Gauging Expected Viewer Response and Behaviour to Full Digital Services

Steve Weaver

Network Research Director

Nine Network Australia

Understanding the Viewer and their Expectations

Impact?

I know Underbelly is on Sunday, Two and a Half Men on Monday, new Simpsons on Tuesday then mum gets the tv for that show…

(16-39yo, Melbourne, 2009)

There’s so many channels now it’s hard to

remember, especially the new ones…

(16-39yo, Sydney, 2010)

Morphing Choice Sets

Morphing Choice Sets

Morphing Choice Sets

Share of Viewing- The Impact of ch100

20.0%

22.0%

24.0%

26.0%

28.0%

30.0%

32.0%

34.0%

Network 7 Network 9 Network TENPPL with PAYTV PPL with FTA ONLY

Brand Identity as an EPG

I know the sort of shows that’ll be on Go!…

(16-39yo, Parramatta, 2010)

7Two’s got the old crap, the classics and that… (16-39yo, Parramatta,

2010)

One’s got the sport…

Parramatta, 2010)

I like that the free-to-air digital multi-channels are specialising in different

genres

13%

53%

29%

4%

12%

49%

26%

10% 3%

The new digital free-to-air multi-channels are now part of my regular

viewing

66%

Ag

ree

61%

Ag

ree

Expectations

ANYTIME ANYWHERE ANY DEVICE

How Will Broadcasters Meet Viewer Expectations?

How Will Broadcasters Meet Viewer Expectations?

ATAWAD

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2010 2011

DT

T P

enet

rati

on

Mu

ltic

han

nel

Sh

are

of

Vie

win

g

Multichannel Share and DTT Penetration TTV

Multichannel Share Multichannel Share Weighted by Penetration Digital Terrestrial Penetration

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

2010 2011

PV

R P

enet

rati

on

% P

layb

ack

Playback and PVR Penetration TTV

Playback (%) Playback Weighted by Penetration PVR Penetration

0:14:24

0:21:36

0:28:48

0:36:00

0:43:12

0:50:24

0:57:36

2008 2009 2010 2011

Time Spent Viewing Multichannels

TTL Multichannels

0:14:24

0:21:36

0:28:48

0:36:00

0:43:12

0:50:24

0:57:36

1:04:48

2010 2011

Time Spent Viewing in Playback

TTL TV TTL FTA Primary TTL Multichannels

PVR non longer has a monopoly on the catch-up domain

Online for catch-up:

Cheaper

More Storage

Longer availability

Reasons for Watching Long Form Online

66

64

42

39

38

36

36

28

25

13

4

To catch up on missed TV

I can watch them when I want to

To watch programs I can't get anywhere else

When there is nothing on TV

To watch a program I forgot to record

To skip ads

To have more control over what I want to watch

For additional content to what is on TV

To fill in time

I prefer watching shows online rather than TV

Other

Total LF Users %

70

86

50

51

47

44

51

42

31

19

5

63

45

32

31

36

27

20

19

21

5

5

Use LF > weekly

%

Use LF < weekly

%

Source: Ninemsn Millward Brown Fixplay Audience Study, Nov 2010

Deloitte's State of the Media Democracy

1. Internet, mobile and social media channels enhancing viewer experience and driving initial broadcast

2. Concurrent Media Exposure

1. while watching TV…

1. 42% are online

2. 29% are on mobile devices

3. 26% are IM or text

Concurrent Media Exposure by Age

Overall 16-29 years 30-49 years 50 years+

Internet + TV 49% 68% 60% 34%

Internet + Radio 39% 45% 39% 38%

Radio + TV 10% 8% 8% 12%

No simultaneous consumption 31% 16% 26% 40%

0%

10%

20%

30%

40%

50%

60%

70%

Source: Nielsen Internet and Technology Report 2010

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

TV Only TV & Online Online Only

Main Way of Following The Block

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

TV Total TV Only Online while TVon

Main Way of Following the Vancouver Winter Olympics

46.0%

24.1%

19.5%

0.0%

47.1%

42.5%

40.2%

34.5%

24.1% 24.1%

12.6%

35.2%

17.6%

8.2%

39.6% 41.5%

23.3%

37.1%

11.9%

15.7%

6.3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Catch Up Up Next Old Ep's Interest inRenovating

Renovating Tipsand Tricks

I want to find outmore about the

contestants

Enter aCompetition

Read comments Read commentsfrom experts

I want to find outmore about the

presenters

Why visited The Block website

Mid Wave Post Wave

Reason for website visit

Source: The Block Cross Platform Research, 2010, Mid Wave n = 51 Post Wave n = 85

Deeper Connections

STB

Foxtel IQ; CE PVR

OTT STB

T-Box; Foxtel IPTV; iinet/fetch box; Apple

Connected TV’s

Samsung

Game Consoles

x-box 360

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Recall Perception Consideration Advocacy

Brand Funnel Impact from Multi-Platform Exposure

Not seen Seen Brand X TVC only Seen campaign (Both TV & Online)

WWOS

TV Program

Sports Production

Sports Updates

Website

BEFORE

WWOS

TV Program

Umbrella Brand Sports Production

Website

Sports Update

Magazine (Umbrella Brand of specialist

Titles)

Tour Promoter

Loyalty Club

Tables Stats

In-line Highlights In-line & Video

Player Long Form Library Footage

Tipping Voting

Exclusives Editorial

Opinion- Expert and User Education

Community Connection

AFTER

515 000

Will Viewing Habits Change?

TV Consumption Up

New technologies, platforms, device, providers

Better viewing experience

Depth of content

Australia Up

1.5hrs/mth

USA Up

2hrs/mth

UK Up

2hrs/wk

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Multichannel Share of Viewing TTL PPL

ONE Launch

SBS2 Launch

ABC2 Launch

GO! Launch ABC3 Launch

7Two Launch

ABC24 Launch

7Mate/GEM Launch

Eleven Launch

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Primary Channel Share Multichannel Share

2002 levels in UK 2008 levels in France

Early 90’s in US

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

Net Share Gains by Network

Net 7Two/7mate Net Go!/Gem Net One/Eleven

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Multichannel Share Progression- weeks since launch 16-39yo’s

ONE GO! 7TWO GEM 7mate ELEVEN

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Multichannel Share Progression re-weighted based on Penetration 16-39yo’s

ONE GO! 7TWO GEM 7mate ELEVEN

20

25

30

35

40

45

50

55

60

65

70Median Age

Network 7TWO Network 7mate Network GO! Network Gem Network ONE Network ELEVEN

Impact on Primary Broadcast

0

10

20

30

40

50

60

70

80

Number of 2m+ programs

2,187,095

2,354,068

2,404,659 2,425,715

2,439,849 2,455,804

2,464,652

1,900,000

2,000,000

2,100,000

2,200,000

2,300,000

2,400,000

2,500,000

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Tota

l Au

die

nce

Pla

ybac

k an

d S

tre

amin

g A

ud

ien

ce

Underbelly Audience Growth

PVR Playback Streams Total Audience

+6.9% +2.2% +1.4% +0.9% +1.1% +1.0% +1.0%

69:31 58:42 34:66 33:67 48:52 12:88 18:82

0

50

100

150

200

250

Index of Streams x days after TV broadcast

Drama Ob Doc Reality

Longer tail

38%

13%

8% 6% 5% 5% 4% 4% 4% 3%

2% 2%

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

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

% o

f to

tal s

tre

ams

% of total video streams

Source: Ninemsn. Omniture Site Catalyst June’2010

62% of streams occur after the first week

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

News Streams and 6PM Bulletin- Brisbane Flood & Yasi

Nine News video streams by day 6PM Bulletin

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Nine News Hourly Streams During Brisbane Flood

Nine News streams 11/01/2011 Nine News streams 12/01/2011 Average News Day (5/1/2011)

How Can Networks Balance The Needs of Advertiser and Viewer

Attitude to Payment for Long Form Online Content

16 18

50 10 10

26

74 72

24

Pay by programme without ads

%

Pay for subscription to

collection without ads

%

Accept more advertising to

keep free %

Source: Ninemsn Millward Brown Fixplay Audience Study, Nov 2010

Very Willing

Not Very Willing But Will Accept It

Not At All Willing

Long Form Video

Content Commercials

Television

Content Commercials

Summary

Viewer Expectations:

ATAWAD

Meeting Expectations:

Breadth, Depth, Immediacy (BDI)

Changing Habits:

Morphed by Platform That Provides BDI

Balancing Needs:

X-Platform Ad Supported