Heavy Streaming Video Viewers Watch Less TV, Nielsen Says
By Wayne Friedman
The Nielsen Company now says streaming of Internet video may come at the expense of some traditional TV viewing, especially among young TV/video users.
According to Nielsen's new "State of the Media: Cross Platform Report" obtained by Media Daily News, the media research company says: "The new trend among TV and Internet homes shows the lightest traditional television users streaming significantly more Internet video via their computers, and the heaviest streamers under-indexing for traditional TV viewership. This behavior is led by those ages 18-34."
The typical research view had been that the heaviest TV/media consumers are big users across all services and platforms. Previous research has shown, for example, that TV viewing and usage did not suffer because of new platforms like the Internet.
As evidence, Nielsen says in the first quarter of 2011, the heaviest streamers group -- those who view 18.8 minutes of streaming video a day -- also watch 272.4 minutes of traditional TV a day. The lightest streamers, those viewing 0.1 minutes of streaming video, watch 290.0 traditional TV minutes a day.
In the fourth quarter of 2010, the heaviest streamers were at 14.5 minutes of daily streaming, and 262.7 minutes of traditional TV. The lightest streamers registered 0.0 minutes of streaming and 270.7 minutes of traditional TV time.
Looking at the key 18-34 users -- those who are generally more Internet-savvy -- Nielsen says the heaviest streamers in this group were watching 27.1 minutes a day of streaming video as of the first quarter 2011, with traditional TV viewing at 212.1 minutes. By comparison, the lightest 18-34 streamers are looking at 0.1 minutes of streaming video and watching 246.5 minutes of traditional TV content.
Although Nielsen says this group is small versus the general population, the results are significant. Nielsen adds that more than a third of the TV/Internet population don't stream any video, and that less than 1% don't watch TV at all.
The news is still good for television overall.
U.S. TV viewers watch 158 hours, 47 minutes of TV a month -- 22 more minutes than a year ago. (This includes any time-shifted playback activity.) This amounts to around 10 hours a day for the heaviest of TV users, and around one hour a day for the lightest TV users.
Nielsen says: "While certain segments of the population are migrating toward specific services and viewing habits, the resounding trend is this: Americans are spending more time watching video content on traditional TV, mobile devices and via the Internet than ever before."
PwC: Entertainment & Media Spending to Grow 5.7% to $1.9T by 2015
Digital platforms expected to account for 58.7% of all growth; cable subs to continue declining
By Tim Baysinger and John Eggerton,Broadcasting & Cable
Worldwide spending on entertainment and media will grow from $1.4 trillion in 2010 to $1.9 trillion by 2015, according to Pricewaterhouse Coopers' Global Entertainment & Media Outlook for 2011-2015.
PwC expects the entertainment industry's post-recession upswing to continue over the next five years, with consumer spending and advertising revenue related to entertainment and media content (E&M) growing at a compound annual growth rate (CAGR) of 5.7% globally. In the United States, E&M-related spending is expected to grow at a 4.6% CAGR to $555 billion in 2015 from $443 billion in 2010.
Digital platforms are driving future operating models, consumer relationships and revenue growth, PwC found. Consumers in today's tech-laden world feel more empowered, and the E&M industry is being forced to create multi-purpose/multi-platform experiences, which also create additional money-making opportunities. The report states that digital is expected to account for 58.7% of all growth by 2015.
"Triggered in large part by the device revolution, the consumer migration to digital has continued at an even faster pace," Ken Sharkey,PwC entertainment, media and communications U.S. practice leader, said. "At the same time advertisers are responding by seeking a greater involvement with the consumer's media and entertainment experience."
In a world where digital is king and pirates are out to overthrow the monarch, PwC predicts that the biggest challenge for entertainment and media companies over that time frame it so leverage five key consumer attributes--convenience, experience, quality, participation and privilege--into a sustainable business model by offering "advantages that outweigh the attractiveness of free or pirated content."
Advertising revenue has shown the strongest growth year-over-year, PwC said; U.S. advertising revenue rebounded at a 5.4 percent growth rate in 2010 from a 14.4 percent slump in 2009. By 2015, U.S. advertising is expected to reach $208 billion, increasing at a 4.2% CAGR overall. The key sectors driving ad revenue include include Internet advertising, expected to increase at a 12.2% CAGR; TV (4.9% CAGR); video games (8% CAGR) and cinema (6.7% CAGR). Directories (-1.8%) and newspaper advertising (-0.2%) are the only advertising categories expected to decline, PwC said.
In a good-news, not-as-good-news scenario for cable operators, PwC projects that consumer spending in the U.S. on combined wired and mobile Internet access will grow at a healthy pace, but expects the cable subs universe to continue to decline to just a hair above half of all TV households. Nonetheless, cable will remain "the dominant television subscription service in the United States," the report states.
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