Product Type: Market Research Report
Published by: Mintel International Group Ltd.
Published: August 2006
Product Code: R560-2213Description The multichannel TV market continues to grow, with almost three-quarters of homes in the UK now digital. As the market reaches near-saturation, however, and digital switchover becomes imminent, competition between platforms is fiercer than ever. Innovation has now become the main driving force, with additional products and services continually being rolled out. Personal video recorders, high definition TV, video-on-demand, downloads and TV by mobile phone now represent the new battlegrounds.
All of this has had a profound affect on how people are viewing TV, however, with advertising, in particular, facing new challenges. With a highly-fragmented audience and increasingly high-tech means of ad-avoidance, broadcasters and advertisers are turning more and more to TV sponsorship and interactive solutions to reach their audiences. While they eagerly await the new technology and help to drive sales, both personally and through word-of-mouth recommendation, they can also act as guinea pigs for advertising and interactivity in an ever-evolving landscape.
This report looks at attitudes towards TV viewing, home entertainment products, advertising and interactive TV, as well as seeing how these fit in with other areas, namely the types of holiday taken and booking methods, sports participation and interest, ownership of financial products and participation in selected leisure activities. It examines the correlation between personal video recorder (PVR) ownership and advertising attitudes, as well as awareness of programme sponsorship. Finally, it also looks at the habits and characteristics and how they can be effectively targeted.Table of Contents - INTRODUCTION AND ABBREVIATIONS
- Definitions
- Consumer research
- Ciao
- Abbreviations
- PREMIER INSIGHT
- Ad innovation
- Consumers will not wait to watch
- Enlist the early adopters
- Pushing the right buttons
- SUMMARY OF KEY REPORT FINDINGS
- Competition in the multichannel market hots up
- Give advertising a break
- A word from our sponsors
- Greater interaction and even more products
- What’s on the box
- Channel hopping and channel rating
- It all comes down to money...
- ...age and gender
- I want that one
- Reaching out to the Early Adopters
- More competition leads to even more innovation
- MULTICHANNEL TV STATISTICS
- Figure 1: UK multichannel TV households, by platform, 2000-06
- Multichannel penetration
- Figure 2: UK multichannel TV penetration, by platform, 2001-06
- Market shares of multichannel TV
- Figure 3: UK multichannel TV share, by platform, 2001-06
- Market shares of digital TV
- Figure 4: UK digital TV share, by platform, 2001-06
- TV PRODUCT OWNERSHIP AND VIEWING HABITS
- Household income key for home visual entertainment
- Figure 5: Ownership of TV products, April 2006
- Figure 6: Ownership of TV products, by annual household income, April 2006
- Control of the remote
- Figure 7: TV viewing habits, April 2006
- Age and gender have the biggest impact on TV viewing
- Figure 8: TV programming watched on a regular basis on terrestrial channels, April 2006
- Laughter also the tops on multichannel
- Figure 9: TV programming watched on a regular basis on pay-TV channels and Freeview, April 2006
- RATING CHANNELS
- You can’t take that away from me
- Figure 10: Channels on satellite and cable TV that respondents would not be without, April 2006
- Dip in and out
- Figure 11: Channels on satellite and cable TV respondents watch from time to time, April 2006
- Not given a look
- Figure 12: Channels on satellite and cable TV respondents never watch, April 2006
- Upgrades and subscriptions
- Figure 13: Attitudes towards TV and technology, April 2006
- TV PRODUCT OWNERSHIP AND VIEWING HABITS - FULL DEMOGRAPHICS
- Figure 14: Ownership of TV products, by gender, age, employment status, socio-economic group, region,daily newspaper readership, Sunday newspaper readership, household income, age of own children,Internet access, Internet usage, TV reception, supermarkets regularly used, commercial TV viewing andmobile phone network, April 2006
- Figure 15: TV viewing habits, by gender, age, employment status, socio-economic group, region, dailynewspaper readership, Sunday newspaper readership, household income, age of own children, Internetaccess, Internet usage, TV reception, supermarkets regularly used, commercial TV viewing and mobilephone network, April 2006
- Figure 16: Most popular TV programming watched on a regular basis on terrestrial channels, by gender,age, socio-economic group, region, daily newspaper readership, Sunday newspaper readership, householdincome, age of own children, Internet access, Internet usage, TV reception, supermarkets regularly used,commercial TV viewing and mobile phone network, April 2006
- Figure 17: Other TV programming watched on a regular basis on terrestrial channels, by gender, age, socioeconomicgroup, region, daily newspaper readership, Sunday newspaper readership, household income,age of own children, Internet access, Internet usage, TV reception, supermarkets regularly used,commercial TV viewing and mobile phone network, April 2006
- Figure 18: Most popular TV programming watched on a regular basis on pay-TV channels and Freeview ,by gender, age, socio-economic group, region, daily newspaper readership, Sunday newspaper readership,household income, age of own children, Internet access, Internet usage, TV reception, supermarketsregularly used, commercial TV viewing and mobile phone network, April 2006
- Figure 19: Other TV programming watched on a regular basis on pay-TV channels and Freeview , bygender, age, socio-economic group, region, daily newspaper readership, Sunday newspaper readership,household income, age of own children, Internet access, Internet usage, TV reception, supermarketsregularly used, commercial TV viewing and mobile phone network, April 2006
- Figure 20: Channels on satellite and cable TV that respondents would not be without, watch from time totime or never watch (B), by gender, age, employment status, socio-economic group, region, dailynewspaper readership, Sunday newspaper readership, household income, age of own children, Internetaccess, Internet usage, TV reception, supermarkets regularly used, commercial TV viewing and mobilephone network April 2006
- Figure 21: Channels on satellite and cable TV that respondents would not be without, watch from time totime or never watch (C-D), by gender, age, socio-economic group, region, daily newspaper readership,Sunday newspaper readership, household income, age of own children, Internet access, Internet usage, TVreception, supermarkets regularly used, commercial TV viewing and mobile phone network April 2006
- Figure 22: Channels on satellite and cable TV that respondents would not be without, watch from time totime or never watch (E-H), by gender, age, socio-economic group, region, daily newspaper readership,Sunday newspaper readership, household income, age of own children, Internet access, Internet usage, TVreception, supermarkets regularly used, commercial TV viewing and mobile phone network April 2006
- Figure 23: Channels on satellite and cable TV that respondents would not be without, watch from time totime or never watch (I-M), by gender, age, socio-economic group, region, daily newspaper readership,Sunday newspaper readership, household income, age of own children, Internet access, Internet usage, TVreception, supermarkets regularly used, commercial TV viewing and mobile phone network April 2006
- Figure 24: Channels on satellite and cable TV that respondents would not be without, watch from time totime or never watch (S), by gender, age, socio-economic group, region, daily newspaper readership,Sunday newspaper readership, household income, age of own children, Internet access, Internet usage, TVreception, supermarkets regularly used, commercial TV viewing and mobile phone network April 2006
- Figure 25: Channels on satellite and cable TV that respondents would not be without, watch from time totime or never watch (T-U), by gender, age, socio-economic group, region, daily newspaper readership,Sunday newspaper readership, household income, age of own children, Internet access, Internet usage, TVreception, supermarkets regularly used, commercial TV viewing and mobile phone network April 2006
- Figure 26: Most popular attitudes towards TV and technology, by gender, age, socio-economic group,region, daily newspaper readership, Sunday newspaper readership, household income, age of ownchildren, Internet access, Internet usage, TV reception, supermarkets regularly used, commercial TVviewing and mobile phone network, April 2006
- Figure 27: Other attitudes towards TV and technology, by gender, age, employment status, socio-economicgroup, region, daily newspaper readership, Sunday newspaper readership, household income, age of ownchildren, Internet access, Internet usage, TV reception, supermarkets regularly used, commercial TVviewing and mobile phone network, April 2006
- TV ADVERTISING AND SPONSORSHIP
- THE AD BREAK
- Figure 28: Attitudes towards advertising, April 2006
- Are PVR owners ad skippers?
- Figure 29: Attitudes towards advertising, by personal video recorder owners, April 2006
- Programmes and their sponsors
- Figure 30: Matching sponsors to TV programmes - highest results, April 2006
- Figure 31: Matching sponsors to TV programmes - lowest results, April 2006
- So who got them right?
- Younger viewers pay more attention
- Sponsors makes Friends with women
- And how many did they get?
- Figure 32: Number of sponsors correctly identified, April 2006
- Coronation Street most highly recognised
- Figure 33: Repertoire of correct programme sponsors identified, by specific sponsorships matched, April2006
- Younger respondents scored the highest
- Attitudes affect recall
- Figure 34: Repertoire of correct programme sponsors, by those in agreement with attitudes towardsadvertising, April 2006
- TV ADVERTISING AND SPONSORSHIP - FULL DEMOGRAPHICS
- Figure 35: Most popular attitudes towards advertising, by gender, age, employment status, socio-economicgroup, region, daily newspaper readership, Sunday newspaper readership, household income, age of ownchildren, Internet access, Internet usage, TV reception, supermarkets regularly used, commercial TVviewing and mobile phone network, April 2006
- Figure 36: Further attitudes towards advertising, by gender, age, employment status, socio-economic group,region, daily newspaper readership, Sunday newspaper readership, household income, age of ownchildren, Internet access, Internet usage, TV reception, supermarkets regularly used, commercial TVviewing and mobile phone network, April 2006
- Figure 37: Least popular attitudes towards advertising, by gender, age, employment status, socio-economicgroup, region, daily newspaper readership, Sunday newspaper readership, household income, age of ownchildren, Internet access, Internet usage, TV reception, supermarkets regularly used, commercial TVviewing and mobile phone network, April 2006
- Figure 38: Matching sponsors to TV programmes - highest results, by gender, age, socio-economic group,region, household income, age of own children, Internet access, Internet usage, mobile phone network,daily newspaper readership, Sunday newspaper readership, TV reception, Commercial TV viewing andsupermarkets regularly used, April 2006
- Figure 39: Matching sponsors to TV programmes - lowest results, by gender, age, socio-economic group,region, household income, age of own children, Internet access, Internet usage, mobile phone network,daily newspaper readership, Sunday newspaper readership, TV reception, Commercial TV viewing andsupermarkets regularly used, April 2006
- Figure 40: Repertoire of correct programme sponsors, by gender, age, employment status, socio-economicgroup, region, daily newspaper readership, Sunday newspaper readership, household income, age of ownchildren, Internet access, Internet usage, TV reception, supermarkets regularly used, commercial TVviewing and mobile phone network, April 2006
- INTERACTIVE TV SERVICES AND PRODUCTS
- Most who use it love it...
- Figure 41: Most popular interactive TV services and products, April 2006
- ...but significant apathy remains
- Sky+ users report positive experiences...
- ...but viewers still reluctant to pay the price
- Other services proving less successful
- Figure 42: Less popular interactive TV services and new products, April 2006
- OPTIMUM TARGETING OF INTERACTIVE SERVICES AND PRODUCTS
- Figure 43: CHAID for interactive TV services and products, April 2006
- Digital satellite subscribers the most enthusiastic
- Women still tend to ignore newer technology
- REPERTOIRE OF ATTITUDES TOWARDS INTERACTIVE TV SERVICES AND PRODUCTS
- Figure 44: Repertoire of interactive TV services and products that respondents have used and loved, April2006
- Ordering VOD or PPV movies/sport
- Lack of frustration
- Figure 45: Repertoire of interactive TV services and new products that respondents have used and foundfrustrating, April 2006
- Ordering VOD or PPV movies/sport
- Potential new users
- Figure 46: Repertoire of interactive TV services and products that respondents like the idea of, April 2006
- Ordering VOD or PPV movies/sport
- At least they know about them
- Figure 47: Repertoire of interactive TV services and products that respondents know about but have neverused, April 2006
- Raising awareness
- Figure 48: Repertoire of interactive TV services and products that respondents have never heard of, April2006
- Ordering VOD or PPV movies/sport
- Negative attitudes towards advertising and interactive services go hand in hand
- Figure 49: Agreement with attitudes towards advertising, by those who have used and been frustrated withthe most interactive services/products and those who have used and loved the most interactiveservices/products, April 2006
- Interactive enthusiasts watch more TV
- Figure 50: TV programming watched on a regular basis on terrestrial channels, by those who have usedand been frustrated with the most interactive services/products and those who have used and loved themost interactive services/products, April 2006
- Figure 51: TV programming watched on a regular basis on pay-TV channels and Freeview, by those whohave used and been frustrated with the most interactive services/products and those who have used andloved the most interactive services/products, April 2006
- A sporting chance
- Figure 52: Sports regularly watched on TV, by those who have used and been frustrated with the mostinteractive services/products and those who have used and loved the most interactive services/products,April 2006
- Targeting interactive users with financial products
- Figure 53: Finance products owned by those who have used and been frustrated with the most interactiveservices/products and those who have used and loved the most interactive services/products, April 2006
- Leisure opportunities
- Figure 54: Regular leisure activities undertaken in free time, by those who have used and been frustratedwith the most interactive services/products and those who have used and loved the most interactiveservices/products, April 2006
- INTERACTIVE TV SERVICES AND NEW PRODUCTS - FULL DEMOGRAPHICS
- Figure 55: Repertoire of interactive TV services and products that respondents have used and loved or usedand found frustrating, by gender, age, employment status, socio-economic group, region, daily newspaperreadership, Sunday newspaper readership, household income, age of own children, Internet access,Internet usage, TV reception, supermarkets regularly used, commercial TV viewing and mobile phonenetwork, April 2006
- Figure 56: Repertoire of interactive TV services and products that respondents like the idea of or know buthave never used, by gender, age, employment status, socio-economic group, region, daily newspaperreadership, Sunday newspaper readership, household income, age of own children, Internet access,Internet usage, TV reception, supermarkets regularly used, commercial TV viewing and mobile phonenetwork, April 2006
- Figure 57: Repertoire of interactive TV services and products that respondents have never heard of, bygender, age, employment status, socio-economic group, region, daily newspaper readership, Sundaynewspaper readership, household income, age of own children, Internet access, Internet usage, TVreception, supermarkets regularly used, commercial TV viewing and mobile phone network, April 2006
- TYPE OF HOME VISUAL ENTERTAINMENT BUYER
- Most are prepared to wait
- Figure 58: Type of home visual entertainment buyer, April 2006
- Young men turned on by technology
- It all comes down to economics
- Early Adopters are keen Internet users
- TV enthusiasts buy equipment early
- TV PRODUCT OWNERSHIP AND VIEWING HABITS
- Early Adopters do indeed like gadgets...
- Figure 59: Type of home visual entertainment buyer, by ownership of TV products, April 2006
- ...and have squarer eyes
- Figure 60: Type of home visual entertainment buyer, by TV viewing habits, April 2006
- Where to reach them
- Figure 61: Type of home visual entertainment buyer, by TV programming watched on a regular basis onterrestrial channels, April 2006
- Figure 62: Type of home visual entertainment buyer, by TV programming watched on a regular basis onpay-TV channels and Freeview, April 2006
- Channel preference
- Figure 63: Type of home visual entertainment buyer, by channels on satellite and cable TV they would notbe without, April 2006
- Figure 64: Type of home visual entertainment buyer, channels on satellite and cable TV they watch fromtime to time, April 2006
- Figure 65: Type of home visual entertainment buyer, by channels on satellite and cable TV they neverwatch, April 2006
- Early Adopters have the most positive attitudes towards TV and technology
- Figure 66: Type of home visual entertainment buyer, by attitudes towards TV and Technology, April 2006
- Little difference when it comes to type of holiday
- Figure 67: Type of home visual entertainment buyer, by last holiday taken, April 2006
- Figure 68: Type of home visual entertainment buyer, by booking method of last holiday taken, April 2006
- Greater sports participation and interest from Early Adopters
- Figure 69: Type of home visual entertainment buyer, by sports participation, April 2006
- Figure 70: Type of home visual entertainment buyer, by sports regularly watched live, April 2006
- Figure 71: Type of home visual entertainment buyer, by sports regularly watched on TV, April 2006
- Figure 72: Type of home visual entertainment buyer, by sports they buy clothing/equipment for, April 2006
- No obvious link for finance
- Figure 73: Type of home visual entertainment buyer, by financial products, April 2006
- Replacers prefer low-tech leisure
- Figure 74: Type of home visual entertainment buyer, by regular leisure activities undertaken in free time,April 2006
- TV advertising and sponsorship
- Figure 75: Type of home visual entertainment buyer, by attitudes towards advertising, April 2006
- Is TV sponsorship the answer?
- Figure 76: Type of home visual entertainment buyer, by correct matching of sponsors with TV programmes,April 2006
- Interactive TV services and products
- Early Adopters are loving it all
- Figure 77: Type of home visual entertainment buyer, by most popular interactive TV services and newproducts, April 2006
- Figure 78: Type of home visual entertainment buyer, by less popular interactive TV services and newproducts, April 2006
- TYPE OF HOME VISUAL ENTERTAINMENT BUYER - FULL DEMOGRAPHICS
- Figure 79: Type of home visual entertainment buyer, by gender, age, socio-economic group, region,household income, age of own children, Internet access, Internet usage, mobile phone network, dailynewspaper readership, Sunday newspaper readership, TV reception, commercial TV viewing andsupermarkets regularly used, April 2006
- FUTURE IMPLICATIONS
- Digital switchover represents opportunity
- Increased innovation and use of alternative delivery methods
- New ways of advertising
- More interactivity
- APPENDIX - OTHER LEISURE PURSUITS AND FINANCIAL PRODUCTS
- HOLIDAYS AND LEISURE BREAKS
- Figure 80: Last holiday taken, April 2006
- BOOKING METHODS
- Figure 81: Booking method of last holiday taken, April 2006
- HOLIDAYS AND LEISURE BREAKS BY BOOKING METHODS
- Figure 82: Most popular last holidays taken, by booking method, April 2006
- Figure 83: Less popular last holidays taken, by booking method, April 2006
- SPORTS PARTICIPATION AND INTEREST
- Figure 84: Sports participation, April 2006
- Figure 85: Sports regularly watched live, April 2006
- Figure 86: Sports regularly watched on TV, April 2006
- Figure 87: Sports buy clothing/equipment for, April 2006
- FINANCIAL PRODUCTS
- Figure 88: Financial products owned, April 2006
- FREE TIME
- Figure 89: Regular leisure activities undertaken in free time, April 2006
- OTHER LEISURE PURSUITS AND FINANCIAL PRODUCTS - FULL DEMOGRAPHICS
- Figure 90: Most popular last holidays taken, by gender, age, employment status, socio-economic group,region, daily newspaper readership, Sunday newspaper readership, household income, age of ownchildren, Internet access, Internet usage, TV reception, supermarkets regularly used, commercial TVviewing and mobile phone network, April 2006
- Figure 91: Less popular last holidays taken, by gender, age, employment status, socio-economic group,region, daily newspaper readership, Sunday newspaper readership, household income, age of ownchildren, Internet access, Internet usage, TV reception, supermarkets regularly used, commercial TVviewing and mobile phone network, April 2006
- Figure 92: Most popular booking methods of last holiday taken, by gender, age, employment status, socioeconomicgroup, region, daily newspaper readership, Sunday newspaper readership, household income,age of own children, Internet access, Internet usage, TV reception, supermarkets regularly used,commercial TV viewing and mobile phone network, April 2006
- Figure 93: Less popular booking methods of last holiday taken, by gender, age, employment status, socioeconomicgroup, region, daily newspaper readership, Sunday newspaper readership, household income,age of own children, Internet access, Internet usage, TV reception, supermarkets regularly used,commercial TV viewing and mobile phone network, April 2006
- Figure 94: Participation in most popular sports, by gender, age, employment status, socio-economic group,region, daily newspaper readership, Sunday newspaper readership, household income, age of ownchildren, Internet access, Internet usage, TV reception, supermarkets regularly used, commercial TVviewing and mobile phone network, April 2006
- Figure 95: Participation in less popular sports, by gender, age, employment status, socio-economic group,region, daily newspaper readership, Sunday newspaper readership, household income, age of ownchildren, Internet access, Internet usage, TV reception, supermarkets regularly used, commercial TVviewing and mobile phone network, April 2006
- Figure 96: Most popular sports regularly watched live, by gender, age, employment status, socio-economicgroup, region, daily newspaper readership, Sunday newspaper readership, household income, age of ownchildren, Internet access, Internet usage, TV reception, supermarkets regularly used, commercial TVviewing and mobile phone network, April 2006
- Figure 97: Most popular sports regularly watched on TV, by gender, age, employment status, socioeconomicgroup, region, daily newspaper readership, Sunday newspaper readership, household income,age of own children, Internet access, Internet usage, TV reception, supermarkets regularly used,commercial TV viewing and mobile phone network, April 2006
- Figure 98: Less popular sports regularly watched on TV, by gender, age, employment status, socioeconomicgroup, region, daily newspaper readership, Sunday newspaper readership, household income,age of own children, Internet access, Internet usage, TV reception, supermarkets regularly used,commercial TV viewing and mobile phone network, April 2006
- Figure 99: Most popular sports buy clothing/equipment for, by gender, age, employment status, socioeconomicgroup, region, daily newspaper readership, Sunday newspaper readership, household income,age of own children, Internet access, Internet usage, TV reception, supermarkets regularly used,commercial TV viewing and mobile phone network, April 2006
- Figure 100: Most popular financial products owned, by gender, age, employment status, socio-economicgroup, region, daily newspaper readership, Sunday newspaper readership, household income, age of ownchildren, Internet access, Internet usage, TV reception, supermarkets regularly used, commercial TVviewing and mobile phone network, April 2006
- Figure 101: Less popular financial products owned, by gender, age, employment status, socio-economicgroup, region, daily newspaper readership, Sunday newspaper readership, household income, age of ownchildren, Internet access, Internet usage, TV reception, supermarkets regularly used, commercial TVviewing and mobile phone network, April 2006
- Figure 102: Most popular regular leisure activities undertaken in free time, by gender, age, employmentstatus, socio-economic group, region, daily newspaper readership, Sunday newspaper readership,household income, age of own children, Internet access, Internet usage, TV reception, supermarketsregularly used, commercial TV viewing and mobile phone network, April 2006
- Figure 103: Less popular regular leisure activities undertaken in free time, by gender, age, employmentstatus, socio-economic group, region, daily newspaper readership, Sunday newspaper readership,household income, age of own children, Internet access, Internet usage, TV reception, supermarketsregularly used, commercial TV viewing and mobile phone network, April 2006
- APPENDIX: RESEARCH METHODOLOGY
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