Changing The Channel

A summary report and analysis of the changing global landscape of television

The Economist May 2010

How do people really watch TV?

• What we expect and how we behave does not aligned

•85% Scheduled broadcast

•The rest are time shifting

•Be part of the conversation

• Implications: Time shifting is disrupting the ad model

•Naked brand solution

As media fragmentation continues and video platforms and technologies increase, the majority of video content is consumed

at home via the TV set.

Content is no longer tied into the TV networks

• Consumer online video is growing in popularity

• Indicates the desire to watch content on demand

• Increasing trend as TV and computers merging

• Implications: Develop catch-up TV faster

•Naked brand solution

Content is no longer tied into the TV networks, it’s freely available on video streaming websites.

Overseas mobile trends are culturally specific

The appeal of mobile TV is not so much that it is portable, but rather that it is personal and mostly consumed at home. (Japan)

• 43% of Japanese consumers watched mobile TV

• Broadcasters expectations of mobile TV behaviour failed

•Consumers snack on mobile content

• Implications: Cultural differences needs analysis

•Naked brand solution

The trend of consumers not paying for content is challenged by sport

Consumers will pay for content that they want to watch, sport specifically driving this trend.

• Sport is content that fans are willing to pay for

• It reaches the elusive young men’s age group

• Big events such as FIFA still draws large audiences

• Implications: Provide content on multiple channels

•Naked brand solution

3D television penetration will grow and be driven by sport

•Motivation to buy 3D sets? Provide unseen angles and enhance the experience

•3D penetration will follow the path of HDTV

• Implications: Glasses will hinder the experience while multi-tasking

•Naked brand solution

Although in the future TV sets will offer 3D, most viewers will use the capabilities during special events

Television is spreading in new directions

Transmedia storytelling provides deeper and more immersive brand experiences for fans

•The concept of Transmedia

•Lost pioneered webisodes

•Not financially profitable

•TV ecosystem, when TV goes off air other channels vanish

• Implication: Invite consumers to participate in our comms

•Naked brand solution

TV is becoming social and interactive

The integration of TV and social media platforms as a regular part of the entertainment experience is just emerging

•Social TV is integrating social networking tools as part of TV shows

•Q&A incorporates Twitter and video uploads

•Encourages viewers at home to participate in the live show

• Implications: Opportunity to target niche demographics

•Naked brand solution

Summary

1. Content is no longer tied into the TV networks

2. With so much choice, we surprisingly watch more TV when it’s broadcasted

3. Overseas mobile trends are culturally specific

4. The trend of consumers not paying for content is challenged by sport

5. 3D television penetration will grow and mainly driven by sport

6. Video content is spreading to other mediums and providing deeper, more immersive experiences.

7. TV is becoming social and interactive

The End!