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TiVo Promises Free Set-Top Data in Q1 2016

Mari Silbey
10/21/2015

TiVo wants to play the ratings game.

Set-top viewing data is a hot commodity, but now TiVo Inc. (Nasdaq: TIVO) says it plans to give the information away for free. In a note on the TiVo Research website (hat tip The Drum and Zatz Not Funny), the company says that it will celebrate the merger of ratings companies comScore Inc. and Rentrak Corp. (Nasdaq: RENT) with the release of free TV ratings data starting in the first quarter of 2016. (See also comScore, Rentrak Become One.)

TiVo goes on to share its reasoning behind the move on the freeratings.tv website:

"We don’t think anyone should have to pay for the most basic data we provide -- demographic TV ratings. We’re much more interested in helping you improve your business and overcome the real challenges you face in a way that other sources of ratings data never will. We do this with anonymized individual household-level viewing data from more than two million homes, directly matched to online exposure and purchase data."

TiVo's audience reach is not insignificant. While many of its customers are international (and therefore likely don't contribute to the pool of more than 2 million homes that TiVo cites), the company still has a sizable US customer base and the potential to grow further through new partnerships with service providers. Most recently, TiVo announced a new distribution deal with WideOpenWest Holdings LLC (WOW) and a partnership with the National Cable Television Cooperative Inc. (NCTC) , which will give the company access to 850 mid-tier cable companies, and potentially 10 million cable homes.

TiVo's retail customer base is far less promising with fewer than a million subscribers, but the company is hoping to turn things around on that front with new mass-market products like the TiVo Bolt. (See TiVo's Retail Fortunes Flag and TiVo Takes Aim With Bolt.)


For more on cable technology trends, visit the cable channel here at Light Reading.


The traditional TV ratings system dominated by Nielsen has struggled for years to account for new types of video viewing and to include new real-time data sources. Nielsen itself has integrated some set-top data into its measurement solutions, notably announcing a partnership with Charter Communications Inc. for a limited set of set-top data back in 2008, and using its joint venture company Nielsen Catalina to team up with FourthWall Media Inc. to access additional set-top data in 2014, bringing its total pool of set-top data to 4.3 million households.*

Nielsen rival Rentrak, however, has been much more aggressive, collecting data from a total of 26 million set-top homes as reported in 2014.

On the service provider front, many operators are looking at set-top data as a way to generate new revenue. After years of fearing the regulatory consequences of selling subscriber information, pay-TV companies are now loosening up in response to digital measurement activities on the web. A recent article in The Wall Street Journal reported that Comcast Corp. (Nasdaq: CMCSA, CMCSK) is actively looking to license its set-top data and has already approached programmers, including Walt Disney Co. (NYSE: DIS)'s ESPN, Turner Broadcasting System Inc. (owned by Time Warner Inc. (NYSE: TWX)) and Discovery Communications Inc. (Nasdaq: DISCA, DISCB, DISCK). Comcast currently shares set-top data with its own company NBC Universal. The WSJ noted that Nielsen offered to pay $100 million for Comcast's set-top data set, but the ratings company wanted exclusive rights. Comcast declined.

The fact that TiVo is willing to give data away for free may irk Comcast, but then again, Comcast's scale is much larger than TiVo's (with access to data from roughly 18 million subscribers), giving the operator plenty of leverage to sell its own data. Smaller operators may have a harder time competing, but for the biggest measurement companies, having a diverse pool of set-top sources will still be important. TiVo's data set is only one of many.

*Note: An earlier version of this story stated that Nielsen Catalina gained access to 1.4 million set-top households in 2014, but that number was from the deal with FourthWall Media only and did not include other set-top data sources which bring the number to 4.3 million households.

— Mari Silbey, Senior Editor, Cable/Video, Light Reading

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kq4ym
kq4ym
11/9/2015 | 4:17:03 PM
Re: Freebie
Yes, the details can be lost in the words or laok therof. What is free and what is basic. Lots of attorneys can argue that one into eternity. But it will be interesting to see how the free data deal works out in a year or two.
kq4ym
kq4ym
10/28/2015 | 11:32:47 AM
Re: A good free reference
It would make sense that box providers would have lots of valuable data to push Nielson to gasp for air. But how will giving it away at Tivo help them? There has to be an unsaid idea behind the gimmick. And even the smaller size customer base shouldn't have much effect on validity based on sampling, assuming it's customer base reflects the viewing history or other data bases.
Mitch Wagner
Mitch Wagner
10/23/2015 | 10:25:16 AM
Re: Freebie
bosco_pcs - Ah. Makes sense. It's a sales enticement. 
bosco_pcs
bosco_pcs
10/22/2015 | 8:02:16 PM
Re: Freebie
Mitch:

"Most basic data" is the key phrase. First, there are several ways to interpret it. Really, just the word 'most' has a couple of meanings :). More important, any way you interpret it, it suggests it is a trojan horse freemium deal.
Nitin Narang
Nitin Narang
10/22/2015 | 2:03:16 PM
A good free reference
In absence of any free large volume STB data, the offering from TiVo is quite promising. It can brings referencable informtion and teaser to other to offer something similar
Mitch Wagner
Mitch Wagner
10/21/2015 | 4:56:32 PM
Freebie
It's fine for TiVo to be talking about releasing this data because it's the right thing to do, but color me skeptical. How does TiVo get business value from putting this information out there for free?
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