Internet is the New Alternative for Television in Entertainment

A survey conducted by IBM on the habits of consumers in relation to media and digital entertainment, reveals that personal time spent on the Internet competes with the time spent watching television. The survey conducted by IBM Business Value (IBV) shows that of the group of respondents, a majority percentage uses more “intensely” the Internet than television: 19 percent reported spending six hours or more a day using the Internet, while a 9 percent One hundred of the respondents reported the same investment of time watching television.

The moderate standards of Internet use compared to the use of television were similar: 66 percent said they saw between one and four hours of television per day, against the 60 percent who reported the same levels of personal Internet use. Consumers are looking for reliable content, recognition and identity when it comes to mobile entertainment and the Internet.

Additionally, they are trying to have more control of attention, content and creativity through their PCs, as well as some mobile tools. To effectively respond to this trend, IBM notes that advertising agencies are moving beyond traditional creativity to become agents of consumer desires and visions.

Cable TV companies are evolving to become home media portals, and radio and television broadcasting stations, as well as publishing companies, are competing for new formats. Entrepreneurs, in turn, are being forced to experiment and make advertising more compelling to avoid the risk of being ignored.

“Consumers are demonstrating their desire for access to both wired and wireless content: an average of 83 percent of consumers surveyed worldwide indicated that they have seen or want to watch video on the PC, and an average of 43 percent indicated that they have seen or want to watch video on mobile, “said Bill Battino, Communications Sector Leader at IBM Global Business Services.

“Given the growing power of individuals and communities, entrepreneurs in the media and entertainment industry will have to be much better at providing permission-based advertising and related classification services conducted by consumers.

” The sustained growth of consumer acquisition of music, video and other digital entertainment services although the number of sellers is still small compared to that of traditional media shows that in homes there is no longer a philosophy of “One size fits all”, and that content providers and sellers must continue to adapt. 23 percent of respondents reported that they are using a portable music service (eg, iTunes); 7 percent said they had a subscription to video content for their mobile phones; and 11 percent claimed to have a PC-based content subscription.

Saul Berman, IBM’s Media and Entertainment Strategy and Change practice leader (IBM Media & Entertainment Strategy and Change) said that “the Internet is becoming the main source of consumer entertainment. Television is lagging more and more in relation to cell phones and personal computers among consumers aged between 18 and 34 years.

Also, the ‘Kool Kids’ and the ‘Gadgetiers’ have replaced the traditional telephone lines by mobile communications. Cable and satellite television subscriptions are at risk of suffering a similar future: being replaced as the main source of access to content. ” The IBM Institute for Business Value survey, which included more than 2,400 households in the United States, the United Kingdom, Germany, Japan and Australia, studied the worldwide adoption of new multimedia devices; the consumption of media and entertainment in PCs, mobile phones, portable players among others.

Changes in Television Habits In the digital video market 24 percent of respondents in the United States reported having a DVR (Digital Video Recorder) at home. He also revealed that at least 50 percent of the programming he consumed came from recorded television. Surprisingly, 33 percent reported seeing more television content before having a DVR. Of the consumers surveyed in the UK, those who use video on demand services are more than twice as many as have a DVR. Less than a third of consumers in the United Kingdom have changed their television habits after acquiring a DVR.

In Australia, despite the existence of DVR in homes, Most respondents prefer to enjoy live television, and record less than 25 percent of the programming. Online Content Trends Consumers are increasingly joining online video sites or social networking sites: 9 percent of respondents in Germany and 7 percent in the United States say they have joined Sites whose content has been generated by users; 26 percent of respondents in the US reported contributing with a social relations site.

And although the numbers are slightly lower than those of other countries such as the United Kingdom (20%) and Japan (9%), they are also relevant. Australia was above all the countries surveyed, It has 36 percent of people who have linked to social networking sites and 9 percent of users who have joined sites that offer video content.

An average of 58 percent worldwide, of those who have contributed to these sites at the content level, reveals that they did so for reasons of recognition and without obtaining monetary gains. Mobile Content Trends In the United Kingdom, almost one-third of the users who watch mobile television reduced their television viewing patterns as a result of the new services offered by the mobile device. 18 percent said they reduced “normal” television a bit and another 8 percent reduced “normal” television to a large extent; 4 percent replaced their traditional television with the new device.

For respondents in Germany who have seen mobile videos, 23 percent prefer to view content generated by users, and 21 percent prefer to watch promotions or trailers. The survey was conducted from mid-April to mid-June 2007 by the IBM Institute for Business Value.

The sample consisted of 54 percent of the female population and 46 percent of the male population 44 percent of the respondents were between the ages of 18 and 34, 29 percent between the ages of 35 and 44, and 27 percent of those surveyed aged between 45 and over. The questionnaire covered 40 questions and generated 885 respondents in the US, 559 in the United Kingdom, 338 in Germany, 263 in Australia and 378 in Japan.

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