on that scale requires optimized delivery and infrastructure across multiple devices, platforms, CDNs, ISPs, servers and locations. The industry’s focus on quality is high, and we’ve measured significant improvements over the past year, but it’s still early in the journey."
Streaming device usage
Connected TV share of streaming hours by deviceOf all the screens through which people watch connected TV is the one most preferred. The TV received 56% of streaming hours; mobile devices received 23% and the PC 14%.
According to the Conviva data, Roku still dominates connected TV devices. Roku delivered 42% of connected TV viewing hours and 24% of all streaming hours. Fire TV was the second most used connected TV device, delivering 19% of TV streaming hours. Apple TV and Xbox delivered 10%, PlayStation 7%, and Chromecast 5%.
Peak usage grows, driven by sports
A sure sign that more people are relying on online TV services for all their video needs is the strong growth in the number of people watching a live event at the same time (so-called, concurrent streamers.) Conviva says that in Q1 2019 the average daily peak was 76% higher than in the same period last year. The peak number of concurrent streams for the quarter did not come in the moribund Super Bowl, but in the College Football National Championship between Clemson and Alabama. The peak was 38% higher than the peak in 2018.
Streaming services are growing at a breakneck pace around the world, and providers need to improve the quality of their offering to ensure they capture their share of advertising dollars. That’s one conclusion in the first-quarter “State of the Streaming TV Industry” report from streaming data intelligence and measurement company Conviva, published on Tuesday. Conviva collects data using sensors embedded directly in streaming video applications that allow it to analyze up to a trillion real-time transactions a day.Continue Reading
State of the Stream: Streaming television viewership is growing rapidly across the world and across devices, but the poor quality of advertising threatens viewer engagement and the return on advertiser investment, according to a new report from Conviva, a research and analytics firm.
The good news:
• Streaming TV viewership is up 72% year-over-year, while the rate of growth is accelerating -- 49% faster now than in Q1 2018.
• Virtual MVPDs like Hulu, DirecTV Now, Hulu, PlayStation Vue and Sling saw viewership increase 108% year-over-year.
• Streaming viewership peaks during live events, including the Super Bowl (up 157% from 2018) and March Madness (up 67%).
The bad news:
• "If an ad doesn’t play properly, it’s game over," Conviva's authors say in their report.
• Up to 47% of advertising attempts may not make it to the viewers’ screens as intended due to delays, buffering and playback errors.
• Delivering ads at "broadcast-level quality" should be "the first order of business" for every streaming TV provider.
The big picture: "Maintaining a high-quality viewer experience across content and advertising is increasingly important as streaming TV providers look to increase viewer retention and monetization."
Quality remains a key factor in the adoption of streaming, and buffering issues were down 34% year over year. But with ad dollars pouring in to reach over-the-top viewers, significant number of commercial are encountering streaming playback issues, hurting both the ad delivery as well as the overall viewing experience. Conviva says up to 47% of ads are failing.Continue Reading