Posted in Trends

Three Screens, One Question

How Will Audiences Consume Content In The New World?

There is no denying the overwhelming new media landscape that allows users to consume media in more places than ever. In the recently released “Three Screen Report” by Nielsen, they outline some key trends and insights into video viewing across tv, web and mobile. Below are some of the notable facts:

  • Except for the teenage years, viewing of traditional television increases with age; the use of video on the Internet peaks among young adults while viewing mobile video is highest in the teen years.
  • Men continue to watch video on mobile phones more than women, and women continue to watch video on the Internet and TV more than men.
  • The work day (M-F,9am to 5pm)continues to be primetime for Internet video.

While each screen does present its own financial woes, according to Manish Bhatia, President of Advanced Digital Services at Nielsen, “…Most consumers know or care little about bandwidth issues and business models. For them, it is the viewing experience that counts, and they will continue to go to the ‘best available screen’ for content. At home, big plasma wins. On the road, the laptop often is the screen of choice. And when literally on the move, they go mobile.”

Also according to Mr. Bhatia “…Nielsen data shows that most people prefer the same source of programming, no matter what the medium. In other words, fans of CNN on cable are most likely to visit CNN.com.” However, due to the financial structures of the tv medium, there may be a point in time when consumers decide to “…cut the cord and move to the Internet,” says Mr. Bhatia.

Below are some of the concerns that Mr. Bhatia rasied in his article.

  • Because cable TV subscribers pay for channels they don’t necessarily watch – and prices go up as more content becomes available – some may eventually decide to cut the cord and move to the Internet. As a result, deals between cable operators and content producers will need to shift to payments based on viewing rather than carriage. In that case, cable operators might sell more (or all) ad inventory, or cable networks may pay a percentage of their ad dollars to operators.
  • Internet users who regularly stream or download huge files generally pay the same monthly fee as those who check emails once or twice a day, and perhaps visit a few web sites. Clearly, the former costs an ISP much more than the latter. If distribution costs continue to decrease, the point is pretty much moot. But if and when the cost line rises higher and faster than that of revenues, the industry may need to consider selling the internet access in “bands” or “tiers”.
  • While providing streaming video or TV on mobile phones is still in relative infancy, most companies are already charging an extra monthly fee for delivering such content. Adaptation by consumers and further advances in technology will drive any changes in the business model.

“Just as the transfer of energy from one place to another can produce new forms of power, shifts in consumer activity across the three screens will generate new opportunities. The challenge in both instances is to find the most effective ways to harness them.” (Bhatia, Nielsen.com)

Click here to download complete report

Click here for complete article by Manish Bhatia

 

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