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futurePROOF: Paid Content

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A presentation by Euan Mackay - Managing Consultant at Kantar Media - on people's willingness to pay for different media

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futurePROOF: Paid Content

  1. 1. paid contenteuanmackay<br />
  2. 2. for: rupert<br />against: arianna<br />
  3. 3. 8%<br />4%<br />23%<br />3%<br />9%<br />
  4. 4. paid for tv content<br />
  5. 5. who will pay for tv content?<br />23% of population agree with statement “I am willing to pay for certain TV programmes or channels if it is something I really want to watch” <br />Those willing to pay are more likely to be Male, ABC1 and in the younger age groups <br />32% of under 34s agree they are willing to pay for TV content (index=136)<br />
  6. 6. 30% of respondents agree that ‘rather than paying for on-demand tv, I’d prefer to have advertising’<br />
  7. 7. how do these groups co-exist?<br />46% of sample<br />prefer ads than paying for on-demand content<br />willing to pay for content<br />15%<br />35%<br />50%<br />23% of pop<br />7% of pop<br />30% of pop<br />16% of pop<br />23% of pop<br />
  8. 8. group 2: not willing to pay for tvcontent but will accept ads for on-demand (23%)<br />
  9. 9. less a bias towards younger tech savvy groups…<br />
  10. 10. they are unlikely to have sky (index 83) and much more likely to be freeviewhomes (index 121)<br />
  11. 11. US dramas: 106<br />US comedy:106<br />UK drama:107<br />news: 104<br />UK comedy: 113<br />documentaries:114<br />
  12. 12. what about in the land of newspapers?<br />
  13. 13. 3% ‘would be willing to pay for newspaper content online’<br />
  14. 14. young, affluent and tech savvy males…<br />
  15. 15. this group is more likely to be getting daily news through internet (14% ) than newspapers (9%)<br />
  16. 16. much more likely than the overall population to say ‘newspapers are a thing of the past’ – 28% agree<br />
  17. 17. but what about those who may yet follow suit? – the non-rejectors of paid content?<br />34% of the population don’t reject the idea outright of paying for news content via mobile or online<br />these are likely to be the secondary targets for publishers<br />these will be the ones that either make/break the ventures<br />so, what do we know about them?<br />
  18. 18. they are: under 35 even gender split more C2DEs less tech-savvy<br />
  19. 19. not really relying on newspapers as main source of news (index=85)<br />
  20. 20. 17% read a ‘quality’ paper in the last week19% have read a mid-market in the last week33% read a popular in the last week<br />
  21. 21. what are the non-rejectorsfrequently reading in paper and online?<br />in paper<br />news<br />sport<br />(other) tv<br />lifestyle<br />film<br />online<br />news<br />sport<br />film<br />music<br />Entertainment<br />Figs in brackets: Index where total pop=100<br />
  22. 22. paid content: some thoughts<br />demand for paid-for content is generally low across the board<br />acceptance of advertising in place of payment increases as you move along the technology curve<br />paid-for tvon-demand content is one of the more likely areas where people will pay<br />newspapers still have a long way to go to grasp the imagination of the masses but there are a healthy proportion of non-rejectors<br />
  23. 23. paid contenteuanmackay<br />
  24. 24. these people are likely to be young, affluent males – a ready made ad sales argument<br />
  25. 25. group 1: will pay for tvcontent but not accept ads for on-demand<br />
  26. 26. young, affluent and tech savvy<br />
  27. 27. most likely to have pay tv services on main set – esp. sky (index 149) <br />
  28. 28. more likely to have latest technologies:<br />dvrs– 51% (index 141) and hd– 21% (index 135)<br />
  29. 29. US dramas: 118<br />US comedy: 120<br />sport: 130<br />reality tv: 131<br />
  30. 30. group 3: will pay for tvcontent and accept ads for on-demand<br />
  31. 31. they are young and tech savvy – over half under 35 (index 162) <br />
  32. 32. they are likely to have sky (index 162) and sky+ <br />
  33. 33. US dramas: 131<br />US comedy: 165<br />sport: 123<br />reality tv: 135<br />music: 142<br />
  34. 34. Those who will pay for tv content but don’t want advertising (16% of pop) (prefer to pay more for on demand content)<br />Equal gender split<br />Upmarket skew (56% ABC1 – index 102 vs pop)<br />Skewed towards younger aged groups<br />43% aged 12-34 (index=123)<br />34% aged 35-54 (index=103)<br />23% aged 55+ (index=73)<br />Most likely to be in upper end of tech spectrum<br />67% of this group in top 3 segments of spectrum<br />Most likely to have Sky on main set (60%)<br />39% have Sky Sports Subscription (175); 30% have sky movies subscription (162)<br />Have DVR on main set (49%) – (146)<br />Have HD on main Set (20%) – (144)<br />Skewed towards younger aged groups<br />Frequently watch Dramas from the USA (31% index - 118); Comedy from the USA (27% - index 120); Sport (45% - index 130); Reality TV (19% - index=131); <br />Favourite TV channels are much more likely to be ‘digital’ channels – SKY channels in particular (45% index 150)<br />Generally satisfied with TV overall (69% - index 114) <br />More likely to place importance upon other digital channels than the other groups<br />
  35. 35. Willing to pay for TV content and would prefer accepting advertising than paying extra for on-demand content<br />7% of population<br />Male skew – 58% (index=119)<br />Upmarket skew – 59% ABC1 (index=107)<br />Much more likely to be younger ages<br />56% of this group aged 12-34 (index 162 vs pop)<br />31% aged 35-54 (index – 94 vs pop)<br />13% aged 55+ (index – 41 vs pop)<br />81% within the top 3 segments of the tech spectrum<br />Most likely to have Sky on main set57% (index=144)<br />39% have DVR on main set (index=115)<br />Frequently watch Dramas from the USA (34% index - 131); Comedy from the USA (37% - index 165); Sport (43% - index 123); Entertainment (38% - index 148); Documentaries (37% - index – 124); Music (37% - index 142) Reality TV (20% - index=135); <br />Favourite channels likely to include Channel 4 platforms (58% fave channel any C4 – index 124) – E4 seems a real favourite here – 32% (157); also likely to be fans of Five platforms (31% - index 117) as well as UKTV (32% - 140) and Sky channels (51% - index 170)<br />Most satisfied with TV overall – 79% satisfied<br />
  36. 36. Not willing to pay for TV content and would prefer advertising than paying for on-demand content<br />23% of population<br />Male bias – 53% m (index 109vs pop)<br />ABC1 – 59% (index 107 vs pop)<br />Much more even age split<br />12-34 – 36% (103)<br />35-54 – 34% (104)<br />55+ (30% (93)<br />62% in top 3 tech segments<br />More likely to have Freeview on main set (54%) index=121 vs pop<br />Less likely to have Sky on main set (33%) index=83<br />Unlikely to have paid premium service<br />Frequently watch Comedy from the UK(51% index - 111); Documentaries (35% - index – 119)<br />Less likely to frequently watch sport (28% - index 80); Music (21% - index 79); <br />More likely to include terrestrial channels amongst their favourites – BBC1 59% (105); BBC2 37% (108) and 41% saying ITV1 (102). Seem to be more keen on ITV channels than Group 1 or 2 <br />
  37. 37. So what about newspapers?<br />3% agree with the statement ‘I would be willing to pay for newspaper content online:’ (n=64)<br />Good news given press reports from this weekhttp://www.guardian.co.uk/media/2009/nov/03/dharmash-mistry-newspapers-paid-content<br />What about mobile content? Well again not a great case… 2% agree with the statement ‘I would be willing to pay to receive newspaper content on my mobile device’ (n=51)<br />Given the limited base size of these, I’ve combined these to look at people who are willing to consider paying for online OR mobile content – 4% of respondents – n=90<br />
  38. 38. So who are these people willing to pay for news content right now?<br />50% are under the age of 35 (145) – 6% of under 35s are in in this boat<br />Male bias: (64:36) (131)<br />Much more likely to be ABC1 (64:36) (115)<br />70% within top 3 technology segments (51% in top 2)<br />Main source of daily new is TV, but less likely than population overall to be using this and other traditional media. More likely to be using online (5% use newspaper websites - 233; 9% use other sites - 228) <br />28% agree that newspapers are a thing of the past (333)<br />38% agree they like the idea of reading a newspaper on an electronic device or e-reader (533)<br />They are likely to tell people about their experiences - 31% agree they like telling other people about new technologies (173)<br />Generally more likely to be reading national newspapers than the overall population (shocker) – compared to population much more likely to have read a Quality (166) – 7% who have read quality in last week are willing to pay now. 5% who read popular in last week prepared to pay and just under 5% of those reading a mid market are willing to pay<br />Of those who have used quality newspaper websites in last week, 15% are prepared to pay for access to content<br /> 26% have used quality paper sites in last month, 11% used popular sites and 9% used mid market sites<br />11% of those who have used quality sites in le last month are willing tp pay<br />8% of people who used popular sites in the last month are willing to pay<br />
  39. 39. The non-rejectors…<br />Core of these people remains within the younger age groups – 42% aged &lt;35 (122)<br />41% of under 35s have indicated they are not against the idea of paying for news content (they’re just not mad on the idea)<br />There is a more even gender split amongst this group, though males are still slightly more open than females<br />Interestingly the non-rejectors includes a much higher proportion of C2DEs than we have seen, indeed 39% of C2DEs are non-rejectors of paid news content (115)<br />Although the non-rejectors are still more likely to fall within the developed end of the tech spectrum there is less a reliance on these groups than seen amongst those willing to pay now<br />This group currently use TV as their main source of news, and are slightly more likely to be users of newspaper websites. They are however less reliant on printed papers than the population overall (15% use newspapers as main source – index 115)<br />This group still see some value in newspapers though.they are not as fanatical as those who are ready to pay for content now. 17% of them agree they could not live without newspapers (96)<br />Although not everyone in this group agrees, they are more likely than the average to like the idea of reading a newspaper on an electronic device or e-reader (9.5% - index 139), suggesting that there may be some scope for development with that too<br />So what are they reading? Non-rejectors are less likely to be quality paper readers (weekly) than overall, with 17% having read a quality in the last 7 days, they are more likely to have read a popular 33% or mid market 19%<br />In terms of newspaper website use and what they are reading… 10% have visited a quality newspaper site (102), 6% have read a popular newspaper site and 4% a mid-market site<br />35% of quality website users don’t reject the idea of paid content , 36% of populars feel this way with 39% of mids website users open to paying for content<br />
  40. 40. what are these non-rejectors reading in paper vsonline<br />in paper<br />News –80% (86)<br />None – 46% (112)<br />Sport – 24% (95)<br />Other TV –16% (97)<br />Entertainment – 25% (100)<br />Lifestyle and Leisure – 13% (95)<br />Films – 23% (105)<br />Music – 19% (121)<br />Soaps – 10% ((99)<br />Debate/Opinion –9% (103)<br />Arts – 5% (94)<br />online<br />None – 86% (96)<br />News – 12% (121)<br />Sport – 8% (112)<br />Films– 4% (140)<br />Music – 4% (151)<br />Entertainment – 3% (136)<br />Arts– 3% (178)<br />Lifestyle & Leisure – 3% (139)<br />Debate/Opinion – 3% (153)<br />Other TV – 2% (129)<br />Soaps – 2% (121)<br />Figs in brackets: Index where total pop=100<br />

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