Más contenido relacionado La actualidad más candente (10) Similar a Succeeding in a Fragmented Media and Entertainment Market (20) Más de Michael Goodman (6) Succeeding in a Fragmented Media and Entertainment Market1. Succeeding in a Fragmented
Media and Entertainment Market
Michael Goodman
Director, Digital Entertainment
Yankee Group
mgoodman@yankeegroup.com
May 6, 2008
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
2. The media and entertainment market is
fragmenting as a result of ubiquitous
connectivity
This is fundamentally changing the
production, distribution, consumption,
and monetization of movies, TV shows,
games and music
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 2
3. Agenda
• Macro trends
• Who is the Anywhere Consumer?
• Why are they important?
• Conclusions and recommendations
• Question and Answer
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 3
4. Ubiquitous connectivity's impact on the media &
entertainment ecosystem
Distribution
Ubiquitous
Connectivity
Ubiquitous
Connectivity
Consumers
Digital
Content
Connected
Devices
Ubiquitous
Connectivity
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 4
5. Key issues affecting the media & entertainment industry
1. Monetizing ubiquitous content: Ubiquitous connectivity means digital
assets are everywhere—how do content owners control, promote and
monetize them most effectively?
2. Cross-platform distribution: From a few well-understood silos,
ubiquitous connectivity is creating new paths to market and profit with
growing cross-platform distribution options; highly competitive choices
with differing capabilities, shifting power structures and evolving
economics.
3. Anywhere Consumer™ 2012: With a greater diversity of devices and
access to content and each other, Anywhere Consumers are increasingly
less loyal, more experimental, and demand greater control over how,
when and where they access content and interact with their communities.
4. Anywhere Brands: In the emerging Anywhere environment, ubiquitous
connectivity has created a world where content, media and consumers
are everywhere. As a result the value chain for advertising and brandbuilding is changing dramatically, with new players emerging and roles
changing.
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 5
6. Key issues affecting the media & entertainment industry
1. Monetizing ubiquitous content: Ubiquitous connectivity means digital
assets are everywhere—how do content owners control, promote and
monetize them most effectively?
2. Cross-platform distribution: From a few well-understood silos,
ubiquitous connectivity is creating new paths to market and profit with
growing cross-platform distribution options; highly competitive choices
with differing capabilities, shifting power structures and evolving
economics.
3. Anywhere Consumer™ 2012: With a greater diversity of devices and
access to content and each other, Anywhere Consumers are increasingly
less loyal, more experimental, and demand greater control over how,
when and where they access content and interact with their communities.
4. Anywhere Brands: In the emerging Anywhere environment, ubiquitous
connectivity has created a world where content, media and consumers
are everywhere. As a result the value chain for advertising and brandbuilding is changing dramatically, with new players emerging and roles
changing.
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 6
7. Who is the Anywhere Consumer?
Anywhere consumers lead a digital lifestyle, demanding
access to news & information, entertainment, friends and
family and commercial enterprises, unbound by time,
location or device
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 7
8. The Anywhere Consumers presence is being felt around
the world
In 2006 advertising
expenditures on new media
outgrow traditional media in the
US
56% of Internet users in France
have shared photos with friends
and family in the past month
26% of Chinese households
will subscribe to digital
television by 2011
Apple has sold over
100 million iPods
29% of Internet users in
Spain Interact with friends
through social networking
web sites
In the US 123 million
Internet users a month
watch internet video
There are 1.157billion
broadband users and 2.57 billion
mobile users worldwide
By 2010, 82% of
mobile users will be on
2.5G or 3G networks
There are over 170,000
hotspots globally
Source: TVB, IAB, InternetWorldStats.com, Yankee Group, 2008
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 8
9. Pirates are quintessential Anywhere Consumers
• Pirates consume abnormallyhigh volume of content,
making them media
companies’ best customer
68%
41%
35%
• Pirates have the greatest need
for consumption flexibility
43%
25%
23%
11%
10%
Subscribe to
premium
channels
(i.e.,HBO)
Watch Video on
Demand (VOD)
Watch video
online several
times per day
Somewhat/very
interested in
mobile video
Services consumed
– They supplement legitimate
consumption with piracy, when
content is not available, or can’t
be easily consumed on the
desired device
• Content owners can curb
piracy by giving “pirates”
access to content
– At a reasonable price
Non-Pirates
– Without burdensome
consumption restrictions
Video Pirates
– In any geographic locale, at any
time
Source: Yankee Group Anywhere Consumer: 2007 U.S. Entertainment Survey
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 9
10. As consumers become more connected it effects how they
interact with different forms of entertainment
U.S. Addressable Market (in Millions)
Networks
2006
2008
2010
2012
Mobile Subscribers
233.0
273.3
293.0
300.1
Active Mobile Data Users
106.8
157.1
174.4
181.0
Internet Users
210.2
226.8
247.6
270.3
Connected Consoles
-----
18.1
26.6
30.3
Digital Audio Players
65.3
81.5
83.1
85.0
Digital Video Players*
28.7
50.2
64.3
69.3
Handheld Game Systems
38.3
45.4
51.4
52.9
Devices owned
* Includes DAPs, Sony PSP and dedicated video players
Source: Yankee Group Forecasts, 2008
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 10
11. How do connected consumers spend their time?
• Consumption is a
function of time and
access
Average Perceived Time Spent per Day by Activity
Total
(HH:MM)
Teens
(HH:MM)
Moms
(HH:MM)
Watching TV
3:36
3:38
3:50
Surfing the Web
3:12
2:58
3:41
Reading
Newspaper/Magazine
1:36
1:33
1:55
Talking on Phone
1:24
1:22
2:02
Listening to Radio
1:20
2:16
2:20
Listening to Music (CD,
Internet, MP3, etc.)
1:18
2:56
1:42
Talking on Cell Phone
1:18
2:13
1:02
Watching DVD/Video
1:18
2:05
1:38
Playing Video Games
0:54
2:25
1:00
IM
0:42
1:41
0:59
SMS
0:24
1:09
0:39
Total
17:02
21:46
18:07
Source: Yankee Group Anywhere Consumer: 2007 U.S. Entertainment Survey
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 11
12. How do connected consumers spend their time?
• Consumption is a
function of time and
access
• Time spent on various
activities vary by
segment
Average Perceived Time Spent per Day by Activity
Activity
Total
(HH:MM)
Teens
(HH:MM)
Moms
(HH:MM)
Watching TV
3:36
3:38
3:50
Surfing the Web
3:12
2:58
3:41
Reading
Newspaper/Magazine
1:36
1:33
1:55
Talking on Phone
1:24
1:22
2:02
Listening to Radio
1:20
2:16
2:20
Listening to Music (CD,
Internet, MP3, etc.)
1:18
2:56
1:42
Talking on Cell Phone
1:18
2:13
1:02
Watching DVD/Video
1:18
2:05
1:38
Playing Video Games
0:54
2:25
1:00
IM
0:42
1:41
0:59
SMS
0:24
1:09
0:39
Total
17:02
21:46
18:07
Source: Yankee Group Anywhere Consumer: 2007 U.S. Entertainment Survey
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 12
13. How do connected consumers spend their time?
• Consumption is a
function of time and
access
Average Perceived Time Spent per Day by Activity
Activity
Total
(HH:MM)
Teens
(HH:MM)
Moms
(HH:MM)
• Time spent on various
activities vary by
segment
Watching TV
3:36
3:38
3:50
Surfing the Web
3:12
2:58
3:41
Reading
Newspaper/Magazine
1:36
1:33
1:55
• TV and Internet are
always the top two
activities
Talking on Phone
1:24
1:22
2:02
Listening to Radio
1:20
2:16
2:20
Listening to Music (CD,
Internet, MP3, etc.)
1:18
2:56
1:42
Talking on Cell Phone
1:18
2:13
1:02
Watching DVD/Video
1:18
2:05
1:38
Playing Video Games
0:54
2:25
1:00
IM
0:42
1:41
0:59
SMS
0:24
1:09
0:39
Total
17:02
21:46
18:07
Source: Yankee Group Anywhere Consumer: 2007 U.S. Entertainment Survey
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 13
14. Today the television and the internet peacefully coexist
Which of the following activities do you do while watching TV?
Percent Respondents
62%
60%
Surf the web
65%
61%
69%
66%
70%
57%
e-mail
Talk on phone
32%
32%
IM
51%
42%
45%
47%
Read magazine
16%
15%
Listen to radio
Read newspaper
SMS
73%
23%
21%
8%
6%
Total
Moms
Teens
38%
41%
20%
Source: Yankee Group Anywhere Consumer: 2007 U.S. Entertainment Survey
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 14
15. Increasingly consumers want greater control over what
they view and when they view it
• User generated videos (57%) are
the most popular from of
streaming video followed by
clips from TV shows (54%) and
movie trailers (51%)
Percent Online Users
Watch streaming online
• In addition to internet delivered
video, DVRs and VOD also
provide on-demand solutions
–
–
43% of online households have
used VOD from their cable or
IPTV service provider
27% of online households own a
DVR
• The challenge for broadcast and
cable programmers is it maintain
their brand in an on-demand
world
34%
Download video
12%
Copy video from my PC to a
portable device (e.g. iPod or
similar device)
3%
Recorded a TV program to a PC
3%
Copy video from my PC to my
mobile phone
1%
Source: Yankee Group Anywhere Consumer: 2007 U.S. Entertainment Survey
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 15
16. For TV content, broadband video is just another DVR
% of consumers who watched full TV episodes
83%
56%
36%
35%
31%
18%
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Why Do You Watch TV Episodes Online
Source: Yankee Group Anywhere Consumer: 2007 U.S. Entertainment Survey
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
• Thirty eight percent of consumers
who watched video online in the
past month, watched episodes of
TV shows
• Women prefer online TV for
practical reasons
– Eighty seven percent of
women, who watch full TV
episodes online, do so
because they missed the
broadcast, compared to 80%
of men
– Thirty four percent watch
because they were interrupted,
compared to 29% of men
• Men watch TV online for
sentimental reasons
– Forty-two percent of men who
watch TV episodes online, do
so to see an episode again,
compared to 28% of women
– Twenty four percent like
watching older shows,
compared to 11% of women
Page 16
17. Advertisers must bring less disruptive, better-targeted ads
to TV
• Ad-skipping will continue to
grow as DVR penetration
increases with time
% of DVR owners
49%
2006
42%
2007
40%
• Consumer will time-shift their
consumption to avoid ads
33%
– Fifty three percent of DVR
owners wait to start watching
the show, to skip the
commercials
15% 14%
2% 2%
Always
Most of the
Time
– DVR ownership increased to
27% of US households,
compared to 20% in 2006
Occasionally
Never
• Ad-skipping is slightly less
severe in men
– Women are less patient, with
47% fast forwarding always,
compared to 37% of men
Frequency of skipping commercials
Source: Yankee Group Anywhere Consumer: 2007 U.S. Entertainment Survey
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 17
18. Limiting functionality does not enhance engagement
• Consumers dislike ad formats
that interrupt their video
% of DVR owners
Disable FF
Capability
During Ads
78%
Can't FF ads
during ondemand TV
shows
77%
– Fifty seven percent found
picture-in-picture ads, which
conceal part of the screen
very/unacceptable
• Less intrusive formats are
more likely to gain consumer
favor
– Fifty two percent of DVR
owners found advertiser’s logo
displays very/acceptable
Can't FF ads at
beginning and
end of shows
58%
– “More information” ad button
found even more support, with
64% of DVR owners finding it
very/acceptable
Somewhat/Not at all Acceptable
Source: Yankee Group Anywhere Consumer: 2007 U.S. Entertainment Survey
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 18
19. In order to succeed business models must be aligned to consumer
behavior
Mobile Users
% Respondents
Aware of mobile video service
Interested in subscribing to mobile video
service
Use mobile phone to watch video
77%
12%
7%
Mobile video’s business model is misaligned with consumers usage patterns
• Early results show that mobile users are snacking on video – watching 1-2 hours
a month
• Most consumers will not pay ~$15 a month for a service they are only using for
an hour or two
• Advertising is required to remove the financial burden from consumers and make
mobile vide a success
Source: Yankee Group Anywhere Consumer: 2007 U.S. Entertainment Survey
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 19
20. Mobile billing paves the way for digital media
% mobile phone owners who bought and downloaded
content to mobile phone
61%
22%
12%
3%
Add to mobile
bill
Credit card
Bank account
PayPal
When Purchasing Entertainment on Mobile Phone, How Do You Pay?
• Thirty percent of mobile users
have purchased and
downloaded content to their
mobile phone
– Ninety percent of US
consumers own mobile a
phone
• Females are more pragmatic,
with 65% preferring payment
added to mobile bill,
compared to 57% of males
• Although they want to paying
by adding charges to their
mobile bill, males also favor
credit card payments
– Twenty eight percent of men
who bought and downloaded
content to their phone, paid with
credit card, compared to 17% of
females
Source: Yankee Group Anywhere Consumer: 2007 U.S. Entertainment Survey
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 20
21. Conclusions and recommendations
Multi-channel Video Providers
– Launch online properties for video syndication. Programmers are looking for online audiences.
Service providers that are usually also the broadband providers have those audiences. Launching
online properties similar to Comcast's Fancast and offering programmers a distribution outlet will
help solidify a service provider's position in the online entertainment value chain.
– Connect the set-top box to the internet. Service providers are uniquely positioned to deliver PC
video to the TV. Bridging the PC-TV divide is inevitable. Being the first movers in this space, service
providers can stake their place in the market and negotiate more favorable distribution deals with the
programmers.
Programmers
– Protect your brand. Media companies must maintain and enforce their brands in cross-platform
environments. The role of the media brand cannot be overstated, because it is the thing that unifies
the content with the experience.
– Design for usability. Usability is the branded experience. Ubiquitous broadband connectivity means
that viewers have dozens of choices for the programming they seek. The only way to monetize
fragmented, cross-platform audiences is to maintain the audience from one platform to another.
Media companies must make it easy for the viewer to remain loyal to their brands and properties.
Advertisers
– Standardization is required. Standardization is one of the key obstacles in shifting from a world of
30- and 60-second video ads to interactive overlays, tickers, bugs and telescopes. Advertisers and
agencies are challenged--both in terms of media planning and implementation--when each vendor
and media company has a slightly different implementation of common advertising format.
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 21
22. Thank You
Michael Goodman
Director, Digital Entertainment
Yankee Group
mgoodman@yankeegroup.com
Charting the Evolution of Anywhere
© Copyright 2008. Yankee Group Research, Inc. All rights reserved.
Succeeding in a Fragmented Media and
Entertainment Market
Page 22
Notas del editor WHAT I SAY:
Of course if you already know Yankee Group – the old horsehead – you probably know we have been monitoring and analyzing issues in communications for our entire 37-year history.
We now do primary quantitative research and forecast connectivity trends around the world.
Within the last two to three years, we have seen a fascinating set of things emerge from the thousands of data points we gather each year. Here are just a few that got us thinking harder about what we’ve been seeing:
(Click)
(Repeat a few of the emerging data points)
If you step back a bit from the trees, what does this forest look like? An incredible adoption around the world of connectivity technologies in all their various forms. It tells you that the US is not the center of connectivity adoption, it tells you that connectivity matters to businesses, entertainment, consumers, all over the place.
NOTES/SUGGESTIONS:
This slide is a build. There is nothing wrong with it. Once it’s up and the picture is blank, the next click will start the boxes coming on counter-clockwise. They start slowly and then pick up speed. Just click ONCE.
Notes/Suggestions:
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