MediAvataar's News Desk
Kantar launches Entertainment On Demand service: most detailed view of US streaming service consumption
Spotify secured 29% of new audio streaming subscriptions in the 3 months to October 2019.
Pandora is the USA’s clear #2 service with 18% share followed by Amazon Music with 12% and Apple Music on 11% share.
61% of subscriptions in the quarter were first-time subscribers, 20% were second or more subscriptions
11% of subscriptions in the quarter were ‘switcher’ subscriptions where an existing subscription was cancelled to fund the new subscription – far ahead of 4% switching seen in video streaming market.
Spotify lead amongst major players in customer advocacy with a Net Promoter Score (NPS) of +54. Unlike its video service, Amazon Music has the lowest NPS of the tier-1 services with an NPS of +28.
Netflix secured 23% of new Video on Demand subscriptions in the 3 months to October 2019, closely followed by Hulu with 20% share.
56% of new VoD subscriptions were ‘stacked’ 2nd or 3rd subscriptions,
30% were 1st time subscribers – of whom 31% chose Netflix as their first streaming experience.
Netflix is tied in first place with HBO Now for customer advocacy – a key stat for retention and growth.
Subscription fatigue hasn’t kicked in yet, with average consumers holding almost 4 video subscriptions and less than two audio subscriptions.
Binge watching is a mainstream viewing habit.
These are some of the initial findings from Kantar’s new Entertainment On Demand service launching today in the USA. Entertainment On Demand is the newest offering from Kantar. The service is designed to help the music industry and investors understand the full consumer journey for digital video and music subscription services, and is based on a longitudinal panel of 20,000 consumers and boosted by 10,000 consumer interviews each quarter, including at least 2,500 new subscriber interviews.
Kantar Entertainment On Demand is delivered by the same team that provides the world’s leading mobile phone manufacturers with global mobile phone purchasing and usage trends. Entertainment On Demand is the only subscription service providing both quarterly installed base and new subscription market share alongside deep analysis on purchase motivations, customer experience, and diagnostics on ‘at-risk subscribers’ as well as guidance on acquisition and retention strategies.
Entertainment On Demand will provide fast, sophisticated and accurate research into behaviours like purchase triggers, post-purchase usage, loyalty and the customer experience, providing clients with a deep understanding of the reasons behind consumer subscription choice. Organisations will be able to use the service to help maximise their subscription sales, increase customer retention rates and refine their marketing strategies. Initially launching in the US in March 2020, Kantar Entertainment On Demand will also be available in the UK, Germany, Australia and Japan in the second half of the year.
Additional findings from the first quarter’s audio subscription behaviours in the U.S. reveal:
Across the industry the service website is the most influential pre-purchase touchpoint, followed by advice from friends and family – emphasising the importance of subscriber advocacy in future growth.
For Spotify, Podcast variety and ease of creating personal playlists are significant competitive advantages versus their competitors. Pandora’s discovery algorithm is hotter than any other service.
Amazon Music leads in value for money perception – but lags in artist variety.
Amazon Music drives significantly higher usage through Virtual Assistants than Spotify.
Apple Music has a strong reputation for streaming sound quality.
Additional findings from the first quarter’s video subscription behaviours in the U.S. reveal:
Amazon Video ranked third in new subscriptions followed by HBO in a distant 4th with 6% share of new subscriptions.
Netflix is king of the ‘gateway subscription’ with 31% share of first-time subscribers. 43% of new Netflix subscribers were signing up to their first video subscription service. Followed by HBO Now, for whom 32% of new subscriptions were first-time subscribers.
Hulu leads the market in ‘Stacked Subscriptions with 67% of new Hulu subscribers already subscribing to another service.
HBO Now and Netflix are tied for customer advocacy levels at a very impressive NPS of +63. Amazon Prime Video and Hulu are 10 points lower.
Hulu leads on ‘binge watching’ with 86% of their subscribers identifying it as important, followed closely by HBO Now.
Subscription Fatigue is not yet a major phenomenon in the industry. Overall 4% of new subscriptions were accompanied by the cancellation of another subscription. 6% of subscribers picking up Amazon Prime said they had simultaneously cancelled another service. There is already a significant groundswell – with 52 already saying there are too many subscription services.
With a net satisfaction of just +8% in ‘Value for Money’ – significantly lagging other subscription services - HBO Now may face future challenges in subscriber retention despite its overall strength in customer satisfaction.
Amazon Prime leads the pack in net satisfaction with the variety of TV series and Films while HBO has a marginal lead over Netflix on satisfaction related to original content.
Free trials and new smart TV purchases are the primary trigger for new subscriptions.
Netflix is winning the interface war, leading in ease of being able to pick up films/tv where left off, search functionality and suggestions of what to watch.
Dominic Sunnebo, Senior Vice President at Kantar, Worldpanel Division, comments “As we observed in our 2020 Media predictions, the streaming wars are heating up. Entertainment On-Demand provides subscription services and investors in the media industry with a new level of insight in to the motivations and habits of subscription service users. At Kantar we are focused on helping providers grow their subscriber base by driving new customer acquisition and improving customer retention by fine tuning the customer experience. Understanding key drivers behind digital behavioural patterns is vital for clients to understand what digitally focussed consumers want, think and do. He continues, “From our US research we can see that with the explosion in the number of digital subscription options available, the customer journey for different digital services is increasingly differentiated.”
Read Cundiff, North American CEO at Kantar, added “Kantar is the industry standard for understanding and tracking global Smartphone behavior and is the currency for the TV viewing habits in more than 60 countries around the world, as well as being the leading global source of ad spend. This new service expands our expertise in to the subscription market, and will help, major players, market entrants and investors understand the ‘why’ behind the ‘buy’ decision subscribers are making. The launch of this service reflects the rapid expansion in the digital subscription market as well as the changing needs of our existing clients who are expanding from hardware further into service provision.”
Marketing Leaders Must Develop Contingency Plans to Address Changing Customer Needs and Disruptions to the Workplace, Events and Tactics
Chief marketing officers (CMOs) and marketing leaders face an uncertain and rapidly evolving situation as a result of the coronavirus, and they must take an aggressively proactive approach to preparing their organization for disruption, according to Gartner, Inc.
“CMOs who wait for shifts in customer perceptions and needs, interruptions to supply chains and operations, or restrictions on mobility, travel and mass gatherings as a result of the COVID-19 crisis will only increase risks to their organizations and miss potential opportunities to build customer loyalty,” said Augie Ray, senior director analyst at Gartner for Marketers. “The key to managing risks and finding opportunities in such a period of significant uncertainty isn’t to predict a single likely outcome, but to recognize the range of possible scenarios.”
CMOs must take immediate action in monitoring customer channels for unexpected and quick changes to customer behavior and purchasing needs, and prepare for potential disruption to budgets, plans, campaigns and strategy in the months ahead.
Gartner recommends CMOs and marketing leaders take the following four actions to better prepare their organizations for disruptions related to the coronavirus COVID-19 crisis:
Build COVID-19 Contingency Plans
The key to mitigating risks associated with COVID-19 and identifying opportunities is rigorous scenario planning. Marketing leaders should create three scenarios, spanning from best- to worst-case, and consider the potential impacts to customers, the marketing team, and brand strategies and tactics.
While scenario-planning, it is prudent to coordinate with functional leaders across the organization in legal, finance, supply chain, IT and operations.
Monitor, Report and React to Shifts in Customer Behavior
Maintaining customer-centricity is of utmost importance during times of stress, greater needs and quickly changing expectations. Marketing leaders must not only monitor customer values and sentiment against a global backdrop; they should also improve real-time listening to detect shifting customer sentiment so they can react immediately.
In addition, as marketing leaders make decisions, they must carefully weigh short-term interests versus the value of sustaining and nurturing longer-term customer relationships during this time.
Prepare Marketing Teams for Interruptions and Challenges
The actions that marketing leaders take now will set the tone, internally and externally, for how the organization will weather the crisis. From an internal perspective, it’s important that marketing leaders anticipate how business disruptions will impact existing marketing operations and formulate strategies to protect and adjust budgets. In addition, CMOs must assess the needs of employees and prepare for alternate workplace operations.
Externally, marketing organizations should be ready for rapid changes toward at-home and digital delivery of products and services. Marketers must also consider changes that may need to be made to customer policies and procedures to stay attuned to the empathy that customers need and expect.
Review Marketing Plans for Potential Impact
Failure to anticipate potential change to campaigns, promotions, event marketing, sponsorships and other marketing strategies will leave marketing teams in defense mode throughout the duration of the crisis. Marketing leaders’ scenarios should consider how restrictions to events and travel will impact sponsorship activation plans or campaign messaging.
The coronavirus outbreak could also have significant impact on the timing of new products or campaign launches, and marketing organizations need to be agile in rescheduling or shifting messaging around these events. To avoid making reactive budget decisions, CMOs must begin to prioritize spending now and brace for rapid budget changes.
The recent incident in China has helped demonstrate the role that 5G can play in epidemic control. Here is how 5G can address the problem:
5G+ thermal imaging supports contagion monitoring- It can accurately monitor a moving object's temperatures in real-time without contact and, issue abnormal temperature alerts
5G enables continuous remote monitoring and diagnosis during patient transfer
5G remote platforms to improve consultation effectiveness and efficiency- The ideal technology to meet teleconferencing requirements to enable medical experts to treat patients without constraints on their physical location, and substantially improve the accuracy and efficiency of consultations
5G remote imaging diagnosis platforms enhance collaboration
5G SMART medical robots to help care for quarantined patient
5G Inspiring New Business Models-
As a result of 5G features such as high speed connection, high reliability and low latency, the healthcare system has benefited from improved response times, patient monitoring, data collection and analytics, remote collaboration and resource allocation. It also sets an example for digitalized, data driven and Cloud-based innovative major public emergency response platforms. The success of 5G applications in the public health domain could also inspire businesses in other sectors to leverage 5G's popularity and explore new applications of the technology. This demonstrates the new business models that industries can consider:
Epidemic monitoring platform- 5Gs s high-speed data transmission and advanced data analytics can consolidate large amounts of fragmented information and can improve monitoring accuracy and efficiency, and reduce heavy manual work
5G epidemic prevention patrol drone
5G smart robots
Smart City connected platform model
Natural disaster command centers- Natural disaster response can be equipped with 5G and Internet of Things (IoT) networks, enabling deep analysis of supply chains and providing real time information on front-line supply consumption, resource inventory levels, production capability, supply capability and logistics support decisions to balance supply and demand
Remote medical consultation- 5G networks can extend medical consultation into the community and even to individual households, enabling interaction between patients and doctors
A co-production with France’s Gedeon Programmes and the Archaeological Park of Pompeii, the special features exclusive access to the area’s first archeological dig in over 70 years
Production makes significant new discoveries and leverages new technologies and science to recreate the final hours of those that perished in the eruption’s aftermath
CuriosityStream, a leading independent global factual media company, announced today that in partnership with Gedeon Programmes and the Archaeological Park of Pompeii, it will televise the first large-scale excavation of Pompeii – once known as the crown jewel of the Roman Empire – in Pompeii: Disaster Street, premiering on March 19. Viewers follow archaeologists over 10 months as they uncover layer after layer of stone and ash, discovery after extraordinary discovery revealing evidence of daily life, works of art, mythical figures, and human remains buried for 2,000 years. With exclusive access granted to film the first excavations in Pompeii in 70 years, Pompeii: Disaster Street reveals the unexplored parts of the city and captures the major findings that emerged in front of CuriosityStream’s cameras.
After decades of neglect, and following water damage and collapse of walls, Italy and the EU funded the rescue archaeology operation in this new area of Pompeii, the famous historical site visited by 3 million tourists a year. With five generations worth of scientific advancement at their disposal, the archaeologists highlighted in the film are not simply attempting to restore mosaics and the city’s architecture, they are uncovering details about the people that inhabited the area at the time Vesuvius erupted.
To portray an accurate picture of what happened in Pompeii on that fateful day in 79 AD, CuriosityStream filmmakers took painstaking steps to recreate the society’s environment through a production that spanned two years.
The documentary’s set design is based on photogrammetry: a new technology made from mapping thousands of photos on a wireframe of laser data points creating a 3D image of streets and houses.
Exact architectural details were carved in polystyrene, including the roofs of the houses that eventually collapsed under the weight of pumice and a 250mph wave of hot ash and stone spewing from the volcano.
Rooms, street graffiti, and dynamic frescoes were made based on photographic copies from the excavation site, down to the textile moldings in each home.
“Archaeologists have uncovered entirely new areas and houses in ancient Pompeii; the first excavation there of this scale in 70 years, and with Pompeii: Disaster Street we are using the latest science and discoveries to tell the human story of what happened to the city’s residents,” said Clint Stinchcomb, President and CEO of CuriosityStream. “CuriosityStream is providing viewers exclusive access to the dig as well as new DNA science that is enhancing our understanding of history.”
Whether priceless mosaics and frescoes of a newly unearthed house, intact artifacts, or the remains of those captured in a solidified layer of ash for nearly 20 centuries, the findings contribute to a new interpretation of this infamous day in human history.
Regardless of whether you call it social distancing, quarantining or retreating to a safe place, heading home amid concerns about the novel coronavirus (COVID-19) is bound to affect media consumption habits.
In fact, staying put in our homes can lead to almost a 60% increase in the amount of content we watch in some cases and potentially more depending on the reasons. Considering that consumers around the globe are already leaning into the growing array of content options and channels, a 60% increase is significant.
Media consumption in the U.S. is already at historical highs. As reported in the most recent Nielsen Total Audience report, Americans are already spending just shy of 12 hours each day with media platforms. What’s more, three-fourths of U.S. consumers are broadening their media options with streaming subscriptions and TV-connected devices.
CONNECTING DURING CRISIS
During crisis events, however, be it snowstorms, hurricanes or a global pandemic, media users ramp up their media consumption to stay informed, kill time, find solace and stay in touch with others. They also stock their pantries with the necessary food and supplies to help get them through these trying times.
For insight into how consumers adjust during crisis situations, Nielsen analyzed total TV usage (TUT) data during two major crises in recent history: during Hurricane Harvey in 2017 and during a major snowstorm in January 2016. Not surprisingly, TUT levels increased significantly during both occasions.
In August 2017, Hurricane Harvey hit Houston, Texas. During the impacted period, a Nielsen analysis of that market found a 56% increase of TUT use compared with the preceding period and 40% higher than the period following the storm.
Similarly, over the weekend of Jan 23, 2016, a severe snowstorm dropped more than two feet of snow in the New York area, grinding activity in the market to a near halt. Comparing the Saturday of the snow event to the prior Saturday in the New York market, TUT usage was 45% higher. That same Saturday was also 49% higher than the Saturday following the blizzard.
So what were consumers watching as they stayed inside? We found that consumers gravitated to feature films, news and general format programming. The analysis also found a 61% increase in streaming via the TV. Consumers stayed warm indoors binging content, watching movies and keeping up with news from the outside.
SOUTH KOREA AND ITALY: A SAMPLE OF VIEWING DURING COVID-19
An analysis covering the global regions that have been impacted by COVID-19 found similar behaviors. In South Korea, for example, there was an increase in television viewing in the weeks after the first reportings of COVID-19 in early February. Comparing persons TV usage levels from the second week of February to the fourth week when there was a surge in the virus, the analysis noted a 17% increase in TV viewing—an increase of approximately 1.2 million viewers. During that same interval in 2019, it was just 1%.
And in Italy it was reported by the Italian Joint Industry Committee, Auditel that during the last week of February, compared to the previous week, there was a 6.5% increase in TV viewing and almost 12% more in the Lombardy region of the country, which was, subsequently, the hardest hit area so far. The increase has been driven by both news consumption as well as a consumer move to stay indoors.
WORKING VIRTUAL: REMOTE COMMUTING ALSO DRIVES A MEDIA INCREASE
While technology has fragmented the media landscape, it also has driven many companies to encourage remote commuting when possible. In many cases this has cut down overhead office costs, allowed for flexible work schedules, drawn from a more tech-savvy talent pool and, in the case of COVID-19 and unforeseen events alike, given companies in affected regions the ability to urge associates to work from home. In doing so, these companies have been at the forefront of social distancing, as urged by the CDC, while at the same time, given them an ability to keep operating without much disruption in production continuity.
Nielsen data suggest that employees that work remotely during a typical Monday through Friday work schedule connect over three hours more each week with traditional TV than non-remote workers, 25 hours and 2 minutes to 21 hours and 56 minutes respectively. In terms of devices, remote workers also spend a higher amount of time each week on their tablets—over four-and-a-half hours compared to the four hours for non-remote workers. Beyond viewing, remote workers also lean into listening. The reach of radio for remote workers compared to non-remote associates is nearly identical—both at just over 95%.
As COVID-19 continues to spread in the U.S. and more companies allow and enact policies for work to be done virtually, the viewing behavior for employees working in the confines of their own homes could drive even greater media usage.
THE SOCIAL CONVERSATION SURROUNDING COVID-19
Beyond TV and media connectivity, consumers all over the world are using social media to help drive the conversation as well as to stay connected, informed and opinionated. According to Nielsen’s Social Content Ratings data, a snapshot from January through February 2020 showed that at its peak the social conversation mentioning either “coronavirus” or “COVID-19,” there were 110,000 TV-related Tweets mentioning these two keywords.
As COVID-19 continues to spread, this serious health threat has already shaken world markets and, no doubt, will affect the media ecosystem. Understanding, and potentially hedging ad and media investments could help buoy any shrinking margins, build awareness for public health messages and maybe even get consumers’ worried minds off a threat through the power of entertainment.