Consumer media spend down but consumption up, finds KPMG survey

Consumer are spending less on traditional and digital media than six months ago, but consuming more, according to the latest KPMG Media and Entertainment Barometer, published today.

 

The six-monthly Barometer, based on a KPMG commissioned YouGov survey of online and offline media consumption of over 1000 UK consumers, highlights the scale of the challenge the media industry faces in halting declining revenues. 

Average spend per UK consumer on traditional media fell from £9.19 in September 2009 to £7.46 in March 2010 and spend on digital media also fell (from £1.99 to £0.98.) 

However, time spent consuming media has increased.  The average monthly consumption of traditional media rose marginally from 11 hrs 40 minutes in September 09, to 12 hours 13 minutes.  Hours spent consuming digital media increased even more, from 6 hours 14 minutes to 7 hours 28 minutes. 

The survey indicated that spend has reduced across several parts of the media industry for example:

  • 21 percent of newspaper readers paid nothing for these over the past month, compared with 15 percent six months ago.  In London this almost doubled - 23 percent to 41 percent - highlighting the impact of the Evening Standard move to a 'free' model
  • The situation is similar for print magazines with 19 percent of consumers saying they had paid nothing over the past month compared with 12 percent six months ago
  • Of concern to those aiming to introduce pay walls for online newspapers, is the increasing majority of respondents who said they paid nothing for accessing online news portals - up from 84 percent in September 2009 to 88 percent in March 2010
  • Spend on video games was significantly down, possibly reflecting the release of popular titles last summer such as the Batman game Arkham Asylum and others

David Elms, Head of Media, KPMG UK commented:  

"The findings of the second KPMG Media and Entertainment Barometer illustrate the problem faced by the media sector in curbing the structural decline in revenues. However, online users are increasing. Online subscription models remain in their infancy and once more developed should provide a platform for significantly higher online revenues. 

 "There is considerable focus on driving digital media revenues. Respondents indicated they do access more media because of online availability, but the tide has not yet turned as the majority of us still prefer consuming media offline.   Only a quarter favoured online media access compared with 43 percent who said offline and a third said it didn't make a difference.  Creating integrated business models which make the most of both traditional and digital business models is therefore key for the sector.” 

Other key findings from the report include:

  • Only 10 percent of non-subscribers anticipate possibly becoming paid subscribers to media products over the coming 12 months.
  • The use of social networking / blogging sites remains the most popular online activity - 50 percent of all respondents partake, up from 47  percent on the last Barometer.  Interestingly the increase among 45-54 year olds was the greatest, increasing from 37 percent to 45 percent.
  • The survey found that those aged 16-24 are more likely to pay for online content than their older counterparts
  • People who said they would definitely or possibly become a paid subscriber over the coming 12 months were most commonly prepared to pay for music (55 percent) and film (45 percent). They were less prepared to pay for TV (30 percent) and online newspapers/magazines (31 percent)
  • The survey found a noticeable increase in the use of Video On Demand (VOD) services for TV programmes, up from 19 percent of all respondents in September 2009 to 24 percent in March 2010
  • More than a quarter (27 percent) of respondents had viewed a 3D film at the cinema during the past 12 months. Despite fairly high levels of 3D viewing, relatively few indicated they were likely to buy a 3D TV next time they purchase a television set (15 percent)
  • Digital book consumption remained stable, but low, with 4 percent of respondents having read one in the last month.

David Elms concludes: "It is early days with new technologies like VOD, 3DTV and e-readers, but they are examples of the innovations and platforms which can help drive new areas of revenue of the media sector in a digital age.”

 

-Ends-

 

Notes to editors:
The research was conducted with members of YouGov's online panel between 11th and 14th September 2009 (wave 1) and 15th and 18th March 2010 (wave 2). Surveys sampled people aged 16 years plus in the United Kingdom. Data was subsequently weighted to this profile. In total there were 1037 completes for wave 1 and 1034 for wave 2.


For further information please contact:

Claire le Masurier, PR Manager, KPMG,  020 7694 8639 or 07795 074 360
Claire.lemasurier@kpmg.co.uk 

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff.  The UK firm recorded a turnover of £1.6 billion in the year ended September 2009. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 144 countries and have more than 137,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.



 

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