The TV App Opportunity

The mobile app market is exploding. Downloads are at an all-time high. Gartner estimates app TV Appsdownloads to rise from 150 billion today to 300 billion by 2017 (doubling in 2 years, and rising five fold in five years) But while their general popularity would seemingly justify most forays from content developers and service providers, our latest research shows that there’s a very specific appeal and challenge to TV-related apps. Investment in developing and delivering these apps— like a second-screen guide experience or multiscreen viewing application—deserves a closer look.

Today, the cost of acquiring and maintaining a mobile app user is $1.34. Which when applied over an existing customer base, could run well into the millions of dollars. Apply that on top of operating and development costs. However, the potential for monetization—through either value-added second-screen and multiscreen services or the merchandising of paid content—makes mobile apps an important roadmap decision for many providers looking to stay ahead of the curve.

New data from a recent ARRIS survey panel revealed that TV apps represent a significant opportunity to tap into consumers’ appetite in mobile applications. But more importantly, we found that the current marketing and discovery model for apps will have to change significantly in order for that to happen.

We saw that the TV app penetration is still very low: nearly two-thirds of respondents had one or no TV-related apps. And engagement was similarly thin—with nearly the same percentage using them once or fewer per week.

At the same time, the data revealed an opportunity that could drive up the return on investment in TV-related apps if properly positioned. We found that TV guide usage was relatively low across the board: 40% don’t use the guide, and fewer than 25% use it on their mobile phone. However, user familiarity with TV guides is high, making them a suitable launch point for App engagement.

The concurrent paucity in TV app and TV guide engagement opens the door for a solution that can address both. The opportunity for providers is seamlessly extending the TV experience to the mobile device—adding more richness to the entertainment experience while building a foundation for monetizing these experiences.

Beyond simply developing the apps themselves, the next step for many providers is providing a pathway for consumers to engage with them. ARRIS’s Whole Home Solution is one way providers can integrate the home entertainment environment with the mobile app environment, allowing consumers to move seamlessly between these complementary experiences.

Find out more about ARRIS Whole Home Solution here and check out the results of our survey here.

Another Step in the Eco-Friendly Direction

We’ve said it before and it is worth saying it again — when it comes to energy efficiency, less is more. As a global leader in products responsible for broadband and TV entertainment delivery into homes everywhere, we also never lose sight of how we can play a significant role in energy conservation.

That’s why we’re thrilled to join forces with the Consumer Electronics Association (CEA) and the National Cable & Telecommunications Association (NCTA) to improve energy efficiency of small network equipment by 10-20 percent. ARRIS broadband modems, routers and gateways will be core to this commitment.

And this agreement builds into our previously stated focus on minimizing energy use. We’ve long been committed to minimizing our global carbon footprint and energy use through environmentally responsible business operations. And of course, we’ve shown how we factor this way of thinking into our product innovations. Back in 2013, we voluntarily agreed to reduce the energy usage of our set-top devices along with today’s partners – CEA and NCTA – as well as the U.S. Energy Department, the Natural Resources Defense Council (NRDC), and other industry associations and energy advocates.

Today is yet another step in our continued commitment to minimize our products’ impact on the environment. And we have no plans to slow down!

ARRIS Racing Joins Goodyear in Giving Back

This Memorial Day in the US, ARRIS is donating two one-of-a-kind items to the Goodyear Gives Goodyear Gives Back imageBack program, benefiting the Support Our Troops charity.

An autographed hood of Daniel Suarez’s #18 ARRIS Toyota Camry and the autographed door panel of Carl Edwards’ #19 ARRIS Toyota Camry will be up for grabs in a charity auction that starts on Memorial Day. The auction coincides with NASCAR’s American Salute program celebrating US troops and will run through July 6.

Starting June 15, fans can bid on the ARRIS Racing items. Check out the Charity Auction page for more ways to support Goodyear Gives Back.

Top 5 Tech Articles You Might’ve Missed – Week of May 18, 2015

This week, CED reported on our announcement that as of year’s end, we will no longer be using the Motorola brand at our retail products.

At this week’s Video Leadership Forum in Dublin, Rapid TV captured an early glimpse at a new beta-version platform that will enable a new level of targeted advertising and content recommendations for users.

IP&TV News reported on Digital TV Research’s report highlighting global digital TV penetration will reach 97.6% of television households by end-2020. The report also noted Asia Pacific will drive the global digital TV growth by 180%.

In other industry news, TechCrunch disclosed findings from a recent Juniper Research report on Over-The-Top streaming video services. According to the report, the amount of people using streaming video services is on the rise, and there will be about 333.2 million global subscriptions by 2019.

Finally, InformationWeek reported the IDC’s prediction that the market for the Internet of Things will increase 19 percent in 2015.

Check back next week for the latest industry news.

  1. RIP “Motorola” (May 21, 2015) By Brian Santo, CED: ARRIS said it will cease using the Motorola name for its retail products at the end of this year…ARRIS has an obligation to build its own brand, and is doing a fine job of it.
  2. ARRIS Data-Based Platform to Enable Targeted Ads, Better Recommendation (May 21, 2015) By Juan Fernandez Gonzalez, Rapid TV: Unveiled during ARRIS’ Video Leadership Forum (VLF) held in Dublin this week, the platform aims to use the power of data to create a new video experience. According to Andy Aftelak, VP of advanced research at ARRIS, the company intends to use data as one of the ways of creating new value around content.
  3. Asia Pacific Drives 180% Global Digital TV Growth (May 20, 2015) By Thomas Campbell, IP&TV News: Based on forecasts from 138 countries, the number of digital TV homes will increase by more than 1 billion between 2010 and 2020 to 1.65 billion – or up by 180%, according to a new report from Digital TV Research.
  4. Over-The-Top Streaming Video Services To Surge To 330 Million+ Subscribers By 2019 (May 18, 2015) By Sarah Perez, TechCrunch: Consumer adoption of streaming video services is surging, according to a new report by Juniper Research out this morning, which finds that subscriber numbers for services like Netflix and Amazon Prime Instant Video will grow from 92.1 million in 2014 to 333.2 million global subscriptions by 2019.
  5. IoT Market Will Grow 19 Percent in 2015, IDC Predicts (May 20, 2015) By Nathan Eddy, InformationWeek: The market for the Internet of Things, which refers to the network of Web-connected physical objects — this includes everything from Nest thermostats, to dishwashers, to heart monitors — is expected to grow 19% in 2015, according to IT research firm IDC’s second annual IoT forecast.

 

ARRIS & Motorola

Today, ARRIS is announcing that as of year’s end, we will no longer be using the MotorolaARRIS_Vertical_4c_CMYK brand on our retail products.

Since our acquisition of Motorola Home two years ago, we’ve anticipated this transition by accelerating our investment in making ARRIS the trusted name and global leader it is today. Now, we’re ready to usher in the next wave of industry innovation under the ARRIS brand.

When we acquired Motorola Home, we inherited a 60-year legacy of award-winning innovation—including the legendary SURFboard® line of products.

The SURFboard is the most widely recognized and most popular retail cable modem —with more than 135 million sold, covering 90% of the market. It’s the retail standard. And it has an impressive history of firsts—including the first wireless broadband gateway, which brought wireless Internet into millions of homes around the world.

That legacy continues today at ARRIS.

As we’ve grown our global brand, we’ve also accelerated our investment in the SURFboard line of products. The result is a new legacy of firsts, including the world’s first 802.11ac cable modem gateway and the world’s first 16×4 channel cable modem, delivering the fastest wired and wireless cable Internet speeds available today.

The world has taken notice. Our commitment to building the fastest, best-performing, and most reliable devices in the world has cemented ARRIS’s relationship with its leading service providers. The ARRIS brand is now in tens of millions of consumer homes, thanks to a variety of innovative new products, numerous awards, word of mouth, and our sponsorship with NASCAR.

When you choose ARRIS and our SURFboard line of products, you’re getting the result of a legacy of innovation and a continued investment in inventing the future.

Thank you for choosing ARRIS!

Racing to Cure Cystic Fibrosis

ARRIS is a proud supporter of the Cystic Fibrosis Foundation (CFF). Our corporate teams who Arris_CFF_TVpanelhave participated in their largest national fundraising event—Great Strides—have raised tens of thousands of dollars in support of cystic fibrosis research and the development of new drugs and therapies. On May 16th, we’ll join more than 125,000 people across the country, walking in four cities (Doylestown, PA; Lowell, MA; Atlanta; and San Diego), to raise money and awareness for the Cystic Fibrosis Foundation.

This weekend, we’re bringing a new level of visibility to our cause by featuring the CFF logo on our NASCAR ARRIS Toyota Camry race cars. Carl Edwards will debut the logo on his #19 car this Saturday at the Sprint All-Star Race at Charlotte Motor Speedway in North Carolina. And Daniel Suarez will feature it on his #18 car next weekend through the middle of June.

Tune in to NASCAR this weekend, and join us at Great Strides tomorrow to support the Cystic Fibrosis Foundation!

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