Report: Content Rights Hindering TV Everywhere Growth

SCOTTSDALE: While the technology is in place to increase TV Everywhere offerings, the market is being slowed down by issues with securing the rights for the content, says ABI Research.

ABI Research finds that nearly one-third of U.S. Telco TV households are expected to access multiscreen or TV Everywhere services by the end of 2013. Most of these homes are already using advanced interactive features like remote programming a DVR. Cable is close behind due to its early lead, but the growth rate for these services is slower because of the diversity of cable households and services. Satellite operators are even further behind, due to slower starts and lack of in-house broadband services.

The greatest hurdle, however, comes from securing the rights to content for TV Everywhere. “The market is still developing with many of the early growing pains, like authentication, finally starting to take a back seat to the content,” commented senior analyst Michael Inouye. “In many respects the technology is in place to increasingly offer wider reaching TVE services. Securing the rights to broader content distribution is the primary remaining hurdle, but once standard metrics are developed the content floodgates are expected to open wider.”

“In the multiscreen and OTT space the MVPDs are moving at a relatively fast pace—rapid enough that in some instances the platforms have outpaced consumer awareness,” added practice director Sam Rosen. “Beyond consumer education a great deal of work remains to best optimize the user experience, one that satisfies consumers’ increasing penchant for on demand content but also ensures the content is adequately monetized. This objective is creating new opportunities for a wide range of companies within the greater content value chain.”