Los Angeles, California – (The Hosting News) – November 17, 2005 – New Neilsen Entertainment Senior Vice President, Larry Gerbrandt has developed a new study entitled, ‘Benchmarking the Digital Household’ from Nielsen Entertainment Reports, available for sale starting today.
Digital Household explores a broad range of penetration benchmarks for how the American household uses media, entertainment, information technologies, and services. The report can be purchased by sending an email to Reports@NielsenEntertainment.com.
In his new role, Mr. Gerbrandt will utilize Nielsen Entertainment’s Actionable Entertainment Intelligence (AEI), the cross-section of data sets from Nielsen’s consulting and measurement businesses covering film, television, on demand, interactive, live event, music, mobile, and book entertainment verticals, as well as data from sister companies Nielsen Media Research and Monitor Plus, to produce strategy-minded analyses on many of the complex questions facing entertainment executives today.
The first Nielsen Entertainment Report, Benchmarking the Digital Household is a distillation of eight years of regular, in-depth surveys in American households conducted by Nielsen Media Research. The report combines a thorough quantitative review of entertainment consumption with an overlay of strategic analysis; particularly leveraging Nielsen Entertainment’s consulting expertise in the areas of film, television, mobile, video games.
Some examples of key trends from the analysis:
— Though video game-owning households represent only about a third of the U.S. total, they are a fiercely technophilic segment, with some of the highest adoption rates of consumer electronics and services. These homes-with a disproportionate number of children 17 or younger-are the breeding ground for the heavy media consumers of tomorrow.
— Two key technology adoption inflection points were identified: a slow rate of growth until about 20% penetration and a second rapid expansion to mass market adoption once the technology or service reached 40% penetration.
— Average movie attendance among the households surveyed has been falling over the last eight years but the greatest falloff has come in the heaviest movie-going segment-those that attend theaters more than once a month. The steepest declines have been in the DVD-owning homes and the broadband-enabled households.
— A growing number of households are subscribing to both cable and satellite services-with the percentage almost doubling over the last few years. — Some 80% of U.S. households subscribe to some combination of multi- channel programming service through cable, telco and satellite providers. At the 80% mark the cable networks reach, at least from the perspective of advertisers, a national footprint that is functionally equivalent to that of the broadcast networks.
— It has become a truism that digital technologies penetrate faster than their analog counterparts, in part because global manufacturing and global adoption have allowed pricing to fall faster. DVD players, launched only eight years ago, are in 78.5% of households. Cell phones are in 75.9% and personal computers are in 74.2% of homes-with virtually all of those connected to the Internet through a combination of dial-up, cable modems and DSL connections. The most important subsegment is the one comprised by cable modems and DSL, which offer high-speed access to the Internet and define the broadband universe. Some 34.3% of all households now have broadband access-and these homes are the foundation for the next generation of media and entertainment launches.
— The American household is awash in “screens”. From TV sets to cell phones to PDAs to PCs-even portable game and music players-the modern home is an open portal to outside entertainment and information providers. Some three-quarters have a PC and a third own two or more. More than half of all homes have three or more TV sets.
Andy Wing, President and CEO, Nielsen Entertainment commented, ”How people obtain, consume and transport entertainment is in a state of transformation. While no one knows precisely how these changes will impact content developers and consumers, in a perfect illustration of partnership between Nielsen Entertainment and Nielsen Media Research, we are delivering a comprehensive and empirically-derived report on what we see as the challenges and opportunities of our digital future and how clients could be impacted.”
Mr. Gerbrandt stated, ”Nielsen Entertainment is an unrivaled provider of consumption data and thought leadership in the entertainment industry. Benchmarking the Digital Household puts both sides to work; stitching a path among components of Actionable Entertainment Intelligence by focusing on the adoption of innovations, the interconnections between behaviors, and the broader impact digitization of content has on the consumption of entertainment.”
Added Mr. Wing, ”Larry Gerbrandt is the perfect individual to spearhead this effort with experience in all aspects of media analysis and a deep understanding of the entertainment verticals we cover. We are happy to welcome him as part of the Nielsen Entertainment team.”
Said Mr. Wing, ”Nielsen Entertainment is currently the largest source of entertainment measurement information. With a new emphasis on reports, you’ll see much of that data come to life in research studies intended to guide some of the thinking and discussion around changes in consumer choice, control, and convenience, and with a great deal of emphasis overall on how people spend their money and time.”