KPMG’s latest Media and Entertainment Barometer released today reveals the sharp increase and uptake of smartphones and tablets, driving expenditure and consumption of ‘on the move’ media, most notably, eBooks. This valued and reliable source of intelligence for the industry is based on findings from a survey conducted on KPMG’s behalf by YouGov every six months and provides an insightful view into emerging media consumption trends.
- Smartphone ownership up a third to 36 percent; tablet customer share double
- 62 percent of tablet owners sampled said that they paid to access content on their tablets, considerably more than the 24 percent who paid to access content on their smartphones
- proliferation of the eBook: consumption doubled since September 2009 and monthly spend almost equaling that on music
David Elms, head of media at KPMG in the UK, said: “Our survey clearly shows there is an appetite for paid for “on the move” content. The proliferation of apps and devices is driving expenditure online at a faster pace than fixed-line computers. This represents a significant opportunity for media companies to monetise online content and develop new media business models in pace with consumer demands.”
Latest Trends
Smartphone ownership is up more than one-third from 27 percent to 36 percent while tablets, new to the UK market in July 2010, have seen ownership more than double, increasing from 2 percent to 5 percent, in the past six months. Smartphones were particularly popular among the younger people in the sample with 54 percent of 18-24 year old respondents saying they owned one.
Another marked trend is the increasing appetite for digital content, with the tablet currently getting the larger proportion of respondents’ spend. Whilst from a lower base the early indication suggests that consumers are more willing to pay for applications (apps) on their tablets with monthly spend at £8.87, than on their smartphones at £5.65.
Interestingly since wave 1 of the research in September 2009, consumers of electronic books have doubled. The survey finds that consumers spend more on eBooks (£4) per month than on online games (£2) or streamed TV (£1) and only downloaded music competes for fractionally more disposable income (£5).
Mixed “ecology” between traditional and new media
Whilst consumers are embracing new media, a “mixed ecology” persists in which they are still enjoying traditional media. Four-fifths (79 percent) of respondents engaged in new media activities, while 99 percent participated in traditional media activities – both statistics are consistent with wave 3 of the research. This co-existence of new and old media looks set to continue.
However, the old favourite, television, continues to be the most popular source of entertainment at a time when global events have dominated the news agenda. In contrast, other traditional media activities, such as reading print newspapers and listening to the radio, continue to decline in popularity.
David Elms concluded; “What the survey findings point to is a mixed ecology between traditional and new media-with both co-existing together, however one thing is clear, there is no silver bullet that will fit all company business models as the media industry evolves and takes on a new form”.
By tracking consumer habits on a six-monthly basis, KPMG can alert media providers to shifting patterns in consumer demand, spend and consumption as they happen. KPMG has long standing relationships with clients throughout the media sector and understands the dynamic challenges this sector is facing.
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For further information please contact:
Arti Mohan, KPMG Corporate Communications
Tel: 0207 694 8735 Mobile: 07768 848 085: arti.mohan@kpmg.co.uk
KPMG Press Office: 0207 694 8773
Notes to editors.
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 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 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.
