TV: We're Still Watching

If you've come across news coverage of the media industry of late, you can be forgiven for believing that audiences are too consumed by their iPhones and the Internet to watch television. These days, suggestions that "TV is on the bubble" might lead you to think consumers are ditching their plasma screens for new platforms. There's just one problem with this — it's wrong. The fact is consumers are watching more television than ever before.

The video experience, however, is widening. Today, for example, more than 130 million U.S. consumers watch video online — up 13% year-over-year — while more than 13 million watch video on their cell phones. The American appetite for video on emerging platforms, it seems, is insatiable.

But such growth is not at the cost of conventional television viewing. Even as consumers increasingly turn to their PCs and cell phones for entertainment, they continue to spend more and more time with traditional TV — 153 hours per month, as of the first quarter of this year.

So if television viewing is up, why all the doom and gloom surrounding the medium?

One reason may be that industry insiders in New York and Los Angeles instinctively believe that typical media consumers behave just as they do.

I recently observed an example of such a misperception first-hand amid a group of media leaders at an industry breakfast discussion. There, a room full of decision makers from print, online and TV, along with private equity and advertising executives, were surveyed about their own video consumption. Among these media professionals, the mean self-reported time spent watching television was only about a third as much as the U.S. average. On the other hand, their viewing of online and mobile video, was considerably higher than average. It's not surprising then, given that their personal media habits vary from the norm, that they were a ways off in their estimates of typical consumer usage.

The point is not that media executives are out of touch with consumers. For the most part they are not; and this small and unscientific survey was insufficient to prove otherwise. Instead, it is the fact that a focus on new and emerging media trends, and the challenges of monetizing them, may skew perceptions of what is commonplace among typical media consumers. It is in this echo chamber that the "decline of television" takes on another life.

Another misconception among some in the industry is that media consumption is a zero-sum game — with television the potential loser. Yet recent research by Ball State University on behalf of the Center for Research Excellence confirms what we at Nielsen continue to find: that people keep adding more media to their lives without abandoning their TVs.

Consumers may watch television online and on mobile devices — while discussing their favorite shows on Facebook and Twitter — but they also watch more television the way they always have: on their televisions, inside their homes.

Advances in video technology should not be understated: the TV industry is changing rapidly and dramatically. Yet rather than creating obsolescence, these innovations are expanding choices. Consumers can now watch their favorite programs on whatever screen best suits the time, place and preferences. Sometimes, that means catching up with a missed television episode online during lunch, or viewing the evening news on their cell phones while on the train home. It also means watching movies, sports or American Idol with the family around the plasma TV at home.

In these ways, it is evident television is not on a bubble. Instead, consumers are renewing and strengthening their engagement with traditional television while adding new screens that expand the viewing experience.

Comments

[ramblingjohnny]

Am actually listening to a whole lots more radio now than ten years ago. The main reason is that it convenient with online activity. Off course it far from traditional radio most of the stuff I listen to come from shoutcast stream. TV not dead but cable might be in trouble in a few years.

[Carolab]

A discussion of WHAT people are watching would have been instructive, Susan.

[NHBill]

You have to pay them a lot of money to find that out!

[AndSoItGoes]

What I find amazing is that the media totally disregards a whole demographic, those 50 plus in age. Many do not use computers, iphones, etc. All they have or want is TV. The fact that programming is deplorable with few exceptions is amazing given the availability of channels. The elderly are watching reruns of MASH, Murder She Wrote, Touched By An Angel, westerns, old films, Hallmark Channel made for TV films, public television programs, science & some history programs that don't appear to be revising it, MSNBC evening programs (not the prison/crime junk, the older biolgraphy programs, retirement TV, C-SPAN. The ABC, NBC, & CBS networks aren't offering much in the way of quality programming. Even if the cable companies would offer a Classics / Musicals / Oldies But Goodies films category. Or good old programs like Marcus Welby MD, MacGyver, old variety programs like Perry Como, Dean Martin, Andy Williams, etc. They would all get activity & provide enjoyment for a group that is not being represented in the the media industry.

[NHBill]

TV Business 101:
Life experience cements brand loyalty. 50+ spend lots of money but they already have a favorite beer, car, restaurant, golf club, toothpaste, furniture store you name it. A newly married 25 year old is making many of these decisions for the first time. Advertising for tires say works well on them. 50+ knows what tires to buy. 50+ may be open to what denture cream to buy, but Ford, Chevy or Toyota has probably been decided. Young, inexperienced, open-minded people make the best audience for TV advertising. They are worth billions. Cost per rating point for 50+ is the lowest. 18-34 the highest. Such are the facts of life in TV advertising. Watch network news to see what Madison Avenue thinks of 50+. Hint: It's a giant medicine cabinet!
The internet may provide a solution. Old shows such as the ones you mention may find a life on the internet. Some are already being offered on HULU and FANCAST.
The sad truth is it's hard to pay the bills with a 50+ audience.
It is why newspapers are in so much trouble.

[skantea]

I gave up on t.v. a good five years ago only to recently start watching it again. My roomate pushed for cable and it came with a dvr, so now i get to skip all the garbage and watch only what appeals to me.
I still spend much more time viewing video and movies on the computer, but sometimes it's nice to be social and watch a good program in HD (with my laptop warming my thighs, of course).

[bayside]

I can tell you my experience. I used to have TV on all the time.. Not anymore. I listen to music ,visit people or do something creative. and of course the internet..I dont miss it at all.. I have not watched a news program since I found out via the internet they had been feeding us bush propaganda...I get my news from overseas or the internet..Its hard to get trust back..

[mediamarv]

TV = HBO

Nothing else exists as far as I know.

[RickCoMatic]

"The Network Television business is a narrow, cruel, shallow money pit, a long plastic hallway leading to a vast wasteland, where pitchmen, thieves and pimps run free; where well-intentioned good men bring their great ideas for material to be shown that will prevent the commercials from bumping together, to be treated like vermin and die like dogs."

[NHBill]

You forgot to give the Duke his due!

[TheEmptinessOfTruthiness]

Thanks for the info.

Clearly we must step up our efforts to delegitimize and destroy the medium of choice of the sub-literate.

[Paw1]

This is very interesting, Susan and Steve. However, we have found that in our research there have been significant declines in Persons viewing levels, specifically when looking at Teens and Young Adults. We have seen drops in minutes viewed and decreases in the number of young people turning on their TV sets. Can this be explained? What is happening with the viewing habits of the younger generation? How do you reconcile this with your statements above?

[NHBill]

Outstanding questions!

[gdatomic]

These comments are ridiculous.

Nothing has changed. I remember hanging with friends in the 70's who said all the same things. Then a different set said it in the 80's. And yet another in the 1990's.

TV has always been consumed in many and varied ways. There have always been acceptors and rejectors of TV. And we've always skipped commercials (at least mentally).

So, reading all these comments, I am now absolutely convinced that we're adding media, not losing TV's power.

[Mike Butson]

Sorry, but I have to agree with the pundits on this one. Certainly you cannot judge the entire country's viewing habits by a limited poll, just as you cannot take the word of an employee of Neilsen.

TV has long been the all consuming and undisputed staple of home entertainment. However, just as radio influenced our book reading and TV took a huge swipe at radio, the internet and related tech toys are making waves with the mix. Sure, we still surf radio stations while driving, read the paper on Sunday morning and maybe watch all the special events or favorite shows on television. On the other hand, the new kid in town provides an interactive world, where we may participate and perhaps become a part of the show. At the end of the day it's all fluffy mind candy, but open your eyes Mr. and Ms. TV Land. It's a new world out there. Instead of defending an increasingly stodgy position, embrace the new media and show some innovation. Oh, and none of us "typical people" like to be referred to as such. Last check, we all had unique fingerprints.

Just saying...

[NHBill]

It's the DVR that has everyone from Nielsen to NBC to HBO in a panic.

[mexamerican]

the reason we're in such a mess can be found in the moro nic garb age that passes for programming these days.

[Mike Butson]

Sorry, but I have to agree with the pundits. Strictly speaking, of course, I can only measure my own habits, along with those of my closest sphere (family, friends, etc). It's not that TV has gotten worse or stagnant--on the contrary there is more variety and options than ever before. Just as print, radio, movies and TV have all made impacts on each other, for better or worse--so has the internet charge. There will always be a place for each, but it shifts. Much of our radio listening is now in the car, print may be consumed on Sunday morning or as a means to fall asleep at night and TV is quickly losing it's all consuming allure as well. My group may watch special events, a few news broadcasts or possibly kill time on a lazy evening. On the other hand, the computer brings us to an interactive world, where rather than sit back and enjoy the show, one can participate and become part of it.
As to which medium is healthiest or more beneficial? I think both TV and the internet are numbing mind candy at the end of the day. It's just that playing on Facebook, I Tunes or even my Blackberry Storm Apps will at least give me a momentary feeling that I'm actually doing something.
I don't suggest that I'm a "typical" viewer, nor my friends. But really, who is? Last time I checked, we all had different fingerprints.
Just saying...

[Bardmess]

"We're Still Watching".
I'm not. Life is good and it's too short to spend watching TV.

[NHBill]

Some TV is outstanding. Some of it is as engaging as anything mankind has produced. It's just that most of it is mediocre. Some of it is drek. These laws of averages apply to all human endeavors. I for one am looking forward to Ken Burns' new documentary on the National Parks. It will be in HD on free TV. All these "I'm too good for TV types" are lying. Everybody is watching something.

[historymatters]

people may be watching more tv than ever, but I'd be surprised if they're still watching it the same way - as in, on broadcast or cable channels at the time the show is regularly scheduled (like 8pm Eastern on Friday night or whatever). Between on-demand, pay per view, tivo, Netflix, Youtube, Hulu, and other options, I'd expect that portion of the population that ignores broadcast schedules and watch what they want when they want to is going to keep getting bigger. I watch plenty of video, about two hours a day. But I don't have cable. All the video I watch is either from online streaming or Netflix dvds. I'm nobody's idea of a technophile and am never on the cutting edge for home electronics, so if I'm doing this kind of thing, I expect it's gotten very mainstream by now.

I think the television media types are right to be concerned about their business models. I do not see how the traditional cable and broadcast channels with scripted (or even "reality") programming can possibly survive more than another decade. If they think the music recording industry is in trouble, they better take a lot closer look at themselves instead. That goes for all the actors, writers, directors, cinematographers, grips, best boys, ADs, makeup artists, and everybody else who makes a living in the tv industry.

[NHBill]

Very powerful comment.