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How the world watches_McKinsey_2011
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Convergence is the fission of the tech world—the day, always a little in the future, when all kinds of media and content will converge on a single, ubiquitous platform. But reality has proved stubborn. Consider television. This is an old-school device, to be sure, but the last few years have seen the biggest change in TV since the advent of cable—the ability to watch TV programming without a TV. But as McKinsey’s recent survey of 5,000 people in the US, Britain, Germany, Spain, Korean and Japan indicates, there is no convergence about how people are watching and on what. Spaniards, for example, spend 13 minutes a day watching over-the-top (OTT) video, more than six times as much as the Japanese (2 minutes). More than half of Koreans prefer to watch OTT content on TV-connected PCs, compared to only 13% of Americans, the lion’s share of whom watch their OTT content on gaming consoles, the choice of only 12% of Japanese. On the larger issue, only 15% of Germans and 19% of British watch TV over the Internet at all, compared to 45% of Koreans. For businesses in the industry, then, this is a good moment to pause and reflect—on what trends the leaders are establishing; on how to react to the inevitable disruptions; and on how to coax profits from the vortex. The reasons people give for watching OTT are broadly similar, chiefly the ability to view when they want to and the ability to see Internet content on a bigger screen. So it is the not-as-important reasons that may be more revealing in terms of revealing market-specific important wants and needs. Americans and Koreans value controlling ads; and Japanese and Germans place watching YouTube high on their priorities. Such information is of more than academic interest; it can suggest avenues for business to explore. For example, Americans and How the world watches Consumer and Shopper Insights October 2011 This is the second of five articles derived from McKinsey’s iConsumer survey, an annual survey that tracks changing consumer behavior for different digital experiences. SOURCE: McKinsey iConsumer Exhibit 1: Why people like to watch the Internet on their TV Percentage of respondents who chose top 2 boxes between 1 (= not at all important) and 6 (= very important) Access to large library of content 30 Control over ads Watch youtube 17 View photos/videos from PC 19 Watch internet content on large display 32 View when you want it (not having to wait for TV program 32 28 View when you want it (access to TV shows you missed) 34 21 13 Download directly to TV Comments on content 11 Chatting while watching 13 Access other content 16 Customize viewing 16 Get additional info 9 11 18 11 18 18 24 21 19 20 24 25 19 6 9 11 12 12 14 19 20 21 21 29 25 37 6 9 17 14 18 19 11 16 16 14 17 27 35 6 7 4 15 11 11 14 10 16 15 17 18 19 12 15 20 18 13 22 N/A 27 16 25 32 35 36
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Transcript of How the world watches_McKinsey_2011
Convergence is the fission of the tech world—the day, always a little in the future, when all kinds of media and content will converge on a single, ubiquitous platform. But reality has proved stubborn.
Consider television. This is an old-school device, to be sure, but the last few years have seen the biggest change in TV since the advent of cable—the ability to watch TV programming without a TV. But as McKinsey’s recent survey of 5,000 people in the US, Britain, Germany, Spain, Korean and Japan indicates, there is no convergence about how people are watching and on what.
Spaniards, for example, spend 13 minutes a day watching over-the-top (OTT) video, more than six times as much as the Japanese (2 minutes). More than half of Koreans prefer to watch OTT content on TV-connected PCs, compared to only 13% of Americans, the lion’s share of whom watch their OTT content on gaming consoles, the choice of only 12% of Japanese. On the larger issue, only 15% of Germans and 19% of British watch TV over the Internet at all, compared to 45% of Koreans.
For businesses in the industry, then, this is a good moment to pause and reflect—on what trends the leaders are establishing; on how to react to the inevitable disruptions; and on how to coax profits from the vortex.
The reasons people give for watching OTT are broadly similar, chiefly the ability to view when they want to and the ability to see Internet content on a bigger screen. So
it is the not-as-important reasons that may be more revealing in terms of revealing market-specific important wants and needs. Americans and Koreans value controlling ads; and Japanese and Germans place watching YouTube high on their priorities.
Such information is of more than academic interest; it can suggest avenues for business to explore. For example, Americans and
How the world watches
Consumer and Shopper InsightsOctober 2011
This is the second of five articles derived from McKinsey’s iConsumer survey, an annual survey that tracks changing consumer behavior for different digital experiences.
SOURCE: McKinsey iConsumer
Exhibit 1:Why people like to watch the Internet on their TVPercentage of respondents who chose top 2 boxes between 1 (= not at all important) and 6 (= very important)
Access to large library of content 30
Control over ads
Watch youtube 17
View photos/videos from PC 19
Watch internet content on large display 32
View when you want it (not having to wait for TV program 32
28
View when you want it (access to TV shows you missed) 34
21
13
Download directly to TV
Comments on content 11
Chatting while watching 13
Access other content 16
Customize viewing 16
Get additional info
9
11
18
11
18
18
24
21
19
20
24
25
19
6
9
11
12
12
14
19
20
21
21
29
25
37
6
9
17
14
18
19
11
16
16
14
17
27
35
6
7
4
15
11
11
14
10
16
15
17
18
19
12
15
20
18
13
22
N/A
27
16
25
32
35
36
Spaniards are the most likely to name the ability to access a large library of material as an OTT advantage. The US and Spain also have the two highest rates (25% and 16%) of consumers who subscribe. The two data points suggest a virtuous dynamic—the more material there is, the more likely people are to be willing to pay for it on a regular basis.
What kind of material? Current TV, reruns and movies dominate everywhere; in other words, conventional material dominates. Except in Japan, where 32% of Internet-based videos on PCs are user-generated—at least double the rate anywhere else.
For all the possibilities of OTT – and the numbers suggest this is a market very much in the making—there are also limitations that content providers can do little about. With consumers preferring smaller laptops and handhelds, the size of screens can make watching a movie something less than an epic experience. Indeed, in every country, the size and comfort of watching on a PC is the main reason given for not watching video online.
As for making televisions themselves sexier, there is certainly room to grow because the base is so small at the moment. Only small minorities of respondents—16% or less—are even aware that 3D televisions exist and less than half of those have ever seen one; fewer than 1% say they are likely to buy one.
The OTT opportunity is going to be big, but it is also going to be complicated. When consumers use OTT, it also changes the way they watch things in general, with fewer watching current TV shows, premium channels or DVDs (although there is some compensating effect in some watching more, presumably as they get more plugged into watching). The priorities in every country are apparent—content, price and simplicity. The devil is in the tiny details.
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