AN ERA OF GROWTH
Changes in the Media Landscape
Accelerating change in our future
DIGITAL AND
INTERNET
REVOLUTION
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
RISE OF
CABLE
TV
MORE
ADVERTISERSUPPORTED
NETWORKS
VCR
DVD
DVR
VOD
2006 Present
VIDEO
GAMES
1990’s 2005
1970’s
&
1980’s
SMARTPHONES
HDTV
TABLETS
OVER-THE-TOP SMART
DISTRIBUTION TV WITH
SOCIAL
CAPABILITIES
APP
DRIVEN
DIGITAL
WORLD
1950’s
& 1960’s
FIRST
SATELLITE
BROADCAST
BLACK &
WHITE TV
2
Looking at 2014
The norm of consumer media consumption & beyond
• Consumers continue to have expanded choice
• On demand will take more viewing from the DVR
• Linear and digital media will become seamless to the consumer
• Portable and personal devices will continue to enable simultaneous usage
• Consumers can extend their media engagement with even more content and
information
• Fragmentation will grow across distribution platforms, types of content,
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
availability of content and volume of content
• The 2014 Upfront market will foster more conversations and negotiations
around different monetization models to account for additional viewing across platforms
• …and the consumer continues
to not differentiate how they get their
entertainment, opting for the best screen at most convenient time
3
The Population is Changing
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Younger segment, more multi-cultural
5%
6%
21%
18%
16%
13%
57%
62%
P12-24
P25-54
5%
9%
10%
76%
P55+
White Non-Hispanic
African American
Hispanic
Asian American
Source: NPOWER, Share of TV Universe Estimates, 01/15/14
4
Most Growth Will Come From Multicultural
Projected U.S. Population Growth
From 2010 to 2050
+1%
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
+42%
Total
White
+56%
+142%
Black
Asian*
*Excludes American Indian, Alaska Native, Hawaiian & Other Pacific Islander
Source: U.S. Census Bureau Population Projections
+167%
Hispanic
5
More Choices Being Driven By Technology
Increased DVR, Smartphone, Tablet, and Smart TV penetration
85% 83%
% diff vs. 2012
Devices Owned in TV Households
82%
+41%
78% 80% 80%
69%
+13%
59%
46% 45% 46%
43%
47% 49%
49%
+245%
35%
+107%
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
22%
10%
DVD
PC w/Internet Video Game
Feb '12
Source: NPOWER, Mobile Insights, Custom Smart TV (Capable)
DVR
Feb '13
Smartphone
Tablet
18%
9%
13%
Smart TV
Feb '14
6
TODAY’S LANDSCAPE
A Third Of People Account For Half The Viewing
Universe Estimate
(000)
27.8%
7.4%
20.1%
PUT (000)
35% of pop
account for
almost half
of all time
spent using
television
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
13.2%
39.0%
P50-54
8.9%
20.0%
13.4%
Universe Estimate
PUT
Source: NPOWER, Share of UE vs. Share of PUT – Total Day, 9/23/13 – 02/23/14
P35-49
P25-34
P18-24
10.9%
6.7%
5.1%
9.6%
9.8%
8.4%
P55+
P12-17
P2-11
8
An Expanded View Of Media Consumption
Average time spent per Adult 18+ per day
0:12
Q4 2013
5:04
0:32
1:01
1:07
1:05
0:53
2:46
0:02
0:09
0:10
Q4 2012
5:10
0:27
2:50
0:10
0:10
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Q4 2011
5:06
0:25
1:04
0:48
2:53
0:11
Live TV
Watching Timeshifted TV
Using DVD/Blu Ray Device
Using a Game Console
Using Internet on a Computer
Using a Smartphone
Listening to AM/FM Radio
Using a Multimedia Device
Media choice drives consumer choice
Source: The Nielsen Cross-Platform Report Quarter 4 2013; Exhibit 1
9
Monthly Time Spent By Medium
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Users 2+ in Hours: Minutes
Source: The Nielsen Cross-Platform Report Quarter 4 2013; Table 3
10
Larger Declines Among Teens And P25-34
Persons Using Television%
Prime
Interval
P2+
P2-11
P12-17
P18-24
P25-34
P35-49
P50+
09/24 - 02/24/13
39.8
25.2
25.8
25.1
35.0
41.8
54.0
09/23 - 02/23/14
39.1
24.6
24.8
24.7
32.9
40.3
53.7
% Diff
-2%
-2%
-4%
-2%
-6%
-4%
-1%
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Total Day
Interval
P2+
P2-11
P12-17
P18-24
P25-34
P35-49
P50+
09/24 - 02/24/13
21.2
15.3
13.3
14.6
18.3
21.4
28.5
09/23 - 02/23/14
21.1
15.2
12.8
14.3
17.5
20.9
28.7
% Diff
0%
-1%
-3%
-2%
-4%
-2%
1%
Source: Nielsen, NPOWER
11
Total Use Of TV Is Flat For Persons And Declines
Less For Teens And Young Adults
Total Use of TV%
Prime
Interval
P2+
P2-11
P12-17
P18-24
P25-34
P35-49
P50+
09/24 - 02/24/13
43.5
30.0
31.6
30.0
40.4
45.3
55.9
09/23 - 02/23/14
43.3
30.2
31.2
30.8
39.2
44.4
55.7
% Diff
0%
1%
-1%
2%
-3%
-2%
0%
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Total Day
Interval
P2+
P2-11
P12-17
P18-24
P25-34
P35-49
P50+
09/24 - 02/24/13
23.1
18.1
16.2
17.5
21.0
23.0
29.2
09/23 - 02/23/14
23.3
18.5
16.1
17.7
20.6
22.8
29.6
% Diff
1%
2%
-1%
1%
-2%
-1%
1%
Source: Nielsen, NPOWER, Total use of TV is the sum of Live PUT, Timeshifting, Video Game Console Use, DVD Playback, and Multimedia Device Use
12
Timeshifting, Video Games, And Multimedia
Devices Showing Growth
Percent of AA% Rating, PRIME
P18-24
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
P2+
1.5%
3.0%
5.8%
7.0%
0.6%
1.1%
4.6%
3.5%
11.2%
0.1%
7.3%
7.4%
5.2%
0.4%
83.5%
79.5%
79.7%
Feb '09
Feb '14
Feb '09
Live PUT
VCR playback
Source: Nielsen Custom Analysis
P25-54
Timeshifting
14.2%
3.4%
8.5%
0.1%
2.4%
6.2%
9.7%
0.5%
1.5%
4.2%
4.0%
13.4%
0.1%
72.3%
81.2%
76.9%
Feb '14
Feb '09
Feb '14
DVD Playback
Video Game Consoles
Multimedia Device
13
Uptick For Timeshifting, Video Game Console Use
And Multimedia Use
Persons 25-54
PUT (Live PUT +
Timeshifting)
41.0
39.3
13.2
13.0
English Broadcast
2.5
2.2
Spanish Broadcast
21.0
20.3
Ad Supported Cable
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Premium Pay
1.5
1.5
All Other Tuning
2.0
2.0
DVD Playback Use
1.9
1.8
5.6
5.9
Timeshifting
Video Game Console Use
Multimedia Device Use
1.6
1.9
12-13: 9/24 - 02/24/2013
13-14: 9/23 - 02/23/2014
0.5
0.9
Source: Nielsen, NPOWER, Prime, L+7 days
14
Significant Time Spent Watching TV But Other
Devices Are Becoming Increasingly Popular
AVERAGE DAILY MINUTES
HEAVY DEVICE USERS
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
TV
PC Streaming Game Console
Multimedia
Device
663.2
2.1
8.0
1.1
238.2
28.1
25.3
3.5
191.4
4.4
152.7
2.3
118.1
3.1
13.3
131.6
Source: Nielsen NPOWER/Cross Platform Homes Panel for November 2013 P2+, Includes in-home viewing behaviors, Heavy based on top quintile
15
EVOLVING TV HOUSEHOLD
Traditional TV Use Increases As We Get Older
Young adults today are viewing differently than those in the past
17.9
19.0 18.9
17.4
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
15.4
16.7
14.8
Persons
May '03 - 20-29
Source: NPOWER, Total Day, PUT AA%
16.8
16.2
15.8
14.1
Females
May '08 - 25-34
May '13 - 30-39
13.4
Males
May '13 - 20-29
17
TV Channels Remain Flat, PC Sites Visited Declined
While Mobile Apps Grew Slightly
Avg Television Channels Viewed
Avg PC Surfing Sites by Brand Visited
Avg PC Streaming Sites by Brand Visited
Avg Mobile Apps Used
75.9
75.3
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
65.0
17.8
17.5
4.3
2011
26.8
26.5
23.2
4.4
2012
17.5
4.7
2013
Source: Nielsen Custom Data, TV - 08/19/13-08/25/13 v comparable weeks in the prior years, HHLD; Online – Netview and VideoCensus, November, P2+; Mobile - EMM,
Qtr 4, P18+
18
TV IS BECOMING MORE SOCIAL
We ALL Know That People Tweet About TV
Viewers interacting with television programming through social media is an important
consumer phenomenon
84
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
percent
of smartphone/tablet owners
use devices as second-screens
while watching TV
990
11
Tweets about U.S.
TV in 2013, sent by
36 million people
Average Daily Unique
Audience seeing Tweets
about U.S. TV
million
Source: Nielsen Social, Unique Audience Data from 9/1/13-11/30/13, Nielsen Qtr 3 2013 Connected Devices Report
million
20
They Are Also Tweeting About Brands
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
73% of the people who tweet about brands are people who tweet about TV
Source: Nielsen Social, 8/1/13-10/30/13
21
Smart TV Grows From 13% To 18% YOY
Smart TVs are more likely to be located in the Living Room
Smart TV Penetration
18%
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Smart TV
and
enabled,
10%
Smart TV
and not
enabled,
9%
No
Smart
TV, 82%
February 2014
Source: Nielsen Custom Data HHLD, February 2014
Smart TV by Location
4%
5%
49% enabled
53% enabled
20%
51% enabled
71%
52% enabled
Living Room
Bedrooms
Basement
Other
22
Less Live TV Among Enabled Smart TV Users, More
AOT And Device Contribution
Enabled Smart TV
Not Enabled Smart TV
No Smart TV
4% 1%
3%
4%1%
3%
5% 3%
3%
9%
4%
14%
15%
4%
7%
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
67%
Live TV
including
AOT
74%
78%
75%
Live TV (excluding AOT)
79%
AOT
Timeshifting
83%
DVD
Game Console
Multimedia Device
Unidentified tuning or AOT may signify that an enabled Smart TV is being used to stream content
Source: Nielsen Custom Study, HHLD, Prime, Percentage share of included sources, Live TV is based on all station minutes contributing to PUT, February 2014
23
High Speed Internet Continues To Grow
Percent of Total US
77.2
76.4
74.4
74.9
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
70.2
Feb '10
Feb '11
Feb '12
Feb '13
Source: Nielsen NPM, data from the 15th of each month, based on scaled installed counts
Feb '14
24
Distribution Continues To Shift From Wired Cable
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Percent of Total US
29.6
30.4
30.8
31.5
31.8
5.3
6.6
7.9
9.4
10.9
55.7
53.6
51.8
49.5
47.1
9.3
9.4
9.5
9.5
10.2
Feb '10
Feb '11
Feb '12
Feb '13
Feb '14
Broadcast Only
Wired Cable (No Telco)
Telco
Source: Nielsen NPM, data from the 15th of each month, based on scaled installed counts, Broadband Only Households fall into the ADS bucket
Percent of Total US is based on a sum of the four breaks listed and is slightly higher than total Composite households
ADS
25
Cable Downgrades To Broadcast Levels
A snapshot of 7 homes who lowered their cable subscription
•
Went from an average of 154 stations to 17 stations
•
HUT levels decreased by almost half in Prime; 38.2 to 19.6
•
More likely to be HHI <$75K, HH Size 3+, White, Some College, Video Game and
DVD owners
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Share of Prime Viewing – Top 10 Sources
02/04- 02/10/13 (Avg of 154 stations)
AMC
19.6
AOT
14.5
DVD Playback
7.3
Regional Sports Networks
6.4
AUDIO-VIDEO
6.4
DVR Playback (Timeshifting)
5.4
USA
5.3
All Other Ad Supported Cable Orig
4.8
WE
4.3
AEN
2.8
Source: Nielsen custom data extract, Feb 2013 vs Feb 2014 Unified Homes
02/03 - 02/09/14 (Avg of 17 Stations)
DVD Playback
25.7
AOT
16.9
Video Game Console
11.0
AUDIO-VIDEO
10.3
LIF
8.6
Regional Sports Networks
6.6
ION Affiliates
6.0
DVR Playback (Timeshifting)
5.3
ABC Affiliates
2.8
NBC Affiliates
2.7
26
BROADBAND ONLY
Broadband Only Skews Younger
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Broadband Only Penetration%
Total U.S.
African
American
Asian
American
Hispanic
White
Non-Hispanic
HH
1.6%
1.0%
4.1%
1.2%
1.6%
P2-11
2.5%
0.8%
2.8%
0.6%
3.5%
P12-17
1.6%
1.0%
2.3%
1.6%
1.7%
P18-34
3.3%
2.3%
7.2%
1.2%
4.0%
P35-49
1.6%
1.0%
1.6%
1.1%
1.9%
P50+
0.3%
0.0%
0.4%
0.0%
0.4%
Homes with alternative means to receive content
Source: Nielsen NPOWER, Based on Scaled Installed Households, Feb ‘14
28
Viewing Habits Vary Across Homes With And
Without Broadband Only Sites
Traditional TV HH
w/ 1+ BBO sites
2.8%
Broadband Only HH
% of TV HHs:
1.6%
1%
6%
3%
4%
11%
31%
All Other HH
95.6%
1%
4%
9%
22%
59%
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
5%
9%
51%
83%
Share of Total Use of TV
Live TV
Timeshifting
DVD Playback Use
Source: Custom Data Extract, 01/27 - 02/23/14, Total Day, P2+
Video Game Console Use
Multimedia Device Use
29
THE SUBSCRIPTION VIDEO ON-DEMAND
(SVOD) LANDSCAPE
39% Of P2+ Have Access To An SVOD Service
10%
35%
Netflix
Netflix
No Netflix
Amazon
Prime
65%
Amazon
Prime
No Amazon
Prime
90%
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
6%
Hulu Plus
Hulu Plus
No Hulu Plus
94%
Source: Nielsen Custom Study, P2+, based on scaled installed counts, 011514, Among Total TV Homes
31
Asian Americans Are More Likely To Have Access To
An SVOD Service
By Race and Ethnicity
Composite
African American
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Hispanic
Asian American
White
39%
61%
32%
68%
36%
64%
48%
52%
40%
SVOD
60%
Non SVOD
Source: Nielsen Custom Study, P2+, based on scaled installed counts, 011514, Among Total TV Homes
32
SVOD Homes Are More Educated With Higher
HHLD Incomes And Often Have Children
SVOD
Non SVOD
62%
49%
43%
27%
29%
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
16%
4+ Years of College
HH Income = $100K+
Source: Nielsen Custom Study, P2+, based on scaled installed counts, 011514, Among Total TV Homes
HH with Children
33
SVOD Homes Have Greater Device Penetration And
Are More Likely To Be Broadband Only
TV Service Provider
Device Ownership
60%
DVR
4%
47%
84%
DVD
82%
47%
55%
Tablet
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
45%
46%
76%
Game Console
35%
29%
28%
90%
Smartphone
Smart TV
10%
14%
68%
SVOD
17%
6%
SVOD
Non SVOD
11%
8%
Non SVOD
Broadband Only
Telco
Wired Cable (No Telco)
Satellite
Broadcast Only
Source: Nielsen Custom Study, P2+, based on scaled installed counts, 011514, Smart TV based on Capable and Enabled, Among Total TV Homes
34
SVOD Homes Tend To Skew Younger
44%
P50+
26%
23%
P18-24
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
52%
31%
P35-49
P25-34
31%
18%
23%
15%
12%
15%
9%
Composite
SVOD
Non SVOD
Source: Nielsen Custom Study, P18+, based on scaled installed counts, 011514, Among Total TV Homes
35
Less Live TV Among SVOD Homes But More Device
Usage
0.3%
2.7%
9.3%
10.3%
5.1%
15.1%
2.8%
3.2%
Live TV
Timeshifting
Non
SVOD
SVOD
Video Game Console
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
67.9%
83.3%
Source: Nielsen Custom Study, P2+, Prime, Live+7, 011314 – 011914, Among Total TV Homes
DVD Playback
Multimedia Device
36
HOUSEHOLD VIDEO MAPPING
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Explanation Of Symbols
AOT
Live TV
Game Console
Timeshifted TV
Multimedia Device
All Other Tuning
AV
Audio / Video
DVD / Blu Ray Device
38
M14
MASTER
BEDROOM
M38
BEDROOM
F9
LIVING
ROOM
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Weekend In The Life Of A Heavy TV Home
AOT
AOT
AOT
AOT
F36
AOT
Source: Nielsen Custom Data
39
M14
MASTER
BEDROOM
M38
BEDROOM
F9
LIVING
ROOM
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Weekday In The Life Of A Heavy TV Home
F36
Source: Nielsen Custom Data
AOT
AOT
40
F46
F22
LIVING ROOM
Day In The Life Of A Light TV Home
Weekend
M17
LIVING ROOM
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
F8
Source: Nielsen Custom Data
Weekday
41
LIVING ROOM
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
M43
F40
LIVING ROOM
Day In The Life Of An Aereo Home
Source: Nielsen Custom Data
AV
Weekend
AV
Weekday
42
KITCHEN
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
M17
F12
BEDROOM
F39
MASTER
BEDROOM
M39
LIVING
ROOM
Weekend In The Life Of A BBO Home
Source: Nielsen Custom Data
43
KITCHEN
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
M17
F12
BEDROOM
F39
MASTER
BEDROOM
M39
LIVING
ROOM
Weekday In The Life Of A BBO Home
Source: Nielsen Custom Data
44
SMARTPHONE
Day In The Life Of A Smartphone and Tablet User
F48
Facebook
Facebook / Instagram
Weather
Weather
Productivity
Productivity
TABLET
YouTube
Chrome
Gaming
Source: Nielsen Electronic Mobile Measurement
9P
M
8P
M
7P
M
6P
M
5P
M
4P
M
3P
M
2P
M
1P
M
12
PM
11
AM
Twitter / Vine
10
AM
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Netflix
45
M14
MASTER
BEDROOM
M38
BEDROOM
F9
LIVING
ROOM
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
A Future Look At A Heavy TV Home
F36
AOT
AOT
Source: Nielsen Custom Data
46
Summary
Our video use is increasing while our traditional TV usage is flat or down
depending on our age
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Ethnicity matters
•
Asian Americans more BBO, more online, more SVOD
•
African Americans more Traditional TV, more mobile
•
Whites are older, BBO and more Time shifting
•
Hispanics are younger, less Traditional TV and more mobile
It is a
Lifestage and Behavior Change
•
Young adults today watch less TV than similar age group 10 years ago
•
Young adults actually watch less TV than they did 5 years ago
47
THANK YOU!