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Deloitte’s ‘State of the Media Democracy’ Survey: TV Industry Embraces the Internet and Prospers

NEW YORK Feb. 1, 2011 State of the Media Democracy

The survey results indicate that live viewing on a home TV system continues to be the most common method among individuals for watching their favorite programming, and supporting the notion that traditional television advertising continues to be a viable model. In addition, 86 percent of Americans stated that TV advertising still has the most impact on their buying decisions.

State of the Media Democracy the United States

Deloitte’s survey indicates that the Internet, mobile and social media channels are enhancing the overall television viewer experience, driving people to watch first-run programs and live events during their initial broadcast. The survey also reveals that nearly three-quarters of American consumers are multitasking while watching TV. According to the research, 42 percent are online, 29 percent are talking on cellphones or mobile devices, and 26 percent are sending instant messages or text messages.

Perhaps even more importantly, 61 percent of U.S. consumers now maintain a social networking site, where constant streams of updates and discussion forums have made delaying awareness of live TV outcomes a near impossibility.

Phil Asmundson

"And, because television has embraced the Internet and social media so effectively, the traditional television advertising model is alive and well," Asmundson added.

Rise of the Smartphones

According to this year’s survey, 33 percent of American households now own a smartphone, up from 11 percent only three years ago, and 40 percent of U.S. consumers that do not own a smartphone are likely to purchase one in the near future. This marked rise in smartphone penetration in the U.S. market is rapidly changing consumer behavior with 56 percent of smartphone and laptop owners stating that they used their smartphones as a replacement for their laptop while away from home, jumping significantly from 41 percent in only three months.

"The growth in the smartphone market over the past few years is having a bigger impact on our lives than anyone might have imagined," said Asmundson. "As the costs for these types of devices and the wireless services that come with them continue to fall, consumers are starting to shift their behavior, taking advantage of anywhere, anytime connectivity and handheld performance levels comparable to those found on their PCs. We expect smartphone adoption rates to continue to climb as new network technologies such as 4G begin to make the user-experience even faster and more seamless."

Print Magazines Survive the Digital Tsunami

While 2010 witnessed another explosion of digital content and scores of new entertainment-friendly mobile devices coming to market, the adoption of certain digitally formatted content is taking longer to catch on than some would have expected. According to the survey, since 2007 a consistent 70 percent of Americans state that they enjoy reading printed magazines even though they know that they could find most of the same information online, and 55 percent have continued to subscribe to printed magazines.

Additionally, a majority of U.S. respondents state that an important feature of printed magazines is the advertising that helps them learn about new things for themselves and their family. Since 2007, a consistent 80 percent of Americans who have read their favorite magazine state that reading the printed copy is their favorite method.

James McDonnell

Is the Cloud the Answer to Digital Storage and Ubiquitous Access to Media Content?

Access to mobile devices and broadband have made the average consumer more connected to the Internet than ever and new online storage models have become real options for the mass market. According to the survey, most Americans own a device that allows them to easily connect to the Web – 85 percent of consumers own a desktop computer, 68 percent own a laptop/netbook computer and 41 percent access the Internet on their mobile phone.

The survey reveals that 51 percent of Americans have experienced a computer or hard drive failure that caused them to lose photos, movies, or other digital content. Moreover, the survey found that 32 percent of respondents stated a desire to have an online media storage service they could access from any device. In addition, 43 percent of respondents stated the desire to move content to any device and platform easily and effectively, indicating that cloud storage could provide an avenue for greater access to content and greater portability.

"The U.S. has significantly passed the tipping point where the majority of Americans now own a device such as a smartphone or have access to broadband that allows them to connect to the online world and quickly access information and entertainment," added Asmundson. "With the majority of consumers aware of the risk of permanently losing their content due to hard drive failures, new methods to both store and gain greater access to digital content are beginning to take shape. And, while the consumers may not fully understand cloud computing, their concern about storing digital content on their PCs is raising awareness and opening up new opportunities for cloud-based storage models aimed at the consumer."

About the Survey

State of the Media Democracy between September 10 and October 8, 2010 the United States State of the Media Democracy www.deloitte.com/us/mediademocracy

www.deloitte.com/us/about

Anisha Sharma

Virginia Chaves

Public Relations

Hill & Knowlton

Deloitte

+1 212 885 0530

+1 212 492 4427

[email protected]

[email protected]

SOURCE Deloitte

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