Wednesday 11 November 2009

The 'TV Is Dead' Argument is Dead

Data from Nielsen on US TV viewing puts the nail in the coffin of the TV is dying argument. Viewing in the US is up 20% in the last ten years and now stands at an all time high. Given the growth of web usage, games playing and the perceived decline in quality, how many people in 1999 would have predicted that?

Americans now spend a staggering four hours and 49 minutes a day watching the box. And this pattern is being repeated in other markets. Looking at the change in individuals viewing over the last 5 years France is up 6%, Spain up 11%, India up 7%, Brazil up 5%.

So what are the drivers? It could be the growth in choice, although households with lots of channels don’t necessarily watch more than those with a few. And as Barry Schwartz pointed out just because you can buy twenty flavours of jam doesn’t mean you eat more jam. More likely it’s the introduction of new technology such as PVRs. Most of us thought that giving viewers the power to schedule their own TV would mean that they were more selective in their viewing and therefore the amount of time they spent watching was more likely to decline than increase. We were wrong. People are now squeezing more value out of their TV’s, both in terms of content and the quality of the experience. And it will only continue with the growth of HD and then 3D.

And these viewing numbers don’t even take into account the use of new platforms such as mobile and online. Compared to viewing on a TV screen these are still tiny, but they are only going to grow as smartphone penetration increases, broadband speeds get faster and wireless technology takes hold.

So, the world loves TV more than ever.

And yet the channels are in such a pickle commercially. It’s clear now that they should have been investing all along in what people love about TV (the programmes, the talent, the shared experiences), rather than finding new and exotic ways to deliver them to people.

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