What our TV viewing habits mean for media companies
Posted
Jul 06 2009, 02:59 PM
by
Tobin Smith
Rating:
Back in the '70s and '80s, baby boomers were at the forefront of a new wave of consumer demand. They were also the early adopters of new media technologies. Their TV viewing habits, purchasing habits, likes and dislikes were tracked intensely by the corporate world to help them determine which products, services and technologies were wanted most.
But fast forward a few decades to the 21st century -- are baby boomers still at the forefront of today's media technology?
Given the radical changes in media, particularly over the last decade, including the ubiquitous use of the Internet, social networking services and now even video content delivery over the Web, you wouldn't think baby boomers would be leading the charge forward.
Well, think again. A recent ChangeWave Alliance survey points to a powerful shift occurring among baby boomers from traditional TV to new types of online entertainment.
But what, if anything, are media companies doing to keep up with changing demand? As it turns out, they're doing plenty. And it could mean a boom for the biggest media firms out there.
According to a recent ChangeWave Alliance survey of baby boomers (business professionals between the ages of 45 and 63), we do indeed find this demographic adopting -- even eagerly embracing -- new media technologies usually associated with younger generations.
The survey revealed a powerful shift occurring among boomers away from traditional TV viewing and towards new types of online services and entertainment. In the first major finding, boomers now spend more free time online (an average of 12.9 hours per week) than they do watching traditional TV programming (an average of 11.8 hours per week).
In another telling finding, by a five-to-one margin boomers reported they are watching less traditional television than they did a year ago. Among this group, 62% say it's because they're not as interested in what's on TV these days. Another 26% say they're spending more time on the Internet. LinkedIn and Facebook rank among the most popular social networking sites that boomer professionals are using. See detailed results here.
Traditional TV vs. Video-Over-the-Internet
In a finding that suggests boomers still are at the forefront of new media technology adoption, video-over-the-Internet now clearly represents a significant threat to traditional TV viewing. Better than two-thirds of boomers (69%) say they've watched video content on their computer over the past 90 days.
Even more ominous for traditional TV providers was the 48% of respondents who say they'd be willing to pay a monthly fee for a video-over-the-Internet subscription if it provided the same programming currently available on their TV service.
- So, where are boomers turning for their online video content? Find out here.
Media Companies Banking on Boomers
To be certain, the shift among boomers towards Video-over-the-Internet is a long-term trend that bodes poorly for traditional TV service providers. But what, if anything, are media companies doing to keep up with changing boomer demand?
Well, as it turns out, they're doing plenty.
According to a report in the June 25, 2009, edition of the Wall Street Journal, several major cable networks and subscription-TV providers are planning to let only paying subscribers watch cable shows on the Web.
Comcast Corp (CMCSA), Time Warner's (TWX) cable division, and DirecTV Group (DTV) all plan to rollout trials of a subscriber-only online service this summer. Comcast said its paid-subscription test will cover 5,000 homes and feature programming from Time Warner's TNT and TBS networks.
The A&E Network and the History Channel, owned by a venture of Walt Disney Co. (DIS), Hearst Inc. and General Electric's (GE) NBC Universal, as well as networks owned by Scripps Networks Interactive (SNI) and Cablevision Systems Corp.'s (CVC) Rainbow Media also plan to participate in Comcast's test, according to the Wall Street Journal report. This test run of a paid TV content model is all part of the television industry's need to preserve revenues and potentially expand the existing cable-TV business's subscription model to the new digital frontier.
As we've seen in the ChangeWave survey, nearly half of respondents say they'd be willing to pay a monthly fee for a video-over-the-Internet subscription, if that subscription provided the same programming currently available on their TV service.
It seems to me that the genie is out of the bottle in terms of free video content on the Web. There is already a ton of free TV content online from traditional broadcast networks that still rely on the old ad revenue model. Plus, the survey showed us that YouTube, Hulu.com and iTunes all are content providers boomers have no qualms about using.
However, if boomers make good on their willingness to start paying for video content delivered via the Web, it could mean a boom for the biggest media firms out there.
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