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Transcription

1 Free TV Today

2 Contents Penetration of Technology Television is ubiquitous Slide 4 Australians love their TV Slide 5 Time Spent with Media Time spent watching TV unchanged Slide 6 The TV set dominates our screentime Slide 7 TV is youth s primary screen Slide 8 TV is Australia s #1 media Slide 9 Reach Free TV s reach is unrivalled Slides Share of Viewing & Audience Trends Free TV garners the lion s share of viewing Slide 13 Free TV dominates key demos Slide 14 Free TV s average audiences strong Slides Pay TV Pay TV homes prefer free-to-air TV Slide 17 Pay TV subs are cord-cutting Slide 18 Multi-Channel Performance Free TV multi-channels dominate Slides Free TV multis reach more people Slides Continued over

3 Contents Impact of PVR Viewing Majority of viewing is Live Slide 23 PVR viewing drives incremental audiences Slide 24 Top Programs Australian shows top the list Slide 25 Regular shows attract millions Slide 26 Programs on pay TV attract small audiences Slide 27 Content Investment TV is #1 for entertainment Slide 28 TV s strength driven by content Slide 29 TV s Impact on Behaviour TV is more social than ever Slide 30 TV gets people talking Slide 31 TV drives a direct response Slide 32 TV is the ultimate influencer Slide 33 Share of Advertising Revenue TV garners the lion s share of spend Slide 34 About the data Slide 35

4 Television is ubiquitous The average Australian household has myriad devices on which to view and interact with content. The television set dominates and is in every household - around two-thirds of homes have two or more TV sets. Australian Household Penetration of Technology 99%+ 68% 80% 53% 27.6% 23% 40% 43% Free TV PVR Pay TV Smart TV Smart Phone Tablet Games Consoles Internet Sources: PVR, smart TV, smart phone, tablet and internet national penetration averages sourced Australian Multi-Screen Report Q4 2013; pay TV is the OzTAM national homes universe estimate for Q2 2014; other figures sourced Free TV Australia.

5 Australians love their TV Australians have an insatiable appetite for television and continue to invest in the latest television technologies. Last year alone, digital TV sales topped 2.1 million. More than 13.2 million digital TV sets have been sold in Australia over the last 5 years. Source: Gfk digital panel sales , data compiled by Freeview Australia.

6 Time spent with TV unchanged Slide 6 Despite the diverse range of entertainment and information options and devices on which to view content, we continue to spend over 3 hours a day watching TV on a TV set. Viewing of content on other devices is incremental to the time spent watching TV. Time Spent Watching TV Per Day Metro and Regional Hrs:Mins 3:03 3:08 3:09 3:06 3:01 3:09 3:16 3:23 3:21 3: Metro Regional Source: OzTAM and RegionalTAM, 5 cap cities, 4 aggregated markets, 01 January 31 December 2009 to 2013, consolidated data from 2010, all people, 2am to 2am, based on total television.

7 The TV set dominates screentime Every day, Australians watch over 3 hours of broadcast TV on a TV set and around 20 mins watching online video content (including TV shows, YouTube, and films) across other digital devices. Time Spent Watching Content Across Screens Per Day Source: Australian Multi-Screen Report Q

8 TV is youth s primary screen While younger audiences are consuming content across a range of different devices both in and outside of the home, traditional TV viewing still dominates their total screen time. Screen Time - A Month in the Life of Teens - Q Mobile phone 13% Tablet 3% Internet 10% Watching TV 74% Source: Australian Multi-Screen Report Q Mobile phone users are based on Teens aged 16+, TV in the home versus watching video on the internet, mobile phone or tablet.

9 TV is Australia s #1 media Australians spend more than a third of their daily media time watching television, more than any other media. Australians Use and Frequency of Media 94.2% 84.8% 73.8% 91.4% 57.6% 28.8% Free TV Radio Papers Mags Internet Pay TV Source: Roy Morgan single source, January - June 2013, Australians aged 14+, n=25,341.

10 Free TV s reach is unrivalled No other media compares to the reach of commercial free-to-air television. More than 13.5 million Australians watch Free TV (on a TV set) every day. Source: OzTAM and RegionalTAM, 5 cap cities, 5 aggregated markets (ie includes Tasmania), 01 January 31 December 2013, all people, all day, metro and regional daily reach figures are combined to form a national estimate, excludes spill, total commercial free-to-air only (Free TV), based on consolidated data.

11 Free TV reaches more people In a fragmenting media landscape, reach is more important than ever. Commercial freeto-air television reaches more people, and faster, than any other media. Commercial Free-to-Air TV Average Reach Metro Markets Source: OzTAM, 5 cap cities, average reach by day, by week, by month, 1 January to 31 December 2013, all people, commercial free-to-air television only ie. Seven, Nine and Ten channels.

12 Free TV reaches more people In a fragmenting media landscape, reach is more important than ever. Commercial freeto-air television reaches more regional-based Australians than any other media. Commercial Free-to-Air TV Average Reach Regional Markets Source: RegionalTAM, 5 aggregated markets, average reach by day, by week, by month, 1 January to 31 December 2013, all people, commercial free-to-air television networks only.

13 Free TV garners the lion s share Commercial free-to-air television garners the largest share of television viewing both across the day and during the evenings when the vast majority of viewing occurs. Share of Evening Television Viewing Metro Regional Pay TV 17.1% Pay TV 16.2% SBS 4.5% SBS 4.2% ABC 14.6% Free TV 63.8% ABC 14.8% Free TV 64.8% Source: OzTAM and RegionalTAM, 5 cap cities, 4 aggregated markets, consolidated data for 01 January 31 December 2013, all people, 6pm midnight, regional shares exclude spill.

14 Free TV dominates key demos Commercial free-to-air television garners the largest share of viewing, particularly in prime-time, with key media buying demographics. Share of Nightly Television Viewing 6pm to Midnight Metro Free TV ABC SBS Pay TV Ppl % 10.0% 4.0% 17.9% GBs 63.8% 16.4% 5.0% 14.7% GBs with Kids 70.6% 9.8% 3.3% 16.3% Regional Free TV ABC SBS Pay TV Ppl % 10.2% 3.8% 17.5% GBs 65.3% 15.9% 4.6% 14.2% GBs with Kids 69.7% 10.0% 3.0% 17.3% Source: OzTAM and RegionalTAM, 5 cap cities, 4 aggregated markets, consolidated data for 01 January 31 December 2013, 6pm midnight, regional excludes spill.

15 Average audiences are strong Free TV s average audiences remain strong both across the day and during the evenings. Average Audiences YOY Metro Markets All Day 6pm to Midnight Free TV Pay TV Source: OzTAM; 5 cap cities, 1 January 31 December 2009 to 2013, total people, all day (2am 2am) and evenings (6pm midnight), based on consolidated data from 2010.

16 Average audiences are strong Free TV s average audiences remain strong both across the day and during the evenings. Average Audiences YOY Regional Markets All Day 6pm to Midnight Free TV Pay TV Source: RegionalTAM, 4 aggregated markets, 1 January 31 December 2009 t to 2013, total people, all day (2am 2am) and evening (6pm midnight), based on consolidated data from 2010.

17 Pay homes prefer free-to-air TV People with pay TV actually watch more free-to-air television than pay TV during primetime. This attests to the quality offering delivered by free-to-air broadcasters in Australia. Share of Nightly Viewing in Pay TV homes Pay TV 47% FTA TV 53% Source: OzTAM, national pay TV database, 01 January 31 December 2013, 6pm midnight, total people, based on consolidated data.

18 Pay TV lowest level since 08 FOXTEL is struggling to retain and grow subscribers in the new media environment. A similar trend is being seen in the U.S. Households with Pay TV National Quarterly Qtr 1 '12 Qtr 2 '12 Qtr 3 '12 Qtr 4 '12 Qtr 1 '13 Qtr 2 '13 Qtr 3 '13 Qtr 4 '13 Qtr 1 '14 Qtr 2 ' % 29.7% 29.2% 29.2% 28.8% 28.8% 28.8% 28.6% 28.1% 27.6% Source: OzTAM national homes universe estimate by quarter Q to Q2 2014; YOY market declines based on 2014 v 2013 universe estimates sourced OzTAM, RegionalTAM and Arianna TV ratings software.

19 Free TV multi-channels dominate Free TV s multi-channels collectively garner a 16.8 per cent share of evening viewing in metro areas. Pay TV s best performing channel secures less than a one per cent share of TV viewing. Share of Nightly Viewing Multi-Channels Metro Markets 3.4% 3.3% 2.9% 2.8% 2.4% 2.0% 0.9% 0.7% 0.7% 0.7% 0.6% 0.5% GO! 7TWO 7MATE GEM ELEVEN ONE Fox Footy Fox Sports 1 Fox8 LifeStyle Fox Sports 2 Source: OzTAM; 5 cap cities, 01 January 31 December 2013, 6pm midnight, commercial free-to-air (Free TV) multi-channels and pay TV s top rating channels, based on consolidated data. TV1

20 Free TV multi-channels dominate Free TV s multi-channels collectively garner a fifth of all evening viewing in regional areas. Pay TV s best performing channel secures less than a one per cent share of TV viewing. Share of Nightly Viewing Multi-Channels Regional Markets 4.3% 3.9% 3.8% 3.6% 2.1% 2.1% 0.9% 0.6% 0.6% 0.6% 0.5% 0.5% 7TWO GO! GEM 7MATE ELEVEN ONE Fox Sports 1 TV1 Fox8 Fox Sports 2 Source: RegionalTAM, 4 aggregated regional markets, 01 January 31 December 2013, 6pm midnight, total people, commercial free-to-air (Free TV) multi-channels and pay TV s top rating channels, based on consolidated data. Fox Footy LifeStyle

21 Free TV multis reach more people The cumulative weekly reach of Free TV s 6 digital multi-channels is more than twice that of pay TV s 100+ channels. Cumulative Weekly Reach Free TV Multis & Pay TV - Metro 70% Free TV Multi-Channels 60% 50% 40% 30% Pay TV Channels 20% 10% 0% Source: OzTAM; 5 cap cities, weeks , 2am-2am, commercial free-to-air (Free TV) digital multi-channels and pay TV s channels, weekly cumulative reach based on 1 minute, based on Consolidated data.

22 Free TV multis reach more people The cumulative weekly reach of Free TV s 6 digital multi-channels is more than twice that of pay TV s 100+ channels. Cumulative Weekly Reach Free TV Multis & Pay TV - Regional 70% Free TV Multi-Channels 60% 50% 40% 30% 20% Pay TV Channels 10% 0% Source: RegionalTAM, 4 aggregated markets, weeks , 2am-2am, commercial free-to-air (Free TV) digital multi-channels and pay TV s channels, weekly cumulative reach based on 1 minute, based on Consolidated data.

23 Majority of viewing is Live While personal video recorders are now in half of all Australian households, time-shift viewing accounts for a very small proportion of our television viewing. The vast majority of viewing over 90 percent is of the Live broadcast. Percentage of Live and Playback Viewing All Households 8.7% 91.3% Live Playback 84% of playback viewing occurs within the first three days of the original broadcast. Source: OzTAM, 5 cap cities, 01 January to 31 December 2013, 2am 2am, based on total television, total homes, playback refers to deferred viewing (within 7 days of broadcast), devices included in playback include VCR, DVD-R and PVRs.

24 PVRs drive incremental audiences Audiences for Free TV programs increase by hundreds of thousands of viewers when playback is taken into account. Free TV s Top 40 Time-Shifted Programs in 2013 Program Overnight Cons % Audience Increase 1 PACKED TO THE RAFTERS-FINAL 1,961,000 2,275, ,000 2 DOWNTON ABBEY 1,747,000 2,049, ,000 3 REVENGE-EP.2 1,176,000 1,477, ,000 4 A PLACE TO CALL HOME 1,819,000 2,109, ,000 5 THE BLACKLIST 1,705,000 1,986, ,000 6 REVENGE 1,524,000 1,787, ,000 7 PACKED TO THE RAFTERS 1,839,000 2,100, ,000 8 UNDERBELLY: SQUIZZY -LAUNCH 2,075,000 2,325, ,000 9 UNDER THE DOME 1,214,000 1,463, , NCIS EP 2 1,058,000 1,300, , ELEMENTARY 969,000 1,204, , MARVEL'S AGENTS OF S.H.I.E.L.D 1,306,000 1,527, , THE BLACKLIST-TUE 1,540,000 1,755, , HOUSE HUSBANDS 1,385,000 1,587, , GREY'S ANATOMY-EP2 443, , , UNDERBELLY: SQUIZZY -EP2 1,018,000 1,210, , NCIS 1,000,000 1,191, , ONCE UPON A TIME-EP2 360, , , MR SELFRIDGE-EP2 770, , , ONCE UPON A TIME 529, , ,000 Program Overnight Cons % Audience Increase 1 CRIMINAL MINDS-EP2 927,000 1,110, ,000 2 HOMELAND 541, , ,000 3 MR SELFRIDGE 1,130,000 1,312, ,000 4 THE FOLLOWING -EP2 425, , ,000 5 ARROW -EP2 813, , ,000 6 LAST RESORT 982,000 1,160, ,000 7 LAST RESORT-EP2 761, , ,000 8 OFFSPRING 1,049,000 1,227, ,000 9 ARROW 1,173,000 1,349, , WINNERS & LOSERS 1,370,000 1,545, , GREY'S ANATOMY 613, , , THE GOOD WIFE 485, , , CRIMINAL MINDS 1,068,000 1,236, , BONES-THU EP2 875,000 1,042, , UNDERBELLY: SQUIZZY 883,000 1,050, , CASTLE 781, , , THE FOLLOWING 786, , , MRS. BROWN'S BOYS-EP2 1,434,000 1,600, , MY KITCHEN RULES-THU 2,513,000 2,679, , THE VOICE -WED 2,763,000 2,928, ,000 Source: OzTAM and RegionalTAM, 5 cap cities and 4 aggregated markets, consolidated data for 01 January 31 December 2013, Free TV s metro and regional audiences are added to form a combined average audience estimate, based on program title matches, ranked by audience increase.

25 Australian shows top the list 2013 was a stellar year for commercial free-to-air networks, with several shows attracting record audiences. Every one of the top 40 programs on TV in 2013 was Australian. And every one of the top 40 programs on TV was on Free TV. Top 40 Programs in 2013 Rank Program Combined Audience 1 MY KITCHEN RULES-WINNER ANNOUNCED 4,468,000 2 THE BLOCK SKY HIGH -WINNER 4,219,000 3 STATE OF ORIGIN NSW V QLD 3RD - MATCH 4,062,000 4 STATE OF ORIGIN NSW V QLD 1ST - MATCH 3,867,000 5 STATE OF ORIGIN QLD V NSW 2ND - MATCH 3,608,000 6 THE BLOCK SKY HIGH -AUCTIONS 3,586,000 7 THE X FACTOR GRAND FINAL-WINNER 3,442,000 8 AFL FINAL: HAWTHORN V FREMANTLE 3,364,000 9 THE X FACTOR GRAND FINAL 3,306, RUGBY LEAGUE GRAND FINAL 3,290, THE VOICE GRAND FINAL -WINNER 3,221, MELBOURNE CUP-THE RACE 3,168, MY KITCHEN RULES-GRAND FINAL 3,072, AFL: GRAND FINAL: PRESENTATIONS 3,007, THE BLOCK: ALL STARS -WINNER 2,986, THE X FACTOR GF PERFORMANCE 2,962, THE BLOCK SKY HIGH -GRAND FINAL 2,956, THE VOICE -WED 2,928, THE BLOCK: ALL STARS -AUCTION 2,869, THE VOICE GRAND FINAL 2,839,000 Source: OzTAM and RegionalTAM; 5 cap cities and 4 aggregated markets; consolidated data for 01 January 31 December 2013, Free TV channels, metro and regional audiences are added to form a combined average audience estimate and ranking, based on program title matches. Rank Program Combined Audience 21 STATE OF ORIGIN NSW V QLD 1ST - PRE 2,828, TENNIS: 2013 AUST OPEN - MEN'S FINAL 2,824, HOUSE RULES-WINNER ANNOUNCED 2,814, THE VOICE -SUN 2,801, STATE OF ORIGIN NSW V QLD 3RD - PRE 2,759, THE VOICE -TUE 2,726, MY KITCHEN RULES-WED 2,712, MY KITCHEN RULES-THU 2,679, MY KITCHEN RULES-TUE 2,657, THE VOICE -LAUNCH 2,645, STATE OF ORIGIN QLD V NSW 2ND - PRE 2,641, MY KITCHEN RULES-MON 2,637, THE VOICE -MON 2,493, AFL: GRAND FINAL: ON THE GROUND 2,483, THE BLOCK: ALL STARS -GRAND FINAL 2,406, HOUSE RULES-GRAND FINAL 2,355, UNDERBELLY: SQUIZZY -LAUNCH 2,325, THE X FACTOR-TUE 2,312, V8 ROUND 11: BATHURST D3 THE PODIUM 2,293, MELBOURNE CUP-RACE PRESENTATION 2,284,000

26 Regular shows attract millions Free TV s regular programs are consistent performers averaging audiences of between 1.6 million and 2.8 million per episode. Free TV s Top 40 Regular Programs in 2013 Rank Program Combined Audience 1 THE VOICE -SUN 2,801,000 2 THE VOICE -TUE 2,726,000 3 MY KITCHEN RULES-WED 2,712,000 4 MY KITCHEN RULES-THU 2,679,000 5 MY KITCHEN RULES-TUE 2,657,000 6 MY KITCHEN RULES-MON 2,637,000 7 THE VOICE -MON 2,493,000 8 THE X FACTOR-TUE 2,312,000 9 THE X FACTOR LIVE PERFORMANCE 2,265, THE X FACTOR-MON 2,247, THE X FACTOR LIVE RESULTS 2,236, THE BLOCK SKY HIGH -SUN 2,230, MY KITCHEN RULES-SUN 2,155, THE X FACTOR HOME VISITS 2,142, A PLACE TO CALL HOME 2,109, PACKED TO THE RAFTERS 2,100, THE BLOCK: ALL STARS -SUN 2,070, DOWNTON ABBEY 2,049, HAMISH & ANDY'S GAP YEAR ASIA 2,023, THE BLOCK SKY HIGH -MON 1,987,000 Source: OzTAM and RegionalTAM; 5 cap cities and 4 aggregated markets; consolidated data 01 January 31 December 2013, Free TV channels, metro and regional audiences are added to form a combined average audience estimate and ranking, based on program title matches and on 3+ episodes. Rank Program Combined Audience 21 THE BLACKLIST 1,986, HOUSE RULES-REVEAL 1,982, NINE NEWS SUNDAY 1,840, DANCING WITH THE STARS 1,831, THE BLOCK SKY HIGH -TUE 1,815, THE BLOCK: ALL STARS -MON 1,813, SEVEN NEWS - SUN 1,801, THE BLOCK SKY HIGH -WED 1,799, REVENGE 1,787, SUNDAY NIGHT 1,783, THE BLOCK SKY HIGH -THU 1,758, THE BLOCK: ALL STARS -TUE 1,748, THE BIG BANG THEORY 1,723, THE FORCE - BEHIND THE LINE 1,717, HOUSE RULES-TUE 1,706, NINE NEWS 1,687, MINUTES 1,684, THE FORCE - BEHIND THE LINE-TUE 1,684, THE BLOCK: ALL STARS -WED 1,662, MRS. BROWN'S BOYS 1,654,000

27 Pay TV audiences are small A review of pay TV s flagship programs shows that even the highest rating episodes fail to attract significant audiences. Highest Audience Recorded for Pay TV s Flagship Programs in 2013 Program Average Audience of Highest Rating Episode SELLING HOUSES AUSTRALIA 229,313 GRAND DESIGNS AUSTRALIA 197,479 THE WALKING DEAD 181,390 AUSTRALIA'S NEXT TOP MODEL 174,753 LOCATION LOCATION LOCATION AUSTRALIA 170,731 GAME OF THRONES 154,399 WENTWORTH 148,451 BARGAIN HUNT 69,385 TRUE BLOOD 46,488 Source: OzTAM, national Pay TV homes, 01 January 31 December 2013, based on highest rating episode, based on consolidated data.

28 TV is #1 for entertainment Deloitte recently conducted a survey to explore how Australia's media usage and preferences have evolved with technology. The survey of more than 2,000 Australian consumers showed that TV is Australians number one choice for entertainment. Preferred Source of Entertainment 63% 44% 28% 28% 21% 14% Australians prefer watching TV more than any other form of entertainment. 17% Watching TV Using the internet Listening to radio Reading newspaper Going to the movies Reading magazines Playing video games Source: Deloitte State of the Media Democracy Report 2013, n=2,000+ Australians, reading books/listening to music and attending live performances not charted.

29 TV s strength driven by content In the last five years, commercial free-to-air broadcasters have invested a massive $6 Billion in Australian programming alone. This investment is why Australians continue to watch and engage with Free TV content across a range of different screens. Networks have invested $6 Billion in Australian content alone over the last 5 years Source: Free TV Australia, programming expenditure on Australian content FY

30 TV is more social than ever 4 in 10 Australians use social media while watching television. What's more, 30 per cent are using social media to talk about what they are watching or what they have seen on television. Social Media Users Discussing TV Content While Watching TV Total Ppl Ppl Ppl Ppl % 30% 37% 33% Social media is also driving a deeper level of engagement. 40% of those surveyed said it increases their enjoyment of what they are watching. Ppl % Source: AIMIA Yellow TM Social Media Report May 2013.

31 TV gets people talking Extensive research conducted in the UK highlights TV s essential role in generating wordof-mouth. The study showed that television advertising is by far the biggest contributor to a brand s talkability and this continues well-beyond the initial on-air activity. Main Drivers of Word-of-Mouth 51% 19% 12% 4% 2% 2% 1% 0.5% TV PR Web Search Print Outdoor DM Cinema Radio Source: Data2Decisions and Thinkbox 2013; PR includes events and news, does not include WOM generated by change to product or service.

32 TV drives a direct response Deloitte UK recently studied the link between TV advertising and purchasing decisions. The comprehensive study across a range of different demographics found that eleven percent of respondents searched for a product after they had seen a TV ad or TV sponsorship. The proportion was more than double for 16 to 24 year olds. 1 in 5 young adults bought the product that was advertised. Reactions after seeing a TV ad or TV sponsorship Source: Deloitte/Gfk, June 2013, Q: What have you done following seeing a TV advert or sponsorship clip?, weighted base, all respondents split by age group (352), (428), (428), (453), 55+ (856). Access this and other Deloitte UK reports at

33 TV is the ultimate influencer TV advertising works better than any other medium at influencing behaviour and driving purchasing decisions. According to Deloitte, television is by far the most influential form of advertising. 62 per cent of Australians say television has the greatest influence on their decision to purchase goods and services. Most Influential Advertising Channel 62% 50% 48% 54% 55% 37% 34% 33% 21% 17% Television Newspaper commercial ad Magazine ad Radio ad Cinema ad Outdoor Company website Social media Online review/blog SMS or mobile app Source: Deloitte State of the Media Democracy Survey 2013; n=2000+ Australians.

34 TV garners lion s share of spend Free-to-air television continues to attract the greatest share of the $13.4 Billion advertising pie. Share of Australian Advertising Revenue Outdoor 4.0% Cinema Inserts 0.8% 0.9% Magazines 3.0% Other 10.3% Free TV 26.1% Newspapers 13.6% Pay TV 3.8% Radio 7.7% Online Classifieds 5.6% Search & Directories 15.8% Digital Online 8.4% Source: data sourced from CEASA 2013, percentage share by advertising category. Other includes suburban press, other publications and classified directories, total expenditure in main media in 2013 was $13,375,873,000.

35 About the data The ratings data included in this report is sourced OzTAM and RegionalTAM (metro, regional and national pay TV databases): The ratings data is based on 1 January to 31 December 2013, unless noted otherwise Free TV figures include the commercial broadcasters only Free-to-air figures include the commercial broadcasters as well as the public broadcasters (ABC and SBS) All ratings figures are based on Consolidated ratings unless otherwise noted - ie Live plus Playback. This includes any viewing of programs done at normal speed within seven days of the original broadcast. It does not include any content that is fastforwarded. Other data is sourced from local and international research studies, as indicated.