Nielsen reports (pdf) that video consumption across multiple platforms is now a global phenomenon. Nielsen recently completed a survey of more than 27,000 online consumers in 55 countries, asking simple questions about how they watch video.
Western markets still fall behind Asia Pacific, Latin America and the Middle East when it comes to online video. Today, Europe under-indexes for online video penetration by 23 points, while North America under-indexes by 11. Consumers thus far are adding screens to their media mix, not replacing them, says Nielsen.
Key Findings:
- Online Video: approximately 70% of global online consumers watch online video; but North Americans and Europeans lag in adoption. More than half of global online consumers watch online video in the workplace.
- Mobile Video: is already used by 11% of global online consumers: penetration is highest in Asia-Pacific and among consumers in their late 20s.
- Tablet PCs: are expanding the definition of mobile video. Globally, 11% of online consumers already own or plan to purchase a tablet PC (such as an iPad) in the next year.
- Television: is a universally important platform for video consumption, with connected consumers in many markets spending 4+ hours per day watching television.
- HDTV (High-Definition TV): is improving the TV viewing experience for as many as 30% of global online consumers. Adoption is highest among older consumers and in North America, where HD content has proliferated.
- 3DTV (Three-Dimensional TV): will have a small but important audience: 12% of global online consumers own or have definite intent to purchase a 3DTV in the next year.
- “Over the Top” TV: televisions with Internet connections are gaining interest. About one in five (22%) global online consumers owns or has definite interest in buying a television with Internet connection in the next year.
Americans, on average, watched five hours and four minutes of TV each day in March, behind only Serbia and Macedonia, Nielsen said. The average Chinese resident watched two hours, 36 minutes of TV each day, the study said. Thailand, at 2:11, had the fewest hours of TV watching. People in China watch half as much television each day as Americans, but they are more likely to catch video on computer or mobile phones.
Nielsen also published their findings on American activities online, breaking the total time spent into categories such as instant messaging, auctions, and search. Gaming, at 407 million hours, has overtaken e-mailing’s 329 millions hours as the number two time sink on the Internet, though both pale in comparison to social networks and their sizable lead at 906 million hours. Those three total up to be 41.2% of the total time spent on the Internet.
You’d think all the video watching would make mobile tv platforms like Qualcomm’s MediaFLO popular. Not so. The $15/month service has been a flop.
Only two of the major U.S. wireless carriers — AT&T and Verizon — ever signed on. Qualcomm is reportedly in talks to sell off MediaFLO.
The number of over the air mobile tv subscribers to DVB-H, DMB, and MediaFlo is not expected to be higher than 10 million globally, while at the same time over 180 million people will subscribe to 3G/4G/Wi-Fi-enabled mobile TV services by 2013, according to Juniper Media. MobiTV, which works over cellular data networks was not included in Juniper’s count.
MediaFLO TV is transmitted over the air on UHF TV channel 55 (716-722 MHz). Broadcasters are now beginning to offer their own version, called ATSC-M/H which will supposedly be free-to-air from individual TV stations.
It seemed like a good idea. The world’s 5 billion mobile subscribers are now moving to smartphones and high speed data. Video is projected to dominate wireless networks. A “4G” system (with 1-10 Mbps speeds), is designed to help meet the multi-media demand. Multi-casting via broadcast towers might off load some of that congestion.
Motorola and Verizon are apparently developing a digital tablet device that will allow users to watch television on it. The Android device will have a 10-inch screen and could launch as early as this autumn in the US. ABI forecasts 11 million tablets by the end of 2010.
Mobile display ad spending in the U.S. will nearly quadruple in the next 5 years to exceed $1.2 billion in 2015, according to ABI Research. There will be a battle for ad dollars on smartphones and tablet platforms, with the largest players expected to be Apple and Google. Collecting the crumbs from Google’s and Apple’s tablets are several independent ad networks, including Millennial Media, Jumptap and Greystripe.
ABI found that 28 percent of the mobile subscribers accessed the mobile Internet every day. People are accessing information about news and sports, and are consuming a lot of YouTube video from their smartphones.
But Tablet TV could be DOA if cellular companies slap $60+/monthly charges on it.
This too, shall pass. White spaces may prove to be the best alternative to expensive cellular fees.
