Decoding Modern TV: Revealing Essential Television Terminology for Savvy Marketers!

With TV and streaming evolving, the words we use to describe how we watch are growing. Let's explore this bigger picture.

LINEAR TV        

Linear TV refers to traditional television broadcasting where programs are scheduled and aired at specific times on predetermined channels. Viewers tune in to watch these programs as they are broadcasted, following a linear schedule set by the television network.

Linear TV viewing sinks below 50% as streaming soars to new heights.

Reasons why Linear TV is still here:

1. For LIVE Events
2. Targeted Advertising
3. Broad Reach
4. Scheduled Programming
5. Channel-based

OTA        

OTA stands for "Over-the-Air," referring to television signals transmitted via radio waves and received by antenna on your TV. It allows you to access local broadcast channels without a cable or satellite subscription.

TV stations like CBS, NBC, and ABC all have OTA channels.

OTAs are faster, more easily reachable, and less expensive than conventional contracting methods. Reduced Governmental Interference: OTAs minimize governmental interference and bureaucratic obstacles.

Within the TV household universe, 18.125 million are OTA households, and an additional 4.625 million are cable and satellite TV homes that also have OTA-capable TV sets.

Pay TV        

Pay TV refers to a television service for which viewers pay a subscription fee to access content. This can include cable television, satellite television, or internet-based streaming services that require a subscription fee for access to premium channels or content.

The number of pay TV households in the U.S. dropped to 65.1 million in 2022.

Traditional TV        

TV bundles sold by cable, satellite, and telecom companies.

Traditional TV refers to the conventional method of television broadcasting, where programs are scheduled and delivered to viewers through broadcast signals via cable, satellite, or antenna. Viewers tune in to specific channels at scheduled times to watch programs as they are aired.

Digital TV        

Digital TV MVPD stands for "Multichannel Video Programming Distributor" in the digital realm. These are platforms or services that deliver multiple television channels or video content over the internet, such as cable, satellite, or streaming services. Examples include cable TV providers, satellite TV providers, and internet-based streaming services like Hulu + Live TV or YouTube TV.

46 million US adults will be digital pay TV viewers this year, or 13.4% of the population, per our February 2024 forecast. - EMARKETER

FAST TV        

"Fast TV" typically refers to the practice of watching television content via streaming services or on-demand platforms, where viewers have the ability to skip through commercials or advertisements. This term contrasts with traditional linear TV, where viewers must watch commercials during scheduled program breaks.

TV content delivered via the internet that viewers do not need to pay for, including Pluto TV, The Roku Channel, and Tubi.

Viewers will find a variety of content on a FAST platform, including TV shows, movies, reality series and live news. Depending on the service, you can watch titles on demand or stream prescheduled broadcasts. And the commercial load is typically less than what you get with traditional TV.

The projected average revenue per user for 2024 is US$9.01. By 2027, the FAST market anticipates reaching 1.1 billion users. Analysts anticipate the user penetration rate, estimated at 13.0% in 2024, will rise to 13.8% by 2027.

Streaming TV        

Streaming TV refers to the delivery of television content over the internet, allowing viewers to watch shows, movies, and other programming on-demand via streaming platforms like Netflix, Hulu, or Disney+.

"OTT" refers to the delivery of video content over the internet, directly to viewers, without the need for traditional cable or satellite television subscriptions. "OTT" stands for "over-the-top," indicating that the content is delivered directly to consumers over the internet, bypassing traditional distribution channels. This can include services like Netflix, Hulu, Amazon Prime Video, and others, where viewers can stream movies, TV shows, and other content on-demand.

There are now more subscriptions to video streaming services—including Netflix, Amazon Prime, Hulu, HBO Max and Disney+—than there are people in the USA.

Revenue in the OTT video segment is expected to reach $316.10 billion USD in 2023. The OTT video market is set to grow at a Compound Annual Growth Rate (CAGR) of 10.01% from 2023 to 2027.

OTT video ad spend to near $10 billion and account for 3.4% of all digital ad spend.

Marketers must grasp these TV terms to navigate the evolving landscape of advertising effectively. Understanding concepts like streaming, CTV, and OTT is crucial as they represent where audiences are consuming content. By aligning advertising strategies with these platforms and technologies, marketers can reach their target audiences more precisely, optimize ad placements, and tailor messages to resonate with viewers in an increasingly fragmented media environment. This knowledge empowers marketers to stay ahead of trends, maximize ROI, and remain competitive in the ever-changing world of television and streaming advertising.