television the accenture global broadcast consumer survey 2009
TRANSCRIPT
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Media & Entertainment Industry Group
Television: Entering theera o mass-ragmentationDigital content services ace the moment o truth
as consumers make their choices
The Accenture Global Broadcast Consumer Survey 2009
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ForewordWelcome to the executive summary o Accentures Consumer Broadcast
Survey 2009As companies in the video content
delivery value chain battle or revenues
amid the accelerating migration to
digital, they ace an ever-intensiying
need to track and respond to changing
consumption habits. Failure to do
this will mean playing catch-up
against other choicesand, at worst,
lead to a providers extinction in the
marketplace.
Even beore the current economic
downturn, the industry was enteringa sweeping, multi-year transormation
where entire business and operating
models would be challenged and
need to change. The onset o tougher
economic conditions is now making
a deep understanding o consumer
behavior all the more critical, by
threatening to suppress consumers
spending at the very moment when
they are choosing their preerred
content experiences.
Staking a claim
Put simply, now is the time or
providers to stake their claim to a
sustainable and long-term position
in the digital content landscape. To
help them do this, we have improved
and expanded our annual survey o
consumers views on digital content
delivery, interviewing almost twice as
many consumerssome 13,600across
13 countries, including ve countries
in Asia or the rst time. The result is
a truly global perspective, and our
deepest set o insights to date into
the way consumers behavior and
preerences are continuing to changeunder the impact o a rapidly-expand-
ing choice o media options.
The top-line message around the globe
is that while demand or television
content is continuing to grow, it is also
ragmenting aster than ever beore, as
consumers progress to rm decisions
on which consumption experiences
they preer. This means the industry is
acing a watersheda moment o truth
at which content services and business
models must either grab consumers
attention today and harness this rising
demand, or ace being let behind. The
overarching challenge acing providers
at this time is deceptively simple: to
create distinctive content experiences
that consumers preer and will return
to time and again.
Towards new business models
Our report helps to set the context or
new and successul business models in
this emerging environment, by linking
the behavioral ndings to potential
uture strategies and pitalls. We
believe this study will provide valuableguidance and ood or thought to all
participants as they continue to strive
or high perormance in this increas-
ingly challenging and ast-changing
industry. We hope our insights help you
make the right calls at this critical
point in the industrys development.
David Wolf
Global Lead, Accenture Digital
Transormation Practice
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Executive summaryConsumers make their minds up"We are starting to see the beginnings o cord-cutting where people, particularly
young people, are saying, 'All I need is broadband. I don't need video.'"
Glenn Britt, CEO at Time Warner Cable, quoted in the Wall Street Journal, 5 February 2009
For people who want to consume video
contentand that means most o
usthe choice o platorms, channels
and experiences is expanding by the
day. As a result, audiences are continu-
ing to ragment across dierent modes
o consumption. But i you think this
means television is dead, think again.
Our survey shows that while audience
ragmentation is continuing, viewing o
all contentincluding via the television
set, where most o the industrys
revenues are still generatedis growing.
The message is clear: a rising tide o
demand is liting consumption every-
where, across all platorms. In the
countries in our global survey where
annual comparisons are possible, the
proportion o people reporting that
they view more than six channels and
more than eight programs in a week
has risen in nearly every age range.
Meanwhile, interest in viewership o
content on PC and mobile is also up.
This nding echoes recent studies by
leading researchers such as Nielsen,
which recently ound that overall
viewing o video content via television,
Internet and mobile devices has
reached record levels in the US.
The result is that the traditional TV
experience is no longer the only game
in town, and is being orced to compete
in ways it has never had to beore.
The linear and proprietary connection
rom the service provider, via the pipe,to the TV has been cutturning the
television set into a large-screen device
that receives its inputs rom a growing
range o sources. The same deconstruc-
tion o the traditional value chain is
driving the emergence o an expanding
array o consumption platorms,
each delivering distinctive content
experiences. And our research shows
that consumers excitement is at its
greatest about platorms that give
them what they want: control o their
content.
The challenges oragmentation
In search o greater control, consumers
are looking beyond traditional
television, thereby challenging the
established revenue models o mass-
market advertising and mass-market
cable subscriptions. In the US in
October 2008, when satirist Tina
Fey impersonated vice-presidential
candidate Sarah Palin on Saturday
Night Live, only a third o the audience
watched the sketches on television
during the original broadcast, while
two-thirds viewed them later either
online or on a DVR.
As this ragmentation gathers pace,
consumers are increasingly ready and
able to make up their minds about
which media experiences they like
or, perhaps as oten, which ones they
dont. In every age range in our global
survey, there is a decline in the
1http://blog.nielsen.com/nielsenwire/online_mobile/tv-internet-and-mobile-usage-in-us-continues-to-rise/The Accenture Global Broadcast Consumer Survey 20093
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At the moment, though we have mobile TV reception, it hasn't earned us
evenue because we are simulcasting digital terrestrial services We are trying
o produce applications, or content, or programming, that is not currently
provided by digital terrestrial broadcasters and will create continuous viewing
on handsets.
Masayuki Hirata, CFO o Japanese operator NTT DoCoMo, July 2008
roportion o people replying dont
now to our questionsindicating that
hey have now experienced enough o
ome o the early oerings and are
orming denite opinions about what
hey like.
As consumers make these decisions,
heir loyalty to the content brands they
an consume via the expanding array
devices remains as strong as ever.
hey are ollowing their avorite
rograms rom network to networkashown by the act that about three-
uarters o our respondents (73 percent)
ay they watch the same or a greater
umber o networks than programs.
qually signicant, while youth still
eads the way in terms o adopting
ew modes o consumption, the older
enerations are now catching on. The
evel o interest in new PC and mobile
ontent experiences, and the degree o
willingness to pay or content, are now
growing as ast among consumers over
45 years old as among the younger
demographics.
So the marketplace or new content
devices and sources is both maturing
and ragmenting, as consumers make
rm choices beyond the traditional TV
experience, and as alternative modes
o consumption become a mainstream
part o everyday lie rather than an
occasional novelty. To capitalize on thisshit in consumer behavior, companies
oering new devices and sources or
content consumption need to capture
consumers attention and loyaltyand
do so now.
The content discoverybottleneck
However, as consumers navigate
through this ragmented landscape, our
research shows that they ace a
signicant bottleneck in discovering
content that they like but have not
seen beore. Innovative new content
delivery methods are gaining adoption
worldwide, providing more and more
choices or consumers, but their
success contrasts with the relative
ailure o new discovery mechanisms
with the oerings or locating content
currently lagging well behind the
advances in delivery methods.
The resulting bottleneck comes across
clearly in our research. Despite the
availability o a growing range o
alternative routes to nd content
recommendations, blogs, online
content stores and so onconsumers
are still using traditional means to nd
content they like. These methods
include adverts, listings, lead-ins,
andmost importantlyrecommenda-
tions rom riends and amily.
The Accenture Global Broadcast Consumer Survey 20095The Accenture Global Broadcast Consumer Survey 2009
These ndings underline the need and
opportunity to enhance the existing
discovery methods such as listings, to
make them more accessible, engaging
and personal. And consumers contin-
ued reliance on word-o-mouth refects
a urther actor: the critical importance
o involving online social networks in
content messaging, promotion and
discovery. Social networks are where
manyespecially youngerconsumers
discuss their opinions and experiences,
and it is increasingly vital to get themessage about new content out into
those communities.
Dierent markets, divergentattitudes to mobile
Many o our ndings apply across all
markets, but one o our more striking
discoveries is the existence o big
dierences in behavior between
emerging and developed content
markets (see inormation panel, page 7,
or our denition o these). Consumers
in emerging content markets tend to
be much more interested in seeing
television content reused on mobile,
whether that content is ull shows,
highlights or shortened versions.
Among other contributory actors, this
may refect higher levels o disillusion
in emerging markets with the existing
television oerings. In contrast, people
in more developed content marketsgenerally want mobile to provide them
with new content they cannot get on
traditional TV.
A urther contrast between emerging
and developed content markets can
be ound in the relationship between
consumers age and their interest in
new ways o consuming content. In
more developed content markets,
peoples interest in new content
consumption modes declines sharply
with advancing age. But less developed
content markets show a dierent
pattern, with the level o interest being
high among the younger demographics,
alling slightly in the middle age
groups, and then rising again among
the older demographics.
Revenue models: subscriptionis the most resilient
Turning to business models or content
delivery, our research shows that
subscription content revenues are the
most resilient, while spending on
physical content is the most at risk.
While we recognize that the current
economic conditions could be magniy-
ing the ndings, our study indicates
that consumers plan to spend less in
2009 on most types o media content,
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When we reer in this report to
"emerging content marketplaces" and
"developed content marketplaces", we
are dierentiating them based on the
number and longevity o the available
television services and providers. For
example, in the US and UKarguablythe most developed television markets
over-the-air broadcasting has been
available since the early 1950's, and
cable and satellite services have been
available since the 1960's and 1970's,
respectively. By these measures, most
countries in our survey are developed
markets.
Brazil, Malaysia, and Mexico are consid-
ered to be "emerging." Brazil is served
by one cable company (NET) which was
ounded in 1991, and one satellite com-
pany (Sky Brazil) which began service in
1996. Malaysia's satellite service (Astro)
was started in 1996, and its sole cableconcern (MegaTV) also started ser-
vice in 1996 but closed just ve years
later. Mexico has enjoyed over-the-air
television broadcasts almost as long as
the US has, but pay services like cable
and satellite reached just 23% o the
population in 2007. By contrast, in 2006
82% o US households subscribed to a
pay TV service.
Emerging markets have less legacy
inrastructure, both in terms o technol-
ogy and in terms o consumer behavior.
As has been seen in other industries,
emerging markets tend to "leaprog"
more developed markets, embracing
new technologies and business modelsmore fexibly.
Emerging and developed contentmarketplaces: our denition
The Accenture Global Broadcast Consumer Survey 20097The Accenture Global Broadcast Consumer Survey 2009
ut intend to make no net change in
heir spending on content subscrip-
ons. This nding suggests that
ougher economic conditions may
ow adoption o some products and
ervices, but not alland may also
ccelerate the move rom physical to
igital media. It also indicates that
models with ewer consumer decision
oints will tend to be more successul.
and consumers are more
willing to payven more importantly, the proportion
consumers willing to pay or some
ype o content is continuing to
seup by 12 percentage points on
008 in the countries where we can
make an annual comparison. About
al (49 percent) o consumers are
willing to pay or programming rom a
digital service, while almost as many
(40 percent) would preer to watch ads
and pay nothing.
As well as being increasingly willing to
provide some orm o value in return
or content, consumers are making
value-based decisions around how
much they are prepared to pay or
what content via what device. So
providers have growing opportunities
to spur consumer adoption and buildrevenuesand they can do so by
enabling varying business models that
make fexible and competitive use
o content pricing packages, or
advertising, or a combination o both.
Going orward, as consumption habits
continue to ragment and as consumers
continue to make value-based
decisions about how much money a
particular content experience is worth,
there will be no one-size-ts-all
revenue model.
Overall, the ndings rom our 2009
Global Consumer Broadcast Study
underline that consumers migration to
new content delivery oerings is
acceleratingwhile also highlighting
that providers must move ast to seize
their share o the resulting revenues. It
is critical to capture consumer loyaltyin the markets current phase o
development, or risk acing a hard
battle to recapture the lost ground. We
will now review the detailed ndings
underpinning our conclusions.
Consumers are getting increasingly demanding. They want to get the latest TV
hits ahead o anyone else and, now, mio TV [SingTels IPTV service] is lling this
gap with our latest oering. Who doesn't want to be a water-cooler' hero? We
ee this as the next big wave o content consumption in Singapore."
llen Lew, CEO, Singapore Telecom
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The clearest top-line nding rom our
survey o more than 13 000 consumers
in 13 countries is that the audience
or television content is continuing to
ragment across devices, brands, and
behaviorbut is also continuing to
grow in overall size In those countries
where we can make an annual compari-
son, consumption o video content has
risen during the past year in virtually
every age range and on all ormats,
including via the traditional TV set.
More channels, more programs
These headline ndings are illustrated
in Figures 1 through 3. Across our
global sample, the proportion o people
viewing six or more channels a week
has grown in every age range except
the under-25s, where it is static (see
Figure 1).
A similar pattern emerges on consump-
tion o programs, with the proportion
watching eight or more programs a
week rising across nearly all age
ranges, and the smallest increase
occurring among the under-25s (see
Figure 2).
Despite the prolieration inand
increased quality oPC and mobile
content services, overall television
viewership is rising year-on-year,
with channel and program viewershipincreasing astest among older
consumers. And emerging, non-
traditional platorms are also partici-
pating in this rise, with viewership o
content on PC and mobile also up in
most markets in 2009.
This nding echoes Nielsens recent
quarterly A2/M2 Three Screen Report,
published in February 20092. Nielsen
ound that viewing o video on
television, Internet and mobile devic-
esthe three screensis at record
levels, with the average American
consumer now watching more than
151 hours o TV per month. A similar
report done by SevenOne Media on the
German market ound that in the rst
quarter o 2009, consumers viewed 235
minutes a day o television, up eightminutes per day rom the same period
in 20083. The Nielsen report also ound
that, except or the teenage years,
viewing o traditional television rises
with age, while the use o video on the
Internet peaks among young adults,
and viewing mobile video is highest in
the teen years.
Television: Entering the era omass-ragmentationFigure 1. 2009 v. 2008 change in viewership o 6+TV channels, by age
Figure 2. 2009 v. 2008 change in viewership o 8+TV programs by age
45-5435-4425-34Under 25 55+ years
50%
40%
30%
20%
10%
0%
-
i
45-5435-4425-34Under 25
2009
55+ years
50%
40%
30%
20%
10%
0%
2008
i
l
I
2 http://blog.nielsen.com/nielsenwire/online_mobile/tv-internet-and-mobile-usage-in-us-continues-to-rise/3 http://www.sevenonemedia.de/unternehmen/presse/pm/index.php?method=pmview&pmid=26913&plattorm=som_de
The Accenture Global Broadcast Consumer Survey 2009 9
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2 00 9 2 00 82 00 9 2 00 8
Mobile: growingbut missingtrick?
While our own interviewees responses
so conrm this rising viewership, a
oser look at our ndings on mobile
elevision reveals a more complex
icture. As Figure 3 shows, the propor-
on o people reporting that they
watch our or more mobile television
rograms in a week is markedly higher
n Brazil and Mexico in 2009, and little
hanged in Germany, Italy and Spain.
More worryingly, in a number o
ountriesincluding the US, UK and
rancethe proportion watching our or
more mobile programs a week is actually
ropping. This suggests that the existing
ervices are ailing to suit consumers
eeds or tastes, and thereore losing
momentum ater consumers early burst
enthusiasm. This is likely due to a
ariety o reasons in dierent countries.
n the US, or example, the root causes
re probably quality o content, the use
subscription business models, and the
act that providers are selling a service
ather than content.
Consumer excitement aboutplatorms
This underlines the need to give
consumers what they are looking or
rom a specic platorm. And providers
delivering content to the PC are
currently doing a better job o meeting
these preerences than their mobile TV
counterparts.
Looking rst at consumption via the PC,
Figure 5 shows that the proportion o
people who enjoy watching content on
their PC is continuing to rise, with
Brazil and Mexico seeing the astest
increases. In contrast, the level o
interest in watching content on the PC
is now rising much more slowly in more
developed content markets such as the
US and Germany.
However, while most consumers are
ready and willing to view content on
the PC, they do not just want more o
the same programming that they get on
their traditional TV set. Instead,
Figure 5: Proportion who would enjoy watching some type o content on a PC
The Accenture Global Broadcast Consumer Survey 2009 110 The Accenture Global Broadcast Consumer Survey 2009
gure 3: 2009 vs. 2008 change in viewership o 4+ mobile programs by country
consumers rst preerence on the PC is
or content specically created or the
PC platorm, ollowed by public service
inormation (see Figure 4). Only ater
that do ull TV shows rate a mention.
Around the world, providers such
as YouTube, Alic, BBC iPlayer and
Youku.com are winning consumers over
by providing the kinds o content they
are looking or on their PC, specically
ocusing on new content or the PC and
amiliar television programming. Someproviders are targeting cross-border
nicheswitness the launch in Decem-
ber 2008 by Asia-based TV-Desi and
JumpTV o a new IPTV service delivering
live South Asian television content to
subscribers in the US and Canada.
Meanwhile, some other initiatives have
a more mass-market ocus. Pay TV
operators in the US are currently
discussing an industry-wide TV
Everywhere service that would put all
their collective programming onto the
web and enable consumers to access it,
so long as they can prove they subscribe
to pay TV.
depends on what they deliver
Mobile TV service providers in many
countries are not generating the same
levels o traction as their counterparts
delivering content via the PC. To date,
most mobile video oeringswith
notable exceptions such as YouTube on
the Apple iPhonehave tended to ocus
on duplicating a broadcast experience,
or on providing limited clips o
television shows. However, ull TV
programs and clips are among the
mobile oerings that consumers say
they are least interested in.
Consumers enjoyment o watching
content on their mobile device varies
widely between dierent territories.
While interest in some countries is still
rising strongly, in several others it is
fat (see Figure 7). There is even a steep
drop in interest in mobile content in
the UK, where the available products
ocus on clips and highlights.
New Content for Platform42%
37%
31%
25%
22%
16%
Public Service Information
Full TV Shows
Content I Create
Highlights of Programs
Shorter Versions of Programs
li I
i
Figure 4: Proportions wanting to watch specic types o content on their PC
Public Service Information25%
15%
15%
12%
11%
11%
New Content for Platform
l
Content I Create
Shorter Versions of Programs
Highlights of Programs
Full TV Shows
Figure 6: Proportions wanting to watch specic types o content on their mobile
ountry 2009 2008
obal 13% 13%
S 10% 15%
K 9% 13%
ance 10% 15%
ermany 8% 7%
aly 14% 16%
pain 15% 12%
azil 18% 6%
exico 22% 9%
Country 2009 2008
US 56% 50%
UK 60% 57%
France 76% 61%
Germany 59% 55%
Italy 83% 65%
Spain 77% 75%
Brazil 92% 58%
Mexico 89% 65%
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4 The Accenture Global Broadcast Consumer Survey 2009
and control
s well as wanting the content they
ve, people are also looking or
atorms and devices that give them
reater control over it. For most
enresespecially soaps and liestyle
rogramsthere is an increase in 2009
the proportion o consumers who
reer watching on-demand. However,
t the same time the proportion who
reer watching many genres live,
otably reality shows and sports, is
rowing even more quickly.
hese ndings are not contradictory.
hey conrm that what people want is
reater control over all their content,
o they can t their consumption o
ach genre around their own schedule
nd liestyle. This is underlined by the
act that consumers in most countries
re getting more excited about plat-
orms that let them watch what they
ant, when they want (see Figure10).
Like the ndings we described earlier
on consumption o mobile TV programs
(Figure 7), these responses carry a
coded warning or providers. O the
countries tracked in our annual
comparison, consumers level o
excitement about being able to access
content whereever and whenever they
want it is increasing astest in Brazil
and Mexico. Excitement is rising much
more slowly in the Western European
markets and the US, which have more
robust traditional TV oerings.
This suggests that the initial deploy-
ments o some new consumption
experiencesparticularly mobileare
no longer energizing consumers as
much as they used to. There is also a
longer-term implication that excite-
ment with these new services may
decline over time as amiliarity grows,
the novelty wears o and preerences
take hold. In some cases the progres-
sion rom novelty to amiliarity may
have positive eects, such as PC-based
contents move into the mainstream.
But amiliarity can just as easily slide
into disillusionmentsomething that
providers must take pains to avoid.
Pay or content, or watch ads?A near-even split
While consumers willingness to pay
or content is continuing to rise, they
know there are various ways or them
to provide that value. Consumers
preerred option globally is to pay
money or content, closely ollowed by
paying nothing or content but having
to watch ads in return or receiving it
(see Figure 11).
In some cases, providers are exploiting
this split by charging or content that
ordinarily would have been ad-support-
ed. For example, ITV in the UK recently
entered into an arrangement with
Virgin Media to provide over 500 hours
o content to Virgins TV Choice, a paid
subscription VOD service. Estimates are
that ITV could gain up to 5 million
igure 9: Proportion who are willing to pay or some type o content
Spotlight on
Payment optionsConsumers willingness to pay or
unlimited downloads rom a particular
network is growing aster than other
payment options. Paying or unlimited
downloads rom any network is still the
single most oten preerred way to pay
(25 percent), but downloading unlim-
ited programs rom a single network
has increased by 10 percentage points
to 14 percent in 2009. This growth
refects increased interest rom Brazil-
ian and Mexican consumers, as well
as interest rom Malaysian consumers
who were not part o the 2008 study.
The Accenture Global Broadcast Consumer Survey 200915
ountry 2009 2008
S 35% 28%
K 37% 36%
ance 44% 42%
ermany 39% 26%
aly 49% 50%
pain 41% 42%
azil 63% 46%
exico 69% 37%
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Subscription models dey the downturnWe are seeing early signs o less DVD usage with some subscribers who arealso watching instantly as compared to subscribers who only receive DVDsTime will tell whether this substitution eect is an attribute o early adoptersor a mainstream behavior.
Netfix CEO Reed Hastings, quoted by arstechnica.com, 27 January 2009
Figure 12: Consumers purchasing plans or our main content ormats
41%
Dont Purchase
12% 12% 35%
Purchase More Purchase Less Purchase Same
Subscription Purchase
54%
Dont Purchase
8% 13% 25%
Purchase More Purchase Less Purchase Same
Download Purchase
20%
Dont Purchase
13% 19% 48%
Purchase More Purchase Less Purchase Same
DVD/CD Purchase
56%
Dont Purchase
9% 12% 23%
Purchase More Purchase Less Purchase Same
Mobile Purchase
Our research shows an increase in theproportion o consumers globally who
are willing to pay or some type o
contentup by 12 percentage points
overall, rom 37 to 49 percentbut at-
titudes and behaviors around paying or
and consuming content remain mixed.
Specically, spending on subscriptioncontent is the most resilient to econom-
ic change, while physical content is the
most at risk. For most types o media
content, the proportion o consumers
intending to spend less exceeds the
number intending to spend more. In
contrast, with subscription content the
proportions expecting to spend more
and less are precisely in balance.
Figure 12 compares the consum-ers spending intentions or content
purchases in our main ormats
subscription, download, physical and
mobile. Spending on DVDs and CDs looks
set to be hit hardest by the economic
downturn, with 19 percent o consumers
expecting to spend less and 13 percent
more.
US$7.4 million) a year in revenue
ithout jeopardizing the standard ad
evenue or the same programs4.
mong those willing to pay, subscrip-
on models beat pay-to-play models
n every age range, with paying a ee
or unlimited programming proving
much more popular than pay-per-
pisode or pay-per-season. This
nderlines the resilient nature and
alue o subscription models (see
ormation panel). In terms o ageemographics, younger consumers are
more likely to have made up their
minds which model they preer, with
he lowest proportion o dont knows.
cross all age ranges globally, about
al (49 percent) o consumers are
willing to pay or programming rom a
igital service, while almost as many
40 percent) would preer to watch ads
nd pay nothing. The willingness to
ay is particularly high among
onsumers rom higher-adoption
ountriesMexico (69 percent),
Figure 11: Willingness to pay or content with money or by watching ads, by age
Under 25 25-34 35-44 45-54 55+
50%
60%
70%
40%
30%
20%
10%
0%
Pay(Su
bnet)
Payaf
eefor
unlim
itedp
rograms
Payfor
unlim
itedshow
s
froman
etwork
Payp
erepiso
de
Payforas
eason
ofash
ow
Payn
othingb
ut
watch
ads
Othe
r
Dontknow
The Accenture Global Broadcast Consumer Survey 2009 176 The Accenture Global Broadcast Consumer Survey 2009
2 00 9 2 00 8
gure 10: Proportion who say Im excited about watching what I want when I want
http://blog.nielsen.com/nielsenwire/online_mobile/tv-internet-and-mobile-usage-in-us-continues-to-rise/
ountry 2009 2008
S 16% 15%
K 8% 13%
ance 15% 16%
ermany 13% 8%
aly 31% 26%
ain 21% 18%
azil 37% 28%
exico 46% 16%
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Malaysia (68 percent) and Brazil (63
ercent). In these higher-adoption
ountries, willingness to pay is almost
ouble the preerence or watching
ds. In contrast, in the US and Europe,
willingness to pay is about the same as
he preerence or watching ads.
o, as well as being more open to new
ontent experiences, cconsumers who
ave less experience with traditional
V oerings in their country are also
more enthusiastic about paying orwhat they perceive will be a higher-
alue digital content service. In
ontrast, it seems that the higher
egree o satisaction with the
elevision oerings traditionally
vailable in Europe and the US means
onsumers perceive less benet in
aying a premium.
Consumers are rapidly
making their minds up about
latorms
respective o whetheror how
onsumers pay or content, one o the
clearest ndings rom our 2009 study
is that they are now orming rm
opinions about new content delivery
and consumption models. Whats more,
they are making these choices very
quickly, refecting the extent to which
consumers have become more comort-
able with their digital content choices
in the past year.
As Figure 13 shows, a comparison
between 2008 and 2009 clearly
illustrates this shit, with ewer peopleresponding dont know when asked
whether they enjoy viewing PC or
mobile contenta trend repeated
across many o our ndings, particu-
larly in more developed content
marketplaces. The ormerly ambivalent
or conused dont know consumers
rom 2008 are now making rm
decisions. So consumers are progress-
ing to rm choices on how they eel
about new content capabilities, and
making those they preer part o their
everyday liestyle.
In our view, this means providers now
have only a narrow window o oppor-
tunity in which to make their best
cases to consumers or ace having to
play catch-up. When consumers reject
products because they do not match
their expectations or liestyles today,
those products will be that much
harder to sell in the uture, even when
they improve. The marketplace or new
content devices and sources is matur-
ing, and while it will not be shaped
overnight, those providers that pass upthe opportunity to win consumers over
now will ace a tough battle to win
back the lost ground.
Discovering new content:
a major bottleneck
However, as consumers make their
choices between the various content
experiences on oer, they ace a major
barrier in trying to discover new
content that they like. Despite an
expanding range o alternative ways to
nd contentpersonal recommenda-
tions, blogs, online content stores, and
gure 13: 2009 vs. 2008 change in proportion saying dont know about enjoying
C or mobile content
2009 2008
Li i
i l
l
i
li
C
Mobile
Our audience was telling us they wanted to nd content elsewhere than justn TV. For us it was a case o either sitting back and watching as things evolvedround us or getting involved at the very beginning and helping drive and shapehe change.
arah Rose, Head o VoD and Channel Development, Channel 4
Spotlight on
Methods or discovering new contentConsumers use a range o tools to
discover new programs, including TV
ads/promos (40 percent), channel sur-
ing (33 percent), looking at avorite
channels (31 percent), riends/amily
(30 percent) and TV listings (28 per-
cent). Newer methods such as blogs
(8 percent), web content stores
(6 percent), mobile ads (5 percent) and
DVR/PVR recommendations (2 percent)
are much less pervasive.
While TV listingswhether in a news-
paper or on a PCare not a top method
or nding new programs overall,
they emerge as the best source orinormation about new programs when
consumers are asked to pick a top
source (31 percent), particularly or
older consumers (41 percent o those
over 55 years old). In contrast, the
primary reerence point or consumers
under 25 is riends and amily, cited
as the best source by 24 percent o
respondents in this age group.
The Accenture Global Broadcast Consumer Survey 2009 198 The Accenture Global Broadcast Consumer Survey 2009
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While youth are still at the oreront o
digital transormation, older consum-
ers interest in PC and mobile content,
excitement about digital transorma-
tion and willingness to pay or down-
loadable content are growing just as
quickly as their younger counterparts.
In countries where people eel less
comortable with the traditional TV o-
erings, such as Brazil, Mexico and Ma-
laysia, there are smaller gaps in interest
and adoption between the younger
and older segments. So older consum-
ers should not be ignored. They also
exhibit dierent tastes, preerringor
examplepublic service inormation via
mobile, while younger consumers are
relatively more interested in seeing ull
TV episodes on PCs.
Spotlight on
Older consumers in emerging markets
o onconsumers are still primarily
sing traditional means to nd content
hey like (see Figure 14). These include
dvertising, listings, lead-ins and
ecommendations rom riends
nd amily.
he act that so ew customers rely on
utomated recommendations suggests
hat the tools on oer to help consum-
rs nd new programs are ailing to
eep pace with advances in content
elivery (see inormation panel). Eortso close this gap between discovery
nd delivery are refected by a number
product innovations currently under
way in the interactive programming
uide (IPG) space. For example, in
anuary 2009 Macrovision unveiled a
next-generation IPG designed to
nable access to broadcast, personal
nd premium content rom one screen.
Macrovision is looking or manuactur-
rs to build devices using its IPG as a
entral source or nding and playing
elevision shows, Internet-delivered
ideo and music, alongside content
rom consumers personal media
braries.
addressed through socialnetworking
In Accentures view, providers can help
consumers overcome the content
discovery bottleneck by enhancing
existing methodslistings, program
advertising and so onwith targeted
messages to improve engagement, and
by making them more powerul and
intelligent.
They could also look to deploy auto-
mated recommendations in a moreseamless manner, and leverage
consumers relationships among riends
and amily by incorporating social
network components into the viewing
experience. Crucially, these new
methods should suggest new content
rather that urging it on consumers,
since any eeling o hard sell could be
counterproductive. One recent move to
harness the power o social networking
was made in March 2009 by the online
DVD and Blu-ray rental service Netfix,
when it enabled its customers to use
Facebook Connect to share their
ratings o movies.
Also, while social networking provides
one means or both acilitating and
participating in the conversation fow,
urther opportunities lie in more
eective use o metatdata to enable
consumers to search and nd content
across platorms, and in the creation o
a context-aware portal or online
environment that understands the
consumers geographical location,
devices, service preerences, and so on.
Developing digital markets aremore ertile ground or PC andmobile
A urther signicant nding o our
2009 survey is the identication o big
dierences in behavior between more
developed and less developed content
markets. In general, consumers in
countries with a track record o less
robust traditional content oerings are
bigger and more enthusiastic consum-
ers o new digital content products
and services.
gure 14: Top Sources o Infuence When Finding New Programs
+
0% 10% 20% 30% 40% 50%
d/Promo on TV
hannel Surfing
Watching Favehannel
iend/Familyember
V Listings/EPG
rint Articles
ont Know/None
og/Forum Post
VR Recommend.
obile Ad/Promo
nline Store Rec.
- +
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In the vast majority o the countries in
our survey, parents are more excited
about digital consumption opportunities
than non-parents (see Figure 17), with
only South Korea and Singapore
bucking this trend. The gap is biggest in
the US, Brazil and Mexico, illustrating
the extent to which this pattern appliesamong consumers in both developed
and emerging content markets. Parents
higher enthusiasm may be because they
learn about digital content consump-
tion rom their tech-savvy children, and
also because digital content services
meets their distinctive needs, such as
time-shiting to consume content
while children are sleeping.
Perhaps even more importantly,
parents higher degree o excitement
is refected in real revenue. In every
country in our survey except Malaysia
and Japan, consumers with children are
substantially more willing to pay or
content than those without children
(See Figure 18). In the US, or example,over hal (51 percent) o parents are
willing to pay or content, compared to
just 28 percent o non-parents. And in
Brazil, the gap is 10 percentage
pointswith 67 percent o parents
being willing to pay, against 57 percent
o non-parents. Interestingly, the
proportion voicing a preerence or
watching ads and paying nothing is
similar between the two groups.
These ndings indicate a clear
correlation between an individuals
amily status and revenue potential.
More generally, they illustrate the
potential value o a deeper understand-
ing o consumers personal liestyles
in developing and targeting content
services and marketing messages.
Spotlight on
Parent power
No chi ldren Children present
Figure 17: Proportion who are excited aboutdigital consumption opportunities
Figure 18: Proportion who are willing topay or digital content
or example, consumers in Malaysia,
razil and Mexico are the most likely
our global sample to enjoy PC and
mobile content, the most willing to pay
or digital programming, and the most
xcited about digital consumption
pportunities. Other studies support
hese ndings. In late 2008, research
rm Frost & Sullivan orecast that the
PTV subscriber base in 13 countries
cross Asia-Pacic would rise rom 4.1
million in 2007 to 22.4 million by the
nd o 2013a projected compoundnnual growth rate o 32.7 percent5.
he momentum behind new consump-
on modes in emerging economies
worldwide is evident in the responses
o a number o our questions. As
gure 15 shows, consumersand
specially older consumersin develop-
g markets are more prepared to enjoy
ontent on their mobile devices than
re their counterparts in the US.
and are proving it by spendingmoney on mobile content
Our research also highlights dierences
between what consumers in less
developed and more developed content
markets want to watch on mobile.
People in emerging content markets
are much more interested in seeing ull
TV content on mobile; those in more
developed content markets want new
content they cant get on TV. Again,
other studies have reached similar
conclusions. In early 2009, a Nielsen
online survey ound that next genera-
tion devices such as video-enabled
handsets were more popular among
consumers in emerging markets,
particularly in Asia, than in Western
countries6.
Our own research shows that, as well
as saying they want more mobile
content, consumers in emerging
content markets are putting their
money where their mouth is by being
more ready to purchase mobile video
content or download. For example,
consumers in Malaysia and Mexico
especially the older demographicsare
well ahead o the global average in
actually buying downloadable mobile
content (see Figure 16).
The ndings by age are also signicant.
While the more developed content
markets in the chart exhibit a sharp
decline in interest as people get older,
the emerging content markets seeinterest actually reviving among older
consumers over 55 years o age, ater
dipping in middle age between the ages
o 45 and 54.
So, while youth still leads the way
globally, providers should not overlook
the opportunity among older consum-
ers a demographic group who are
showing increasing interest in new
content experiences, and whose needs
are oten being overlooked by provid-
ers. Our research suggests that these
areas o market opportunity include the
45-plus demographic in the US.http://www.circleid.com/posts/iptv_subscribers_asia_pacic/
h tp://www.medianews line.com/news/ 121/ARTICLE/3766/2009- 01-03.html
The Accenture Global Broadcast Consumer Survey 2009 232 The Accenture Global Broadcast Consumer Survey 2009
45-5435-4425-34Under 25
Global
55+ years
0%
0%
0%
0%
0%
0%
0%
0%
%
Malaysia Mexico Singapore US
l l
l i
r
gure 15: Proportion who would enjoy content or a mobile device
gure 16: Proportion currently purchasing downloadable content
Country No Children Children
US 11% 23%
UK 10% 19%
France 12% 22%
Germany 7% 15%
Italy 28% 36%
Spain 18% 27%
Australia 11% 18%
Japan 7% 14%
Brazil 32% 43%
Mexico 40% 51%
S. Korea 28% 27%
Singapore 25% 21%
Malaysia 30% 34%
Country No Children Children
US 28% 51%
UK 34% 45%
France 40% 52%
Germany 37% 45%
Italy 46% 55%
Spain 38% 45%
Australia 37% 50%Japan 31% 31%
Brazil 57% 67%
Mexico 67% 71%
S. Korea 49% 57%
Singapore 61% 61%
Malaysia 67% 69%
lil
45-5435-4425-34Under 25
Global
55+ years
0%
0%
0%
0%
0%
0%
0%
0%
%
Malaysia Mexico Singapore US
rr r
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Strategies or high perormance ina ragmenting marketplaceAs end user media consumption patterns change, both telcos and broadcastersace a window o opportunity to invest and/or collaborate to meet the evolv-ing user demand Competition combined with a cap in consumer's willingnessto pay or entertainment and communications services had led to less protableservice bundles. Having said that, the emergence o a change in media consump-tion habits points the way to a brighter outlook or the industry.
Yiru Zhong, analyst or Frost & Sullivan's Inormation & Communication Technologies group, February 2009
Scoping the landscape
Our 2009 Global Consumer Broadcast
study shows that peoples perceptions
and consumption o digital content have
evolved dramatically in one short year.
And the detailed ndings on consumers
changing behavior provide many
potential lessons and insights or
providers developing and ne-tuning
their strategies.
Consumers in the study demonstraterising awareness and increasingly strong
opinions regarding many aspects o
digital consumption, as well as growing
enthusiasm or viewing content on PCs
and mobile devices. This evolution is at
its astest in Mexico and Brazil, and is
very strong in some o the new countries
included in the 2009 study, particularly
Malaysia. Overall, these trends transcend
all countries and age groups.
What also shines orth throughout
the ndings is the sheer diversity o
behaviors, tastes and aspirations
expressed by dierent consumers odierent ages in dierent markets. This
indicates that, as consumers awareness
and experience o digital content
services grows in each country, the
ability to provide the right type o
content via the right device to each
age group will remain critical to
consumer adoption.
and creating your route-map
So, what general recommendations
can we draw rom our research or
companies seeking to achieve highperormance by generating revenues
rom the delivery o TV content?
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While there may well be specifc
essons and messages or your own
usiness, we have identifed our that
we think will impact all providers.
hese are:
1. Help your viewersfnd the content they
will enjoy
The prolieration o content options
across devices is overwhelming to
consumers, and is leading them to
stick close to those brands they like
today. The industry must break this
bottleneck currently acing consumers
and help them to discover new
content.
Consumers use their riends and
amily as advisors or content
discovery. You can gain a competitive
edge by making it easier or viewers
to tap into this trust network, by
linking them with their riends and
amily and their wider preerence
universe through web and social
network integration.
Recommendations and targeting are
must-haves: existing marketing
mechanismsprogram advertising,
listings and so onshould be made
more powerul, interactive and
intelligent.
Accessibility and navigability can be
urther boosted by creating a persona
that spans screens, enabling you to
better understand cross-platorm and
multi-platorm habits. Understanding
how someone uses PC, mobile, and
televisionand how they use those
devices dierentlyis critical to
dening uture products. It also helps
that users eel that their content
is available to them wherever they are.
2. Streamline yourproduct developmentliecycle, using real
data to drive decisions
Reduce the cost o experimenting on
new ideas and developing new
products. Many o our clients have
ound success in creating product
actories that leverage shared
rameworks and reusable processes,
allowing new product releases to
ocus entirely on a new consumer
eature set.
Aggregate customer usage data, and
mine it to identiy new trends and
needs in your customer base. Use this
to orm a baseline rom which to
measure the eectiveness o any
new products, and be sure your
current products are as eective as
they can be.
Invest in analytics and customer
relationship management to drive
improved product adoption. The more
you know about your consumers, the
easier it will be to convince them
they need your latest oering.
3. Create and automatea true Digital ContentSupply Chain
Consumers want specic, appropriate
content that works or each device
and what they think is appropriate
varies rom device to device and
market to market.
This increases the pressure on content
supply chains, so you must increase
your development, workfow andprocessing capacity to allow or
additional content types and volumes.
Managing the complexity o diverse
ormats, device specications, and
metadata is too much or a manually-
driven pipeline.
Whendefningnewcontentproducts,
consider both the need to match
consumer expectations o a device,
and the need to shit those expecta-
tions toward your goals.
4. Support multiplebusiness modelsadvertisement, purchase,and subscriptions.
Consumers are open to all kinds o
payment models, so there is room or
all o them or dierent device/
content combinations in dierent
markets and demographics.
To make the most o innovation in
services, you will also need innova-
tion and fexibility in revenue models,
working dierently or dierent types
o content on dierent devices.
You will also need to maintain a rm
grasp and understanding o your
content rightsits the oundation on
which digital business models are built.
Just as video entertainment is moving fuidly across various screens, so is socialmedia. We've seen that consumers nd increased value through shared enter-ainment experiences and want to explore and deepen these experiences through
communities o interest, and that's what's social TV will ultimately do."
ason Blackwell, senior ABI Research analyst
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The key: maintain a relentless ocus on the consumer
At root, the key to success in the digital content industry remains keeping closeo the consumer, understanding what they want, and delivering on their needs.
This means constantly striving to understand the consumer and their behavior,nd leveraging consumer data to speed up product development and bring theight products and services to market quickly and eciently. And this in turn
means ensuring your supply chain is in order.
Todays ragmenting audience presents many opportunitiesand tomorrowswinners will be those players that achieve high perormance by recognizing andcting on those opportunities today. We hope that this study will help you to
do that.
urvey methodology
he Accenture Broadcast Consumer
urvey 2009 is based on a detailed,
uestionnaire-led research study
nvolving over 13,600 consumers
cross 13 countriesup rom the total
7,000 respondents in eight countries
nterviewed or this similar survey last
ear survey. As in previous years, we
ook pains throughout the research
rocess to elicit the rank views o
ach interviewee, through balanced
nd detailed questioning designed
o reveal their true perceptions,
spirations and consumption habits.
The preceding summary presents some
o the key indings rom the study, as
well as highlighting the implications
or media, technology and communica-
tions companies operating in this
dynamic and ast-evolving sector.
For the irst time this year, the study
includes consumers in ive countries in
Asia alongside the existing eight rom
the Americas and Europe, enabling
global comparisons and c onclusions
to be made.
The study was undertaken online,
using a common set o questions to
aid comparability. The 13 countries
surveyed were Australia, Brazil, France,
Germany, Italy, Japan, Malaysia,
Mexico, South Korea, Singapore, Spain,
the United Kingdom and the United
States. Between 1,000 and 1,100
adults aged 18 and above were sur-
veyed in each country, and the results
were segmented by gender and age.
8 The Accenture Global Broadcast Consumer Survey 2009
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Copyright 2009 Accenture
All rights reserved.
Accenture, its logo, and
High Perormance Delivered
are trademarks o Accenture.
About the Accenture
Global Broadcast ConsumerSurvey 2009
The survey was ielded or Accenture
by Opinion Research Corporation (ORC)
at the beginning o 2009. All eorts
were made in good aith to secure a
balanced and representative sample o
respondents across all countries.
Authors: Matt Boggie and
Ross Sonnabend
Contributors: Greg Douglass, Julia
Martin Wright, James Scott, Marco
Vernocchi, David Wol and others rom
Accentures Media & Entertainment
practice.
www.accenture.com/mediaandenter-
tainment
About Accenture
Accenture is a global management
consulting, technology services and
outsourcing company. Combining
unparalleled experience, comprehensive
capabilities across all industries and
business unctions, and extensive
research on the worlds most success-
ul companies, Accenture collaborates
with clients to help them become
high-perormance businesses and
governments. With more than 181,000
people serving clients in over 120
countries, the company generated net
revenues o US$23.39 billion or the
iscal year ended Aug. 31, 2008. Its
home page is www. accenture.com.