CABLE NATION: The Value of Niche Cable Networks
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1 CABLE NATION: The Value of Niche Cable Networks
2 NICHE What Is A Niche Cable Network? Networks targeted to a captivated audience of passionate, engaged enthusiasts delivering content that quenches their inherent curiosity. Quality content that Entertains Enlightens Educates Instructs Inspires Influences
3 NETS Cable s Niche Networks Offer A Diverse Mix Of Programing Across A Variety of Genres Niche Networks are defined here as ranking outside the top 40 cable networks based on an average of their subscriber count and advertising revenues Source: SNL Kagan as of EOY 2013; excluding Hispanic networks. Inclusion based on measured networks available in Nielsen Npower, Nielsen Social, Comscore or MRI
4 SCALE The Average Subscriber Count For Niche Cable Networks Are Substantially Higher Than Those Of Other Popular Media Properties While niche cable TV networks value lies in their quality of audience not size, it is important to note that their distribution is still much larger than major properties across the media ecosystem 55.7 Niche Cable Nets- Avg Subs 36.2 Netflix Subs 30.5 YouTube - #1 Channel Subs (PewDiePie) 26.3 Sirius XM Subs How Big is 56 Million Subscribers? (in millions) Direct TV Subs Apple TV Devices Amazon Prime Subs Spotify Premium Subs Roku Devices Hulu Plus Subs Sources: SNL Kagan for cable subscribers; Amazon Prime - SNL Kagan year-end 2013 estimate; Hulu Plus - SNL Kagan April 2014 estimate; USA Today (print + digital) Alliance for Audited Media March 14; Netflix / Sirius XM / Apple TV / TiVo / Direct TV / Roku - latest press releases or corporate earnings report 2013 / 2014 Niche Cable Networks = networks that rank outside of the top 40 nets based on the average of ad revenues and subscribers TiVo Subs People Magazine Circ USA Today Circ
5 SIZE Niche Cable Networks Have Much Wider Distribution Than People Think Many niche cable networks have a higher subscriber count than the most popular streaming service Niche Cable Networks with More U.S. Subscribers Than Netflix (36.2MM) 37MM+ Subscribers Sources: SNL Kagan for cable subscribers; Netflix based on 2Q 14 earnings report Niche Cable Networks = networks that rank outside of the top 40 nets based on the average of ad revenues and subscribers
6 RTGS Although Ratings Are Still Smaller Compared To Major Networks, Niche Cable Has Experienced Tremendous Growth Over The Last 10 Years Through organic rating increases and the rise in available networks, niche cable has accounted for a large portion of total ad-supported cable s growth Niche Cable Nets +929% 10-Year Primetime Average Ratings Growth 2Q 04 vs. 2Q Total Ad-Supported Cable +18% 2Q 04 2Q Niche Cable Nets Source: CAB analysis of Nielsen timeperiod level, live+7. Total cable reflects ad-supported networks excluding Hispanic Niche Cable Nets = measured Nielsen networks that rank outside of the top 40 nets based on the average of ad revenues and subscribers +897% Total Ad-Supported Cable +19%
7 REACH Collectively, Niche Networks Are Viewed By Over Three-Quarters of TV Households, Up From Only One-Third 10 Years Ago Niche networks shouldn t be ignored by advertisers as they ve become a powerful force within TV and now make up a large proportion of overall ratings 22% 80% 89% 64% 81% 75% Primetime Cume AA Reach % June 04 vs June 14 June 04 June 14 June 04 June 14 June 04 June 14 A18-49 A25-54 HH Source: Nielsen NPower. Total cable reflects ad-supported networks excluding Hispanic Niche Cable Nets = measured Nielsen networks that rank outside of the top 40 nets based on the average of ad revenues and subscribers 24% 82% 92% 68% 84% 81% 32% Niche Cable Nets Total Ad-Supported Cable Broadcast TV 83% 96% 78% 89% 92%
8 LIVE Viewers Are More Likely To Watch Programming Live On Niche Cable Networks Than Shifting To A Later Time Against Adults 18-49, Niche cable programming is 18% less likely to be time-shifted than overall cable and 60% less likely than broadcast 81% 19% Source: Nielsen npower; HUT/PUT. Playback within 7 days % Live vs. Playback Minutes: Primetime 2Q 14 A18-49 A25-54 A18-49 A25-54 A18-49 A25-54 Niche Cable Nets 81% 19% 77% 23% Playback 77% 23% Total Ad-Supported Cable Live 52% 48% Broadcast TV 54% 46%
9 AUDIENCE Niche TV Networks Consistently Reach A Much Larger Audience Than Top Print / Digital Brands Making Them The Authoritative Enthusiast Voice Automotive Golf Gaming Epicurean Comedy Top Niche Cable TV Network Audience Reach vs. Other Top Media Properties (Live+7 Total Day AA P2+ TV Reach / Print Audience / Digital Sites Unique Visitors: 000) June 14 Top Niche Cable Net Motor Trend Digital Car and Driver Mag Top Niche Cable Net TheOnion.com Top Niche Cable Net AllRecipes.com Cooking Light Magazine Top Niche Cable Net Zynga.com Game Informer Mag Top Niche Cable Net Golf Digest Mag YahooGolf.com 2,919 2,583 5,298 5,566 6,051 10,687 12,705 22,285 Source: Nielsen Npower, Total Day, Live+7, 6/1-6/30/14; 2013 MRI Doublebase, readership (ads noticed); Comscore June 2014 Niche Cable Net Avg = Auto: Velocity; Comedy: FXX; Epicurean: Cooking Channel; Gaming: GSN; Golf: Golf Channel 29,029 31,954 33,981 37,048 37,185 48,202
10 AUDIENCE cont. From Gaming & Golf To Science & Sports, Niche Cable Networks Have A Huge Reach Advantage Across A Wide Spectrum Of Categories Men s Lifestyle Science Multicultural Sports Women s Lifestyle Niche Cable TV Network Audience Reach vs. Other Top Media Properties (Live+7 Total Day AA P2+ TV Reach / Print Audience / Digital Sites Unique Visitors: 000) June 14 Top Niche Cable Net Conde Nast Men s Digital Men s Health Mag Top Niche Cable Net Nat Geo Mag HuffPostScience.com Niche Cable Net Avg Ebony Mag Vibe.com Niche Cable Net Avg USA Today Sports Digital Sports Illustrated Mag Niche Cable Net Avg Martha Stewart Digital Better Homes & Garden Mag 3,273 2,335 5,085 6,207 9,739 16,891 15,914 18,317 21,444 23,910 36,241 39,552 43,159 51,206 Source: Nielsen Npower, Total Day, Live+7, 6/1-6/30/14; 2013 MRI Doublebase, readership (ads noticed); Comscore June 2014 Niche Cable Net Avg = Men s Lifestyle: Esquire; Multicultural: Centric / UP TV / TV1; Science: Science Channel; Sports: NBCSN, FS1 / ENN; Women s Lifestyle: Own / Oxygen 54,144
11 MEDIA Niche Cable Viewers Use Their Second Screen To Stream Their Favorite Programs And Follow Them Through Their Social Networks I use social networking to find out information about TV shows I've downloaded or streamed a TV show on my phone in last 30 days I've watched live television on my phone in last 30 days Media Usage Index vs. Average A18+ Population "Niche" Cable Nets Viewer Average TV Viewer Sources: GfK MRI Doublebase 2013 Niche Cable Nets Viewer was defined in MRI as watched 5+ niche cable nets, out of 48 niche nets measured, in the past 7 days. This equates to 16% of the A18+ population
12 FB LIKES Speaking To Fan Passion, Niche Networks Have More Facebook Likes On Average Than The Much Larger Broadcast Networks A higher percentage of niche cable viewers follow the networks on Facebook and, most impressively, these networks also have more followers outright than broadcast even though they have a fraction of the audience Niche Cable Net Avg Sources: Facebook Likes as of 9/23/14; Nielsen Npower cume total day, Live+7, 6/1-6/30/14 Broadcast Networks include ABC, CBS, NBC, FOX, CW, ION Niche Cable Nets include Nielsen measured networks, excluding secondary sports branded networks such as ESPN News or Fox Sports 2 Broadcast 6-Net Avg Facebook Likes 1,037,452 1,012,080 June 14 AA P2+ TV Reach Avg 36,260, ,230,960 % of Likes vs. TV Viewers 2.9% 0.6% Niche Index vs. Broadcast 467
13 TIME SPENT Showing Their Commitment, Visitors Spend More Time And View More Pages On Niche Cable Websites Than Other TV Sites 15:28 Average "Niche" Cable Net Website Sources: CAB analysis of Comscore June 2014 data Average Monthly Minutes Spent Per Site Visitor 13:54 Average TV Website 12:20 Average Broadcast TV Website Average Monthly Pages Per Visitor 15.7 Average "Niche" Cable Net Website 13.7 Average TV Website 12.9 Average Broadcast TV Website
14 MINUTES Visitors Spend More Time On Niche Cable Websites Than Many Other Popular Sites Within The Same Category WOMEN S INSTRUCTIONAL WORLD NEWS BUSINESS SPORTS LIFESTYLE GOLF SCIENCE Niche Cable Websites 15:24 10:42 Sources: Comscore June 2014 Average Monthly Minutes Spent Per Site Visitor Other Popular Websites 2:54 1:54 4:18 3:54 56:36 28:12 9:42 8:48 28:40 23:12 14:30 18:18 21:30 13:30 5:48 4:00 5:18 10:18 5:30 5:18 3:18 2:24 4:36
15 MINUTES cont. Visitor Engagement On Niche Websites Trumps Other Popular Sites Across A Wide Variety of Categories MULTICULTURAL LGBT MUSIC BUSINESS SPORTS Niche Cable Websites Sources: Comscore June 2014 Average Monthly Minutes Spent Per Site Visitor Other Popular Websites 31:10 13:18 13:16 20:42 6:48 7:30 4:24 4:54 5:12 39:36 18:48 35:24 26:42 3:53 3:54 5:30 3:30 4:06 4:12 3:54 2:36 3:12 3:36
16 ATTITUDES Besides The Engagement That Niche Cable Viewers Show To Content, They re Also Very Receptive To Ads And Product Placements Advertising helps me keep up-to-date about products & services I m interested in Advertising on TV provides meaningful info about product usage I have considerable interest in the product placements shown in TV shows Attitudes On Advertising Index vs. Average A18+ Population "Niche" Cable Nets Viewer Average TV Viewer Sources: GfK MRI Doublebase 2013 Niche Cable Nets Viewer was defined in MRI as watched 5+ niche cable nets, out of 48 niche nets measured, in the past 7 days. This equates to 16% of the A18+ population
17 INFLUENCE Niche Cable Viewers Are Influencers And Will Actively Endorse Products To Others Online, Which Makes Them Very Desirable Consumers Niche cable networks are networks that influence the influencers I like to lead others Sources: GfK MRI Doublebase Influencer Statements Index vs. Average A18+ Population 103 I keep track of the latest trends & fashion 138 My family/friends trust my advice on TV shows "Niche" Cable Nets Viewer I like to share opinions online about products/services Average TV Viewer I've recommended products/services to people online Niche Cable Nets Viewer was defined in MRI as watched 5+ niche cable nets, out of 48 niche nets measured, in the past 7 days. This equates to 16% of the A18+ population
18 CONTACT US If you would like additional video advertising information, insights or analysis please visit our website at or feel free to contact us directly: Sean Cunningham President & CEO Jason Wiese VP Strategic Insights Follow us on and like us on Danielle DeLauro SVP Strategic Sales Insights Evelyn Skurkovich Sr. Director, Strategic Insights
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