Just as the Internet has affected all other traditional media, it is impacting television viewership, too. An increasing number of Americans have had it with television. They are tired of all the channels; they are sick of paying over $100 per month for cable; and they don’t want to mess with an antenna. They are watching shows and movies on the Internet, sometimes by using their cell phones.
Since these people do not meet Nielsen’s criteria for a traditional television household, they have been dubbed Zero TV homes by Nielsen. Currently, Nielsen tracks five million of these households in the United States, up from two million in 2007. While that does not seem to be a huge number of the over 114 million total households, it is 4.35% compared with 1.83% in 2007.
That percentage change indicates a trend.
The trend has broadcasters concerned. They are also worried that the number of people signing up for traditional TV service is at a standstill. Together, these two statistics indicate a decreasing demand for traditional television. One of broadcasters’ ways to address the problem is to make television easily available to new electronics such as tablets, cell phones, and laptops. Currently over 130 stations broadcast live TV signals to mobile devices. However, most cell phones need to add a dongle in order to receive the signals. Dongles are just beginning to be sold.
This is a problem for broadcasters because ad rates are set according to the number of viewers. At the very least, viewers on electronic devices are currently not measurable. Broadcasters cannot count them toward viewership and thus toward ad rates. In addition, shows that are watched through online video providers do not bring in the same level of revenue as those which are viewed from cable or antenna reception.
Here is another unknown for Nielsen and broadcasters. How many Americans watch fewer shows on TV due to Internet usage? Internet usage directly depletes television viewership. How much has viewership decreased due to the Internet?
While broadcasters are struggling to fix the measurability problem, they also realize that the Zero TV homes trend could indicate an even more dire situation. Americans’ habits may be changing. They like the opportunity to control their viewing through a DVR. They can schedule watching their favorite programs at a time convenient for them. As they watch, they can fast forward through the commercials and save time. Some people have started to wait for shows to be available on DVD. In one sitting, they get together with friends and watch several episodes of a show that piques their interest.
This shift in viewership seems much more difficult to tackle than the measurability issue. It could have major implications for how televisions shows are produced and distributed. Broadcasters are wise to assess the depth of this trend and how long it will last. Once they have an answer, they must take the next step and decide how and when they respond to the trend.
How does this trend impact your business?
Be aware that whether you advertise on television or not, the lesson here is that the Internet is having an impact on everything, including what we may consider an institution such as television. Be alert to how the Internet is impacting your business in ways that you didn’t anticipate. Be ready to respond to that impact.
This week's marketing trivia challenge is How has your television viewership changed? E-mail me your answer.
Since these people do not meet Nielsen’s criteria for a traditional television household, they have been dubbed Zero TV homes by Nielsen. Currently, Nielsen tracks five million of these households in the United States, up from two million in 2007. While that does not seem to be a huge number of the over 114 million total households, it is 4.35% compared with 1.83% in 2007.
That percentage change indicates a trend.
The trend has broadcasters concerned. They are also worried that the number of people signing up for traditional TV service is at a standstill. Together, these two statistics indicate a decreasing demand for traditional television. One of broadcasters’ ways to address the problem is to make television easily available to new electronics such as tablets, cell phones, and laptops. Currently over 130 stations broadcast live TV signals to mobile devices. However, most cell phones need to add a dongle in order to receive the signals. Dongles are just beginning to be sold.
This is a problem for broadcasters because ad rates are set according to the number of viewers. At the very least, viewers on electronic devices are currently not measurable. Broadcasters cannot count them toward viewership and thus toward ad rates. In addition, shows that are watched through online video providers do not bring in the same level of revenue as those which are viewed from cable or antenna reception.
Here is another unknown for Nielsen and broadcasters. How many Americans watch fewer shows on TV due to Internet usage? Internet usage directly depletes television viewership. How much has viewership decreased due to the Internet?
While broadcasters are struggling to fix the measurability problem, they also realize that the Zero TV homes trend could indicate an even more dire situation. Americans’ habits may be changing. They like the opportunity to control their viewing through a DVR. They can schedule watching their favorite programs at a time convenient for them. As they watch, they can fast forward through the commercials and save time. Some people have started to wait for shows to be available on DVD. In one sitting, they get together with friends and watch several episodes of a show that piques their interest.
This shift in viewership seems much more difficult to tackle than the measurability issue. It could have major implications for how televisions shows are produced and distributed. Broadcasters are wise to assess the depth of this trend and how long it will last. Once they have an answer, they must take the next step and decide how and when they respond to the trend.
How does this trend impact your business?
Be aware that whether you advertise on television or not, the lesson here is that the Internet is having an impact on everything, including what we may consider an institution such as television. Be alert to how the Internet is impacting your business in ways that you didn’t anticipate. Be ready to respond to that impact.
This week's marketing trivia challenge is How has your television viewership changed? E-mail me your answer.
No comments:
Post a Comment