October 17-19, 2012 Global Client Council Series Copyright © 2012 The Nielsen Company. Confidential and proprietary. INDUSTRY INSIGHTS The Consumer Perspective Global Client Council October 18, 2012 Jonathan Carson
October 17-19, 2012 Global Client Council Series
Copyright © 2012 The Nielsen Company. Confidential and proprietary. October 17-19, 2012 Global Client Council Series
Copyright © 2012 The Nielsen Company. Confidential and proprietary. October 17-19, 2012 Global Client Council Series
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
INDUSTRY INSIGHTS
The Consumer Perspective
Global Client Council October 18, 2012
Jonathan Carson
October 17-19, 2012 Global Client Council Series
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Consumers shifting away from Live TV Average Daily Time Spent – Total Population (hh:mm)
Source: Nielsen People Meter, NetView, VideoCensus, Mobile Video Report, Mobile Connected Device Report, Gaming 360 Survey
Q2 2011 Q2 2012
Live
TV
4:20 0:03 0:01
0:20
DV
R
Onl
ine
Vide
o
Sm
artp
hone
Vi
deo
0:02 0:12 D
VD
TOTA
L
Vide
o th
roug
h
Gam
e C
onso
les
Live
TV
4:10 0:06 0:01
0:21
DV
R
Onl
ine
Vide
o
Sm
artp
hone
Vi
deo
0:03 0:10
DV
D
Vide
o th
roug
h
Gam
e C
onso
les
-4% +8%
-17% +63%
+55% +27%
Among users, time shifting accounts for 1:48 DAILY
“On Demand” increased 14% - Now ~16% of total video
Total video usage roughly flat year-over-year
Tabl
et V
ideo
0:01
Tabl
et V
ideo
0:03
+69% Modeled from survey data
Modeled from survey data
October 17-19, 2012 Global Client Council Series
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88%
69%
38%
24%
13%
87%
75%
43% 36%
28%
84% 79%
45% 44%
56%
16%
4%
DVD PC w/Internet Video Game DVR Smartphone Tablet Smart TV
Q3 2008 Q3 2010 Q3 2012
Device adoption fuels on-demand usage
Devices Owned in TV Households
Source: Nielsen Npower for all devices except for Smartphone. Source for Smartphone: Nielsen Mobile Insights
+20% +81% +341%
+63% from Q1 +63%
from Q1
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DVR Time-Spent by Other Devices Owned in the Home (among DVR Homes)
May 2012
Tablet Home
Non-Tablet Home
Video Game Home
Non-Video Game Home
PC w/ Internet Home
Non-PC w/
Internet Home
DVR Penetration: 64% 41% 55% 36% 51% 24%
Source: Nielsen NPower
Will consumers migrate away from the DVR to other forms of time-shifting?
October 17-19, 2012 Global Client Council Series
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Game Consoles could be a big on-demand enabler
Note: Some homes have multiple types/brands of consoles.
Source: Nielsen NPower Q1 2012, Gaming 360 Survey 2011
PS3 users
3.5 HOURS
26% of Console time
is video
Wii users
3 HOURS Xbox 360 users
3 HOURS Average # of hours streamed monthly
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Dramatically different behaviors across different age groups
Weekly Time Spent Consuming Video
K 2-11
T 12-17
A 18-24
A 25-34
A 35-49
A 50-64
A 65+
Traditional TV 23:34 21:37 22:32 27:06 32:02 40:02 45:20
DVR 1:55 1:30 1:34 3:04 3:17 3:06 1:59
Internet Video 0:09 0:23 1:21 1:17 0:58 0:41 0:16
Mobile Video N/A 0:22 0:23 0:18 0:09 0:03 <0:01
Source: Nielsen NPower Q2 2012, Video Census Q2 2012, Mobile Video Report Q2 2012
7% Video Usage (13%, if you factor out “non-users”)
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Ranked by In-Home Television Behavior Average Daily Minutes
TV Viewership Quintiles # of Persons (000) Online Video Internet+ TV
Quintile 1 TV 47,265 2.6 27.3 604.1
Quintile 2 TV 47,276 2.2 19.2 306.5
Quintile 3 TV 47,262 2.1 15.7 191.9
Quintile 4 TV 47,266 3.2 16.8 111.4
Quintile 5 TV 47,268 4.2 14.1 33.6
Non–TV Viewers 1,372 6.1 18.3 0.0
Lightest TV viewers are heavy for online video
Source: Nielsen Npower Q2 2012, Video Census Q2 2012, Mobile Video Report Q2 2012
30% Video Usage by Light TV and non-TV Viewers
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Ranked by In-Home Streaming Behavior Average Daily Minutes
Online Video usage Quintiles
# of Persons (000) Stream Internet+ TV
Quintile 1 29,041 19.4 59.6 230.1
Quintile 2 29,038 2.7 36.5 260.5
Quintile 3 29,042 0.9 24.6 250.3 Quintile 4 29,045 0.3 17.1 267.7 Quintile 5 29,035 0.0 9.6 265.1 Non-Streamers 92,508 0.0 1.3 238.4
Online video usage highly concentrated
Source: Nielsen Npower Q2 2012, Video Census Q2 2012, Mobile Video Report Q2 2012
83% Online Video Usage by 20% of Users
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4:50 4:49 4:47 4:54
5:01
5:20
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Mobile Video Monthly Time Spent
Mobile Video time spent strong, audience growing
15,267
37,048
Q2 2009 Q2 2010 Q2 2011 Q2 2012
Mobile Video Audience (000’s)
+143%
Source: Nielsen Mobile Insights and Nielsen Mobile Video Report
+10%
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Co-Viewing prominent on Tablet and Smartphones Frequency of Simultaneous Usage
While Watching TV: Tablets Tablet Owners (Q2 2012 n=3,440)
Frequency of Simultaneous Usage While Watching TV: Smartphones
Smartphone Owners (Q2 2012 n=4,950)
Source: Nielsen Q2 2012 Mobile Connected Device Report
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1% 11%
78%
11% Watching more frequently than before Same as before
Watching less frequently than before Do not watch it anymore
Impact of New Tablet Purchase on Television Purchased a Tablet in Past 6 months Q2 2012
Source: Nielsen Connected Device Survey, Q2 2012
24%
26%
27%
30%
35%
44%
45%
49%
52%
61%
Looked up coupons or deals related to a TV ad
Looked up product information for a TV ad
Watched videos unrelated to TV show
Checked sport scores
Looked up information related to the TV program
Social Networking
Shopping
Used an app
Web Browsing
Checked email
Tablet Activities while Watching TV Purchased a Tablet in Past 6 months Q2 2012
Tablets appear to be complimentary to TV
October 17-19, 2012 Global Client Council Series
Copyright © 2012 The Nielsen Company. Confidential and proprietary. October 17-19, 2012 Global Client Council Series
Copyright © 2012 The Nielsen Company. Confidential and proprietary. October 17-19, 2012 Global Client Council Series
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
INDUSTRY INSIGHTS
The Consumer Perspective
Global Client Council October 18, 2012
Jonathan Carson