Measuring the revenue contribution of TV Everywhere
The industry needs to start acknowledging the revenue contribution that TV Everywhere makes to Pay TV operators, despite the difficulty in measuring it, and despite the fact that there may not even be a new discretionary fee you can point to. That is the view of Giles Cottle, Principle Analyst at Informa Telecoms & Media, who believes a workable, albeit imperfect measure is to take the time consumers spend using their multi-screen services as a percentage of all TV viewing, then use the same percentage of their total subscription fee as the value you can attribute to TVE.
Using this measure, if consumers spend an average of 5% of their viewing time on multi-screen and their total Pay TV fee is EUR 50, TV Everywhere is worth EUR 2.5. This is above and beyond the acknowledged benefits of increased loyalty. It is imperfect because as Cottle acknowledges, the content watched on different devices could have different value. So it does not take account of the fact that someone could be watching sport on their tablet but daytime television through the set-top box. He clearly believes that an imperfect measure is better than none, and says: “The point needs to be made: there is value in TV Everywhere.”
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