video on demand - nielsen global... · traditional advertising models are changing as innovative...
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1Copyright © 2016 The Nielsen Company
Video on demandHow worldwide viewing Habits are cHanging in tHe evolving media landscape
MARCH 2016
2 Video on demand
• TraditionaldefinitionsofwhatitmeanstowatchTVarechanging,and
consumersareincontrol.
• Nearlytwo-thirdsofglobalrespondentssaytheywatchsomeform
ofvideo-on-demandprogramming(includeslong-andshort-form
content).
• Mostviewersappeartobesupplementing,ratherthanreplacing,paid
traditionalTVservices(receivedthroughacableorasatellite).Nearly
three-quartersofglobalonlinerespondentssaytheypaysuchaservice
towatchprogramming;justoverone-quartersaytheypayanonline-
serviceprovider(suchasHulu,NetflixorAmazon).
• Nearlytwo-thirdsoftraditionalTV-packagesubscribersinthesurvey
plantomaintaintheirsubscriptions,butnearlyone-thirdsaytheyplan
tocanceltheirserviceinfavorofanonline-onlyprovider.(Althougha
recentNielsenstudyfoundthatveryfewofthosewhosaythisactually
docanceltheirservice.)
• Videoondemandisbecomingapartofdailyviewinghabitsformany.
AmongthosewhowatchanytypeofVODprogramming,43%saythey
watchatleastonceaday.
• Morethanhalfofglobalrespondents(51%)somewhatorstrongly
agreethatadsdisplayedbefore,afterorduringvideo-on-demand
programminggivethemgoodideasfornewproductstotry,and59%
saytheydon’tmindgettingadvertisingiftheycanviewfreecontent.
around the world
2
the topsy-turVy Video-Viewing landscape
3Copyright © 2016 The Nielsen Company 3
Notlongago,“watchingTV”meantsittinginfrontofthescreeninyour
livingroom,waitingforafavoriteprogramtocomeonatasettime.
Today,thegrowthofvideo-on-demand(VOD)programmingoptions
whereviewerscandownloadorstreamcontentfromeitheratraditional
TVpackageoranonlinesourceiscreatingextensiveopportunities
forconsumerswhohavegreatercontrolthaneverbeforeoverwhat
theywatch,whentheywatchandhowtheywatch.Andthenumberof
self-reportedVODviewersissignificant.Nearlytwo-thirdsofglobal
respondents(65%)inaNielsenonlinesurveyin61countriessaythey
watchsomeformofVODprogramming,whichincludeslong-andshort-
formcontent.
Viewinghabitsarenottheonlythingschanging.Traditionaladvertising
modelsarechangingasinnovativetechnologiessuchasprogrammatic
andaddressableadsallowadvertiserstoreachconsumersinnewand
creativeways.ManytraditionalTVproviders,includingnetworksand
multichannelvideo-programmingdistributors(MVPDs),arereevaluating
theirbusinessmodelsinordertoadaptbettertoconsumers’evolving
habits.Whileit’sclearthatbusiness-as-usualmethodswon’tworkin
alandscapethatischangingsorapidly,thefieldiswideopen,asall
playersarelookingtoexpandshare.
“Today’smedialandscapeiscomplex,butthegrowthofvideo-on-
demandprogrammingservicescancreateopportunitiesforallplayersin
themediaecosystem,”saidMeganClarken,president,NielsenProduct
Leadership.“Foraudiences,advertisersandcontentprovidersalike,
advantagewillbegainedwithanin-depthandkeenunderstandingof
notjusthowconsumerviewingdynamicsarechanging,butwhytheyare
changing.Twothingswerenevertruerthantheyaretoday:Contentwill
alwaysbeking,andconsumerswillcontinuetodemandgreatercontrol
andcustomizationoftheviewingexperience.Providerswhoexceed
standardsonbothfrontswillhaveanadvantage.”
TheNielsenGlobalVideo-on-DemandSurveypolledover30,000online
respondentsin61countriestogaugeworldwidesentimentaboutVOD
viewingandadvertisingmethods.Weexaminewho’swatchingon-
demandcontent,howthey’rewatchingandwhy.Wealsoexplorehow
online-serviceprovidersareaffectingthetraditionalTVlandscapeand
offerinsightsabouthowtoadaptastheecosystemcontinuestoevolve.
ABOUT THE GLOBAL SURVEY METHODOLOGY
Thefindingsinthissurveyarebased
onrespondentswithonlineaccess
in61countries(unlessotherwise
noted).Whileanonlinesurvey
methodologyallowsfortremendous
scaleandglobalreach,itprovides
aperspectiveonlyonthehabitsof
existingInternetusers,nottotal
populations—somethingparticularly
relevantwhenreportinganactivity
suchaswatchingvideo-on-demand.
Indevelopingmarketswhereonline
penetrationislower,audiencesmay
beyoungerandmoreaffluentthan
thegeneralpopulationofthatcountry.
Inaddition,surveyresponsesare
basedonclaimedbehaviorrather
thanactualmetereddata.Cultural
differencesinreportingsentimentare
likelyfactorsintheoutlookacross
countries.Thereportedresultsdonot
attempttocontrolorcorrectforthese
differences;therefore,cautionshould
beexercisedwhencomparingacross
countriesandregions,particularly
acrossregionalboundaries.
4 Video on demand
are Viewers replacing or supplementing selections?VODispopulararoundtheworld,butareviewersreplacingonevideo
servicewithanother,oraretheyaddingnewservicestotheirviewing
repertoire?
Justoverone-quarterofglobalonlinerespondents(26%)saythey
paytowatchbroadcastorVODprogrammingviasubscriptiontoan
online-serviceprovidersuchasHulu,NetflixorAmazon,compared
with72%whosaytheypaytowatchviaatraditionalTVconnection.
Consideringthis,itappearsthatmoresupplementingthansheddingis
takingplacearoundtheworld.Butresponsesvarywidelyfromregion
toregion.
NorthAmericaandAsia-Pacificleadtheway,with35%ofrespondents
inNorthAmericaand32%inAsia-Pacificindicatingtheypayanonline
serviceproviderforprogrammingcontent.Self-reportedusagein
Europefallswellbelowtheglobalaverage,witharesponserateof
11%.Justoverone-fifthofonlinerespondentsinLatinAmericaand
theMiddleEast/Africasaytheysubscribetoanonline-serviceprovider
(21%each).
5Copyright © 2016 The Nielsen Company
WATcHinG ViDEO pROGRAMMinG ViA A pAiD OnLinE-SERVicE pROViDERiS MOST pOpULAR in nORTH AMERicA AnD ASiA-pAcific
Self-RepoRted pAid SeRviCeS uSed to wAtCH bRoAdCASt And/oR vod pRogRAMMing*
latin america
asia-pacific
europe
middle east/ africa
*Respondentscouldselectmultipleserviceproviders.Doesnotincluderespondentswhodonotsubscribetoanypaidservice.
Source:NielsenGlobalVideo-on-DemandSurvey,Q32015
north america
44%
29%
32%
4%
31%
29%
21%
8%
54%
30%
35%
2%
44%
21%
11%
6%
56%
20%
21%
3%
ONLINE SERVICE ONLINE SERVICE
ONLINE SERVICE ONLINE SERVICE
ONLINE SERVICE
CabLE CabLE
CabLE CabLE
CabLE
SatELLItE SatELLItE
SatELLItE SatELLItE
SatELLItE
OthER OthER
OthER OthER
OthER
6 Video on demand
full stream ahead?SowhatdoestherisingpopularityofVODservicesmeanforfuture
viewingpatterns?
LookingspecificallyattheU.S.market,whereVODcontinuestogain
strongmomentum,Nielsenmeteredpaneldatashowsthathomeswith
subscriptionvideo-on-demand(SVOD)serviceswatchlessTV.Amajor
reasonforthisisthatSVODuserstendtobeyoungerandmoreaffluent
—twogroupsthatcustomarilyhavelowerTVviewinglevels.SVOD
householdsalsohavehigherTV-connectedanddigitaldeviceownership
thanthegeneralpopulation,buttraditionalTVstillaccountsforthe
majorityofviewinginthesehomes.
Whilethemajorityofrespondentsintheglobalonlinesurvey(68%)say
theyhavenoplanstocanceltheirexistingtraditionalserviceinfavorof
anonline-onlyservice,almostone-third(32%)saytheyplantocutthe
cord.ResponseswerehighestinAsia-Pacific,where44%ofrespondents
indicatetheyplantocanceltheircableorsatelliteserviceforanonline-
onlyservice.Lessthanone-quarterofLatinAmerican(24%),North
American(22%)andEuropean(17%)respondentshaveplanstocancel.
Itshouldbenoted,however,thatthedesiretocutthecorddoesn’t
necessarilytranslatetoactualbehavior.Infact,arecentNielsenstudyin
theU.S.showsthatonlyaverysmallpercentageofthosewhoexpressed
adesiretodroptheirmultichannelserviceactuallydidso.
Thelong-termimpactofgrowingonline-servicesubscriptionsis
amplifiedbytheirpopularityamongyoungerconsumers.Globally,
31%eachofGenerationZ(ages15–20)andMillennial(ages21–34)
respondentssaytheypayanonline-serviceproviderforcontent,
comparedwith24%ofGenerationX(ages35–49),15%ofBabyBoomer
(ages50–64)and6%ofSilentGeneration(ages65+)respondents.And
roughlyfour-in-10GenZ(40%)andMillennial(38%)respondentswho
subscribetocableorsatellitesaytheyhaveplanstocanceltheirservice
infavorofanonline-onlyoption—aratethatisnearlythreetimeshigher
thanforBabyBoomers(15%)andfourtimeshigherthanforSilentGen
respondents(9%).
7Copyright © 2016 The Nielsen Company
YOUnGER RESpOnDEnTS ARE MORE LikELY TO USE An OnLinE-SERVicEpROViDER AnD TO pLAn TO cUT THE cORD
peRCentAge of ReSpondentS wHo CuRRently pAy pRovideR foR pRogRAMMing*
*Respondentscouldselectmultipleserviceproviders.Doesnotincluderespondentswhodonotsubscribetoanypaidservice.
Source:NielsenGlobalVideo-on-DemandSurvey,Q32015
70% CAble And/oR SAtellite
31% online SeRviCe
5% otHeR
73% CAble And/oR SAtellite
31% online SeRviCe
5% otHeR
77% CAble And/oR SAtellite
24% online SeRviCe
4% otHeR
64% CAble And/oR SAtellite
15% online SeRviCe
4% otHeR
63% CAble And/oR SAtellite
6% online SeRviCe
2% otHeR
peRCentAge of CAble/SAtellite SubSCRibeRS wHo SAy tHey plAn to CAnCel SeRviCe in fAvoR of online-only SeRviCe
geneRAtion Z (AgeS 15–20)
MillenniAlS (AgeS 21–34)
geneRAtion X (AgeS 35–49)
bAby booMeRS (AgeS 50–64)
Silent geneRAtion
(AgeS 65+)
40%
38%
30%
15%
9%
8 Video on demand
“Theincreasingpopularityofonline-onlyvideoserviceswillcontinueto
putpressureonnetworksandMVPDs,butasubstantialreplacementof
onefortheotherisunlikely,”saidClarken.“Whilesomeconsumersare
cuttingbackontraditionalTVservices,manyaren’tseveringthecord
completely.Formostviewers,onlineandtraditionalservicesarenot
mutuallyexclusive,butcomplementary.Moreover,online-onlyservices,
networksandMVPDsfacemanyofthesamechallenges,including
rapidlyevolvingconsumerpreferences,anoverabundanceofchoice
andrisingcontentcosts.Inthenearterm,cordshavingislikelythe
biggestthreatasconsumersevaluatethebenefitofpremiumservicesor
networksandconsiderslimmerchannelpackagesthatprovideabetter
matchforbothpreferencesandwallets.”
OneclearadvantagefornetworksandMVPDsisthatthereisnosimple
replacementforlivenewsandsportsprogramming.Inaddition,these
providersmaintainliveaccesstoprograms,someofwhichdon’t
becomeavailableondemanduntillongafterthey’veoriginallyaired.
It’salsotruethatdealingwithasingleproviderratherthanmanaging
multipleaccountscanbeeasierforconsumers.
“Some networks and MVPDs are turning to a business model referred to as ‘tV Everywhere,’ which allows their customers to access content from their network through Internet-based services—either live or on demand,” said Clarken. “this type of service is a win-win for audiences and tV providers alike: Customers get more ways to view the content they’re already paying for, at no additional cost, while networks and MVPDs give consumers one less reason to explore alternative providers. the ability to access content anytime, anywhere, on any device represents the ultimate in convenience and choice for consumers, but not all networks and MVPDs have been able to check all of these boxes. to drive mass adoption of tV Everywhere, providers need to boost awareness, do a better job communicating the value proposition, and consolidate and simplify the user experience.”
9Copyright © 2016 The Nielsen Company
1VODprogrammingcanincludelong-andshort-formcontent.
Source:NielsenGlobalVideo-on-DemandSurvey,Q32015
the ins and outs of on-demandOn-demandisfastbecominganintegralpartofdailyviewinghabitsfor
many.Infact,amongthosewhowatchanytype1ofVODprogramming
(65%),morethanfour-in-10globalrespondentssaytheywatchatleast
onceaday(43%).Andit’snotjusttheyoungestrespondentsviewingon-
demandprogramming.WhileahigherpercentageofGenerationZand
Millennialrespondentsreportwatchingon-demandcontentdailyormore
often(49%and48%,respectively,watchdailyormoreoften)thantheirolder
counterparts,morethanone-fifthofSilentGenerationrespondents(21%)
andone-quarterofBabyBoomers(26%)saytheywatchatleastonceaday.
MoviesdominatethetypeofVODcontentwatchedacrossallregionsand
generations.Eightypercentofglobalrespondentswhowatchon-demand
contentsaytheyviewmovies,followedbyon-demandTVprograms(50%).
Whenitcomestopopularprogramgenres,comedies(38%)andoriginal
series(32%)rankthehighestglobally,followedbysportsanddocumentaries
(31%each).Twenty-twopercentofglobalrespondentssaytheywatchshort-
formvideocontent(videosof15minutesorlessinlength).
THE MAjORiTY Of VOD ViEWERS Of ALL AGES WATcH pROGRAMMinGA fEW TiMES A WEEk OR MORE OfTEn
Self-RepoRted viewing fRequenCy AMong tHoSe wHo wAtCH Any typeof vod pRogRAMMing on Any online deviCe
GENERatION Z (15–20)
MILLENNIaLS (21–34)
GENERatION X (35–49)
baby bOOMERS (50–64)
SILENt GENERatION (65+)
49% 34% 17%
48% 38% 14%
38% 43% 19%
26% 43% 31%
21% 40% 39%
Gotta have it(daily)
Love it (a few times per week)
Like it (3 times per month or fewer)
10 Video on demand
growth driVers and deterrentsThere’snoquestionthatVODservicesaretransformingtheways
audiencesconsumevideo.Butwhileseveralstrongmotivatingfactors
willsupportcontinuedgrowth,thereareafewbarrierstobemindfulof,
too.
Notsurprisingly,convenienceisaveryimportantfactorinthedecision
towatchVODprogramming.AmongthosewhowatchVOD,morethan
three-quartersofglobalrespondents(77%)somewhatorstronglyagree
theydosobecausetheycanviewcontentatatimethatisconvenientfor
them.AgreementwashighestinLatinAmerica(82%),NorthAmerica
(81%)andEurope(80%)andslightlylowerintheMiddleEast/Africa
(77%)andAsia-Pacific(76%).
RespondentsarealsowatchingVODcontentbecauseitallowsmultiple
peopleinthehouseholdtowatchdifferentprogrammingondifferent
devicesatthesametime.Two-thirdsofglobalrespondentswhowatch
VODagreethisisareasonforviewing(66%).Inaddition,among
thosewhowatchVODcontent,binge-watchingispopularanddriving
viewership.Sixty-sixpercentofglobalrespondentssaytheabilityto
watchmultipleepisodesinasinglesittingisamotivatorforwatching
VODcontent.ThisattributeismoreappealinginNorthAmerica(73%)
andAfrica/MiddleEast(70%)thanglobally.AndwhileMillennialsand
GenerationXarethemostlikelytoagreetheywatchVODbecause
theyliketocatchuponmultipleepisodesatonce(68%and67%,
respectively),almosthalfofrespondentsineveryothergeneration
somewhatorstronglyagreewiththisstatement.
TheperceptionofcostisanotherpotentialdriverfuelingVODgrowth.
Nearlysix-in-10globalrespondentswhowatchVODprogrammingsay
itislessexpensivethanprogrammingfromacableorsatelliteprovider
(59%),withabove-averageagreementinLatinAmerica(67%)andNorth
America(64%).
11Copyright © 2016 The Nielsen Company
Forallitsbenefits,VODhasshortcomings.Amongthosewhowatch
VODcontent,morethanseven-in-10globalrespondents(72%)say
theywishmoreprogrammingchoiceswereavailable.InaseparateU.S.
onlinesurveyofSVODviewers,limitedcontentselectionwasamongthe
topreasonsSVODsubscriberswerestreaminglesscontentthanwhen
theyfirststarted.
Two-thirdsofglobalrespondents(67%)agreewatchingVOD
programmingonanonlineormobiledeviceisnotasgoodaswatching
onabiggerscreen.Sentimentissimilaracrossregionsandgenerations.
12 Video on demand
LatIN aMERICaaSIa-PaCIfIC EuROPE MIDDLE EaSt/afRICa NORth aMERICa
cOnVEniEncE iS THE pRiMARY DRiVER Of VOD ViEWinG
peRCentAge of vod vieweRS wHo SoMewHAt/StRongly AgRee witH StAteMent
dRiveRS deteRRentS
i CAn view At A tiMe tHAt iS Convenient foR Me
i wiSH tHeRe weRe MoRe vod pRogRAMMing CHoiCeS AvAilAble
i like to CAtCH up on Multiple epiSodeS At one tiMe
pRogRAMMing iS leSS eXpenSive tHAn A CAble oR SAtellite pRovideR
eACH peRSon in My HouSeHold CAn wAtCH diffeRent pRogRAMMing At tHe SAMe tiMe
wAtCHing vod pRogRAMMing on An online oR Mobile deviCe iS not AS good AS wAtCHing on A biggeR SCReen
76%77%
68%
68%
63%
57%
80%62%
63%
61%
68%
52%
77%72%
68%
68%
70%
58%
82%73%
65%
66%
68%
67%
81%68%
67%
64%
73%
64%
Source:NielsenGlobalVideo-on-DemandSurvey,Q32015
13Copyright © 2016 The Nielsen Company
OLDER RESpOnDEnTS BinGE-WATcH LESS VOD, BUT RESpOnDEnTSOf ALL AGES LOVE THE cOnVEniEncE Of VOD
peRCentAge of vod vieweRS wHo SoMewHAt/StRongly AgRee witH StAteMent
geneRAtion Z(15–20)
MillenniAlS (21–34)
geneRAtion X(35–49)
bAby booMeRS (50–64)
Silent geneRAtion
(65+)
I CaN VIEw at a tIME that IS CONVENIENt
fOR ME
I LIkE tO CatCh uP ON MuLtIPLE EPISODES at
ONE tIME
VOD IS LESS EXPENSIVE thaN a CabLE OR
SatELLItE PROVIDER
I wISh thERE wERE MORE VOD
PROGRaMMING ChOICES aVaILabLE
watChING VOD ON aN ONLINE OR MObILE
DEVICE IS NOt aS GOOD aS watChING
ON a bIGGER SCREEN
EaCh PERSON IN My hOuSEhOLD CaN
watCh DIffERENt PROGRaMMING at thE
SaME tIME
70%
60%
59%
55%
68%
62%
77%
70%
68%
60%
75%
67%
79%
66%
67%
61%
74%
67%
83%
57%
61%
52%
66%
67%
82%
44%
48%
38%
39%
66%
Source:NielsenGlobalVideo-on-DemandSurvey,Q32015
dRiveRS
deteRRentS
14 Video on demand
staying afloat in a sea of adVertisingGreaterprogrammingchoicesalsomeanmorecompetingadvertising
messagesforaudiences.Consumersareinundatedwithan
overwhelminglyhighnumberofadsonadailybasis,andthey’relooking
tocutthroughtheclutter.Sixty-twopercentofglobalrespondents
whowatchVODsayonlineadsdisplayedbefore,duringorafterVOD
programmingaredistractingandtwo-thirds(65%)wishtheycouldblock
allads.
Thegoodnewsforadvertisersisthatmanyconsumersseevaluein
ads,butthevaluepropositionmustberight.Infact,morethanhalfof
globalrespondentswhowatchVOD(51%)somewhatorstronglyagree
thatadsinVODcontentgivethemgoodideasfornewproductstotry
andnearlysix-in-10(59%)saytheydon’tmindgettingadvertisingifthey
canviewfreecontent.ThissentimentisparticularlystronginNorth
America,where68%arewillingtotradetheirtimeandattentionforfree
programming.
What’sclear,however,istheneedformorerelevantadsthatspeak
directlytoconsumers.Two-thirdsofglobalrespondentssaymostadsin
VODcontentareforproductstheydon’twant(66%).
“Inacrowdedmediaenvironment,relevantadsandbrandexperiences
arecriticalforengagingconsumers,”saidClarken.“Justastechnology
hasmadeiteasierforconsumerstocontroltheamountofadvertising
theysee,ithasalsomadeiteasierforadvertiserstoreachtheright
consumersattherighttimeandintherightplace.Theadvertiserswith
thegreatestbrandandsalesimpactwillnaturallybethosethatconnect
messagesaboutproductsandserviceswiththepeoplewhowantthem.”
15Copyright © 2016 The Nielsen Company
GLOBALLY, MOST WAnT LESS AD cLUTTER AnD MORE RELEVAnT ADS
peRCentAge of vod vieweRS wHo SoMewHAt/StRongly AgRee witH StAteMent About AdS diSplAyed befoRe, duRing oR AfteR vod pRogRAMMing
LatIN aMERICaaSIa-PaCIfIC EuROPE MIDDLE EaSt/afRICa NORth aMERICa
unfAvoRAble MoRe fAvoRAble
MoSt AdS ARe foR pRoduCtS i don’t wAnt
i don’t Mind getting AdS if i CAn view fRee Content
i wiSH i Could only See AdS tHAt ARe foR pRoduCtS tHAt inteReSt Me
i don’t Mind AdS tHAt diReCtly RefleCt puRCHASeS i’ve MAde in tHe pASt
online AdS ARe diStRACting
AdS give Me good ideAS foR new pRoduCtS i wAnt to tRy
76% 59%
59%
56%62%
68% 51%
69% 53%
64%
53%
65%
51%
52%50%
66%
64% 49%
62% 60%
56%
63% 43%
68% 68%
65%
64%
66% 50%
34%
34%
Source:NielsenGlobalVideo-on-DemandSurvey,Q32015
16 Video on demand
naVigating what comes nextInthecurrentmediaenvironment,theonlyconstantischange.VOD
maybeoneofthemorerecententrantsinthefragmentationforay,
butitrepresentsacontinuationofthewildridetheindustryhasbeen
onformorethanadecade.Andthepaceofchangeisn’tlikelytoslow
anytimesoon.Winningoverviewershasneverbeenmorechallenging.
Whilechangeanduncertaintycanbedifficult,contentprovidersmust
stayagile,flexibleandaheadofwhateverchallengecomesnext.For
successfullynavigatingthenewmedialandscape,afewremindersare
worthnoting:
• Contentisking.It’sbeensaidtimeandtimeagain,butitbears
repeating:Goodcontentisgoodcontent,regardlessoftheplatform
ordeviceonwhichitisviewed.Theevolvingmedialandscape
hasnotlessenedthedemandforquality,professionallyproduced
content.Ifanything,ithasgainedimportance,asviewersare
unlikelytosettleforsomethingthatissimplyacceptablegiventhe
abundanceofchoicesavailable.Quality,notquantity,ofcontent
mustbethefocus.
• Contentdiscoveryisgainingimportance.Qualitycontentisanecessity,butit’snotenough.Programmingisdestinedtofail
ifaudiencesdon’tknowaboutitorcan’teasilyaccessit.With
ahuge—andgrowing—numberofchoicesavailable,mastering
contentdiscoverybecomesevenmorecritical.Smarterdiscovery
interfacesandcontentrecommendationalgorithmsthatpredict
whatusersmaylikeshouldbeakeyinnovationareaforcontent
providers.
• Personalizationisahugeopportunity.Consumersarewatching
contentontheirowntermsandthey’redemandingevenmore
control.Increasingly,they’repiecingtogetherpackagesthatdeliver
alltheprogrammingtheywantwithoutthesurplusofchannels
theydon’t.Savvycontentprovidersarerecognizingthistrend
andcateringtheirofferingsaccordingly.Inaddition,seamless
integrationofcontentacrossdeviceswillbecriticalasconsumers
growaccustomedtowatchingcontentanywhere,anytime,onany
screen.Andhelpingconsumerswadethroughtheabundanceof
availablecontentandselecttheprogrammingthatismostlikelyto
beofinterestwillbeparamount.
17Copyright © 2016 The Nielsen Company
• Dualadvertisingmodelsareemerging.Thepersonalizationtrendalsoholdsforadvertising.Technologicaladvanceslike
programmaticandaddressableadvertisingareunlocking
opportunitiesformarketerstoreachviewersmoreprecisely.Perhaps
oneday,the65%ofrespondentswhowishtheycouldblockads
willinsteadintentionallytuneinforthem.Despitethepotential
forprogrammaticandaddressableadvertising,thereremainsa
powerfulcaseforbroadbrandadvertising,asthetwomodelsserve
differentpurposes.Onewillnotreplacetheother.
• Engagementwilldrivesuccess.Inasociallyengaged,buzz-drivenworld,contentcangoviralinaninstant.Increasingly,passionate
fans,notjustviewers,drivesuccessfulcontent.Fifty-eightpercentof
globalrespondentssaytheyliketousesocialmediawhilewatching
VODprogramming.Andit’snotjuston-demandprogrammingthat
benefitsfromsocial-mediabuzz.It’sanevenbiggerdrawforlive
TV.Infact,aU.S.NielsenSocialstudyshowedthat,onaverage,
68%ofweeklyTwitteractivityforseriesprogramsoccursduring
liveprogramairings(threehoursbeforethroughthreehours
after).Highlysocialseriesepisodes,withmoreTwitterimpressions
(numberoftimesTweetsareseen)duringliveairings,seeastronger
boostin+7ratings(ratingsforliveplussevendays),comparedto
lesssocialepisodes.Specifically,a10%increaseinimpressions
fromliveairingscorrespondswitha1.8%increaseinthe+7
audience.So,themoreTweetsareseenfromliveepisodeairings,
thegreatertheaudiencemaybelookingtocatchuponanepisode
laterthatweek.Consequently,contentprovidersshouldlookfor
waystoengageviewersbyintegratingdigitalcontentandsocial
mediaintheirofferings.
18 Video on demand
MaRkEt INtERNEt PENEtRatION
Australia 93%
China 50%
HongKong 81%
India 30%
Indonesia 31%
Japan 91%
Malaysia 68%
NewZealand 94%
Philippines 43%
Singapore 82%
South Korea 92%
Taiwan 84%
Thailand 56%
Vietnam 50%
COuNtRIES IN thE StuDy
ASiA-pAcific
MaRkEt INtERNEt PENEtRatION
Egypt 55%
Morocco 61%
Pakistan 15%
SaudiArabia 66%
SouthAfrica 49%
UnitedArabEmirates
93%
MiDDLE EAST/AfRicA
Source:MiniwattsMarketing,InternetWorldStats,Nov.30,2015,www.internetworldstats.com
MaRkEt INtERNEt PENEtRatION
Canada 95%
UnitedStates 87%
nORTH AMERicA
EUROpE
MaRkEt INtERNEt PENEtRatION
Austria 83%
Belgium 85%
Bulgaria 57%
Croatia 75%
CzechRepublic 80%
Denmark 96%
Estonia 84%
Finland 94%
France 84%
Germany 88%
Greece 63%
Hungary 76%
Ireland 83%
Israel 75%
Italy 62%
Latvia 82%
Lithuania 82%
Netherlands 96%
Norway 96%
Poland 68%
Portugal 68%
Romania 56%
Russia 71%
Serbia 66%
Slovakia 83%
Slovenia 73%
Spain 77%
Sweden 95%
Switzerland 87%
Turkey 60%
UnitedKingdom 92%
Ukraine 43%
MaRkEt INtERNEt PENEtRatION
LATin AMERicA
Argentina 80%
Brazil 58%
Chile 72%
Colombia 59%
Mexico 49%
Peru 53%
Venezuela 62%
19Copyright © 2016 The Nielsen Company
abOut thE NIELSEN GLObaL SuRVEy TheNielsenGlobalVideo-on-DemandSurveywasconductedAug.10—Sep.4,2015andpolledmorethan30,000onlineconsumersin61countriesthroughoutAsia-Pacific,Europe,LatinAmerica,theMiddleEast/AfricaandNorthAmerica.ThesampleincludesInternetuserswhoagreedtoparticipateinthissurveyandhasquotasbasedonageandsexforeachcountry.ItisweightedtoberepresentativeofInternetconsumersbycountry.Becausethesampleisbasedonthosewhoagreedtoparticipate,noestimatesoftheoreticalsamplingerrorcanbecalculated.However,aprobabilitysampleofequivalentsizewouldhaveamarginoferrorof±0.6%atthegloballevel.ThisNielsensurveyisbasedonlyonthebehaviorofrespondentswithonlineaccess.Internetpenetrationratesvarybycountry.Nielsenusesaminimumreportingstandardof60%Internetpenetrationoranonlinepopulationof10millionforsurveyinclusion.
abOut NIELSEN NielsenHoldingsplc(NYSE:NLSN)isaglobalperformance
managementcompanythatprovidesacomprehensiveunderstanding
ofwhatconsumerswatchandbuy.Nielsen’sWatchsegmentprovides
mediaandadvertisingclientswithTotalAudiencemeasurement
servicesforalldevicesonwhichcontent—video,audioandtext
—isconsumed.TheBuysegmentoffersconsumerpackagedgoods
manufacturersandretailerstheindustry’sonlyglobalviewofretail
performancemeasurement.ByintegratinginformationfromitsWatch
andBuysegmentsandotherdatasources,Nielsenalsoprovidesits
clientswithanalyticsthathelpimproveperformance.Nielsen,anS&P
500company,hasoperationsinover100countries,coveringmorethan
90%oftheworld’spopulation.
Formoreinformation,visitwww.nielsen.com.
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20 Video on demand