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One-Third U.S. Telco TV Households Expected to Access Multiscreen Services in 2013

SCOTTSDALE, ARIZ.—Nearly one-third of U.S. Telco TV households are expected to access multiscreen or TV Everywhere services by the end of 2013, and the majority of these already use interactive features like remote programming a DVR, according to ABI Research’s OTT and Multi-screen Services Research Service.

Cable is close behind due to its early lead, but the growth rate for these services is slower because of the greater diversity of cable households and services (not all service providers offer TVE). Satellite operators are further behind, due to slower starts and lack of in-house broadband services, but offer some novel experiences like Dish’s Sling place-shifting technology.

“The market is still developing with many of the early growing pains, like authentication, finally starting to take a back seat to the content,” said 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.”

Consumers also need further education about TVE services, especially with regard to content availability and fragmented device support. Apple’s iPad continues to be the most supported non-computer TVE device in the U.S. iOS and Android smartphones and tablets represent the majority of device support, likely due to the importance of mobility for this sector.

“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,” said 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.”