Tag Archives: Nielsen

An Hour More And Less

More and less? A typo right off the bat? Nope, not a chance. That’s a statement about time, which as I think we all know is a zero-sum game. Even if you don’t sleep there are still only 24 hours in a day. Why this is of note today is a report from the Nielsen folks and the implications the findings hold for you.

The results come from Nielsen’s Q1 2016 Total Audience Report, which you can read here. There is also an excellent summary on Adweek’s site. As the latter states: 

The total media consumption across all devices and platforms jumped one hour from the first quarter of 2015, to 10 hours, 39 minutes. (A year earlier, there had only been a seven-minute year-over-year jump in daily media consumption.) That’s mostly due to smartphone use, which has soared 37 minutes, and tablet use, which has increased 12 minutes. Internet on PC jumped 10 minutes, while multimedia devices, including Apple TV and Roku, were up four minutes. Video game consoles and DVR use was flat, while DVD use dipped one minute and live TV dropped three minutes year over year. Nielsen’s data indicates that consumers aren’t pulling away from linear TV, but instead are making additional time for these new devices.

An hour more each day with media sounds wonderful if you’re in the media business. The real question this raises with me is from where are consumers getting that extra hour? Do you think they’re sleeping less? Leaving work early? Maybe they’re watching on the job (so much for productivity). No, I suspect they’re just not doing something else. Shopping, dining out as much, going to other recreational activities. All this means is that as selective as consumers were in allocating their time to your non-media business they’re going to be even more so. That reinforces the need for all of us to provide value every time we have a consumer interaction or we won’t be having as many down the road.

As an aside, I’ll remind us that most of us, even if we make package goods, are now in the media business. Social sites, home base (your website!), and content we provide to others are all media, so it’s not a lost cause. Obviously, it’s fiercely competitive out there, and the hour more each day that consumers are spending in the space doesn’t mean they’re any less frugal with the time they spend. The job for each of us is to make up for the hour less they’re outside of media where we live and capture their attention within the extra hour they’re spending inside. We can do that through great content, content which is focused on providing value and solving their problems.  Make sense?

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Posts Of The Year – 2015 – #3

I am going to continue an annual tradition this week and repost the most-read screeds of the past year.  I am very grateful to the folks from 91 countries around the world who read them this year, although I’m not sure why I seem to be so popular in Brazil (the second country behind the US in terms of readership!).  This post, the third most-read, non-food post, was from October.  It touches on a subject that came up a few other times this year, and one I expect will be front and center in 2016: cord-cutting.  It was originally titled  Shaving The Cord. Enjoy!

You might have heard something over the weekend about a glitch in the Nielsen ratings system that affected the estimated audiences all the way back to March.  While that is kind of problematic for the TV industry, it was other Nielsen data that presents much more of a long-term problem.  As Cynopsis reported:

The top 40 cable channels have lost more than 3 percent of their distribution over the last four years, according to a Wall Street Journal analysis of Nielsen ratings data. How to account for the decline, which exceeds the loss of subscribers? Pay-TV customers are signing up for less expensive bundles with fewer channels, says the WSJ. “What we are seeing is some cord cutting and some cord shaving,” Nielsen global president Stephen Hasker told the paper. “Consumer time and attention is shifting.”

You can read the Wall Street Journal article by clicking through.  As someone who spent a long time in the TV business, I understand why channels are bundled.  Way back when, the market was far less fragmented and the business model evolved where there really weren’t tiers other than the true premium channels of HBO and local sports networks.  Today, even the “major networks” of ABC, CBS, Fox, and NBC attract audience ratings in the low single digits even for top programs.  Yes, DVR viewing can boost some of their audiences as much as 80% but think about it.  What’s the difference between watching “Gotham” via Hulu (the internet) or on your DVR (the cable bundle)?  Other than being able to skip the commercials on a DVR, not much.  In fact, one could argue that advertisers would prefer that consumers watch in the non-skippable internet interface.

The real point is that how consumers come to content has changed and yet the people who are the middlemen in offering the content – the cable companies – haven’t moved off a business model that evolved in the 1980s.  As the  Journal states:

Data points are piling up to show “cord shaving” is for real. At least two pay-TV providers say about 10% of gross TV subscriber additions are customers who are taking a slimmed-down bundle—in contrast to the bigger ones with hundreds of channels that can cost upward of $100 a month.

So the choice for the providers, as it is for all of us in our businesses,  is to change or to shrink.  They can’t just keep raising prices.  At some point that makes the problem even worse as consumers pay more for channels they don’t watch.  What’s your solution?

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Filed under Consulting, digital media

Shaving The Cord

You might have heard something over the weekend about a glitch in the Nielsen ratings system that affected the estimated audiences all the way back to March.  While that is kind of problematic for the TV industry, it was other Nielsen data that presents much more of a long-term problem.  As Cynopsis reported:

The top 40 cable channels have lost more than 3 percent of their distribution over the last four years, according to a Wall Street Journal analysis of Nielsen ratings data. How to account for the decline, which exceeds the loss of subscribers? Pay-TV customers are signing up for less expensive bundles with fewer channels, says the WSJ. “What we are seeing is some cord cutting and some cord shaving,” Nielsen global president Stephen Hasker told the paper. “Consumer time and attention is shifting.”

You can read the Wall Street Journal article by clicking through.  As someone who spent a long time in the TV business I understand why channels are bundled.  Way back when, the market was far less fragmented and the business model evolved where there really weren’t tiers other than the true premium channels of HBO and local sports networks.  Today, even the “major networks” of ABC, CBS, Fox, and NBC attract audience ratings in the low single digits even for top programs.  Yes, DVR viewing can boost some of their audiences as much as 80% but think about it.  What’s the difference between watching “Gotham” via Hulu (the internet) or on your DVR (the cable bundle)?  Other than being able to skip the commercials on a DVR, not much.  In fact, one could argue that advertisers would prefer that consumers watch in the non-skippable internet interface.

The real point is that how consumers come to content has changed and yet the people who are the middlemen in offering the content – the cable companies – haven’t moved off a business model that evolved in the 1980s.  As the  Journal sates:

Data points are piling up to show “cord shaving” is for real. At least two pay-TV providers say about 10% of gross TV subscriber additions are customers who are taking a slimmed-down bundle—in contrast to the bigger ones with hundreds of channels that can cost upward of $100 a month.

So the choice for the providers, as it is for all of us in our businesses,  is to change or to shrink.  They can’t just keep raising prices.  At some point that makes the problem even worse as consumers pay more for channels they don’t watch.  What’s your solution?

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Filed under Consulting, digital media