Commentary

Media and Entertainment Going Digitally Mobile


IBM's second global online survey of consumer digital media and entertainment habits, conducted with 2,800 people in six countries, reports that adoption for most categories of digital content services doubled from last year, with services such as social networking now at 60 percent penetration and Internet data plans for mobile devices at over 40 percent for respondents globally.

Dick Anderson, General Manager, IBM Media & Entertainment, concludes that "... millions of people can instantly create, publish and consume content... knowing distinct consumer segment preferences and delivering consistent content and messaging... across multiple devices... are essential for long-term success."

Last year's study, says the report, showed the decline of TV as the primary media device. This year's study found large scale adoption and usage of digital content services accessed via the PC and mobile phone, with ad-supported models (versus consumer-paid) preferred almost three to one by respondents globally.

Though consumers are adopting social networking and videos on mobile phones and personal computers at an accelerated pace, interactivity through features such as user ratings tools and video uploads is primarily concentrated among the more digital savvy consumers.

IBM stopped people on the streets of Frankfurt, London, Mumbai, New York, Los Angeles, Sydney and Tokyo to ask about their media device and advertising preferences. Some of the key findings add up to this:

  • 76 percent of consumers surveyed have already watched video on their PC, up 27 percent from last year
  • 32 percent indicated they have viewed video on a portable device or mobile phone, up 45 percent from last year
  • Interest in mobile video content has more than doubled since last year to 55 percent
  • For both PC and mobile video, over 70 percent of respondents prefer advertising-supported models as opposed to consumer-paid models, representing a huge growth opportunity for the industry
  • Preference for ad-supported models ranged from 62 percent to over 80 percent by country, with Japan having the highest preference for ad-supported on both devices

Consumers are moving beyond the trial stage of watching online video, says the report:

  • Of those who have watched videos on their PC, 45 percent are doing so at least a few times per month
  • Over 50 percent of respondents who have watched online video claim they watch slightly less (15 percent), to significantly less (36 percent), television as a result, implying place-shifting alternatives may be changing consumer "couch potato" behavior
  • The majority of respondents said they prefer to see advertising associated with online videos before or after a video. Respondents from all six countries protested traditional television interruption advertisements during the video

Close to 60 percent of total respondents were willing to provide information about themselves, such as age, gender, lifestyle or communications preferences, in exchange for perceived value and incentives as a trade-off to provide personal information.

  • Younger respondents had fewer concerns about revealing personal preferences
  • Consumers listed free high-quality music/videos, discounts to favorite stores and air travel/hotel points as the most desired and attractive incentives
  • Japan and India had the least reservations about providing personal preferences, with over 62 and 72 percent of respondents respectively willing to share information, versus 45 percent of respondents in the US

The 13-24 year old segment owns an average of between four to five multimedia devices, with the most popular being portable music players. The "Gadgetiers," early adopters estimated at 15 percent of the market, have an average of between seven and eight multimedia devices.

Over 40 percent of respondents are interested in content portability and integration, the ability to view and transport the same piece of content across multiple devices. Nearly one in five respondents was interested in consistent, tailored messaging across devices

Bill Battino, Managing Partner, Global Communications Sector, IBM Global Business Services, said "... consumers continue to rely on more devices to view and access content on their terms..."

Within the six countries polled:

  • Australia and the U.K. had the highest adoption of social networking sites, with over 65 percent and 70 percent respectively, compared to an average of 60 percent for all countries
  • The U.S. had the highest adoption of premium video services for the traditional TV at over 45 percent, versus Australia which had the lowest penetration at less than 25 percent
  • The U.S. had high adoption of online TV/video sites such as HULU or YouTube, at close to 40 percent, versus the U.K. which had the lowest at 28 percent
  • Japan, Germany and India had the highest adoption of mobile services, including Internet data plans and mobile content plans for video and music

         To see the complete article and video, please visit IBM here.

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