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Anytime,

anywhere
The rising demand of media on the move

KPMG’s media and


entertainment barometer

kpmg.co.uk
1 | KPMG’s Media and Entertainment Barometer

Introduction

Consumers on the move are more


prepared to pay for content.

Welcome to KPMG’s third Media Unsurprisingly, the majority of


and Entertainment Barometer, a six- respondents of our latest survey agreed
monthly consumer survey conducted that the ability to access media online
on behalf of KPMG by YouGov. (e.g. newspapers, music, video and
radio) meant they now accessed more
Since launching the survey a year ago,
media than in the past – 60 percent
we have seen a number of changes
agreed that they accessed more.
in the market. More than a quarter
of consumers surveyed now own However, despite this increase, the
a smartphone, rising to 44 percent majority of consumers are still reluctant
in the 18-34 age range. This marked to pay for content on their desktops.
increase is generating revenue for Only 13 percent of consumers had paid
those providing mobile applications for online content and just 9 percent
and downloadable content and is also said they would consider paying for
providing new advertising streams for online content in the future.
the media sector.
Some major national newspaper
A third of smartphone owners had groups have introduced paywalls for
downloaded paid apps during the their online content, and all eyes
period surveyed, with one in ten have been on whether they are likely
spending over £10. Complementing this to be successful in the long term.
trend is tablet ownership which already Our survey suggests that as long as
stands at two percent, with nearly half content is available for free elsewhere,
(45 percent) owning an Apple ‘iPad’. the majority of consumers (79 percent)
These figures show that consumers are would rather find a different provider
willing to pay for content on the move. than pay for content online.

Introduction // Key findings // Accessing traditional media // Accessing new media //Traditional vs. New media
<< Previous
What content would you be prepared to pay for? // Introducing a ‘paywall’ // Impact of recession // 3D viewing

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
KPMG’s Media and Entertainment Barometer | 2

In the meantime, despite this increase and tablets, will become more willing
About the survey
in the use of digital media, certain to pay for online content to their
All figures, unless stated otherwise,
activities, such as outdoor events, desktop – but, at the moment, it is too
are from YouGov Plc. Research was
watching TV and reading books and early to identify any discernible trends.
conducted with members of the
magazines, remain hugely popular.
I hope you find the survey of interest. YouGov online panel between 14-21st
This leads to, what we term, a “mixed
As always, please do get in touch if September 2010 for Wave 3 (W3), 15-18
ecology”, and highlights that old and
you’d like to discuss the findings in March 2010 for Wave 2 (W2) and 11th-
new media will co-exist and evolve
more detail. 14th September 2009 for Wave 1 (W1).
together over time.
The surveys sampled people aged
The next 12 months will see a further
16 years plus in the United Kingdom.
shift in the mobile market as tablets David Elms
Data was subsequently weighted to
and smartphones become more widely Head of Media
this profile.
available. A key question is whether
consumers, increasingly used to paying In total there were 1037 completes
for premium content on their mobiles for the first wave and 1034 for W2.
The sample size was increased for
the most recent wave, W3, and 2241
completes were achieved.

Accessing more media now? // Prefer accessing online or offline // Currently paying for online content?
Next >>
Smartphone // Smartphone manufacturer // Smartphone apps //Tablets //Tablet manufacturer

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
3 | KPMG’s Media and Entertainment Barometer

Key findings

The survey asked consumers about Smartphone & Apps • Three quarters (74 percent) of
their consumption habits and • More than a quarter (27 percent) smartphone users had downloaded
preferences across all types of media owned a smartphone – this rose to apps during the past 12 months.
including, publishing, broadcast, music, 44 percent and 43 percent amongst
• Over a third (35 percent) had paid for
gaming, etc. It asked about their the 18-24s and 25-34s respectively.
apps during the month surveyed.
activities during the previous month
• Four-fifths (80 percent) had used
(August 2010 to September 2010). • Amongst those who had downloaded
their smartphone for surfing the net.
Key findings from the survey showed: paid apps, one-in-ten had spent in
One-in-ten (ten percent) had read an
excess of £10.
eBook on their phone.

Introduction // Key findings // Accessing traditional media // Accessing new media //Traditional vs. New media
<< Previous
What content would you be prepared to pay for? // Introducing a ‘paywall’ // Impact of recession // 3D viewing

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
KPMG’s Media and Entertainment Barometer | 4

Tablets Newspapers, books and Music


• Two percent indicated they owned print magazines • The sum spent on music events and
a tablet. • 86 percent of consumers said they performances was notably higher
preferred to consume media offline than for previous waves of research.
• Amongst tablet owners, half (48
rather than online. The most popular
percent) had used the device for • Mean spend on downloaded music
reason was a preference to reading
surfing the net. dipped to £3.60 (W2: £4.26,
physical copies.
W1: £5.20).
• A quarter (25 percent) had used it for
• Amongst those who had engaged
watching TV/video clips and one-in-
in new media activities, the highest
fifteen (seven percent) had used it for
mean spend was on digital books,
online gambling.
with 22 percent of those spending
• Owners were twice as likely to have more than £5.
used their tablet for downloading free
• Over the past six months there
music (six percent) compared with
had been a small increase in the
paid music (three percent).
proportion reading digital books.
Paywalls & Subscriptions
3D Viewing
• Subscribers most commonly paid for
• The proportion who had watched a
music (23 percent), online gaming
3D film had increased significantly
(21 percent), business news/analysis
since wave 2 (W2: 27 percent, W3:
(19 percent), online newspapers/
34 percent), reflecting the number of
magazines (19 percent) and TV
films that have been released in this
(19 percent).
format over the past six months.
• Consumers who did not currently
• 15 percent indicated they may
pay for online content were asked
consider buying a 3D TV next time
whether they thought they would
they purchase a television set. This
become a paid subscriber over the
is unchanged since wave two,
coming 12 months. In total, nine
suggesting that the popularity of
percent indicated they would possibly
3D cinema is not translating into an
become a paid subscriber.
increased desire for 3D technology in
• Only two percent would be prepared the home.
to pay for unrestricted access to a
website they use regularly if a paywall
were introduced. 79 percent would
seek similar content elsewhere.

Accessing more media now? // Prefer accessing online or offline // Currently paying for online content?
Next >>
Smartphone // Smartphone manufacturer // Smartphone apps //Tablets //Tablet manufacturer

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
5 | KPMG’s Media and Entertainment Barometer

Accessing traditional media

Please indicate which if any of the following activities • In September 2010, 99 percent of
respondents indicated they had
you have done in the past month? (traditional media) engaged in one or more of the listed
traditional media activities during the
past month.
93%
Watched TV 94% • Since wave 1 (Sept 2009) there
(not online) 88%
has been a consistent wave-on-
79% wave decrease in the proportion
Listened to radio 79%
listening to CDs. This may be
82%
due to the increasing availability
79%
Read print newspaper 80%
of downloadable media and
81% streaming services.
66% • There has also been in a decrease in
Listened to CD 68%
the proportion playing a console/video
72%
game since wave 2 (March 2010).
72%
Read print magazine 70% • The proportion who have attended
70%
a sporting event fell back to wave
68% 1 (Sept 2010) levels. This reflects
Read book 68%
seasonal variation in sporting activity,
68%
with major spectator sports, Football
50%
and Rugby, in full swing in the weeks
Watched DVD/Blu-Ray 53%
50% leading up to the March survey.

Played console/ 30% • Women were more likely to have


34%
video game 34%
read a book or magazine during the
past month. Men were more likely to
27%
have played video games.
Visited cinema 27%
26%

19%
Music events/ 18%
performances 18%
Wave 3 (Sep 2010)
15% Wave 2 (Mar 2010)
Sporting events 18%
15% Wave 1 (Sep 2009)

Introduction // Key findings // Accessing traditional media // Accessing new media //Traditional vs. New media
<< Previous
What content would you be prepared to pay for? // Introducing a ‘paywall’ // Impact of recession // 3D viewing

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
KPMG’s Media and Entertainment Barometer | 6

Amongst those who had engaged in The proportion of newspaper readers Newspaper and magazine readers
traditional activities during the past who did not pay on these publications aged 18-34 were less likely to pay
month, the highest mean spend had increased consistently since wave for print media compared with the
was on attending music events and 1 (W1: 15 percent, W2: 21 percent, general population.
performances (£44.30) and sporting W3: 26 percent). A similar pattern
As before, respondents had spent
events (£32.70). These activities also was evident for magazines, with the
more time watching TV in the past
had the highest spend in waves 1 and proportion who had not paid for these
month (28 hours), than any of the other
2. The sum spent on music events and doubling over the course of the past
activities, followed by listening to the
performances was notably higher than 12 months (W1: 12 percent, W2: 19
radio and reading books (both 14 hours).
for previous waves (W1: £33.20, W2: percent, W3: 24 percent).
£30.20 , W3: £44.30).

Accessing more media now? // Prefer accessing online or offline // Currently paying for online content?
Next >>
Smartphone // Smartphone manufacturer // Smartphone apps //Tablets //Tablet manufacturer

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
7 | KPMG’s Media and Entertainment Barometer

Accessing new media

Please indicate which if any of the following activities • Four-fifths (78 percent) had engaged in
one or more of the listed new media
you have done in the past month? (new media) activities in the past month.
No significant increase on past waves.

49% • A decrease in use of online news/


Social network/ RSS feeds and online games was
50%
blogging sites
47% witnessed over the past 12 months.

32% • Over the past six months there


Online news/
36% had been a slight increase in the
RSS feeds
37% proportion reading digital books
(W2: 4 percent, W3: 6 percent),
24%
coinciding with the UK launch of the
Online games 27%
29% iPad and Kindle and a greater choice
of online bookstores.
22%
Used Video on
24%
demand for TV
19%

22%
Downloaded music 21%
22%

16%
Online magazines 17%
17%

15%
Streamed online 16%
TV programmes 14%

18%
Streamed music 16%
16%
Wave 3 (Sep 2010)
13%
Streamed radio 14% Wave 2 (Mar 2010)
15% Wave 1 (Sep 2009)

Introduction // Key findings // Accessing traditional media // Accessing new media //Traditional vs. New media
<< Previous
What content would you be prepared to pay for? // Introducing a ‘paywall’ // Impact of recession // 3D viewing

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
KPMG’s Media and Entertainment Barometer | 8

• As before, men were more • Amongst those who had engaged


likely to have participated in new in each of the listed new media
media activities than women activities, the highest mean spend
(81 percent, 75 percent). was on digital books (£5.30).
• Two-thirds (65 percent) of those • Mean spend on downloaded
aged 55+ had participated in music dipped to £3.60 (W2: £4.26,
these activities compared with W1: £5.20).
93 percent of 18-24s.
• Amongst those who had engaged
• One-in-five (19 percent) in each of the activities, social
respondents aged 55+ had played networking/blogging and playing
online games in the past month online games consumed the greatest
and 28 percent had used social amount of time (12 and 11 hours
networking/blogging sites. respectively) unchanged from wave 2.

Accessing more media now? // Prefer accessing online or offline // Currently paying for online content?
Next >>
Smartphone // Smartphone manufacturer // Smartphone apps //Tablets //Tablet manufacturer

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
9 | KPMG’s Media and Entertainment Barometer

Traditional vs. New Media:


some comparisons
As we might expect, fewer people had They were also far more likely to have
engaged in new media activities than listened to traditional than streamed
traditional (78 percent-v-99 percent). radio (79 percent, 13 percent) and
This gap has not narrowed over the read a print magazine than an online
past 12 months. publication (70 percent, 16 percent).
As per previous waves of research, Amongst those who had engaged
people were around six times as likely with each of the sources, mean spend
to have watched traditional TV as they over the past month tended to be
were to have streamed TV programmes considerably lower for new media.
(93 percent, 15 percent).

Introduction // Key findings // Accessing traditional media // Accessing new media //Traditional vs. New media
<< Previous
What content would you be prepared to pay for? // Introducing a ‘paywall’ // Impact of recession // 3D viewing

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
KPMG’s Media and Entertainment Barometer | 10

“Over the past year traditional media has held up well, and despite the ever growing
availability of online media, consumers still expect and consume both. This has led
to a mixed ecology, with people accessing content in the traditional way and online.
The popularity of consuming media in the traditional way remains very resilient.”
David Elms, KPMG

Consumers of new media continued to newspapers compared with online For example, consumers said that
be several times more likely to report news portals (26 percent, 92 percent). had not paid for these over the past
having not paid for these activities month compared with 19 percent and
The gap was narrower for books, with
than consumers of similar types of 12 percent in the second and first and
43 percent having not paid for print
traditional media. For example, around waves respectively. Newspapers: 26
books, compared with 54 percent for
a quarter (24 percent) of those who had percent, compared with 21 percent and
digital ones.
read print magazines said they had not 15 percent in the second and first waves.
paid for these compared with four-fifths Consumption of traditional media
Differences were less marked for
(80 percent) of online magazine readers. without paying has increased
new media.
A similar story was evident for print wave-on-wave.

Accessing more media now? // Prefer accessing online or offline // Currently paying for online content?
Next >>
Smartphone // Smartphone manufacturer // Smartphone apps //Tablets //Tablet manufacturer

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
11 | KPMG’s Media and Entertainment Barometer

Accessing more media now?

To what extent do you agree or disagree with the A majority of respondents agreed that
the ability to access media online
following statement: “Being able to access media (e.g. newspapers, music, video and
online (e.g. newspapers, music, video, radio) means radio) meant they now accessed more
media than in the past: 60 percent
I now access more media than I did in the past” agreed that they accessed more,
while 19 percent disagreed.
Those aged 18-24 (84 percent)
Wave 1 (September 2009) were almost twice as likely to agree
compared with those aged 55+
19% 23% 58% (43 percent). Sixteen percent of
the 55+ group strongly disagreed.
Wave 2 (March 2009) Respondents in Wales were most likely
to agree they were now accessing
14% 24% 63% more media (71 percent).
Men were significantly more likely
Wave 3 ( September 2010) to agree compared with their female
counterparts (66 percent, 55 percent).
16% 23% 61%

Total disagree Neither agree nor disagree Total agree

Introduction // Key findings // Accessing traditional media // Accessing new media //Traditional vs. New media
<< Previous
What content would you be prepared to pay for? // Introducing a ‘paywall’ // Impact of recession // 3D viewing

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
KPMG’s Media and Entertainment Barometer | 12

Accessing more media now? // Prefer accessing online or offline // Currently paying for online content?
Next >>
Smartphone // Smartphone manufacturer // Smartphone apps //Tablets //Tablet manufacturer

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
13 | KPMG’s Media and Entertainment Barometer

Prefer accessing online or offline?

Despite the majority indicating they compared with 46 percent who said reasons related to a preference for
now access more online content than offline and 32 percent who reported reading physical copies or watching
in the past, results continue to point to it didn’t make a difference. 12 months on a television set (rather than a
a preference for offline media. ago, 24 percent said they preferred computer screen). Technical and
online media. security concerns continued to
The past 12 months has not witnessed
trouble a minority.
an increased preference for online Those who preferred offline access
media. In wave 3, 23 percent said were asked to indicate why. Consistent
they favoured online media access, with previous waves, the most popular

You said that you prefer to consume media OFFLINE.


Which, if any, of the reasons below apply?

89%
86% 85%
79% 80%
76%

60%
57% 56%

19%
14% 14% 14% 13% 13%
8% 8%
5%

I would rather read I would rather watch I prefer the I don't want to make I don't have a fast I don't trust
something physical TV and films on my experience of payments online due enough internet the quality of
than on screen TV than computer traditional media to security concerns connection to make online media
online media an
enjoyable experience

Wave 1 (Sep 2009) Wave 2 (Mar 2010) Wave 3 (Sep 2010)

Introduction // Key findings // Accessing traditional media // Accessing new media //Traditional vs. New media
<< Previous
What content would you be prepared to pay for? // Introducing a ‘paywall’ // Impact of recession // 3D viewing

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
KPMG’s Media and Entertainment Barometer | 14

Those who preferred online access This points to the importance of


were also questioned on their reasons convenience for consumers of
for this preference. online media.
Consistent with previous waves, the
most important explanation was the
availability of content on demand.

You said that you prefer to consume media ONLINE.


Which, if any, of the reasons below apply?
93%
91%
89%

80%

73% 72% 73%

65% 64% 63%


63% 62% 61%
56%
54%

33%
31%
28%

16%
14% 14%

I can access I can access the I spend a lot of It is easier to find There is a It is more I can access
content when content I want time on my content that I'm wider choice of environmentally the content I want
I want for free online computer so it's interested in content online friendly at a better price
more convenient

Wave 1 (Sep 2009) Wave 2 (Mar 2010) Wave 3 (Sep 2010)

Accessing more media now? // Prefer accessing online or offline // Currently paying for online content?
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Smartphone // Smartphone manufacturer // Smartphone apps //Tablets //Tablet manufacturer

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
15 | KPMG’s Media and Entertainment Barometer

Will consumers, increasingly used to paying for premium content on their mobiles
and tablets, become more willing to pay for online content on their desktops?

Currently paying for


online content?
Thirteen percent currently pay for online Subscribers most commonly paid In total, nine percent indicated
content.This represents a marginal for music (23 percent), online they would possibly become a paid
increase on the first two waves (W3: 13 gaming (21 percent), business subscriber .
percent, W2: 10 percent, W1:11 percent). news/analysis (19 percent), online
This has remained static over the past
newspapers/magazines (19 percent)
Eight percent pay for content when 12 months, suggesting appetite for paid
and TV (19 percent).
required and five percent subscribe. online subscriptions is not increasing.
People who did not currently pay for
The younger generation were far more
online content were asked whether
likely to pay for content than their older
they thought they would become a paid
counterparts: 18-24 yrs: 14 percent; 25-
subscriber over the coming 12 months.
34 yrs: 13 percent; 55+ yrs: 4 percent.

Introduction // Key findings // Accessing traditional media // Accessing new media //Traditional vs. New media
<< Previous
What content would you be prepared to pay for? // Introducing a ‘paywall’ // Impact of recession // 3D viewing

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
KPMG’s Media and Entertainment Barometer | 16

What content would you be


prepared to pay for?
Those who were not paying for online What content would you be prepared to pay for?
content but thought they would possibly/
definitely become a paid subscriber
59%
over the coming 12 months were asked
Films 45%
what they would be prepared to pay for. 52%
Consistent with previous waves, films and 50%
music were most commonly identified as Music 55%
content they would potentially pay for. 50%

33%
Respondents were more likely to pay for Online newspapers/ 31%
films than they were six months ago. magazines 24%

27%
TV 30%
28%

15%
Specialist 19%
blogs/advice 8%

13%
Online gaming 12%
18%

12%
Business 21%
news/analysis 8%

5%
Online dating 3%
6%

Exclusive social 3%
3%
networking sites 5%

3%
Comparison sites 8%
5%
Wave 3 (Sep 2010)
2% Wave 2 (Mar 2010)
GPS sites 4%
4% Wave 1 (Sep 2009)

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Smartphone // Smartphone manufacturer // Smartphone apps //Tablets //Tablet manufacturer
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© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
17 | KPMG’s Media and Entertainment Barometer

Introducing a ‘paywall’

If a website or mobile content site you frequently visit Only one-in-fifty (two percent) would
be prepared to pay for unrestricted
began charging for access to content, would you be access to a website they currently use
willing to pay to gain access to the content? regularly if a paywall were introduced.
The vast majority (79 percent) would
seek similar content elsewhere.
79%

11%
2% 8%

Yes, for access Yes, but only for No, would look Don't know
to the content specific sections for the same
of the entire site or similar
content elsewhere

Introduction // Key findings // Accessing traditional media // Accessing new media //Traditional vs. New media
<< Previous
What content would you be prepared to pay for? // Introducing a ‘paywall’ // Impact of recession // 3D viewing

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
KPMG’s Media and Entertainment Barometer | 18

Impact of recession:
comparing prices
The majority (58 percent) agreed that This figure is lower than that collected
they now spent longer comparing in the earlier waves (W3: 68 percent,
prices than pre-recession. W2: 78 percent, W1: 78 percent).
About two-thirds of this group
(68 percent) thought their new
thriftiness would continue after
the recession ends.

Accessing more media now? // Prefer accessing online or offline // Currently paying for online content?
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Smartphone // Smartphone manufacturer // Smartphone apps //Tablets //Tablet manufacturer

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
19 | KPMG’s Media and Entertainment Barometer

3D viewing

Where at all have you viewed 3D media over Over a third (34 percent) had viewed a
3D film at the cinema during the past
the past 12 months? 12 months. This rose to 63 percent
amongst the 18-24s and 50 percent
69% amongst the 25-34s. By contrast, only
28 percent of 45-54s and 14 percent of
62% those aged 55+ had viewed
3D films at the cinema.
The proportion who had watched a
3D film had increased significantly
since wave 2 (W2: 27 percent, W3:
34 percent), reflecting the number of
34%
34% films that have been released in this
format over the past six months.
27%
Four percent had watched a 3D film on
TV. This was broadly in line with
wave 2 (five percent).

5% 4%

At the cinema On Television Neither

Wave 2 (Mar 2010) Wave 3 (Sep 2010)

Introduction // Key findings // Accessing traditional media // Accessing new media //Traditional vs. New media
<< Previous
What content would you be prepared to pay for? // Introducing a ‘paywall’ // Impact of recession // 3D viewing

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
KPMG’s Media and Entertainment Barometer | 20

Only one-in-seven (15 percent) You said you were unlikely to purchase a 3D television
indicated they were likely may
consider buying 3D TV next time next time you buy a TV. Why is this?
they purchase a television set. This is
unchanged since wave two, suggesting
63%
that the popularity of 3D cinema is not Don't see the need
64%
translating into an increased desire
for 3D technology in the home.
Amongst those who said they were Likely to be 59%

unlikely to buy a 3D TV, two-thirds too expensive 54%

(64 percent) indicated they did not see


the need, while 54 percent expected
I don't like the idea of 49%
it to be too expensive.
wearing the 3D glasses 51%
Half thought 3D TV was a gimmick
(50 percent) or didn’t like the idea of
the 3D glasses (51 percent). It's a gimmick
41%
50%
The proportion saying they would
watch 3D TV if it were available fell
to 22 percent (from 25 percent in wave Lack of programmes 33%
2). Popularity was highest amongst available 29%
men and young people.

Will wait for improved 19%


version to be launched 18%

12%
Quality likely to be poor
10%

4% Wave 2 (Mar 2010)


None of these
3% Wave 3 (Sep 2010)

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Smartphone // Smartphone manufacturer // Smartphone apps //Tablets //Tablet manufacturer

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
21 | KPMG’s Media and Entertainment Barometer

Smartphone use

More than a quarter (27 percent) owned a smartphone. Thinking about your MAIN phone,
This rose to 44 percent and 43 percent amongst the which of the following do you have?
18-24s and 25-34s respectively.
Ownership was highest in London (33 percent) and 3% 2%
the South East (32 percent), and lowest in the South 3%
West (16 percent).
27%
Four-fifths (80 percent) had used their smartphone for
surfing the net. One-in-ten (9 percent) had read an
eBook on their phone.

65%

Standard mobile phone


Other
Don’t have a mobile phone
Smartphone
Don’t know

Introduction // Key findings // Accessing traditional media // Accessing new media //Traditional vs. New media
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What content would you be prepared to pay for? // Introducing a ‘paywall’ // Impact of recession // 3D viewing

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
KPMG’s Media and Entertainment Barometer | 22

For which, if any, of Sending text messages 96%

the following activities Taking photos/Emailing photos 86%

have you used your Surfing the internet 80%

smartphone? Reading emails 76%

Social media 62%

Email/instant messaging 58%

Listening to music 53%

Playing/downloading free games 51%

Reading documents 43%

Watching TV/video clips 28%

Listening to the radio 28%

Playing/downloading paid for media 26%

Purchasing items 21%

Reading newspapers 14%

Downloading paid for music 14%

Downloading free music 11%

Reading eBooks 9%

Editing documents 9%

Ordering takeaway 8%

Online gambling 3%

Accessing more media now? // Prefer accessing online or offline // Currently paying for online content?
Next >>
Smartphone // Smartphone manufacturer // Smartphone apps //Tablets //Tablet manufacturer

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
23 | KPMG’s Media and Entertainment Barometer

Smartphone manufacturer

Please think about your MAIN smartphone. Which, if any,


of the following manufacturers produced this smartphone?

Apple (29 percent), BlackBerry 29%


(21 percent) and Nokia (16 percent)
dominate the market, accounting
for a combined two-thirds
(66 percent) of handsets owned
by respondents.
21%

16%

10%

8%

6% 6%

1%

Apple Blackberry Nokia HTC Samsung Sony LG Motorola


Ericsson

Introduction // Key findings // Accessing traditional media // Accessing new media //Traditional vs. New media
<< Previous
What content would you be prepared to pay for? // Introducing a ‘paywall’ // Impact of recession // 3D viewing

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
KPMG’s Media and Entertainment Barometer | 24

Smartphone apps

In total, three quarters (74 percent) of smartphone users had downloaded apps during the past 12
months. Over a third (35 percent) had downloaded paid apps during this period. Amongst those who had
downloaded paid apps, one-in-ten had spent in excess of £10.

Have you downloaded any apps Approximately how much would you say
(sometimes called “applications”) you spent on apps IN THE PAST MONTH?
to your smartphone over the past
12 months? £20.10 plus 3%

2% 2%
£10.01 to £20 7%
24%

£8.01 to £10 11%


39%

£4.01 to £8 26%

£2.01 to £4 14%

33%
£ 0.5 to £4 25%

Paid for apps only


£0 14%
Both paid for and free apps
Not sure
Free apps only
Not downloaded any

Accessing more media now? // Prefer accessing online or offline // Currently paying for online content?
Next >>
Smartphone // Smartphone manufacturer // Smartphone apps //Tablets //Tablet manufacturer

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
25 | KPMG’s Media and Entertainment Barometer

Tablets

Two percent) indicated they Surfing the internet 48%


owned a tablet.
Amongst tablet owners, half Reading emails 41%

(48 percent) had used the device


Reading documents 36%
for surfing the net.
Playing/downloading 35%
A quarter (25 percent) had used it free games
for watching TV/video clips and
Listening to music 34%
one-in-fifteen (7 percent) had used
it for online gambling. Email/instant messaging 31%

Owners were twice as likely to


Social media 28%
have used their tablet for downloading
free music (6 percent) compared with Playing/downloading 27%
free music (3 percent). paid for games
Watching TV/video clips 25%

Editing documents 24%

Reading eBooks 22%

Purchasing items 19%

Reading newspapers 16%

Listening to the radio 15%

Online gambling 7%

Downloading free music 6%

Downloading paid for music 3%

Introduction // Key findings // Accessing traditional media // Accessing new media //Traditional vs. New media
<< Previous
What content would you be prepared to pay for? // Introducing a ‘paywall’ // Impact of recession // 3D viewing

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
KPMG’s Media and Entertainment Barometer | 26

Tablet manufacturer

Apple dominate the tablet market, with 45 percent of tablet


owners indicating they owned an iPad.
Note: base size of 46 respondents is too small for
these percentages to be quote in PR.
3%
9%

9%

45%

11%

11%

12%

Don’t know
Hewlett Packard (HP)
Other
Samsung
Dell
Archos
Apple

Accessing more media now? // Prefer accessing online or offline // Currently paying for online content?
Next >>
Smartphone // Smartphone manufacturer // Smartphone apps //Tablets //Tablet manufacturer

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
Contact us

David Elms
Partner, Head of Media
T: +44 (0)20 7311 8568
E: david.elms@kpmg.co.uk

Guy Di Piazza
Media Analyst, Transaction Services
T: +44 20 7694 1659
E: guy.dipiazza@kpmg.co.uk

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