U.S. Consumers Multitask with TV and Want Cloud Services
May 2011
According to Deloitte’s 2011 “State of the Media Democracy” survey, a U.S.-based research firm, 71% of U.S. consumers say that watching TV—on any device—is still their favorite media activity. Perhaps more importantly, 86% said that TV advertising has the most impact on their buying decisions, which supports the importance of TV advertising despite the rumors of large-scale cord cutting.
Deloitte surveyed 2,000 U.S. consumers (aged 14 to 75) about their media consumption during September to October 2010. The survey also found that consumers are multitasking while watching TV, with 42% on the Internet, 29% on cell phones while 26% are using text messages or instant messaging.
Phil Asmundson, Vice Chairman and Technology, Media and Telecommunications Industry Leader at Deloitte said that U.S. consumers want to be part of the real-time conversation and are embracing TV and social media platforms. Asmundson added that the combination of social media and TV means the traditional TV advertising model is still “alive and well.”
China has also seen a migration from the TV to the Internet. According to CTR China, a company specializing in Chinese market research, TV is still the top choice for media consumption with 72.8%. However, computer and Internet usage is very close behind at 62.8%. Since the company’s previous research, CTR China found that time spent watching TV decreased by 42.5%, while time spent using the Internet increased by 44.8%. Like U.S. consumers, Chinese consumers also multitask by using a computer or smartphone while watching TV.
Acceptance of Cloud Storage
Deloitte also looked at the growth of cloud-based consumer services and found that 32% of respondents stated a desire to have an online media storage service they could access from any device. Also, 43% of respondents said they wanted to move their content to any device and platform easily and effectively, indicating that cloud storage could be a viable opportunity.
Analyst Comment: One of the first big tests of a consumer cloud-based service will be the upcoming launch of Apple’s music service, which will allow consumers to host and stream their music from the Internet. Already, both Amazon and Google have launched their cloud-based music services; however, neither company has signed deals with the major music labels. Apple, meanwhile, has been working behind the scenes and has signed three out of five of the major labels, and should have all five ready before it launches publicly.
It seems that Amazon and Google either were not able to sign music deals, or somehow decided to go ahead and launch without the backing of the labels. By doing this, Amazon and Google may have given Apple a huge market advantage. Apple already has existing deals with the labels for iTunes, but a cloud-based music service would mean consumers won’t have to sync and download songs to their portable devices or smartphones, and instead just listen and stream from the Internet.
There is speculation that Apple will eventually offer a cloud-based movie and TV service in the future that will work with Apple TV. Clearly the success of the music service will help Apple’s launch of its cloud movie and TV service.
|
 |
To subscribe to MRG's IPTV Monthly Bulletin, go to: www.mrgco.com/bulletin.html
U.S. Households with TVs Decline
May 2011
According to Nielsen, the percentage of U.S. households with TVs has declined for the first time ever, declining by just over 2 percentage points from 98.9% currently to 96.7%.
Analyst Comment: Younger consumers are going without Pay-TV services mostly due to multi-platform TV viewing such as PC and tablets. It may have less to do with cord cutting, than with customers not buying new TV sets. As the digital handover has now been complete in the U.S., it seems that consumers are opting to ditch their old TVs and hold off on purchasing new sets, especially for second bedrooms. Younger consumers are more likely to use PCs or game consoles, which may be why the number of TVs is starting to decline. It should be interesting to follow up on what Nielsen reports in 2012. More coverage to follow in the upcoming Hybrid STB report.
|
 |
To subscribe to MRG's IPTV Monthly Bulletin, go to: www.mrgco.com/bulletin.html
SeaChange's Migration to System Integration
May 2011
SeaChange said it has served as Systems Integrator and primary VOD Provider for Türk Telekom’s “Tivibu” IPTV platform in Turkey. The Telco’s IPTV platform is currently available in 30 cities across Turkey and includes over 100 linear SD and HD channels and start-over TV. SeaChange’s professional services group developed the operational process and procedure designs to support the rollout along with any future releases and features. The group also trained Türk Telekom’s staff on system operations and is currently providing remote managed services. SeaChange integrated its “TV Navigator” middleware into the set-top boxes with back office software provided by Argela, also based in Turkey. Other key technologies include Envivio’s encoders, Verimatrix’s digital rights management and encryption, as well as set-tops from AirTies, Motorola and Vestel.
Analyst Comment: As one of the most established VOD Vendors, SeaChange’s migration to system integration is a signal of how important on-demand video services is now and will be in five years.
|
 |
To subscribe to MRG's IPTV Monthly Bulletin, go to: www.mrgco.com/bulletin.html
|
