Over the last couple of years we have
seen a boom in alternative TV platforms. Brands such as Hulu,
Netfix, Apple's iTV, Google TV and even Amazon are all trying to
get a slice of what is still the largest chunk of media
business.
At the same time, we have also seen an
increase in total TV viewing in the last two or three years across
the world. This has happened despite a widespread belief that TV
viewing had peaked and that increased time online would force us to
cut back on our TV viewing.
How can we explain this apparent
conundrum? And what can we expect from the future? Here area few
personal thoughts.
We thought younger generations
would swap TV for internet. But this has not been the case in the
Western world.
- European studies show that TV is still
the primary media for entertainment across all age groups. The only
exception is with the 15-24s, who are now more inclined to see the
internet as a provider of entertainment, much like the TV. For the
older age groups the internet is still primarily used for seeking
information about products and brands and the TV is used for
entertainment.
- The days will soon be over where we could
label the internet a "lean-forward" media and TV a "lean-backward"
media. Traditional TV is absolutely less engaging and demanding for
interactivity but the increasing amount of content available online
combined with the younger generation's natural and untroubled use
of iPads, computers, smartphones and other devices means that the
divide between leaning forward and leaning backward will become
increasingly blurred.
- The younger generations shift easily
between media, platforms and content. Their engagement is
determined not by the media but by the content.
- Due to the later development of TV
consumption in Asian households, we see a different behaviour in
Asia (see "The future of TV in Asia").
Today's media consumption is
characterised by multitasking. Concurrent media exposure both
distracts and enhances our experience of TV.
- Multitasking is a well-established fact.
This involves not just several media at the same time but also
media consumption in combination with other activities.
- A recent study by Ball University showed
that TV, as a passive media, is under increased pressure. More than
20% of total TV viewing is regarded as a secondary activity. This
highlights the need to communicate with our audiences on multiple
platforms as well as the need to enhance the overall communication
experience.
- Reading is an active activity that can
very well be combined with passive media, but it leads to more
distraction rather than actually enhancing the overall media
experience.
- MP3 players/iPods and Instant Messaging
(IM) are activities that are generally only consumed while doing
something else. IM in particular is a medium where the users have
the opportunity to enhance the experience of the other activities.
For example, IM with friends while playing games. For new digital
services like Groupon, interacting with your friends is actually
necessary to create more value for your network.
- Understanding how media multitasking
affects receptivity is vital as it represents a real picture of
consumer behaviour.
Will we become editors of our
own
- There is no doubt that "The Enemy Camp"
as Business Week dubbed Netfix, Apple, Hulu and Amazon, has had
great success in attracting users and viewers but there are some
signs that the growth has mainly been driven by early adopters and
that Hulu and Netfix are about to hit the ceiling.
- US PC Mag reported in January 2011 that
"Blu-ray movie players and Internet-connected set-top boxes from
Sharp, Samsung, Sony, Toshiba, and even Best Buy will
be introducing a devoted Netfix button to their devices'
remote controls and menus, creating even easier access
to the home video company's ubiquitous streaming
service".
- Netfix, which has successfully
transformed from a DVD rentals firm to an online Video on Demand
business, further growth has to come from new sources and Video on
Demand (VOD) has to become even more simple and accessible to
attract new customers.
- But even with multiple opportunities to
select our own content via online and VOD services, scheduled TV
and programming selected by broadcasters will remain the main
driver for TV viewing, due to strong branding of the channels,
unique content and not at least habitual behaviour.
Next steps: personalising
video communication on individual and household level.
- With the rapid development of behavioural
targeting technologies, companies such as Hulu and Netfix are able
to deliver targeted commercial video content based on household
profiles and TV viewing behaviour.
- Apples iAd solution enables advertisers
to communicate directly with specific audiences on all Apple
platforms.
- Companies such as Visible World are
already providing targeted television advertising within selected
American TV networks. Visible World delivers both the creation of
localised content and administration of delivery on "hub" or
household level, again based on consumer profiles.
Key TV trends
- Video viewing online is growing in the
teenage segment - but not as such reducing TV viewing
- TV is becoming an even more passive
activity because we are engaging in alternative activities when
watching TV
- The majority of consumers still prefer to
watch the video on a TV screen and VOD has to be cheap and
convenient
- Increased popularity of VOD and buying of
content enables profiling and behavioural targeting
Sources:
Admap, Jan. 2011
www.warc.com - Channel planning: Media mesh or media mash?
Business Week, January 2011
Pcmag.com, Jan 2011