broadcast television: trends and implications

Broadcast Television: Trends and Implications

Rick DuceyChief Strategy Officer

BIA/Kelsey

Market Research AssociationMid-Atlantic Chapter

May 25, 2010

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Topics

1. What is “broadcast television”?

2. Happy birthday, TV.

3. Broadcast TV meets the

Internet which meets the

smartphone.

4. Where does broadcast TV fit in

the media mix?

5. Five questions.

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Happy birthday, terrestrial digital TV.

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What is “broadcast television”?

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It’s a content distribution and user engagement platform.

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TV is compelling to the user.

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Digital TV is flexible.

ReceiverSTB Cell TV PC

Data Packet Format

IP MPEG2 TBDServices

HDTV SDTV DMTV VOD Interactive

Over The Air Transmission

Fixed Mobile

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TV Meets the InternetCase study: Sezmi

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TV Meets the InternetCase Study: Google TV

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Case Study:Mobile DTV is born (again)

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MDTV does DC

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It takes a village MDTV ecosystem . . .

Supply Chain

Sprint, SES WORLD SKIES, Harris Broadcast, Rohde & Schwarz, Thomson Grass Valley, Envivio, Nagravision, iSet, DTVInteractive, Expway, Roundbox, Hauppauge Computer Works, Harris Interactive, Rentrak, BIA/Kelsey, Tribune Media Services, RRD, TVB, Ad Council, Fox Cable, NBCU Cable

Washington, DC Stations

• WRC (NBC Universal)• WTTG (Fox)• WDCA (Fox)• WPXW (ION Media Networks)• WFDC (Univision)• WHUT (PBS/Howard University)• WUSA (Gannett Broadcasting)• WNVC (MHz Networks)• WNUV (Sinclair Broadcasting)

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Services– On the go– Personal– Live/Linear TV– Non-linear TV– Time Shifted/DVR– Interactive TV– Emergency Alert– ESG– Subscriber Interactivity

Revenue Models– Channel change

interstitial– Pop-up ads– E-Commerce– Coupon– Targeted ads– Geotargeting– Viewer data– VOD– Subscriptions

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Smartphones reach 50% by 2011

14

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Where does TV fit in the media mix?

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Television

Radio Any ComputerAny Online

WebE-Mail

Inst.Msg

Software

All Phone

Telephone

Mobile Phone MusicPrint Media

Newspaper

MagazineBookAll Video

VCR

DVDGame Console

Other

0%

20%

40%

60%

80%

100%

0 60 120 180 240 300Daily Duration: Average Minutes per User

Daily Reach:Incidence of Use

Among 350 Adults

Daily Reach and Duration for Various Media

Among 350 Adults in the Middletown Media Studies II

Media Consumption is Fragmented

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3 Core Drivers of Change

•Content

Digital

•Conversations

Social

•Connected

Mobile

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Users integrate the TV experience as an “app” across screens.

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Americans Using More News Sources

Local TV

Online

Local Newspaper

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

78%

73%

61%

54%

50%

17%

92% of Americans use more than one platform; 46% use 4-6 platforms.

Source: Pew Internet, 2010

19

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150 Million Active U.S. Social Networkers

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Site Visits: Facebook Dethrones Google

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Both Drive Traffic to Broadcast Sites

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Follow the TV app across platforms.

• Users• Measurement • Reporting• ROI• Buy/sell platforms• Brand managers• Agencies• SMBs

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Five questions we were to answer.

1. What innovation or emerging technology will have the greatest impact on the television industry in the next few years?

Answer: Internet Protocol

2. What is the biggest challenge facing television as a medium?

Answer: Extending their business model cross-platform.

3. What are some of the new or innovative ways in which broadcasters and content producers are tracking audiences and audience behaviors?

Answer: Data on servers assume key role along with sample surveys.

4. How will television-based marketing evolve with the medium, and what are the implications for the current advertising-based revenue model?

Answer: Multiple screens, multiple roles in the media mix requires new media mix models.

5. What do you think is the most significant moment in the history of TV (can be content or technological)  OR  What is your favorite TV moment of all time?

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Bobby Orr’s winning goal in Stanley Cup final, 40 seconds into O/T on Mother’s Day 1970.

Thank you.