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Entertainment Index
2011
ISSUE ONE : FEBRUARY 2011
a transformational year for entertainment
This is set to be a landmark year for digital entertainment on TV, online and on mobile phones. Leading the charge will be On Demand, as increased choice and greater capability puts this growing way of watching programmes front of mind for many more people, and transforms viewing habits in the process. As the first provider of On Demand through the TV screen, Virgin Media’s experience provides a unique perspective into the trends that will shape the market over the next twelve months.
This report is produced by Emma Keens, technology, media and telecoms journalist
1
2010 – a year in review total On Demand views
429,530,077 total hours watched
On average, Virgin Media households now watch On Demand TV for nearly two and a quarter hours a week – the third most watched ‘channel’ on the platform. Comparisons with national Broadcasters’ Audience Research Board (BARB) data reveal On Demand is watched more than anything on TV other than BBC1 and ITV1. Mirroring seasonal trends in traditional broadcasting, Christmas was a particularly popular period. Viewing in December was above the 90 million mark for the first time, which is a tenfold increase on the same period just four years ago.
Cindy Rose, executive director of digital entertainment, Virgin Media
Cindy Rose, Virgin Media’s executive director of digital entertainment (pictured), believes that the growth is relentless: “People don’t necessarily think in terms of linear or On Demand. What they want is the show of their choice, and they want it now. There’s so much fantastic programming now available that the choice can be overwhelming. But once someone uses On Demand, they soon get hooked on making their own viewing schedule.”
AVERAGE HOURS WATCHED PER WEEK
one
5hr 50min 4hr 41min
OD
TWO
2hr 13min 1hr 56min 1hr 46min 1hr 30min Source: national BARB data/Virgin Media TV homes
NEAR TENFOLD INCREASE IN AVERAGE MONTHLY VIEWS OVER FOUR YEARS 100 90 80 70 60 50 40 30 20 10 0
Million views
877,605,134
Virgin Media enters the new year after a record-breaking 2010, which saw its customers sit down to watch almost 430 million hours of On Demand programming. Collectively, they pressed play 878 million times, an increase of more than 10% on 2009.
2007
2008
2009
2010
This is not time-shifted viewing, such as watching a linear channel like ITV1+1, nor using a PVR (Personal Video Recorder) such as the V+ box, where the viewer needs to think ahead and programme the set-top box to record. Instead this is true On Demand, access to thousands of hours of content instantly available to watch at the press of a button.
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Trend spotlighting
Virgin Media On Demand’s most popular shows reflect linear viewing habits, with ITV and BBC’s most watched shows all appearing in the data.
Separate studies from the Chartered Institute of Personnel and Development1 and the National Union of Students2 point towards an increasingly time constrained society. While television viewing continues to be considered an important part of our daily lives, this pressure is likely to drive the popularity of On Demand higher yet again in 2011.
Cable in the UK was originally created to help these public service broadcasters reach audiences where the analogue reception was poor. Purposebuilt to carry programming at broadcast quality, the technology’s greater spectrum and two-way interactive capability provide the ideal means of delivery for home entertainment.
“Everyone has less time these days and at the heart of On Demand’s rise is its sheer convenience. True On Demand is ready for you instantly when you want,” said Rose. “We’re presenting great content from numerous sources and liberating that from a set schedule. You can easily find and watch what you want, when you want. Every metric we have points to On Demand being set for relentless growth.”
In the digital age, customers clearly value the quality of the experience. Despite near universal access to the internet, Virgin Media TV customers account for more than one in every five BBC iPlayer video requests – the largest contributor after computers and more than all other platforms combined. This is among a number of trends that have emerged from Virgin Media’s data.
This capability has led to an interesting development – the definition of prime time is being challenged for the first time. What is traditionally considered to be peak viewing, between 8pm and 9pm, is far less apparent in an On Demand world as viewers pick the times that suit their individual lifestyles and needs.
BBC iPLAYER REQUESTS
During weekdays the largest proportion of views begins earlier in the evening, between 4pm and 10pm, suggesting a younger demographic.
December 2010
23.9m 21%
Linear TV remains, and will likely always be, an important part of home entertainment. Yet this is particularly the case for ‘event’ programming, such as time-sensitive sport and reality content. These provide the ‘water cooler moments’ of collective social interaction, such as the live conclusion of ITV’s The X-Factor. However, a trend has emerged for other shows to perform better through availability On Demand. A case in point is Channel 4’s hit comedy The Inbetweeners. Although the show has achieved a growing cult following, initial viewing figures for its first season averaged just 373,000. When the power of scheduling was put into the hands of Virgin Media customers through On Demand, the show notched up a similar sized audience all over again. All three series feature in Virgin Media’s top ten most watched complete series of 2010, while the latest series is the only show not from the BBC or ITV to make the top ten catch-up shows of the year. Increasingly, programme makers will be thinking beyond the scheduled time to the On Demand opportunity when assessing the audience potential.
TV ON DEMAND VIEWING BY CATEGORY 20%
89.7m 79%
At weekends, there is a near constant demand for shows between 9am and 7pm. This needn’t be at the expense of prime time, but rather it is of benefit to those programmes scheduled at other times. This insight is invaluable to all content providers as it will inform advertisers’ strategies in the future.
15% 10%
Catch-up Kids Movies TV Choice
5% Virgin Media BBC iPlayer video requests All other BBC iPlayer video requests
The data reveals the UK’s ‘ownership of the remote’ with kids watching content during early afternoon and evening. Later on, movie watching takes off as the adults of the household settle in for a film night.
0% 0600 0700 0800 0900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 0000 0100 0200 0300 0400 0500 Rebased
3
The search generation Despite the huge array of content available, the traditional format of a list of channels that makes the TV guide (also known as the EPG) still remains the first port of call for the majority of viewers. However this institution is starting to come under threat, with younger viewers in particular heading straight for a search function to quickly ‘self-service’ their own content. Cindy Rose has experienced this first hand and observes: “My kids rarely look at the TV guide. Just recently my youngest wandered over to the TV and tried to press the screen to change what was on, just as he would on an iPad! The TV is just another screen for younger viewers and it is second nature for them to look for content quickly using internetstyle techniques. Search will become the dominant discovery tool of the next generation.” This is indicative of a growing trend. Young people have grown up with broadband, which the latest Ofcom statistics reveal is now in 71% of UK homes. Ofcom also reports that 52% of 16-24 year-olds use devices such as the phone, TV and internet concurrently3. “We’re not about to put the open internet on the TV,” cautions Rose. “It’s important that there’s quality control to ensure the best experience. The vast majority of the internet is not designed for the social screen yet.”
IN FOUR YEARS ON DEMAND REACH INCREASED 20 PERCENTAGE POINTS 70% 65% 60% 55% 50% 45% 40% 35% 30%
More services, more choice, more expectation The emergence of new trends is likely to accelerate as On Demand through the TV becomes increasingly available. In the past four years, over one million more families have started regularly watching On Demand through Virgin Media. Non-Virgin Media customers, however, have little experience of true TV On Demand. But 2011 will see these numbers accelerate, as Virgin Media grows its network and other providers bring their own TV On Demand to a wider audience. Early 2011 saw BSkyB launch Sky Anytime+, while YouView – the collaboration between all the terrestrial broadcasters and two of the largest internet providers, BT and TalkTalk – is thought to launch in early 2012. There are also a number of entrepreneurial British and international companies, at varying stages of development, striving to create their own internet connected TV products. Increased awareness will serve to fuel the expectation of On Demand programming, and the desire for a service that compares favourably to the viewing quality and experience of linear TV. These heightened expectations present the opportunity to showcase the premium performance of Virgin Media’s cable network – an advantage best utilised by the company’s new TV service powered by TiVo. Virgin Media TiVo’s graphical interface and easy search and recommendation capabilities make it straightforward for customers to find and enjoy their favourite content, including the best from the internet.
Virgin Media TiVo also learns an individual household’s tastes and will automatically record and recommend shows it thinks the customer will like. “Hopefully, gone are the days when you’d sit down and say, despite hundreds of channels, that there’s nothing worth watching. Now there should always be something entertaining or enlightening, instantly ready to watch when you want,” says Rose. “Critically, for the ‘always on’ family, we have a dedicated high-speed broadband connection inside the TV set-top box,” she explains. “This uniquely means your internet is not affected by someone watching television and visa versa. There has to be a question about whether the country’s copper broadband network is robust enough to support a quality TV experience. We don’t have this problem thanks to our own high-quality cable network that puts us in a category of one when it comes to delivering premium TV.” In the next twelve months the way we watch TV is set to evolve even further. For many more the answer to the question ‘what’s on the TV’ will be ‘whatever you want’. And if further proof were needed that On Demand has come of age it will be provided should Virgin Media break through the one billion views mark in 2011 as predicted.
1 2 3
CIPD Work Audit: Working Hours In The Recession August 2010 NUS and Endsleigh Student Lifestyle Report January 2011 Ofcom 7th Annual Communications Market Annual Report: The Communications Market 2010
Over one million more families now watch On Demand – a 79% increase
2007
2008
2009
2010 Rebased
4
2010 – a record-breaking year WEEKDAY ON DEMAND VIEWING BEHAVIOUR 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
WEEKEND ON DEMAND VIEWING BEHAVIOUR
TV On Demand Online On Demand Mobile On Demand
0600 0700 0800 0900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 0000 0100 0200 0300 0400 0500
10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
TV On Demand Online On Demand Mobile On Demand
0600 0700 0800 0900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 0000 0100 0200 0300 0400 0500
Rebased
Rebased
Mobile viewing shows the greatest consistency throughout the day, even during the week. This is the result of people viewing content while on the move, to keep them entertained during journeys to and from work or other commitments. Conversely, online On Demand habits reflect TV On Demand viewing, with a high proportion of people watching in the evening during the week. This is highly suggestive that households are concurrently watching online and on their TVs while at home – perhaps keeping the kids entertained with SpongeBob SquarePants while catching up on the last night’s Coronation Street.
TOP 5 ONLINE ON DEMAND Broadcaster
TOP 5 MOBILE ON DEMAND
Title
Broadcaster
Title
1
Dinosaur Secrets: Bloodiest Battle
1
Trigger Happy TV s2
2
Spartacus Blood & Sand s1
2
The Hills s5
3
SpongeBob SquarePants s4
3
The Inbetweeners s1
4
Christmas Lights
4
SpongeBob SquarePants s4
5
Secret Diary of a Call Girl s3
5
Derren Brown s2
5
LINEAR TV VERSUS TV ON DEMAND Programme
one one
10% 8% 6%
First Broadcast Date
The X Factor Results
21-Dec
Coronation Street
10-Dec
World Cup 2010: England v Germany
27-Jun
Doctor Who
03-Apr
EastEnders
19-Feb
The X Factor
09-Oct
Coronation Street
06-Dec
World Cup 2010: England v Algeria
18-Jun
Britain’s Got Talent
05-Jun
I’m A Celebrity – Get me out of here!
04-Dec
Strictly Come Dancing
Britain’s Got Talent
24-Apr
EastEnders
25-Dec
The Inbetweeners
04-Oct
Sherlock
25-Jul
18-Dec
Top Gear
27-Jun
Doctor Who
01-Jan
Piers Morgan’s Life Stories
23-Oct
Downton Abbey
07-Nov
Strictly Come Dancing
18-Dec
TV CATCH-UP VIEWING BEHAVIOUR 12%
Programme
ON DEMAND
BARB
one one
Broadcast Date
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
4% 2% 0% 0600 0700 0800 0900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 0000 0100 0200 0300 0400 0500 Rebased
The most watched shows of 2010 on linear channels are dominated by ‘event’ programming; live TV that evening and weekend routines are often planned around. This included England’s ill-fated sojourn at the football World Cup and the conclusion of reality TV flagships including The X-Factor and Britain’s Got Talent. The live appeal of these shows means they are conversely less likely to be viewed at another time via On Demand. BARB data and seven-day catch-up viewing can therefore show certain discrepancies. One notable example is Coronation Street where the most watched episode On Demand was originally broadcast on 10th December, the day after its much-hyped live episode. In addition, earlier episodes of ‘event’ TV series tend to perform better On Demand than shows later on. This is likely the result of a combination of factors, such as the often comedic performances from the public during the audition rounds which deserve repeat viewing or that, once a favoured performer is out, so the viewer loses interest. Virgin Media is the only provider of catch-up services from all four public service broadcasters, BBC, ITV, Channel 4 and Channel 5. Catch-up viewing during weekdays shows a steady increase throughout the day, peaking between 7pm and 11pm. In comparison, weekend patterns show fairly consistent viewing during the morning, which then declines for 7pm – most likely as prime time ‘event’ programming begins.
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EASTENDERS VERSUS CORONATION STREET EASTENDERS VIEWING BEHAVIOUR 16% 14% 12% 10% 8% 6% 4% 2% 0%
CORONATION STREET VIEWING BEHAVIOUR Weekday Weekend
16% 14% 12% 10% 8% 6% 4% 2% 0%
0600 0700 0800 0900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 0000 0100 0200 0300 0400 0500
Weekday Weekend
0600 0700 0800 0900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 0000 0100 0200 0300 0400 0500
Rebased
Rebased
Most watched EastEnders episode:
Most watched Coronation Street episode:
25th December – 344,088 views
10th December – 546,058 views
STRICTLY COME DANCING VERSUS THE X-FACTOR STRICTLY COME DANCING VIEWING BEHAVIOUR 12% 10%
Weekday Weekend
THE X-FACTOR VIEWING BEHAVIOUR 12% 10%
8%
8%
6%
6%
4%
4%
2%
2%
0%
0600 0700 0800 0900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 0000 0100 0200 0300 0400 0500
0%
Weekday Weekend
0600 0700 0800 0900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 0000 0100 0200 0300 0400 0500
Rebased
Rebased
The most watched soaps and reality TV shows from major British channels show remarkably similar viewing patterns. There appears to be a trend towards watching EastEnders earlier in the day, suggesting a younger audience. Viewing of The X-Factor also tends to be earlier.
7
TOP 10 MOVIES
TOP 10 TV CHOICE: COMPLETE SERIES Broadcaster
Title
1
Channel 4
The Inbetweeners s1
2
Channel 4
The Inbetweeners s2
3
Warner
Fringe s1
4
Warner
The Mentalist s1
5
Warner
Vampire Diaries s1
6
Channel 4
Skins s3
7
Channel 4
The Inbetweeners s3
8
BBC
9
Warner
10
BBC
Dr Who s2 Eastwick s1 Louis Theroux
Virgin Media offers a wide range of complete series On Demand. The Inbetweeners reigned supreme when it came to the most watched shows. Further analysis of the individual episodes suggests a preference to watch each in chronological order, back to back, in fewer sittings.
TOP 5 3D Title
Studio
Title
1
Disney
Alice In Wonderland
1
The Curse of Skull Rock
2
Warner
Sherlock Holmes
2
3D Sun
3
Warner
Clash Of The Titans
3
Dinosaurs Alive
4
Universal
The Hurt Locker
4
StreetDance 3D
5
Paramount
Shutter Island
5
Xenopod
6
Warner
Inception
7
Warner
The Blind Side
8
Universal
Inglourious Basterds
9
Lionsgate
Harry Brown
10
Vertigo
StreetDance
2010 was a year of innovation in On Demand movies. In July, Virgin Media and Warner exclusively offered Clash of the Titans three days prior to its DVD general release, with a physical DVD copy bundled into every purchase. This global first set the film up for a record-breaking opening. More films became available on the same day as its DVD went on sale, such as Inception. Virgin Media, in association with FilmFlex, also doubled the length of time films are available after purchase to 48 hours.
In September Virgin Media became the first to offer a commercial 3D service to millions of UK homes. Viewing numbers have been encouraging, with plenty of appetite for the wide variety of genres of content from a small but growing base of customers.
TOP 5 BOLLYWOOD Title 1
Jab We Met
2
Paathshaala
3
Kambakkht Ishq
4
1920
5
Kisaan
A number of box office successes toward the end of 2010 are likely to feature heavily On Demand in 2011.
8
KIDS VIEWING BEHAVIOUR 12%
TOP 5 KIDS Weekday
10%
Media owner Title
Weekend
8%
1 Nickelodeon SpongeBob SquarePants s7
6% 4% 2% 0% 0600 0700 0800 0900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 0000 0100 0200 0300 0400 0500
2
HIT
3
Disney
Cadet Kelly
4
Disney
Wizards of Waverly Place: The Movie
5
Disney
Dadnapped
Thomas: Calling All Engines
Rebased
TOP 10 MUSIC VIDEOS Label
TOP 10 KARAOKE VIDEOS
Artist
Track
Date of release
Justin Bieber
Baby (ft. Ludacris)
18-Jan
Artist
Title
1
Lady Gaga
Bad Romance
1
Universal Music
2
EMI Music
Katy Perry
California Gurls (ft. Snoop Dogg)
11-May
2
Kings Of Leon
Sex On Fire
3
EMI Music
Tinie Tempah
Written In The Stars (ft Eric Turner)
19-Sep
3
Taylor Swift
Love Story
4
SONY BMG
Usher
OMG (ft. will.i.am)
22-Mar
4
Flo Rida
Low
5
SONY BMG
JLS
The Club Is Alive
02-Jul
5
Jason Derulo
Whatcha Say
6
Universal Music
Eminem
Not Afraid
29-Apr
6
Lyaz
Replay
7
Universal Music
Rihanna
Rude Boy
19-Feb
7
Owl City
Fireflies
8
Universal Music
Lady Gaga
Bad Romance
26-Oct
8
Lady Gaga
Telephone
9
Universal Music
Cheryl Cole
Promise This
25-Oct
9
3OH!3 / Katy Perry
Starstrukk
10
EMI Music
Tinie Tempah
Frisky (ft. Labrinth)
06-Jun
10 Lady Gaga
Poker Face
Music’s younger audience meant school holidays were peak viewing months. Artist takeovers have proved bigger and better than ever, the highlight being the Robbie Williams takeover in November to coincide with the Take That reunion. Lady Gaga remains hugely popular – even 14 months after its release, Bad Romance is one of the most watched videos among Virgin Media customers. The number of views for each video in 2010 does not always compare with the song’s chart performance, usually because it had been released later in the year, or the video later in the sales cycle.
9
2011 – a look ahead Alongside the growth in On Demand views – which could hit one billion in 2011 – a number of trends are likely to come to prominence over the next twelve months.
On Demand to surge in popularity With everyone having less free time at their disposal, the opportunity to watch what you want, when you want will be more widely embraced by viewers. The rate of growth will be determined by the availability of content with no strings attached and the success of platforms in organising the vast amount of programming. Simplicity of use and ensuring the experience is not overwhelming will be crucial in the development of On Demand.
The TVapp times ENTERING A PERIOD OF UNPRECEDENTED VIEWS 1100
1,052m
1000 900 895m
Millions of views
800 700 600 500 400
Thanks to developments in next generation TV platforms, such as Virgin Media TiVo, apps will increasingly become available on the TV. From the comfort of the sofa viewers will be able to bid on eBay, laugh at YouTube clips, and share pictures and opinions through social networks, all via the social screen. Virgin Media has a robust app development pipeline and will be working with numerous companies to bring new interactive experiences to the TV during 2011.
The contentpreneurs
300
2011
Connected TVs will help to create opportunities for community producers – from local authorities, to sports teams and schools – who will look to launch their own programming. However, the sheer volume of content available will make it a challenge for
PROJECTED
these ‘contentpreneurs’ to gain the eyeballs needed
200 100 0 2008
2009
2010
TOTAL ON DEMAND VIEWS
to become sustainable. Virgin Media is already in discussions with many local TV organisations as the search, recommendation and personalisation features of its new platform mean such TV has an unparalleled opportunity to secure sufficient prominence in order to build an audience.
The third-screen Smartphone usage will continue to converge with the social and personal screens of the TV and computer. Technological progress will make people’s preferences more easily accessible on any device, including tablets. Ultimately the future, where it will be possible to start watching a programme at home and then pick up the viewing on the train to work through the mobile, will move a significant step closer. With upgrades to mobile networks and a near ubiquity of Wi-Fi, consumers will stream and watch more content while out and about with a greatly improved user experience.
New advertising models Advanced TV platforms present new ways for advertisers to reach audiences. Dynamic ads that directly relate to a programme can be inserted in ways that make the message more relevant and timely. The interactivity provided by connected TVs will become more attractive to media buyers as the popularity of On Demand surges.
Upper projection is based on the average growth rate since 2008. Lower projection is based on a continuation of changes in rate of growth.
10
TiVo – it’s TV, but not as we know it 2011 is the first full year that Virgin Media’s new next generation TV service, powered by TiVo, will be widely available. It is expected to transform the home entertainment experience for customers, presenting an easy-to-use graphical interface that brings linear TV, catch-up TV with a seven-day playback capability, a huge library of On Demand series and the best of the internet seamlessly together for the first time in the UK. The set-top box includes a dedicated broadband connection that ensures any programming or interactivity delivered by Internet Protocol (IP) does not come at the expense of the household’s web experience. A one terabyte hard drive is integrated too to record up to 500 hours of programming. Virgin Media is blurring the distinction between linear and catch-up TV by introducing a TV guide that goes backwards as well as forwards. This makes it intuitive for viewers to look at what is coming up later as well as play On Demand shows from the past week, without needing to navigate multiple screens.
As well as aggregating and conveniently presenting a huge amount of content, Virgin Media TiVo makes it easy to find and organise it. A powerful and innovative personalisation engine automatically records entertainment that might be of interest based on individual preferences (e.g. genre of content, a particular actor and many more) and viewing habits. Users can press the remote’s trademarked thumbs up and down buttons to further educate their box what to recommend. Complementing the personalisation technology is an advanced search and discovery feature that sits at the core of the service. It intelligently orders findings based on what is ‘trending’ among other viewers and the customer’s own preferences.
Virgin Media TiVo interface
Virgin Media TiVo also includes three HD tuners so that viewers can record two channels whilst watching a third. And it provides a new canvas for the development of applications, with viewers able to enjoy such as eBay, YouTube, Twitter, Facebook and more from the comfort of the sofa. Virgin Media TiVo is the future of TV arrived – a landmark moment in technical development that cements the social screen as the focal point of entertainment consumption in the home, turning the vision of truly enabling people to watch what they want, when they want, into reality.
Virgin Media TiVo search
11
