fti - the effect of tablets on us content consumption...
TRANSCRIPT
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SEPTEMBER 2011
THE EFFECT OF TABLETS ON US
CONTENT CONSUMPTION
A Guide to FTI’s 2011 Mobile Device and Digital Content
Consumption Survey
BY: NEIL BENEDICT, BRUCE BENSON, ROGER SCADRON AND LUKE SCHAEFFER
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Introduction ..................................................................................................... 2!Implications for Digital Strategies ................................................................ 3!Summary and Major Findings ....................................................................... 5!
Engagement: Who Uses What? ............................................................ 7!Digital Substitution ............................................................................... 10!Willingness to Pay (for content) ........................................................... 12!
Summary of Findings by Type of Media .................................................... 13!Newspapers ......................................................................................... 13!Magazines ........................................................................................... 15!Television ............................................................................................. 16!Movies ................................................................................................. 18!Music ................................................................................................... 20!
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74.1 % 77.1 %
62.4 %
50.3 % 46.1 %40.7 % 38.4 %
32.5 %
Figure 1 - Digital Media Usage
Newspapers TV Show Episodes Magazines
Social Networks Games Sports
Music Movies None
67%77%76%75%71%
18-2425-3435-4445-5455+
89%90%78%70%
60%
18-2425-3435-4445-5455+
75%58%
49%42%35%
18-2425-3435-4445-5455+
81%75%68%
49%41%
18-2425-3435-4445-5455+
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30%28%
18-2425-3435-4445-5455+
39%47%
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Figure 2 - Media Engagement
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0B >%1%.&3!,#$%&!%*!'()*+,#$!04!4(+)1!&)$!(3$!X!D#*-$!V,/??/+!:*%./?W!8%%&?$%!5#85!.*<*58-!,/+5$+5!*%!&%$.!?/'$!>)!5#$!)/&+<$'!'$%4/+.$+51!5#$!'$%4/+%$%!%#/:!5#85!?/'$!5#8+![R\!/;!'$%4/+.$+5%!*+!8--!8<$!<'/&4%!8,,$%%!+$:%!8+.!+$:%484$'%!/+-*+$1!?/'$!5#8+![3\!/;!8--!8<$%!8,,$%%!%/,*8-!+$5:/'@%1!8+.!?/'$!5#8+!a2\!/;!/-.$'!.$?/%!Q22i!)$8'%!/-.S!8,,$%%1!$4*%/.*,!"`1!?&%*,!8+.!$($+!<8?$%!Qa_\!*+!67S!/+-*+$B!
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Figure 3 - Online Consumption of Newspapers and Magazines
Figure 4 - Online Consumption of Movies and TV
5% 9%13% 13%
18%19%
5% 8%
12% 26%
0%10%20%30%40%50%
Newspapers Magazines Newspapers Magazines
None but willing 1 2 or more
Non-Tablet Users Tablet Users
11% 10% 6% 4%40% 29% 47% 40%
29%17%
28% 23%
0%20%40%60%80%
100%
Movies TV Shows Movies TV Shows
Never but willing Less than once per monthMore than once per month
Non-Tablet Users Tablet Users
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9
Social Networks P%!%#/:+!8>/($1!'$%4/+.$+5%!$+<8<$!?/'$!:*5#!%/,*8-!+$5:/'@%!5#8+!:*5#!8+)!/5#$'!;/'?!/;!.*<*58-!,/+5$+5B!!j$%4/+.$+5%!%4$+.!>$5:$$+!aBR!A!2BN!#/&'%!4$'!:$$@!$+<8<$.!*+!%/,*8-!?$.*8!QF*<&'$!2SB!7?8'54#/+$%!8+.!-845/4%!8'$!?/%5!#$8(*-)!&%$.1!>&5!'$%4/+.A$+5%!:*5#!58>-$5%!8-%/!%4$+.!/($'!aBR!#/&'%!4$'!:$$@!&%*+<!%/,*8-!+$5:/'@*+<!%*5$%B!
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Figure 5 – Hours Spent Per Week on Social Networks
Figure 6 – Hours Spent Per Week on Social Networks by Age and Device
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Figure 7 – Substitution of Traditional Media for Online Alternatives
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I:08.&':.&41.%./-.&,+&)0=0'58&58'.1/52'0;.%&-5//06580F.%&-,/;./'0,/58&3.)05&4(1-:5%.%9&':.&53,(/'&,+&%(6%'0'(2'0,/&;510.%&6*&5=.&5/)&).3,=154:0-&=1,(4>&#/&-,/'15%'9&)0=0'58&-,/'./'&5;50856080'*&35*&41,3,'.&-,/;./2'0,/58&'.8.;0%0,/&(4280+'&53,/=&'568.'&(%.1%>
Figure 8 - Online Alternatives by Tablet / Non-Tablet Users
Non-Tablet UsersTablet Users
----Motion Pictures---- --------Television--------
37%47%
30%38% 36% 38% 37%
21%
2% 1% 4% 4% 8%3% 4%
16%
Stopped or reduced purchases/subscriptions
Increased purchases/subscriptions
40%
51%
38%44% 45% 48% 45%
20%
2% 3% 6% 6% 8% 5% 6%
24%
Stopped or reduced purchases/subscriptions
Increased purchases/subscriptions
37%
47%
29%
37% 35% 36% 36%
21%
2% 1% 4% 4%8%
3% 4%
15%
Stopped or reduced purchases/subscriptions
Increased purchases/subscriptions
:011*6;$*.7$<*=)6$>3.73.9-$4$8393(*,$:0+-(3(0(3).$
11
b*<*58-!%&>%5*5&5*/+!.*;;$'%!>)!?$.*8!5)4$!8+.!8?/+<!.$?/<'84#*,!<'/&4%!8%!%#/:+!*+!F*<&'$!] >$-/:B!!• U8'.!,/4)!+$:%484$'%!8'$!5#$!?/%5!%&>%5*5&5$.!/;!8--!?$.*8!8?/+<!8--!8<$!<'/&4%!
:*5#!NR\!/;!8--!/+-*+$!&%$'%!#8(*+<!%5/44$.!/'!'$.&,$.!5#$*'!#8'.!,/4)!,/+%&?4A5*/+B!!Z+-)!5#$!/-.$%5!8<$!<'/&4!Q22iS!#8%!8!+/58>-)!-/:$'!'85$!/;!%&>%5*5&5*/+!Qa]\SB!!
!!
!!!!!!!!!!!!!!!
!!!!!!!!!!!!
• 7&>%5*5&5*/+!/;!/+-*+$!;/'!4#)%*,8-!b`b!'$+58-%!/'!4&',#8%$%!Q:#$5#$'!L/(*$%!/'!"`!7#/:%S!*%!#*<#$%5!8?/+<!5#$!)/&+<$%5!8<$!<'/&4%!Q0_AaN!)$8'!/-.%SB!!g$5!*5!844$8'%!5#85!5#85!%&>%5*5&5*/+!*%!-/:$%5!8?/+<!5#$!a2ANN!.$?/<'84#*,1!4$'#84%!<*($+!5#$!#*<#$'!-*@$-*#//.!/;!;8?*-*$%!:*5#!)/&+<$'!,#*-.'$+!*+!5#85!8<$!,85$</')B!o Z5#$'!5)4$%!/;!?$.*8!8-%/!$I4$'*$+,$!%&>%5*5&5*/+!8,'/%%!8<$!<'/&4%1!5#/&<#!*+!
.*;;$'$+5!4$',$+58<$%B!P44'/I*?85$-)!a[\!A!a_\!/;!'$%4/+.$+5%!.$?/+%5'85$!'$.&,5*/+!/'!%&>%5*5&5*/+!/;!?8<8C*+$!4&',#8%$%1!b`b!?/5*/+!4*,5&'$!'$+58-%!8+.!4&',#8%$%1!8+.!"`!%#/:!b`b!'$+58-%!8+.!4&',#8%$%!:#$+!4'/(*.$.!/+-*+$!8-5$'+85*($%B!
o "#/&<#!5/!8!-$%%$'!$I5$+5!Qa3\S1!5#$'$!*%!8!5$+.$+,)!8,'/%%!8--!8<$!<'/&4%!5/!.$A,'$8%$!4&',#8%$!/;!?/(*$!5*,@$5%!:#$+!'$%4/+.$+5%!8-%/!8,,$%%!/+-*+$!8-5$'+8A5*($%B!
• k$+$'8--)1!8%!5#$!4/4&-85*/+!%8?4-$!8<$%1!*5!5$+.%!5/!%&>%5*5&5$!#8'.!,/4)!-$%%B!!
&
J.%40'.&5/&5/'0452':*&',&45*0/=&+,1&-,/'./'9&7:./&5%<.)&7:5'&-,/'./'&':.*&7.1.&3,%'&70880/=&',&45*&+,19&1.%4,/)./'%&%:,7.)&%,3.7:5'&3,1.&+8.?06080'*&0+&41,;0).)&.?-8(%0;.&-,/'./'&5/)&61.5<20/=&,1&1.=(851&/.7%&;05&%'1.5380/.)&544%>
Figure 9 - Substitution of Traditional Media for Online Alternatives
Non-Tablet UsersTablet Users
Reduced or Cancelled Subscription
Upgraded TV Subscription
45%
65%
40%40% 45%
55%50%
20%
36%42%
39% 42% 42%33%
39%
7%
0%
10%
20%
30%
40%
50%
60%
70%
18-24 25-34 35-44 45-54 55+
30%
22%
26%
19%
24%
14%
14%
12%
16%
18%
18-24
25-34
35-44
45-54
55+
Tablet Users
Non-Tablet Users
35%42%
25%
55%
44% 42% 43%
28%
40% 39%
29%
43%
32% 33% 34%
12%
0%
10%
20%
30%
40%
50%
60%
18-24 25-34 35-44 45-54 55+
:011*6;$*.7$<*=)6$>3.73.9-$4$B3,,3.9.#--$()$C*;$
12
Willingness to Pay (for content) !!
L$.*8!$I$,&5*($%!8'$!,/''$,5!5/!>$!,/+,$'+$.!8>/&5!5#$!$;;$,5%!/;!.*<*58-!%&>%5*5&5*/+!8+.!8>/&5!5#$!'*%@!/;!4'*,$!,/?4'$%%*/+!*+!.*<*58-!QF*<&'$!03SB!!7&'($)!'$%4/+.$+5%!8,'/%%!8--!8<$!<'/&4%!.$?/+%5'85$!8!<$+$'8-!.$%*'$!5/!48)!-$%%!/'!5#$!%8?$!;/'!/+-*+$!8,,$%%B!!
!F"G!>$-*$($%!5#$%$!'$%4/+%$%!8'$!%#84$.!>)!$I4$'*$+,$!5/A.85$!:*5#!4'*,*+<!;/'!/+-*+$!($'%*/+%!/;!5#$%$!?$.*81!48'5*,&-8'-)!;/'!4'*+5!Q+$:%48A4$'%!8+.!?8<8C*+$%S1!:#$'$!5#$!/+-*+$!($'%*/+%!#8($!/;5$+!>$$+!;'$$B!
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• Z+-*+$!8,,$%%!5/!+$:%484$'%!Q%/?$!%&>%,'*>$'%S!• Y/??$',*8-!;'$$!,/+5$+5!;/'!"`!8+.!?/(*$%!!• P>*-*5)!5/!%#8'$!8,'/%%!.$(*,$%!;8(/'$.!;/'!?&%*,B!
j$%4/+%$%!8>/&5!:*--*+<+$%%!5/!48)!.*.!+/5!,#8+<$!?85$'*8--)!8?/+<!'$%4/+.$+5%!:#/!&%$.!58>-$5%!/'!+/5B!U/:$($'1!:*--*+<+$%%!5/!48)!./$%!(8')!>)!8<$!8+.!*+,/?$!-$($-B!
3%
8%
5%
4%
31%
38%
50%
43%
66%
55%
46%
53%
0% 50% 100%
Online Magazine
Online News Access
Streaming Movie
Downloaded Movie
More The Same Less
Figure 10 - Willingness to Pay for Online Access
Figure 11 - Willingness to pay for print / online bundling
22%
15%
18%
21%
13%
26%
18%
40%
48%
49%
49%
47%
37%
47%
38%
37%
33%
30%
40%
36%
36%
0% 20% 40% 60% 80% 100%
18-24
25-34
35-44
45-54
55+
All Tablet Users
Total Users
Yes No Maybe
:011*6;$*.7$<*=)6$>3.73.9-$4$>3.73.9-$+;$!;2#$)&$<#73*$D$?#@-2*2#6-$
13
Summary of Findings by Type of Media Newspapers Z+-*+$!8,,$%%!#8%!%&>%5*5&5$.!4'*+5!+$:%484$'%!85!8!#*<#$'!'85$!8+.!?/'$!'84*.-)!5#8+!8+)!/5#$'!?$.*8B!7*+,$!5#$!4/4&-8'*C85*/+!/;!5#$!G+5$'+$5!*+!5#$!$8'-)!0]]3%1!+$:%48A4$'!48*.!,*',&-85*/+!#8%!>$$+!*+!%$($'$!.$,-*+$1!8+.!48*.!,*',&-85*/+!*+!5#$!67!5/.8)!*%!8%!-/:!8%!*5!:8%!*+!0]2N1!$($+!5#/&<#!5#$!67!4/4&-85*/+!*%!?/'$!5#8+!./&>-$!:#85!*5!:8%!5#$+B!!P!@$)!.'*($'!/;!5#*%!*%!5#85!?&,#!/;!5#$!/+-*+$!8,,$%%!5/!+$:%484$'%!#8%!#*%A5/'*,8--)!>$$+!;'$$B!
"#$!%5&.)!%#/:$.!5#85!23\!/;!'$%4/+.$+5%!+$*5#$'!%&>%,'*>$.!5/!+/'!4&',#8%$.!*+.*A(*.&8-!,/4*$%!/;!+$:%484$'%1!8+.!5#85!5#$!*+,-*+85*/+!5/!4&',#8%$!#8'.!,/4)!+$:%48A4$'%!,/''$-85$.!!.*'$,5-)!:*5#!8<$l!5#$!)/&+<$'!5#$!8<$!<'/&4!5#$!-$%%!5#$!5$+.$+,)!5/!4&',#8%$!#8'.!,/4)!+$:%484$'!QF*<&'$!0M).!
!!!
"#$!;*+.*+<%!'$4'$%$+5!+/!V+$:W!+$:%!'$<8'.*+<!:#/!*%!$+<8<$.!'$8.*+<!#8'.!,/4)!+$:%484$'%B!!D#85!V*%W!+$:1!#/:$($'1!8'$!5#$!'$%4/+%$%!'$<8'.*+<!:*--*+<+$%%!5/!48)!;/'!/+-*+$!+$:%484$'%1!8+.!:#85!;$85&'$%!'$%4/+.$+5%!8'$!:*--*+<!5/!48)!;/'B!!
D#*-$!RN\!/;!'$%4/+.$+5%!%8)!5#$)!'$8.!+$:%!/+-*+$1!/+-)!M0\!48)!;/'!5#85!/+-*+$!8,,$%%1!8+.!8+/5#$'!R\!:#/!./!+/5!,&''$+5-)!48)!%585$!5#$)!:/&-.!>$!:*--*+<!5/!48)!;/'!*5B!d&5!%58&+,#!/+-*+$!+/+A48)$'%!:#$'$!8%@$.!%4$,*;*,8--)!:#85!;$85&'$%!5#$)!?*<#5!>$!:*--*+<!5/!48)!;/'1!2a\!/;!58>-$5!&%$'%!8+.!a2\!/;!+/+A58>-$5!&%$'%!*+.*,85$!5#85!5#$)!,/&-.!>$!*+.&,$.!5/!48)!;/'!V%/?$W!;$85&'$%B!!
F/'!$I8?4-$1!2a\!/;!0_AMN!
Figure 12 – Acquiring Hard Copy Newspapers
&
&":.&)5'5&%(==.%'%&':5'&/.7%454.1%&%:,(8)&,++.1&5&-,3260/.)&410/'&K&)0=0'58&%(6%-104'0,/9&5/)&'51=.'&'568.'&1.2%4,/)./'%&0/&':.&451'0-(8518*270880/=&5=.&15/=.%&',&,++.1&+.5'(1.%&034,1'5/'&',&'568.'&(%.1%>
52%
30%
23%
16%
13%
55+
45-54
35-44
25-34
18-24
13%
20%
19%
23%
21%
55+
45-54
35-44
25-34
18-24
31%
44%
54%
60%
63%
55+
45-54
35-44
25-34
18-24
50%
3%
19%
27%
0% 20% 40% 60%
Neither
Both Subscribe to and purchase individually
Purchase individually
Subscribe toSubscribe Purchase Individually Neither
:011*6;$*.7$<*=)6$>3.73.9-$4$>3.73.9-$+;$!;2#$)&$<#73*$D$?#@-2*2#6-$
14
)$8'!/-.%!8+.!N2A2N!)$8'!/-.%!*+.*,85$!5#85!5#$)!?*<#5!48)!;/'!8!.*<*58-!8+.!4'*+5!,/?>/!%&>%,'*45*/+!*;!>&+.-$.!5/<$5#$'B!
"#*%!<'/&4!8-%/!$I4'$%%$%!8!.$%*'$!;/'!&+*H&$!;$85&'$!%$5%!8+.!?/>*-$!844%B!L/%5!%$$?!8-'$8.)!5/!>$!4'*+5!>&)$'%B!"#*%!<'/&4!8+.!5#$!<'/&4!:#/!8'$!:*--*+<!5/!48)!;/'!4'*+5!8+.!/+-*+$!>&+.-$%!8'$!4'/>8>-)!5#$!-/:$%5A#8+<*+<!;'&*5!;/'!;&5&'$!/+-*+$!>&)$'%B! P-5#/&<#!'$%4/+.$+5%!8'$!$I5'$?$-)!.*%*+,-*+$.!5/!48)!;/'!4'*+5$.!,/+5$+51!5#$)!%#/:$.!%/?$:#85!?/'$!4'/4$+%*5)!5/!>&)!*;!4'/(*.$.!5#$!;/--/:*+<!;$85&'$%=!• cI,-&%*($!,/+5$+51!!• d'$8@*+<!8+.!'$<&-8'!+$:%1!8+.f/'!• m$:%!V844%WB!!
!P%!%#/:+!>$-/:!*+!F*<&'$!0a!58>-$5!&%$'%!#8($!8!.*;;$'$+5!%$5!/;!4'$;$'$+,$%!:#$+!*5!,/?$%!5/!:#85!;$85&'$%!5#$)!?*<#5!>$!:*--*+<!5/!48)!;/'B!D#*-$!$I,-&%*($!,/+5$+5!*%!5#$!5/4!4'$;$'$+,$!;/'!58>-$5!8+.!+/+A58>-$5!&%$'%1!4'*/'*5*$%!.*;;$'!%*<+*;*,8+5-)!>$5:$$+!5#$!<'/&4%!/+!/5#$'!;$85&'$%B!!
&
"568.'&(%.1%&:5;.&5&)0++.1./'&%.'&,+&4102,10'0.%&+1,3&/,/2'568.'&(%.1%&7:./&0'&-,3.%&',&7:5'&410/'&+.5'(1.%&':.*&30=:'&6.&70880/=&',&45*&+,1>
Tablet Users Non-Tablet Users1. Exclusive Content Exclusive Content
2. Custom Content Custom Content
3. App App
4. High Quality Photos Breaking news
5. Breaking news Industry-specific
6. Regular news Local news
7. Weather Weather
8. Exclusive Video Exclusive Video
9. Local Content High-quality video
10. Industry-specific Regular news
11. Sports In-dept editorial
12. Book / movie reviews Sports
13. In-depth editorial Book / Movie review
14. Opinions / Features Opinions / features
15. Other Other
More like an app!
Figure 13 – Features Worth Paying For
47%2%6%7%10%10%15%12%13%14%15%17%21%21%21%24%
65%2%4%6%5%5%6%9%8%8%8%9%8%10%13%15%
0% 10% 20% 30% 40% 50% 60% 70%
No, I wouldn't pay at all
Other
Opinions and features
Local content
Book or movie reviews
Sports news
In-depth editorials
Breaking news alerts
Weather
Regular news
Exclusive video footage
Industry-specif ic information
High-quality color photos
Streamlined apps with useful !
Customized content geared to !
Exclusive content
Non-Tablet Users Tablet Users
:011*6;$*.7$<*=)6$>3.73.9-$4$>3.73.9-$+;$!;2#$)&$<#73*$D$<*9*E3.#-$
15
Magazines G+!,/+5'8%5!5/!5#$!/+-)!23\!/;!'$%4/+.$+5%!:#/!4&',#8%$!#8'.!,/4)!+$:%484$'%1!R3\!/;!'$%4/+.$+5%!*+.*,85$!5#85!5#$)!8,H&*'$!#8'.,/4)!?8<8C*+$%!8+.!2[\!#8($!%&>%,'*4A5*/+%!Q02\!>/5#!%&>%,'*>$!8+.!4&',#8%$!*+.*(*.&8--)SB!!
!!!!!!!!!!!!!!!!!!!6+-*@$!+$:%484$'%1!:#$'$!4&',#8%$'%!.*;;$'!>)!8<$1!?8<8C*+$!>&)*+<!Q:#*,#!,8+!?/'$!$8%*-)!58'<$5!%4$,*;*,!?8'@$5%f%&>%,'*>$'%S!./$%!+/5!.*;;$'!.'8?85*,8--)!>)!8<$!<'/&41!*+,-&.*+<!5#/%$!:#/!./!+/5!>&)!8+)!?8<8C*+$%B!
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
Figure 14 – Acquiring Hard Copy Magazines
&
L0;./&':.&56080'*&,+&35=5F0/.%&',&).80;2.1&5/&5''15-'0;.9&-(215'.)&.?4.10./-.&5/)&-80-<2':1,(=:&+(/-'0,/580'*9&5/)&':.&.?4.-'.)&0/2-1.5%.&0/&'568.'&4./.'15'0,/9&7.&6.280.;.&':5'&35=52F0/.%&35*&%..&03241,;.)&,/80/.&1.;.2/(.&,44,1'(/0'0.%&0/&':.&+('(1.>&
30%
15%
13%
41%
0% 20% 40% 60%
Neither
Both Subscribe to and purchase individually
Purchase individually
Subscribe to
53%
36%
42%
40%
33%
55+
45-54
35-44
25-34
18-24
11%
11%
13%
16%
17%
55+
45-54
35-44
25-34
18-24
24%
35%
29%
31%
33%
55+
45-54
35-44
25-34
18-24
13%
17%
16%
14%
16%
55+
45-54
35-44
25-34
18-24
Subscribe
Purchase Individually Neither
Both Subscribe and Purch.
:011*6;$*.7$<*=)6$>3.73.9-$4$>3.73.9-$+;$!;2#$)&$<#73*$D$!#,#F3-3).$
16
Television Z($':#$-?*+<-)1!'$%4/+.$+5%!8,'/%%!8<$!<'/&4%!%5*--!4'$;$'!(*$:*+<!5$-$(*%*/+!/+1!:$--1!8!5$-$(*%*/+!QF*<&'$!02SB!!P%!;/'!%?8'54#/+$%1!/+-)!0\!/;!'$%4/+.$+5%!4'$;$''$.!5/!:85,#!"`!/+!5#$%$!.$(*,$%B!7&,#!-/:!'$%4/+%$%!8'<&$!8<8*+%5!5#$!$;;/'5%!/;!%/?$!,/?48+*$%!5/!>'*+<!?/>*-$1!.*<*A58-!5$-$(*%*/+!5/!5#$%$!%?8'54#/+$%1!%*+,$!*5!*%!,-$8'-)!5#$!.$(*,$!/;!-8%5!'$%/'5!;/'!"`!(*$:*+<B!!!!!!!!!!!!!!!
!!
!23\!/;!'$%4/+.$+5%!*+.*,85$!5#85!5#$)!:85,#!"`!/+-*+$B!Z;!5#$%$!M2\!*+.*,85$!5#85!5#$)!,&''$+5-)!48)!;/'!/+-*+$!(*$:A*+<B!P+!8..*5*/+8-!M3\!/;!'$A%4/+.$+5%!*+.*,85$!8!:*--*+<A+$%%!5/!48)!;/'!,$'58*+!,/+A5$+5!;$85&'$%!*+,-&.*+<!,/?A?$',*8-!;'$$!,/+5$+5!/'!8+)A5*?$f8+):#$'$!(*$:*+<B!G+!5/58-1!N2\!/;!'$%4/+.$+5%!8-'$8.)!48)!;/'!/+A-*+$!8,,$%%!5/!"`!/'!,/&-.!>$!*+.&,$.!5/!./!%/!:*5#!5#$!V'*<#5W!;$8A5&'$%B!
!P?/+<!58>-$5!&%$'%!8+.!+/+!58>-$5!&%$'%!8-*@$1!5#/%$!;$8A5&'$%!:/'5#!48)*+<!;/'!*+A,-&.$!,/??$',*8-!;'$$!(*$:A
*+<1!8+)5*?$f8+):#$'$!(*$:*+<!8+.!,/+5$+5!+/5!8(8*-8>-$!$-%$:#$'$!QF*<&'$!16SB!!!
Figure 15 – Preferred TV Viewing Devices
&
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1%
1%
1%
9%
12%
9%
67%
3%
1%
1%
0%
11%
21%
62%
0% 20% 40% 60% 80%
Other
Don’t know
Smartphone
Tablet
Desktop
Laptop
TV Set
Non-Tablet Users Tablet Users
TV Set
63%
68%
58%
67%
57%
55+
45-54
35-44
25-34
18-24
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P44'/I*?85$-)!03\!?/'$!58>-$5!&%$'%!&4<'8.$.!5#$*'!%&>%,'*45*/+%!5#8+!.*.!+/+A58>-$5!&%$'%B!!"#$'$!:$'$!+/!%*<+*;*,8+5!.*;;$'$+,$%!*+!&4<'8.$!>$#8(*/'!'$-85$.!5/!*+,/?$!/'!<$+.$'!QF*<&'$!0RSB!!
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Figure 16 – Features Worth Paying For
Figure 17 – TV Subscription Changes Because of Online Alternatives
Figure 18 – Subscription Upgraders by Age
Figure 19 – Change in DVD Purchase & Rental of TV Shows
&& &
& & && & &
& && & && & &
& & &&
24%
12%7%
56%
15% 13%8%
64%
0%10%20%30%40%50%60%70%
Upgraded subscription
Reduced subscription
Cancelled subscription
Made no changes
Tablet Users Non-Tablet Users
24%
19%
26%
22%
30%
55+
45-54
35-44
25-34
18-24
18%
16%
12%
14%
14%
55+
45-54
35-44
25-34
18-24
5%
48% 47%
3%
36%
61%
0%10%20%30%40%50%60%70%
Increased Stopped or reduced
No Changes
Tablet Users Non-Tablet Users
6%
45% 49%
4%
36%
61%
0%10%20%30%40%50%60%70%
Increased Stopped or reduced
No Changes
Tablet Users Non-Tablet Users
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Figure 20 – Preferred Movie Viewing Devices
Figure 21 – Frequency of Paid Online Movie Viewing
&
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2%
1%
2%
7%
18%
69%
4%
1%
1%
0%
28%
66%
0% 20% 40% 60% 80%
Other
Don’t know
Smartphone
Tablet
PCs
TV Set
Non-Tablet Users Tablet Users
47%
24%
28%
54%
17%
29%
0% 20% 40% 60%
Infrequently/Never
Sometimes
Often/Regularly
Non-Tablet Users Tablet Users
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Figure 22 – Features Worth Paying For
Figure 23 – Changes in Movie Engagement Because of Online Access
&
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& &=1.5'.1&& 5/&),&
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65%58% 56%
8%12% 12%
22%26% 25%
4% 4%8%
0%
10%
20%
30%
40%
50%
60%
70%
Theater Going DVD Purchases DVD Rentals
No Change Stopped Reduced Increased
45%
35%
55%
10%
27%
3%
42%
52%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Movies that are not available elsewhere
Movie has extra features
Access while movie is still in the theater
No, I wouldn't pay at all
18-24 25-34 35-44 45-54 55+
33%
21%
69%
19%22%
10%
40%
50%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Movies that are not available elsewhere
Movie has extra features
Access while movie is still in the theater
No, I wouldn't pay at all
18-24 25-34 35-44 45-54 55+
Tablet Users
Non-Tablet Users
:011*6;$*.7$<*=)6$>3.73.9-$4$>3.73.9-$+;$!;2#$)&$<#73*$D$<0-3'$
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Figure 24 – Device & Access Preference for Electronic Music
Figure 25 – Features Worth Paying For (by Age)
75%
83%
83%
73%
25%
17%
17%
27%
0% 20% 40% 60% 80% 100%
Tablet
Desktop Computer
Laptop Computer
Smartphone
Digital Streaming (through a subscription)Downloading (to own a digital f ile)
61%
33%
54%
62%
32%
44%
62%
28%
40%
52%
27%
47%
55%
22%28%
Music that can be easily shared across devices
A large number of downloads per month for only monthly subscription
Unlimited number of songs streamed for one monthly
subscription
18-24 25-34 35-44 45-54 55+
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About FTI – Critical Thinking at the Critical Time !
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Insight
Analysis
Data
nsight th management teams and stakeholders to evaluate, develop
lement corporate strategies that will improve top - and bottom - ults and increase enterprise value.
in-depth business plan reviews; operations, IT and network as-nts; synergy analyses, merger integration, performance im-ent, valuations and restructurings.
h Analysis
-specific analysis for communication, media and technology ses to shape metrics-driven strategic direction and improve op-l performance.
mic analysis from macro-level business and regulatory trends to vel subscriber and customer economics, such as customer ac-
n NPV, box office conversion of P&A spending and other indus-ific metrics.
p complex financial projections and business case models for investors and companies to identify key drivers of a business, e risks and upside opportunities, and run sensitivity analysis to
e potential business performance. etailed benchmarking databases with financial, operational and
unt statistics as well as M&A synergy benchmarks to each busi- alysis.
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• Optimize CPM & sell-through
• Optimize sales efficiency
• Determine digital / print offers
• Segment customers to optimize revenues
• Optimize website engagement
• Upgrade mobile sites
• Design & integrate mobile into editorial work flows
• Digital ops to select & integrate mobile technologies and
• mobile apps Content / Digital Ops Web
SalesSub-scriptions
To stabilize and thrive, digital media companies must value their unique content, become more effective at eaching multi-media audiences based on highly creative sales, and create a “runway” for aggressive digital evenue growth: all this while right-sizing their expense base.
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Reshaping the Customer Experience
Firms with a focus on strategy or operational Improvement
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• Marvel Entertainment• Mobix Interactive• Musicland• NBC Vivendi• Recording Industry Association
of America • Regal Cinemas• RHI Entertainment • Sesame Street• SESAC• Sony Pictures
• Sony Music (/BMG)• The Terminator 4• Tower Records• USA Network• United Artist Theatres• Viacom (Rhapsody Music
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Table of Figures !Figure 1 - Digital Media Usage ....................................................................................................................................... 7!Figure 2 - Media Engagement ........................................................................................................................................ 7!Figure 3 - Online Consumption of Newspapers and Magazines ..................................................................................... 8!Figure 4 - Online Consumption of Movies and TV .......................................................................................................... 8!Figure 5 – Hours Spent Per Week on Social Networks .................................................................................................. 9!Figure 6 – Hours Spent Per Week on Social Networks by Age and Device ................................................................... 9!Figure 7 – Substitution of Traditional Media for Online Alternatives ............................................................................. 10!Figure 8 - Online Alternatives by Tablet / Non-Tablet Users ........................................................................................ 10!Figure 9 - Substitution of Traditional Media for Online Alternatives .............................................................................. 11!Figure 10 - Willingness to Pay for Online Access ......................................................................................................... 12!Figure 11 - Willingness to pay for print / online bundling .............................................................................................. 12!Figure 12 – Acquiring Hard Copy Newspapers ............................................................................................................. 13!Figure 13 – Features Worth Paying For ........................................................................................................................ 14!Figure 14 – Acquiring Hard Copy Magazines ............................................................................................................... 15!Figure 15 – Preferred TV Viewing Devices ................................................................................................................... 16!Figure 16 – Features Worth Paying For ........................................................................................................................ 17!Figure 17 – TV Subscription Changes Because of Online Alternatives ........................................................................ 17!Figure 18 – Subscription Upgraders by Age ................................................................................................................. 17!Figure 19 – Change in DVD Purchase & Rental of TV Shows ..................................................................................... 17!Figure 20 – Preferred Movie Viewing Devices .............................................................................................................. 18!Figure 21 – Frequency of Paid Online Movie Viewing .................................................................................................. 18!Figure 22 – Features Worth Paying For ........................................................................................................................ 19!Figure 23 – Changes in Movie Engagement Because of Online Access ...................................................................... 19!Figure 24 – Device & Access Preference for Electronic Music ..................................................................................... 20!Figure 25 – Features Worth Paying For (by Age) ......................................................................................................... 20!Figure 26 – Methods of Newspaper Access ................................................................... Error! Bookmark not defined.!Figure 27 – Newspaper Purchasing (by Age) ................................................................. Error! Bookmark not defined.!Figure 28 – Willingness to Pay for Online News (by Age) – Respondents Who Currently Pay for News ............... Error! Bookmark not defined.!Figure 29 – Willingness to Pay for Online News (by Age) – Respondents Who Currently Do Not Pay for News .. Error! Bookmark not defined.!Figure 30 – Features Worth Paying For .......................................................................... Error! Bookmark not defined.!Figure 31 – Willingness to Pay for Combo Print + Digital (by Age) ................................. Error! Bookmark not defined.!Figure 32 – Acquiring Hardcopy Magazines ................................................................... Error! Bookmark not defined.!Figure 33 – US Digital Magazine Consumption .............................................................. Error! Bookmark not defined.!Figure 34 – Reductions in Magazine Purchases in Light of Digital Alternatives ............. Error! Bookmark not defined.!Figure 35 – Willingness to Pay for Online Magazine Content (by Age) .......................... Error! Bookmark not defined.!Figure 36 – Preferred TV Viewing Device ....................................................................... Error! Bookmark not defined.!Figure 37 – Tablet Users’ Willingness to Pay for Online TV ........................................... Error! Bookmark not defined.!Figure 38 – Frequency of Paying for Online TV (by Age) ............................................... Error! Bookmark not defined.!Figure 39 – Willingness to Pay for Online TV (by Age) – Respondents who do not pay for Online TV Error! Bookmark not defined.!Figure 40 – Features That Would Induce Paying for Online TV – Respondents who do not Pay for Online TV .... Error! Bookmark not defined.!Figure 41 – Features Worth Paying For by Age ............................................................. Error! Bookmark not defined.!Figure 42 – Change in DVD Purchase or Rental of TV Shows ....................................... Error! Bookmark not defined.!Figure 43 - TV Subscription Changes Because of Online Alternatives ........................... Error! Bookmark not defined.!Figure 44 – TV Subscription Changes Because of Online Alternatives .......................... Error! Bookmark not defined.!Figure 45 – Age of Subscription Upgraders .................................................................... Error! Bookmark not defined.!Figure 46 – Subscription Modifications and Gender ....................................................... Error! Bookmark not defined.!Figure 47 – Preferred Movie Viewing Devices ................................................................ Error! Bookmark not defined.!Figure 48 – Frequency of Paid Online Movie Viewing .................................................... Error! Bookmark not defined.!Figure 49 – Willingness to Pay for Online (by Age) ........................................................ Error! Bookmark not defined.!Figure 50 – Movie Features Worth Paying For (Respondents who do not Pay for Online Content) ... Error! Bookmark not defined.!Figure 51 – Movie Feature Worth Paying For (by Age) .................................................. Error! Bookmark not defined.!Figure 52 – Currently Purchase or Rent DVDs ............................................................... Error! Bookmark not defined.!Figure 53 – Changes in Movie Engagement Due to Online Access ............................... Error! Bookmark not defined.!Figure 54 – Traits of Respondents Who Stopped or Reduced Movie Engagement ....... Error! Bookmark not defined.!Figure 55 – Preferred Method of Listening to Music ....................................................... Error! Bookmark not defined.!
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Figure 56 - Device and Access Preference For Electronic Music ................................... Error! Bookmark not defined.!Figure 57 - Device Preference for Listening to Music (by Tablet/Non-Tablet Users) ...... Error! Bookmark not defined.!Figure 58 - Features Worth Paying For .......................................................................... Error! Bookmark not defined.!Figure 59 - Features Worth Paying For (by Age) ............................................................ Error! Bookmark not defined.!!