Two reports out today offer hope for our business in 2010. They also portend continued change and the clear message that we must manage that change if we are to survive as broadcasters. Add your thoughts.
Even though Americans are pushing domestic boxoffice revenue to new highs, an increasing number of them are indicating they’d rather save money and watch television.
According to Deloitte’s fourth annual “State of the Media Democracy” report, due out today, 34 percent of Americans cite TV as their favorite medium, up from 27 percent last year. Second through fourth, respectively, were Internet, music and books, all of which are perceived by the average consumer as being less expensive than a night out at the movies. Rest of this article
This is truly a golden age of anytime, anywhere media. And rather than Americans replacing TV with the Internet or a mobile device, they are just consuming more—often simultaneously. Despite the availability of video content on the Internet, TV viewing is up by about 20% over the last decade, and the average American watches 141 hours of programming each month. Online video consumption stands at more than three hours a month—up from virtually nothing ten years ago. Mobile viewing is growing, too, as devices and connectivity become more widespread. Smartphone usage is climbing and text messaging is through the roof. On average, teens use more than 3,500 text messages a month and adults about 500.
Top Cross Media Trends in 2010:
- Convergence is in demand. As American consumers continue to outfit their “home bunkers,” they will invest in the next generation of TV’s that are Internet enabled giving universal access to content across screens combined with the devices in which they’ve already invested, such as HDTVs, DVRs and “over-the-top” systems. And 4G networks make it an all-Internet world.
- Second and third screen initiatives grow. More content originally for the TV will be accessed on the Web, long-form video content for mobile phones will expand and efforts to make over-the-top systems will become more compelling for accessing Web content.
- Audience fragmentation continues. The increasing variety and sophistication of media options will make it a challenge to keep viewers engaged and receptive. Evolutions to the media universe will need to follow the new laws of increasing portability and increasing content.
- New and varied approaches to content are created. New, low-cost models are key (e.g., Jay Leno’s nightly 10 p.m. program on NBC). Low-performing networks will go extinct and free on demand online offerings will need reconsideration.
- Multiple distribution opportunities are formed. Deals—including the Comcast/NBC deal—will create new outlets for programming, while studios replace the traditional executive brand builders responsible for a number of distribution channels.