Tag Archives: NPD Group

What’s On Your TV Might Not Be TV

Some information I think is significant came out a couple of weeks ago and I made myself a note to share it.

English: A child watching TV.

(Photo credit: Wikipedia)

Sorry for the delay!  It has to do with yet another tipping point being reached and this one has to do with how we use the “cool fire” that’s the focal point of a room in many homes – the TV.  The folks at NPD Group put out a release that summarized the study:

According to The NPD Group,… over the past year, the number of consumers reporting that the TV is their primary screen for viewing paid and free video streamed from the Web has risen from 33 percent to 45 percent. During the same period, consumers who used a PC as the primary screen for viewing over-the-top (OTT) streamed-video content declined from 48 percent to 31 percent. This shift not only reflects a strong consumer preference for watching TV and movies on big screen TVs, but also coincides with the rapid adoption of Internet-connectible TVs.

In other words, people figured out how to shift the viewing for the desktop to the TV.  Why is this significant?  In my mind, it make Netflix a cable channel in consumers’ minds and not a streaming service.  That’s an example.  Of those viewing online video on the TV, 40 percent use their connected TVs to stream video via Netflix, 12 percent access HuluPlus, and 4 percent connect to Vudu.

Another reason it’s significant is pretty obvious – when the TV is being used to stream web content it’s not being used to watch “traditional” TV, at least not in “live” mode.  Of course, there is a ton of time-shifting going on and it’s a lot of what we think of as “TV” that’s being shifted and watched.  Still, one wonders how this affects what used to be the fundamental underpinning of the business: the ability to deliver ad impressions to marketers.

Unless you’re a live-sports addict (ahem…), cord cutting is rapidly becoming an option for a lot of people   While this might be another nail in the coffin of the traditional PC (hello tablets), I think it’s also something to which TV service providers need pay attention (which I know they are).  The TV is a screen, just like the PC, the tablet, or the mobile device.  It’s becoming just as content-provider agnostic as are those devices.

Do you watch web video on your TV?  How?  Apple TV?  XBox?  Own a web-enabled TV?  Have you cut the cord?  What’s that like?

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Changing Media Dynamics

A couple of pieces of research this morning that confirm and clarify what many folks have been observing independently but which also made me a bit more confused.  In this case, it has to do with how our media habits are changing with respect to television.

Google TV

Google TV (Photo credit: Wikipedia)

Frankly, I’m not even sure what TV is any more despite many years working in the industry.  A “TV” is a screen, and we’re surrounded by screens of that sort and many others, the use of which is reflected in the research.  In any event, the data are interesting and even more so when one considers the changes that are happening to the businesses behind the screens.

Let’s start with information from a TV industry group – CIMM.  The released a study which you can access here about How Multi-Screen Consumers Are Changing Media Dynamics:

Studying 10 broadcast network and cable brands over a five-week period, the research found that an average of 90% of consumers who engaged with brand did so on TV, and 25% did so online, and 12% via online video. In addition, comScore and CIMM found that 60% of a media brand’s consumers accessed both TV and the web during simultaneous 30-minute increments, and 29% accessed Facebook while watching TV. To the researchers, this suggests that digital platforms may be used to support the TV-viewing experience and drive multi platform engagement.

So multi platform is here.  What I think is lost a bit is that it may not necessarily mean multi-screen:

21% of consumers now have their TVs hooked up to the internet, a 5% increase from last year’s levels.The Magid Media Futures report says gaming consoles (Nintendo’s Wii, Sony’s PlayStation3 and Microsoft’s Xbox 360) are currently the “primary means” of connecting a TV to the internet, followed by “smart-TVs,” Blu-ray players, and then OTT devices like Roku, AppleTV or GoogleTV. The firm says early adopters skew toward men, as 56% of male respondents between the ages of 18-44 say they have their TVs connected to the web vs. 44% of females.

There’s also research from The NPD Group which finds that 66% of all big screen (50+inches) HDTVs are made with the ability to connect to the internet without a separate device, while only 1% of TVs smaller than 32 inches have the same technology.  Yes, we’re watching a mash-up of difference sources, brands, and technologies but no, it might not be through a TV, an iPad, and a phone.

So what’s it called?  TV?  Enhanced video?  A mess?  Let’s hear your thoughts.

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