The Adobe Digital Index team takes a look at digital video consumption trends in Q3 2015.

1. DIGITAL VIDEO BENCHMARK
ADOBE DIGITAL INDEX Q3 2015

2. Table of contents
TV Everywhere
03 Key insights
04 TVE penetration among Pay-TV viewers grows, slowly
05 Authenticated video viewing doubled YOY
06 All key genres grew QOQ
07 Authentications shifting to TV connected devices
08 Share of authentications by device type
09 Viewing platforms of choice are mobile or connected
10 Teens & Toons has the highest viewing frequency
11 Teens & Toons tends to be mobile content;
Movies are big screen
Total Online Video Market
12 Mobile share of online video starts now stands at 30%
13 Mobile share of online video starts lower on TV sites
14 Viewing frequency increased on mobile devices
15 Ad starts per video decreased on all devices
Appendix
16 Methodology
17 Glossary
18 Tables
2ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

3. Key insights
• TV Everywhere (TVE) viewing continues to shift to TV connected devices; Apple TV® and Roku® are enjoying similar growth rates
(+18% in the last quarter alone). Apple® may be cannibalizing its own devices, with Apple TV® growing at the expense of iPad® and
iPhone®:
• Consumers increased their frequency of viewing TV Everywhere (TVE), with an uptick in the most recent quarter resulting in a
doubling of TVE viewing YOY. Q3 2015 is up 37% quarter-over-quarter (QOQ) following a Q2 slowdown; all key genres showed
growth.
• The number of households using TV Everywhere (TVE) continues to grow, but slowly. Number of unique households is up 8%
year-over-year (YOY).
• Teens & Toons is often consumed on mobile devices, particularly by Android® as opposed to iOS® users. Movies tend to be viewed
on a bigger screen.
• In the broader video market, the overall mobile share of online video starts continues to grow (+13% YOY), with smartphone
growth offsetting tablet decline. Share of videos viewed via a smartphone is just over 18% for the quarter, up 33% YOY.
3ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

4. TV EVERYWHERE
TVE penetration of Pay-TV viewers continues to grow slowly
4
While active viewership grew 8% on a YOY basis, penetration among pay-tv subscribers remains in the
12-14% range.
With fewer than 1 in 7 subscribing households using TVE, there remains substantial headroom to acquire
new customers.
ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

5. Authenticated video viewing picked up steam
during the 3rd quarter resulting in a 102%
increase of TVE video streams from Sept. 2014.
TV EVERYWHERE
Authenticated video viewing doubled YOY
5
The growth continues after a
Q2 dip, up 37% QOQ.
Consumer engagement and loyalty, rather than customer acquisition, fuels industry growth.
ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

6. TV EVERYWHERE
All key genres contributed to viewing growth
6
All genres show healthy growth, contributing to the 37% QOQ jump. The fastest growing was Movies,
more than doubling since the last benchmark report.
The start of football season, the return to school and new TV shows impacted individual
genres positively.
ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

7. TV EVERYWHERE
Authentications shifting to TV connected devices
7
Connected TV Devices’ share of TVE grew 130% YOY, now accounting for nearly 1 in 4
authentications. iOS and browser viewing both dropped 25% YOY.
ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

8. TV EVERYWHERE
Share of authentications by device type
8
Apple TV maintains a nearly 2:1 lead over Roku among connected devices (56% to 30% in the
connected device segment and 13% to 7% overall) – both grew just under 20% in the last quarter
alone.
ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

9. TV EVERYWHERE
Viewing platforms of choice are mobile or connected TVs
Binge viewing within TVE
continues to creep up, led by a
30% increase in videos per visitor
on TV connected devices.
Browser-based viewing is now half
as frequent as any other method.
9
Viewing frequency increasing on most access types, only browsers showed a decline.
ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

10. TV EVERYWHERE
Teens & Toons has the highest viewing rate
10
Teens & Toons is the most heavily
viewed content, with Android devices
used to view this genre at 2X the viewing
frequency of iOS devices.
Android viewers of Teens &
Toons watch nearly 3
videos a day.
ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

11. TV EVERYWHERE
Teens & Toons tends to be mobile content; movies are big screen
11
Sports is surprisingly
more of a mobile story.
Device usage varies by genre:
Teens & Toons content can be consumed anywhere via Mobile, while Movies benefit from the high
fidelity and size of Connected Devices.
ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

12. ONLINE VIDEO
Online video continues to shift toward mobile devices
3 of 10 video starts on websites now on mobile. Given that total browsing is approaching 50%
mobile, the lag in video viewing suggests preference for larger screens for videos.
Mobile share of overall online video grew 13% YOY to 31% this past quarter; however, a decline in
tablet’s share cancelled out some of smartphone’s growth.
Share of smartphone viewing
increased YOY by 33%, helping
push the share of mobile viewing to
31%.
Slowing tablet sales and usage
impacts the share of tablet
video viewing, which was
down by 7% YOY.
12ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

13. ONLINE VIDEO
Mobile share of online video starts lower on TV sites
13
Mobile share of online video viewing via
TV programming sites grew 62%, to just
under 24% of unauthenticated video
viewing.
Even with a 62% increase in mobile share of viewing YOY on broadcast sites, consumers watch 20%
fewer videos on these sites compared to total viewing (shares of 24% and 31%, respectively).
TV programming’s longer form content appears more suited to other devices and larger screens.
ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

14. Screen size is a predictor of online video viewing frequency. The larger the screen, the higher the
frequency with 50% more viewing on desktops than smartphones.
ONLINE VIDEO
Viewing frequency increased on mobile devices
14
The viewing frequency via a
smartphone grew 10% YOY to
0.49 video views per visitor.
ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

15. ONLINE VIDEO
Ad start rate decreased on all devices
15
Viewers via Desktops are
viewing the most ads per
video view.
Tablets had the largest decrease
in ad-start to video-start ratio.
While viewing frequency increased, fewer ads were started per video watched compared to last year.
The decline is largest on tablets.
Combining videos per visitor and ad starts per video results in smartphone users viewing about the
same number of ads as last year, while tablet and desktop users are viewing fewer.
The average ad start per video
start in Q3 2015 was 0.83, down
10% over Q3 2014.
ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

16. ADOBE DIGITAL INDEX
Methodology
This report is based on consumer video viewing from July 2014 thru September 2015. It consists of the
aggregated and anonymous data from sites gathered from Adobe Analytics, Adobe Primetime, and Adobe
Social. Adobe does not use any personally identifiable information to generate this report. In addition,
Adobe does not know the personal identity of those viewing digital videos.
Sample information includes:
• 134 billion total online video starts
• 3.6 billion TV Everywhere authentications
• 300+ different sites and apps acting as access points for TV Everywhere
Visit our website: adobe.ly/digitalindex
Read our blog: adobe.ly/digitalindex
Follow us: @adobeindex
Ask a question or make a suggestion: digindex@adobe.com
16ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

17. ADOBE DIGITAL INDEX
Glossary
• Ad start ratio: Total ad starts divided by total video starts
• Online video start: Any browser based unauthenticated video start
• Viewing frequency: Total video starts divided by unique viewers
• Authenticated video: Video content that requires credentials from a multichannel video
programming distributor (MVPD)
• Active monthly viewer: Viewer who authenticates at least once per month
• Monthly unique visitor: Total number of unique visitors for the month
• Access type
– Browser includes Chrome, IE, Firefox, and Safari on both PC and mobile devices
– iOS app is an app on any Apple mobile device
– Android app is an app located on any Android mobile device
– TV Connected Devices includes data from apps on Xbox, PS4, Apple TV, Roku, and other similar devices
• TV Everywhere video viewing frequency: Authenticated video streams per monthly unique visitor
17ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015

18. ADOBE DIGITAL INDEX
Tables
©2015 Adobe Systems Incorporated. All rights reserved. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. Android is a trademark of Google Inc. Apple, Apple TV and iPhone are trademarks of Apple
Inc., registered in the US and other countries. IOS is a trademark or registered trademark of Cisco in the U.S. and other countries and is used under license. Windows is either a registered trademark or a trademark of Microsoft Corporation in the United States and/or other countries. All other trademarks
are the property of their respective owners.
18
TV everywhere authenticated video viewing growth
9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14 3/1/14 4/1/14 5/1/14 6/1/14 7/1/14 8/1/14 9/1/14
All TV-E 42% 47% 56% 46% 56% 60% 79% 74% 71% 74% 89% 109% 100%
10/1/14 11/1/14 12/1/14 1/1/15 2/1/15 3/1/15 4/1/15 5/1/15 6/1/15 7/1/15 8/1/15 9/1/15
110% 123% 111% 140% 140% 154% 144% 130% 130% 158% 193% 202%
TV everywhere authenticated video viewing growth by genre
9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14 3/1/14 4/1/14 5/1/14 6/1/14 7/1/14 8/1/14 9/1/14
Sports 63% 68% 91% 64% 70% 54% 92% 57% 65% 61% 34% 72% 100%
Movies 24% 21% 35% 35% 46% 47% 72% 65% 80% 70% 94% 112% 100%
Teens & Toons 49% 37% 38% 38% 55% 50% 48% 46% 46% 71% 106% 112% 100%
Broadcast & Cable 36% 40% 40% 38% 51% 61% 81% 75% 74% 77% 103% 112% 100%
10/1/14 11/1/14 12/1/14 1/1/15 2/1/15 3/1/15 4/1/15 5/1/15 6/1/15 7/1/15 8/1/15 9/1/15
129% 176% 122% 123% 94% 111% 86% 75% 85% 55% 106% 148%
91% 71% 124% 120% 117% 115% 97% 113% 119% 159% 315% 272%
145% 125% 90% 121% 129% 139% 129% 113% 120% 188% 193% 147%
106% 115% 114% 138% 143% 169% 157% 151% 147% 183% 212% 211%
Share of TV everywhere authentications
by device type
Q3 2015 Q2 2015
iPad 22% 27%
iPhone 19% 22%
iPod 1% 1%
PC 11% 9%
Mac 5% 4%
Android 19% 16%
Apple TV 13% 11%
Roku 7% 6%
Gaming Console 2% 2%
Amazon Fire TV 1% 1%
Smart TV 0% 1%
Other 0% 0%
ADOBE DIGITAL INDEX | Digital Video Benchmark Q3 2015