devices, consumption, and the digital landscape 2012...ages 18-22; leading millennials, 23-29; gen...
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Devices, Consumption, and the Digital Landscape 2012Research Study Overview &Executive Highlights
Survey fielded January/February 2012
Copyright © 2012 Deloitte Development LLC. All rights reserved.1
• Co-produced, co-sponsored, co-owned research by Deloitte and theHarrison Group
• Looks at media consumption across device types, with a particular focuson tablets
• Explores some themes unearthed by Deloitte’s annual State of the Media Democracy Study as well as revisits some trends The Harrison Group examined in a previous 2010 study on the topic of device usage and media consumption
• Spans four generations and five distinct age groups — same as those in Deloitte’s State of the Media Democracy Study (Trailing Millennials, ages 18-22; Leading Millennials, 23-29; Gen X, 30-46; Boomers, 47-65;Matures 66-75)
• Fielded online by The Harrison Group from late January to mid February 2012
About our “Devices, Consumption, and the Digital Landscape” Study
Copyright © 2012 Deloitte Development LLC. All rights reserved.2
• Consumer: 1,890 U.S. Consumers– 1,042 tablet owners; 1,114 Smart Phone owners– Mean age 41; Median age 40
• The survey was fielded to produce a census-representative sample of U.S. consumers, ages 18+.
• Survey oversampled tablet owners for sake of in-depth analysis; all data was weighted to bring device ownership into U.S. population representative proportions
• Business: 1,252 U.S. Businesspeople– Looks at tablet and other device use “at work” — enterprise, SMB, and SOHO,
across industries– 519 tablet owners/users– 322 IT leadership and staff– 620 people in the content creation, content distribution and publishing
industries
Our research is based on a survey of both US consumers and US business people
Representative Findings
Copyright © 2012 Deloitte Development LLC. All rights reserved.4
Among All Respondents Total
Trailing Millennials
(%)
Leading Millennials
(%)Xers(%)
Boomers (%)
Matures (%)
Desktop computer 49 58 79 82 89
Laptop/Netbook 82 85 76 67 66
Multimedia smartphone 46 65 58 39 29
Multimedia handheld device 48 37 33 19 12
Tablet device 19 28 30 27 20
Dedicated e-reader 29 20 28 22 25
Flat-panel high-definition TV 62 69 68 72 80
Digital video recorder 41 49 50 50 59
27% of the US population own tablets and about half (49%) own smartphones
Which of the following devices do you currently own or use?
75%
74%
49%
29%
27%
25%
70%
50%
49%
Minimum Value
Maximum ValueMidpoint Value =
50 Percentile
27%
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Preference for tablets over laptops increases across generations
Q. You said you own both a laptop and tablet device. Which device is more important to you — that is, which device could you least do without?(Among respondents who own both a laptop and a tablet)
TotalTrailing
Millennials (%)Leading
Millennials (%) Xers (%) Boomers (%) Matures (%)
Laptop 68 92 75 67 65 60
Tablet 32 8 25 33 35 40
825 33 35 40
9275 67 65 60
TrailingMillennials
LeadingMillennials
Xers Boomers Matures
Tablet Laptop
Average6832
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In head-to-head ratings of importance, tablets rank well below both smartphones and laptops
Which device is more important to you overall?
26%74%
68%32%
Tablet vs. Laptop(Own both Tablet/Laptop)
LaptopTablet48% 52%
Laptop vs. Smartphone(Own both Laptop/Smartphone)
SmartphoneLaptop
Smartphone vs. Tablet(Own both Smartphone/Tablet)
TabletSmartphone
Copyright © 2012 Deloitte Development LLC. All rights reserved.7
About half (49%) of all consumers intend to own a tablet by 2013
• Intent to acquire mobile devices outpaces laptops
• Tablets remain the fastest growing tech device
• Two-thirds of all consumers will likely own a smartphone by 2013
• eReaders appear poised to become more a niche device25%
49%
27%
74%
13%
16%
22%
9%
62%
35%
51%
17%
eReader
Smartphone
Tablet Device
Laptop Computer
OwnersPlan to purchase (next 12 months)No interest in purchasing
Device Ownership and Intent to Purchase
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32%
8%
25%
33%
36%
68%
92%
75%
67%
64%
Total
Trailing Millennials
Leading Millennials
Xers
Boomers/Matures
Tablet Laptop
74%
87%
69%
78%
68%
26%
13%
31%
22%
32%
Smartphone Tablet
Trailing Millennials are particularly driven by capabilities of the laptop relative to tablets
Which device is more important to you overall?
Tablet vs. Laptop(Own both Tablet/Laptop)
Smartphone vs. Tablet(Own both Smartphone/Tablet)
Copyright © 2012 Deloitte Development LLC. All rights reserved.9
Q. You mentioned you currently own a tablet device, where did you purchase your tablet from?
Our research provides further evidence of the “showrooming” effect in retail channels
Tablet owners that reported purchasingtablets in Brick and Mortar stores153
percent
16% of intending tablet purchasers will likely research tablets at brick and mortar stores, but
will likely purchase a tablet through an
online channel
There is a disconnect between where consumers are likely to research tablets and where they will ultimately buy them
Portion of customers who intend to purchase a tablet that will likely research at a Brick and Mortar store163
percent
Portion of customers who intend to purchase a tablet at a Brick and Mortar store147
percent
1 Includes manufacturer’s store, national chain electronics retailers, regional chain electronics retailers, local independent electronics retailer, a telecom carrier's stores, and other types of retailer
Copyright © 2012 Deloitte Development LLC. All rights reserved.10
Tablets are considered primarily consumption, not creation, devices, regardless of demographic.
Tablets for consumption, not creation…at least not yet
This trend appears consistently across most generations, with matures least interested in content creation
Only 24% of 1890 respondents are extremely interested or very interested in using a tablet for creation of content — the lowest ranked of all tablet activities
Only 17% of 1890 respondents are extremely interested or very interested in using a smartphone for creation of content — the third lowest ranked of all smartphone activities; Interest in each consumption activity consistently ranked higher on tablets than on smartphones
But even the consumption desire begins to diminish with screen size
The primary use of a tablet continues to be consumption — not creation —of content
No generation has more than 21% interest (net “extremely” / “very”) in using tablets for content creation; Millenials have highest interest
Copyright © 2012 Deloitte Development LLC. All rights reserved.11
• The vast majority of consumers view the complete transition to digital formats as inevitable
• Attitudes, expectations and behavior are continuing to shift
Consumers habits and attitudes towards digital content are changing rapidly
80%
69%
59%
59%
85%
83%
64%
49%
“If I pay for a print newspaper or magazine, I should be able to read it
digitally for free”
“It seems inevitable that all forms of publications will eventually be
produced almost exclusively in a digital format”
“If I could select my own television content and have it streamed to a
digital device for viewing either on the device or on my home TV, I would
give up my cable or satellite subscription”
“When travelling, I typically bring several different magazines
with me to read”
% Agree Strongly/SomewhatIn just 2 years, the
number of respondents who believe that all
publications will eventually be produced almost exclusively in a digital format increased
by 14 percentage points.
20122010
Key
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The “Digital Elite” (owners of a laptop, smartphone and tablet) has grown from 4% to 20% in the last 2 years
Device Ownership(as % of population)
Laptop74%
Smartphone49%
Tablet27%
The “Digital Elite”
Laptop
Smartphone
Tablet
“Digital Elite”• 73% of all tablet owners• 40% of smartphone owners• 39% of eReader owners
(meaning they own 4 devices)
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Tablet Use While Watching TV
10%
23%
20%
31%
14%2%
More than half (53%) use their tablets while watching TV at least half the time they watch
All of the time
(100%)
Most of the time (>75% of the
hours I spend watching
television)
Occasionally (less than 50%
of my TV viewing time)
I never watch TV
Greater than half of the
time 50-75% of the time
I never use my tablet
while watching TV)
• Tablets are nearly universally viewed as entertainment devices, and 43% consider them more important than their television
“I use my tabletas an entertainment device”
90%“My Tablet has become a
more important entertainment device to me than
my television at home”
43%
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Tablets are predominantly communication and media “grazing” devices
83%
50%
45%
43%
42%
37%
31%
10%
3%
Email / Internet
Social Networking
Games
Newspapers /Magazines
Digital Books
Shopping / Ads
Movies / TV
Children's Books
Creating DigitalPublications
Browsing the Internet: 75%
Using email: 68%
Digital newspapers: 31%
Digital magazines: 27%
Digital newsletter: 18%
Buying products throughthe Internet: 31%
Looking at advertising: 12%
Watching TV shows: 24%
Watching movies: 22%
Children reading: 8%
Reading to children: 5%
Activities Engage in Regularly on Tablet
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Consumers appear to expect to be spending more next year for only smart phone voice/data plans
Cellular/wireless phone/data service for smartphone
Wireless data plan for tablet device
Broadband Internet
Paid streaming video (e.g., Hulu Plus, Netflix)
Cable TV (via cable company)
Cellular/wireless phone for basic cell phone
Satellite TV service
DVD/Blu-ray discs by mail service
Home phone
Cable TV through telephone company 6%
6%
7%
7%
7%
8%
10%
11%
12%
15%
65%
74%
67%
67%
74%
69%
66%
79%
67%
76%
30%
20%
26%
26%
19%
23%
24%
10%
21%
9%
Expect to spend more Same Expect to
spend lessCurrently
UseDon’t Use, Plan to Next 12 mos.
54% 12%
16% 15%
83% 4%
31% 12%
49% 4%
62% 4%
30% 6%
28% 10%
62% 2%
18% 5%
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Tablets: Personal / Work Overlap:Total Tablet Usage:
Q. TABLETS: Respondents using the tablet device for personal use, for work, or for both?
Half of tablet owners are currently employing theirdevice in the work place, but few use it solely for work
Personal Use: 93%
Work Use: 54%
PersonalOnly: 46% Work Only:
7%
Both Personal& Work: 47%
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Use of tablet at work lags well behind desktops, laptops, and smartphones
Personal vs. Work Use(Among owners of each device)
6% 4% 4% 7% 6% 7%
32% 38% 41%
15% 24%11%
62% 58% 55%
78%70%
82%
38% 42% 45%
22%30%
18%
Both work and personal use Only use for workPersonal use only
Desktop Computer
Laptop Smartphone Multimedia HH Device
TabletDevice
Dedicated eReader
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Among business respondents with intent to acquire a tablet innext 12 months (Among Tablet Non-Owners)
TotalCompany
size — under $50M
Company size $50–$99MM
Company size $100–$499MM
Company size $500–$999MM
Company size over
$1B
I plan to purchase a tablet device instead of a buying new desktop or laptop computer next year
14 13 15 22 18 14
I plan to purchase a tablet device and plan to purchase a new desktop or laptop computer next year
19 20 18 11 12 22
I plan to purchase a tablet device next year but that has no bearing on my decisions regarding laptop/desktop purchases
61 62 65 63 65 51
I plan to acquire a tablet device within the next year when my company issues me one
6 5 3 4 6 12
Few business users who intend to use tablets at work (but don’t currently) plan to wait for their company to provide one for them
Q. You mentioned that you are planning to acquire a tablet device within the next year. Which of the following statements best describes your intentions regarding tablet and desktop/laptop purchases?
Minimum Value
Maximum ValueMidpoint Value =
50 Percentile
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Publishers’ perspectives are especially misaligned with customer expectations for digital reading
• Consumers, publishers, and marketers believe that more content will be read digitally… but, consumer expectations outpace publisher/marketers by 14-17%
% of respondents that believe more of each content type will be read digitally than are read in traditional printed paper form within two years
67%Newspapers
Books
Magazines
Tablet OwnersPublishers / Marketers
50%
35% 54%
43% 57%
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Contact infoEric Openshaw
Vice ChairmanU.S. Technology, Media, and Telecommunications Industry LeaderDeloitte Consulting LLP+1 714 913 [email protected]@eopenshaw
Phil Asmundson
Vice ChairmanU.S. Media and Telecommunications Sector Leader+1 203 708 [email protected]@pasmundson
Jim McDonnell
PrincipalU.S. Consulting Media & Entertainment Sector LeaderDeloitte Consulting LLP+1 917 940 [email protected]
Copyright © 2012 Deloitte Development LLC. All rights reserved.21
Contact info (continued)Rob Underwood
Senior Sector Specialist — Media & EntertainmentDeloitte Consulting LLP+1 917 754 [email protected]@brooklynrob
Nicole Gallagher
Senior Manager - Media & Entertainment Deloitte Consulting, LLP+1 215 740 [email protected]
Greg Merchant
Senior Manager - Media & Entertainment Deloitte Consulting, LLP+1 847 638 [email protected]
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