‘consumer behaviour and media platforms: the technology is there but will they use it?'

ippr oxford media convention

affiliated to the

19th january 2006

andrew canter, managing director

dedicated to jake frank canter29.10.05

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e sy

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digital has opened the ‘door’ to enabling technology

1. lower entry costs

2. consumer demand

3. rapid advancement

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1 2 3 4 5 6 7 8 9 10 11 12 13 14

colour TV

vcr

video cameras0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

colour TVinternet accessdigital tvvcrmobile phonesvideo gamesvideo camerascd players

digital tv has shown the fastest growth rate

penetration of colour tv, internet, digital tv, vcr,mobile phone, video games, and video cameras

source: industry estimates/the future foundation/understanding & solutions

number of years

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the cost of tv has changed

£5,000

1990’s

under£1,000

2000’s

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millions of consumers are already using this technology

1 million5 million

1.7 million

1 million(185k in 1st

Week)

fastestselling inuk history

2 million

source: tgi/mpg/mda/bbc/icm direct/contentworx forecasts

2 million

500k units

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the ipod generation

2005

jan: ipodshuffle 1gb£75aug: 5th gen.60gb music,photos15,000 songssep: ipod nano2gb £139oct: ipod video

£299now£279

2006

iphone?

£?

2001

5gbmusic

£325now£50

1999

basic mp3 player

£100now£10

*Cost:

* n.b. all costs are estimatessource: apple/contentworx forecasts

2002

mar: 10gbjul: 20gbpc compat.dec: 3rd gen.new buttons/layout10, 15, 30gb5gb Major price cut

£150now£30

2003

7,500 songsitunes musicstore-downloadjune: 1 millsep: 1.4 milldec: 40gb versionreplaced 10gbwith 15gb sameprice

£250now£100

2004

mini ipod £504gb hard drivejun: 4th gen.£75 price cut+ new softwarenov: ipod photorefine i/face,add capacity,slimmed down,added features

£225now£150

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£22 billion

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a new breed of entertainment company?

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the bbc are investing heavily in new technology

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entertainment is now an interactive experience

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we are witnessing real convergence

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don’t just take our word for it!

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viewers migrate away from tv setthe report set out to look at the following four key areas:-

1. ad-avoidance – e.g. what do consumers like best about their pvrs?

2. viewer migration – e.g. what devices were they using to watch tv programmes and how long were they spending on those devices?

3. on-demand – e.g. would they want to pay, if so how much for the convenience of this type of this service?

4. attitudes towards branded content funded by advertisers – e.g. would they be willing to watch this type of involving 'advertising' content? would they be prepared to pay to avoid advertising?

source: ICM direct/contentworx

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key findingsx around 2.0 million watch tv via broadbandx skipping through ‘ad-break’ at ‘30 times normal

speed’ best feature of sky+x almost one-third (29%) of viewing tv programmes

takes place away from tv set, amongst certain age groups

x majority (52%) of those watching tv via broadband, spent ‘over 30 mins’ per day

x those viewing via mobile, most (22%) spent ‘up to 10 mins’ per day

x vast majority (61%) of younger age groups (18-24) are willing to watch content funded by advertisers

x almost a quarter (23%) are prepared to pay to avoid watching ‘ads’ in the future

source: ICM direct/contentworx

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new model

earlier adopters

‘earlier adopters’

Source: contentworx

old model

early adopters

late adopters

mass market

tric

kle

dow

n e

ffect

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partnerships are critical

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a new lease of life

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style v function

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technology enriches our lives

source: letter’s page, prima magazine

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“this is revolution, not evolution”

than you

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