Free Magazine Subscription    Printer-friendly version    Email to a Friend

New media – the challenges and opportunities

As viewing platforms continue to proliferate, and audiences become increasingly fragmented, Craig Harvey, Director of Media Research for Synovate, Asia Pacific looks at the new challenges and opportunities faced by media owners

1 November 2007

THERE is no doubt that the digital revolution is transforming both society and the media industry. Technology has encroached upon all aspects of our daily lives. People watching television now have more choice not just on what they watch, but how they watch it.
The proliferation of content and viewing platforms has led to the rise of the ‘my-time’ generation; the consumer who wants media in their own time and on their own terms. Advances in technology have given the consumer more control of the content they watch, including the advertisements. This is the age of perpetual partial attention, and the concern to any media owner is how can their media brand cut through and create time with the consumer, even for just a few seconds. There are some positives. Media consumption, as a whole, is actually increasing thanks to this proliferation. According to Synovate’s PAX media survey that measures media habits and product consumption of Asia’s elites, those who consume any TV, print or internet is now 99.1% in 2007. This is a modest increase from 98.9% in 2004. Those watching TV remains constant at 94.6%, while those reading print increased to 73.1% in 2007 from 69.2% in 2004. The continued development of the internet also ensured a rise in users (excluding email); from 59.6% in 2004 to 66.8% this year.
Findings from the PAX survey revealed new trends on how consumers watch television. It found that 39.4% of Asia’s elites have watched live content or pre-recorded content other than on their television set in the last four weeks. The PC is the most popular viewing platform with just under a quarter (24.1%) of respondents using it for watching TV programs. 63% of wealthy Bangkok residents enjoy watching content on the move, followed by Manila and Taipei.
Viewing content on mobile phones is still in its infancy with a mere 6.8% of respondents having watched content across the region. Affluent Filipinos top this category with 16.9% using their mobile phone as a viewing platform. As the next generation of mobile devices enters the market, many predict that the mobile TV sector will grow the fastest. Thanks to innovative companies such as Apple, the devices we know today in Asia will be obsolete in years to come. The iPhone has changed the way we look at the mobile, and will change the way the industry views it as a platform.
So whilst TV viewership may remain consistent, the increasing number of people choosing what and how they watch it is creating fresh challenges for the media owners.
The key considerations for any media owner is how can they create space on these increasingly used platforms and what is the best way to monetize them?
The launch of BBC’s iplayer is a prime example of how media companies are trying to break out of the mould and take the lead in the PC space. The ability to download BBC programs aired the previous week for viewing on personal PC’s, demonstrates how a broadcaster can utilize other viewing platforms to extend its reach. This is not all. The BBC is already looking at expanding its consumer base by connecting the BBC iPlayer with other portable media devices such as the Apple iPod.
However, innovation often brings with it limitations and a dose of reality. New viewing platforms are no exception. In order to combat global piracy, BBC iPlayer will not download content unless the user has a UK IP address. They also use digital rights management software to prevent duplication. Saying that, wasn’t the iPhone meant to be un-hackable?
To avoid charging the consumer for content, the BBC is providing content that self-destructs after a certain time once it has been downloaded. This could prove to be the most effective strategy. Ultimately the consumer wants everything for nothing.
We often forget that we are also consumers, not just industry players. How often is our brand choice influenced by something on special offer? The same applies for media content. There needs be a low price point entry for the consumer to engage, or free content that might be ad-supported. As both content and viewing platforms increase, so does the need for advertisers to help consumers cut through the clutter.
Recent research from Synovate, presented at the CASBAA Convention 2007, highlights that there are new dynamics at play with the proliferation of platforms. Whilst advertising on television has the highest credibility, it doesn’t always have the highest viewership. On the flip side, the mobile phone has the highest engagement, yet has limited credibility for advertising content.
When it comes to monetizing the mobile, the consumer has to opt-in more than any other platform; specific formats that cut-through are free downloads, preferably with branded content as opposed to ad supported.
For the internet, the consumer is still cautious given the number of misleading links by hackers. Let’s be honest, we’ve all been caught in a porn-loop before!
In summary, the consumer views each platform as each having its own uniqueness; not just a different sized screen for the same content. Therefore media owners need to understand how their media brand can extend across platforms by catering to the uniqueness of each platform, but still delivering ROI for the shareholders.


Add A Comment

  Post A Comment

There are no comments for the article yet.

Rate This Article

Current Rating:
No rating yet

Excellent
Very Good
Good
Quite Good
Poor
  Rate This Article

Related Stories

Mobile update - 1/11/2008

Qualcomm Inc.’s consumer survey in Taiwan Participants were given the opportunity to test ‘hands-on’ the latest Mobile TV technology. The survey of 200 existing cell phone users, yielded clear eviden [...]

Collision course - 1/11/2008

“when I was asked to come to Singapore, and told I had to talk about the future of video games, I said ‘I’ll be talking to the future of video games’, and here I am, “ started Professor Jenkins, addre [...]

The battle for the sexes - 1/11/2008

the region’s broadcasters continue to focus on building a diverse portfolio to target wider audiences. For the viewer, more channels means more choice, and no longer does the television schedule have [...]