TORONTO – Online ad revenue from broadcast and specialty networks is expected to increase to 4.1% of TV ad revenue in 2013, up from 3.8% in 2012, says a new report from Convergence Consulting..
On average, 19% of the weekly viewing audience watched one to two full episodes at a broadcaster or specialty network website in 2012, according to a report from Convergence Consulting’s newest release of its ongoing “Battle for the North American Couch Potato” series. That percentage, up from 17% in 2011, is expected to stay the same for 2013. “We attribute the projected leveling off in growth to Netflix, increasing PVR penetration, the rise of online advertising minutes associated with free full episode TV online, and more authenticated online full episode broadcast and specialty network TV behind cable, satellite, telco TV access players’ walled gardens,” reads the report.
An estimated 52,000 Canadian TV subscribers were added last year, reads the report, and an additional 70,000 subscribers are forecast for 2013 – both of those are a significant decrease from the 233,000 subscribers added in 2011.
Using the company’s own “TV Cord Cutting Model,” which takes into account annual subscriber additions, economic conditions, and the digital transition, the report estimates 250,000 Canadian TV subscribers cut their TV subscriptions in 2011-2012 and opted to watch their content on Netflix or other online sources, up from 178,000 in 2012. The number of Canadian TV cord-cutting households is estimated to reach 380,000 by the end of this year.
The report forecasts an estimated breakdown of market share for Canadian movie and TV rental in 2015 will look like this: VOD (cable, satellite, telco TV) will represent 33%, online subscription (Netflix) 23%, kiosk (Redbox, etc.) 21%, store 15%, online transactional 5%, and mail 3%.
Download movie and TV sales represented an estimated 8.6% of 2012 Canadian DVD/Blu-ray/download movie/TV sales, according to the report.
