AN ERA OF GROWTH. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 2 1950’s &...

AN ERA OF GROWTH

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1950’s& 1960’s

1970’s& 1980’s

1990’s - 2005

BLACK & WHITE TVFIRST SATELLITE

BROADCAST

RISE OF CABLE

TV

MORE ADVERTISER-SUPPORTED NETWORKS

VIDEO GAMES

2006 - Present

DIGITAL AND INTERNET

REVOLUTION

DVD DVR VOD

SMART-PHONES

HDTV TABLETS OVER-THE-TOP DISTRIBUTION

SMART TV WITH SOCIAL

CAPABILITIES

APP DRIVEN DIGITAL WORLD

Changes in the Media LandscapeAccelerating change in our future

VCR

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Looking at 2014The norm of consumer media consumption & beyond

• Consumers continue to have expanded choice

• On demand will take more viewing from the DVR

• Linear and digital media will become seamless to the consumer

• Portable and personal devices will continue to enable simultaneous usage• Consumers can extend their media engagement with even more content and

information

• Fragmentation will grow across distribution platforms, types of content, availability of content and volume of content

• The 2014 Upfront market will foster more conversations and negotiations around different monetization models to account for additional viewing across platforms

• …and the consumer continues to not differentiate how they get their entertainment, opting for the best screen at most convenient time

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The Population is ChangingYounger segment, more multi-cultural

Source: NPOWER, Share of TV Universe Estimates, 01/15/14

P12-24 P25-54 P55+

57% 62%76%

16% 13%

10%21% 18%9%

5% 6% 5%

White Non-Hispanic African American HispanicAsian American

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Most Growth Will Come From Multicultural

*Excludes American Indian, Alaska Native, Hawaiian & Other Pacific Islander Source: U.S. Census Bureau Population Projections

Projected U.S. Population GrowthFrom 2010 to 2050

Total White Black Asian* Hispanic

+42% +56% +142% +167%+1%

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DVD PC w/Internet Video Game DVR Smartphone Tablet Smart TV

85%

78%

46%43%

49%

10% 9%

83%80%

45% 47%

59%

22%

13%

82% 80%

46%49%

69%

35%

18%

Feb '12 Feb '13 Feb '14

More Choices Being Driven By TechnologyIncreased DVR, Smartphone, Tablet, and Smart TV penetration

Source: NPOWER, Mobile Insights, Custom Smart TV (Capable)

+41%

+13%

+107%

+245%

Devices Owned in TV Households % diff vs. 2012

TODAY’S LANDSCAPE

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A Third Of People Account For Half The Viewing

Source: NPOWER, Share of UE vs. Share of PUT – Total Day, 9/23/13 – 02/23/14

Universe Estimate PUT

13.4% 9.6%

8.4%5.1%

9.8%6.7%

13.2%

10.9%

20.1%

20.0%

7.4%

8.9%

27.8%39.0% P55+

P50-54

P35-49

P25-34

P18-24

P12-17

P2-11

35% of pop account for almost half of all time

spent using television

Universe Estimate (000)

PUT (000)

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An Expanded View Of Media Consumption

Source: The Nielsen Cross-Platform Report Quarter 4 2013; Exhibit 1

Q4 2011

Q4 2012

Q4 2013

5:06

5:10

5:04

0:25

0:27

0:32

0:11

0:10

0:09

0:10

0:10

0:12

1:04

1:05

1:01

0:48

0:53

1:07

2:53

2:50

2:46 0.00138888888888889

Live TV Watching Timeshifted TV Using DVD/Blu Ray Device

Using a Game Console Using Internet on a Computer Using a Smartphone

Listening to AM/FM Radio Using a Multimedia Device

Average time spent per Adult 18+ per day

Media choice drives consumer choice

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Monthly Time Spent By MediumUsers 2+ in Hours: Minutes

Source: The Nielsen Cross-Platform Report Quarter 4 2013; Table 3

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Larger Declines Among Teens And P25-34

Source: Nielsen, NPOWER

PrimeInterval P2+ P2-11 P12-17 P18-24 P25-34 P35-49 P50+

09/24 - 02/24/13 39.8 25.2 25.8 25.1 35.0 41.8 54.0

09/23 - 02/23/14 39.1 24.6 24.8 24.7 32.9 40.3 53.7

% Diff -2% -2% -4% -2% -6% -4% -1%

Total DayInterval P2+ P2-11 P12-17 P18-24 P25-34 P35-49 P50+

09/24 - 02/24/13 21.2 15.3 13.3 14.6 18.3 21.4 28.5

09/23 - 02/23/14 21.1 15.2 12.8 14.3 17.5 20.9 28.7

% Diff 0% -1% -3% -2% -4% -2% 1%

Persons Using Television%

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Total Use Of TV Is Flat For Persons And Declines Less For Teens And Young Adults

Source: Nielsen, NPOWER, Total use of TV is the sum of Live PUT, Timeshifting, Video Game Console Use, DVD Playback, and Multimedia Device Use

PrimeInterval P2+ P2-11 P12-17 P18-24 P25-34 P35-49 P50+

09/24 - 02/24/13 43.5 30.0 31.6 30.0 40.4 45.3 55.9

09/23 - 02/23/14 43.3 30.2 31.2 30.8 39.2 44.4 55.7

% Diff 0% 1% -1% 2% -3% -2% 0%

Total DayInterval P2+ P2-11 P12-17 P18-24 P25-34 P35-49 P50+

09/24 - 02/24/13 23.1 18.1 16.2 17.5 21.0 23.0 29.2

09/23 - 02/23/14 23.3 18.5 16.1 17.7 20.6 22.8 29.6

% Diff 1% 2% -1% 1% -2% -1% 1%

Total Use of TV%

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Feb '09 Feb '14

83.5% 79.5%

0.6%0.1%

7.0% 11.2%

5.8% 3.5%3.0% 4.6%

1.1%

Feb '09 Feb '14

79.7% 72.3%

0.4%

0.1%

5.2%8.5%

7.4%3.4%

7.3%14.2%

1.5%

Live PUT VCR playback Timeshifting DVD Playback Video Game Consoles Multimedia Device

Timeshifting, Video Games, And Multimedia Devices Showing Growth

Source: Nielsen Custom Analysis

Percent of AA% Rating, PRIME

P2+ P18-24

Feb '09 Feb '14

0.5%0.1%

9.7% 13.4%

6.2% 4.0%2.4% 4.2%

1.5%P25-54

81.2% 76.9%

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Multimedia Device Use

Video Game Console Use

Timeshifting

DVD Playback Use

All Other Tuning

Premium Pay

Ad Supported Cable

Spanish Broadcast

English Broadcast

PUT (Live PUT + Timeshifting)

0.9

1.9

5.9

1.8

2.0

1.5

20.3

2.2

13.0

39.3

0.5

1.6

5.6

1.9

2.0

1.5

21.0

2.5

13.2

41.0

Persons 25-54

12-13: 9/24 - 02/24/201313-14: 9/23 - 02/23/2014

Uptick For Timeshifting, Video Game Console Use And Multimedia Use

Source: Nielsen, NPOWER, Prime, L+7 days

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Significant Time Spent Watching TV But Other Devices Are Becoming Increasingly Popular

Source: Nielsen NPOWER/Cross Platform Homes Panel for November 2013 P2+, Includes in-home viewing behaviors, Heavy based on top quintile

AVERAGE DAILY MINUTES H

EAVY

DEV

ICE

USE

RS

TV PC Streaming Game Console Multimedia Device

663.2 2.1 8.0 1.1

238.2 28.1 25.3 3.5

191.4 4.4 152.7 2.3

118.1 3.1 13.3 131.6

EVOLVING TV HOUSEHOLD

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Traditional TV Use Increases As We Get OlderYoung adults today are viewing differently than those in the past

Source: NPOWER, Total Day, PUT AA%

Persons Females Males

15.416.7

14.1

17.919.0

16.817.4

18.9

15.814.816.2

13.4

May '03 - 20-29 May '08 - 25-34 May '13 - 30-39 May '13 - 20-29

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TV Channels Remain Flat, PC Sites Visited Declined While Mobile Apps Grew Slightly

Source: Nielsen Custom Data, TV - 08/19/13-08/25/13 v comparable weeks in the prior years, HHLD; Online – Netview and VideoCensus, November, P2+; Mobile - EMM, Qtr 4, P18+

2011 2012 2013

17.5 17.8 17.5

75.9 75.3

65.0

4.3 4.4 4.7

23.226.5 26.8

Avg Television Channels Viewed Avg PC Surfing Sites by Brand VisitedAvg PC Streaming Sites by Brand Visited Avg Mobile Apps Used

TV IS BECOMING MORE SOCIAL

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We ALL Know That People Tweet About TVViewers interacting with television programming through social media is an important consumer phenomenon

Source: Nielsen Social, Unique Audience Data from 9/1/13-11/30/13, Nielsen Qtr 3 2013 Connected Devices Report

of smartphone/tablet owners use devices as second-screens

while watching TV

Tweets about U.S.TV in 2013, sent by

36 million people

Average Daily Unique Audience seeing Tweets

about U.S. TV

11 990 84percent million million

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They Are Also Tweeting About Brands73% of the people who tweet about brands are people who tweet about TV

Source: Nielsen Social, 8/1/13-10/30/13

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Smart TV Grows From 13% To 18% YOYSmart TVs are more likely to be located in the Living Room

Source: Nielsen Custom Data HHLD, February 2014

February 2014

No Smart TV; 82%

Smart TV and

en-abled; 10%

Smart TV and not enabled; 9%

18%

Smart TV Penetration

71%

20%

5%4%

Living Room Bedrooms

Basement Other

Smart TV by Location

52% enabled

51% enabled

53% enabled49% enabled

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Less Live TV Among Enabled Smart TV Users, More AOT And Device Contribution

Source: Nielsen Custom Study, HHLD, Prime, Percentage share of included sources, Live TV is based on all station minutes contributing to PUT, February 2014

Enabled Smart TV Not Enabled Smart TV No Smart TV

67%7%

15%

3%5%3%

74%

4%

14%

3%4% 1%

Live TV (excluding AOT) AOT Timeshifting DVD Game Console Multimedia Device

79%

4%9%

3%4%1%

Live TV including

AOT

75% 78% 83%

Unidentified tuning or AOT may signify that an enabled Smart TV is being used to stream content

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Feb '10 Feb '11 Feb '12 Feb '13 Feb '14

70.2

74.474.9

76.477.2

High Speed Internet Continues To Grow

Source: Nielsen NPM, data from the 15th of each month, based on scaled installed counts

Percent of Total US

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Distribution Continues To Shift From Wired Cable

Source: Nielsen NPM, data from the 15th of each month, based on scaled installed counts, Broadband Only Households fall into the ADS bucket Percent of Total US is based on a sum of the four breaks listed and is slightly higher than total Composite households

Feb '10 Feb '11 Feb '12 Feb '13 Feb '149.3 9.4 9.5 9.5 10.2

55.7 53.6 51.8 49.5 47.1

5.3 6.6 7.9 9.4 10.9

29.6 30.4 30.8 31.5 31.8

Broadcast Only Wired Cable (No Telco) Telco ADS

Percent of Total US

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Cable Downgrades To Broadcast Levels

Source: Nielsen custom data extract, Feb 2013 vs Feb 2014 Unified Homes

A snapshot of 7 homes who lowered their cable subscriptionWent from an average of 154 stations to 17 stationsHUT levels decreased by almost half in Prime; 38.2 to 19.6More likely to be HHI <$75K, HH Size 3+, White, Some College, Video Game and DVD owners

02/04- 02/10/13 (Avg of 154 stations) 02/03 - 02/09/14 (Avg of 17 Stations)AMC 19.6 DVD Playback 25.7AOT 14.5 AOT 16.9DVD Playback 7.3 Video Game Console 11.0Regional Sports Networks 6.4 AUDIO-VIDEO 10.3AUDIO-VIDEO 6.4 LIF 8.6DVR Playback (Timeshifting) 5.4 Regional Sports Networks 6.6USA 5.3 ION Affiliates 6.0All Other Ad Supported Cable Orig 4.8 DVR Playback (Timeshifting) 5.3WE 4.3 ABC Affiliates 2.8AEN 2.8 NBC Affiliates 2.7

Share of Prime Viewing – Top 10 Sources

BROADBAND ONLY

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Broadband Only Skews Younger

Source: Nielsen NPOWER, Based on Scaled Installed Households, Feb ‘14

Total U.S.African

AmericanAsian

American HispanicWhite

Non-Hispanic

HH 1.6% 1.0% 4.1% 1.2% 1.6%

P2-11 2.5% 0.8% 2.8% 0.6% 3.5%

P12-17 1.6% 1.0% 2.3% 1.6% 1.7%

P18-34 3.3% 2.3% 7.2% 1.2% 4.0%

P35-49 1.6% 1.0% 1.6% 1.1% 1.9%

P50+ 0.3% 0.0% 0.4% 0.0% 0.4%

Broadband Only Penetration%

Homes with alternative means to receive content

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Viewing Habits Vary Across Homes With And Without Broadband Only Sites

Source: Custom Data Extract, 01/27 - 02/23/14, Total Day, P2+

6%1%

11%

51%

31%

Broadband Only HH 1.6%

Live TV Timeshifting DVD Playback UseVideo Game Console Use Multimedia Device Use

Share of Total Use of TV

59%

9%5%

22%

4%

Traditional TV HH w/ 1+ BBO sites

2.8%

83%

9%

3%4%

1%

All Other HH 95.6% % of TV HHs:

THE SUBSCRIPTION VIDEO ON-DEMAND (SVOD) LANDSCAPE

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39% Of P2+ Have Access To An SVOD Service

Source: Nielsen Custom Study, P2+, based on scaled installed counts, 011514, Among Total TV Homes

35%

65%

Netflix No Netflix

10%

90%

Amazon Prime

No Amazon Prime

6%

94%

Hulu PlusNo Hulu Plus

Netflix

Hulu Plus

Amazon Prime

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Asian Americans Are More Likely To Have Access To An SVOD Service


White

Asian American

Hispanic

African American

Composite

40%

48%

36%

32%

39%

60%

52%

64%

68%

61%

SVOD Non SVOD

By Race and Ethnicity

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SVOD Homes Are More Educated With Higher HHLD Incomes And Often Have Children


4+ Years of College HH Income = $100K+ HH with Children

43%

29%

62%

27%

16%

49%

SVOD Non SVOD

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SVOD Homes Have Greater Device Penetration And Are More Likely To Be Broadband Only

Source: Nielsen Custom Study, P2+, based on scaled installed counts, 011514, Smart TV based on Capable and Enabled, Among Total TV Homes

Smart TV

Smartphone

Tablet

Game Console

DVD

DVR

6%

68%

29%

47%

82%

47%

17%

90%

55%

76%

84%

60%

SVOD Non SVOD

SVOD Non SVOD

8% 11%

28%35%

46%45%

14%10%

4%

Broadcast OnlySatelliteWired Cable (No Telco)TelcoBroadband Only

TV Service ProviderDevice Ownership

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SVOD Homes Tend To Skew Younger


Composite SVOD Non SVOD

12% 15% 9%

18%23%

15%

26%

31%

23%

44%31%

52%

P50+P35-49P25-34P18-24

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Less Live TV Among SVOD Homes But More Device Usage

Source: Nielsen Custom Study, P2+, Prime, Live+7, 011314 – 011914, Among Total TV Homes

67.9%

15.1%

5.1%9.3%2.7%

83.3%

10.3%3.2%

2.8%0.3%

Live TV

Timeshifting

DVD Playback

Video Game Console

Multimedia Device

SVOD Non SVOD

HOUSEHOLD VIDEO MAPPING

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Explanation Of Symbols

Live TV Game Console

Timeshifted TV Multimedia Device

DVD / Blu Ray Device

All Other Tuning Audio / VideoAVAOT

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Weekend In The Life Of A Heavy TV Home

Source: Nielsen Custom Data

F36

M38

M14

F9

MAS

TER

BED

ROO

MLI

VIN

G

ROO

MBE

DRO

OM

AOT

AOT

AOTAOT

AOT

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Weekday In The Life Of A Heavy TV Home


M38

M14

F9

MAS

TER

BED

ROO

MLI

VIN

G

ROO

MBE

DRO

OM

AOT

AOT

F36

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Day In The Life Of A Light TV Home


F22

F46

M17

F8

LIVI

NG

RO

OM

Weekday

Weekend

LIVI

NG

RO

OM

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Day In The Life Of An Aereo Home


F40

M43

AV

AV

LIVI

NG

RO

OM

Weekday

Weekend

LIVI

NG

RO

OM

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Weekend In The Life Of A BBO Home


F39

M39

M17

F12

MAS

TER

BED

ROO

MBE

DRO

OM

KITC

HEN

LIVI

NG

RO

OM

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Weekday In The Life Of A BBO Home


F39

M39

M17

F12

MAS

TER

BED

ROO

MBE

DRO

OM

KITC

HEN

LIVI

NG

RO

OM

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10AM

11AM

12PM

1PM 2PM 3PM 4PM 5PM 6PM 7PM 8PM 9PM

Day In The Life Of A Smartphone and Tablet User

Source: Nielsen Electronic Mobile Measurement

TABL

ETSM

ARTP

HO

NE

Facebook

WeatherF48Productivity

Netflix

Chrome

Gaming

Twitter / Vine

YouTube

Weather

Facebook / Instagram

Productivity

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A Future Look At A Heavy TV Home


AOT

AOT

M38

M14

F9

MAS

TER

BED

ROO

MLI

VIN

G

ROO

MBE

DRO

OM

F36

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Summary

Our video use is increasing while our traditional TV usage is flat or down depending on our age

Ethnicity matters• Asian Americans more BBO, more online, more SVOD

• African Americans more Traditional TV, more mobile

• Whites are older, BBO and more Time shifting

• Hispanics are younger, less Traditional TV and more mobile

It is a Lifestage and Behavior Change

• Young adults today watch less TV than similar age group 10 years ago

• Young adults actually watch less TV than they did 5 years ago

THANK YOU!

AN ERA OF GROWTH. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 2 1950’s &...

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Transcript of AN ERA OF GROWTH. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 2 1950’s &...