Media and Entertainment Barometer IV
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Media and Entertainment Barometer IV

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Every six months, KPMG takes the pulse of the media industry, surveying users of new and traditional media

Every six months, KPMG takes the pulse of the media industry, surveying users of new and traditional media

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Media and Entertainment Barometer IV Media and Entertainment Barometer IV Presentation Transcript

  • KPMG’s Media and entertainMent BaroMeter Smart movesfor new media How is smart technology shaping ‘new media’? kpmg.co.uk
  • Media Barometer 2011 introduction Smartphones and tablets reel in new consumers while TV continues to enjoy biggest audience. Every six months, KPMG takes the pulse of most popular source of entertainment at a survey indicates that there is a fine line to the media industry, surveying users of new time when global events have dominated tread between protecting their stables of and traditional media. the news agenda. However, certain other traditional media activities while branching traditional media activities, such as reading out into digital opportunities. the surveys, conducted on KPMG’s behalf print newspapers and listening to the radio, by research and consulting organisation there remains a general reluctance continue to decline in popularity. YouGov, reveal shifts in consumer appetite among consumers to acquire paid-for and consumption that can translate into Four-fifths (79 percent) of respondents content online. However, the important david elms powerful indicators for media providers engaged in new media activities, while exceptions are online access and online Head of Media when setting future strategy and direction. 99 percent participated in traditional media content on the move. Smartphones and activities – both statistics are consistent tablets are paving the way for media our fourth Media and entertainment with wave 3 of the research. companies that seek to develop their Barometer highlights a sharp increase new media business models. in the uptake and monetisation of in new media, trends mostly continue smartphones, tablets and e-readers on an upward trajectory in areas such as By keeping track of consumer habits to the month ending 31 March 2011. social networking and eBooks. although on a six-monthly basis, KPMG will alert online media appeals predominantly to media providers to shifting patterns Smartphone ownership is up by one-third the younger age groups (92 percent of 16 of consumer demand, spend and while tablets, new to the UK market in to 24 year-olds participate in new media consumption as they happen. July 2010, have seen their customer share activity), it now extends to 69 percent of the more than double. Users happily pay for over-55s too. in fact, one-third of this older apps, with tablets currently getting the age group engages in social networking larger proportion of their spend. the old and blogging. For media companies, this favourite, television, continues to be the Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 about this Survey all figures, unless stated otherwise, are the surveys sampled people aged 16 or YouGov asks participants about their from YouGov Plc. research was conducted over in the UK. the number of respondents preferences and consumption habits across at six-monthly intervals: to YouGov’s online panel varies in each all types of media, including publishing, wave of research: broadcast, music and gaming in the prior - Wave 1 — 11 - 14 September 2009 month. their responses inform our analysis. - Wave 1 — 1,037 - Wave 2 — 15 - 18 March 2010 - Wave 2 — 1,063 - Wave 3 — 14 - 21 September 2010 - Wave 3 — 2,241 - Wave 4 — 31 March - 5 april 2011 - Wave 4 — 2,103 Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 trend for smartphones and tablets surges upwards Increased spending on smartphones Smartphones are especially popular and tablets indicates growing consumer among younger consumers — more than demand for ‘on the move’ media. half (54 percent) of 18-24 year-olds choose smartphones. three-quarters (74 percent) People cannot get enough of smartphones use their smartphones to surf the net and and tablets in the UK. despite being a to read emails, while 61 percent use it for relatively new introduction to the market, social media. one in eight (12 percent) smartphone ownership is growing strongly, users has read an eBook on the device. up one-third from wave 3 to 36 percent in wave 4. Meanwhile, tablet ownership has What’s more, in the past six months, more than doubled in the past six months. consumer spend on smartphones and, notably, tablets has increased. People now spend close to £9.00 per month on applications (apps) for their tablets and near to £6.00 on apps for their “the bright spot in the smartphones. in the prior month, over media industry is the rise 60 percent of tablet owners paid to of media on the move via access online content, considerably tablets and smartphones. ” more than the 24 percent who paid to david elms, Head of Media, KPMG access content on their smartphones. Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 Spend on apps for smartphones continues Almost three-quarters (74 percent) For which, if any, of the following activities downloaded apps on their smartphones have you used your smartphone? in the past 12 months — however, 42 percent only downloaded free apps, up 97% 96% from 39 percent in wave 3. Those paying for apps spent, on average, £5.65 in the 86% 84% month to 31 March 2011, up slightly from 80% £5.30 in wave 3. 74% 74% 76% apple and BlackBerry continue to lead 62% the smartphone market, although 61% 58% 58% there is increasing pressure from other 53% 53% 50% 51% manufacturers, notably HtC. Men, at Wave 4 Wave 3 40 percent, are more likely to own a 43% smartphone than women (32 percent). However, women smartphone users 32% 28% 28% are nearly twice as likely to own 25% 25% 26% 22% a BlackBerry as men. 18% 21% 15% 14% 14% 13% 12% 11% 11% 9% 9% 8% 7% 6% 4% 3% Sending text messages Surfing the internet Social media Purchasing items Downloading free music Ordering takeaway Taking photos/ emailing photos Reading emails Email & instant messaging Listening to music Playing/downloading free games Reading documents Watching TV/video clips Listening to the radio Paid for games Downloading paid for music Reading eBooks Editing documents Online gambling Reading newspapers Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 Unsurprisingly, given its dominance in the market, apple’s app Store accounted for the majority (73%) of paid apps. this is largely because it offers a wider selection of apps than its competitors, as well as ease of use and a simple payment mechanism. Meanwhile, just 7 percent chose Google app store and 6 percent opted for Blackberry app World. Furthermore, 24 percent of consumers paid to access content using their smartphones. Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 tablets take off Despite the relative novelty of the tablet For which, if any, of the following activities — Apple’s iPad was only launched in the have you used your tablet? UK in July 2010 — its popularity continues. Ownership of tablets more than doubled 74% in the past six months, up from two percent of respondents in wave 3 to five percent 66% in wave 4. Consumers are embracing tablets for making content on the move more 52% 52% 50% 50% 49% 48% 47% accessible via apps and for delivering 44% services, such as games, music and 41% 41% video, that they currently demand. 36% 38% Wave 4 Wave 3 35% 34% as more apps become available, more 31% consumers are indulging in a variety of 28% 27% 25% 25% activities: 74 percent use the tablet to surf 22% 24% 23% 24% the internet; 66 percent to read emails and 19% 19% 16% 15% 52 percent to play/download free games 16% or to read eBooks. Half use it to watch 10% 10% tV/video clips and for social media. 6% 7% 3% 0% Surfing the internet Reading emails Reading eBooks Listening to music Purchasing items Reading newspapers Listening to the radio Editing documents Downloading free music Playing & downloading free games Watching TV/Video clips Social media Email/instant messaging Playing & downloading paid for games Reading documents Downloading paid for music Ordering takeaway Online gambling Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 apple continues to be the most popular 74 percent of smartphone owners preferable for viewing books, newspapers, tablet on the market — increasing market downloaded apps in the same period, of films and tV programmes than on the share by 12 percentage points to 57 percent which, 42 percent were free, one percent smartphone. as new content providers such between waves 3 and 4. However, it is paid for and 31 percent a combination as Sky news, Channel 4 and itV come on anticipated that Samsung, HP dell and , of both. board with video services, we anticipate archos, (which all saw declining market that the tablet’s popularity will grow further. almost three-quarters (74 percent) of share in the fourth wave), will ignite price tablet owners also own a smartphone. Consumers in wave 4 paid to access competition by introducing more these dual owners are, interestingly, more games (32 percent), eBooks (21 percent) affordable hardware. inclined to spend on apps for tablets (£8.87 and music (20 percent) on the tablet. the Four-fifths of tablet-owners downloaded in the month to March 31 2010), than on survey findings clearly point to a continued apps in the month to March 31 2011, of apps for smartphones (£5.65). they are rise in the popularity of smartphones and, which 29 percent were free, 6 percent paid also more willing to pay for content on particularly, tablets. this will continue to and 45 percent a combination of both. the tablets (62 percent paid for access) than on drive expenditure through the internet. apple app Store continues to be the main smartphones (24 percent). this is inevitably source of paid apps — 93 percent visited the due to the size of the tablet and its superior store to download paid apps to their tablets. video quality and screen that make it Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 What’s going up in new media? “there is uncertainty about how Our media barometer provides a fast online markets will develop. snapshot of new media preferences and finds out where consumers are However, high awareness spending their money. levels indicate latent demand, with aspiring consumers buying eBooks: the alternative paperback smart technology and paying for online apps and online media. the increasing availability of tablets and e-readers such as the iPad and the Kindle the catalyst for growth is likely is turning readers to digital content. to be the introduction of lower- priced tablets and smartphones. Since wave 1 of our research in September 2009, consumers of electronic books have More affordable online media almost doubled. For users who prefer services may bring on the tipping the look and feel of traditional content, point that turns innovative e-readers offer an accessible and portable services into mass media. ” format, with a page-turning rather than david elms, Head of Media, KPMG scrolling experience that is not possible on a PC screen. Users spend more on eBooks (£4) per month than on online games (£2) or streamed tV (£1). only downloaded music competes for fractionally more disposable income (£5). Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 Social networking for all 50% 50% Please indicate which if any of the following activities Social networking and blogging remain 49% 47% you have done in the past month? (new media) the most popular online activity. Half of all respondents participate, including one third of the over-55s, while women are 40% Wave 4 (March 2011) more likely to use social networking/ 37% blogging sites than men. 36% Wave 3 (September 2010) Gaming, now a relatively mature 32% Wave 2 (March 2010) online industry, may have suffered as a 29% Wave 1 (September 2009) consequence. it has steadily declined in 27% popularity, from 29 percent in wave 1 to 21 24% 24% percent by wave 4, as it competes for user 22% 22% 22% 22% 21% 21% 21% time. However, gaming (along with social 19% networking) still accounts for the greatest 17% 18% 17% 17% 16% 16% 16% amount of time (12 hours) spent online. 15% 15% 14% 16% 14% 15% 13% 13% 12% 8% 6% 4% 4% Used video on demand for TV Online news portals/ newspapers Streamed online TV programmes Streamed radio Online games Streamed music Social networking/ blogging sites Downloaded music Online magazines Read digital books Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 Streaming – as long as it’s free For the first time, KPMG tested among the younger generation, awareness BBC iPlayer 90% respondents’ awareness of streamed TV of itV Player, Channel 4’s 4od and Lovefilm services and found it to be very high. is higher than among older counterparts, ITV Player 74% while BBC iPlayer’s audience remains the top seven providers achieved awareness consistent, irrespective of users’ age. LoveFilm 58% of between 39 percent and 90 percent. awareness of streaming is much higher Free-view tV services, such as BBC BT Vision 55% among smartphone users than standard iPlayer (acknowledged by 90 percent of handset owners. People who own Sky Player 50% respondents) and itV Player (74 percent), smartphones tend to be tech savvy; they which are heavily cross-promoted by know what streaming services are available 4oD 48% broadcasters, are the most well-known. and are more inclined to search for data Conversion rates are also high. BBC Sky Anytime 39% services online. iPlayer, is used by just under two-thirds (63 percent) of those respondents who Demand 5 25% Which, if any, of the have heard of it. TalkTalk TV 15% following online streaming However, awareness does not always services have you heard of? convert into usage, especially for paid Apple TV 14% services. Half of our respondents had Google TV 14% heard of Sky Player but less than 1 in 10 of these (8 percent) use it. Conversion Seesaw 9% Wave 4 (March 2011) rates for other paid streaming services are even lower. Looking ahead, media Blinkbox 5% providers might respond to consumers’ Other appetite for streaming by offering single 1% tV programmes or mini-daily or weekly None of these 6% subscriptions without long-term tie-ins. Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 tV resilient to smart invasion TV continues to be a top pastime, but other 92% 93% 94% Please indicate which if any of the following activities traditional media activities are losing fans. 88% you have done in the past month? (traditional media) the survey finds that watching tV offline 81% 82% 80% remains the most popular form of consuming 77% 79% 77% 79% 79% media. in wave four, 92 percent of people 72% 72% Wave 4 (September 2009) watched tV, barely changing on the previous 68% 68% 68% 70% 70% 68% two waves. 65% 63% 66% Wave 3 (March 2010) 60% However, the overall consumption of Wave 2 (September 2010) traditional media is declining, and the 53% Wave 1 (March 2011) inexorable migration to online 48% 50% 50% media continues. Certain traditional media activities fail to find favour and attract less disposable 34% 34% income than in the past. Going down in 30% 27% 27% 27% popularity are print newspapers (from 81 26% percent in wave 1 to 77 percent by wave 21% 19% 18% 18% 18% 4), radio (from 82 percent to 77 percent) 16% 15% 15% 14% and playing console/video games (from 34 percent to 27 percent). Listening to Cds declined markedly, from 72 percent in wave 1 to 60 percent by wave 4. Listened to radio Read print newspapers Music events/ performances Read print magazine Listened to CD Watched TV (not online) Visited cinema Read book Sporting events Watched DVD/ Blu-Ray Played console/ video game Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 “Some say that television has gone through a there has been a small decline in demand concerts, while the decline in cinema visits renaissance over the past 18 months. But it never and spend on popular pastimes, like (down from 27 percent in wave 3 to 21 attending sporting and music events or percent in wave 4), is possibly a reflection went away. in its various forms (linear, catch-up, visits to the cinema, since our surveys on less popular releases by film studios in and on-demand), television has remained one of began in September 2009. the time of year recent times. the most powerful media in terms of impact, reach, (March 2011) might be the most probable and the average number of hours people spend cause for this dip in attendance at music watching it” Guy di Piazza, Media analyst, KPMG Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 online or offline? Online and offline media currently serve it is difficult, however, to deny an distinct purposes. overwhelming preference among consumers for the feel and tangibility the overall picture is of a burgeoning mixed of physical offline content. among ecology, as consumers grow accustomed to respondents, who said they prefer to switching seamlessly between online and consume their media offline, 83 percent said offline media for their entertainment needs. they preferred to watch tV and films on a there is, for now, a coexistence between tV than on a computer; 73 percent said they the two that appears to satisfy most people. prefer to read something physical than on Looking ahead, the migration to screen. However, as in the previous waves online media will continue, and media of research, a preference for companies will face a delicate balancing online media is predominantly due act. Media companies’ revenues are to the availability and convenience higher per consumer of traditional content, of ‘on-the-move content’. than per consumer of online content. if companies are to maintain their margins, they will need to rewrite operational and cost models that are geared currently towards traditional content. Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 You said that you prefer to consume media OFFLINE. Which, if any, of the reasons below apply? Wave 4 (March 2011) 89% Wave 3 (September 2010) 86% 85% 83% 79% 80% 76% 73% Wave 2 (March 2010) 60% 57% 56% 49% Wave 1 (September 2009) 20% 19% 15% 14% 14% 13% 13% 14% 11% 5% 8% 8% I would rather watch I would rather read I prefer the I don’t have a fast I don’t want to make I don’t trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media online media an enjoyable experience You said that you prefer to consume media ONLINE. Which, if any, of the reasons below apply? 93% 91% 89% Wave 4 (March 2011) 83% 80% 72% 73% 73% Wave 3 (September 2010) 65% 64% 63% 63% 62% 63% 57% 56% 61% Wave 2 (March 2010) 54% 51% 46% Wave 1 (September 2009) 33% 28% 31% 14% 14% 14% 16% 10% I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that I’m wider choice of environmentally content I want at I want free online it’s more convenient interested in content online friendly a better price Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 Content worth paying for... or not Consumers are increasingly prepared to pay 60% 59% What content would you be prepared to pay for? for content on the move (via smartphones and tablets), but are less keen to pay for 55% 52% access on their desktops. 50% 79% 50% the number of consumers spending time Wave 4 (March 2011) 45% viewing news online has gone up from 32 to 40 percent across fixed and mobile Wave 3 (September 2010) online media since wave 3. Wave 2 (March 2010) 35% 33% Wave 1 (September 2009) 31% 30% 28% 28% 27% 27% 24% “While certain professional 21% 19% and financial publications were 17% 18% embraced, the jury is still out on 15% 13% 12% 12% more general titles, indicating that 11% the subscription paywall model 8% 8% 8% 6% 6% 5% 6% 8% 5% 5% is not yet firmly established.” 5% 4% 4% 3% 3% 3% 3% 3% 2% Guy di Piazza, Media analyst, KPMG TV Music Comparison sites Business news/ analysis Specialist blogs/advice Films Online dating Online newspapers/ magazines Exclusive social networking sites Online gaming GPS sites Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 “ We will continue to see businesses it is still early days for paywalls, but Six out of 10 consumers who said they may drive consumers to their websites KPMG’s Media and entertainment become a subscriber for online content Barometer detects that monetizing content would be prepared to pay for films via fixed to earn revenue from advertising. that is currently free will not be an easy or mobile devices — although, consumers and where it is commercially switch. Just 2 percent of respondents say willing to pay for online gaming took a sensible, we will see content that they would be willing to pay for access hit, falling from 13 percent in wave 3 to is behind paywalls. Both models to content if a website or mobile content 8 percent in wave 4. Surprisingly, just 35 have a place and can succeed site they frequently use began charging. percent would pay for music, compared given the right conditions. ” Most consumers (83 percent) say the with 50 percent in wave 3. david elms, Head of Media, KPMG introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere. Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 Global events – how we keep in touch The past few months have seen global catastrophes and life-changing events unfurl. The survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent). While tV remains the most important medium for current affairs, especially for visual footage, news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami. newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan. Youtube was used by 7 and 12 percent respectively; 4 percent chose Facebook to monitor clips of both events. interestingly, there was a rise in consumers spending more time on newspaper/news portals in March 2011 — 40 percent of consumers viewed news online via fixed and mobile devices. Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.
  • Media Barometer 2011 about KPMG KPMG is a global network of professional Whatever business challenges you face, firms providing audit, tax and advisory KPMG can advise you. We have Media services. We have 140,000 professionals specialists who can challenge your business working together to deliver value in 146 models, identify strategies to maximise countries worldwide. revenues, drive operational costs out of your business and help ensure that you KPMG has a long-standing relationship make the most of the opportunities with clients throughout the Media sector. facing you. our experience of working with clients, which range from major international Contact us: entertainment companies to broadcast companies, publishing companies and David Elms marketing services companies, equips us Partner, Head of Media with the unique insight and expertise that T: +44 (0) 20 7311 8568 is necessary to address the challenges E: david.elms@kpmg.co.uk facing the industry today. Guy Di Piazza Many Media companies are still operating Media Analyst from business plans and models which T: +44 (0) 20 7694 1659 have their roots in the analogue past, not E: guy.dipiazza@kpmg.co.uk the digital future. they are grappling with the changes that now need to be embraced. KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges. Introduction About this Survey Trend for smartphones Spend on apps Tablets take off What’s going on in new media? Streaming – as long as it’s free TV resilient to smart invasion >> Online or offline? Content worth paying for... or not Global events About KPMG << © 2011 KPMG LLP a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. ,Third-party links are provided as a convenience to our users. KPMG LLP does not control and is not responsible for any of these sites or their content. KPMG LLP is obligated to protect its KPMG’s reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site.