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

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Media and Entertainment Barometer IV

  1. 1. KPMG’s Media and entertainMent BaroMeter Smart movesfor new media How is smart technology shaping ‘new media’? kpmg.co.uk
  2. 2. 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.
  3. 3. 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.
  4. 4. 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.
  5. 5. 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.
  6. 6. 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.
  7. 7. 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.
  8. 8. 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.
  9. 9. 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.
  10. 10. 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.
  11. 11. 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.

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