BACKGROUND
The way audiences consume entertainment periodically undergoes
a revolutionary change. Vaudeville gave way to silent lms around
the turn of the last century, which in turn gave way to talking
pictures, which, by the 1950s, were losing ground to television.
These technological advances put pressure on the legacy
industries to innovate to stay competitive. The tension created
by competing industries often proves a boon to consumers who
now have better products to choose from and more options
available to them. Competition from TV, for example, pushed the
movie industry to introduce “Glorious Technicolor,” “Breathtaking
Cinemascope” and “Stereophonic Sound” to lure audiences back
to the cinemas.
We are in the midst of another such revolutionary change in the
way audiences consume entertainment with the advent and rapid
expansion of subscription Video-on-Demand (SVOD) and Over-
the-Top (OTT) video services. A new survey from IBB Consulting
reveals that almost half of all US broadband customers subscribe
to at least one OTT video service, about one-third subscribe to
two, and 18% subscribe to three or more (Baumgartner, 2017).
Meanwhile, Forbes reports that Netix has surpassed cable in
total subscribers (Morris, 2017).
Many millennials have never and will never subscribe to cable
(Newman, 2014); and with growing frustration over the lack of
choice and skyrocketing costs, hundreds of thousands of former
cable subscribers are cutting the cord --one study revealed that
the cable industry lost more than 658,000 subscribers during the
second quarter of 2015 alone (Cord, 2015)-- opting instead to
create their own á la carte packages using SVOD.
Competition from the SVOD services has forced many cable
companies to offer “skinny bundles,” to stop the hemorrhaging of
customers, but it may be too little too late to save the industry.
And if broadcasters were once tempted to scoff at SVOD services
as a novelty or temporary fad, they probably aren’t scofng
anymore. Original lms and series developed exclusively for SVOD
services are starting to dominate awards shows: Manchester By
the Sea, developed by Amazon, was nominated for six Academy
awards, including Best Picture, and brought home Oscars for Best
Actor and Best Original Screenplay; and this summer Amazon
Prime original series garnered sixteen Emmy nominations. Netix’s
House of Cards has won several Golden Globe and Screen Actors
Guild (SAG) awards for Best Actor and Best Actress, and Netix
original series racked-up 91 Emmy nominations this summer alone.
With an annual content budget of $2 billion, about 10% of which is
earmarked for originals, Netix is now a major player in Hollywood.
Meanwhile for families, OTT and SVOD provides an attractive,
(largely) commercial-free alternative to traditional broadcast and
cable television. With these services, parents need not worry
about their children being bombarded with ads for toys and candy,
or promos for adult-themed TV shows, movies or video games, or
suggestive commercials for beer, fast food, or ED drugs.
Recently, the National Association of Broadcasters (NAB)
announced that it would mount a challenge to the Federal
Communications Commission’s (FCC) 2004 kidvid requirements
– a ruling that extended the FCC’s requirement that broadcast
channels offer three hours of Educational and Informational
children’s programming each week on their subchannels, just
as they do on their main channel; citing the abundance of kids’
programming now available on streaming and SVOD services.
But just how viable an alternative are these streaming services
and OTT devices for families wishing to protect their children from
harmful and inappropriate content? That is the question the PTC
seeks to answer in this report.
The Parents Television Council’s rst study of streaming video
came in 2008, with our Special Report “The New Tube: A Content
Analysis of YouTube -- the Most Popular Online Video Destination,”
which found that children had ready access to explicit content on
YouTube, even while searching for child or teen friendly terms. That
report was followed in 2010 with “Untangling the Web of Internet
Video: Questions, Answers, and a Report Card for Parents,” which
looked at some of the top streaming content providers at the time
and found that content providers were more lenient in applying age-
based ratings and entirely neglected to use content descriptors;
and that existing child safety online features did not effectively
block offensive content even from children who use every available
procedure to avoid the material.
Since that time, the streaming video marketplace has changed
substantially, with new devices and providers, necessitating a
fresh look at the top streaming video providers and services.
For the purposes of this report, trained PTC staff analyzed the
most popular OTT streaming devices (Apple TV, Amazon FireTV,
Google Chromecast, and Roku), to assess the robustness of the
parental controls and the availability of child- or family-appropriate
programming on these systems and devices.
In addition, we examined how those devices work in conjunction
with some of the most popular SVOD services (Amazon Prime,
Hulu, and Netix) to assess, among other things, whether age-
based or content ratings are being used; how easy or difcult it is
for a parent to determine a program’s rating; and the availability of
family-appropriate original content.
We looked at the process of setting up the parental controls on
both the devices themselves and on the streaming video services
to assess which devices give parents maximum control over the
content their children can access.
Because the menu of available programming on these services is
constantly in ux, and because of the enormous volume of content
available, we chose to narrow our focus to exclusive and original
content only to assess how much information is given to parents
about program content, how the ratings are applied, and how much
child- and family-appropriate programming is made available.
METHODOLOGY
A Parent’s Guide to Streaming Video | 3