- Appetite for content drives demand for subscription models versus free-to-air
- Social media is part of the viewing experience, offering new revenue streams for service providers
- Established Western markets are most likely to remain loyal to traditional viewing habits, Eastern
Europe and Southeast Asia keen to embrace change
Research Reveals New TV Viewing Habits Toward Paid Content and Social Television
1. Motorola Research Reveals New TV Viewing Habits Toward Paid Content and Social
Television
-- Appetite for content drives demand for subscription models versus free-to-air
-- Social media is part of the viewing experience, offering new revenue streams for service providers
-- Established Western markets are most likely to remain loyal to traditional viewing habits, Eastern
Europe and Southeast Asia keen to embrace change
-- U.S. and Japan watch the most television
LIBERTYVILLE, Ill., Nov. 17, 2010 /PRNewswire/ -- Paid-for television content -- whether through cable, satellite or the Internet -
- is preferred over free-to-air services -- even in markets where free programming is more readily available, according to global
research from Motorola Mobility, a subsidiary of Motorola, Inc. (NYSE: MOT).
Motorola Mobility's Global 2010 Media Engagement Barometer -- an independent global study of video-consumption habits
among 7,500 consumers in 13 markets by research agency Vanson Bourne -- shows that while free-to-air services are
available to 67 percent of global viewers, compared to 57 percent for paid-for services, the most preferred TV services are
subscription only.
The research also shows that social media is changing viewing experiences. Forty-two percent of viewers globally have had an
email conversation, engaged in an instant message chat or used a social network to discuss a program or video while they
were watching it. Of this group, 22 percent said that social-media multi-tasking is a regular part of their viewing experience and
61 percent would be prepared to pay more for a service that offered these capabilities.
The future looks bright for high-definition television products and services worldwide. Of viewers surveyed, 75 percent either
own or plan to own an HD television in the next 18 months and 25 percent are expected to upgrade their TVs to include 3D in
the same timeframe.
"The research clearly shows a changing television landscape, one where subscription services are becoming mainstream,
augmented by social activities revolving around Internet chat and networking channels," said Bill Ogle, chief marketing officer,
Motorola Mobility. "As we advance further into the Internet Era of TV, the ability for service providers to differentiate their offers
will become even more crucial as consumers look for extra value from their subscriptions. The good news is that, based on
these findings, consumers are willing to pay for the services providing the value."
Though the TV is still central in most homes, viewing habits have evolved alongside consumer expectations of where content is
consumed. Just over two-thirds of the sample said it was either quite or very important to be able to access free content on
devices other than the main television set in the home; that compared to only 39 percent when asked a similar question for
subscription content. This suggests the majority of paid-for content is consumed on one device (the TV) and will remain so for
the foreseeable future.
A quarter of respondents said it is important to be able to access free content when out and about; this is even truer in China
where 49 percent of respondents said this sort of access is very important.
"The findings suggest that the huge increase in the availability of video content is leading to viewers tiering their viewing habits
in terms of preference, notionally based around payment," Ogle said. "Yes, they're watching content on laptops and other
devices, but they are still staying loyal to the television set. This is a powerful message for the service providers. Stickiness
does exist, providing all parts of the offering are attractive to subscribers."
Community
China, the United Arab Emirates and Russia are the most enthusiastic when it comes to integrating social media into their
viewing habits. The Japanese, Germans and viewers in the Nordics are the least likely to chat, use instant messaging or a
platform like Twitter or Facebook® to discuss a program or video while they are watching it. According to the study, 84 percent
of Japanese viewers have never undertaken such an activity. Globally, however, 58 percent of people who have used social
media during a TV program would change their service provider if this was offered as an integrated service.