room214 sample research: tv & entertainment

Digital Shifts: How New Media Is Changing TV

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DIGITAL SHIFTS: HOW NEW MEDIA IS CHANGING TV

About This Presentation This presentation is a joint effort between Room 214 and Crimson Hexagon. Using Crimson Hexagon data, as well as publicly-available data, we have attempted to uncover insights into the changing landscape of television entertainment.

For more than 50 years, traditional television broadcasters and more recently, cable networks, have held sway with global consumers. Today, technology is rapidly shifting this power structure. Broadcasters are more challenged than ever to adapt to viewers’ quickly evolving tastes for new kinds of content, as well as to emerging channels and vehicles for that content.

This landmark study from Room 214 and Crimson Hexagon examines technology’s growing impact on television audiences and viewership and provides readers with a path to understanding and embracing the industry’s fast-changing norms. Understanding these changes is vital if you are involved in television programming, content creation (including broadcast advertising), or delivery.

We hope you enjoy this report. If you would like to discuss the implications of this data on your business, or inquire how Room 214 and Crimson Hexagon can help solve your business problems, please contact lmaynard@room214 and [email protected].

Introduction

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Changes In Behavior Two significant behavioral changes are redefining the entertainment landscape and require networks to evolve rapidly to keep their shows, content, and ad buys relevant to a demanding consumer set.

•  People now consume television via time-shifted DVR, online (legally), online (illegally), mobile device, internet streaming to TV, and a wide variety of other methods.

•  Viewers now consume multiple forms of media at the same time, such as watching TV on a television while checking Facebook on a computer.

Introduction

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Changes In Engagement And Delivery •  Consumers expect networks to deliver content where they want it and when they want it. If the network doesn’t

comply, they can simply find the content through illicit sources.

•  Many new products on the market make watching live television through a traditional provider an increasingly irrelevant experience. A recent study suggests that over half a million households have opted to forgo cable for online content1.

•  We continue to see the funding and growth of products focused on multi-source consumption of entertainment. A great example of these efforts is Blip.tv’s mission, “to bridge the gap between the computer and the television and to bring quality online content everywhere.”2

Introduction

1Cheng, Roger, “Cutting the Cable Cord Gets Easier”, WSJ.com, October 13 2010

2Warren, Christina, “With Internet TV Booming, Blip.tv Raises $10.1M”, Mashable.com, May 2010

Changes in Consumer Behavior

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Changes In Touchpoints


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TV Should Work For Us With this change in touchpoints comes a change in consumer expectation. A recent comScore study found that viewers who watch online-only or a mix of TV and online desire TV to be flexible to their needs:

•  75% “selected online over TV because they were able to watch the show wherever they wanted” •  74% “selected online because they were able to watch the show on their own time” •  Additionally, for a viewing audience under 50, the majority watch time-shifted TV


Marketing Profs, “Online TV Viewers Tolerate Ads Well”, April 5, 2010. http://www.marketingprofs.com/charts/2010/3522/online-tv-viewers-tolerate-ads-well

Majority view time-shifted

Majority view live

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The Power User As of 2009, Pew has tracked a consumer group they call Four Or More. This techie group owns and uses four or more devices that connect to the internet. While this is, of course, a small portion of the population, it’s a growing portion as well. This group’s behaviors signal trends we can see for the future of entertainment consumers overall:

•  This group is predominantly male and slightly more affluent than your average internet user

•  40% are 18-29 and 49% are 30-49

•  91% go online daily

•  Over-indexes on content creation with 39% on Twitter (vs. 19% average) and 24% blogging (vs. 11%)

•  With increased smartphone penetration and an explosion of tablet PC’s, this highly-connected segment will grow significantly in the next five years. This growth means a huge increase in users at potential touchpoints between networks and consumers


Source: Madden, Mary, “Four or More: The New Demographic”, Pew Internet & American Life Project, June 27, 2010

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Entertainment Should Be Everywhere USC’s Henry Jenkins developed a concept he calls Transmedia Storytelling, which is the act of telling a story on multiple disparate media platforms, often simultaneously.

This concept is central to our understanding of tv entertainment in the new media landscape. It allows us to understand how a network can support an individual show through tv, print, web, and social platforms in a way that drives profit.

Currently, many networks and shows are at odds with the web, as the nature of free and shared content removes the networks’ ability to make advertising dollars. But, to Jenkins’ point, we are now in a world of Transmedia Expectation.


“People are pissed if they go and seek out a place on the web that they think should be related to a television show and it turns out

that there isn’t rich transmedia content there.”

The Research: Consumer Behavior

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Engaging In Multi-Screen Viewing On the following pages, you can see an in-depth look at just how different each of these platforms are. In each case, we are examining users who are online while they watch TV. As consumers now use multiple forms of technology, simultaneously, to get the most of a TV viewing experience, we can capture how they discuss this experience.

•  Viewers can now simultaneously share opinions, discuss content, text votes, etc. with other viewers, known and unknown to them, while watching live

•  Networks have the ability to deliver a rich media experience outside of the TV itself, one that drives real-time (vs. time-shifted viewing) or prolongs the experience past a specific weekly time slot.

•  Blogs, forums, Facebook, and Twitter are used very differently when people are viewing live, which means that network strategy needs to always take this into account.

Watching TV And...

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Updating Twitter Twitter requires nothing more than a 140-character attention span; it’s easy to Tweet and watch TV at the same time.

•  People are watching TV and talking about being bored, being in bed, eating and even, self-consciously, noting they are on Twitter

•  Few mention consumption method (DVR, for example), but 14% do make state they are watching a show or movie online through both legal and illegal platforms

•  Little discussion of actual show content; users are more focused on sharing what they are doing in addition to watching TV

Watching TV And...

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Updating Facebook Users on Facebook are, predominantly, just letting us know they are watching a TV show. However, because Facebook allows more information to be shared, conversations are longer and more detailed.

•  22% of users share additional information about their lived, either through context (where they are watching, who else is with them, etc.) or by sharing a list of all their activities throughout the day, including the media the currently consuming

•  19% of users are starting a conversation about the show

Watching TV And...

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Discussing On Forums Forum users often come to share a specific expertise or discuss a specific topic. Based on this, a large part of conversation in forums focus on viewing setups and technical specifications.

Watching TV And...

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Multi-Screen Apps: What Consumers Say •  Users mainly discuss two things, the shows they are watching or the badges they have received

•  90% of the overall conversation comes through automated Twitter messages

•  Very low discussion or usage outside of brand-mandated messaging

Changes in Engagement

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Changes in Advertising This shift in viewing habits and viewer demands has also changed the way we deliver, and can measure the impact of, advertising in television. Additionally, we are now seeing that the content itself can be used as advertising, from Facebook posts to webisodes.

•  There is not a strong correlation between Nielsen ratings and social media buzz.

•  SocialSenseTV’s Network Ratings Report suggests that social buzz should be considered in ad buys. High buzz could suggest a strong relationship between viewers and a given show, even if not reflected in ratings . This also means that media buys for lower-rated shows with high online buzz can produce significant impact at a lower price

•  Branded content integration provides a great example of the relationship between advertising and social media. When Modern Family used an iPad in an episode prior to iPad release, the network was able to measure $516k in earned media through mentions that included both the show and product directly after airing1

•  Online-only ad buys may also be a route for achieving more eyeballs.

•  A recent comScore study suggested that online viewers tolerate 6-7 minutes of advertising per hour, versus the 4 minutes per hours for regular2

•  Anecdotally, we’ve observed that some shows, like Project Runway, have more advertising in recent On-Demand episodes than they do in older On-Demand or live episodes

Changes in Network Engagement

1. Neely, Dan, “Use Social Media Ratings and Analysis to Inform Upfront Buys, imediaconnection.com, May 18th, 2010

2. Marketing Profs, “Online TV Viewers Tolerate Ads Well”, April 5, 2010. http://www.marketingprofs.com/charts/2010/3522/online-tv-viewers-tolerate-ads-well

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Delivering On Transmedia Storytelling Jenkins identified 7 individual characteristics that allow a story to catch hold in this transmedia environment. Proper

utilization of characteristics can drive additional, meaningful, user engagement. In the following pages, I will elaborate what these look like when put into practice:

•  Drillability: The ability for a story to create “fanatic fandom”, allowing fans to dig deeper and deeper into a story on their own time and through their own efforts

•  Multiplicity: A storyline doesn’t need to be continuous anymore. It can branch out on multiple platforms, with variations in plot and characters proceeding forward and not relating to each other. Example: Spider Man has multiple story executions across multiple continents that do not relate.

•  Immersion/Extractability: At times, we desire to be pulled into the fiction of a plotline, and at times we pull the fiction of the plotline into our own world. Good plots allow viewers to take advantage of this.

•  World Building: Potential for complexity in relationships that force us to chart the geography/relationship of things.

•  Seriality: The story can be told in chunks. You now see strategies in pre-show buildup as part of an overall serial structure. This also allows for a situation where the story in our head can be slightly different than the actual plot.

•  Subjectivity: We can access the viewpoints of different characters through blogs, Twitter handles, and Facebook posts from individual characters or actors.

•  Performance: We take this content, build on it, and play it out in our own life.


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Influencer Communities •  The Discovery Channel and USA have developed unique influencer communities focused on engaging those most

passionate about their network/show. These communities allow for individuals to develop expertise, complete tasks, get points, and gain recognition.

•  Concepts Used: Drillability, Seriality, Subjectivity


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Live Chats •  Live chats allow fans to interact with talent and those related to show. Talent, in character, give color to live

episodes or provide additional information outside of an episode. Previously, this information was only speculative or up to gossip and entertainment sites

•  Concepts Used: Subjectivity, Immersion/Extractability


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True Blood, as a whole •  HBO launched a widespread campaign prior to show launch that told a story through many different forms of

media. Bloodcopy.com served as a blog and social feed, pulling in information from pre-approved journalists, influencers, and the general public. The show had an extensive media buy, presenting print ads that advertised goods and services for actual brands, but targeted at vampires. They also bought out a Page 6-esque spread in Vanity Fair that shows vampires and celebrities together at events.

•  Concepts Used: Drillability, Multiplicity, Immersion/Extractability, Seriality, Performance


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Plot Expansion •  AMC manages over 90 Twitter handles related to Mad Men, and used their agency Brand Fiction Factory to take 17

of those handles and enact an entire plot line that was alluded to in-episode, but never actually filmed

•  Watch it here

•  Concepts Used: Multiplicity, Immersion, Subjectivity


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Multi-Screen Apps Three applications have come into market in the past year that are focused on Foursquare-like check-ins specific to television.

•  GetGlue, Tunerfish, and Miso ask users to check into a specific show, web video, or form of entertainment •  Check-ins are shared in a news stream and allow users to browse and discover trending content. •  Allows consumers to bring that experience into their own lives through badges and stickers

•  Concepts Used: Immersion/Extractability, Performance


Changes in Delivery

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New TV Emerges

Changes in Delivery

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TV Delivery When we take a look at the way consumer discuss New TV, we find that there is not a large amount of conversation driven by individual consumers. This is partly due to the barrier to entry: pulling entertainment from the internet involves multiple devices, and is still in a stage of early adoption.

•  Viewers stream movies online, download movie torrents, or watch them from Netflix On-Demand •  Streaming to TV is supported by XBox 360, Wii and other gaming platforms •  Much of this conversation about newer platforms like Google.tv, Apple.tv, Roku, Boxee, Slingbox, etc. happens in

blogs or forums, where users are discussing device strategy and configuration

Changes in Delivery

The Research: Behaviors by TV Type

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Discussion: Reality, Comedy, Drama While we are aware that many other categories of TV exist, we chose to limit this conversation to just these three. Why? Because, outside of sports, these three are the three most-watched categories on network and cable TV. For this study, we’ve selected top-rated shows in each category and used those shows as a way to dive deeper into multi-screen viewing and viewer’s use of technology around entertainment.

Behaviors by TV Type

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Sources We can make an assumption that different TV formats drive different types of conversations, but it also seems they drive conversation on different types of platforms. •  People are 12% more likely to blog about Reality TV than they are about Comedy TV •  Twitter is used more to discuss Comedy TV than it is to discuss Reality or Drama


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Sources Certain trends in overall volume are also very revealing:

•  You can see the “Glee effect” happening in comedy TV; overall conversation, especially on Twitter, spikes during and directly after an episode

•  On a show-by-show basis, you can track conversation to understand how spikes relate to actual air time, and uncover a show’s relationship to live viewing


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Intent to View, Viewing, and Viewed •  Intent to View and Viewing statements are a way to measure buzz prior to, during, and post episode


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Intent to View Data •  Overall, there is less conversation post-viewing than there is prior to or during.

•  73% of Drama, 69% of Reality, and 84% of Comedy conversation comes from Twitter, which may drive updates about intent to view or current activity, but not reviews of things that happened in the past


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Content What viewers are discussing really is different based on TV type. •  With Drama and Comedy, individuals discuss the intent of specific characters or, for especially shows that have

frequent guest stars (Glee, CSI), the actors themselves •  People love to hate Reality TV. Viewers consistently state they hate the content of or characters in a show, but

continue to watch it.


Conclusion

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Conclusion

A Few Thoughts to Take Away

•  A major shift in consumer expectation has taken place, and consumers will be unforgiving to networks and cable providers who do not embrace new media platforms and technologies

•  Look for continued adoption of alternative methods of watching TV (Boxee, Roku, Wii, Playstation, etc.) as well as practice of multi-screen viewing

•  Networks and advertisers are just starting to embrace new ways to deliver content and drive additional engagement; those who do so successfully with see greater success with target consumers

•  The major network and advertiser winners are embracing creative campaigns and taking risks to engage audience

•  Mining social conversations for insight into consumer behavior around a given show, advertisement, or product placement is of the utmost importance to properly target new media content and measure response to that content

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We Invite You To Learn More

In this new age of Television, consumers are their own broadcasters—continuously expressing their thoughts and opinions online while simultaneously engaging in other online behaviors. Therein lies a massive opportunity to capture a greater share of audience and attention. A deep understanding of the data surrounding this audience and its new habits is critical to reaching and captivating these television viewers.

These trends impact all departments, from marketing to media planning and from research to programming. If you are interested in learning more about these trends, or exploring how these trends are impacting your business, specifically, please reach out to us. We would love to help you solve your business problems.

Conclusion

Lauren Maynard Room 214

Director of Research [email protected]

@lpmaynard 303-444-9214 x123

Wayne St. Amand Crimson Hexagon

Sr. Director, Marketing [email protected]

@WayneSaint 617-547-1072 x101

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About Room 214 Room 214 is a Social Media Agency. We help companies connect to the people that matter most, creating value through social experiences that integrate intelligence, social network &

mobile technologies. You hire us to help with: Social media research and monitoring, campaign ideation, planning and management, Application development (Facebook, mobile,

dashboard), search advertising and social search optimization.

About Crimson Hexagon, Inc. Crimson Hexagon, founded in 2007, is the leading provider of real-time social media

monitoring and analysis to brands, agencies, media firms and their partners. Powered by patent-pending technology developed at Harvard University’s Institute for Quantitative Social

Science, the Crimson Hexagon ForSight™ platform overcomes the limits of traditional market research by delivering a real-time view of how engaged online consumers truly think

and feel about a brand or issue.

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