The media controller

The Media Control ler

Robert Maxwell

There has been considerable discussion of the fragmentation occurring in the social structure and of the implications for marketers. Emerging subgroups have received colorful labels, such as “Yuppies,” “Baby Boomers,” and the “Disappearing Middle Class. ” However, the recent proliferation of media alternatives and dif- fusion of new media products have helped create another subgroup, the “Media Controllers,” which has implications for marketing in the traditional marketing medium of television. While ‘ ‘Media Controllers’ ’ may have reciprocal member- ship in some of the groups mentioned earlier, they also demonstrate fairly unique characteristics, characteristics that advertisers, consumer psychologists, and marketers would be well advised to consider. This article profiles this subgroup and examines some implications for future research and theory building.

“Media Controllers” are a marketer’s dream. They are young, high income families. However, they are doing everything reasonably possible to control their media environments and information resources. This group has matured with television and the newer technologies and is highly selective in usage of traditional marketing communication channels such as commercial television. Media researchers have noted that individuals select media content to satisfy various needs (see, e.g., Rubin, 1983). With increased choice and control comes increased abil- ity to meet those needs in a wider variety of ways. This is clearly taking place among an important group of consumers. The “Media Controllers” are taking control of their media usagee-choosing what they wish to view or not view as they gain the media tools to do so. To illustrate some of these generic behavior patterns, let us examine some recent trends.

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THE MEDIA CONTROLLER

TELEVISION USAGE

While television audiences have been growing, the combined commercial network share of viewing has been slipping (Table 1). Thus, although commercial network television remains a formidable marketing communication option, network share of loyalty is eroding. Consumers aren’t devoting as much attention to the traditional networks as in the past.

Who is leaving network television, the traditional marketing medium? As indicated in Table 2, it is generally known to be the younger viewers, especially the 18 to 34 year old group. There are many factors that help explain this trend- level phenomenon. One is the increasing number of commercial TV outlets, especially independent stations. However, another reason is the dramatic increase in alternative vedia, such as video tape recorders and the various cable options. Another exp;:..ration may be that many of these younger viewers grew up with television entertainment and the use of television by marketers as a marketing vehicle. Maybe they are different and are beginning to take control of their television sets and use them in different ways, especially in view of the alternative media that are available.

What can happen when these younger viewers adopt alternative media is evidenced by the changes in viewing that take place in pay cable households. In pay TV households, viewing of the three commercial networks is considerably lower (Table 3) than it is nationally. Part of this is due to a greater number of channels offering alternative programming which cable television provides (see Krugman & Eckrich, 1982). Another probable factor is that these consumers are purchasing media entertainment alternatives so that they might have more control over their television entertainment. With more alternatives, consumers can exercise more control. At the same time, it’s important to remember that pay television carries no commercials. Thus, an important ,mumer group has removed itself from the marketing mainstream4r at least has the freedom to escape commercials on traditional television, when it wis’les.

TABLE 1 Proportion of Average TV Home’s Weekly Set Usage Accounted for by

ABC/CBS/NBC Programs: 1953-1983

Hours Spent With ABCICBSI ABC, CBS or NBC

NBC Total Hours Share of Total Programs Viewed Weekly Set Usage

November 1953 26.2 1963 26.6 1973 25.2 1983 26.0

35.0 42.7 47.3 52.5

75 62 53 50

Source: 7VDirnensrons ’84, Ed Papazian, Editor, Media Dynamics, Inc., 1984, p. 30.


TABLE 2 Share of Total Primetime Viewing to Network

Programs

Adults Adults Adults 18-34 3 5 4 9 55 +

1980 38% 31% 31% 1982 35 32 33 1983 35 31 34

Source: HBO Analysis, Based on NTI September 11, October I Pocket- pieces, 1980, 1982, 1983.

Thus, it is apparent that one of the reasons commercial television’s share of usage is down is that some households are subscribing to an alternative-pay television. At the same time, many of these subscribers, presented in Table 4, tend to be younger, more white collar, and have higher incomes than the national average. They are a desirable marketing group. In the past, marketers generally as- sumed that these people were in the commercial TV marketing pipeline. No longer. This most desirable market group is increasingly developing the power to remove themselves from traditional television marketing techniques. They are attempting to control their media. The case might be made that it is becoming increasingly difficult to consistently and efficiently reach this particular group through normal television channels. They are in control of their media. The argument might be made that, because of their demographic make-up, many of the pay television heads of households grew up with television and might be reacting to it differently than their parents.

VIDEO TECHNOLOGY

Pay cable households also demonstrate key trends with regard to other media control devices, namely video cassette recorders and remote control devices (Table 5). These other media also allow consumers to exercise more control of their media

TABLE 3 Primetime Usage Trends November 1979-November 1983 Pay Homes vs Total Homes-RatingEhare Comparison

Rating/Share

Total U.S. Homes Pay TV Homes

Nov. 19 Nov. 83 Nov. 79 Nov. 83

3 Networks 54/88 51/80 51/72 46/65

Suurce: HBO Analysis, Nielsen Cable Status Report, November 1983.

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TABLE 4 Demographic Profile of Pay and Total U.S. Households

Pay Cable Households Total U.S. Households

Age of HH Head 18-34 3 5 4 9 50 +

Occupation of HH Head Prof. /Tech. /Mgr . Clerical/Sales Other Not Employed

Income of HH Head $40,ooO + $25,OOO-$39,999 $15,m$24,999 Under $IS,OOO

36 35 29

30 18 33 19

23 31 23 23

30 26 44

21 14 31 34

14 22 28 42

Source: SMRB, 1983 Study of Media and Markets.

environment, while removing themselves from the traditional television marketing medium. VCR ownership is clearly a vote for more control. More specifically, while time-shifting (recording a program for later viewing) is a prime function of VCRs, VCR owners also rent commercial-free movies and record movies from commercial-free pay television. At the same time, many are also editing commercials out of programs they record from commercial television. At the same time, VCR ownership is higher in the younger 18-34 group and the 18-49 group, than older demographic classes, and is more prevalent in pay and multi-pay cable homes.

At the same time, remote control penetration also gives reason for more marketer concern. These devices not only allow convenient channel flipping, but also allow users to switch out of commercials (“ad zapping”) with equal ease. As is the case with VCRs, the owners of remote control devices tend to be higher

TABLE 5 VCR and TV Remote Control Penetration

National TV Households Pay TV Households

VCR Penetration Remote Control Penetration

9% 14%

13% 28

Sou:ce: SMRB, 1983; “Channel Switching in Primetime,” A Special Report Prepared by Nielsen Television Index, March 1983.

1. For a related discussion, see “Get Ready for the Video Generation,” Markering and Media De-

2. HBO Internal Study, Monthly Consumer Tracking Study, November 1983. cisions, 19(4), April 1984, pp. 5 9 4 1 , 116, 118, 120.

106 FALLNVINTER 1984


income and younger. They are top marketing prospects. Both VCRs and remote controls represent extensions of the freedom to control media. More importantly, they are being rapidly adopted by a primary marketing group who are choosing to stay out of traditional marketing channels-network television-when they wish.

It would be convenient to identify these “Media Controllers” as videophiles or videotechies, but that would overlook one of the consumer benefits of acquiring these devices and services, namely greater control. In addition, research has shown that these individuals lead active lifestyles, subscribe to a greater number of magazines than their counterparts, and are also likely to have other video equipment. More specifically, the owners of VCRs and pay television tend to be more outgoing in their activities. Not only do they have the equipment necessary to control their media environment, but they also tend to go out more. For example, the Media Controllers are more likely to return to school than are their counterparts. They are more likely to participate in sporting events than to attend them.3 At the same time, the people who subscribe to pay television tend to also own a VCR, video- game, or personal computer at a higher rate than do non-pay television households (Table 6). At the same time, households who take pay and those that have VCRs tend to be heavier readers of magazines. For example, 17% of pay television households subscribe to over nine magazines a month, while only 12% of all U.S. households subscribe at that level. This suggests that members of this group are not only heavy magazine readers, but also selective about the type of media that come into their homes.

The higher use of these items (VCRs, video games, computers, magazines) in pay homes is the logical extension of what pay television originally provided this consumer group-more control of the information and entertainment environment. Each of these items represents one more way for this new class, Media Controllers, to remove themselves-when they want-from the traditional marketing mainstream: network television.

TABLE 6 Ownership of “High Tech” Items

Percent Ownership

Type of Household VCR VG PC ~~

Non-Pay/Cable Homes 13% 18% 10% Pay Homes 24 38 19

Source HBO Internal Study, Monthly Consumer Tracking Study, April 19R4

3. HBO Internal Study, Monthly Consumer Tracking Study, March 1984.

PSYCHOLOGY & MARKETINGNOL. 1 NO 3/4 107


IMPLICATIONS

The Media Controllers tend to be young, educated, affluent types who are a primary marketing group which marketers want to reach. However, this group is surrounding themselves with services and devices that permit great variety and control with regard to video entertainment and information. Some may argue that these characteristics may be a function of income. Income certainly plays a key role, but it, like other demographic variables, cannot divulge the consumer benefits derived, nor can it reveal the underlying consumer motivations. Are people that grew up with television different? Or is it that these people are simply heavier users of new media? If so, what does that mean for marketers? Does it mean that they wish to be “more in touch” with media rather than “more in control” of media? And does that mean marketers don’t have to worry? Consumer psychologists are clearly faced with the challenge of understanding these behaviors and elaborating the implications for marketing. Marketing communication specialists must deal with a more immediate problem. A prime consumer target market is “controlling” its way out of or around the traditional network TV pipeline right now. It is becoming harder to reach a significant consumer group. A marketer can no longer assume that a key consumer group will be in front of the TV set religiously at 8 p.m. What this means short-term is unclear. But it does suggest that market seg- mentation schemes may well have to be more complex to fully reveal the psycho- logical and psychographic dimensions of the ‘‘Media Controllers” and other subgroups. At the same time, it suggests that the advertising media mix will likely assume even greater importance. At the very least, market researchers might consider some of the variables discussed, such as pay cable status, VCR, and remote ownership, as indicators of this group. At the same time, this consumer group may be an early warning of where more consumers might be headed-greater control of their media diet.

A final word of caution is in order. The existence of a Media Controller subgroup does not herald a massive defection from commercial television. It does indicate that audiences are behaving more selectively and are willing to spend substantial sums to acquire greater control of their entertainment. At the same time, this process is removing a key consumer group out of the major marketing vehicle: network television. The implication for marketers is that it’s probably no longer business as usual.

108 FALUWINTER 1984


REFERENCES

Krugman, Dean M., & Eckrich, Donald. Differences in cable and pay cable audiences. Journal of

Rubin, Alan M. Television uses and gratifications: The interactions of viewing patterns and motivation. Advertising Research, AugustISeptember 1982,22(4), 23-29.

Journal of Broadcasting, Winter 1983,27(1), 37-51.

Robert Maxwell, Ph.D, is Vice President, Research, for Home Box Office, Inc. Maxwell is responsible for directing all research activities for the nation’s largest pay television com- pany.

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The media controller