Prepared By Gianni Cooreman

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Introduction

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Digital Media Consumption

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The Mobile Future

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Music Online and Mobile

Today’s special

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Introduction

“Background & Methodology”

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NorthernEurope

EasternEurope

SouthernEurope

WesternEurope

BelgiumN = 2.119

The NetherlandsN = 2.038

FranceN = 2.000

United KingdomN = 2.017

GermanyN = 2.028

SwitzerlandN = 1.996

PolandN = 2.022

RomaniaN = 2.035

HungaryN = 2.010

SpainN = 2.196

ItalyN = 2.086

GreeceN = 1.971

DenmarkN = 1.986

NorwayN = 2.016

SwedenN = 2.081

FinlandN = 2.005

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Digital Media Consumption in Europe

“Fresh Internet Statistics”

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Internet penetration > 75%

Internet penetration < 50%

Norway83%

3,1 million

The Netherlands85% - 11,4 million

France61%

31,6 million

UK73%

36,6 millionGermany

69% 48,6 million

Switzerland73%

4,6 million

Italy52%

26,5 million

Spain50%

19 million Greece42%

4 million

Denmark80% - 3,5 million

Sweden82%

6,2 million Finland75%

3,3 million

Poland44%

14 million

Hungary45% - 3,8 million

Romania32% - 5,7 million

Internet penetration 50 - 75%

Belgium66%

5,8 million

228 million European surfers (*)

60% Internet penetration

(*) Countries measured in MC DC 2009Source: MC DC 2009 CATI research and Forrester data

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47%

52% 53%55% 55%

60%63% 64% 65%

67% 68%70% 70%

73%

78%82%

24%

33% 33%

38% 39%

44%48% 48% 49%

53%56% 57% 57%

60%63%

66%

4%7%

11%

17%

23%

28%

35%37%

40%

45%

51%53%

55%58%

60%62%

Oct 00 Apr 01 Oct 01 Apr 02 Oct 02 Apr 03 Oct 03 Apr 04 Oct 04 Apr 05 Oct 05 Apr 06 Oct 06 Apr 07 Jun 08 Jun 09

PC penetration Internet penetration Broadband penetration

5,8 million Belgian surfers66% Internet penetration

Source: MC DC 2009 CATI research (n = 1.134)

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27%33%

39% 42%49%

54% 57% 58%64%

5%

5%

5%5%

4%3%

3%4%

2%

9%

11%

9%9%

8%8%

7%11%

8%

2001 2002 2003 2004 2005 2006 2007 2008 2009

Used in past 2 weeks Used in past month Ever used the Internet

Increasing Internet intensity57% is online 7/7

Source: MC DC 2009 CATI research (n = 1.134)

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13,8

15,7 15,7

12,4

14,5

11,0

16,4

14,1

16,6

15,0

18,518,1

14,6

8,7

13,2

16,3

18,8

16,9

Total 15-24 25-34 35-44 45-54 55+

Internet Television Radio

The changing media landscape

Q: How long do you use each of the following media on an average weekday / day in the weekend? (n = 549) Source: MC DC 2009 online research

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-4%

-10%

-10%

62%

32%

17%

Internet

Television

Radio

Decrease in 2009-10 Increase in 2009-10

Q: How do you expect your use of these media to develop in the coming year? (n = 549) Source: MC DC 2009 online research

The changing media landscape

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Interactive Content On The Move

“The Mobile Future”

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9% ever surfed mobile in BelgiumOnly ½ of the European adoption rate

7%

93%

Yes No

8%

92%

Yes No

9%

91%

Yes No

Q: Which of the following mobile phone types do you own and use? (n BE = 2.119, n EU = 32.606)Q: Have you ever surfed on the Internet from another place than your home, work or school using mobile Internet connection on your mobile phone or smartphone?Q: Do you currently have a subscription to use a mobile Internet connection on your mobile phone or smartphone?Source: MC DC 2009 online research

14%

86%

Yes No

18%

82%

Yes No

14%

86%

Yes No

Smartphone adoption Ever surfed mobile Possession data plan

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Limited amount of 3G networks ( offered no 3G)

Prohibition of combined sales (until recently)

High subscription fees

Lack of flat rate subscriptions

How did we end up in this situation?

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Technological barriers (# platforms | # handsets)

Consumer privacy

High subscription fees

Mind the gap

Challenges for marketers

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Mobile web 2009 ... In terms of the user experience quality we observed, it was like stepping into a time machine for a quick trip back to 1998.(Jakob Nielsen, Feb 17th 2009)

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Q: How often do you engage in the following Internet activities for personal purposes via your mobile phone or smartphone? (n EU = 7.710, n BE = 484)Source: MC DC 2009 online research

Functional & social as killer mobile applications

34%

32%

29%

21%

18%

17%

17%

13%

19%

13%

7%

13%

12%

4%

5%

7%

E-mailing

Searching information

Reading the news

Finding information on products, services, brands, companies or

shops

Using route planners

Chatting or instant messaging (in online chat rooms, on SNS)

Checking other prof iles or status on a social network site

Updating a prof ile or status on a social network site

Europe Belgium

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Mobile

PC/laptop

Both

Niche

General news/current affairs

Breaking news

Cultural news

Economic and financial news

Local news

Sports news

Weather

EroticismClothing, fashion, accessories,...

Cooking and recipes

TV programs

Job vacancies

Real estate

Food and drinks, restaurants, bars,...

Shopping, shops,...

Health information

Nearest business or service

Travel information

Tourist / location information you are at or want to travel to

Get directions/navigation

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

30% 35% 40% 45% 50% 55% 60% 65%

Mean all items

Mean all items

Pre

fere

nce

acc

ess

on

mo

bile

ph

on

e

Preference access on PC / laptop

Q: Suppose you have unlimited use of a mobile phone, which device do you prefer to access the following online content? (n EU = 7.710)Source: MC DC 2009 online research

Location based / on-the-go askiller mobile content

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Music on the Internet and mobile phones

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Music activities on the Internet

Q: How often do you engage in the following Internet activities for personal purposes? (n EU = 7.710)Source: MC DC 2009 online research

Listening to the radio online (real-time / streaming)

Listening to podcasts Downloading music for free

30%

50%

47%

43%

33%

33%

32%

31%

30%

29%

26%

24%

24%

23%

21%

20%

17%

Europe

Poland

Romania

Greece

France

Italy

UK

Spain

Sweden

Netherlands

Finland

Germany

Hungary

Norway

Belgium

Denmark

Switzerland

20%

51%

47%

46%

22%

22%

21%

21%

20%

18%

17%

16%

14%

14%

13%

13%

11%

Europe

Poland

Romania

Greece

France

Spain

Hungary

Norway

UK

Italy

Sweden

Finland

Belgium

Germany

Denmark

Switzerland

Netherlands

17%

40%

34%

30%

30%

24%

20%

19%

15%

14%

14%

13%

13%

13%

11%

10%

4%

Europe

Romania

Greece

Spain

Poland

Hungary

Italy

Netherlands

Belgium

Norway

Switzerland

Sweden

France

UK

Finland

Germany

Denmark

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Music activities on the mobile Internet

Q: How often do you engage in the following Internet activities for personal purposes via your mobile phone or smartphone? (n EU = 7.710)Source: MC DC 2009 online research

Listening to the radio online (real-time / streaming)

Listening to podcasts Downloading music for free

13%

31%

22%

22%

18%

18%

14%

14%

14%

9%

9%

9%

8%

8%

8%

7%

4%

Europe

Hungary

Germany

Romania

Greece

Spain

Denmark

Switzerland

France

Netherlands

UK

Norway

Poland

Sweden

Italy

Finland

Belgium

11%

20%

17%

16%

15%

14%

14%

12%

9%

9%

9%

8%

7%

7%

7%

3%

3%

Europe

Romania

Switzerland

Germany

Greece

France

Norway

Spain

Poland

Hungary

Italy

UK

Netherlands

Denmark

Sweden

Finland

Belgium

8%

19%

15%

13%

11%

11%

10%

9%

7%

6%

5%

4%

4%

3%

3%

2%

0%

Europe

Hungary

Germany

Romania

Poland

Switzerland

Italy

Spain

France

Greece

UK

Netherlands

Denmark

Finland

Norway

Sweden

Belgium

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E-commerce penetration > 65%

E-commerce penetration < 50%

Norway69%

2,1 billion

The Netherlands66% - 6,0 billion

France58%

13,6 billion

UK66%

27,0 billionGermany

61% 25,6 billion

Switzerland65%

2,4 billion

Italy48%

8,2 billion

Spain49%

5,4 billion Greece43%

0,5 billion

Denmark67% - 2,2 billion

Sweden70%

3,9 billion Finland62%

1,6 billion

Poland48%NA

Hungary22%NA Romania

19%NA

E-commerce penetration 50 - 65%

Belgium58%

2,3 billion

E-commerce in Europe

Source: Forrester data

% = E-commerce adoption among surfersNumbers = total online retail forecast 2009 (in billion Euros)

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18%

17%

67%

Purchased of f linePurchased onlineProduct category not purchased in the last 12 months

Purchase of digital music in Europe

Q: Which products or services have you purchased in the last 12 months for personal use? (n EU = 8.287, n BE = 556)Source: MC DC 2009 online research

21%

15%

66%

Purchased of f linePurchased onlineProduct category not purchased in the last 12 months

21%

15%

66%

Purchased of f linePurchased onlineProduct category not purchased in the last 12 months

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The mixed-mode buying frameDo

Think & Feel

Think

FeelMean all items

Mean all items

Books

Cars, motorcycles, bikes...

CD/DVD/Blu-ray

Clothing/shoes

Computer, hardware and software

Digital music

Electronic equipment

Furniture and home decoration

Hotel/lodging

Household appliances

Movies or TV series in digital format

Other product

Personal care

Plane, train or boat tickets

Telecom services

Tickets to events

Toys/games

10%

20%

30%

40%

50%

60%

70%

20% 30% 40% 50% 60% 70% 80%

Inte

rnet

op

po

rtu

nit

y fo

r sa

les

(If

pu

rch

ased

, % p

urc

has

ed o

nlin

e)

Internet opportunity for pre-sales(% searched online / Filter: if purchased)

Q: To what extent did you look for information offline and/or online BEFORE the purchase? (n EU = 8.287)Q: Which products or services have you purchased in the last 12 months for personal use? Source: MC DC 2009 online research

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European online purchase forecast

Source: Forrester European Paid Content And Online Activity Forecast, 2009 To 2014, 09/09 (Western Europe)

€ 415

€ 583

€ 782

€ 1.042

€ 1.392

€ 1.768

€ 2.137

€ 2.435

€ 329€ 424

€ 502€ 568

€ 633€ 695

€ 758€ 828

€ 21 € 35 € 52 € 75 € 112€ 170

€ 247€ 355

2007 2008 2009 2010 2011 2012 2013 2014

Music (million €) Games (million €) Video / TV (million €)

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€ 0 € 1€ 2

€ 5

€ 8

€ 12

€ 15

€ 17€ 19

€ 7€ 10

€ 11

€ 13€ 16

€ 18

€ 19 € 20 € 20

€ 0€ 1

€ 3

€ 6

€ 11

€ 18

€ 25

€ 30

€ 33

2005 2006 2007 2008 2009 2010 2011 2012 2013

Mobile music (million €) Mobile games (million €) Mobile video / TV (million €)

Belgian mobile purchase forecast

Source: Forrester European Mobile Media Forecast 2008 to 2013, 07/08 (Western Europe)

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Hungry for more?

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Gianni Cooreman

Digital Research Manager

InSites Consulting

T +32 9 269 16 01

M +32 494 521 776

E gianni@insites.eu

http://www.linkedin.com/in/giannicooreman

http://twitter.com/giannicooreman

Digital Mediaand Marketing