media and entertainment barometer iv
DESCRIPTION
Every six months, KPMG takes the pulse of the media industry, surveying users of new and traditional mediaTRANSCRIPT
KPMGrsquos Media and entertainMent BaroMeter
Smart moves for new media
How is smart technology shaping lsquonew mediarsquo
kpmgcouk
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
introduction Smartphones and tablets reel in new consumers while TV continues to enjoy biggest audience
david elms Head of Media
Every six months KPMG takes the pulse of the media industry surveying users of new and traditional media
the surveys conducted on KPMGrsquos behalf by research and consulting organisation YouGov reveal shifts in consumer appetite and consumption that can translate into powerful indicators for media providers when setting future strategy and direction
our fourth Media and entertainment Barometer highlights a sharp increase in the uptake and monetisation of smartphones tablets and e-readers to the month ending 31 March 2011
Smartphone ownership is up by one-third while tablets new to the UK market in July 2010 have seen their customer share more than double Users happily pay for apps with tablets currently getting the larger proportion of their spend the old favourite television continues to be the
most popular source of entertainment at a time when global events have dominated the news agenda However certain other traditional media activities such as reading print newspapers and listening to the radio continue to decline in popularity
Four-fifths (79 percent) of respondents engaged in new media activities while 99 percent participated in traditional media activities ndash both statistics are consistent with wave 3 of the research
in new media trends mostly continue on an upward trajectory in areas such as social networking and eBooks although online media appeals predominantly to the younger age groups (92 percent of 16 to 24 year-olds participate in new media activity) it now extends to 69 percent of the over-55s too in fact one-third of this older age group engages in social networking and blogging For media companies this
survey indicates that there is a fine line to tread between protecting their stables of traditional media activities while branching out into digital opportunities
there remains a general reluctance among consumers to acquire paid-for content online However the important exceptions are online access and online content on the move Smartphones and tablets are paving the way for media companies that seek to develop their new media business models
By keeping track of consumer habits on a six-monthly basis KPMG will alert media providers to shifting patterns of consumer demand spend and consumption as they happen
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about this Survey
all figures unless stated otherwise are from YouGov Plc research was conducted at six-monthly intervals
- Wave 1 mdash 11 - 14 September 2009
- Wave 2 mdash 15 - 18 March 2010
- Wave 3 mdash 14 - 21 September 2010
- Wave 4 mdash 31 March - 5 april 2011
the surveys sampled people aged 16 or over in the UK the number of respondents to YouGovrsquos online panel varies in each wave of research
- Wave 1 mdash 1037
- Wave 2 mdash 1063
- Wave 3 mdash 2241
- Wave 4 mdash 2103
YouGov asks participants about their preferences and consumption habits across all types of media including publishing broadcast music and gaming in the prior month their responses inform our analysis
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
trend for smartphones and tablets surges upwards
Increased spending on smartphones and tablets indicates growing consumer demand for lsquoon the moversquo media
People cannot get enough of smartphones and tablets in the UK despite being a relatively new introduction to the market smartphone ownership is growing strongly up one-third from wave 3 to 36 percent in wave 4 Meanwhile tablet ownership has more than doubled in the past six months
Smartphones are especially popular among younger consumers mdash more than half (54 percent) of 18-24 year-olds choose smartphones three-quarters (74 percent) use their smartphones to surf the net and to read emails while 61 percent use it for social media one in eight (12 percent) users has read an eBook on the device
Whatrsquos more in the past six months consumer spend on smartphones and notably tablets has increased People now spend close to pound900 per month on applications (apps) for their tablets and near to pound600 on apps for their smartphones in the prior month over 60 percent of tablet owners paid to access online content considerably more than the 24 percent who paid to access content on their smartphones
ldquothe bright spot in the media industry is the rise of media on the move via tablets and smartphonesrdquo david elms Head of Media KPMG
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Spend on apps for smartphones continues
Almost three-quarters (74 percent) downloaded apps on their smartphones in the past 12 months mdash however 42 percent only downloaded free apps up from 39 percent in wave 3Those paying for apps spent on average pound565 in the month to 31 March 2011 up slightly from pound530 in wave 3
apple and BlackBerry continue to lead the smartphone market although there is increasing pressure from other manufacturers notably HtC Men at 40 percent are more likely to own a smartphone than women (32 percent) However women smartphone users are nearly twice as likely to own a BlackBerry as men
For which if any of the following activities have you used your smartphone
97 96
86 84
80 76
74 74
62 6158 58
Sen
din
g t
ext
mes
sage
s53 53
50 51 Ta
kin
g p
ho
tos
Wave 4 Wave 3
emai
ling
ph
oto
s43
Su
rfin
g t
he
32 in
tern
et28 28
25 25 26 22
Rea
din
g e
mai
ls21 18 15
14 14 13 12 11 11
9 9 8 S
oci
al m
edia
7 6 4 3
Em
ail amp
inst
ant
mes
sag
ing
List
enin
g t
o m
usi
c
Pla
yin
gd
own
load
ing
fr
ee g
ames
Rea
din
g d
ocu
men
ts
Wat
chin
g T
Vv
ideo
clip
s
List
enin
g t
o t
he
rad
io
Paid
for
gam
es
Pu
rch
asin
g it
ems
Rea
din
g n
ewsp
aper
s
Dow
nlo
adin
g
pai
d fo
r m
usi
c
Rea
din
g e
Bo
oks
Dow
nlo
adin
g f
ree
mu
sic
Ed
itin
g d
ocu
men
ts
Ord
erin
g t
akea
way
On
line
gam
blin
g
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Unsurprisingly given its dominance in the market applersquos app Store accounted for the majority (73) of paid apps this is largely because it offers a wider selection of apps than its competitors as well as ease of use and a simple payment mechanism Meanwhile just 7 percent chose Google app store and 6 percent opted for Blackberry app World
Furthermore 24 percent of consumers paid to access content using their smartphones
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tablets take off
Despite the relative novelty of the tablet mdash Applersquos iPad was only launched in the UK in July 2010 mdash its popularity continues Ownership of tablets more than doubled in the past six months up from two percent of respondents in wave 3 to five percent in wave 4
Consumers are embracing tablets for making content on the move more accessible via apps and for delivering services such as games music and video that they currently demand
as more apps become available more consumers are indulging in a variety of activities 74 percent use the tablet to surf the internet 66 percent to read emails and 52 percent to playdownload free games or to read eBooks Half use it to watch tVvideo clips and for social media
For which if any of the following activities have you used your tablet
74
66
52 52 50 50 49
48 47
Su
rfin
g t
he
inte
rnet
44 41 41
38 36 Wave 4 Wave 3
35 R
ead
ing
em
ails
34 31
28 27 Pl
ayin
g amp
dow
nloa
ding
25 25
24 23 24 fr
ee g
ames
22
19 19
16 15 16 R
ead
ing
eB
oo
ks10 10
7
Wat
chin
g6
T
VV
ideo
clip
s3
0
So
cial
med
ia
E
mai
lin
stan
tm
essa
gin
g
Play
ing
amp d
ownl
oadi
ng
pai
d fo
r ga
mes
Rea
din
g d
ocu
men
ts
List
enin
g t
o m
usi
c
Pu
rch
asin
g it
ems
Rea
ding
new
spap
ers
List
enin
g to
the
rad
io
Ed
itin
g d
ocu
men
ts
D
own
load
ing
free
mu
sic
Dow
nlo
adin
gp
aid
for
mu
sic
Ord
erin
g t
akea
way
On
line
gam
blin
g
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
apple continues to be the most popular tablet on the market mdash increasing market share by 12 percentage points to 57 percent between waves 3 and 4 However it is anticipated that Samsung HP dell and archos (which all saw declining market share in the fourth wave) will ignite price competition by introducing more affordable hardware
Four-fifths of tablet-owners downloaded apps in the month to March 31 2011 of which 29 percent were free 6 percent paid and 45 percent a combination of both the apple app Store continues to be the main source of paid apps mdash 93 percent visited the store to download paid apps to their tablets
74 percent of smartphone owners downloaded apps in the same period of which 42 percent were free one percent paid for and 31 percent a combination of both
almost three-quarters (74 percent) of tablet owners also own a smartphone these dual owners are interestingly more inclined to spend on apps for tablets (pound887 in the month to March 31 2010) than on apps for smartphones (pound565) they are also more willing to pay for content on tablets (62 percent paid for access) than on smartphones (24 percent) this is inevitably due to the size of the tablet and its superior video quality and screen that make it
preferable for viewing books newspapers films and tV programmes than on the smartphone as new content providers such as Sky news Channel 4 and itV come on board with video services we anticipate that the tabletrsquos popularity will grow further
Consumers in wave 4 paid to access games (32 percent) eBooks (21 percent) and music (20 percent) on the tablet the survey findings clearly point to a continued rise in the popularity of smartphones and particularly tablets this will continue to drive expenditure through the internet
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Whatrsquos going up in new media
ldquothere is uncertainty about how fast online markets will develop However high awareness levels indicate latent demand with aspiring consumers buying smart technology and paying for online apps and online media the catalyst for growth is likely to be the introduction of lower-priced tablets and smartphones More affordable online media services may bring on the tipping point that turns innovative services into mass mediardquo david elms Head of Media KPMG
Our media barometer provides a snapshot of new media preferences and finds out where consumers are spending their money
eBooks the alternative paperback
the increasing availability of tablets and e-readers such as the iPad and the Kindle is turning readers to digital content
Since wave 1 of our research in September 2009 consumers of electronic books have almost doubled For users who prefer the look and feel of traditional content e-readers offer an accessible and portable format with a page-turning rather than scrolling experience that is not possible on a PC screen
Users spend more on eBooks (pound4) per month than on online games (pound2) or streamed tV (pound1) only downloaded music competes for fractionally more disposable income (pound5)
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Social networking for all
Social networking and blogging remain the most popular online activity Half of all respondents participate including one third of the over-55s while women are more likely to use social networking blogging sites than men
Gaming now a relatively mature online industry may have suffered as a consequence it has steadily declined in popularity from 29 percent in wave 1 to 21 percent by wave 4 as it competes for user time However gaming (along with social networking) still accounts for the greatest amount of time (12 hours) spent online
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Please indicate which if any of the following activities you have done in the past month (new media)
50 50 49
47
40 Wave 4 (March 2011)
37 36 Wave 3 (September 2010)
32 Wave 2 (March 2010)
29 Wave 1 (September 2009) 27
S
oci
al n
etw
ork
ing
b
log
gin
g s
ites
24 24
22 22 22 22 21 21 21
19 18
17 17 17 O
nlin
e ne
ws
port
als
16 16 16 16
15 15 15 n
ewsp
aper
s14 14
13 13 12
8
U
sed
vid
eo o
n6
4 4 d
eman
d fo
r TV
Dow
nlo
aded
mu
sic
On
line
gam
es
Str
eam
ed m
usi
c S
trea
med
on
line
TV p
rog
ram
mes
On
line
mag
azin
es
Str
eam
ed r
adio
Rea
d d
igit
al b
oo
ks
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Streaming ndash as long as itrsquos free
For the first time KPMG tested respondentsrsquo awareness of streamed TV services and found it to be very high
the top seven providers achieved awareness of between 39 percent and 90 percent
Free-view tV services such as BBC iPlayer (acknowledged by 90 percent of respondents) and itV Player (74 percent) which are heavily cross-promoted by broadcasters are the most well-known Conversion rates are also high BBC iPlayer is used by just under two-thirds (63 percent) of those respondents who have heard of it
However awareness does not always convert into usage especially for paid services Half of our respondents had heard of Sky Player but less than 1 in 10 of these (8 percent) use it Conversion rates for other paid streaming services are even lower Looking ahead media providers might respond to consumersrsquo appetite for streaming by offering single tV programmes or mini-daily or weekly subscriptions without long-term tie-ins
among the younger generation awareness of itV Player Channel 4rsquos 4od and Lovefilm is higher than among older counterparts while BBC iPlayerrsquos audience remains consistent irrespective of usersrsquo age
awareness of streaming is much higher among smartphone users than standard handset owners People who own smartphones tend to be tech savvy they know what streaming services are available and are more inclined to search for data services online
BBC iPlayer 90
ITV Player 74
LoveFilm 58
BT Vision 55
Sky Player 50
4oD 48
Sky Anytime 39
Demand 5 25
TalkTalk TV 15
Apple TV 14
Google TV 14
Seesaw 9 Wave 4 (March 2011)
Blinkbox 5
Other 1
None of these 6
Which if any of the following online streaming services have you heard of
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tV resilient to smart invasion
TV continues to be a top pastime but other traditional media activities are losing fans
the survey finds that watching tV offline remains the most popular form of consuming media in wave four 92 percent of people watched tV barely changing on the previous two waves
However the overall consumption of traditional media is declining and the inexorable migration to online media continues
Certain traditional media activities fail to find favour and attract less disposable income than in the past Going down in popularity are print newspapers (from 81 percent in wave 1 to 77 percent by wave 4) radio (from 82 percent to 77 percent) and playing consolevideo games (from 34 percent to 27 percent) Listening to Cds declined markedly from 72 percent in wave 1 to 60 percent by wave 4
Please indicate which if any of the following activities you have done in the past month (traditional media)
94 93
92
88
82 81 80 79 79 79
77 77
72 72 70 70 Wave 4 (September 2009)
68 68 68 68 65 66 Wave 3 (March 2010)
63
60 Wave 2 (September 2010)
53 Wave 1 (March 2011) 50 50
48
Wat
ched
TV
(n
ot
on
line)
34 34
R
ead
pri
nt
30
27 27 27 n
ewsp
aper
s26
21 19
18 18 18 16
15 15 14
List
ened
to
rad
io
Rea
d b
oo
k
R
ead
pri
nt
mag
azin
e
List
ened
to
CD
W
atch
ed D
VD
B
lu-R
ay
P
laye
d c
on
sole
vi
deo
gam
e
Vis
ited
cin
ema
M
usi
c ev
ents
p
erfo
rman
ces
Sp
ort
ing
eve
nts
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
ldquoSome say that television has gone through a renaissance over the past 18 months But it never went away in its various forms (linear catch-up and on-demand) television has remained one of the most powerful media in terms of impact reach and the average number of hours people spend watching itrdquo Guy di Piazza Media analyst KPMG
there has been a small decline in demand and spend on popular pastimes like attending sporting and music events or visits to the cinema since our surveys began in September 2009 the time of year (March 2011) might be the most probable cause for this dip in attendance at music
concerts while the decline in cinema visits (down from 27 percent in wave 3 to 21 percent in wave 4) is possibly a reflection on less popular releases by film studios in recent times
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
online or offline
Online and offline media currently serve distinct purposes
the overall picture is of a burgeoning mixed ecology as consumers grow accustomed to switching seamlessly between online and offline media for their entertainment needs there is for now a coexistence between the two that appears to satisfy most people
Looking ahead the migration to online media will continue and media companies will face a delicate balancing act Media companiesrsquo revenues are higher per consumer of traditional content than per consumer of online content if companies are to maintain their margins they will need to rewrite operational and cost models that are geared currently towards traditional content
it is difficult however to deny an overwhelming preference among consumers for the feel and tangibility of physical offline content among respondents who said they prefer to consume their media offline 83 percent said they preferred to watch tV and films on a tV than on a computer 73 percent said they prefer to read something physical than on screen However as in the previous waves of research a preference for online media is predominantly due to the availability and convenience of lsquoon-the-move contentrsquo
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011 You said that you prefer to consume media OFFLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
83 79 80 76 73
86 8985
57 60 56
49
20 13
19 13 15 14 14 14 11 5 8 8
I would rather watch I would rather read I prefer the I donrsquot have a fast I donrsquot want to make I donrsquot trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media
online media an enjoyable experience
You said that you prefer to consume media ONLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
93 89 91
83 80
72 73 73
63 57
65 63 62 63 64
54 56 61
51 46
28 31 33
14 10
14 14 16
I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that Irsquom wider choice of environmentally content I want at
I want free online itrsquos more convenient interested in content online friendly a better price
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
introduction Smartphones and tablets reel in new consumers while TV continues to enjoy biggest audience
david elms Head of Media
Every six months KPMG takes the pulse of the media industry surveying users of new and traditional media
the surveys conducted on KPMGrsquos behalf by research and consulting organisation YouGov reveal shifts in consumer appetite and consumption that can translate into powerful indicators for media providers when setting future strategy and direction
our fourth Media and entertainment Barometer highlights a sharp increase in the uptake and monetisation of smartphones tablets and e-readers to the month ending 31 March 2011
Smartphone ownership is up by one-third while tablets new to the UK market in July 2010 have seen their customer share more than double Users happily pay for apps with tablets currently getting the larger proportion of their spend the old favourite television continues to be the
most popular source of entertainment at a time when global events have dominated the news agenda However certain other traditional media activities such as reading print newspapers and listening to the radio continue to decline in popularity
Four-fifths (79 percent) of respondents engaged in new media activities while 99 percent participated in traditional media activities ndash both statistics are consistent with wave 3 of the research
in new media trends mostly continue on an upward trajectory in areas such as social networking and eBooks although online media appeals predominantly to the younger age groups (92 percent of 16 to 24 year-olds participate in new media activity) it now extends to 69 percent of the over-55s too in fact one-third of this older age group engages in social networking and blogging For media companies this
survey indicates that there is a fine line to tread between protecting their stables of traditional media activities while branching out into digital opportunities
there remains a general reluctance among consumers to acquire paid-for content online However the important exceptions are online access and online content on the move Smartphones and tablets are paving the way for media companies that seek to develop their new media business models
By keeping track of consumer habits on a six-monthly basis KPMG will alert media providers to shifting patterns of consumer demand spend and consumption as they happen
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about this Survey
all figures unless stated otherwise are from YouGov Plc research was conducted at six-monthly intervals
- Wave 1 mdash 11 - 14 September 2009
- Wave 2 mdash 15 - 18 March 2010
- Wave 3 mdash 14 - 21 September 2010
- Wave 4 mdash 31 March - 5 april 2011
the surveys sampled people aged 16 or over in the UK the number of respondents to YouGovrsquos online panel varies in each wave of research
- Wave 1 mdash 1037
- Wave 2 mdash 1063
- Wave 3 mdash 2241
- Wave 4 mdash 2103
YouGov asks participants about their preferences and consumption habits across all types of media including publishing broadcast music and gaming in the prior month their responses inform our analysis
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
trend for smartphones and tablets surges upwards
Increased spending on smartphones and tablets indicates growing consumer demand for lsquoon the moversquo media
People cannot get enough of smartphones and tablets in the UK despite being a relatively new introduction to the market smartphone ownership is growing strongly up one-third from wave 3 to 36 percent in wave 4 Meanwhile tablet ownership has more than doubled in the past six months
Smartphones are especially popular among younger consumers mdash more than half (54 percent) of 18-24 year-olds choose smartphones three-quarters (74 percent) use their smartphones to surf the net and to read emails while 61 percent use it for social media one in eight (12 percent) users has read an eBook on the device
Whatrsquos more in the past six months consumer spend on smartphones and notably tablets has increased People now spend close to pound900 per month on applications (apps) for their tablets and near to pound600 on apps for their smartphones in the prior month over 60 percent of tablet owners paid to access online content considerably more than the 24 percent who paid to access content on their smartphones
ldquothe bright spot in the media industry is the rise of media on the move via tablets and smartphonesrdquo david elms Head of Media KPMG
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Spend on apps for smartphones continues
Almost three-quarters (74 percent) downloaded apps on their smartphones in the past 12 months mdash however 42 percent only downloaded free apps up from 39 percent in wave 3Those paying for apps spent on average pound565 in the month to 31 March 2011 up slightly from pound530 in wave 3
apple and BlackBerry continue to lead the smartphone market although there is increasing pressure from other manufacturers notably HtC Men at 40 percent are more likely to own a smartphone than women (32 percent) However women smartphone users are nearly twice as likely to own a BlackBerry as men
For which if any of the following activities have you used your smartphone
97 96
86 84
80 76
74 74
62 6158 58
Sen
din
g t
ext
mes
sage
s53 53
50 51 Ta
kin
g p
ho
tos
Wave 4 Wave 3
emai
ling
ph
oto
s43
Su
rfin
g t
he
32 in
tern
et28 28
25 25 26 22
Rea
din
g e
mai
ls21 18 15
14 14 13 12 11 11
9 9 8 S
oci
al m
edia
7 6 4 3
Em
ail amp
inst
ant
mes
sag
ing
List
enin
g t
o m
usi
c
Pla
yin
gd
own
load
ing
fr
ee g
ames
Rea
din
g d
ocu
men
ts
Wat
chin
g T
Vv
ideo
clip
s
List
enin
g t
o t
he
rad
io
Paid
for
gam
es
Pu
rch
asin
g it
ems
Rea
din
g n
ewsp
aper
s
Dow
nlo
adin
g
pai
d fo
r m
usi
c
Rea
din
g e
Bo
oks
Dow
nlo
adin
g f
ree
mu
sic
Ed
itin
g d
ocu
men
ts
Ord
erin
g t
akea
way
On
line
gam
blin
g
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Unsurprisingly given its dominance in the market applersquos app Store accounted for the majority (73) of paid apps this is largely because it offers a wider selection of apps than its competitors as well as ease of use and a simple payment mechanism Meanwhile just 7 percent chose Google app store and 6 percent opted for Blackberry app World
Furthermore 24 percent of consumers paid to access content using their smartphones
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tablets take off
Despite the relative novelty of the tablet mdash Applersquos iPad was only launched in the UK in July 2010 mdash its popularity continues Ownership of tablets more than doubled in the past six months up from two percent of respondents in wave 3 to five percent in wave 4
Consumers are embracing tablets for making content on the move more accessible via apps and for delivering services such as games music and video that they currently demand
as more apps become available more consumers are indulging in a variety of activities 74 percent use the tablet to surf the internet 66 percent to read emails and 52 percent to playdownload free games or to read eBooks Half use it to watch tVvideo clips and for social media
For which if any of the following activities have you used your tablet
74
66
52 52 50 50 49
48 47
Su
rfin
g t
he
inte
rnet
44 41 41
38 36 Wave 4 Wave 3
35 R
ead
ing
em
ails
34 31
28 27 Pl
ayin
g amp
dow
nloa
ding
25 25
24 23 24 fr
ee g
ames
22
19 19
16 15 16 R
ead
ing
eB
oo
ks10 10
7
Wat
chin
g6
T
VV
ideo
clip
s3
0
So
cial
med
ia
E
mai
lin
stan
tm
essa
gin
g
Play
ing
amp d
ownl
oadi
ng
pai
d fo
r ga
mes
Rea
din
g d
ocu
men
ts
List
enin
g t
o m
usi
c
Pu
rch
asin
g it
ems
Rea
ding
new
spap
ers
List
enin
g to
the
rad
io
Ed
itin
g d
ocu
men
ts
D
own
load
ing
free
mu
sic
Dow
nlo
adin
gp
aid
for
mu
sic
Ord
erin
g t
akea
way
On
line
gam
blin
g
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
apple continues to be the most popular tablet on the market mdash increasing market share by 12 percentage points to 57 percent between waves 3 and 4 However it is anticipated that Samsung HP dell and archos (which all saw declining market share in the fourth wave) will ignite price competition by introducing more affordable hardware
Four-fifths of tablet-owners downloaded apps in the month to March 31 2011 of which 29 percent were free 6 percent paid and 45 percent a combination of both the apple app Store continues to be the main source of paid apps mdash 93 percent visited the store to download paid apps to their tablets
74 percent of smartphone owners downloaded apps in the same period of which 42 percent were free one percent paid for and 31 percent a combination of both
almost three-quarters (74 percent) of tablet owners also own a smartphone these dual owners are interestingly more inclined to spend on apps for tablets (pound887 in the month to March 31 2010) than on apps for smartphones (pound565) they are also more willing to pay for content on tablets (62 percent paid for access) than on smartphones (24 percent) this is inevitably due to the size of the tablet and its superior video quality and screen that make it
preferable for viewing books newspapers films and tV programmes than on the smartphone as new content providers such as Sky news Channel 4 and itV come on board with video services we anticipate that the tabletrsquos popularity will grow further
Consumers in wave 4 paid to access games (32 percent) eBooks (21 percent) and music (20 percent) on the tablet the survey findings clearly point to a continued rise in the popularity of smartphones and particularly tablets this will continue to drive expenditure through the internet
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Whatrsquos going up in new media
ldquothere is uncertainty about how fast online markets will develop However high awareness levels indicate latent demand with aspiring consumers buying smart technology and paying for online apps and online media the catalyst for growth is likely to be the introduction of lower-priced tablets and smartphones More affordable online media services may bring on the tipping point that turns innovative services into mass mediardquo david elms Head of Media KPMG
Our media barometer provides a snapshot of new media preferences and finds out where consumers are spending their money
eBooks the alternative paperback
the increasing availability of tablets and e-readers such as the iPad and the Kindle is turning readers to digital content
Since wave 1 of our research in September 2009 consumers of electronic books have almost doubled For users who prefer the look and feel of traditional content e-readers offer an accessible and portable format with a page-turning rather than scrolling experience that is not possible on a PC screen
Users spend more on eBooks (pound4) per month than on online games (pound2) or streamed tV (pound1) only downloaded music competes for fractionally more disposable income (pound5)
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Social networking for all
Social networking and blogging remain the most popular online activity Half of all respondents participate including one third of the over-55s while women are more likely to use social networking blogging sites than men
Gaming now a relatively mature online industry may have suffered as a consequence it has steadily declined in popularity from 29 percent in wave 1 to 21 percent by wave 4 as it competes for user time However gaming (along with social networking) still accounts for the greatest amount of time (12 hours) spent online
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Please indicate which if any of the following activities you have done in the past month (new media)
50 50 49
47
40 Wave 4 (March 2011)
37 36 Wave 3 (September 2010)
32 Wave 2 (March 2010)
29 Wave 1 (September 2009) 27
S
oci
al n
etw
ork
ing
b
log
gin
g s
ites
24 24
22 22 22 22 21 21 21
19 18
17 17 17 O
nlin
e ne
ws
port
als
16 16 16 16
15 15 15 n
ewsp
aper
s14 14
13 13 12
8
U
sed
vid
eo o
n6
4 4 d
eman
d fo
r TV
Dow
nlo
aded
mu
sic
On
line
gam
es
Str
eam
ed m
usi
c S
trea
med
on
line
TV p
rog
ram
mes
On
line
mag
azin
es
Str
eam
ed r
adio
Rea
d d
igit
al b
oo
ks
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Streaming ndash as long as itrsquos free
For the first time KPMG tested respondentsrsquo awareness of streamed TV services and found it to be very high
the top seven providers achieved awareness of between 39 percent and 90 percent
Free-view tV services such as BBC iPlayer (acknowledged by 90 percent of respondents) and itV Player (74 percent) which are heavily cross-promoted by broadcasters are the most well-known Conversion rates are also high BBC iPlayer is used by just under two-thirds (63 percent) of those respondents who have heard of it
However awareness does not always convert into usage especially for paid services Half of our respondents had heard of Sky Player but less than 1 in 10 of these (8 percent) use it Conversion rates for other paid streaming services are even lower Looking ahead media providers might respond to consumersrsquo appetite for streaming by offering single tV programmes or mini-daily or weekly subscriptions without long-term tie-ins
among the younger generation awareness of itV Player Channel 4rsquos 4od and Lovefilm is higher than among older counterparts while BBC iPlayerrsquos audience remains consistent irrespective of usersrsquo age
awareness of streaming is much higher among smartphone users than standard handset owners People who own smartphones tend to be tech savvy they know what streaming services are available and are more inclined to search for data services online
BBC iPlayer 90
ITV Player 74
LoveFilm 58
BT Vision 55
Sky Player 50
4oD 48
Sky Anytime 39
Demand 5 25
TalkTalk TV 15
Apple TV 14
Google TV 14
Seesaw 9 Wave 4 (March 2011)
Blinkbox 5
Other 1
None of these 6
Which if any of the following online streaming services have you heard of
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tV resilient to smart invasion
TV continues to be a top pastime but other traditional media activities are losing fans
the survey finds that watching tV offline remains the most popular form of consuming media in wave four 92 percent of people watched tV barely changing on the previous two waves
However the overall consumption of traditional media is declining and the inexorable migration to online media continues
Certain traditional media activities fail to find favour and attract less disposable income than in the past Going down in popularity are print newspapers (from 81 percent in wave 1 to 77 percent by wave 4) radio (from 82 percent to 77 percent) and playing consolevideo games (from 34 percent to 27 percent) Listening to Cds declined markedly from 72 percent in wave 1 to 60 percent by wave 4
Please indicate which if any of the following activities you have done in the past month (traditional media)
94 93
92
88
82 81 80 79 79 79
77 77
72 72 70 70 Wave 4 (September 2009)
68 68 68 68 65 66 Wave 3 (March 2010)
63
60 Wave 2 (September 2010)
53 Wave 1 (March 2011) 50 50
48
Wat
ched
TV
(n
ot
on
line)
34 34
R
ead
pri
nt
30
27 27 27 n
ewsp
aper
s26
21 19
18 18 18 16
15 15 14
List
ened
to
rad
io
Rea
d b
oo
k
R
ead
pri
nt
mag
azin
e
List
ened
to
CD
W
atch
ed D
VD
B
lu-R
ay
P
laye
d c
on
sole
vi
deo
gam
e
Vis
ited
cin
ema
M
usi
c ev
ents
p
erfo
rman
ces
Sp
ort
ing
eve
nts
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
ldquoSome say that television has gone through a renaissance over the past 18 months But it never went away in its various forms (linear catch-up and on-demand) television has remained one of the most powerful media in terms of impact reach and the average number of hours people spend watching itrdquo Guy di Piazza Media analyst KPMG
there has been a small decline in demand and spend on popular pastimes like attending sporting and music events or visits to the cinema since our surveys began in September 2009 the time of year (March 2011) might be the most probable cause for this dip in attendance at music
concerts while the decline in cinema visits (down from 27 percent in wave 3 to 21 percent in wave 4) is possibly a reflection on less popular releases by film studios in recent times
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
online or offline
Online and offline media currently serve distinct purposes
the overall picture is of a burgeoning mixed ecology as consumers grow accustomed to switching seamlessly between online and offline media for their entertainment needs there is for now a coexistence between the two that appears to satisfy most people
Looking ahead the migration to online media will continue and media companies will face a delicate balancing act Media companiesrsquo revenues are higher per consumer of traditional content than per consumer of online content if companies are to maintain their margins they will need to rewrite operational and cost models that are geared currently towards traditional content
it is difficult however to deny an overwhelming preference among consumers for the feel and tangibility of physical offline content among respondents who said they prefer to consume their media offline 83 percent said they preferred to watch tV and films on a tV than on a computer 73 percent said they prefer to read something physical than on screen However as in the previous waves of research a preference for online media is predominantly due to the availability and convenience of lsquoon-the-move contentrsquo
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011 You said that you prefer to consume media OFFLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
83 79 80 76 73
86 8985
57 60 56
49
20 13
19 13 15 14 14 14 11 5 8 8
I would rather watch I would rather read I prefer the I donrsquot have a fast I donrsquot want to make I donrsquot trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media
online media an enjoyable experience
You said that you prefer to consume media ONLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
93 89 91
83 80
72 73 73
63 57
65 63 62 63 64
54 56 61
51 46
28 31 33
14 10
14 14 16
I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that Irsquom wider choice of environmentally content I want at
I want free online itrsquos more convenient interested in content online friendly a better price
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about this Survey
all figures unless stated otherwise are from YouGov Plc research was conducted at six-monthly intervals
- Wave 1 mdash 11 - 14 September 2009
- Wave 2 mdash 15 - 18 March 2010
- Wave 3 mdash 14 - 21 September 2010
- Wave 4 mdash 31 March - 5 april 2011
the surveys sampled people aged 16 or over in the UK the number of respondents to YouGovrsquos online panel varies in each wave of research
- Wave 1 mdash 1037
- Wave 2 mdash 1063
- Wave 3 mdash 2241
- Wave 4 mdash 2103
YouGov asks participants about their preferences and consumption habits across all types of media including publishing broadcast music and gaming in the prior month their responses inform our analysis
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
trend for smartphones and tablets surges upwards
Increased spending on smartphones and tablets indicates growing consumer demand for lsquoon the moversquo media
People cannot get enough of smartphones and tablets in the UK despite being a relatively new introduction to the market smartphone ownership is growing strongly up one-third from wave 3 to 36 percent in wave 4 Meanwhile tablet ownership has more than doubled in the past six months
Smartphones are especially popular among younger consumers mdash more than half (54 percent) of 18-24 year-olds choose smartphones three-quarters (74 percent) use their smartphones to surf the net and to read emails while 61 percent use it for social media one in eight (12 percent) users has read an eBook on the device
Whatrsquos more in the past six months consumer spend on smartphones and notably tablets has increased People now spend close to pound900 per month on applications (apps) for their tablets and near to pound600 on apps for their smartphones in the prior month over 60 percent of tablet owners paid to access online content considerably more than the 24 percent who paid to access content on their smartphones
ldquothe bright spot in the media industry is the rise of media on the move via tablets and smartphonesrdquo david elms Head of Media KPMG
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Spend on apps for smartphones continues
Almost three-quarters (74 percent) downloaded apps on their smartphones in the past 12 months mdash however 42 percent only downloaded free apps up from 39 percent in wave 3Those paying for apps spent on average pound565 in the month to 31 March 2011 up slightly from pound530 in wave 3
apple and BlackBerry continue to lead the smartphone market although there is increasing pressure from other manufacturers notably HtC Men at 40 percent are more likely to own a smartphone than women (32 percent) However women smartphone users are nearly twice as likely to own a BlackBerry as men
For which if any of the following activities have you used your smartphone
97 96
86 84
80 76
74 74
62 6158 58
Sen
din
g t
ext
mes
sage
s53 53
50 51 Ta
kin
g p
ho
tos
Wave 4 Wave 3
emai
ling
ph
oto
s43
Su
rfin
g t
he
32 in
tern
et28 28
25 25 26 22
Rea
din
g e
mai
ls21 18 15
14 14 13 12 11 11
9 9 8 S
oci
al m
edia
7 6 4 3
Em
ail amp
inst
ant
mes
sag
ing
List
enin
g t
o m
usi
c
Pla
yin
gd
own
load
ing
fr
ee g
ames
Rea
din
g d
ocu
men
ts
Wat
chin
g T
Vv
ideo
clip
s
List
enin
g t
o t
he
rad
io
Paid
for
gam
es
Pu
rch
asin
g it
ems
Rea
din
g n
ewsp
aper
s
Dow
nlo
adin
g
pai
d fo
r m
usi
c
Rea
din
g e
Bo
oks
Dow
nlo
adin
g f
ree
mu
sic
Ed
itin
g d
ocu
men
ts
Ord
erin
g t
akea
way
On
line
gam
blin
g
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Unsurprisingly given its dominance in the market applersquos app Store accounted for the majority (73) of paid apps this is largely because it offers a wider selection of apps than its competitors as well as ease of use and a simple payment mechanism Meanwhile just 7 percent chose Google app store and 6 percent opted for Blackberry app World
Furthermore 24 percent of consumers paid to access content using their smartphones
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tablets take off
Despite the relative novelty of the tablet mdash Applersquos iPad was only launched in the UK in July 2010 mdash its popularity continues Ownership of tablets more than doubled in the past six months up from two percent of respondents in wave 3 to five percent in wave 4
Consumers are embracing tablets for making content on the move more accessible via apps and for delivering services such as games music and video that they currently demand
as more apps become available more consumers are indulging in a variety of activities 74 percent use the tablet to surf the internet 66 percent to read emails and 52 percent to playdownload free games or to read eBooks Half use it to watch tVvideo clips and for social media
For which if any of the following activities have you used your tablet
74
66
52 52 50 50 49
48 47
Su
rfin
g t
he
inte
rnet
44 41 41
38 36 Wave 4 Wave 3
35 R
ead
ing
em
ails
34 31
28 27 Pl
ayin
g amp
dow
nloa
ding
25 25
24 23 24 fr
ee g
ames
22
19 19
16 15 16 R
ead
ing
eB
oo
ks10 10
7
Wat
chin
g6
T
VV
ideo
clip
s3
0
So
cial
med
ia
E
mai
lin
stan
tm
essa
gin
g
Play
ing
amp d
ownl
oadi
ng
pai
d fo
r ga
mes
Rea
din
g d
ocu
men
ts
List
enin
g t
o m
usi
c
Pu
rch
asin
g it
ems
Rea
ding
new
spap
ers
List
enin
g to
the
rad
io
Ed
itin
g d
ocu
men
ts
D
own
load
ing
free
mu
sic
Dow
nlo
adin
gp
aid
for
mu
sic
Ord
erin
g t
akea
way
On
line
gam
blin
g
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
apple continues to be the most popular tablet on the market mdash increasing market share by 12 percentage points to 57 percent between waves 3 and 4 However it is anticipated that Samsung HP dell and archos (which all saw declining market share in the fourth wave) will ignite price competition by introducing more affordable hardware
Four-fifths of tablet-owners downloaded apps in the month to March 31 2011 of which 29 percent were free 6 percent paid and 45 percent a combination of both the apple app Store continues to be the main source of paid apps mdash 93 percent visited the store to download paid apps to their tablets
74 percent of smartphone owners downloaded apps in the same period of which 42 percent were free one percent paid for and 31 percent a combination of both
almost three-quarters (74 percent) of tablet owners also own a smartphone these dual owners are interestingly more inclined to spend on apps for tablets (pound887 in the month to March 31 2010) than on apps for smartphones (pound565) they are also more willing to pay for content on tablets (62 percent paid for access) than on smartphones (24 percent) this is inevitably due to the size of the tablet and its superior video quality and screen that make it
preferable for viewing books newspapers films and tV programmes than on the smartphone as new content providers such as Sky news Channel 4 and itV come on board with video services we anticipate that the tabletrsquos popularity will grow further
Consumers in wave 4 paid to access games (32 percent) eBooks (21 percent) and music (20 percent) on the tablet the survey findings clearly point to a continued rise in the popularity of smartphones and particularly tablets this will continue to drive expenditure through the internet
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Whatrsquos going up in new media
ldquothere is uncertainty about how fast online markets will develop However high awareness levels indicate latent demand with aspiring consumers buying smart technology and paying for online apps and online media the catalyst for growth is likely to be the introduction of lower-priced tablets and smartphones More affordable online media services may bring on the tipping point that turns innovative services into mass mediardquo david elms Head of Media KPMG
Our media barometer provides a snapshot of new media preferences and finds out where consumers are spending their money
eBooks the alternative paperback
the increasing availability of tablets and e-readers such as the iPad and the Kindle is turning readers to digital content
Since wave 1 of our research in September 2009 consumers of electronic books have almost doubled For users who prefer the look and feel of traditional content e-readers offer an accessible and portable format with a page-turning rather than scrolling experience that is not possible on a PC screen
Users spend more on eBooks (pound4) per month than on online games (pound2) or streamed tV (pound1) only downloaded music competes for fractionally more disposable income (pound5)
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Social networking for all
Social networking and blogging remain the most popular online activity Half of all respondents participate including one third of the over-55s while women are more likely to use social networking blogging sites than men
Gaming now a relatively mature online industry may have suffered as a consequence it has steadily declined in popularity from 29 percent in wave 1 to 21 percent by wave 4 as it competes for user time However gaming (along with social networking) still accounts for the greatest amount of time (12 hours) spent online
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Please indicate which if any of the following activities you have done in the past month (new media)
50 50 49
47
40 Wave 4 (March 2011)
37 36 Wave 3 (September 2010)
32 Wave 2 (March 2010)
29 Wave 1 (September 2009) 27
S
oci
al n
etw
ork
ing
b
log
gin
g s
ites
24 24
22 22 22 22 21 21 21
19 18
17 17 17 O
nlin
e ne
ws
port
als
16 16 16 16
15 15 15 n
ewsp
aper
s14 14
13 13 12
8
U
sed
vid
eo o
n6
4 4 d
eman
d fo
r TV
Dow
nlo
aded
mu
sic
On
line
gam
es
Str
eam
ed m
usi
c S
trea
med
on
line
TV p
rog
ram
mes
On
line
mag
azin
es
Str
eam
ed r
adio
Rea
d d
igit
al b
oo
ks
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Streaming ndash as long as itrsquos free
For the first time KPMG tested respondentsrsquo awareness of streamed TV services and found it to be very high
the top seven providers achieved awareness of between 39 percent and 90 percent
Free-view tV services such as BBC iPlayer (acknowledged by 90 percent of respondents) and itV Player (74 percent) which are heavily cross-promoted by broadcasters are the most well-known Conversion rates are also high BBC iPlayer is used by just under two-thirds (63 percent) of those respondents who have heard of it
However awareness does not always convert into usage especially for paid services Half of our respondents had heard of Sky Player but less than 1 in 10 of these (8 percent) use it Conversion rates for other paid streaming services are even lower Looking ahead media providers might respond to consumersrsquo appetite for streaming by offering single tV programmes or mini-daily or weekly subscriptions without long-term tie-ins
among the younger generation awareness of itV Player Channel 4rsquos 4od and Lovefilm is higher than among older counterparts while BBC iPlayerrsquos audience remains consistent irrespective of usersrsquo age
awareness of streaming is much higher among smartphone users than standard handset owners People who own smartphones tend to be tech savvy they know what streaming services are available and are more inclined to search for data services online
BBC iPlayer 90
ITV Player 74
LoveFilm 58
BT Vision 55
Sky Player 50
4oD 48
Sky Anytime 39
Demand 5 25
TalkTalk TV 15
Apple TV 14
Google TV 14
Seesaw 9 Wave 4 (March 2011)
Blinkbox 5
Other 1
None of these 6
Which if any of the following online streaming services have you heard of
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tV resilient to smart invasion
TV continues to be a top pastime but other traditional media activities are losing fans
the survey finds that watching tV offline remains the most popular form of consuming media in wave four 92 percent of people watched tV barely changing on the previous two waves
However the overall consumption of traditional media is declining and the inexorable migration to online media continues
Certain traditional media activities fail to find favour and attract less disposable income than in the past Going down in popularity are print newspapers (from 81 percent in wave 1 to 77 percent by wave 4) radio (from 82 percent to 77 percent) and playing consolevideo games (from 34 percent to 27 percent) Listening to Cds declined markedly from 72 percent in wave 1 to 60 percent by wave 4
Please indicate which if any of the following activities you have done in the past month (traditional media)
94 93
92
88
82 81 80 79 79 79
77 77
72 72 70 70 Wave 4 (September 2009)
68 68 68 68 65 66 Wave 3 (March 2010)
63
60 Wave 2 (September 2010)
53 Wave 1 (March 2011) 50 50
48
Wat
ched
TV
(n
ot
on
line)
34 34
R
ead
pri
nt
30
27 27 27 n
ewsp
aper
s26
21 19
18 18 18 16
15 15 14
List
ened
to
rad
io
Rea
d b
oo
k
R
ead
pri
nt
mag
azin
e
List
ened
to
CD
W
atch
ed D
VD
B
lu-R
ay
P
laye
d c
on
sole
vi
deo
gam
e
Vis
ited
cin
ema
M
usi
c ev
ents
p
erfo
rman
ces
Sp
ort
ing
eve
nts
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
ldquoSome say that television has gone through a renaissance over the past 18 months But it never went away in its various forms (linear catch-up and on-demand) television has remained one of the most powerful media in terms of impact reach and the average number of hours people spend watching itrdquo Guy di Piazza Media analyst KPMG
there has been a small decline in demand and spend on popular pastimes like attending sporting and music events or visits to the cinema since our surveys began in September 2009 the time of year (March 2011) might be the most probable cause for this dip in attendance at music
concerts while the decline in cinema visits (down from 27 percent in wave 3 to 21 percent in wave 4) is possibly a reflection on less popular releases by film studios in recent times
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
online or offline
Online and offline media currently serve distinct purposes
the overall picture is of a burgeoning mixed ecology as consumers grow accustomed to switching seamlessly between online and offline media for their entertainment needs there is for now a coexistence between the two that appears to satisfy most people
Looking ahead the migration to online media will continue and media companies will face a delicate balancing act Media companiesrsquo revenues are higher per consumer of traditional content than per consumer of online content if companies are to maintain their margins they will need to rewrite operational and cost models that are geared currently towards traditional content
it is difficult however to deny an overwhelming preference among consumers for the feel and tangibility of physical offline content among respondents who said they prefer to consume their media offline 83 percent said they preferred to watch tV and films on a tV than on a computer 73 percent said they prefer to read something physical than on screen However as in the previous waves of research a preference for online media is predominantly due to the availability and convenience of lsquoon-the-move contentrsquo
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011 You said that you prefer to consume media OFFLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
83 79 80 76 73
86 8985
57 60 56
49
20 13
19 13 15 14 14 14 11 5 8 8
I would rather watch I would rather read I prefer the I donrsquot have a fast I donrsquot want to make I donrsquot trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media
online media an enjoyable experience
You said that you prefer to consume media ONLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
93 89 91
83 80
72 73 73
63 57
65 63 62 63 64
54 56 61
51 46
28 31 33
14 10
14 14 16
I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that Irsquom wider choice of environmentally content I want at
I want free online itrsquos more convenient interested in content online friendly a better price
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
trend for smartphones and tablets surges upwards
Increased spending on smartphones and tablets indicates growing consumer demand for lsquoon the moversquo media
People cannot get enough of smartphones and tablets in the UK despite being a relatively new introduction to the market smartphone ownership is growing strongly up one-third from wave 3 to 36 percent in wave 4 Meanwhile tablet ownership has more than doubled in the past six months
Smartphones are especially popular among younger consumers mdash more than half (54 percent) of 18-24 year-olds choose smartphones three-quarters (74 percent) use their smartphones to surf the net and to read emails while 61 percent use it for social media one in eight (12 percent) users has read an eBook on the device
Whatrsquos more in the past six months consumer spend on smartphones and notably tablets has increased People now spend close to pound900 per month on applications (apps) for their tablets and near to pound600 on apps for their smartphones in the prior month over 60 percent of tablet owners paid to access online content considerably more than the 24 percent who paid to access content on their smartphones
ldquothe bright spot in the media industry is the rise of media on the move via tablets and smartphonesrdquo david elms Head of Media KPMG
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Spend on apps for smartphones continues
Almost three-quarters (74 percent) downloaded apps on their smartphones in the past 12 months mdash however 42 percent only downloaded free apps up from 39 percent in wave 3Those paying for apps spent on average pound565 in the month to 31 March 2011 up slightly from pound530 in wave 3
apple and BlackBerry continue to lead the smartphone market although there is increasing pressure from other manufacturers notably HtC Men at 40 percent are more likely to own a smartphone than women (32 percent) However women smartphone users are nearly twice as likely to own a BlackBerry as men
For which if any of the following activities have you used your smartphone
97 96
86 84
80 76
74 74
62 6158 58
Sen
din
g t
ext
mes
sage
s53 53
50 51 Ta
kin
g p
ho
tos
Wave 4 Wave 3
emai
ling
ph
oto
s43
Su
rfin
g t
he
32 in
tern
et28 28
25 25 26 22
Rea
din
g e
mai
ls21 18 15
14 14 13 12 11 11
9 9 8 S
oci
al m
edia
7 6 4 3
Em
ail amp
inst
ant
mes
sag
ing
List
enin
g t
o m
usi
c
Pla
yin
gd
own
load
ing
fr
ee g
ames
Rea
din
g d
ocu
men
ts
Wat
chin
g T
Vv
ideo
clip
s
List
enin
g t
o t
he
rad
io
Paid
for
gam
es
Pu
rch
asin
g it
ems
Rea
din
g n
ewsp
aper
s
Dow
nlo
adin
g
pai
d fo
r m
usi
c
Rea
din
g e
Bo
oks
Dow
nlo
adin
g f
ree
mu
sic
Ed
itin
g d
ocu
men
ts
Ord
erin
g t
akea
way
On
line
gam
blin
g
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Unsurprisingly given its dominance in the market applersquos app Store accounted for the majority (73) of paid apps this is largely because it offers a wider selection of apps than its competitors as well as ease of use and a simple payment mechanism Meanwhile just 7 percent chose Google app store and 6 percent opted for Blackberry app World
Furthermore 24 percent of consumers paid to access content using their smartphones
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tablets take off
Despite the relative novelty of the tablet mdash Applersquos iPad was only launched in the UK in July 2010 mdash its popularity continues Ownership of tablets more than doubled in the past six months up from two percent of respondents in wave 3 to five percent in wave 4
Consumers are embracing tablets for making content on the move more accessible via apps and for delivering services such as games music and video that they currently demand
as more apps become available more consumers are indulging in a variety of activities 74 percent use the tablet to surf the internet 66 percent to read emails and 52 percent to playdownload free games or to read eBooks Half use it to watch tVvideo clips and for social media
For which if any of the following activities have you used your tablet
74
66
52 52 50 50 49
48 47
Su
rfin
g t
he
inte
rnet
44 41 41
38 36 Wave 4 Wave 3
35 R
ead
ing
em
ails
34 31
28 27 Pl
ayin
g amp
dow
nloa
ding
25 25
24 23 24 fr
ee g
ames
22
19 19
16 15 16 R
ead
ing
eB
oo
ks10 10
7
Wat
chin
g6
T
VV
ideo
clip
s3
0
So
cial
med
ia
E
mai
lin
stan
tm
essa
gin
g
Play
ing
amp d
ownl
oadi
ng
pai
d fo
r ga
mes
Rea
din
g d
ocu
men
ts
List
enin
g t
o m
usi
c
Pu
rch
asin
g it
ems
Rea
ding
new
spap
ers
List
enin
g to
the
rad
io
Ed
itin
g d
ocu
men
ts
D
own
load
ing
free
mu
sic
Dow
nlo
adin
gp
aid
for
mu
sic
Ord
erin
g t
akea
way
On
line
gam
blin
g
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
apple continues to be the most popular tablet on the market mdash increasing market share by 12 percentage points to 57 percent between waves 3 and 4 However it is anticipated that Samsung HP dell and archos (which all saw declining market share in the fourth wave) will ignite price competition by introducing more affordable hardware
Four-fifths of tablet-owners downloaded apps in the month to March 31 2011 of which 29 percent were free 6 percent paid and 45 percent a combination of both the apple app Store continues to be the main source of paid apps mdash 93 percent visited the store to download paid apps to their tablets
74 percent of smartphone owners downloaded apps in the same period of which 42 percent were free one percent paid for and 31 percent a combination of both
almost three-quarters (74 percent) of tablet owners also own a smartphone these dual owners are interestingly more inclined to spend on apps for tablets (pound887 in the month to March 31 2010) than on apps for smartphones (pound565) they are also more willing to pay for content on tablets (62 percent paid for access) than on smartphones (24 percent) this is inevitably due to the size of the tablet and its superior video quality and screen that make it
preferable for viewing books newspapers films and tV programmes than on the smartphone as new content providers such as Sky news Channel 4 and itV come on board with video services we anticipate that the tabletrsquos popularity will grow further
Consumers in wave 4 paid to access games (32 percent) eBooks (21 percent) and music (20 percent) on the tablet the survey findings clearly point to a continued rise in the popularity of smartphones and particularly tablets this will continue to drive expenditure through the internet
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Whatrsquos going up in new media
ldquothere is uncertainty about how fast online markets will develop However high awareness levels indicate latent demand with aspiring consumers buying smart technology and paying for online apps and online media the catalyst for growth is likely to be the introduction of lower-priced tablets and smartphones More affordable online media services may bring on the tipping point that turns innovative services into mass mediardquo david elms Head of Media KPMG
Our media barometer provides a snapshot of new media preferences and finds out where consumers are spending their money
eBooks the alternative paperback
the increasing availability of tablets and e-readers such as the iPad and the Kindle is turning readers to digital content
Since wave 1 of our research in September 2009 consumers of electronic books have almost doubled For users who prefer the look and feel of traditional content e-readers offer an accessible and portable format with a page-turning rather than scrolling experience that is not possible on a PC screen
Users spend more on eBooks (pound4) per month than on online games (pound2) or streamed tV (pound1) only downloaded music competes for fractionally more disposable income (pound5)
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Social networking for all
Social networking and blogging remain the most popular online activity Half of all respondents participate including one third of the over-55s while women are more likely to use social networking blogging sites than men
Gaming now a relatively mature online industry may have suffered as a consequence it has steadily declined in popularity from 29 percent in wave 1 to 21 percent by wave 4 as it competes for user time However gaming (along with social networking) still accounts for the greatest amount of time (12 hours) spent online
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Please indicate which if any of the following activities you have done in the past month (new media)
50 50 49
47
40 Wave 4 (March 2011)
37 36 Wave 3 (September 2010)
32 Wave 2 (March 2010)
29 Wave 1 (September 2009) 27
S
oci
al n
etw
ork
ing
b
log
gin
g s
ites
24 24
22 22 22 22 21 21 21
19 18
17 17 17 O
nlin
e ne
ws
port
als
16 16 16 16
15 15 15 n
ewsp
aper
s14 14
13 13 12
8
U
sed
vid
eo o
n6
4 4 d
eman
d fo
r TV
Dow
nlo
aded
mu
sic
On
line
gam
es
Str
eam
ed m
usi
c S
trea
med
on
line
TV p
rog
ram
mes
On
line
mag
azin
es
Str
eam
ed r
adio
Rea
d d
igit
al b
oo
ks
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Streaming ndash as long as itrsquos free
For the first time KPMG tested respondentsrsquo awareness of streamed TV services and found it to be very high
the top seven providers achieved awareness of between 39 percent and 90 percent
Free-view tV services such as BBC iPlayer (acknowledged by 90 percent of respondents) and itV Player (74 percent) which are heavily cross-promoted by broadcasters are the most well-known Conversion rates are also high BBC iPlayer is used by just under two-thirds (63 percent) of those respondents who have heard of it
However awareness does not always convert into usage especially for paid services Half of our respondents had heard of Sky Player but less than 1 in 10 of these (8 percent) use it Conversion rates for other paid streaming services are even lower Looking ahead media providers might respond to consumersrsquo appetite for streaming by offering single tV programmes or mini-daily or weekly subscriptions without long-term tie-ins
among the younger generation awareness of itV Player Channel 4rsquos 4od and Lovefilm is higher than among older counterparts while BBC iPlayerrsquos audience remains consistent irrespective of usersrsquo age
awareness of streaming is much higher among smartphone users than standard handset owners People who own smartphones tend to be tech savvy they know what streaming services are available and are more inclined to search for data services online
BBC iPlayer 90
ITV Player 74
LoveFilm 58
BT Vision 55
Sky Player 50
4oD 48
Sky Anytime 39
Demand 5 25
TalkTalk TV 15
Apple TV 14
Google TV 14
Seesaw 9 Wave 4 (March 2011)
Blinkbox 5
Other 1
None of these 6
Which if any of the following online streaming services have you heard of
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tV resilient to smart invasion
TV continues to be a top pastime but other traditional media activities are losing fans
the survey finds that watching tV offline remains the most popular form of consuming media in wave four 92 percent of people watched tV barely changing on the previous two waves
However the overall consumption of traditional media is declining and the inexorable migration to online media continues
Certain traditional media activities fail to find favour and attract less disposable income than in the past Going down in popularity are print newspapers (from 81 percent in wave 1 to 77 percent by wave 4) radio (from 82 percent to 77 percent) and playing consolevideo games (from 34 percent to 27 percent) Listening to Cds declined markedly from 72 percent in wave 1 to 60 percent by wave 4
Please indicate which if any of the following activities you have done in the past month (traditional media)
94 93
92
88
82 81 80 79 79 79
77 77
72 72 70 70 Wave 4 (September 2009)
68 68 68 68 65 66 Wave 3 (March 2010)
63
60 Wave 2 (September 2010)
53 Wave 1 (March 2011) 50 50
48
Wat
ched
TV
(n
ot
on
line)
34 34
R
ead
pri
nt
30
27 27 27 n
ewsp
aper
s26
21 19
18 18 18 16
15 15 14
List
ened
to
rad
io
Rea
d b
oo
k
R
ead
pri
nt
mag
azin
e
List
ened
to
CD
W
atch
ed D
VD
B
lu-R
ay
P
laye
d c
on
sole
vi
deo
gam
e
Vis
ited
cin
ema
M
usi
c ev
ents
p
erfo
rman
ces
Sp
ort
ing
eve
nts
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
ldquoSome say that television has gone through a renaissance over the past 18 months But it never went away in its various forms (linear catch-up and on-demand) television has remained one of the most powerful media in terms of impact reach and the average number of hours people spend watching itrdquo Guy di Piazza Media analyst KPMG
there has been a small decline in demand and spend on popular pastimes like attending sporting and music events or visits to the cinema since our surveys began in September 2009 the time of year (March 2011) might be the most probable cause for this dip in attendance at music
concerts while the decline in cinema visits (down from 27 percent in wave 3 to 21 percent in wave 4) is possibly a reflection on less popular releases by film studios in recent times
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
online or offline
Online and offline media currently serve distinct purposes
the overall picture is of a burgeoning mixed ecology as consumers grow accustomed to switching seamlessly between online and offline media for their entertainment needs there is for now a coexistence between the two that appears to satisfy most people
Looking ahead the migration to online media will continue and media companies will face a delicate balancing act Media companiesrsquo revenues are higher per consumer of traditional content than per consumer of online content if companies are to maintain their margins they will need to rewrite operational and cost models that are geared currently towards traditional content
it is difficult however to deny an overwhelming preference among consumers for the feel and tangibility of physical offline content among respondents who said they prefer to consume their media offline 83 percent said they preferred to watch tV and films on a tV than on a computer 73 percent said they prefer to read something physical than on screen However as in the previous waves of research a preference for online media is predominantly due to the availability and convenience of lsquoon-the-move contentrsquo
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011 You said that you prefer to consume media OFFLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
83 79 80 76 73
86 8985
57 60 56
49
20 13
19 13 15 14 14 14 11 5 8 8
I would rather watch I would rather read I prefer the I donrsquot have a fast I donrsquot want to make I donrsquot trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media
online media an enjoyable experience
You said that you prefer to consume media ONLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
93 89 91
83 80
72 73 73
63 57
65 63 62 63 64
54 56 61
51 46
28 31 33
14 10
14 14 16
I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that Irsquom wider choice of environmentally content I want at
I want free online itrsquos more convenient interested in content online friendly a better price
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Spend on apps for smartphones continues
Almost three-quarters (74 percent) downloaded apps on their smartphones in the past 12 months mdash however 42 percent only downloaded free apps up from 39 percent in wave 3Those paying for apps spent on average pound565 in the month to 31 March 2011 up slightly from pound530 in wave 3
apple and BlackBerry continue to lead the smartphone market although there is increasing pressure from other manufacturers notably HtC Men at 40 percent are more likely to own a smartphone than women (32 percent) However women smartphone users are nearly twice as likely to own a BlackBerry as men
For which if any of the following activities have you used your smartphone
97 96
86 84
80 76
74 74
62 6158 58
Sen
din
g t
ext
mes
sage
s53 53
50 51 Ta
kin
g p
ho
tos
Wave 4 Wave 3
emai
ling
ph
oto
s43
Su
rfin
g t
he
32 in
tern
et28 28
25 25 26 22
Rea
din
g e
mai
ls21 18 15
14 14 13 12 11 11
9 9 8 S
oci
al m
edia
7 6 4 3
Em
ail amp
inst
ant
mes
sag
ing
List
enin
g t
o m
usi
c
Pla
yin
gd
own
load
ing
fr
ee g
ames
Rea
din
g d
ocu
men
ts
Wat
chin
g T
Vv
ideo
clip
s
List
enin
g t
o t
he
rad
io
Paid
for
gam
es
Pu
rch
asin
g it
ems
Rea
din
g n
ewsp
aper
s
Dow
nlo
adin
g
pai
d fo
r m
usi
c
Rea
din
g e
Bo
oks
Dow
nlo
adin
g f
ree
mu
sic
Ed
itin
g d
ocu
men
ts
Ord
erin
g t
akea
way
On
line
gam
blin
g
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Unsurprisingly given its dominance in the market applersquos app Store accounted for the majority (73) of paid apps this is largely because it offers a wider selection of apps than its competitors as well as ease of use and a simple payment mechanism Meanwhile just 7 percent chose Google app store and 6 percent opted for Blackberry app World
Furthermore 24 percent of consumers paid to access content using their smartphones
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tablets take off
Despite the relative novelty of the tablet mdash Applersquos iPad was only launched in the UK in July 2010 mdash its popularity continues Ownership of tablets more than doubled in the past six months up from two percent of respondents in wave 3 to five percent in wave 4
Consumers are embracing tablets for making content on the move more accessible via apps and for delivering services such as games music and video that they currently demand
as more apps become available more consumers are indulging in a variety of activities 74 percent use the tablet to surf the internet 66 percent to read emails and 52 percent to playdownload free games or to read eBooks Half use it to watch tVvideo clips and for social media
For which if any of the following activities have you used your tablet
74
66
52 52 50 50 49
48 47
Su
rfin
g t
he
inte
rnet
44 41 41
38 36 Wave 4 Wave 3
35 R
ead
ing
em
ails
34 31
28 27 Pl
ayin
g amp
dow
nloa
ding
25 25
24 23 24 fr
ee g
ames
22
19 19
16 15 16 R
ead
ing
eB
oo
ks10 10
7
Wat
chin
g6
T
VV
ideo
clip
s3
0
So
cial
med
ia
E
mai
lin
stan
tm
essa
gin
g
Play
ing
amp d
ownl
oadi
ng
pai
d fo
r ga
mes
Rea
din
g d
ocu
men
ts
List
enin
g t
o m
usi
c
Pu
rch
asin
g it
ems
Rea
ding
new
spap
ers
List
enin
g to
the
rad
io
Ed
itin
g d
ocu
men
ts
D
own
load
ing
free
mu
sic
Dow
nlo
adin
gp
aid
for
mu
sic
Ord
erin
g t
akea
way
On
line
gam
blin
g
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
apple continues to be the most popular tablet on the market mdash increasing market share by 12 percentage points to 57 percent between waves 3 and 4 However it is anticipated that Samsung HP dell and archos (which all saw declining market share in the fourth wave) will ignite price competition by introducing more affordable hardware
Four-fifths of tablet-owners downloaded apps in the month to March 31 2011 of which 29 percent were free 6 percent paid and 45 percent a combination of both the apple app Store continues to be the main source of paid apps mdash 93 percent visited the store to download paid apps to their tablets
74 percent of smartphone owners downloaded apps in the same period of which 42 percent were free one percent paid for and 31 percent a combination of both
almost three-quarters (74 percent) of tablet owners also own a smartphone these dual owners are interestingly more inclined to spend on apps for tablets (pound887 in the month to March 31 2010) than on apps for smartphones (pound565) they are also more willing to pay for content on tablets (62 percent paid for access) than on smartphones (24 percent) this is inevitably due to the size of the tablet and its superior video quality and screen that make it
preferable for viewing books newspapers films and tV programmes than on the smartphone as new content providers such as Sky news Channel 4 and itV come on board with video services we anticipate that the tabletrsquos popularity will grow further
Consumers in wave 4 paid to access games (32 percent) eBooks (21 percent) and music (20 percent) on the tablet the survey findings clearly point to a continued rise in the popularity of smartphones and particularly tablets this will continue to drive expenditure through the internet
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Whatrsquos going up in new media
ldquothere is uncertainty about how fast online markets will develop However high awareness levels indicate latent demand with aspiring consumers buying smart technology and paying for online apps and online media the catalyst for growth is likely to be the introduction of lower-priced tablets and smartphones More affordable online media services may bring on the tipping point that turns innovative services into mass mediardquo david elms Head of Media KPMG
Our media barometer provides a snapshot of new media preferences and finds out where consumers are spending their money
eBooks the alternative paperback
the increasing availability of tablets and e-readers such as the iPad and the Kindle is turning readers to digital content
Since wave 1 of our research in September 2009 consumers of electronic books have almost doubled For users who prefer the look and feel of traditional content e-readers offer an accessible and portable format with a page-turning rather than scrolling experience that is not possible on a PC screen
Users spend more on eBooks (pound4) per month than on online games (pound2) or streamed tV (pound1) only downloaded music competes for fractionally more disposable income (pound5)
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Social networking for all
Social networking and blogging remain the most popular online activity Half of all respondents participate including one third of the over-55s while women are more likely to use social networking blogging sites than men
Gaming now a relatively mature online industry may have suffered as a consequence it has steadily declined in popularity from 29 percent in wave 1 to 21 percent by wave 4 as it competes for user time However gaming (along with social networking) still accounts for the greatest amount of time (12 hours) spent online
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Please indicate which if any of the following activities you have done in the past month (new media)
50 50 49
47
40 Wave 4 (March 2011)
37 36 Wave 3 (September 2010)
32 Wave 2 (March 2010)
29 Wave 1 (September 2009) 27
S
oci
al n
etw
ork
ing
b
log
gin
g s
ites
24 24
22 22 22 22 21 21 21
19 18
17 17 17 O
nlin
e ne
ws
port
als
16 16 16 16
15 15 15 n
ewsp
aper
s14 14
13 13 12
8
U
sed
vid
eo o
n6
4 4 d
eman
d fo
r TV
Dow
nlo
aded
mu
sic
On
line
gam
es
Str
eam
ed m
usi
c S
trea
med
on
line
TV p
rog
ram
mes
On
line
mag
azin
es
Str
eam
ed r
adio
Rea
d d
igit
al b
oo
ks
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Streaming ndash as long as itrsquos free
For the first time KPMG tested respondentsrsquo awareness of streamed TV services and found it to be very high
the top seven providers achieved awareness of between 39 percent and 90 percent
Free-view tV services such as BBC iPlayer (acknowledged by 90 percent of respondents) and itV Player (74 percent) which are heavily cross-promoted by broadcasters are the most well-known Conversion rates are also high BBC iPlayer is used by just under two-thirds (63 percent) of those respondents who have heard of it
However awareness does not always convert into usage especially for paid services Half of our respondents had heard of Sky Player but less than 1 in 10 of these (8 percent) use it Conversion rates for other paid streaming services are even lower Looking ahead media providers might respond to consumersrsquo appetite for streaming by offering single tV programmes or mini-daily or weekly subscriptions without long-term tie-ins
among the younger generation awareness of itV Player Channel 4rsquos 4od and Lovefilm is higher than among older counterparts while BBC iPlayerrsquos audience remains consistent irrespective of usersrsquo age
awareness of streaming is much higher among smartphone users than standard handset owners People who own smartphones tend to be tech savvy they know what streaming services are available and are more inclined to search for data services online
BBC iPlayer 90
ITV Player 74
LoveFilm 58
BT Vision 55
Sky Player 50
4oD 48
Sky Anytime 39
Demand 5 25
TalkTalk TV 15
Apple TV 14
Google TV 14
Seesaw 9 Wave 4 (March 2011)
Blinkbox 5
Other 1
None of these 6
Which if any of the following online streaming services have you heard of
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tV resilient to smart invasion
TV continues to be a top pastime but other traditional media activities are losing fans
the survey finds that watching tV offline remains the most popular form of consuming media in wave four 92 percent of people watched tV barely changing on the previous two waves
However the overall consumption of traditional media is declining and the inexorable migration to online media continues
Certain traditional media activities fail to find favour and attract less disposable income than in the past Going down in popularity are print newspapers (from 81 percent in wave 1 to 77 percent by wave 4) radio (from 82 percent to 77 percent) and playing consolevideo games (from 34 percent to 27 percent) Listening to Cds declined markedly from 72 percent in wave 1 to 60 percent by wave 4
Please indicate which if any of the following activities you have done in the past month (traditional media)
94 93
92
88
82 81 80 79 79 79
77 77
72 72 70 70 Wave 4 (September 2009)
68 68 68 68 65 66 Wave 3 (March 2010)
63
60 Wave 2 (September 2010)
53 Wave 1 (March 2011) 50 50
48
Wat
ched
TV
(n
ot
on
line)
34 34
R
ead
pri
nt
30
27 27 27 n
ewsp
aper
s26
21 19
18 18 18 16
15 15 14
List
ened
to
rad
io
Rea
d b
oo
k
R
ead
pri
nt
mag
azin
e
List
ened
to
CD
W
atch
ed D
VD
B
lu-R
ay
P
laye
d c
on
sole
vi
deo
gam
e
Vis
ited
cin
ema
M
usi
c ev
ents
p
erfo
rman
ces
Sp
ort
ing
eve
nts
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
ldquoSome say that television has gone through a renaissance over the past 18 months But it never went away in its various forms (linear catch-up and on-demand) television has remained one of the most powerful media in terms of impact reach and the average number of hours people spend watching itrdquo Guy di Piazza Media analyst KPMG
there has been a small decline in demand and spend on popular pastimes like attending sporting and music events or visits to the cinema since our surveys began in September 2009 the time of year (March 2011) might be the most probable cause for this dip in attendance at music
concerts while the decline in cinema visits (down from 27 percent in wave 3 to 21 percent in wave 4) is possibly a reflection on less popular releases by film studios in recent times
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
online or offline
Online and offline media currently serve distinct purposes
the overall picture is of a burgeoning mixed ecology as consumers grow accustomed to switching seamlessly between online and offline media for their entertainment needs there is for now a coexistence between the two that appears to satisfy most people
Looking ahead the migration to online media will continue and media companies will face a delicate balancing act Media companiesrsquo revenues are higher per consumer of traditional content than per consumer of online content if companies are to maintain their margins they will need to rewrite operational and cost models that are geared currently towards traditional content
it is difficult however to deny an overwhelming preference among consumers for the feel and tangibility of physical offline content among respondents who said they prefer to consume their media offline 83 percent said they preferred to watch tV and films on a tV than on a computer 73 percent said they prefer to read something physical than on screen However as in the previous waves of research a preference for online media is predominantly due to the availability and convenience of lsquoon-the-move contentrsquo
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011 You said that you prefer to consume media OFFLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
83 79 80 76 73
86 8985
57 60 56
49
20 13
19 13 15 14 14 14 11 5 8 8
I would rather watch I would rather read I prefer the I donrsquot have a fast I donrsquot want to make I donrsquot trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media
online media an enjoyable experience
You said that you prefer to consume media ONLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
93 89 91
83 80
72 73 73
63 57
65 63 62 63 64
54 56 61
51 46
28 31 33
14 10
14 14 16
I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that Irsquom wider choice of environmentally content I want at
I want free online itrsquos more convenient interested in content online friendly a better price
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Unsurprisingly given its dominance in the market applersquos app Store accounted for the majority (73) of paid apps this is largely because it offers a wider selection of apps than its competitors as well as ease of use and a simple payment mechanism Meanwhile just 7 percent chose Google app store and 6 percent opted for Blackberry app World
Furthermore 24 percent of consumers paid to access content using their smartphones
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tablets take off
Despite the relative novelty of the tablet mdash Applersquos iPad was only launched in the UK in July 2010 mdash its popularity continues Ownership of tablets more than doubled in the past six months up from two percent of respondents in wave 3 to five percent in wave 4
Consumers are embracing tablets for making content on the move more accessible via apps and for delivering services such as games music and video that they currently demand
as more apps become available more consumers are indulging in a variety of activities 74 percent use the tablet to surf the internet 66 percent to read emails and 52 percent to playdownload free games or to read eBooks Half use it to watch tVvideo clips and for social media
For which if any of the following activities have you used your tablet
74
66
52 52 50 50 49
48 47
Su
rfin
g t
he
inte
rnet
44 41 41
38 36 Wave 4 Wave 3
35 R
ead
ing
em
ails
34 31
28 27 Pl
ayin
g amp
dow
nloa
ding
25 25
24 23 24 fr
ee g
ames
22
19 19
16 15 16 R
ead
ing
eB
oo
ks10 10
7
Wat
chin
g6
T
VV
ideo
clip
s3
0
So
cial
med
ia
E
mai
lin
stan
tm
essa
gin
g
Play
ing
amp d
ownl
oadi
ng
pai
d fo
r ga
mes
Rea
din
g d
ocu
men
ts
List
enin
g t
o m
usi
c
Pu
rch
asin
g it
ems
Rea
ding
new
spap
ers
List
enin
g to
the
rad
io
Ed
itin
g d
ocu
men
ts
D
own
load
ing
free
mu
sic
Dow
nlo
adin
gp
aid
for
mu
sic
Ord
erin
g t
akea
way
On
line
gam
blin
g
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
apple continues to be the most popular tablet on the market mdash increasing market share by 12 percentage points to 57 percent between waves 3 and 4 However it is anticipated that Samsung HP dell and archos (which all saw declining market share in the fourth wave) will ignite price competition by introducing more affordable hardware
Four-fifths of tablet-owners downloaded apps in the month to March 31 2011 of which 29 percent were free 6 percent paid and 45 percent a combination of both the apple app Store continues to be the main source of paid apps mdash 93 percent visited the store to download paid apps to their tablets
74 percent of smartphone owners downloaded apps in the same period of which 42 percent were free one percent paid for and 31 percent a combination of both
almost three-quarters (74 percent) of tablet owners also own a smartphone these dual owners are interestingly more inclined to spend on apps for tablets (pound887 in the month to March 31 2010) than on apps for smartphones (pound565) they are also more willing to pay for content on tablets (62 percent paid for access) than on smartphones (24 percent) this is inevitably due to the size of the tablet and its superior video quality and screen that make it
preferable for viewing books newspapers films and tV programmes than on the smartphone as new content providers such as Sky news Channel 4 and itV come on board with video services we anticipate that the tabletrsquos popularity will grow further
Consumers in wave 4 paid to access games (32 percent) eBooks (21 percent) and music (20 percent) on the tablet the survey findings clearly point to a continued rise in the popularity of smartphones and particularly tablets this will continue to drive expenditure through the internet
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Whatrsquos going up in new media
ldquothere is uncertainty about how fast online markets will develop However high awareness levels indicate latent demand with aspiring consumers buying smart technology and paying for online apps and online media the catalyst for growth is likely to be the introduction of lower-priced tablets and smartphones More affordable online media services may bring on the tipping point that turns innovative services into mass mediardquo david elms Head of Media KPMG
Our media barometer provides a snapshot of new media preferences and finds out where consumers are spending their money
eBooks the alternative paperback
the increasing availability of tablets and e-readers such as the iPad and the Kindle is turning readers to digital content
Since wave 1 of our research in September 2009 consumers of electronic books have almost doubled For users who prefer the look and feel of traditional content e-readers offer an accessible and portable format with a page-turning rather than scrolling experience that is not possible on a PC screen
Users spend more on eBooks (pound4) per month than on online games (pound2) or streamed tV (pound1) only downloaded music competes for fractionally more disposable income (pound5)
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Social networking for all
Social networking and blogging remain the most popular online activity Half of all respondents participate including one third of the over-55s while women are more likely to use social networking blogging sites than men
Gaming now a relatively mature online industry may have suffered as a consequence it has steadily declined in popularity from 29 percent in wave 1 to 21 percent by wave 4 as it competes for user time However gaming (along with social networking) still accounts for the greatest amount of time (12 hours) spent online
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Please indicate which if any of the following activities you have done in the past month (new media)
50 50 49
47
40 Wave 4 (March 2011)
37 36 Wave 3 (September 2010)
32 Wave 2 (March 2010)
29 Wave 1 (September 2009) 27
S
oci
al n
etw
ork
ing
b
log
gin
g s
ites
24 24
22 22 22 22 21 21 21
19 18
17 17 17 O
nlin
e ne
ws
port
als
16 16 16 16
15 15 15 n
ewsp
aper
s14 14
13 13 12
8
U
sed
vid
eo o
n6
4 4 d
eman
d fo
r TV
Dow
nlo
aded
mu
sic
On
line
gam
es
Str
eam
ed m
usi
c S
trea
med
on
line
TV p
rog
ram
mes
On
line
mag
azin
es
Str
eam
ed r
adio
Rea
d d
igit
al b
oo
ks
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Streaming ndash as long as itrsquos free
For the first time KPMG tested respondentsrsquo awareness of streamed TV services and found it to be very high
the top seven providers achieved awareness of between 39 percent and 90 percent
Free-view tV services such as BBC iPlayer (acknowledged by 90 percent of respondents) and itV Player (74 percent) which are heavily cross-promoted by broadcasters are the most well-known Conversion rates are also high BBC iPlayer is used by just under two-thirds (63 percent) of those respondents who have heard of it
However awareness does not always convert into usage especially for paid services Half of our respondents had heard of Sky Player but less than 1 in 10 of these (8 percent) use it Conversion rates for other paid streaming services are even lower Looking ahead media providers might respond to consumersrsquo appetite for streaming by offering single tV programmes or mini-daily or weekly subscriptions without long-term tie-ins
among the younger generation awareness of itV Player Channel 4rsquos 4od and Lovefilm is higher than among older counterparts while BBC iPlayerrsquos audience remains consistent irrespective of usersrsquo age
awareness of streaming is much higher among smartphone users than standard handset owners People who own smartphones tend to be tech savvy they know what streaming services are available and are more inclined to search for data services online
BBC iPlayer 90
ITV Player 74
LoveFilm 58
BT Vision 55
Sky Player 50
4oD 48
Sky Anytime 39
Demand 5 25
TalkTalk TV 15
Apple TV 14
Google TV 14
Seesaw 9 Wave 4 (March 2011)
Blinkbox 5
Other 1
None of these 6
Which if any of the following online streaming services have you heard of
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tV resilient to smart invasion
TV continues to be a top pastime but other traditional media activities are losing fans
the survey finds that watching tV offline remains the most popular form of consuming media in wave four 92 percent of people watched tV barely changing on the previous two waves
However the overall consumption of traditional media is declining and the inexorable migration to online media continues
Certain traditional media activities fail to find favour and attract less disposable income than in the past Going down in popularity are print newspapers (from 81 percent in wave 1 to 77 percent by wave 4) radio (from 82 percent to 77 percent) and playing consolevideo games (from 34 percent to 27 percent) Listening to Cds declined markedly from 72 percent in wave 1 to 60 percent by wave 4
Please indicate which if any of the following activities you have done in the past month (traditional media)
94 93
92
88
82 81 80 79 79 79
77 77
72 72 70 70 Wave 4 (September 2009)
68 68 68 68 65 66 Wave 3 (March 2010)
63
60 Wave 2 (September 2010)
53 Wave 1 (March 2011) 50 50
48
Wat
ched
TV
(n
ot
on
line)
34 34
R
ead
pri
nt
30
27 27 27 n
ewsp
aper
s26
21 19
18 18 18 16
15 15 14
List
ened
to
rad
io
Rea
d b
oo
k
R
ead
pri
nt
mag
azin
e
List
ened
to
CD
W
atch
ed D
VD
B
lu-R
ay
P
laye
d c
on
sole
vi
deo
gam
e
Vis
ited
cin
ema
M
usi
c ev
ents
p
erfo
rman
ces
Sp
ort
ing
eve
nts
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
ldquoSome say that television has gone through a renaissance over the past 18 months But it never went away in its various forms (linear catch-up and on-demand) television has remained one of the most powerful media in terms of impact reach and the average number of hours people spend watching itrdquo Guy di Piazza Media analyst KPMG
there has been a small decline in demand and spend on popular pastimes like attending sporting and music events or visits to the cinema since our surveys began in September 2009 the time of year (March 2011) might be the most probable cause for this dip in attendance at music
concerts while the decline in cinema visits (down from 27 percent in wave 3 to 21 percent in wave 4) is possibly a reflection on less popular releases by film studios in recent times
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
online or offline
Online and offline media currently serve distinct purposes
the overall picture is of a burgeoning mixed ecology as consumers grow accustomed to switching seamlessly between online and offline media for their entertainment needs there is for now a coexistence between the two that appears to satisfy most people
Looking ahead the migration to online media will continue and media companies will face a delicate balancing act Media companiesrsquo revenues are higher per consumer of traditional content than per consumer of online content if companies are to maintain their margins they will need to rewrite operational and cost models that are geared currently towards traditional content
it is difficult however to deny an overwhelming preference among consumers for the feel and tangibility of physical offline content among respondents who said they prefer to consume their media offline 83 percent said they preferred to watch tV and films on a tV than on a computer 73 percent said they prefer to read something physical than on screen However as in the previous waves of research a preference for online media is predominantly due to the availability and convenience of lsquoon-the-move contentrsquo
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011 You said that you prefer to consume media OFFLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
83 79 80 76 73
86 8985
57 60 56
49
20 13
19 13 15 14 14 14 11 5 8 8
I would rather watch I would rather read I prefer the I donrsquot have a fast I donrsquot want to make I donrsquot trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media
online media an enjoyable experience
You said that you prefer to consume media ONLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
93 89 91
83 80
72 73 73
63 57
65 63 62 63 64
54 56 61
51 46
28 31 33
14 10
14 14 16
I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that Irsquom wider choice of environmentally content I want at
I want free online itrsquos more convenient interested in content online friendly a better price
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tablets take off
Despite the relative novelty of the tablet mdash Applersquos iPad was only launched in the UK in July 2010 mdash its popularity continues Ownership of tablets more than doubled in the past six months up from two percent of respondents in wave 3 to five percent in wave 4
Consumers are embracing tablets for making content on the move more accessible via apps and for delivering services such as games music and video that they currently demand
as more apps become available more consumers are indulging in a variety of activities 74 percent use the tablet to surf the internet 66 percent to read emails and 52 percent to playdownload free games or to read eBooks Half use it to watch tVvideo clips and for social media
For which if any of the following activities have you used your tablet
74
66
52 52 50 50 49
48 47
Su
rfin
g t
he
inte
rnet
44 41 41
38 36 Wave 4 Wave 3
35 R
ead
ing
em
ails
34 31
28 27 Pl
ayin
g amp
dow
nloa
ding
25 25
24 23 24 fr
ee g
ames
22
19 19
16 15 16 R
ead
ing
eB
oo
ks10 10
7
Wat
chin
g6
T
VV
ideo
clip
s3
0
So
cial
med
ia
E
mai
lin
stan
tm
essa
gin
g
Play
ing
amp d
ownl
oadi
ng
pai
d fo
r ga
mes
Rea
din
g d
ocu
men
ts
List
enin
g t
o m
usi
c
Pu
rch
asin
g it
ems
Rea
ding
new
spap
ers
List
enin
g to
the
rad
io
Ed
itin
g d
ocu
men
ts
D
own
load
ing
free
mu
sic
Dow
nlo
adin
gp
aid
for
mu
sic
Ord
erin
g t
akea
way
On
line
gam
blin
g
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
apple continues to be the most popular tablet on the market mdash increasing market share by 12 percentage points to 57 percent between waves 3 and 4 However it is anticipated that Samsung HP dell and archos (which all saw declining market share in the fourth wave) will ignite price competition by introducing more affordable hardware
Four-fifths of tablet-owners downloaded apps in the month to March 31 2011 of which 29 percent were free 6 percent paid and 45 percent a combination of both the apple app Store continues to be the main source of paid apps mdash 93 percent visited the store to download paid apps to their tablets
74 percent of smartphone owners downloaded apps in the same period of which 42 percent were free one percent paid for and 31 percent a combination of both
almost three-quarters (74 percent) of tablet owners also own a smartphone these dual owners are interestingly more inclined to spend on apps for tablets (pound887 in the month to March 31 2010) than on apps for smartphones (pound565) they are also more willing to pay for content on tablets (62 percent paid for access) than on smartphones (24 percent) this is inevitably due to the size of the tablet and its superior video quality and screen that make it
preferable for viewing books newspapers films and tV programmes than on the smartphone as new content providers such as Sky news Channel 4 and itV come on board with video services we anticipate that the tabletrsquos popularity will grow further
Consumers in wave 4 paid to access games (32 percent) eBooks (21 percent) and music (20 percent) on the tablet the survey findings clearly point to a continued rise in the popularity of smartphones and particularly tablets this will continue to drive expenditure through the internet
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Whatrsquos going up in new media
ldquothere is uncertainty about how fast online markets will develop However high awareness levels indicate latent demand with aspiring consumers buying smart technology and paying for online apps and online media the catalyst for growth is likely to be the introduction of lower-priced tablets and smartphones More affordable online media services may bring on the tipping point that turns innovative services into mass mediardquo david elms Head of Media KPMG
Our media barometer provides a snapshot of new media preferences and finds out where consumers are spending their money
eBooks the alternative paperback
the increasing availability of tablets and e-readers such as the iPad and the Kindle is turning readers to digital content
Since wave 1 of our research in September 2009 consumers of electronic books have almost doubled For users who prefer the look and feel of traditional content e-readers offer an accessible and portable format with a page-turning rather than scrolling experience that is not possible on a PC screen
Users spend more on eBooks (pound4) per month than on online games (pound2) or streamed tV (pound1) only downloaded music competes for fractionally more disposable income (pound5)
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Social networking for all
Social networking and blogging remain the most popular online activity Half of all respondents participate including one third of the over-55s while women are more likely to use social networking blogging sites than men
Gaming now a relatively mature online industry may have suffered as a consequence it has steadily declined in popularity from 29 percent in wave 1 to 21 percent by wave 4 as it competes for user time However gaming (along with social networking) still accounts for the greatest amount of time (12 hours) spent online
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Please indicate which if any of the following activities you have done in the past month (new media)
50 50 49
47
40 Wave 4 (March 2011)
37 36 Wave 3 (September 2010)
32 Wave 2 (March 2010)
29 Wave 1 (September 2009) 27
S
oci
al n
etw
ork
ing
b
log
gin
g s
ites
24 24
22 22 22 22 21 21 21
19 18
17 17 17 O
nlin
e ne
ws
port
als
16 16 16 16
15 15 15 n
ewsp
aper
s14 14
13 13 12
8
U
sed
vid
eo o
n6
4 4 d
eman
d fo
r TV
Dow
nlo
aded
mu
sic
On
line
gam
es
Str
eam
ed m
usi
c S
trea
med
on
line
TV p
rog
ram
mes
On
line
mag
azin
es
Str
eam
ed r
adio
Rea
d d
igit
al b
oo
ks
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Streaming ndash as long as itrsquos free
For the first time KPMG tested respondentsrsquo awareness of streamed TV services and found it to be very high
the top seven providers achieved awareness of between 39 percent and 90 percent
Free-view tV services such as BBC iPlayer (acknowledged by 90 percent of respondents) and itV Player (74 percent) which are heavily cross-promoted by broadcasters are the most well-known Conversion rates are also high BBC iPlayer is used by just under two-thirds (63 percent) of those respondents who have heard of it
However awareness does not always convert into usage especially for paid services Half of our respondents had heard of Sky Player but less than 1 in 10 of these (8 percent) use it Conversion rates for other paid streaming services are even lower Looking ahead media providers might respond to consumersrsquo appetite for streaming by offering single tV programmes or mini-daily or weekly subscriptions without long-term tie-ins
among the younger generation awareness of itV Player Channel 4rsquos 4od and Lovefilm is higher than among older counterparts while BBC iPlayerrsquos audience remains consistent irrespective of usersrsquo age
awareness of streaming is much higher among smartphone users than standard handset owners People who own smartphones tend to be tech savvy they know what streaming services are available and are more inclined to search for data services online
BBC iPlayer 90
ITV Player 74
LoveFilm 58
BT Vision 55
Sky Player 50
4oD 48
Sky Anytime 39
Demand 5 25
TalkTalk TV 15
Apple TV 14
Google TV 14
Seesaw 9 Wave 4 (March 2011)
Blinkbox 5
Other 1
None of these 6
Which if any of the following online streaming services have you heard of
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tV resilient to smart invasion
TV continues to be a top pastime but other traditional media activities are losing fans
the survey finds that watching tV offline remains the most popular form of consuming media in wave four 92 percent of people watched tV barely changing on the previous two waves
However the overall consumption of traditional media is declining and the inexorable migration to online media continues
Certain traditional media activities fail to find favour and attract less disposable income than in the past Going down in popularity are print newspapers (from 81 percent in wave 1 to 77 percent by wave 4) radio (from 82 percent to 77 percent) and playing consolevideo games (from 34 percent to 27 percent) Listening to Cds declined markedly from 72 percent in wave 1 to 60 percent by wave 4
Please indicate which if any of the following activities you have done in the past month (traditional media)
94 93
92
88
82 81 80 79 79 79
77 77
72 72 70 70 Wave 4 (September 2009)
68 68 68 68 65 66 Wave 3 (March 2010)
63
60 Wave 2 (September 2010)
53 Wave 1 (March 2011) 50 50
48
Wat
ched
TV
(n
ot
on
line)
34 34
R
ead
pri
nt
30
27 27 27 n
ewsp
aper
s26
21 19
18 18 18 16
15 15 14
List
ened
to
rad
io
Rea
d b
oo
k
R
ead
pri
nt
mag
azin
e
List
ened
to
CD
W
atch
ed D
VD
B
lu-R
ay
P
laye
d c
on
sole
vi
deo
gam
e
Vis
ited
cin
ema
M
usi
c ev
ents
p
erfo
rman
ces
Sp
ort
ing
eve
nts
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
ldquoSome say that television has gone through a renaissance over the past 18 months But it never went away in its various forms (linear catch-up and on-demand) television has remained one of the most powerful media in terms of impact reach and the average number of hours people spend watching itrdquo Guy di Piazza Media analyst KPMG
there has been a small decline in demand and spend on popular pastimes like attending sporting and music events or visits to the cinema since our surveys began in September 2009 the time of year (March 2011) might be the most probable cause for this dip in attendance at music
concerts while the decline in cinema visits (down from 27 percent in wave 3 to 21 percent in wave 4) is possibly a reflection on less popular releases by film studios in recent times
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
online or offline
Online and offline media currently serve distinct purposes
the overall picture is of a burgeoning mixed ecology as consumers grow accustomed to switching seamlessly between online and offline media for their entertainment needs there is for now a coexistence between the two that appears to satisfy most people
Looking ahead the migration to online media will continue and media companies will face a delicate balancing act Media companiesrsquo revenues are higher per consumer of traditional content than per consumer of online content if companies are to maintain their margins they will need to rewrite operational and cost models that are geared currently towards traditional content
it is difficult however to deny an overwhelming preference among consumers for the feel and tangibility of physical offline content among respondents who said they prefer to consume their media offline 83 percent said they preferred to watch tV and films on a tV than on a computer 73 percent said they prefer to read something physical than on screen However as in the previous waves of research a preference for online media is predominantly due to the availability and convenience of lsquoon-the-move contentrsquo
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011 You said that you prefer to consume media OFFLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
83 79 80 76 73
86 8985
57 60 56
49
20 13
19 13 15 14 14 14 11 5 8 8
I would rather watch I would rather read I prefer the I donrsquot have a fast I donrsquot want to make I donrsquot trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media
online media an enjoyable experience
You said that you prefer to consume media ONLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
93 89 91
83 80
72 73 73
63 57
65 63 62 63 64
54 56 61
51 46
28 31 33
14 10
14 14 16
I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that Irsquom wider choice of environmentally content I want at
I want free online itrsquos more convenient interested in content online friendly a better price
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
apple continues to be the most popular tablet on the market mdash increasing market share by 12 percentage points to 57 percent between waves 3 and 4 However it is anticipated that Samsung HP dell and archos (which all saw declining market share in the fourth wave) will ignite price competition by introducing more affordable hardware
Four-fifths of tablet-owners downloaded apps in the month to March 31 2011 of which 29 percent were free 6 percent paid and 45 percent a combination of both the apple app Store continues to be the main source of paid apps mdash 93 percent visited the store to download paid apps to their tablets
74 percent of smartphone owners downloaded apps in the same period of which 42 percent were free one percent paid for and 31 percent a combination of both
almost three-quarters (74 percent) of tablet owners also own a smartphone these dual owners are interestingly more inclined to spend on apps for tablets (pound887 in the month to March 31 2010) than on apps for smartphones (pound565) they are also more willing to pay for content on tablets (62 percent paid for access) than on smartphones (24 percent) this is inevitably due to the size of the tablet and its superior video quality and screen that make it
preferable for viewing books newspapers films and tV programmes than on the smartphone as new content providers such as Sky news Channel 4 and itV come on board with video services we anticipate that the tabletrsquos popularity will grow further
Consumers in wave 4 paid to access games (32 percent) eBooks (21 percent) and music (20 percent) on the tablet the survey findings clearly point to a continued rise in the popularity of smartphones and particularly tablets this will continue to drive expenditure through the internet
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Whatrsquos going up in new media
ldquothere is uncertainty about how fast online markets will develop However high awareness levels indicate latent demand with aspiring consumers buying smart technology and paying for online apps and online media the catalyst for growth is likely to be the introduction of lower-priced tablets and smartphones More affordable online media services may bring on the tipping point that turns innovative services into mass mediardquo david elms Head of Media KPMG
Our media barometer provides a snapshot of new media preferences and finds out where consumers are spending their money
eBooks the alternative paperback
the increasing availability of tablets and e-readers such as the iPad and the Kindle is turning readers to digital content
Since wave 1 of our research in September 2009 consumers of electronic books have almost doubled For users who prefer the look and feel of traditional content e-readers offer an accessible and portable format with a page-turning rather than scrolling experience that is not possible on a PC screen
Users spend more on eBooks (pound4) per month than on online games (pound2) or streamed tV (pound1) only downloaded music competes for fractionally more disposable income (pound5)
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Social networking for all
Social networking and blogging remain the most popular online activity Half of all respondents participate including one third of the over-55s while women are more likely to use social networking blogging sites than men
Gaming now a relatively mature online industry may have suffered as a consequence it has steadily declined in popularity from 29 percent in wave 1 to 21 percent by wave 4 as it competes for user time However gaming (along with social networking) still accounts for the greatest amount of time (12 hours) spent online
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Please indicate which if any of the following activities you have done in the past month (new media)
50 50 49
47
40 Wave 4 (March 2011)
37 36 Wave 3 (September 2010)
32 Wave 2 (March 2010)
29 Wave 1 (September 2009) 27
S
oci
al n
etw
ork
ing
b
log
gin
g s
ites
24 24
22 22 22 22 21 21 21
19 18
17 17 17 O
nlin
e ne
ws
port
als
16 16 16 16
15 15 15 n
ewsp
aper
s14 14
13 13 12
8
U
sed
vid
eo o
n6
4 4 d
eman
d fo
r TV
Dow
nlo
aded
mu
sic
On
line
gam
es
Str
eam
ed m
usi
c S
trea
med
on
line
TV p
rog
ram
mes
On
line
mag
azin
es
Str
eam
ed r
adio
Rea
d d
igit
al b
oo
ks
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Streaming ndash as long as itrsquos free
For the first time KPMG tested respondentsrsquo awareness of streamed TV services and found it to be very high
the top seven providers achieved awareness of between 39 percent and 90 percent
Free-view tV services such as BBC iPlayer (acknowledged by 90 percent of respondents) and itV Player (74 percent) which are heavily cross-promoted by broadcasters are the most well-known Conversion rates are also high BBC iPlayer is used by just under two-thirds (63 percent) of those respondents who have heard of it
However awareness does not always convert into usage especially for paid services Half of our respondents had heard of Sky Player but less than 1 in 10 of these (8 percent) use it Conversion rates for other paid streaming services are even lower Looking ahead media providers might respond to consumersrsquo appetite for streaming by offering single tV programmes or mini-daily or weekly subscriptions without long-term tie-ins
among the younger generation awareness of itV Player Channel 4rsquos 4od and Lovefilm is higher than among older counterparts while BBC iPlayerrsquos audience remains consistent irrespective of usersrsquo age
awareness of streaming is much higher among smartphone users than standard handset owners People who own smartphones tend to be tech savvy they know what streaming services are available and are more inclined to search for data services online
BBC iPlayer 90
ITV Player 74
LoveFilm 58
BT Vision 55
Sky Player 50
4oD 48
Sky Anytime 39
Demand 5 25
TalkTalk TV 15
Apple TV 14
Google TV 14
Seesaw 9 Wave 4 (March 2011)
Blinkbox 5
Other 1
None of these 6
Which if any of the following online streaming services have you heard of
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tV resilient to smart invasion
TV continues to be a top pastime but other traditional media activities are losing fans
the survey finds that watching tV offline remains the most popular form of consuming media in wave four 92 percent of people watched tV barely changing on the previous two waves
However the overall consumption of traditional media is declining and the inexorable migration to online media continues
Certain traditional media activities fail to find favour and attract less disposable income than in the past Going down in popularity are print newspapers (from 81 percent in wave 1 to 77 percent by wave 4) radio (from 82 percent to 77 percent) and playing consolevideo games (from 34 percent to 27 percent) Listening to Cds declined markedly from 72 percent in wave 1 to 60 percent by wave 4
Please indicate which if any of the following activities you have done in the past month (traditional media)
94 93
92
88
82 81 80 79 79 79
77 77
72 72 70 70 Wave 4 (September 2009)
68 68 68 68 65 66 Wave 3 (March 2010)
63
60 Wave 2 (September 2010)
53 Wave 1 (March 2011) 50 50
48
Wat
ched
TV
(n
ot
on
line)
34 34
R
ead
pri
nt
30
27 27 27 n
ewsp
aper
s26
21 19
18 18 18 16
15 15 14
List
ened
to
rad
io
Rea
d b
oo
k
R
ead
pri
nt
mag
azin
e
List
ened
to
CD
W
atch
ed D
VD
B
lu-R
ay
P
laye
d c
on
sole
vi
deo
gam
e
Vis
ited
cin
ema
M
usi
c ev
ents
p
erfo
rman
ces
Sp
ort
ing
eve
nts
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
ldquoSome say that television has gone through a renaissance over the past 18 months But it never went away in its various forms (linear catch-up and on-demand) television has remained one of the most powerful media in terms of impact reach and the average number of hours people spend watching itrdquo Guy di Piazza Media analyst KPMG
there has been a small decline in demand and spend on popular pastimes like attending sporting and music events or visits to the cinema since our surveys began in September 2009 the time of year (March 2011) might be the most probable cause for this dip in attendance at music
concerts while the decline in cinema visits (down from 27 percent in wave 3 to 21 percent in wave 4) is possibly a reflection on less popular releases by film studios in recent times
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
online or offline
Online and offline media currently serve distinct purposes
the overall picture is of a burgeoning mixed ecology as consumers grow accustomed to switching seamlessly between online and offline media for their entertainment needs there is for now a coexistence between the two that appears to satisfy most people
Looking ahead the migration to online media will continue and media companies will face a delicate balancing act Media companiesrsquo revenues are higher per consumer of traditional content than per consumer of online content if companies are to maintain their margins they will need to rewrite operational and cost models that are geared currently towards traditional content
it is difficult however to deny an overwhelming preference among consumers for the feel and tangibility of physical offline content among respondents who said they prefer to consume their media offline 83 percent said they preferred to watch tV and films on a tV than on a computer 73 percent said they prefer to read something physical than on screen However as in the previous waves of research a preference for online media is predominantly due to the availability and convenience of lsquoon-the-move contentrsquo
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011 You said that you prefer to consume media OFFLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
83 79 80 76 73
86 8985
57 60 56
49
20 13
19 13 15 14 14 14 11 5 8 8
I would rather watch I would rather read I prefer the I donrsquot have a fast I donrsquot want to make I donrsquot trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media
online media an enjoyable experience
You said that you prefer to consume media ONLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
93 89 91
83 80
72 73 73
63 57
65 63 62 63 64
54 56 61
51 46
28 31 33
14 10
14 14 16
I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that Irsquom wider choice of environmentally content I want at
I want free online itrsquos more convenient interested in content online friendly a better price
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Whatrsquos going up in new media
ldquothere is uncertainty about how fast online markets will develop However high awareness levels indicate latent demand with aspiring consumers buying smart technology and paying for online apps and online media the catalyst for growth is likely to be the introduction of lower-priced tablets and smartphones More affordable online media services may bring on the tipping point that turns innovative services into mass mediardquo david elms Head of Media KPMG
Our media barometer provides a snapshot of new media preferences and finds out where consumers are spending their money
eBooks the alternative paperback
the increasing availability of tablets and e-readers such as the iPad and the Kindle is turning readers to digital content
Since wave 1 of our research in September 2009 consumers of electronic books have almost doubled For users who prefer the look and feel of traditional content e-readers offer an accessible and portable format with a page-turning rather than scrolling experience that is not possible on a PC screen
Users spend more on eBooks (pound4) per month than on online games (pound2) or streamed tV (pound1) only downloaded music competes for fractionally more disposable income (pound5)
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Social networking for all
Social networking and blogging remain the most popular online activity Half of all respondents participate including one third of the over-55s while women are more likely to use social networking blogging sites than men
Gaming now a relatively mature online industry may have suffered as a consequence it has steadily declined in popularity from 29 percent in wave 1 to 21 percent by wave 4 as it competes for user time However gaming (along with social networking) still accounts for the greatest amount of time (12 hours) spent online
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Please indicate which if any of the following activities you have done in the past month (new media)
50 50 49
47
40 Wave 4 (March 2011)
37 36 Wave 3 (September 2010)
32 Wave 2 (March 2010)
29 Wave 1 (September 2009) 27
S
oci
al n
etw
ork
ing
b
log
gin
g s
ites
24 24
22 22 22 22 21 21 21
19 18
17 17 17 O
nlin
e ne
ws
port
als
16 16 16 16
15 15 15 n
ewsp
aper
s14 14
13 13 12
8
U
sed
vid
eo o
n6
4 4 d
eman
d fo
r TV
Dow
nlo
aded
mu
sic
On
line
gam
es
Str
eam
ed m
usi
c S
trea
med
on
line
TV p
rog
ram
mes
On
line
mag
azin
es
Str
eam
ed r
adio
Rea
d d
igit
al b
oo
ks
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Streaming ndash as long as itrsquos free
For the first time KPMG tested respondentsrsquo awareness of streamed TV services and found it to be very high
the top seven providers achieved awareness of between 39 percent and 90 percent
Free-view tV services such as BBC iPlayer (acknowledged by 90 percent of respondents) and itV Player (74 percent) which are heavily cross-promoted by broadcasters are the most well-known Conversion rates are also high BBC iPlayer is used by just under two-thirds (63 percent) of those respondents who have heard of it
However awareness does not always convert into usage especially for paid services Half of our respondents had heard of Sky Player but less than 1 in 10 of these (8 percent) use it Conversion rates for other paid streaming services are even lower Looking ahead media providers might respond to consumersrsquo appetite for streaming by offering single tV programmes or mini-daily or weekly subscriptions without long-term tie-ins
among the younger generation awareness of itV Player Channel 4rsquos 4od and Lovefilm is higher than among older counterparts while BBC iPlayerrsquos audience remains consistent irrespective of usersrsquo age
awareness of streaming is much higher among smartphone users than standard handset owners People who own smartphones tend to be tech savvy they know what streaming services are available and are more inclined to search for data services online
BBC iPlayer 90
ITV Player 74
LoveFilm 58
BT Vision 55
Sky Player 50
4oD 48
Sky Anytime 39
Demand 5 25
TalkTalk TV 15
Apple TV 14
Google TV 14
Seesaw 9 Wave 4 (March 2011)
Blinkbox 5
Other 1
None of these 6
Which if any of the following online streaming services have you heard of
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tV resilient to smart invasion
TV continues to be a top pastime but other traditional media activities are losing fans
the survey finds that watching tV offline remains the most popular form of consuming media in wave four 92 percent of people watched tV barely changing on the previous two waves
However the overall consumption of traditional media is declining and the inexorable migration to online media continues
Certain traditional media activities fail to find favour and attract less disposable income than in the past Going down in popularity are print newspapers (from 81 percent in wave 1 to 77 percent by wave 4) radio (from 82 percent to 77 percent) and playing consolevideo games (from 34 percent to 27 percent) Listening to Cds declined markedly from 72 percent in wave 1 to 60 percent by wave 4
Please indicate which if any of the following activities you have done in the past month (traditional media)
94 93
92
88
82 81 80 79 79 79
77 77
72 72 70 70 Wave 4 (September 2009)
68 68 68 68 65 66 Wave 3 (March 2010)
63
60 Wave 2 (September 2010)
53 Wave 1 (March 2011) 50 50
48
Wat
ched
TV
(n
ot
on
line)
34 34
R
ead
pri
nt
30
27 27 27 n
ewsp
aper
s26
21 19
18 18 18 16
15 15 14
List
ened
to
rad
io
Rea
d b
oo
k
R
ead
pri
nt
mag
azin
e
List
ened
to
CD
W
atch
ed D
VD
B
lu-R
ay
P
laye
d c
on
sole
vi
deo
gam
e
Vis
ited
cin
ema
M
usi
c ev
ents
p
erfo
rman
ces
Sp
ort
ing
eve
nts
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
ldquoSome say that television has gone through a renaissance over the past 18 months But it never went away in its various forms (linear catch-up and on-demand) television has remained one of the most powerful media in terms of impact reach and the average number of hours people spend watching itrdquo Guy di Piazza Media analyst KPMG
there has been a small decline in demand and spend on popular pastimes like attending sporting and music events or visits to the cinema since our surveys began in September 2009 the time of year (March 2011) might be the most probable cause for this dip in attendance at music
concerts while the decline in cinema visits (down from 27 percent in wave 3 to 21 percent in wave 4) is possibly a reflection on less popular releases by film studios in recent times
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
online or offline
Online and offline media currently serve distinct purposes
the overall picture is of a burgeoning mixed ecology as consumers grow accustomed to switching seamlessly between online and offline media for their entertainment needs there is for now a coexistence between the two that appears to satisfy most people
Looking ahead the migration to online media will continue and media companies will face a delicate balancing act Media companiesrsquo revenues are higher per consumer of traditional content than per consumer of online content if companies are to maintain their margins they will need to rewrite operational and cost models that are geared currently towards traditional content
it is difficult however to deny an overwhelming preference among consumers for the feel and tangibility of physical offline content among respondents who said they prefer to consume their media offline 83 percent said they preferred to watch tV and films on a tV than on a computer 73 percent said they prefer to read something physical than on screen However as in the previous waves of research a preference for online media is predominantly due to the availability and convenience of lsquoon-the-move contentrsquo
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011 You said that you prefer to consume media OFFLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
83 79 80 76 73
86 8985
57 60 56
49
20 13
19 13 15 14 14 14 11 5 8 8
I would rather watch I would rather read I prefer the I donrsquot have a fast I donrsquot want to make I donrsquot trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media
online media an enjoyable experience
You said that you prefer to consume media ONLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
93 89 91
83 80
72 73 73
63 57
65 63 62 63 64
54 56 61
51 46
28 31 33
14 10
14 14 16
I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that Irsquom wider choice of environmentally content I want at
I want free online itrsquos more convenient interested in content online friendly a better price
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Social networking for all
Social networking and blogging remain the most popular online activity Half of all respondents participate including one third of the over-55s while women are more likely to use social networking blogging sites than men
Gaming now a relatively mature online industry may have suffered as a consequence it has steadily declined in popularity from 29 percent in wave 1 to 21 percent by wave 4 as it competes for user time However gaming (along with social networking) still accounts for the greatest amount of time (12 hours) spent online
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Please indicate which if any of the following activities you have done in the past month (new media)
50 50 49
47
40 Wave 4 (March 2011)
37 36 Wave 3 (September 2010)
32 Wave 2 (March 2010)
29 Wave 1 (September 2009) 27
S
oci
al n
etw
ork
ing
b
log
gin
g s
ites
24 24
22 22 22 22 21 21 21
19 18
17 17 17 O
nlin
e ne
ws
port
als
16 16 16 16
15 15 15 n
ewsp
aper
s14 14
13 13 12
8
U
sed
vid
eo o
n6
4 4 d
eman
d fo
r TV
Dow
nlo
aded
mu
sic
On
line
gam
es
Str
eam
ed m
usi
c S
trea
med
on
line
TV p
rog
ram
mes
On
line
mag
azin
es
Str
eam
ed r
adio
Rea
d d
igit
al b
oo
ks
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Streaming ndash as long as itrsquos free
For the first time KPMG tested respondentsrsquo awareness of streamed TV services and found it to be very high
the top seven providers achieved awareness of between 39 percent and 90 percent
Free-view tV services such as BBC iPlayer (acknowledged by 90 percent of respondents) and itV Player (74 percent) which are heavily cross-promoted by broadcasters are the most well-known Conversion rates are also high BBC iPlayer is used by just under two-thirds (63 percent) of those respondents who have heard of it
However awareness does not always convert into usage especially for paid services Half of our respondents had heard of Sky Player but less than 1 in 10 of these (8 percent) use it Conversion rates for other paid streaming services are even lower Looking ahead media providers might respond to consumersrsquo appetite for streaming by offering single tV programmes or mini-daily or weekly subscriptions without long-term tie-ins
among the younger generation awareness of itV Player Channel 4rsquos 4od and Lovefilm is higher than among older counterparts while BBC iPlayerrsquos audience remains consistent irrespective of usersrsquo age
awareness of streaming is much higher among smartphone users than standard handset owners People who own smartphones tend to be tech savvy they know what streaming services are available and are more inclined to search for data services online
BBC iPlayer 90
ITV Player 74
LoveFilm 58
BT Vision 55
Sky Player 50
4oD 48
Sky Anytime 39
Demand 5 25
TalkTalk TV 15
Apple TV 14
Google TV 14
Seesaw 9 Wave 4 (March 2011)
Blinkbox 5
Other 1
None of these 6
Which if any of the following online streaming services have you heard of
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tV resilient to smart invasion
TV continues to be a top pastime but other traditional media activities are losing fans
the survey finds that watching tV offline remains the most popular form of consuming media in wave four 92 percent of people watched tV barely changing on the previous two waves
However the overall consumption of traditional media is declining and the inexorable migration to online media continues
Certain traditional media activities fail to find favour and attract less disposable income than in the past Going down in popularity are print newspapers (from 81 percent in wave 1 to 77 percent by wave 4) radio (from 82 percent to 77 percent) and playing consolevideo games (from 34 percent to 27 percent) Listening to Cds declined markedly from 72 percent in wave 1 to 60 percent by wave 4
Please indicate which if any of the following activities you have done in the past month (traditional media)
94 93
92
88
82 81 80 79 79 79
77 77
72 72 70 70 Wave 4 (September 2009)
68 68 68 68 65 66 Wave 3 (March 2010)
63
60 Wave 2 (September 2010)
53 Wave 1 (March 2011) 50 50
48
Wat
ched
TV
(n
ot
on
line)
34 34
R
ead
pri
nt
30
27 27 27 n
ewsp
aper
s26
21 19
18 18 18 16
15 15 14
List
ened
to
rad
io
Rea
d b
oo
k
R
ead
pri
nt
mag
azin
e
List
ened
to
CD
W
atch
ed D
VD
B
lu-R
ay
P
laye
d c
on
sole
vi
deo
gam
e
Vis
ited
cin
ema
M
usi
c ev
ents
p
erfo
rman
ces
Sp
ort
ing
eve
nts
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
ldquoSome say that television has gone through a renaissance over the past 18 months But it never went away in its various forms (linear catch-up and on-demand) television has remained one of the most powerful media in terms of impact reach and the average number of hours people spend watching itrdquo Guy di Piazza Media analyst KPMG
there has been a small decline in demand and spend on popular pastimes like attending sporting and music events or visits to the cinema since our surveys began in September 2009 the time of year (March 2011) might be the most probable cause for this dip in attendance at music
concerts while the decline in cinema visits (down from 27 percent in wave 3 to 21 percent in wave 4) is possibly a reflection on less popular releases by film studios in recent times
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
online or offline
Online and offline media currently serve distinct purposes
the overall picture is of a burgeoning mixed ecology as consumers grow accustomed to switching seamlessly between online and offline media for their entertainment needs there is for now a coexistence between the two that appears to satisfy most people
Looking ahead the migration to online media will continue and media companies will face a delicate balancing act Media companiesrsquo revenues are higher per consumer of traditional content than per consumer of online content if companies are to maintain their margins they will need to rewrite operational and cost models that are geared currently towards traditional content
it is difficult however to deny an overwhelming preference among consumers for the feel and tangibility of physical offline content among respondents who said they prefer to consume their media offline 83 percent said they preferred to watch tV and films on a tV than on a computer 73 percent said they prefer to read something physical than on screen However as in the previous waves of research a preference for online media is predominantly due to the availability and convenience of lsquoon-the-move contentrsquo
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011 You said that you prefer to consume media OFFLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
83 79 80 76 73
86 8985
57 60 56
49
20 13
19 13 15 14 14 14 11 5 8 8
I would rather watch I would rather read I prefer the I donrsquot have a fast I donrsquot want to make I donrsquot trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media
online media an enjoyable experience
You said that you prefer to consume media ONLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
93 89 91
83 80
72 73 73
63 57
65 63 62 63 64
54 56 61
51 46
28 31 33
14 10
14 14 16
I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that Irsquom wider choice of environmentally content I want at
I want free online itrsquos more convenient interested in content online friendly a better price
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Streaming ndash as long as itrsquos free
For the first time KPMG tested respondentsrsquo awareness of streamed TV services and found it to be very high
the top seven providers achieved awareness of between 39 percent and 90 percent
Free-view tV services such as BBC iPlayer (acknowledged by 90 percent of respondents) and itV Player (74 percent) which are heavily cross-promoted by broadcasters are the most well-known Conversion rates are also high BBC iPlayer is used by just under two-thirds (63 percent) of those respondents who have heard of it
However awareness does not always convert into usage especially for paid services Half of our respondents had heard of Sky Player but less than 1 in 10 of these (8 percent) use it Conversion rates for other paid streaming services are even lower Looking ahead media providers might respond to consumersrsquo appetite for streaming by offering single tV programmes or mini-daily or weekly subscriptions without long-term tie-ins
among the younger generation awareness of itV Player Channel 4rsquos 4od and Lovefilm is higher than among older counterparts while BBC iPlayerrsquos audience remains consistent irrespective of usersrsquo age
awareness of streaming is much higher among smartphone users than standard handset owners People who own smartphones tend to be tech savvy they know what streaming services are available and are more inclined to search for data services online
BBC iPlayer 90
ITV Player 74
LoveFilm 58
BT Vision 55
Sky Player 50
4oD 48
Sky Anytime 39
Demand 5 25
TalkTalk TV 15
Apple TV 14
Google TV 14
Seesaw 9 Wave 4 (March 2011)
Blinkbox 5
Other 1
None of these 6
Which if any of the following online streaming services have you heard of
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tV resilient to smart invasion
TV continues to be a top pastime but other traditional media activities are losing fans
the survey finds that watching tV offline remains the most popular form of consuming media in wave four 92 percent of people watched tV barely changing on the previous two waves
However the overall consumption of traditional media is declining and the inexorable migration to online media continues
Certain traditional media activities fail to find favour and attract less disposable income than in the past Going down in popularity are print newspapers (from 81 percent in wave 1 to 77 percent by wave 4) radio (from 82 percent to 77 percent) and playing consolevideo games (from 34 percent to 27 percent) Listening to Cds declined markedly from 72 percent in wave 1 to 60 percent by wave 4
Please indicate which if any of the following activities you have done in the past month (traditional media)
94 93
92
88
82 81 80 79 79 79
77 77
72 72 70 70 Wave 4 (September 2009)
68 68 68 68 65 66 Wave 3 (March 2010)
63
60 Wave 2 (September 2010)
53 Wave 1 (March 2011) 50 50
48
Wat
ched
TV
(n
ot
on
line)
34 34
R
ead
pri
nt
30
27 27 27 n
ewsp
aper
s26
21 19
18 18 18 16
15 15 14
List
ened
to
rad
io
Rea
d b
oo
k
R
ead
pri
nt
mag
azin
e
List
ened
to
CD
W
atch
ed D
VD
B
lu-R
ay
P
laye
d c
on
sole
vi
deo
gam
e
Vis
ited
cin
ema
M
usi
c ev
ents
p
erfo
rman
ces
Sp
ort
ing
eve
nts
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
ldquoSome say that television has gone through a renaissance over the past 18 months But it never went away in its various forms (linear catch-up and on-demand) television has remained one of the most powerful media in terms of impact reach and the average number of hours people spend watching itrdquo Guy di Piazza Media analyst KPMG
there has been a small decline in demand and spend on popular pastimes like attending sporting and music events or visits to the cinema since our surveys began in September 2009 the time of year (March 2011) might be the most probable cause for this dip in attendance at music
concerts while the decline in cinema visits (down from 27 percent in wave 3 to 21 percent in wave 4) is possibly a reflection on less popular releases by film studios in recent times
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
online or offline
Online and offline media currently serve distinct purposes
the overall picture is of a burgeoning mixed ecology as consumers grow accustomed to switching seamlessly between online and offline media for their entertainment needs there is for now a coexistence between the two that appears to satisfy most people
Looking ahead the migration to online media will continue and media companies will face a delicate balancing act Media companiesrsquo revenues are higher per consumer of traditional content than per consumer of online content if companies are to maintain their margins they will need to rewrite operational and cost models that are geared currently towards traditional content
it is difficult however to deny an overwhelming preference among consumers for the feel and tangibility of physical offline content among respondents who said they prefer to consume their media offline 83 percent said they preferred to watch tV and films on a tV than on a computer 73 percent said they prefer to read something physical than on screen However as in the previous waves of research a preference for online media is predominantly due to the availability and convenience of lsquoon-the-move contentrsquo
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011 You said that you prefer to consume media OFFLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
83 79 80 76 73
86 8985
57 60 56
49
20 13
19 13 15 14 14 14 11 5 8 8
I would rather watch I would rather read I prefer the I donrsquot have a fast I donrsquot want to make I donrsquot trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media
online media an enjoyable experience
You said that you prefer to consume media ONLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
93 89 91
83 80
72 73 73
63 57
65 63 62 63 64
54 56 61
51 46
28 31 33
14 10
14 14 16
I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that Irsquom wider choice of environmentally content I want at
I want free online itrsquos more convenient interested in content online friendly a better price
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
tV resilient to smart invasion
TV continues to be a top pastime but other traditional media activities are losing fans
the survey finds that watching tV offline remains the most popular form of consuming media in wave four 92 percent of people watched tV barely changing on the previous two waves
However the overall consumption of traditional media is declining and the inexorable migration to online media continues
Certain traditional media activities fail to find favour and attract less disposable income than in the past Going down in popularity are print newspapers (from 81 percent in wave 1 to 77 percent by wave 4) radio (from 82 percent to 77 percent) and playing consolevideo games (from 34 percent to 27 percent) Listening to Cds declined markedly from 72 percent in wave 1 to 60 percent by wave 4
Please indicate which if any of the following activities you have done in the past month (traditional media)
94 93
92
88
82 81 80 79 79 79
77 77
72 72 70 70 Wave 4 (September 2009)
68 68 68 68 65 66 Wave 3 (March 2010)
63
60 Wave 2 (September 2010)
53 Wave 1 (March 2011) 50 50
48
Wat
ched
TV
(n
ot
on
line)
34 34
R
ead
pri
nt
30
27 27 27 n
ewsp
aper
s26
21 19
18 18 18 16
15 15 14
List
ened
to
rad
io
Rea
d b
oo
k
R
ead
pri
nt
mag
azin
e
List
ened
to
CD
W
atch
ed D
VD
B
lu-R
ay
P
laye
d c
on
sole
vi
deo
gam
e
Vis
ited
cin
ema
M
usi
c ev
ents
p
erfo
rman
ces
Sp
ort
ing
eve
nts
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
ldquoSome say that television has gone through a renaissance over the past 18 months But it never went away in its various forms (linear catch-up and on-demand) television has remained one of the most powerful media in terms of impact reach and the average number of hours people spend watching itrdquo Guy di Piazza Media analyst KPMG
there has been a small decline in demand and spend on popular pastimes like attending sporting and music events or visits to the cinema since our surveys began in September 2009 the time of year (March 2011) might be the most probable cause for this dip in attendance at music
concerts while the decline in cinema visits (down from 27 percent in wave 3 to 21 percent in wave 4) is possibly a reflection on less popular releases by film studios in recent times
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
online or offline
Online and offline media currently serve distinct purposes
the overall picture is of a burgeoning mixed ecology as consumers grow accustomed to switching seamlessly between online and offline media for their entertainment needs there is for now a coexistence between the two that appears to satisfy most people
Looking ahead the migration to online media will continue and media companies will face a delicate balancing act Media companiesrsquo revenues are higher per consumer of traditional content than per consumer of online content if companies are to maintain their margins they will need to rewrite operational and cost models that are geared currently towards traditional content
it is difficult however to deny an overwhelming preference among consumers for the feel and tangibility of physical offline content among respondents who said they prefer to consume their media offline 83 percent said they preferred to watch tV and films on a tV than on a computer 73 percent said they prefer to read something physical than on screen However as in the previous waves of research a preference for online media is predominantly due to the availability and convenience of lsquoon-the-move contentrsquo
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011 You said that you prefer to consume media OFFLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
83 79 80 76 73
86 8985
57 60 56
49
20 13
19 13 15 14 14 14 11 5 8 8
I would rather watch I would rather read I prefer the I donrsquot have a fast I donrsquot want to make I donrsquot trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media
online media an enjoyable experience
You said that you prefer to consume media ONLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
93 89 91
83 80
72 73 73
63 57
65 63 62 63 64
54 56 61
51 46
28 31 33
14 10
14 14 16
I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that Irsquom wider choice of environmentally content I want at
I want free online itrsquos more convenient interested in content online friendly a better price
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
ldquoSome say that television has gone through a renaissance over the past 18 months But it never went away in its various forms (linear catch-up and on-demand) television has remained one of the most powerful media in terms of impact reach and the average number of hours people spend watching itrdquo Guy di Piazza Media analyst KPMG
there has been a small decline in demand and spend on popular pastimes like attending sporting and music events or visits to the cinema since our surveys began in September 2009 the time of year (March 2011) might be the most probable cause for this dip in attendance at music
concerts while the decline in cinema visits (down from 27 percent in wave 3 to 21 percent in wave 4) is possibly a reflection on less popular releases by film studios in recent times
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
online or offline
Online and offline media currently serve distinct purposes
the overall picture is of a burgeoning mixed ecology as consumers grow accustomed to switching seamlessly between online and offline media for their entertainment needs there is for now a coexistence between the two that appears to satisfy most people
Looking ahead the migration to online media will continue and media companies will face a delicate balancing act Media companiesrsquo revenues are higher per consumer of traditional content than per consumer of online content if companies are to maintain their margins they will need to rewrite operational and cost models that are geared currently towards traditional content
it is difficult however to deny an overwhelming preference among consumers for the feel and tangibility of physical offline content among respondents who said they prefer to consume their media offline 83 percent said they preferred to watch tV and films on a tV than on a computer 73 percent said they prefer to read something physical than on screen However as in the previous waves of research a preference for online media is predominantly due to the availability and convenience of lsquoon-the-move contentrsquo
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011 You said that you prefer to consume media OFFLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
83 79 80 76 73
86 8985
57 60 56
49
20 13
19 13 15 14 14 14 11 5 8 8
I would rather watch I would rather read I prefer the I donrsquot have a fast I donrsquot want to make I donrsquot trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media
online media an enjoyable experience
You said that you prefer to consume media ONLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
93 89 91
83 80
72 73 73
63 57
65 63 62 63 64
54 56 61
51 46
28 31 33
14 10
14 14 16
I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that Irsquom wider choice of environmentally content I want at
I want free online itrsquos more convenient interested in content online friendly a better price
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
online or offline
Online and offline media currently serve distinct purposes
the overall picture is of a burgeoning mixed ecology as consumers grow accustomed to switching seamlessly between online and offline media for their entertainment needs there is for now a coexistence between the two that appears to satisfy most people
Looking ahead the migration to online media will continue and media companies will face a delicate balancing act Media companiesrsquo revenues are higher per consumer of traditional content than per consumer of online content if companies are to maintain their margins they will need to rewrite operational and cost models that are geared currently towards traditional content
it is difficult however to deny an overwhelming preference among consumers for the feel and tangibility of physical offline content among respondents who said they prefer to consume their media offline 83 percent said they preferred to watch tV and films on a tV than on a computer 73 percent said they prefer to read something physical than on screen However as in the previous waves of research a preference for online media is predominantly due to the availability and convenience of lsquoon-the-move contentrsquo
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011 You said that you prefer to consume media OFFLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
83 79 80 76 73
86 8985
57 60 56
49
20 13
19 13 15 14 14 14 11 5 8 8
I would rather watch I would rather read I prefer the I donrsquot have a fast I donrsquot want to make I donrsquot trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media
online media an enjoyable experience
You said that you prefer to consume media ONLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
93 89 91
83 80
72 73 73
63 57
65 63 62 63 64
54 56 61
51 46
28 31 33
14 10
14 14 16
I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that Irsquom wider choice of environmentally content I want at
I want free online itrsquos more convenient interested in content online friendly a better price
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011 You said that you prefer to consume media OFFLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
83 79 80 76 73
86 8985
57 60 56
49
20 13
19 13 15 14 14 14 11 5 8 8
I would rather watch I would rather read I prefer the I donrsquot have a fast I donrsquot want to make I donrsquot trust TV and films on my something physical experience of enough internet payments online due the quality of TV than computer than on a screen traditional media connection to make to security concerns online media
online media an enjoyable experience
You said that you prefer to consume media ONLINE Which if any of the reasons below apply
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
93 89 91
83 80
72 73 73
63 57
65 63 62 63 64
54 56 61
51 46
28 31 33
14 10
14 14 16
I can access I can access the I spend a lot of time It is easier to find There is a It is more I can access the content when content I want for on my computer so content that Irsquom wider choice of environmentally content I want at
I want free online itrsquos more convenient interested in content online friendly a better price
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Media Barometer 2011
Content worth paying for or not
Consumers are increasingly prepared to pay for content on the move (via smartphones and tablets) but are less keen to pay for access on their desktops
the number of consumers spending time viewing news online has gone up from 32 to 40 percent across fixed and mobile online media since wave 3
ldquoWhile certain professional and financial publications were embraced the jury is still out on more general titles indicating that the subscription paywall model is not yet firmly establishedrdquo Guy di Piazza Media analyst KPMG
What content would you be prepared to pay for 60 59
Film
s
45
52
55
79
35
50
Mu
sic
50
28 27
30
TV
28
33
27
Onl
ine
new
spap
ers
31
mag
azin
es
24
17
21
12
B
usi
nes
s n
ews
anal
ysis
8
11
15
Sp
ecia
list
19
blo
gs
advi
ce
8 8
13
On
line
gam
ing
18
12
6
2
4
GP
S s
ites
4
6 5
3
On
line
dat
ing
Wave 4 (March 2011)
Wave 3 (September 2010)
Wave 2 (March 2010)
Wave 1 (September 2009)
8
6 5 5
3 3 3 3
Co
mp
aris
on
sit
es
Exc
lusi
ve s
oci
al
net
wo
rkin
g s
ites
5
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
ldquo We will continue to see businesses drive consumers to their websites to earn revenue from advertising and where it is commercially sensible we will see content that is behind paywalls Both models have a place and can succeed given the right conditionsrdquo david elms Head of Media KPMG
it is still early days for paywalls but KPMGrsquos Media and entertainment Barometer detects that monetizing content that is currently free will not be an easy switch Just 2 percent of respondents say they would be willing to pay for access to content if a website or mobile content site they frequently use began charging Most consumers (83 percent) say the introduction of paywalls on sites they access frequently would prompt them to seek similar or the same content elsewhere
Six out of 10 consumers who said they may become a subscriber for online content would be prepared to pay for films via fixed or mobile devices mdash although consumers willing to pay for online gaming took a hit falling from 13 percent in wave 3 to 8 percent in wave 4 Surprisingly just 35 percent would pay for music compared with 50 percent in wave 3
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
Global events ndash how we keep in touch
The past few months have seen global catastrophes and life-changing events unfurlThe survey highlights that consumers turned to traditional media more than any other medium to keep up-to-date with the earthquake in Japan (89 percent) and the unrest in the Middle East (84 percent)
While tV remains the most important medium for current affairs especially for visual footage news agency websites were used by 21 percent to view the unrest in the Middle east and by 26 percent to view clips of the Japanese earthquake and tsunami newspaper websites were used by 14 percent to track the unrest in the Middle east and by 16 percent to catch up with events in Japan Youtube was used by 7 and 12 percent respectively 4 percent chose Facebook to monitor clips of both events
interestingly there was a rise in consumers spending more time on newspapernews portals in March 2011 mdash 40 percent of consumers viewed news online via fixed and mobile devices
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Media Barometer 2011
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt
about KPMG
KPMG is a global network of professional firms providing audit tax and advisory services We have 140000 professionals working together to deliver value in 146 countries worldwide
KPMG has a long-standing relationship with clients throughout the Media sector our experience of working with clients which range from major international entertainment companies to broadcast companies publishing companies and marketing services companies equips us with the unique insight and expertise that is necessary to address the challenges facing the industry today
Many Media companies are still operating from business plans and models which have their roots in the analogue past not the digital future they are grappling with the changes that now need to be embraced KPMG understands the dynamics facing the Media sector and works with clients to respond to these challenges
Whatever business challenges you face KPMG can advise you We have Media specialists who can challenge your business models identify strategies to maximise revenues drive operational costs out of your business and help ensure that you make the most of the opportunities facing you
Contact us
David Elms Partner Head of Media T +44 (0) 20 7311 8568 E davidelmskpmgcouk
Guy Di Piazza Media Analyst T +44 (0) 20 7694 1659 E guydipiazzakpmgcouk
Media Barometer 2011
copy 2011 KPMG LLP a UK limited liability partnership is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative a Swiss entity All rights reserved Third-party links are provided as a convenience to our users KPMG LLP does not control and is not responsible for any of these sites or their content KPMG LLP is obligated to protect its KPMGrsquos reputation and trademarks and KPMG LLP reserves the right to request removal of any link to our Web site
Introduction About this Survey Trend for smartphones Spend on apps
Tablets take off Whatrsquos going on in new media Streaming ndash as long as itrsquos free TV resilient to smart invasion gtgt
Online or offline Content worth paying for or not Global events About KPMG ltlt