How rapidly is tv audience behaviour evolving?

How Rapidly is TV audience behaviour

evolving?

Steve Weaver

Nine Network Australia

The TV Landscape

PVR’s Multi-channels

online

The PVR

Rapid adoption and transformation of viewing

behaviours

Overseas PVR Penetration- Finland

PVR adoption faster by comparison

2007 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10

Australia- DTT Australia- PayAustralia- PVR Overseas Mkt- DTTOverseas Mkt- PVR

While DTT mirrors overseas uptake, PVR uptake is accelerating

PVR over internet for content choice

PVR uptake had to compete against online video

offerings in overseas markets

Live and playback profile

Viewing Behaviour by session type differs

Live is still the dominant viewing behaviour

97.7%

94.2%

2.4%

2.9%

6.2%

7.5%

3.8%

4.6%

3.2%

2.8%

1.8%

3.2%

3.1%

2.9%

3.1%

Timeshift- Total TV

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

1 2 3 4 5 6 7 8 9 10 11

Weeks

% S

hif

t

TTL TV PPL With PVR TTL TV PVR and 0-17 TTL TV PVR and 18-24 TTL TV PVR and 25-39

TTL TV PVR and 40-54 TTL TV PVR and 55+

Hitting 12%- similar to

more mature markets

Timeshift- Free to Air Viewing

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

1 2 3 4 5 6 7 8 9 10 11

Weeks

% S

hif

t

TTL FTA (incl Spill) PPL With PVR TTL FTA (incl Spill) PVR and 0-17 TTL FTA (incl Spill) PVR and 18-24

TTL FTA (incl Spill) PVR and 25-39 TTL FTA (incl Spill) PVR and 40-54 TTL FTA (incl Spill) PVR and 55+

55+ viewing behaviour

readily adopting

Building during ‘survey

period’

Timeshift- Subscription TV Viewing

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

1 2 3 4 5 6 7 8 9 10 11

Weeks

% S

hif

t

TTL STV PPL With PVR TTL STV PVR and 0-17 TTL STV PVR and 18-24 TTL STV PVR and 25-39

TTL STV PVR and 40-54 TTL STV PVR and 55+

Pattern not repeated

for pay viewing

Playback more stable

Genre Trend

0%

1%

1%

2%

3%

3%

3%

3%

3%

4%

4%

5%

6%

10%

Sports Event

News/CA

Special Sports

Kid'd

Movies

Mini series

Info/Lifestyle

Light Ent.

Comedy

Other Sports

Specials

Docu

Reality

Drama

Timeshifting TTV

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

18h00

18h30

19h00

19h30

20h00

20h30

21h00

21h30

22h00

22h30

23h00

23h30

V; Good Wife; House; Desperate Housewives; Mentalist;

Slots that have timeshift demand- Top Gear

Viewers treat playback library as an additional channel

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

18h00

18h30

19h00

19h30

20h00

20h30

21h00

21h30

22h00

22h30

23h00

23h30

Playback library easing competition for screen

0

100

200

300

400

500

600

1 2 3 4 5 6 7 8 910

11

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2007 2008 2009 2010

solo 18-39 co-view 18-39 with ttlppl

Decreasing Solus Live Viewing

Has the PVR changed the way we view?

1,400

1,500

1,600

1,700

1,800

1,900

2,000

2,100

19:3

3:00

- 19

:33:

59

19:3

5:00

- 19

:35:

59

19:3

7:00

- 19

:37:

59

19:3

9:00

- 19

:39:

59

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1:00

- 19

:41:

59

19:4

3:00

- 19

:43:

59

19:4

5:00

- 19

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19:4

7:00

- 19

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59

19:4

9:00

- 19

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19:5

1:00

- 19

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3:00

- 19

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5:00

- 19

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19:5

7:00

- 19

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9:00

- 19

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1:00

- 20

:01:

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3:00

- 20

:03:

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5:00

- 20

:05:

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20:0

7:00

- 20

:07:

59

20:0

9:00

- 20

:09:

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20:1

1:00

- 20

:11:

59

20:1

3:00

- 20

:13:

59

20:1

5:00

- 20

:15:

59

20:1

7:00

- 20

:17:

59

20:1

9:00

- 20

:19:

59

20:2

1:00

- 20

:21:

59

20:2

3:00

- 20

:23:

59

20:2

5:00

- 20

:25:

59

20:2

7:00

- 20

:27:

59

20:2

9:00

- 20

:29:

59

20:3

1:00

- 20

:31:

59

Overnight Consolidated

we still watch programs en-masse…

and some of us still leave during ad breaks!

But break viewing behaviour does differ by age

0

5

10

15

20

%

% increase consolidated vs live- program % increase consolidated vs live- ad break

TTL PPL 0-17 18-24 25-39 40-54 55+

Multichannels

Viewing behaviour is changing

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 2 3 4 5 6 7 8 910

11

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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Sh

are

Network ABC1 Network 7 Network 9 Network TEN Network SBS ONE TTL STV

Network ABC2 Network ABC3 Network 7TWO Network GO! Network ONE Network SBS TWO

1 June 2008

12 April 2009

28 June 2009

23 August 2009

1 November 2009

30 November 2009

9.4%

Multichannel

9.4% 11.4% 7.6%

Multichannels increasing choice

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

18h00

18h30

19h00

19h30

20h00

20h30

21h00

21h30

22h00

22h30

23h00

23h30

Particularly daytime, fringe and late night viewing

Increased choice leads to increased usage

Increased choice brings new viewers

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

18h00

18h30

19h00

19h30

20h00

20h30

21h00

21h30

22h00

22h30

23h00

23h30

Young males increasing

Increased choice provides choice of platform

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12

2009 2010

Week No.

Sh

are

Sydney Melbourne Brisbane Adelaide Perth

Low penetration subscription tv market Adelaide

readily adopting multichannels

Pay penetration estimates

21%

23%

25%

27%

29%

31%

33%

35%

37%

39%

Ja

nu

ary

Feb

ruary

Ma

rch

Ap

ril

Ma

y

Ju

ne

Ju

ly

Au

gu

st

Se

pte

mb

er

Oc

tob

er

No

ve

mb

er

Dec

em

be

r

Ja

nu

ary

Feb

ruary

Ma

rch

Ap

ril

Ma

y

Ju

ne

Ju

ly

Au

gu

st

Se

pte

mb

er

Oc

tob

er

No

ve

mb

er

Dec

em

be

r

Ja

nu

ary

Feb

ruary

Ma

rch

2008 2009 2010

Sydney Melbourne Brisbane Adelaide Perth

Adelaide growth slower

by comparison

Online

TV relatively unaffected

11

37

70

17

32

910

2425

75

1

43.7

28

0

20

40

60

80

100

Breakfast (5.30 -9am) Morning (9am-1pm) Afternoon (1-5pm) Early Evening (5-8pm) Evening (8-11pm) Late Night (11pm-

5.30am)

Internet Radio Newspapers Magazines TV Video Cinema

29

5549

11

20.2

12.77

2524

68

1.3

41.4

23

0

20

40

60

80

100

Breakfast (5.30 -9am) Morning (9am-1pm) Afternoon (1-5pm) Early Evening (5-8pm) Evening (8-11pm) Late Night (11pm-

5.30am)

20

04

2

00

9

Concurrent Media Exposure (CME)

82

67

30

46

70

48

14

57

67

64

32

45

68

52

21

54

0 20 40 60 80 100

I enjoy watching TV

TV helps me to relax

Make appointment to view

programs

Study program guides to

choose what I watch

Selective about programs I

watch

Like to do other activities

whilst watching TV

I really make an effort to

watch TV

I often talk about what I

see on TV

2004 2006 2008 2009

Effort up

and multi-

tasking up

Source: Centre for Research Excellence

Mapping CME to Neurostates

Video consumption- most engaged with TV

Source: Centre for Research Excellence

Neurostates minute by minute

Free

Browsing

Web Video

Streaming

Mobile

Video

Viewer Engagement by platform

0.53

0.430.47

0.33

0

0.1

0.2

0.3

0.4

0.5

0.6E

ng

ag

em

en

t

Wave 1

TV Internet- Browsing Internet- Video Mobile

Neurostates confirm brain activity most engaged when

consuming via tv

CME mapped to Neurostates

0.53

0.430.47

0.33

0

0.1

0.2

0.3

0.4

0.5

0.6

En

ga

ge

me

nt

Wave 1

TV Internet- Browsing Internet- Video Mobile

Source: Centre for Research Excellence; Nine Neuro Cricket Study

Real World Impact

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

En

ga

ge

me

nt

Wave 1 Wave 2

TV Internet- Browsing Internet- Video Mobile2 M

on

th C

ricket

Seaso

n

3 Screens Drive each other

TV

Online

Mobile

TV drives

online and 3rd

screen

engagement

2 reasons for going online

TV ONLINE

Catch up

experience Extension

experience

Extension experience- far more engaged

“Extension experience” viewer

Year on Year Movement (%) of those who watch 10+ hours of TV

by Internet Usage (Entertainment and TV purposes)

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

14-17 18-24 25-39 40-54 55+

Age

%

Heavy Internet users (for Entertainment and TV purposes)

Medium-Light Internet users (for Entertainment and TV purposes)

Daily Internet users (for Entertainment and TV purposes)

Extension Experience- TV show websites

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

shar

e o

f d

aily

pag

e im

pre

ssio

ns

Traffic peaks for ninemsn TV show websites

ACA (weekday) Today (weekday) Sixty Minutes (Sun)Getaway (Thurs) Farmer Wants a Wife (Mon) Underbelly (Mon)NRL Footy Show (Thur)

Nielsen estimates 61% of online Australian’s have watched TV while using the Internet.

Extension Experience- Olympics

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

12 m

idnig

ht

1 AM

2 AM

3 AM

4 AM

5 AM

6 AM

7 AM

8 AM

9 AM

10 A

M

11 A

M

12 n

oon

1 PM

2 PM

3 PM

4 PM

5 PM

6 PM

7 PM

8 PM

9 PM

10 P

M

11 P

M

13/02/2010 14/02/2010 15/02/2010 16/02/2010 17/02/2010 18/02/2010 19/02/2010 20/02/2010 21/02/2010

22/02/2010 23/02/2010 24/02/2010 25/02/2010 26/02/2010 27/02/2010 28/02/2010 1/03/2010 2/03/2010

Torah B.

Lydia L.

Viewing Behaviour is morphing

TV remains central

PVR/multi-channels provides control and

choice

Online provides extension and

augmentation

All of which lead to a richer core tv viewer

experience