Monday, September 5, 2011

Online Video Eats Away At Broadcast TV

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Viewers are spending more time streaming TV programming online and slightly less time watching scheduled broadcast TV, according to a new study from Ericsson ConsumerLab.

Some 38% of respondents to Ericsson’s “TV & Video Consumer Trend Report 2011” reported watching Internet-based on-demand TV more than once per week, while about 80% watch broadcast TV more than once per week.

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The study also shows that social media usage has impacted the way we watch TV. More than 40% of the respondents reported using social media on various devices such as smartphones and tablets while watching TV.

“On-demand viewing is increasingly popular, while broadcast viewing has remained as the most common way for people to watch TV,” Ericsson ConsumerLab senior advisor Anders Erlandsson said in a statement. “People want both broadcast and on-demand viewing to be available. TV and video have not been negatively affected by the internet in the same way that print has; we just watch TV in many more ways than we did before.”

Data was collected in the United States, Australia, Austria, Brazil, China, Germany, the Netherlands, Russia, Spain, Sweden, Taiwan, the United Kingdom and South Korea. In all, 22 qualitative and 13,000 quantitative interviews were conducted representing almost 400 million consumers.

Canary...meet coal mine.

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I love it when capitalism has some true value and meaning.

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2000 Feet Above Hoover Dam

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Yes, this is our pilot

I wonder if she's old enough for a driver's license?

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Chopper Joni

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Saturday, September 3, 2011

Thursday, September 1, 2011

Is there really that big of change coming?

When you read where Forrester and BIA/Kelsey both predict by 2015-2016 there will be shift in the majority of ad spending from traditional to digital media, then you see this below, it's difficult to reconcile to two. Are we really going to see such a dramatic change in spending over the next 3-4 years? 

 

Cable Experiences Little 'Breakage,' Advertisers Not Cutting Cords
by David Goetzl, Yesterday, 5:29 PM

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A Wall Street report Wednesday says that even with a bumpy economy, advertisers aren't pulling back on spending commitments made in the TV upfront market, while the scatter business remains robust. Also, national cable ad spending for 2011 is estimated to increase by 12%.

With upfront agreements being wrapped now, there is "little apparent breakage so far," according to Credit Suisse analyst Spencer Wang. Also, the scatter market for national TV has broadcast networks commanding between 10% and 25% hikes over upfront levels, with cable networks between 5% and 12%.

More broadly, Wang noted that the economy appears to be weathering the turmoil enough to prevent a change in a forecast of 2% growth for the U.S. ad market this year. That's largely fueled by the search (up 15%), online display (14%) and national cable (12%) sectors.

He did, however, suggest that a further economic decline might cause a downgrade in growth projections for 2012 -- from a 3% uptick to 2% -- even in a year with an Olympics and presidential campaign. One reason for the prediction is a belief that the ratio between ad spend and GDP will remain about the same next year as this.

As Wang touted the cable ad market, he projected the cable upfront pulled in a combined $9.3 billion in commitments versus $9.1 billion for the broadcasters.

A year ago, broadcasters continued to land more ($8.6 billion) compared to cable's $8.2 billion.

Still, as a 12% growth for cable in 2011 is projected, the rate of growth could be slowed next year if the economy ushers in a slowdown in scatter pricing, since cable networks can leave about 50% of inventory to be sold in the walk-up market.

 

 

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