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Television
viewers watching six or more channels rose to 40 percent vs. 35
percent in 2008. Those watching eight or more television
programs per week increased to 39 percent this year vs. 33
percent last year.
Rent-to-own companies trying to
increase share during the recession may find TV a better value
than in the past. Consumer
survey results released today by Accenture (NYSE:ACN) show
television viewership is up significantly since the beginning of
the economic downturn. However, the increasing fragmentation of
content delivery platforms and the affect they have on ROI
remain largely unknown.
Download the survey results.
Consumers are increasingly watching television content on
multiple platforms, according to findings from Accenture's
second annual Global Broadcast Consumer Survey. Although the
consumption of broadcast television content continues to grow,
viewers are adapting quickly to new choices that change how,
when and where they watch programming.
Accenture conducted its survey of nearly 14,000 consumers
across 13 countries to assess how people in different markets
view and respond to broadcast content and how they are adapting
to new content delivery methods and platforms.
Among the study's most significant findings:
- Viewing of all content – including television – is growing
across all platforms;
- Opportunities in new media abound in emerging markets; and
- Consumers indicate a willingness to pay favoring
subscription services.
More viewing on more platforms
The most significant survey finding is that while fragmentation
of the audience viewing traditional television formats is
continuing, the consumption of broadcast content on all
platforms, including traditional television, is clearly growing.
The results of this year's survey indicate that television
viewership has grown since last year, with an increase in
viewers watching six or more television channels (40 percent of
respondents this year vs. 35 percent in 2008) and watching eight
or more television programs per week (39 percent this year vs.
33 percent last year). The number of respondents who said they
would also enjoy viewing content on other devices increased over
the last year, with 13-point increases in the number who would
watch content on personal computers (74 percent in 2009 vs. 61
percent in 2008) and on mobile devices (45 percent in 2009 vs.
32 percent in 2008).
Global viewing preferences suggest
opportunities for service providers
One of the survey's more striking discoveries is the big
difference in behaviors of consumers in less-developed markets
versus those in more-developed markets. For example, respondents
in the less-developed countries of Mexico, Brazil and Malaysia
were nearly three times as likely as those in the more-developed
markets of the United States, Germany and the United Kingdom to
express interest in watching television content on mobile phones
(ranging from 65-71 percent of respondents in these three
less-developed countries but only from 22-26 percent for those
in the more-developed countries).
The survey also revealed that, in every age group, consumers
are more decisive about their viewing preferences, particularly
in marketplaces like Japan, the United States and the United
Kingdom. This change indicates that consumers are quickly
forming opinions on how they feel about content and how and
where it's viewed.
"Consumers are making choices based on what they've tried,
liked and rejected and are now selecting content and its
delivery platforms," said David Wolf, a senior executive with
Accenture's Media & Entertainment practice. "If today's content
services don't meet consumer expectations, it will be that much
harder for providers to sell to them later, even when services
improve. Providers face an urgent need to capture consumer
loyalty now -- and respond to changing consumption habits -- or
face playing catch-up against other content delivery choices.
"The modes of consumption that provide an alternative to the
traditional TV experience are becoming part of everyday life
rather than the occasional novelty," Wolf added. "Consequently,
providers in this evolving market must drive the consumer
experience by offering the right type of content via the right
device for a particular market."
Loyalty to content remains strong; program discovery
challenging
The survey also found that consumers remain very loyal to the
programs they enjoy watching. Nearly three-quarters (73 percent)
of respondents said they watch some programs on more than one
channel — indicating that consumers follow their favorite
programs from channel to channel and have little loyalty to the
branded content channel to which the content might be
associated.
The increase in viewing platforms and programming makes it
more challenging than ever for consumers to discover and obtain
the best information available about programs they might enjoy
watching. Despite more alternatives like the Internet and
on-screen program guides that help consumers discover and find
new content, consumers are still using traditional means to find
content they would like to watch. These include commercials
(selected by 40 percent of respondents), channel surfing (33
percent), recommendations from friends and family (30 percent)
and TV listings (28 percent).
Economic realities and willingness to pay
Despite the downturn in the global economy, consumers revealed
an increased willingness to pay for different types of
programming. For example, 49 percent of respondents indicated a
willingness to pay for digital service programming, up from 37
percent in last year's survey. At the same time, a significant
number of respondents (40 percent) said they would prefer to
watch ads in exchange for free content.
Among those willing to pay for content, subscription models
beat pay-to-play models in every age group, with paying a fee
for unlimited programming (selected by 25 percent of
respondents) proving much more popular than pay-per-episode or
pay-per-season (12 percent and 9 percent, respectively) fee
structures. Younger consumers are more willing to pay for
content than older consumers are (60 percent for respondents
younger than 25 versus 38 percent for those 55 and older),
although youth are also more willing to watch ads and pay
nothing than are those over 55 (45 percent versus 37 percent).
Subscription service content appears the most resilient to the
economy, as its consumption shows no signs of being hit by a
drop-off in consumer spending.
"This underscores the recession-resistant nature of
subscription models even in today's tough economic climate,"
Wolf said.
Additionally, respondents said they plan to spend less this
year for most types of media content with physical content the
most at risk. According to the survey, the biggest net revenue
loss will be in DVD sales (6 percentage points less than last
year), followed by on demand video (5 percentage points less),
and downloading content to a mobile phone or PC (3 percentage
points less). Subscription content showed no change, with the
number of respondents saying they would spend less equal to the
number who would spend more.
Global market differences
The survey also found that in the more-developed markets,
interest in new content consumption declines sharply with
advancing age. For example, the number of respondents in the
United States who said they would enjoy viewing content on their
mobile devices peaked at 50 percent for those under 25 years old
and bottomed out at 9 percent for those 55 and older.
Conversely, in less-developed markets the level of interest
is high among the younger demographics, falls slightly in the
middle age groups, and then returns in the older demographics.
For instance, in Malaysia, the number of respondents who would
enjoy watching content on their mobile devices reached 71
percent for those in the 25-34 age bracket; dropped to 64
percent for those in the 35-44 age bracket; dipped even further,
to 53 percent, for those aged 45-54; and jumped to 69 percent
for those at least 55 years old.
"We now live in a world where half the population has access
to mobile devices and where audience fragmentation presents
opportunities for content providers to generate revenue," Wolf
said. "The key remains understanding consumers, knowing what
they want and leveraging that data quickly to develop and
deliver the right products and services for the marketplace."
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