television the accenture global broadcast consumer survey 2009

8/8/2019 Television the Accenture Global Broadcast Consumer Survey 2009

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Media & Entertainment Industry Group

Television: Entering theera o mass-ragmentationDigital content services ace the moment o truth

as consumers make their choices

The Accenture Global Broadcast Consumer Survey 2009


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ForewordWelcome to the executive summary o Accentures Consumer Broadcast

Survey 2009As companies in the video content

delivery value chain battle or revenues

amid the accelerating migration to

digital, they ace an ever-intensiying

need to track and respond to changing

consumption habits. Failure to do

this will mean playing catch-up

against other choicesand, at worst,

lead to a providers extinction in the

marketplace.

Even beore the current economic

downturn, the industry was enteringa sweeping, multi-year transormation

where entire business and operating

models would be challenged and

need to change. The onset o tougher

economic conditions is now making

a deep understanding o consumer

behavior all the more critical, by

threatening to suppress consumers

spending at the very moment when

they are choosing their preerred

content experiences.

Staking a claim

Put simply, now is the time or

providers to stake their claim to a

sustainable and long-term position

in the digital content landscape. To

help them do this, we have improved

and expanded our annual survey o

consumers views on digital content

delivery, interviewing almost twice as

many consumerssome 13,600across

13 countries, including ve countries

in Asia or the rst time. The result is

a truly global perspective, and our

deepest set o insights to date into

the way consumers behavior and

preerences are continuing to changeunder the impact o a rapidly-expand-

ing choice o media options.

The top-line message around the globe

is that while demand or television

content is continuing to grow, it is also

ragmenting aster than ever beore, as

consumers progress to rm decisions

on which consumption experiences

they preer. This means the industry is

acing a watersheda moment o truth

at which content services and business

models must either grab consumers

attention today and harness this rising

demand, or ace being let behind. The

overarching challenge acing providers

at this time is deceptively simple: to

create distinctive content experiences

that consumers preer and will return

to time and again.

Towards new business models

Our report helps to set the context or

new and successul business models in

this emerging environment, by linking

the behavioral ndings to potential

uture strategies and pitalls. We

believe this study will provide valuableguidance and ood or thought to all

participants as they continue to strive

or high perormance in this increas-

ingly challenging and ast-changing

industry. We hope our insights help you

make the right calls at this critical

point in the industrys development.

David Wolf

Global Lead, Accenture Digital

Transormation Practice



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Executive summaryConsumers make their minds up"We are starting to see the beginnings o cord-cutting where people, particularly

young people, are saying, 'All I need is broadband. I don't need video.'"

Glenn Britt, CEO at Time Warner Cable, quoted in the Wall Street Journal, 5 February 2009

For people who want to consume video

contentand that means most o

usthe choice o platorms, channels

and experiences is expanding by the

day. As a result, audiences are continu-

ing to ragment across dierent modes

o consumption. But i you think this

means television is dead, think again.

Our survey shows that while audience

ragmentation is continuing, viewing o

all contentincluding via the television

set, where most o the industrys

revenues are still generatedis growing.

The message is clear: a rising tide o

demand is liting consumption every-

where, across all platorms. In the

countries in our global survey where

annual comparisons are possible, the

proportion o people reporting that

they view more than six channels and

more than eight programs in a week

has risen in nearly every age range.

Meanwhile, interest in viewership o

content on PC and mobile is also up.

This nding echoes recent studies by

leading researchers such as Nielsen,

which recently ound that overall

viewing o video content via television,

Internet and mobile devices has

reached record levels in the US.

The result is that the traditional TV

experience is no longer the only game

in town, and is being orced to compete

in ways it has never had to beore.

The linear and proprietary connection

rom the service provider, via the pipe,to the TV has been cutturning the

television set into a large-screen device

that receives its inputs rom a growing

range o sources. The same deconstruc-

tion o the traditional value chain is

driving the emergence o an expanding

array o consumption platorms,

each delivering distinctive content

experiences. And our research shows

that consumers excitement is at its

greatest about platorms that give

them what they want: control o their

content.

The challenges oragmentation

In search o greater control, consumers

are looking beyond traditional

television, thereby challenging the

established revenue models o mass-

market advertising and mass-market

cable subscriptions. In the US in

October 2008, when satirist Tina

Fey impersonated vice-presidential

candidate Sarah Palin on Saturday

Night Live, only a third o the audience

watched the sketches on television

during the original broadcast, while

two-thirds viewed them later either

online or on a DVR.

As this ragmentation gathers pace,

consumers are increasingly ready and

able to make up their minds about

which media experiences they like

or, perhaps as oten, which ones they

dont. In every age range in our global

survey, there is a decline in the

1http://blog.nielsen.com/nielsenwire/online_mobile/tv-internet-and-mobile-usage-in-us-continues-to-rise/The Accenture Global Broadcast Consumer Survey 20093


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At the moment, though we have mobile TV reception, it hasn't earned us

evenue because we are simulcasting digital terrestrial services We are trying

o produce applications, or content, or programming, that is not currently

provided by digital terrestrial broadcasters and will create continuous viewing

on handsets.

Masayuki Hirata, CFO o Japanese operator NTT DoCoMo, July 2008

roportion o people replying dont

now to our questionsindicating that

hey have now experienced enough o

ome o the early oerings and are

orming denite opinions about what

hey like.

As consumers make these decisions,

heir loyalty to the content brands they

an consume via the expanding array

devices remains as strong as ever.

hey are ollowing their avorite

rograms rom network to networkashown by the act that about three-

uarters o our respondents (73 percent)

ay they watch the same or a greater

umber o networks than programs.

qually signicant, while youth still

eads the way in terms o adopting

ew modes o consumption, the older

enerations are now catching on. The

evel o interest in new PC and mobile

ontent experiences, and the degree o

willingness to pay or content, are now

growing as ast among consumers over

45 years old as among the younger

demographics.

So the marketplace or new content

devices and sources is both maturing

and ragmenting, as consumers make

rm choices beyond the traditional TV

experience, and as alternative modes

o consumption become a mainstream

part o everyday lie rather than an

occasional novelty. To capitalize on thisshit in consumer behavior, companies

oering new devices and sources or

content consumption need to capture

consumers attention and loyaltyand

do so now.

The content discoverybottleneck

However, as consumers navigate

through this ragmented landscape, our

research shows that they ace a

signicant bottleneck in discovering

content that they like but have not

seen beore. Innovative new content

delivery methods are gaining adoption

worldwide, providing more and more

choices or consumers, but their

success contrasts with the relative

ailure o new discovery mechanisms

with the oerings or locating content

currently lagging well behind the

advances in delivery methods.

The resulting bottleneck comes across

clearly in our research. Despite the

availability o a growing range o

alternative routes to nd content

recommendations, blogs, online

content stores and so onconsumers

are still using traditional means to nd

content they like. These methods

include adverts, listings, lead-ins,

andmost importantlyrecommenda-

tions rom riends and amily.

The Accenture Global Broadcast Consumer Survey 20095The Accenture Global Broadcast Consumer Survey 2009

These ndings underline the need and

opportunity to enhance the existing

discovery methods such as listings, to

make them more accessible, engaging

and personal. And consumers contin-

ued reliance on word-o-mouth refects

a urther actor: the critical importance

o involving online social networks in

content messaging, promotion and

discovery. Social networks are where

manyespecially youngerconsumers

discuss their opinions and experiences,

and it is increasingly vital to get themessage about new content out into

those communities.

Dierent markets, divergentattitudes to mobile

Many o our ndings apply across all

markets, but one o our more striking

discoveries is the existence o big

dierences in behavior between

emerging and developed content

markets (see inormation panel, page 7,

or our denition o these). Consumers

in emerging content markets tend to

be much more interested in seeing

television content reused on mobile,

whether that content is ull shows,

highlights or shortened versions.

Among other contributory actors, this

may refect higher levels o disillusion

in emerging markets with the existing

television oerings. In contrast, people

in more developed content marketsgenerally want mobile to provide them

with new content they cannot get on

traditional TV.

A urther contrast between emerging

and developed content markets can

be ound in the relationship between

consumers age and their interest in

new ways o consuming content. In

more developed content markets,

peoples interest in new content

consumption modes declines sharply

with advancing age. But less developed

content markets show a dierent

pattern, with the level o interest being

high among the younger demographics,

alling slightly in the middle age

groups, and then rising again among

the older demographics.

Revenue models: subscriptionis the most resilient

Turning to business models or content

delivery, our research shows that

subscription content revenues are the

most resilient, while spending on

physical content is the most at risk.

While we recognize that the current

economic conditions could be magniy-

ing the ndings, our study indicates

that consumers plan to spend less in

2009 on most types o media content,


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When we reer in this report to

"emerging content marketplaces" and

"developed content marketplaces", we

are dierentiating them based on the

number and longevity o the available

television services and providers. For

example, in the US and UKarguablythe most developed television markets

over-the-air broadcasting has been

available since the early 1950's, and

cable and satellite services have been

available since the 1960's and 1970's,

respectively. By these measures, most

countries in our survey are developed

markets.

Brazil, Malaysia, and Mexico are consid-

ered to be "emerging." Brazil is served

by one cable company (NET) which was

ounded in 1991, and one satellite com-

pany (Sky Brazil) which began service in

1996. Malaysia's satellite service (Astro)

was started in 1996, and its sole cableconcern (MegaTV) also started ser-

vice in 1996 but closed just ve years

later. Mexico has enjoyed over-the-air

television broadcasts almost as long as

the US has, but pay services like cable

and satellite reached just 23% o the

population in 2007. By contrast, in 2006

82% o US households subscribed to a

pay TV service.

Emerging markets have less legacy

inrastructure, both in terms o technol-

ogy and in terms o consumer behavior.

As has been seen in other industries,

emerging markets tend to "leaprog"

more developed markets, embracing

new technologies and business modelsmore fexibly.

Emerging and developed contentmarketplaces: our denition

The Accenture Global Broadcast Consumer Survey 20097The Accenture Global Broadcast Consumer Survey 2009

ut intend to make no net change in

heir spending on content subscrip-

ons. This nding suggests that

ougher economic conditions may

ow adoption o some products and

ervices, but not alland may also

ccelerate the move rom physical to

igital media. It also indicates that

models with ewer consumer decision

oints will tend to be more successul.

and consumers are more

willing to payven more importantly, the proportion

consumers willing to pay or some

ype o content is continuing to

seup by 12 percentage points on

008 in the countries where we can

make an annual comparison. About

al (49 percent) o consumers are

willing to pay or programming rom a

digital service, while almost as many

(40 percent) would preer to watch ads

and pay nothing.

As well as being increasingly willing to

provide some orm o value in return

or content, consumers are making

value-based decisions around how

much they are prepared to pay or

what content via what device. So

providers have growing opportunities

to spur consumer adoption and buildrevenuesand they can do so by

enabling varying business models that

make fexible and competitive use

o content pricing packages, or

advertising, or a combination o both.

Going orward, as consumption habits

continue to ragment and as consumers

continue to make value-based

decisions about how much money a

particular content experience is worth,

there will be no one-size-ts-all

revenue model.

Overall, the ndings rom our 2009

Global Consumer Broadcast Study

underline that consumers migration to

new content delivery oerings is

acceleratingwhile also highlighting

that providers must move ast to seize

their share o the resulting revenues. It

is critical to capture consumer loyaltyin the markets current phase o

development, or risk acing a hard

battle to recapture the lost ground. We

will now review the detailed ndings

underpinning our conclusions.

Consumers are getting increasingly demanding. They want to get the latest TV

hits ahead o anyone else and, now, mio TV [SingTels IPTV service] is lling this

gap with our latest oering. Who doesn't want to be a water-cooler' hero? We

ee this as the next big wave o content consumption in Singapore."

llen Lew, CEO, Singapore Telecom


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The clearest top-line nding rom our

survey o more than 13 000 consumers

in 13 countries is that the audience

or television content is continuing to

ragment across devices, brands, and

behaviorbut is also continuing to

grow in overall size In those countries

where we can make an annual compari-

son, consumption o video content has

risen during the past year in virtually

every age range and on all ormats,

including via the traditional TV set.

More channels, more programs

These headline ndings are illustrated

in Figures 1 through 3. Across our

global sample, the proportion o people

viewing six or more channels a week

has grown in every age range except

the under-25s, where it is static (see

Figure 1).

A similar pattern emerges on consump-

tion o programs, with the proportion

watching eight or more programs a

week rising across nearly all age

ranges, and the smallest increase

occurring among the under-25s (see

Figure 2).

Despite the prolieration inand

increased quality oPC and mobile

content services, overall television

viewership is rising year-on-year,

with channel and program viewershipincreasing astest among older

consumers. And emerging, non-

traditional platorms are also partici-

pating in this rise, with viewership o

content on PC and mobile also up in

most markets in 2009.

This nding echoes Nielsens recent

quarterly A2/M2 Three Screen Report,

published in February 20092. Nielsen

ound that viewing o video on

television, Internet and mobile devic-

esthe three screensis at record

levels, with the average American

consumer now watching more than

151 hours o TV per month. A similar

report done by SevenOne Media on the

German market ound that in the rst

quarter o 2009, consumers viewed 235

minutes a day o television, up eightminutes per day rom the same period

in 20083. The Nielsen report also ound

that, except or the teenage years,

viewing o traditional television rises

with age, while the use o video on the

Internet peaks among young adults,

and viewing mobile video is highest in

the teen years.

Television: Entering the era omass-ragmentationFigure 1. 2009 v. 2008 change in viewership o 6+TV channels, by age

Figure 2. 2009 v. 2008 change in viewership o 8+TV programs by age

45-5435-4425-34Under 25 55+ years

50%

40%

30%

20%

10%

0%

-

i

45-5435-4425-34Under 25

2009

55+ years

50%

40%

30%

20%

10%

0%

2008

i

l

I

2 http://blog.nielsen.com/nielsenwire/online_mobile/tv-internet-and-mobile-usage-in-us-continues-to-rise/3 http://www.sevenonemedia.de/unternehmen/presse/pm/index.php?method=pmview&pmid=26913&plattorm=som_de

The Accenture Global Broadcast Consumer Survey 2009 9


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2 00 9 2 00 82 00 9 2 00 8

Mobile: growingbut missingtrick?

While our own interviewees responses

so conrm this rising viewership, a

oser look at our ndings on mobile

elevision reveals a more complex

icture. As Figure 3 shows, the propor-

on o people reporting that they

watch our or more mobile television

rograms in a week is markedly higher

n Brazil and Mexico in 2009, and little

hanged in Germany, Italy and Spain.

More worryingly, in a number o

ountriesincluding the US, UK and

rancethe proportion watching our or

more mobile programs a week is actually

ropping. This suggests that the existing

ervices are ailing to suit consumers

eeds or tastes, and thereore losing

momentum ater consumers early burst

enthusiasm. This is likely due to a

ariety o reasons in dierent countries.

n the US, or example, the root causes

re probably quality o content, the use

subscription business models, and the

act that providers are selling a service

ather than content.

Consumer excitement aboutplatorms

This underlines the need to give

consumers what they are looking or

rom a specic platorm. And providers

delivering content to the PC are

currently doing a better job o meeting

these preerences than their mobile TV

counterparts.

Looking rst at consumption via the PC,

Figure 5 shows that the proportion o

people who enjoy watching content on

their PC is continuing to rise, with

Brazil and Mexico seeing the astest

increases. In contrast, the level o

interest in watching content on the PC

is now rising much more slowly in more

developed content markets such as the

US and Germany.

However, while most consumers are

ready and willing to view content on

the PC, they do not just want more o

the same programming that they get on

their traditional TV set. Instead,

Figure 5: Proportion who would enjoy watching some type o content on a PC

The Accenture Global Broadcast Consumer Survey 2009 110 The Accenture Global Broadcast Consumer Survey 2009

gure 3: 2009 vs. 2008 change in viewership o 4+ mobile programs by country

consumers rst preerence on the PC is

or content specically created or the

PC platorm, ollowed by public service

inormation (see Figure 4). Only ater

that do ull TV shows rate a mention.

Around the world, providers such

as YouTube, Alic, BBC iPlayer and

Youku.com are winning consumers over

by providing the kinds o content they

are looking or on their PC, specically

ocusing on new content or the PC and

amiliar television programming. Someproviders are targeting cross-border

nicheswitness the launch in Decem-

ber 2008 by Asia-based TV-Desi and

JumpTV o a new IPTV service delivering

live South Asian television content to

subscribers in the US and Canada.

Meanwhile, some other initiatives have

a more mass-market ocus. Pay TV

operators in the US are currently

discussing an industry-wide TV

Everywhere service that would put all

their collective programming onto the

web and enable consumers to access it,

so long as they can prove they subscribe

to pay TV.

depends on what they deliver

Mobile TV service providers in many

countries are not generating the same

levels o traction as their counterparts

delivering content via the PC. To date,

most mobile video oeringswith

notable exceptions such as YouTube on

the Apple iPhonehave tended to ocus

on duplicating a broadcast experience,

or on providing limited clips o

television shows. However, ull TV

programs and clips are among the

mobile oerings that consumers say

they are least interested in.

Consumers enjoyment o watching

content on their mobile device varies

widely between dierent territories.

While interest in some countries is still

rising strongly, in several others it is

fat (see Figure 7). There is even a steep

drop in interest in mobile content in

the UK, where the available products

ocus on clips and highlights.

New Content for Platform42%

37%

31%

25%

22%

16%

Public Service Information

Full TV Shows

Content I Create

Highlights of Programs

Shorter Versions of Programs

li I

i

Figure 4: Proportions wanting to watch specic types o content on their PC

Public Service Information25%

15%

15%

12%

11%

11%

New Content for Platform

l

Content I Create

Shorter Versions of Programs

Highlights of Programs

Full TV Shows

Figure 6: Proportions wanting to watch specic types o content on their mobile

ountry 2009 2008

obal 13% 13%

S 10% 15%

K 9% 13%

ance 10% 15%

ermany 8% 7%

aly 14% 16%

pain 15% 12%

azil 18% 6%

exico 22% 9%

Country 2009 2008

US 56% 50%

UK 60% 57%

France 76% 61%

Germany 59% 55%

Italy 83% 65%

Spain 77% 75%

Brazil 92% 58%

Mexico 89% 65%


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2 00 9 2 00 8

4 The Accenture Global Broadcast Consumer Survey 2009

and control

s well as wanting the content they

ve, people are also looking or

atorms and devices that give them

reater control over it. For most

enresespecially soaps and liestyle

rogramsthere is an increase in 2009

the proportion o consumers who

reer watching on-demand. However,

t the same time the proportion who

reer watching many genres live,

otably reality shows and sports, is

rowing even more quickly.

hese ndings are not contradictory.

hey conrm that what people want is

reater control over all their content,

o they can t their consumption o

ach genre around their own schedule

nd liestyle. This is underlined by the

act that consumers in most countries

re getting more excited about plat-

orms that let them watch what they

ant, when they want (see Figure10).

Like the ndings we described earlier

on consumption o mobile TV programs

(Figure 7), these responses carry a

coded warning or providers. O the

countries tracked in our annual

comparison, consumers level o

excitement about being able to access

content whereever and whenever they

want it is increasing astest in Brazil

and Mexico. Excitement is rising much

more slowly in the Western European

markets and the US, which have more

robust traditional TV oerings.

This suggests that the initial deploy-

ments o some new consumption

experiencesparticularly mobileare

no longer energizing consumers as

much as they used to. There is also a

longer-term implication that excite-

ment with these new services may

decline over time as amiliarity grows,

the novelty wears o and preerences

take hold. In some cases the progres-

sion rom novelty to amiliarity may

have positive eects, such as PC-based

contents move into the mainstream.

But amiliarity can just as easily slide

into disillusionmentsomething that

providers must take pains to avoid.

Pay or content, or watch ads?A near-even split

While consumers willingness to pay

or content is continuing to rise, they

know there are various ways or them

to provide that value. Consumers

preerred option globally is to pay

money or content, closely ollowed by

paying nothing or content but having

to watch ads in return or receiving it

(see Figure 11).

In some cases, providers are exploiting

this split by charging or content that

ordinarily would have been ad-support-

ed. For example, ITV in the UK recently

entered into an arrangement with

Virgin Media to provide over 500 hours

o content to Virgins TV Choice, a paid

subscription VOD service. Estimates are

that ITV could gain up to 5 million

igure 9: Proportion who are willing to pay or some type o content

Spotlight on

Payment optionsConsumers willingness to pay or

unlimited downloads rom a particular

network is growing aster than other

payment options. Paying or unlimited

downloads rom any network is still the

single most oten preerred way to pay

(25 percent), but downloading unlim-

ited programs rom a single network

has increased by 10 percentage points

to 14 percent in 2009. This growth

refects increased interest rom Brazil-

ian and Mexican consumers, as well

as interest rom Malaysian consumers

who were not part o the 2008 study.


ountry 2009 2008

S 35% 28%

K 37% 36%

ance 44% 42%

ermany 39% 26%

aly 49% 50%

pain 41% 42%

azil 63% 46%

exico 69% 37%


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Subscription models dey the downturnWe are seeing early signs o less DVD usage with some subscribers who arealso watching instantly as compared to subscribers who only receive DVDsTime will tell whether this substitution eect is an attribute o early adoptersor a mainstream behavior.

Netfix CEO Reed Hastings, quoted by arstechnica.com, 27 January 2009

Figure 12: Consumers purchasing plans or our main content ormats

41%

Dont Purchase

12% 12% 35%

Purchase More Purchase Less Purchase Same

Subscription Purchase

54%

Dont Purchase

8% 13% 25%


Download Purchase

20%

Dont Purchase

13% 19% 48%


DVD/CD Purchase

56%

Dont Purchase

9% 12% 23%


Mobile Purchase

Our research shows an increase in theproportion o consumers globally who

are willing to pay or some type o

contentup by 12 percentage points

overall, rom 37 to 49 percentbut at-

titudes and behaviors around paying or

and consuming content remain mixed.

Specically, spending on subscriptioncontent is the most resilient to econom-

ic change, while physical content is the

most at risk. For most types o media

content, the proportion o consumers

intending to spend less exceeds the

number intending to spend more. In

contrast, with subscription content the

proportions expecting to spend more

and less are precisely in balance.

Figure 12 compares the consum-ers spending intentions or content

purchases in our main ormats

subscription, download, physical and

mobile. Spending on DVDs and CDs looks

set to be hit hardest by the economic

downturn, with 19 percent o consumers

expecting to spend less and 13 percent

more.

US$7.4 million) a year in revenue

ithout jeopardizing the standard ad

evenue or the same programs4.

mong those willing to pay, subscrip-

on models beat pay-to-play models

n every age range, with paying a ee

or unlimited programming proving

much more popular than pay-per-

pisode or pay-per-season. This

nderlines the resilient nature and

alue o subscription models (see

ormation panel). In terms o ageemographics, younger consumers are

more likely to have made up their

minds which model they preer, with

he lowest proportion o dont knows.

cross all age ranges globally, about

al (49 percent) o consumers are

willing to pay or programming rom a

igital service, while almost as many

40 percent) would preer to watch ads

nd pay nothing. The willingness to

ay is particularly high among

onsumers rom higher-adoption

ountriesMexico (69 percent),

Figure 11: Willingness to pay or content with money or by watching ads, by age

Under 25 25-34 35-44 45-54 55+

50%

60%

70%

40%

30%

20%

10%

0%

Pay(Su

bnet)

Payaf

eefor

unlim

itedp

rograms

Payfor

unlim

itedshow

s

froman

etwork

Payp

erepiso

de

Payforas

eason

ofash

ow

Payn

othingb

ut

watch

ads

Othe

r

Dontknow


2 00 9 2 00 8

gure 10: Proportion who say Im excited about watching what I want when I want

http://blog.nielsen.com/nielsenwire/online_mobile/tv-internet-and-mobile-usage-in-us-continues-to-rise/

ountry 2009 2008

S 16% 15%

K 8% 13%

ance 15% 16%

ermany 13% 8%

aly 31% 26%

ain 21% 18%

azil 37% 28%

exico 46% 16%


11/17

Malaysia (68 percent) and Brazil (63

ercent). In these higher-adoption

ountries, willingness to pay is almost

ouble the preerence or watching

ds. In contrast, in the US and Europe,

willingness to pay is about the same as

he preerence or watching ads.

o, as well as being more open to new

ontent experiences, cconsumers who

ave less experience with traditional

V oerings in their country are also

more enthusiastic about paying orwhat they perceive will be a higher-

alue digital content service. In

ontrast, it seems that the higher

egree o satisaction with the

elevision oerings traditionally

vailable in Europe and the US means

onsumers perceive less benet in

aying a premium.

Consumers are rapidly

making their minds up about

latorms

respective o whetheror how

onsumers pay or content, one o the

clearest ndings rom our 2009 study

is that they are now orming rm

opinions about new content delivery

and consumption models. Whats more,

they are making these choices very

quickly, refecting the extent to which

consumers have become more comort-

able with their digital content choices

in the past year.

As Figure 13 shows, a comparison

between 2008 and 2009 clearly

illustrates this shit, with ewer peopleresponding dont know when asked

whether they enjoy viewing PC or

mobile contenta trend repeated

across many o our ndings, particu-

larly in more developed content

marketplaces. The ormerly ambivalent

or conused dont know consumers

rom 2008 are now making rm

decisions. So consumers are progress-

ing to rm choices on how they eel

about new content capabilities, and

making those they preer part o their

everyday liestyle.

In our view, this means providers now

have only a narrow window o oppor-

tunity in which to make their best

cases to consumers or ace having to

play catch-up. When consumers reject

products because they do not match

their expectations or liestyles today,

those products will be that much

harder to sell in the uture, even when

they improve. The marketplace or new

content devices and sources is matur-

ing, and while it will not be shaped

overnight, those providers that pass upthe opportunity to win consumers over

now will ace a tough battle to win

back the lost ground.

Discovering new content:

a major bottleneck

However, as consumers make their

choices between the various content

experiences on oer, they ace a major

barrier in trying to discover new

content that they like. Despite an

expanding range o alternative ways to

nd contentpersonal recommenda-

tions, blogs, online content stores, and

gure 13: 2009 vs. 2008 change in proportion saying dont know about enjoying

C or mobile content

2009 2008

Li i

i l

l

i

li

C

Mobile

Our audience was telling us they wanted to nd content elsewhere than justn TV. For us it was a case o either sitting back and watching as things evolvedround us or getting involved at the very beginning and helping drive and shapehe change.

arah Rose, Head o VoD and Channel Development, Channel 4

Spotlight on

Methods or discovering new contentConsumers use a range o tools to

discover new programs, including TV

ads/promos (40 percent), channel sur-

ing (33 percent), looking at avorite

channels (31 percent), riends/amily

(30 percent) and TV listings (28 per-

cent). Newer methods such as blogs

(8 percent), web content stores

(6 percent), mobile ads (5 percent) and

DVR/PVR recommendations (2 percent)

are much less pervasive.

While TV listingswhether in a news-

paper or on a PCare not a top method

or nding new programs overall,

they emerge as the best source orinormation about new programs when

consumers are asked to pick a top

source (31 percent), particularly or

older consumers (41 percent o those

over 55 years old). In contrast, the

primary reerence point or consumers

under 25 is riends and amily, cited

as the best source by 24 percent o

respondents in this age group.



12/17

While youth are still at the oreront o

digital transormation, older consum-

ers interest in PC and mobile content,

excitement about digital transorma-

tion and willingness to pay or down-

loadable content are growing just as

quickly as their younger counterparts.

In countries where people eel less

comortable with the traditional TV o-

erings, such as Brazil, Mexico and Ma-

laysia, there are smaller gaps in interest

and adoption between the younger

and older segments. So older consum-

ers should not be ignored. They also

exhibit dierent tastes, preerringor

examplepublic service inormation via

mobile, while younger consumers are

relatively more interested in seeing ull

TV episodes on PCs.

Spotlight on

Older consumers in emerging markets

o onconsumers are still primarily

sing traditional means to nd content

hey like (see Figure 14). These include

dvertising, listings, lead-ins and

ecommendations rom riends

nd amily.

he act that so ew customers rely on

utomated recommendations suggests

hat the tools on oer to help consum-

rs nd new programs are ailing to

eep pace with advances in content

elivery (see inormation panel). Eortso close this gap between discovery

nd delivery are refected by a number

product innovations currently under

way in the interactive programming

uide (IPG) space. For example, in

anuary 2009 Macrovision unveiled a

next-generation IPG designed to

nable access to broadcast, personal

nd premium content rom one screen.

Macrovision is looking or manuactur-

rs to build devices using its IPG as a

entral source or nding and playing

elevision shows, Internet-delivered

ideo and music, alongside content

rom consumers personal media

braries.

addressed through socialnetworking

In Accentures view, providers can help

consumers overcome the content

discovery bottleneck by enhancing

existing methodslistings, program

advertising and so onwith targeted

messages to improve engagement, and

by making them more powerul and

intelligent.

They could also look to deploy auto-

mated recommendations in a moreseamless manner, and leverage

consumers relationships among riends

and amily by incorporating social

network components into the viewing

experience. Crucially, these new

methods should suggest new content

rather that urging it on consumers,

since any eeling o hard sell could be

counterproductive. One recent move to

harness the power o social networking

was made in March 2009 by the online

DVD and Blu-ray rental service Netfix,

when it enabled its customers to use

Facebook Connect to share their

ratings o movies.

Also, while social networking provides

one means or both acilitating and

participating in the conversation fow,

urther opportunities lie in more

eective use o metatdata to enable

consumers to search and nd content

across platorms, and in the creation o

a context-aware portal or online

environment that understands the

consumers geographical location,

devices, service preerences, and so on.

Developing digital markets aremore ertile ground or PC andmobile

A urther signicant nding o our

2009 survey is the identication o big

dierences in behavior between more

developed and less developed content

markets. In general, consumers in

countries with a track record o less

robust traditional content oerings are

bigger and more enthusiastic consum-

ers o new digital content products

and services.

gure 14: Top Sources o Infuence When Finding New Programs

+

0% 10% 20% 30% 40% 50%

d/Promo on TV

hannel Surfing

Watching Favehannel

iend/Familyember

V Listings/EPG

rint Articles

ont Know/None

og/Forum Post

VR Recommend.

obile Ad/Promo

nline Store Rec.

- +



13/17

In the vast majority o the countries in

our survey, parents are more excited

about digital consumption opportunities

than non-parents (see Figure 17), with

only South Korea and Singapore

bucking this trend. The gap is biggest in

the US, Brazil and Mexico, illustrating

the extent to which this pattern appliesamong consumers in both developed

and emerging content markets. Parents

higher enthusiasm may be because they

learn about digital content consump-

tion rom their tech-savvy children, and

also because digital content services

meets their distinctive needs, such as

time-shiting to consume content

while children are sleeping.

Perhaps even more importantly,

parents higher degree o excitement

is refected in real revenue. In every

country in our survey except Malaysia

and Japan, consumers with children are

substantially more willing to pay or

content than those without children

(See Figure 18). In the US, or example,over hal (51 percent) o parents are

willing to pay or content, compared to

just 28 percent o non-parents. And in

Brazil, the gap is 10 percentage

pointswith 67 percent o parents

being willing to pay, against 57 percent

o non-parents. Interestingly, the

proportion voicing a preerence or

watching ads and paying nothing is

similar between the two groups.

These ndings indicate a clear

correlation between an individuals

amily status and revenue potential.

More generally, they illustrate the

potential value o a deeper understand-

ing o consumers personal liestyles

in developing and targeting content

services and marketing messages.

Spotlight on

Parent power

No chi ldren Children present

Figure 17: Proportion who are excited aboutdigital consumption opportunities

Figure 18: Proportion who are willing topay or digital content

or example, consumers in Malaysia,

razil and Mexico are the most likely

our global sample to enjoy PC and

mobile content, the most willing to pay

or digital programming, and the most

xcited about digital consumption

pportunities. Other studies support

hese ndings. In late 2008, research

rm Frost & Sullivan orecast that the

PTV subscriber base in 13 countries

cross Asia-Pacic would rise rom 4.1

million in 2007 to 22.4 million by the

nd o 2013a projected compoundnnual growth rate o 32.7 percent5.

he momentum behind new consump-

on modes in emerging economies

worldwide is evident in the responses

o a number o our questions. As

gure 15 shows, consumersand

specially older consumersin develop-

g markets are more prepared to enjoy

ontent on their mobile devices than

re their counterparts in the US.

and are proving it by spendingmoney on mobile content

Our research also highlights dierences

between what consumers in less

developed and more developed content

markets want to watch on mobile.

People in emerging content markets

are much more interested in seeing ull

TV content on mobile; those in more

developed content markets want new

content they cant get on TV. Again,

other studies have reached similar

conclusions. In early 2009, a Nielsen

online survey ound that next genera-

tion devices such as video-enabled

handsets were more popular among

consumers in emerging markets,

particularly in Asia, than in Western

countries6.

Our own research shows that, as well

as saying they want more mobile

content, consumers in emerging

content markets are putting their

money where their mouth is by being

more ready to purchase mobile video

content or download. For example,

consumers in Malaysia and Mexico

especially the older demographicsare

well ahead o the global average in

actually buying downloadable mobile

content (see Figure 16).

The ndings by age are also signicant.

While the more developed content

markets in the chart exhibit a sharp

decline in interest as people get older,

the emerging content markets seeinterest actually reviving among older

consumers over 55 years o age, ater

dipping in middle age between the ages

o 45 and 54.

So, while youth still leads the way

globally, providers should not overlook

the opportunity among older consum-

ers a demographic group who are

showing increasing interest in new

content experiences, and whose needs

are oten being overlooked by provid-

ers. Our research suggests that these

areas o market opportunity include the

45-plus demographic in the US.http://www.circleid.com/posts/iptv_subscribers_asia_pacic/

h tp://www.medianews line.com/news/ 121/ARTICLE/3766/2009- 01-03.html


45-5435-4425-34Under 25

Global

55+ years

0%

0%

0%

0%

0%

0%

0%

0%

%

Malaysia Mexico Singapore US

l l

l i

r

gure 15: Proportion who would enjoy content or a mobile device

gure 16: Proportion currently purchasing downloadable content

Country No Children Children

US 11% 23%

UK 10% 19%

France 12% 22%

Germany 7% 15%

Italy 28% 36%

Spain 18% 27%

Australia 11% 18%

Japan 7% 14%

Brazil 32% 43%

Mexico 40% 51%

S. Korea 28% 27%

Singapore 25% 21%

Malaysia 30% 34%

Country No Children Children

US 28% 51%

UK 34% 45%

France 40% 52%

Germany 37% 45%

Italy 46% 55%

Spain 38% 45%

Australia 37% 50%Japan 31% 31%

Brazil 57% 67%

Mexico 67% 71%

S. Korea 49% 57%

Singapore 61% 61%

Malaysia 67% 69%

lil

45-5435-4425-34Under 25

Global

55+ years

0%

0%

0%

0%

0%

0%

0%

0%

%

Malaysia Mexico Singapore US

rr r


14/17

Strategies or high perormance ina ragmenting marketplaceAs end user media consumption patterns change, both telcos and broadcastersace a window o opportunity to invest and/or collaborate to meet the evolv-ing user demand Competition combined with a cap in consumer's willingnessto pay or entertainment and communications services had led to less protableservice bundles. Having said that, the emergence o a change in media consump-tion habits points the way to a brighter outlook or the industry.

Yiru Zhong, analyst or Frost & Sullivan's Inormation & Communication Technologies group, February 2009

Scoping the landscape

Our 2009 Global Consumer Broadcast

study shows that peoples perceptions

and consumption o digital content have

evolved dramatically in one short year.

And the detailed ndings on consumers

changing behavior provide many

potential lessons and insights or

providers developing and ne-tuning

their strategies.

Consumers in the study demonstraterising awareness and increasingly strong

opinions regarding many aspects o

digital consumption, as well as growing

enthusiasm or viewing content on PCs

and mobile devices. This evolution is at

its astest in Mexico and Brazil, and is

very strong in some o the new countries

included in the 2009 study, particularly

Malaysia. Overall, these trends transcend

all countries and age groups.

What also shines orth throughout

the ndings is the sheer diversity o

behaviors, tastes and aspirations

expressed by dierent consumers odierent ages in dierent markets. This

indicates that, as consumers awareness

and experience o digital content

services grows in each country, the

ability to provide the right type o

content via the right device to each

age group will remain critical to

consumer adoption.

and creating your route-map

So, what general recommendations

can we draw rom our research or

companies seeking to achieve highperormance by generating revenues

rom the delivery o TV content?



15/17

While there may well be specifc

essons and messages or your own

usiness, we have identifed our that

we think will impact all providers.

hese are:

1. Help your viewersfnd the content they

will enjoy

The prolieration o content options

across devices is overwhelming to

consumers, and is leading them to

stick close to those brands they like

today. The industry must break this

bottleneck currently acing consumers

and help them to discover new

content.

Consumers use their riends and

amily as advisors or content

discovery. You can gain a competitive

edge by making it easier or viewers

to tap into this trust network, by

linking them with their riends and

amily and their wider preerence

universe through web and social

network integration.

Recommendations and targeting are

must-haves: existing marketing

mechanismsprogram advertising,

listings and so onshould be made

more powerul, interactive and

intelligent.

Accessibility and navigability can be

urther boosted by creating a persona

that spans screens, enabling you to

better understand cross-platorm and

multi-platorm habits. Understanding

how someone uses PC, mobile, and

televisionand how they use those

devices dierentlyis critical to

dening uture products. It also helps

that users eel that their content

is available to them wherever they are.

2. Streamline yourproduct developmentliecycle, using real

data to drive decisions

Reduce the cost o experimenting on

new ideas and developing new

products. Many o our clients have

ound success in creating product

actories that leverage shared

rameworks and reusable processes,

allowing new product releases to

ocus entirely on a new consumer

eature set.

Aggregate customer usage data, and

mine it to identiy new trends and

needs in your customer base. Use this

to orm a baseline rom which to

measure the eectiveness o any

new products, and be sure your

current products are as eective as

they can be.

Invest in analytics and customer

relationship management to drive

improved product adoption. The more

you know about your consumers, the

easier it will be to convince them

they need your latest oering.

3. Create and automatea true Digital ContentSupply Chain

Consumers want specic, appropriate

content that works or each device

and what they think is appropriate

varies rom device to device and

market to market.

This increases the pressure on content

supply chains, so you must increase

your development, workfow andprocessing capacity to allow or

additional content types and volumes.

Managing the complexity o diverse

ormats, device specications, and

metadata is too much or a manually-

driven pipeline.

Whendefningnewcontentproducts,

consider both the need to match

consumer expectations o a device,

and the need to shit those expecta-

tions toward your goals.

4. Support multiplebusiness modelsadvertisement, purchase,and subscriptions.

Consumers are open to all kinds o

payment models, so there is room or

all o them or dierent device/

content combinations in dierent

markets and demographics.

To make the most o innovation in

services, you will also need innova-

tion and fexibility in revenue models,

working dierently or dierent types

o content on dierent devices.

You will also need to maintain a rm

grasp and understanding o your

content rightsits the oundation on

which digital business models are built.

Just as video entertainment is moving fuidly across various screens, so is socialmedia. We've seen that consumers nd increased value through shared enter-ainment experiences and want to explore and deepen these experiences through

communities o interest, and that's what's social TV will ultimately do."

ason Blackwell, senior ABI Research analyst



16/17

The key: maintain a relentless ocus on the consumer

At root, the key to success in the digital content industry remains keeping closeo the consumer, understanding what they want, and delivering on their needs.

This means constantly striving to understand the consumer and their behavior,nd leveraging consumer data to speed up product development and bring theight products and services to market quickly and eciently. And this in turn

means ensuring your supply chain is in order.

Todays ragmenting audience presents many opportunitiesand tomorrowswinners will be those players that achieve high perormance by recognizing andcting on those opportunities today. We hope that this study will help you to

do that.

urvey methodology

he Accenture Broadcast Consumer

urvey 2009 is based on a detailed,

uestionnaire-led research study

nvolving over 13,600 consumers

cross 13 countriesup rom the total

7,000 respondents in eight countries

nterviewed or this similar survey last

ear survey. As in previous years, we

ook pains throughout the research

rocess to elicit the rank views o

ach interviewee, through balanced

nd detailed questioning designed

o reveal their true perceptions,

spirations and consumption habits.

The preceding summary presents some

o the key indings rom the study, as

well as highlighting the implications

or media, technology and communica-

tions companies operating in this

dynamic and ast-evolving sector.

For the irst time this year, the study

includes consumers in ive countries in

Asia alongside the existing eight rom

the Americas and Europe, enabling

global comparisons and c onclusions

to be made.

The study was undertaken online,

using a common set o questions to

aid comparability. The 13 countries

surveyed were Australia, Brazil, France,

Germany, Italy, Japan, Malaysia,

Mexico, South Korea, Singapore, Spain,

the United Kingdom and the United

States. Between 1,000 and 1,100

adults aged 18 and above were sur-

veyed in each country, and the results

were segmented by gender and age.

8 The Accenture Global Broadcast Consumer Survey 2009


17/17

Copyright 2009 Accenture

All rights reserved.

Accenture, its logo, and

High Perormance Delivered

are trademarks o Accenture.

About the Accenture

Global Broadcast ConsumerSurvey 2009

The survey was ielded or Accenture

by Opinion Research Corporation (ORC)

at the beginning o 2009. All eorts

were made in good aith to secure a

balanced and representative sample o

respondents across all countries.

Authors: Matt Boggie and

Ross Sonnabend

Contributors: Greg Douglass, Julia

Martin Wright, James Scott, Marco

Vernocchi, David Wol and others rom

Accentures Media & Entertainment

practice.

www.accenture.com/mediaandenter-

tainment

About Accenture

Accenture is a global management

consulting, technology services and

outsourcing company. Combining

unparalleled experience, comprehensive

capabilities across all industries and

business unctions, and extensive

research on the worlds most success-

ul companies, Accenture collaborates

with clients to help them become

high-perormance businesses and

governments. With more than 181,000

people serving clients in over 120

countries, the company generated net

revenues o US$23.39 billion or the

iscal year ended Aug. 31, 2008. Its

home page is www. accenture.com.

television the accenture global broadcast consumer survey 2009

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