It seems there’s not a day goes by without some coverage of paid-for content hitting the headlines. Opinions are divided, both in how to do it and also whether to do it in the first place.Inthe paid content corner Mr Murdoch, alongside him we have Ashley Highfield (former project Kangaroo chief who says the BBC should start charging for iPlayer use)In the free content corner – Huffington Post bod Arianna Huffington and Guardian.co.uk editor Emily BellSo where do the masses fall out?
Within FuturePROOF we have covered off willingness to pay for content across a variety of media. Whilst we don’t go into detail re: whether it’s via paywalls, or micropayments, or subscriber clubs (that’s a study in itself!) we can provide some insight at toplinelevel of the demand (or more likely resistance) to paying for content across different media. In essence we found that TV had the highest level of willingness to accept paid channels/content (perhaps not a massive surprise given the abundance of pay-tv options in the market. We found that paid website content and mobile follow this with demand for paid radio and newspaper content even further behind…Let’s look at a couple of these in a bit more detail…
OK, Paid For TV channels and content…
23% agree (either strongly agree or agree) with statement “I am willing to pay for certain TV programmes or channels if it is something I really want to watch” (n=554). These have A slight skew towards males (53:47)An upmarket profile (57% ABC1).More likely to be at the advanced end of the tech spectrum that trevor mentioned. They are younger than the rejectors – perhaps as a result of being native to the Pay TV generations?<click>(46% fall within Advanced/Leading edge segments compared to 24% of those who won’t pay) – index 192 vs the population as a whole47% are aged 0-34 vs 27% of the rejectors42% are aged 35-64 vs 50% of the rejectors11% aged 65+ vs 22% of rejectors
Despite the relatively positive reaction to paying for TV content we also see 30% of people who would prefer to have advertising than pay for on-demand tv - adopting the Hulumodel if you will. There are another 40% who are floating voters on this subject too…<click>
So, thinking about the two groups, how does the market stack up…<click>Firstly there’s those willing to pay for TV content… this group make up 23% of the population, then those who would prefer advertising…. Another 30% of the population.But what is the relationship between these groups? Is there any cross over between the two?<click>Combining them into one we cover 46% of the population… Within this, we have three separate segments<click>Firstly, those who are happy to pay for content but do not want advertising - this covers 16% of the population<click>Secondly those who would prefer to receive advertising than paying for on-demand content and who don’t want to pay for TV content – 23% of population<click>3. Thirdly there are those who are happy to pay for content to a certain extent but would prefer to have advertising than paying any more for on-demand content – this segment comprises 7% of population as a wholeBreaking with convention I’m going to talk about the second group – the less glamourous bunch who are not willing to pay but will take the ads<click>
So what about these folk who are not willing to pay for TV or on demand content but will accept advertising… This group comprises 23% of the population<click>
This group appears to be fairly closely aligned demographically with the population overall, and less centred on young affluent males like the other groups.They are also less technically developed.They are likely to sit at either end of the tech spectrum and more likely to be in the middle… Mainstream, Medium and Advanced users… Essentially we are talking about the masses rather than your cutting edge…**Indexing at (104), (108) and (110) respectively**<click>
So what do they have in home?Probably the key difference between this group and the others is that they are much more likely to have Freeview on their main set rather than sky (Freeview 54% - index 121) (Sky 33% - index 83). Again this is not particularly surprising perhaps, given their reluctance to pay for content.<click>
Given that they are a bit more of a mainstream group which are fairly closely aligned with the population, the programming they watch is fairly closely aligned to the population as well.Given their reluctance to pay for their TV content though they are unlikely to have a paid premium service such as Sky Sports or Sky Movies. The upshot of this really is that they are less frequent sport viewers (28% - index 80).They are slightly more likely than the population to be watching UK comedy and Documentaries.<click>News – 104UK Drama – 107US Drama – 106UK Comedy – 113US Comedy – 106Documentaries – 114
So that’s TV, but what about the land of newspapers…? In comedy fashion, Rupert Murdoch yesterday tried to pull the rug out from under me with the announcement that he was putting back his deadline for upping paywalls – perhaps he had seen this presentation? Anyway, it’s still a hot topic one way or the other, so what level of resistance is there for paying for newspaper content outside of the printed version?<click>
All in all we saw a pretty mooted response… Only 3% of people agreed that they ‘Would Be Willing To Pay For Newspaper Content Online’ (although given some press reports this week that might actually not be such a poor response).This doesn’t really improve any when looking at Mobile content either – with only 2% claiming that they would be willing to pay to receive content on their mobile…Given the relatively small demand, I’ve combined these groups into a single entity so that we can analyse the data at least a little…
Who are those chosen few willing to pay for newspaper content outside of the printed paper?Again, it’s the younger age groups.Those more au fait with online and technology. Half are aged under 35. However it’s probably worth noting that only relates to 6% of 12-34 year olds so demand is still not huge.Unlike TV though, this group has a heavy Male skew (64:36) and ABC1 skew at a similar levelGiven both the demographics of the group and what they are willing to do, it’s perhaps unsurprising that the majority of this group fall into the more developed end of the tech spectrum.<click>
So what are these people using as their main source of daily news?For the majority it’s TV,but… They are less likely than population as a whole to be using this and other traditional media. Instead they are more likely to be using online. Indeed we see here that there are more people within this group who are using the internet as their main source of news than are using printed newspapers (this does however include the use of newspaper websites).<click>****(5% use newspaper websites - 233; 9% use other sites - 228)***
The relatively low use of newspapers is also backed up by their attitude towards the printed paper…. 28% of those who are prepared to pay for newspaper content agree that newspapers are a thing of the past (index 333)
But let’s face it, who is really going to admit to being willing to pay for newspaper content without seeing what you’re getting for your money? So it’ll not be a massive shock that the numbers are so low.Perhaps of more interest will be to look at those people who are not actively against paying for content. Those people who don’t disagree with the statements. Overall 34% of the population do not outrightreject the idea of paying for either mobile or online newspaper content. Which, all of a sudden sounds like a bit more appealing a market size… (if still somewhat ambitious)<click>
So who are these undecided masses?The core remains within the younger age groups over indexing amongst the under 35s (122). Again it’s amongst those who are at ease with mobile and online content who are least resistant to paying for content.We see a more even gender split amongst this group, though males are still slightly more open to the idea than females.Interestingly this group includes a much higher proportion of C2DEs than we have seen elsewhere. Indeed theyover index slightly on notrejecting paid news content outrightAlthough these non-rejectors are still more likely to fall within the developed end of the tech spectrum there is less of a reliance on these groups than seen amongst those willing to pay right now.<click>****(42% aged<35)********(C2DEs - (39% - 115).)****
This group currently use TV as their main source of news, and are slightly more likely to be users of newspaper websites (index 115) – but this does still represent a very small proportion of this group (3%).They are less reliant on printed papers than the population overall only 15% use newspapers as their main source of daily news (index 85).<click>
So are they reading newspapers at all? Well, yes.Compared to the population overall, non-rejectorsare slightly less likely to read a quality or mid-market paper across the week, but are reading the popular papers - 33% having done so in the last week (index 103).Usage of newspaper websites is still relatively low amongst this group….<Click>***17% have read quality paperin the last 7 days (index 94)*** ***19% have read mid market 19% (index 89)****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 site32% of quality paper readers, 35% of popular paper readers and 30% of mid market readers are non-rejectors of paid content
Finally, a quick look at what these non-rejectors are reading in print and online – so what are the areas to potentially charge for?…For both in print and online, there’s perhaps no shocks in the top two, news and sport. These are almost a given really and given the free alternatives and short life span of their value these are probably not areas that will deliver paying customers to new platforms.Probably more interesting is looking at what people are accessing online and the importance of non-core content. People are using the sites for entertainment (hobby) purposes… it’s the music section, the films, entertainment where people are getting value…It would seem that these are the areas where there are the most hooks for potential to charge for content…
So there we have it, a whistle stop tour of the kind of stuff that futurePROOF could help you look at in the realm of paid for content… by way of a headline summary on paid content….Demand for paid content is generally low – there is a resistance to pay for content that people are already getting for nothingThere is some acceptance of advertising in place of paying for content – and this increases as you move along the technology spectrumPay for TV is one of the more likely areas where people will pay for access to contentThere is widespread resistance to paying for newspaper content either online or on mobile but there are a few folk who don’t reject the idea outright<click>
Looking at those who would rather accept advertising, it is most common amongst the younger age groupsThose “digital natives” who have grown up with the internet and become acclimatised to a (free) ad-funded environment…Again they are young and upmarket. So here you have a ready made sales case… people who want advertising, who are young and affluent…These are a group who are more commonly found at the more developed end of the technology spectrum. Indeed the levels of agreement with the statement actually increase as we progress along each stage of the technology spectrum suggesting this is the way that the future shapers are going… and this is where we could see some growth in the next few months/years<click>36% of those under 35 would prefer to accept adsthan pay for on demand content29% of those aged 35-64 would prefer to accept adsthan pay for on demand content25% of those aged 65+ would prefer to accept adsthan pay for on demand contentGender split: Male (55:45)Social Grade: ABC1 (59:41)Penetration amongst tech spectrum:Laggards: 18% pen (59)Mainstream: 25% pen (82)Medium: 32% pen (105)Advanced Users: 39% (127)Leading Edge: 41% (135)Profile: Laggards: 7%Mainstream: 27%Medium: 26%Advanced Users: 28%Leading Edge: 13%
Looking a bit closer at the first group – those who don’t want ads but are happy to pay for content…<click>
They have a fairly even gender split, but the upmarket skew is evident – 56% of this group are ABC1sThey are a fairly young group with 43% aged under 35 and much less likely than the population overall to be aged 55+ (index 73)This group is heavily skewed towards the upper end of the technology spectrum with 67% in the top 3 segments compared to 56% of the overall population (index 120)<click>
Perhaps unsurprisingly, given the nature of the group, they are more likely to have Pay TV services on their main set – especially Sky. Indeed 60% have Sky on their main set. They are also most likely to be subscribing to premium services such as Sky Sports (39% - an index of 175) and Sky Movies (30% an index of 162)<click>
This is a group who are well up to speed with the latest technologies, 51% have a DVR (Sky+, Freeview+ and the likes) which is an index of 141 vs the overall population. Similarly 21% are enjoying watching in HD (135 index)<click>
So what content are this group watching? (and paying for)… they are more likely than average to be watching US Dramas (118) (Greys Anatomy, House etc), US Comedies (Scrubs) (120) as well as Sport (130) and reality TV (131) – so something for everyone really…Perhaps given what we already know about this group, it’s not a shocker that their favourite channels are heavily skewed towards digital channels – and in particular Sky Channels (Any Sky Channel indexes at 150)This group are happy with what they get on TV and more satisfied than the population overall – no surprise given they are spending money to achieve this!<click>
What about Group 3 then – those folk who are willing to pay for TV content, but would really prefer to receive ads than to pay more for on demand content.This is a smaller group and equates to 7% of the population<click>
We know that they are young – over half of this group aged under 35 (index 162 vs pop) and only 13% of this group are aged 55+. We know that this group are pretty savvy when it comes to technology consumption – 81% are in the top 3 segments of the technology spectrum23% are in the leading edge! An index of 244 vs the population…Perhaps then given their techno know how and age that it’s no surprise they don’t want to pay more for services that they already associate getting for nothing online?<click>
Again (given the nature of the group and acceptance of paying for channels or programmes) this group are likely to have Sky on their main set – 57% do – an index of 144 vs the population. They are also likely to have a DVR on their main set too (41% - index 114)<click>
So, What do they watch on TV? Their tv consumption is relatively similar to that of group 1 – it just seems to be an even younger version. They are still watching US dramas (34% - index 131) and US Comedies (37% - index 165). Still watching Sport (43% - index 123) but are also watching Entertainment (Quiz shows) (38% - index 148) and documentaries (37% - index 124). The main differentiator here seems to be their higher viewing of Music (37% - index 142)This group are also more favourable towards some of the younger channels – E4 seems to be a real favourite here for 32% (167) but again also likely to list Sky channels (51% - index 170) and UKTV channels (32% - index 140) amongst their favourites.This group are the most satisfied with TV – 79% are satisfied<click>
Looking a bit closer at the first group – who don’t want ads but are happy to pay for content…They have a fairly even gender split, but the upmarket skew is still evident – 56% of this group are ABC1sThey are a fairly young group with 43% aged under 35 and much less likely than the population overall to be aged 55+ (index 73)This group is heavily skewed towards the upper end of the technology spectrum with 67% in the top 3 segments.Perhaps unsurprisingly, given the nature of the group, they are more likely to have Pay TV services on their main set – especially Sky (60%). They are also most likley to be subscribing to premium services such as Sky Sports (39% - an index of 175) and Sky Movies (30% an index of 162)This is a group who are well up to speed with the latest technologies, 49% have a DVR on their main set (Sky+, Freeview+ and the likes) which is an index of 146 vs the overall population. Similarly 20% are watching in HD (144 index)So what content are this group watching? (and paying for)… they are more likely than average to be watching US Dramas (118) (Greys Anatomy, House etc), US Comedies (Scrubs) (120) as well as Sport (130) and reality TV (131) – so something for everyone really…Perhaps given what we already know about this group, it’s not a shocker that their favourite channels are heavily skewed towards digital channels – and in particular Sky Channels (index 150)This group are happy with what they get on TV and more satisfied than the population overall – no surprise given they are spending money to achieve this!
What about Group 2 then – those folk who are willing to pay for TV content, but would really prefer to receive ads than to pay more for on demand content.This is a smaller group and equates to 7% of the populationSo, what do we know about them and their tv consumption habits…We know that they are young – over half of this group aged under 35 (index 162 vs pop) and only 13% of this group are aged 55+. We know that this group are pretty savvy when it comes to technology consumption – 81% are in the top 3 segments of the technology spectrumAgain (given the nature of the group and acceptance of paying for channels or programmes) this group are likely to have Sky – 57% do – an index of 144 vs the population. They are also likely to have a DVR on their main set too (39% - index 115)What do they watch on TV? Their tv consumption is relatively similar to that of group 1 – this really just seems to be a younger and less affluent group. They are still watching US dramas (34% - index 131) and US Comedies (37% - index 165). Still watching Sport (43% - index 123) but are also watching Entertainment (38% - index 148) and documentaries (37% - index 124). The main differentiator here seems to be their higher viewing of Music (37% - index 142) and reality TV (20% - index 135)This group are favourable towards some of the younger channels – E4 seems to be a real favourite here for 32% (167) but again also likely to list Sky channels (51% - index 170) and UKTV channels (32% - index 140) amongst their favourites.This group are the most satisfied with TV – 79% are satisfied
Finally, those who are not willing to pay for TV or ondemand content but will accept advertising… This group comprises 23% of the populationBut who are this group? Perhaps one of the key differences between this group and the others is that they are much more likely to have Freeview on their main set rather than sky (Freeveiew 54% - index 121) (Sky 33% - index 83). This group appears to be more aligned demographically with the population overall, 36% under 35, 34% 35-54 and 30% aged 55+This group are also less technically developed, though there is still a bit of a skew towards the top end of the scale – 62% of this group are in the top 3 segments.Given that they are not as willing to pay for TV content and less likely to have Sky in home it follows that they are unlikely to have a paid premium service such as Sky Sports or Sky Movies. This has meant that they are less frequent sport viewers (28% - index 80).
All in all it was a pretty mooted response… Only 3% of people agreed with the statement ‘I Would Be Willing To Pay For Newspaper Content Online’ (although given press reports this week, that might actually be enough for publishers to make decent money)This doesn’t really improve any when looking at Mobile content either – only 2% claiming that they would be willing to pay to receive content on their mobileGiven the relatively small demand, I’ve combined these groups into a single entity so that we can analyse the data at least a little…
Who are those willing to pay for newspaper content?Again it’s the younger age groups. 50% of those willing to pay for newspaper content online or on their mobile are aged under 35. However it should be noted that this does only comprise 6% of 12-34 year olds so the demand is still not huge at this stage. Unlike TV though this group has a heavy Male skew (64:36) and similarly ABC1 skewGiven both the demographics of the group and what they are willing to do, it’s perhaps unsurprising that the majority of this group fall into the more developed end of the techy spectrum.Looking towards the other end the willingness to pay for content is pretty much neglible – amongst mainstream it’s only 3%.
So who are these non-rejectors?
Finally, a quick look at what the non-rejectors are reading in print and in paper and how this differs…