Report: Media Consumption Up, Spending Down

LONDON: KPMG U.K.’s new Media and Entertainment Barometer reports that consumers are spending less on traditional and digital media than they were six months ago, but are consuming more.

KPMG commissioned YouGov to survey online and offline media consumption of 1,000-plus British viewers. It found that the average British consumer spent £7.46 on traditional media in March, down from £9.19 in September. Spend on digital media also fell, from £1.99 to £0.98. However, average monthly consumption of traditional media rose from 11 hours and 40 minutes to 12 hours and 13 minutes, and digital media consumption rose from 6 hours 14 minutes to 7 hours 28 minutes.

David Elms, the head of media at KPMG U.K., commented: "The findings of the second KPMG Media and Entertainment Barometer illustrate the problem faced by the media sector in curbing the structural decline in revenues. However, online users are increasing. Online subscription models remain in their infancy and once more developed should provide a platform for significantly higher online revenues. There is considerable focus on driving digital media revenues. Respondents indicated they do access more media because of online availability, but the tide has not yet turned as the majority of us still prefer consuming media offline. Only a quarter favored online media access compared with 43 percent who said offline and a third said it didn’t make a difference. Creating integrated business models which make the most of both traditional and digital business models is therefore key for the sector."

The report also found that only 10 percent of non-subscribers anticipate possibly becoming paid subscribers to media products over the coming 12 months; and that those aged 16-24 are more likely to pay for online content than their older counterparts. Digital media consumers were more willing to pay for online access to music and film than for pay-TV and newspapers/magazines. KPMG also notes that TV VOD is gaining traction, with 24 percent saying they watch TV shows on demand, versus 19 percent six months ago. Elms said: "It is early days with new technologies like VOD, 3DTV and e-readers, but they are examples of the innovations and platforms which can help drive new areas of revenue of the media sector in a digital age."