Analyst Blog

“Friday Night Baseball” Returns on Apple TV+ for the 2023 MLB Season

Wed, 22 Mar 2023 04:06:52 +0000

Today Apple announced the return of “Friday Night Baseball” on Apple TV+ for the 2023 season and is once again focused on the consumer experience first, including discovery and interactive features. In collaboration with Major League Baseball (MLB), Apple TV+ subscribers will be able to watch two unrestricted weekly headlining games over 25 weeks beginning on Friday, April 7, 2023, alongside exclusive news, and supplemental content. Apple has also made a deal with DirecTV to deliver “Friday Night Baseball” to more than 300,000 public locations across the United States including but not limited to bars, restaurants, and hotel lounges.

To reach more fans than ever, these weekly games will be available in 60 countries and regions as well as on any device that supports the Apple TV+ app. Apple TV+ subscribers in the United States and Canada will have access to exclusive live content and coverage such as the “MLB Big Inning”, “Countdown to First Pitch”, “MLB Daily Recap”, and “MLB This Week”.

Baseball fans will additionally be able to follow personalized news and MLB highlights across the Apple ecosystem of devices and services. Apple News subscribers will enjoy a personalized feed of highlights within the “My Sports” section of the News app while Apple Music+ subscribers will find exclusive playlists of walk-up songs from MLB players alongside other related playlists.

This is a big move for Apple and represents an alliance that will help Apple TV+ acquire more viewers while gaining another important edge forward in the ever-intensifying streaming wars. Content is king and sports content is the most valuable and unique content a service can acquire. As a technology company, Apple is also uniquely equipped to provide a better interactive fan experience from a linear broadcast.

Apple TV+ is focusing on sports content to help the service retain and increase its subscribers. With over 21 million US subscribers as of Q4 2022, according to Parks Associates OTT Market Tracker, the streaming service has successfully maintained subscribers through the initial free trial of a small library of highly desirable content, such as Ted Lasso.

According to Parks Associates’ consumer research, the three most popular sports watched in the US are football (both professional and college), basketball (NBA), and baseball (MLB). Currently, 50% of internet households who watch sports content watch MLB games throughout the season.

A byproduct of the fragmentation of online media rights is the consumer’s need to complete multiple steps to access their desired content. Baseball is the most fragmented sport with distribution of games typically going to many different broadcasters. It is harder than ever for baseball, and sports fans generally, to find where games air on traditional TV or a streaming service.

While the Apple and MLB deal does not solve for the discovery frustration for fans, it does enable Apple and MLB to expand its base across the globe and not just fans in the US. Apple TV+ relies primarily on the strength of its original programming, adding live sports to the service gives Apple TV+ a new and unique asset from which to expand its base, especially beyond its younger segment. According to Parks Associates research the average age of Apple TV+ subscribers is 40 years old, significantly younger than the reported average MLB fan’s age of 57. But this extra content and availability comes at a cost to consumers. Last year the games aired for free. This year it will be $6.99 per month for a subscription to Apple TV+ at a time when households are already feeling financial pressure.

To learn more about recent events within the entire sports media and OTT landscape, check out the OTT & Sports: Services and Strategies for Growth Industry Report written by Parks Associates’ Senior Contributing Analyst, Eric Sorensen.

CONNECTIONS 2023 – Platinum Sponsor – Bitdefender

Tue, 21 Mar 2023 00:00:00 +0000

Bitdefender is participating as a 2023 Platinum Sponsor in CONNECTIONS™: The Premier Connected Home Conference, hosted by Parks Associates, taking place over the dates of May 23 – 25, in Frisco, TX. CONNECTIONS™ 2023 features an in-person conference May 23-25, with virtual sessions on July 20 and October 5, focusing on the smart home market, home security, and new services for the home.

Bitdefender is a cybersecurity leader delivering best-in-class threat prevention, detection, and response solutions worldwide. Guardian over millions of consumer, enterprise, and government environments, Bitdefender is one of the industry’s most trusted experts for eliminating threats, protecting privacy, digital identity and data, and enabling cyber resilience. With deep investments in research and development, Bitdefender Labs discovers hundreds of new threats each minute and validates billions of threat queries daily. The company has pioneered breakthrough innovations in antimalware, IoT security, behavioral analytics, and artificial intelligence and its technology is licensed by more than 150 of the world’s most recognized technology brands. Founded in 2001, Bitdefender has customers in 170+ countries with offices around the world. For more information, visit www.bitdefender.com.

Connect with Bitdefender on Facebook, Twitter, LinkedIn, and YouTube.

2023 CONNECTIONS™

Virtual Sessions
Jul 20 2023 New Era of Home Services
Oct 5 2023 State of the Home Security Market

2023 In-person Conference | MAY 23-25, Omni Hotel, Frisco, Texas – co-located with the Connected Health Summit
May 23 Pre-show Research Workshop: Modern Living
May 23 WELCOME TO CONNECTIONS™
May 24 Modern Living: Technology
May 25 Market Expansion

Sports are a multi-billion-dollar business

Tue, 21 Mar 2023 00:00:00 +0000

Join Parks Associates on April 5 for a *sneak peek* at our OTT Video Market Tracker, profiling hundreds of OTT services, as well as estimating subscriber numbers for services. Check out an excerpt from our recent report.

Content is king and sports content is the most valuable and unique content a service can acquire. Broadcast sports are a multi-billion-dollar business, and because of advancements in technology, viewers can experience an astonishing level of visual and acoustic clarity. Video cameras have become so accurate that they can visually show the way a ball spins after being hit by a bat; players can now hear conversations taking place both on the field and on the sidelines.

Parks Associates monitors and tracks over 50 sports-specific OTT streaming providers in the OTT Video Market Tracker. Advanced technologies, increased use of connected devices, sports rights negotiations, and continued interest by fans in watching content on different devices continue to drive the adoption of sports OTT services.

According to studies on identification and fandom, sports fans have better self-esteem and general happiness. Fandom binds fans to other like-minded people, which satisfies a fundamental need to belong. Parks Associates finds that 21 million US broadband households watch live sports online.

Sports content is fragmented. As more sports services enter the OTT market and sports rights shift online, the user experience for locating events is becoming more difficult. Parks Associates research shows that nearly half (49%) of all sports fans are willing to pay up to $20.00 per month to get access to all of their favorite teams and leagues via a single service. Pricing strategies are a critical aspect of DTC launch strategies.

Sports fans are engaging with interactive features. If the chance presents itself, the majority of fans that interact with sports content would engage with an interactive element inside a live broadcast or utilize hash marks and timeline features to navigate a live stream in order to observe goals or highlights. According to Parks Associates findings, 48% of sports fans have engaged in at least one interactive feature while watching sports.

Sport media rights holders want to get games in front of as many eyes as possible. The impact of online-only and streaming services to reach specific audiences is enormous. In order to compete with the digital titans, media conglomerates with conventional and online services are shifting finances and resources to launch, improve, and develop streaming services targeted at sports fans.

This is an excerpt from Parks Associates research report, OTT & Sports: Services and Strategies for Growth.

Traditional pay TV is losing the stronghold it once had on sports media rights. Streaming providers, in search of original and exclusive content, look to live sports to attract and maintain their user bases. The sports consumer's experience is moving online and away from traditional pay TV, resulting in yet another sector of the pay-TV demographic to cut the cord. This report examines key trends in sports content and provides an overview of the pay-TV sports media landscape, OTT sports services, direct-to-consumer trends, and the sports fan’s viewing experience. The report includes a five-year forecast for OTT sports service subscriptions and revenue in the US.

Thanks for reading our research - we would love to work with you and help you grow your business by leveraging the best, most reliable data and insights in the market. Reach out to me today if we can help you grow your business.

Home Security (+ Smart Home) and Consumer Choice

Thu, 16 Mar 2023 00:00:00 +0000

If you are going to ISC West and have new products to highlight, please be sure to share with Parks Associates team. We love to keep up with the latest developments in security and professional monitoring.

Currently less than a quarter of current home security monitoring subscribers are actively shopping to make a change to their professionally monitored system or service. Historically, consumer choice for residential security systems was largely driven by cost and brand perceptions. Consumers simply chose a provider based on the equipment cost, the monthly monitoring fees, whether it was available in your area, and level of trust for the brand.

As new providers have emerged from adjacent categories and beyond, consumers have many more factors to consider when deciding on what kind of security works for them. Below are just some of the considerations consumers mull over during the security system purchase journey:

Is an in-person professional assessment of their home required or is filling out an online form enough?

Is there interest in professional installation or do they want a DIY security system?
Does their system need cameras as well as sensors or do sensors protect their home enough?
If the consumer decides cameras are necessary, do they need video storage or just real-time shots?
Will they need continuous video feeds or event-based recording?
Is the buyer looking for specific AI technology that enables specific applications?
How important is professional monitoring?
Are add-on smart devices like smart doorbells, door locks, water leak detectors, or even cyber security packages of interest?

Some consumers not only do not know exactly what they need or want, but they also may not even understand industry terminology or technology. Clear and simple explanations are important for all interactions, whether they are either in- person, on the phone, or via information online help videos. The quality of explanations can make – or break a sale.

The industry has become highly fragmented and difficult for both consumers and providers to navigate in terms of where to invest their dollars most strategically. For first-time buyers, options are many and it can be difficult to determine the best options. For existing customers, the amount of confusion and time it takes to evaluate a better option than what a consumer already has can quickly cause consumers to fall back into a place of inertia, where staying with what’s familiar is better than taking the risk with a new solution. A company’s ability to break through the confusion and help consumers with meaningful information can be a differentiator in either a positive or negative direction.

At the same time, consumers are becoming more tech-savvy. The level of differentiation between providers is quickly eroding given the commoditization of monitoring services. Over the next five years, six key areas that have the greatest potential impact on determining where market share could land in the future:

Affordability
Differentiation of features/depth of offerings
Positioning and relationship with customer
Consolidation and partnership
Disintermediation
Smart home integration

One key area is differentiation of features in security solutions. Because it is difficult for a consumer to navigate the variety of security solutions available, often, they focus on price as the most tangible and easily comparable differentiators. Most providers offer similar hardware, services, financing options, and warranties/trial periods, video monitoring capabilities, artificial intelligence features and, in some cases - relatively the same market positioning.

To the average consumer, it might seem price is the only differentiator. The entrance of low-cost providers is also forcing those price gaps between premium, value, and budget devices to shrink. Despite the margin pressure associated with lowering their device prices, premium players are differentiating in a number of ways:

AI and video verification
Emergency response offerings
Focus on privacy and security
Protecting property and the whole home
Innovate core value proposition
Brand positioning

Investing in AI and smart technologies is a difficult investment for smaller providers. For some, the AI in the devices is the foundation for their SAAS service to be built upon vs. passing the features onto customers as a new level of premium services. The question is whether these AI advancements will be worth the premium price or whether devices/software have reached a “good enough” plateau for the majority.

Implications about Competitive Strategies

In 2010, Parks Associates predicted that the traditional security industry, as it was known then, would transform itself to a smart home based on security industry. It appears that transformation is on track. The transformation is not complete, however. Furthermore, not all security providers will evolve in the same way.

The marketplace is beginning to witness the development of tiers, even with the movement towards security with smart home. Time and technology will exacerbate these differences. Complex homes and large homes will continue to require more sophisticated and expensive solutions than do small homes and apartments. Single product solutions like a camera may well serve an apartment with a one-door entrance. Areas for regular study and company comparisons are below:

Differentiation

Premium players need not continue to chase low-cost providers down the current price continuum. It is better to identify the segment of the market that will simply tolerate a premium player’s pricing and deliver enough value to merit trust. Seek feature differentiators. Ease of use and the completeness of available solutions have true value to consumers with complex homes and the wherewithal to pay for those solutions. If a base product is on the docket, create another product brand for the market segment that will not or cannot bear a premium player’s pricing and develop that. That said, it is important for these premium players to continue the innovation that delivers value-added features across all segments.

Product Development

All competitors, regardless of their solution level, need to create and/or decide the best offerings for the internet US households that are expected to grow the residential security industry in the next five years. Right off, that means special attention to the demographics, housing conditions, and attitudes of this group so service providers can zero in on optimal bundles.

Messaging

As new market entrants demonstrate that innovation and cost may trump industry awards and experience for new consumer segments, traditional and long-standing players in both the professional monitoring and DIY segments may be forced to explore benefits beyond the peace of mind table stakes all competitors are messaging to the same consumer segments. Ease of use is next to reliability; expandability follows that.

Partnerships

Smart home solutions that can include automation are on track to extend beyond the traditional home. Once unified protocols exist under the Matter initiative, companies will once again be forced to think about why their smart home hub should be the chosen control center for a consumer’s home automation. Ease of use will no doubt be at the center of consideration. However, exclusive interoperability with a wide array of the newest smart home devices could also help sweeten the proposition.

Channel Expansion

Traditional security system providers are exploring new channels for sales and distribution. DIY players to consider the same tactic to avoid falling behind. Insurance companies are already part of the mix of channels due to their discounts. Energy utilities have made a stab at involvement but it most cases it has been weak. Current conditions including the rapid increase of utilities may change that.

Parks Associates has been studying the technology markets for over thirty years. We would love to help you better understand the growth areas and navigate changes in the market. Please contact me or our team if you would like to talk about how we can help you grow your business. Thanks for your great support of our research work.

OTT Video Market Tracker: Insights into the Evolving US Streaming Landscape

Mon, 13 Mar 2023 00:00:00 +0000

Are you interested in learning more about the rapidly evolving OTT video market in the United States? If so, then you won't want to miss the upcoming online webinar event hosted by Parks Associates, "OTT Video Market Tracker: Insights into the Evolving US Streaming Landscape," on Wednesday, April 5th, 2023 at 10:30 AM CT.

Join us with Elizabeth Parks, President & CMO, of Parks Associates, and Jennifer Kent, Vice President of Research, Parks Associates for a sneak peek into Parks Associates' OTT Video Market Tracker, which profiles hundreds of OTT services and estimates subscriber numbers for these services. As the world's largest OTT market, the United States has seen significant growth in this sector, with 88% of US internet homes having at least one OTT subscription service.

However, saturation has crept into the foundational streaming services in the US, with Netflix and Prime Video experiencing intense competition since the end of the pandemic. In response to slowing revenue growth and increasing competition, providers have been adding ad-supported lower-cost tiers, expanding their global presence, and offering premium sports rights to attract new audiences.

To maintain future subscriber and viewership growth, services are innovating and adopting hybrid business models. Consumer loyalty to streaming services is limited, with nearly half of OTT subscribers hopping between services outside of Netflix multiple times over a 12-month period.

This research webinar will highlight the key service growth in the US, including service models, pricing, content acquisition, and partnerships in the OTT market. In addition, the key streaming service market developments in Q1 2023 will be shared.

Don't miss out on this opportunity to gain valuable insights into the evolving US streaming landscape. Register for the Parks Associates OTT Video Market Tracker Webinar today!

New Market Segments: Consumers and the Smart Home

Fri, 10 Mar 2023 00:00:00 +0000

The smart home market is rapidly evolving, and consumers are expecting more from technology that can provide convenience, safety/security, and energy management solutions. This session, "New Market Segments: Consumers and the Smart Home," at Parks Associates CONNECTIONS™ conference, brought together leaders in the industry to discuss the next generation of smart home buyers and where the market is expanding.

The event featured speakers from Trinity Wiring & Security Solutions, Alarm.com, Nomo Hub, GreenMarbles, Kaadas Smart Door Locks, Pepper IoT, Alula, Brilliant, Silicon Labs, Z-Wave Alliance LLC, Kwikset, Athom, maker of Homey and Ivani.

The virtual session started with a discussion on how solar and storage are driving energy management solutions in the smart home. The speakers discussed strategies that integrate solar, security, and smart home technologies, and how this combination can deliver short- and long-term energy savings and keep consumers engaged with positive experiences across all home systems.

The panel then shifted to the importance of marketing strategies, incentives, and educational information about smart home solutions. Speakers revealed that with consumers researching and purchasing products in vastly different ways from just a few years ago, companies must focus on capturing the attention of new consumer segments to continue growing in the smart home market.

The session wrapped up with a deep dive into channel expansion and where growth is coming from in the market. Energy, insurance, retailers, security dealers, and custom home systems providers are all selling smart home solutions, leading to market fragmentation. The speakers discussed what companies are doing to integrate across product ecosystems in the home to create a more seamless, unified experience for consumers.

Overall, the "New Market Segments: Consumers and the Smart Home" session provided valuable insights into the future of the smart home market and how companies can continue to capture the attention of new consumer segments while integrating across different product ecosystems. As the smart home market continues to evolve, companies that can deliver convenience, safety, security, and energy management solutions that are easy to use and integrate seamlessly will be poised for success.

CONNECTIONS™ 2023 features an in-person conference May 23-25, 2023, with virtual sessions on March 2, July 20, and October 5, focusing on the smart home market, home security, and new services for the home. Additionally, the research firm announced the co-location of the tenth annual Connected Health Summit and the 27th annual CONNECTIONS: The Premier Connected Home Conference on May 23-25, 2023, at the Omni Frisco Hotel in Frisco, Texas.

CONNECTIONS™ sponsors are Cox Communications, Nice, Ubiety Technologies, Alarm.com, Connectivity Standards Alliance (CSA), Johnson Controls, Rapid Response Monitoring, Schneider Electric, Xailient, Ivani, Nimbio, Becklar, Bitdefender, and Origin.

For more information, please visit www.connectionsconference.com or www.connectedhealthsummit.com

The Cost to Streaming Services of Password/Account Sharing – Analyst Insights

Mon, 20 Feb 2023 10:54:13 +0000

Parks Associates 2022 consumer survey research finds 40% of consumers in US internet households share credentials or use shared credentials from others—this is up from just 27% in 2019. Households classified as account sharers spend most of their time watching SVOD services, but also use transactional services and watch free content more than those who do not share. These people appear to be more price sensitive, defaulting to free and shared SVOD services for most of their viewing needs and only paying for specific titles when necessary.

As OTT service subscribership stagnates in well-penetrated markets like the US, password sharing becomes more of a problem for Netflix and other streaming providers. With the password sharing policy, Netflix wants to convert non-paying users into subscribers. However, subscribers—who are already reevaluating their budgets—may view the censure as a penalty or price increase. Hopefully for Netflix, viewers will choose the ad-supported tier instead of leaving the service completely.

Members have come to expect the ability to view their streaming services wherever they are. This limits Netflix’s ability to enforce a policy of viewing by location. US consumers in internet households report watching 6.3 hours of video on their mobile phone weekly, up from just 3.8 hours in 2019. For young viewers between ages 18–24, mobile is their primary viewing platform.

Netflix is showing its sensitivity to the user experience by offering viewers the ability to transfer their profiles to a new shared or ad-based account. Ultimately, as the streaming service rolls out its new policy, clear and transparent communication about what its new policy means—and what it doesn’t—is critical.

The rise of online video has shifted the economics of the video content industry and sparked an evolution in the thinking and behavior of the people who steal content. Illegal live streaming, app-based sharing, and account sharing are now rampant in the video service and content marketplace. Parks Associates latest report Account Sharing and Digital Piracy in Online Video examines consumer preferences for various piracy behaviors as well as attitudes towards privacy and account security. Available for purchase today: https://bit.ly/418mlPI

CONNECTIONS 2023 Announces Wi-Fi Sponsor – Becklar

Fri, 17 Feb 2023 00:04:03 +0000

Becklar is participating as the 2023 Wi-Fi Sponsor in CONNECTIONS™: The Premier Connected Home Conference, hosted by Parks Associates, taking place over the dates of May 23 – 25, in Frisco, TX. CONNECTIONS™ 2023 features an in-person conference May 23-25, 2023, with virtual sessions on March 2, July 20, and October 5, focusing on the smart home market, home security, and new services for the home.

Becklar creates solutions for a safer world by bringing together innovative technologies and caring people to enhance the freedom, confidence, and peace of mind of their customers. Becklar provides North America's largest, fastest, and premier quality Connected Safety Monitoring platform. Becklar creates industry-leading connected safety solutions for enterprises and individuals, delivering a world-class comprehensive suite of lifesaving and life-enhancing technologies. Becklar leverages its platform of innovative technology and award-winning services to create customizable and comprehensive solutions to meet the connected safety needs of their enterprise and individual customers across diverse industries, including personal emergency response solutions, workforce safety, personal health & safety, vitals monitoring, and event response monitoring.

Connect with Becklar on LinkedIn.

2023 CONNECTIONS™

Virtual Sessions

Mar 2 2023 New Market Segments: Consumers and the Smart Home

Jul 20 2023 New Era of Home Services

Oct 5 2023 State of the Home Security Market

2023 In-person Conference | MAY 23-25, Omni Hotel, Frisco, Texas – co-located with the Connected Health Summit

May 23 Pre-show Research Workshop: Modern Living

May 23 WELCOME TO CONNECTIONS™

May 24 Modern Living: Technology

May 25 Market Expansion