Live TV loses attention of young adults

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MorpaceThe Morpace Omnibus Report of August shows that nearly 3/5 of US consumers watch at least some video on a device other than a television.

The two major findings of the report are:

* American consumers increasingly are viewing digital media content on devices other than a television.
* In addition they are accessing programming sources other than live television more than ever before.

With regard to the first finding, the sources other than the television are:
Digital media device usage
This means that content providers need to find alternative ways to offer their content to their consumers, providers who can thoroughly understand shifting needs and create relevant ways for their users to consume the content, will have a better chance in this fast-changing market.

Morpace mentions at the end of the report:

Amidst all these changes and technological advancements with digital media, we still haven’t seen what devices and applications that deliver this content will gain widespread acceptance with consumers.  There is no “killer app” taking the industry by storm. More importantly, the business model to make television and movie content available online is still evolving.

The abovementioned goes hand in hand with the following remark made at the beginning of the Morpace report:

Both technological innovation and the increasing availability of online content are driving consumers toward alternative media consumption habits.

The push from the supply side is one thing (technological innovation), but if consumers are not clear yet on the new consumption habits (demand), real value innovation cannot occur (as effectively as it could be). A gap between expectation and experience is a result of this. Technology innovation and value innovation do often pose a chicken-egg dilemma.

Regarding the multitude of programming sources, the survey concluded:
Programming Sources Demographics
Youngsters are more likely to use other sources than Live TV, 16% versus 7% and 4% in the other age groups. Another image that shows the complexity (from a marketing/concepting point of view):

Media Device Usage by Age

The 35-54 and 55+ groups are using less the desktop and laptop as a device to consume content. In terms of marketing strategies, it can be a challenge to execute an undifferentiated strategy (no focus segment) in order to penetrate the population. However, multitasking during TV occurs more within the younger age groups, though it doesn't have to mean that -for instance- two-screen experiences are effective on the complete target market.

What do you think the consequences for marketing when having read the report?


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