Internet Media Replacing Traditional Media

Aug 22nd, 2007 | By | Category: Internet TV, Podcasting Research, Podcasting Statistics, Streaming Video, Video, Video Podcasts

A new IBM survey of consumer digital media and entertainment habits shows that audiences increasingly replacing time spent with traditional media with Internet time.

“The Internet is becoming consumers’ primary entertainment source,” said Saul Berman, IBM Media & Entertainment Strategy and Change practice leader. “The TV is increasingly taking a back seat to the cell phone and the personal computer among consumers age 18 to 34. Just as the ‘Kool Kids’ and ‘Gadgetiers'(1) have replaced traditional land-lines with mobile communications, cable and satellite TV subscriptions risk a similar fate of being replaced as the primary source of content access.”

Among consumer respondents:

  • 19 percent stated spending six hours or more per day on personal Internet usage, versus nine percent of respondents who reported the same levels of TV viewing;
  • 66 percent reported viewing between one to four hours of TV per day, versus 60 percent who reported the same levels of personal Internet usage.

To effectively respond to this shift, IBM sees advertising agencies going beyond traditional creative roles to become brokers of consumer insights; cable companies evolving to home media portals; and broadcasters and publishers racing toward new media formats. Marketers in turn are being forced to experiment and make advertising more compelling, or risk being ignored.

“Consumers are demonstrating their desire for both wired and wireless access to content: an average of 81 percent of consumers surveyed globally indicated they’ve watched or want to watch PC video, and an average of 42 percent indicated they’ve watched or want to watch mobile video,” said Bill Battino, Communications Sector managing partner, IBM Global Business Services. “Given the rising power of individuals and communities, media and entertainment industry players will have to become much better at providing permission-based advertising and related consumer-driven ratings services.”

Television Viewing Shifts

In the largest digital video recorder market, 24 percent of U.S. respondents reported owning a DVR in their home and watching at least 50 percent of television programming on replay. Surprisingly, 33 percent in the U.S. reported watching more television content than before the DVR. More than twice as many U.K. consumers surveyed use video on demand services than own a DVR, and less than a third of U.K. consumers have changed their overall TV consumption as a result of DVR ownership. In Australia, despite owning a DVR, most respondents prefer live television or replay less than 25 percent of their programming.

Online Content Trends

Consumers are increasingly contributing to online video or social networking sites: nine percent of German and seven percent of U.S. respondents claim to have contributed to a user-generated content site; 26 percent of U.S. respondents reported contributing to a social networking site. While the numbers were slightly less from other countries like the UK (20 percent) and Japan (9 percent), they are also significant. Australia topped all countries surveyed with 36 percent contributing to social networking sites and nine percent contributing to video content sites. Of those who contributed content, an average of 58 percent worldwide did so for recognition and community, not monetary gain.

Mobile Content Trends

In the UK, nearly a third of users who watch mobile TV reduced their standard TV set viewing patterns as a result of new mobile device services. 18 percent said they reduced “normal” television by a little and another eight percent reduced “normal” television by a lot; four percent substituted television on their regular TV with their new device altogether. For respondents in Germany who had watched mobile video, 23 percent prefer to view user generated content, and 21 percent prefer video trailers or promotions.

Source: IBM, via New Tee Vee

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  1. […] This is happening already. IBM says that Internet media is replacing traditional media. Research says that advertisers will make Internet media the largest ad market within the next five years. There are also moves underway to standardize podcast advertising, which could stimulate podcast advertising further. […]

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