Eric Schmidt at Edinburgh

 I  was fortunate to hear Eric Schmidt, Chairman of Google, speak at the Edinburgh Television Festival and to attend the Question and Answer session the following morning.

Schmidt posed one big question -- in my view a massively important one: why hasn’t a country like the UK built large technology companies? (He reminded us that the first commercial use of a computer was at the headquarters of J.  Lyons, once famous for its tea shops, in West London).

For the audience of British TV Executives the question took a more specific form: why doesn’t British broadcasting do better globally, lead in Europe? After all, the British speak a global language -- and other Europeans, like many nationalities, are used to watching dubbed or subtitled content.

His answer was: first, we don’t teach computer science enough in schools or encourage it enough at universities; second, we are over-regulated.

In his brief tribute to Steve Jobs, who had announced that he was stepping down the day before, Eric Schmidt reminded us that Apple makes sure its technology is beautiful.

It’s hard not to agree that our education system could give a much more positive message about science, innovation and entrepreneurship. (What is the point of media departments teaching Marxist or post-modernist theory to people who want to work in advertising or TV?)

But his regulation argument aroused little comment. Why?

To be blunt, British broadcasters and producers are deeply attached to their regulations. I expect they would fight like cats and dogs to keep them.

The BBC is regulated from top to bottom, and funded by a mandatory levy. It totally resists any change.

The public services broadcasters (PSBs), BBC, ITV, C4 and Five, get mandatory “prominence” on all guides. They would hate to lose that.

British producers are entitled to keep rights in programmes even if they have been funded largely by public broadcasters.

Yet Schmidt is right. Regulation does hold back innovation and entrepreneurship. Regulation, as he delicately put it, usually favours the regulated. It deters innovation and entrepreneurship by newcomers, putting the emphasis on continuity and risk avoidance by the current players.

Schmidt proclaims himself a Capitalist and a Technologist. California invents the future in a cultural and political landscape utterly different from Europe, with its high public spending and tax rates and extensive social policies.

But that’s why Europe needs to be very smart about the impact of regulation and the danger of decline. If it cannot support entrepreneurs and build large companies in key emerging sectors, we have a big, big problem.

I have two recommendations which I think are worth exploring by people who are ready  to be fearlessly objective.

One, national regulators should switch their thinking to a European rather than a national scale: Schmidt’s critique of the suppression of the Kangaroo project by British competition authorities got a round of applause.  (I am not an expert in competition law so I am going to return to this when I have taken advice.)

Two, the UK should ask tough questions about the costs and benefits of every piece of regulation, with a strong bias towards abolition.

The UK could start with some like these:

Quotas for original production: the PSB’s have detailed commitments to original production, even though there is a 50% EU rule for European content. Nearly all major channels in Europe exceed the 50% quota of European content, the vast majority of which is domestic. This is because there is a very strong preference for domestic content in every Member State. Are these UK rules really  serving a useful purpose? (If Governments want to be very specific, say about Children’s’ content, they should contract for that directly.)

Guide prominence: it’s actually getting a bit silly. The public broadcasters want to keep their prominence at the top of the guides but now want to charge Sky, for example,  retransmission fees. Sky, I guess, would like to get the revenue for its top slots. Why not take out the regulation and let them sort it out?

A proper assessment might keep some rules but modify them in the interests of a more open market and more competition. For instance, the independent terms of trade have helped to build the UK’s format industry worldwide, but they also act to keep large independents and public broadcasters in an exclusive ritual dance.

Eric Schmidt himself mentioned Contract Rights Renewal (CRR) by which, following the mergers that created what is now ITV, the price of advertising is held at a given level.

There is a job to be done here. Perhaps Eric Schmidt has provided the driver. Anyone agree?

What Content will Define our Decade?

I am taking a break  this week to think about next week's post. Big Brother was the defining show of the last decade. What will define this one? Your  thoughts would be welcome. Back next week.

Midsomer Murders: a Producer in Trouble

Typical?

This week there was a fascinating case in the British media. The programme called Midsomer Murders, known around the world as Barnaby or Inspector Barnaby, portrays a typical English village (with a very untypical murder rate!).  

I have written about it before. One of the reasons it succeeds is that it occupies very familiar territory: for detective stories about English villages are a well-known genre around the world, made famous from the novels of Agatha Christie and many others. 

Thus Midsomer Murders is different from -- but in the same mould as -- Inspector Morse and Poirot and Miss Marple, all widely shown around the world. (Midsomer Murders is actually based on the books of Caroline Graham – no relation).

There was furore last week when its producer – and CEO of its production company – in explaining how he designed this show, said he had cast no black or Asian performers since black or Asian people would be out of place in a typical English village.

In real life Brian True-May is not completely correct. Like everything else, England’s villages are changing.  I live in one and we have a black family and one Asian family in a village of about a hundred homes. They participate fully. One family member sits on the village council – or Parish Council as it is called.  Another is a doctor.

True-May has been widely criticised and suspended from his job.

So this is the issue.  Midsomer Murder is fiction.  It’s a story -- it has a high audience among older, more conservative viewers in the UK and its job is to continue to appeal to that audience. In other countries it may appeal to different groups. But it needs to be recognised for what it is, to have a clear and coherent identity, and to be part of a well-established tradition. People like to know what they are getting before they invest their time in watching something…

When a producer is casting a show, he or she will look for ways to clarify and simplify context and location. He or she is using clues to locate the work in the viewer’s minds and to make recognition and navigation easy. It is legitimate to use every trick – a story is an illusion, a simplified frame for fictional events which the viewer will need to track.

Or to put in another way, the villages in Midsomer Murders are stereotypes. Whatever their consequences for social behaviour, in cultural terms, stereotypes are a tool, a way we navigate our lives and make decisions. I have referred before to the work of Boyd and Richerson who have tried to explain why humans have “culture”. They conclude it is because we cannot research every decision: we need a way of making decisions in a way that is not as crude as pure animal instinct, but is “quick and easy”. Copying available models is one way we do that. Stereotypes are another: this looks like a kind of person or place I have met before, so I will treat them as I did then. 

Entertainment uses stereotypes – recognizable frames that provide familiarity and easy understanding for people and events that are new to the viewer. Stereotypes are almost by their nature behind the curve of reality.

So, going back to the main issue, the question is: should casting be colour blind? UK urban drama often features black and Asian actors. There is social truth in this, for minority ethnic groups live mainly in cities in the UK.  

Midsomer Murders is not a challenging work but it does its job, staying firmly within an established tradition. But even much more “difficult” works like The Wire from the US use stereotypes.

So should social policy determine the casting of a TV series? Many might say, yes, if it contributes to social or racial prejudice. But there is no evidence that Midsomer Murders has contributed to racial prejudice. Nor is there evidence that the producer himself – though he may have been impolitic – is prejudiced. You could say he was just making a professional judgement.

Others might say it would be better with a more typical social mix. The point is: should a producer have been fired for explaining his casting policy which prior to his interview has raised no complaint – except from critics who found it old-fashioned and dull?

Rosario Tijeras: A Telenovela with Attitude

Rosario Tijeras is a Colombian drama. It is an adaptation of a novel by the same name. Rosario, the protagonist, played by Maria Fernanda Yepez, was raised in the slums and raped by a local gang. After the rape – her friend was also murdered by an infamous drug lord – she seeks revenge, and gets it by killing the drug lord. Word spreads fast, and, in a reversal of expectations, a gang hires her to become an assassin and from that moment she works for the new mafia boss.

The show has murders, betrayal, fast money and beautiful women and appears to make riveting television. It was one of Colombia’s top-rated shows of 2010. When the series began airing on Telefutura in the US in September 2010 it delivered the highest rated series finale in the history of the network. (Columbia is the third largest Latin American country after Brazil and Mexico, and, sadly, one of the most dangerous places on the planet.)

There were disapproving voices, of course. Though extreme tales of drug bosses and glamorous women assassins are common on Colombian primetime television, this latest “narco-soap” has been controversial and sparked protests in the city of Medellin. The show’s posters, emblazoned with the slogan “It’s harder to love than to kill”, had to be taken down in Columbia’s second largest city, home to infamous drugs lord Pablo Escobar in the 80’s and 90’s.

The main complaint has been that the series glamorizes the life of criminals and will encourage young people to imitate that lifestyle. The main Medellin newspaper El Colombiano said that the show was a "gulp of absurdity, vulgarity, bad manners and a big dose of narco-culture". The argument also spread over to neighbouring Panama, whose president, Ricardo Martinelli, complained about the Colombian shows that air on local television there. "They exalt drug trafficking, theft, muggings," he said, adding that the shows do "damage to our country" and corrupt "moral values". 


The show has also hit problems in neighbouring Venezuela.

It’s not the first time that Columbia has seen anti-heroes like Rosario. This one is actually just the latest in a group of telenovelas, dubbed “narco-soaps”, which have caused an outcry in Colombia. There has been The Capo, which paints a wily drug boss as a sensitive anti-hero. There was a smash hit Without Breasts There Is No Paradise that glamorized the lives of the women who surround the drug lords, as did Mafia Dolls, which ended in early 2010.

Two questions arise whenever this kind of debate comes up. First, are people indifferent to the moral issues? And second, what impact do media have on behaviour?

On the first the answer is No. A huge majority of Colombians supported late President Alvaro Uribe’s successful campaign against the drug cartels. Nobody except a hardened criminal wants to live in a violent and lawless country. But such issues are seldom simple. There is sympathy and some support for the farmers who have harvested the coca leaf for generations and who do not get adequate compensation for losing their business when their crops are destroyed. There is also resentment against the United States whose drug users consume most of the cocaine that fuels the drug trade.

However, most people feel they are able to distinguish “entertainment” from “reality”. They get pleasure out of entertainment. That pleasure is a signal that entertaining stories satisfy ancient instincts, instincts that were there long before the arrival of nation states and drug lords!

Rosario Tijeras has two of the ingredients that capture instinctive attention: murder and beautiful women.

A female assassin is an interesting case, however. A female assassin goes against “nature” (killing is usually the way male rivalries are settled), so she has to be sympathetic and credible. (You will have come across other female assassins who are just cardboard characters who do not engage serious attention). Rosario gets sympathy from the back story: she has been violated and her friend has been killed. That justifies revenge, which we instinctively support, but not the role of a career assassin. I would like to watch the series to see how they have secured continuing interest in Rosario’s role as a career criminal -- for that will be main challenge for the writers of this series.

As for the other question, we still know relatively little about the precise impact of entertainment on the moral culture of a nation or community, although reams of paper have been written on the subject. Most countries have “standards”, which vary widely. But do violent telenovelas encourage young people to join drug gangs or sanction muggings?

In truth, this is a very confused issue. On balance, there is now a consensus among academics that violent entertainment does not directly promote violent behaviour -- with some exceptions, like young people and sociopaths. But media are clearly part of a culture. Culture is complex and multi-layered and it is often very hard to determine what is driving change and what is following.

However a particular culture, however pluralistic, has its own character, and its own “attitude” towards key issues.

My guess is the media debate is animated by two different types within the administrative class. One group is concerned with public order and does not like crimes such as murder and drug abuse being treated lightly, i.e. as part of “entertainment”. The other group, predominantly academic, is protective of freedom of expression. Finding it hard to get hard data on media impact, they tend to rely on a kind of acceptability test, acting when a stream of complaints gets particularly noisy.

Most ordinary people, however, know they have little influence on public issues, enjoy being stimulated by good entertainment, and don’t think a “story” is going to change their lives or opinions.

Media Strategy: Knowing Your Market

The US market: 50  channels to talk to

The main question addressed in this series of posts has been: how do I identify a market for my content? And the emphasis has not been on home markets, but external markets, in other words, exports.

I have emphasized a knowledge-based approach (hope that does not sound pretentious.) I observe that the traditional approach to sales is: show of your wares, attract as much attention as you can, build relationships. All essential, but knowledge can make it even more effective.

First question about the country or market you are looking at is: where are the gaps? However good your contacts, a basic framework or theory of content demand will help focus those enquiries and provide scope for independent initiatives.

So start with the basic assumption that mainstream audiences prefer home-made content.I tried to explain the reason for this cultural preference in the first post in this series.

I will talk about non-mainstream channels at a later date.

Look first for what they can’t they do themselves, or do enough of. Depending on the size of the country or market, there could be many types of content that cannot be made at home in the required quantities…expensive documentaries, drama, comedy, formats for games or reality entertainment.

I use primetime drama as a core example because it is so expensive that even countries with large populations cannot afford as much as they need.

For mainstream audiences, here are some questions:

Is it familiar enough? In other words, even if that audience is used to dubbed or subtitled material, will they be able to make sense of it?

I explained in an earlier blog that basic aspects of US life, for example, have become so familiar that they pose few “cognitive” issues.  A French or British drama on the other hand needs a bit more help. The British series called Sherlock has done quite well – Sherlock Holmes is quite a widely known character, at least in Europe. Midsummer Murders, known around the world mainly as Inspector Barnaby, uses an English village as its location, familiar from the British detective novel, another worldwide favourite.

Stories need not only to feel familiar. They also need to be attractive and relevant. Famous cities work better than country towns.

As for the subject matter, it will have to do a traditional job in a special way. In an earlier post I talked about the human fascination with murder. Every schedule in every country on our planet offers murder mysteries. Decide what is missing from their repertoire and see if you have got it, or can make it.

Our fascination with murder is one of many instinctive biological responses that secure attention. Suspense is another – an ancient response that warns us to pay attention because something bad may be about to happen.

The approach taken in this series is very basic. It is intended to make the point that basic knowledge helps to ground everything that follows. In future posts I will try to understand the more intricate problem of why something succeeds -- sometimes unexpectedly.

But the first step must always be to identify and know the customer. The largest media market in the world is the US. It is only recently that other players have sought to sell into that market on any scale. But things are changing.

That is why structure of the US market is has become so important. To help approach that market from outside, our company has created, in association with the UK magazine Broadcast,  the most comprehensive report on the US market ever written. It’s called US TV: Commissioning Strategies: 2011 to 2012. You can visit the micro-site by clicking the link.

On Vacation

I am on holiday for two weeks.

Media Strategy: Ancient Instincts, New Stories

Image via Wikipedia

Murder: Fascinated and Revolted

Last week I tried to say something about the very basics of content that sells.

You have something they want and they cannot do it themselves.

But this is entertainment. What people want is mysterious and highly personal. How can you generalize?

That’s what we try to do.

Last week I suggested that one of the things that excite people is a place where they would like to be.

One of the reasons US content is so popular – but only one – is because it has been, for the last century, a country where enterprising people could go and live, a destination of choice, a place you could dream about.

In the process it became a familiar place – which is another condition for content that travels. There needs to be some element of familiarity.

So if your location is not a familiar one, you will need to figure how to make it both familiar and interesting. For Familiarity and Novelty are both essential. Relevance is important, too. People will be interested in a location that is cool, fashionable, leading edge in some way, a place they would want to visit or a way of life they might like to be part of….

In addition, you need, in the main, to show people whom the audiences can look up to, characters who are smart, or good looking or brave or enterprising and who show it in the things they do or say. As I have said in a previous post, evolution has provided us with a need for behaviour models. It’s how we learn what to do, how to behave.

There are other things that matter deeply, so much so that you can revisit them again and again and again, concerns that come from deep in our evolutionary past. For example, we are obsessed with murder. Perhaps that is because humans only survived by living in groups that held together because the punished murder –, most of us have a deep revulsion for murder and a deep desire to see the murder caught and punished.

But that deep code of instinctive justice also drives the desire for revenge – which often comes into play when a justice system breaks down. These instinct sometimes fight one another create conflicts which interest us greatly.

By the same token we are endlessly interested in sex and love. Biologists would say that that our role is to carry genes forward into the next generation so we ha e an instinctive interest in everything to do with reproduction, finding the best mate, etc..

Media Strategy: it's about Geopolitics too

Stieg Larsson: speaking as a European...

If you are going to be an exporter of content, you need to know what other countries are looking for.

It’s quite simple really: they are looking for what they cannot do themselves. Nearly everyone prefers content from their own country, in their own language. We are all locked into our private worlds, languages and cultures.

Let us take some examples. Drama is expensive – something many countries can only afford in small quantities. Some countries produce only low-budget soaps – so they may provide a market for good-quality mid-evening series. Even countries which can afford some primetime drama will have be gaps in the schedule.

Because of the preference for own-language work, format licensing has been a huge success. The key elements of the production are locked into a format bible, which is, in essence, a do-it-yourself manual for the production of a hit show.

And some factual content is of generic interest, natural history being the most obvious example. I won’t be saying much about news here, but news footage falls into that category too.

There are also a while number of practical considerations that go beyond price. Content must accommodate a country’s viewing patterns and scheduling habits.

These are some of the questions that need answers before assessing the potential demand in a given market. This can all be done with a careful look at a given country’s media structures and outputs. I will be saying more about how to assess a given market in later posts.

However there are many intangibles, which are more interesting because they are seldom discussed in a commercial context.

Starting a Media Strategy: Culture and Basic Instinct

What is Culture?

My first blogs of 2011 will be about how to create a successful national media strategy. You will be able to apply them anywhere.

A national media strategy is about how a government can help its media industries to flourish, that is perform somewhere near their potential.

I put most emphasis on the global or international dimension, and start with the core elements of a media strategy, that is, the elements of human behaviour which media content addresses.

Nearly everyone else discussing media strategy simply skips this phase and concentrates in incentives or financial tools. We may well end up there, but this first stage is essential. You can't have a media strategy without a framing theory of culture and and the human need for culture.

This series of postings will end with diagnostic questions, designed to identify the position you start from and what strategic options are open to your particular media industry.  You will then be able to assess where you think your industry can best add value.

If you were a food manufacturer or a nation that relied heavily on food exports, you would accept the need to be up to speed with the best knowledge: new scientific research on cultivation, new technology, the nutritional value of your foods, changing demand around the world. You might also want to define and promote a brand – like Belgium is famous for chocolates.

Ultimately, as a food exporting nation, you are addressing a universal need: humans have to eat. Hunger – and the pleasure we get from food – are two of the ways nature has found to make us pay attention to that need.

The Cultural Paradigm

A media strategy addresses the human need to be part of a culture. Humans need culture like they need food. A given culture is the sum total of the ways in which people interact in a given group. (The  chart, originally developed by Gerry Johnson and Kevin Scholes to examine corporate cultures, covers the many dimensions well).


"Culture" is often misused to mean "Arts". 


A few weeks back, I gave you a current view from the two scientists on the root instinct that drives human culture: an instinct to copy others. (The authors of this work explain it as “fast and frugal learning”: the way you pick up the basic rules of life).

Apologies

I try to post on Tuesday. I am afraid I have been unwell for a few days. Sorry. Back next week.

Internet TV? Just buy a cable connector

From TV Debunked, Fortune Magazine, January 2011

The lead picture in this post – and nearly all the numbers -- come from a piece in January’s Fortune magazine. (Click on the caption for the link).

The writer, Jessi Hempel, has just received the brick-sized box enabling her to hook-up Google TV, and having played around with some of the cooler functions (like tweeting from her TV (@jessiwrites) she set out to watch some real stuff, namely of a recent episode of the sitcom Modern Family – but it’s not available. Or rather, she can get it from Amazon for $1.99 (if she is already a cable subscriber) or get old episodes from Netflix. Modern Family plays on ABC, and ABC like all the networks and major broadcasters, are teasing with the new media. At bottom, ABC still wants to keep you watching new episodes the way you always have, on their main channel. (You can see Modern Family on Sky1 in the UK).

In fact, the best new-tech option – if you live in the US – apart from watching it live on an HD TV, would be to catch up the latest episode on ABC.com. (From the UK, I could watch highlights of the next episode on ABC.com  but the latest full episode was blocked.)

All the devices in that picture, and the failures in their wake like Joost, add lots of convenience extras like search, and even more potential benefits like targeted advertising. But as Jessi puts it, “Netflix, Google and Apple can’t just swoop in and disrupt the $85 billion home entertainment industry. Their challenge lies in navigating the entrenched interests that make up the television business.”

So far they have not succeeded in doing that.

How to Avoid Piracy?

Release It, Legally and Soon -- at least that would be one simple message coming out of our work on Piracy. But it's far from a complete answer, for some content is not particularly prone to piracy.


And anyway, Piracy is simply a secondary consequence of a technology that enables  simultaneous global access to new content. (Each new distribution technology offered new opportunities for piracy: rogue employees at Hollywood studios have been stealing DVD masters and duplicating them for years).


But our clients, some of whom are global companies, are people with property to protect, and they need a proper plan for their releases. No industry can flourish if property rights can be stolen.


The critical choice for media companies is to determine the best release pattern, taking  piracy into account.


As above, not every type of content is equally vulnerable. A series like Lost is pirated if it's not made available shortly after release. On the other hand, German viewers enjoy watching science programmes of indeterminate age and pay for them.


Simultaneous online release is therefore one way to stem piracy. But the key question will always be: what impact does that have on other potentially profitable windows? For simultaneous release may limit sales down more traditional paths to channels with well-established audiences and solid revenues. (Then again, an early online release can create further buzz for the show. That’s why Warner Bros. released Vampire Diaries on iTunes for UK users prior to its ITV2 airing.)

Culture and Evolution; some new thinking.



Not by genes alone: The PowerPoint is available on request

This will be my last post of 2010.  I'm going to look at something absolutely basic to what we do.  We are all in the culture business. 

But what is culture?

A wide definition is preferable. Culture is simply the way we behave in a certain place at a certain time. Breakfast in Japan is different from breakfast in Britain.

Something as deeply embedded as culture must be instinctive. We acquire a large part of it without thinking about it. But then, like all instincts, it must have a use, be, as they say, adaptive.

Do other animals have cultures?  In some chimpanzee bands one member may find a new way of doing something useful, like extracting termites with a stick, and others copy him or her.  But it doesn’t seem to go much further than that. 

Yet that, according to the latest thinking on culture, we have an instinct to watch others in order to learn things, determine how best to behave.  The two academics who have articulated this viewpoint most clearly, Boyd and Richardson, use the term "fast and frugal heuristics" which simply means that a quick way to decide what to do in a given situation is to copy others. This appears in a book called Not by Genes Alone.

How Hollywood Did It (Part 2)

In my post on November 23rd, I wrote about the way Hollywood studios had coped with both the recession and a collapse in DVD sales in 2009. They did it by boosting international sales.

For the Westminster Media Forum on Monday Nov 23, I tried to think about what we could learn from this. It was especially useful to hear from David Moody, Head of Strategy at BBC Worldwide, before I spoke. BBC Worldwide is the nearest thing we have to a Hollywood studio. 

(Where the Hollywood studios are concerned, we are talking about the big-selling international genres of Drama and Comedy. We are very good, in the UK, at natural history and other high-end factual content. And of course we have been very successful at creating reality formats, but drama remains the most valuable item  in a distributor’s catalogue.)

What are the lessons?

Compared with the UK, the US has found more funding sources for valuable new content. In the UK most commissioning comes from the four traditional broadcasters, BBC, ITV, C4 and Five. In the US it is coming from the networks, ABC, CBS, NBC, Fox (Desperate Housewives, House), basic cable like AMC (Mad Men, Breaking Bad) and premium cable, like HBO or Starz (Spartacus, The Wire). We need more diversity in the commissioning base.

Second, in the US, subscription revenue is funding a lot of new content. In Europe, too, subscription is TV's fastest growing revenue stream. But in the UK  it is not, yet, driving very much content production -- though it is growing on Sky.

Again, more diversity needed. 

Apologies

Sorry. I have always tried to post on Tuesdays recently. This week I just could no make it happen. David.

TV Viewing on the Internet: some real numbers at last

Source: BARB/comScore/Attentional

Anyone running a serious TV business will want to know precisely how much time people are spending watching traditional TV content on the Internet.

The figures in this chart are, we think, the first accurate figures for the viewing of TV on the Internet in the UK. I will explain why later.

They tell us that the average viewer spends just three minutes and twenty seconds a week watching BBC content on the Internet.

You may be surprised at this low number. The Internet is a world of large numbers. Streams, downloads, requests, hits measured in millions.


So what is going on?

We think the figures in the chart are reasonably accurate because they are based on a large panel of viewers and because they measure durations of viewing, not just hits on sites or pages. That means they can be aligned with traditional TV measurement systems like BARB in the UK.

Does this mean producers can now find out – objectively – how long people spend watching their shows on the Internet?

Not yet, but we are getting there.

Up till now there has been a surprising lack of hard data about Internet video viewing in the UK. Published figures almost invariably relate to the BBC iPlayer. For example, a BBC press release from February this year read: “This month BBC iPlayer has doubled its requests from 61.5 million in January 2009 to 120.3 million in January 2010.” Other than telling us that the iPlayer is doing much better in Jan-2010 than it did in Jan-2009, it does not allow us to gauge the iPlayer’s overall contribution to the viewing of BBC content. How, for example, did 120.3 million iPlayer requests compare with viewing to BBC! in January 2010?

Research by BARB in the UK, using a relatively small sample, estimated that the average person spends about 14 minutes per week watching TV programmes on the Internet via a PC or laptop. Since average adult viewing via standard TV sets in the UK is 27 hours per week, this suggests that only about 1% of TV content viewing takes place online. Naturally, the figures were higher for 15-34s, who spent, on average, 26 minutes watching TV programmes on the Internet. Nevertheless, since they too spend more than 20 hours a week watching TV on standard sets, this still only represents 2% of their TV viewing.

Now comScore, the Internet measurement company, has taken things a step forward. ComScore has large Internet panels in a number of key territories that can provide demographic level information. Where broadcasters have allowed their content to be tagged, comScore can even add title level viewing data.

We may be seeing the beginnings of a systematic attempt to capture viewing on the Internet. What everyone is waiting for, though, is a way of measuring the viewing of particular titles. But unfortunately here in the UK we are not able to touch the real motherlode of title level data yet, though we have been told by comScore that they’re working on it.

Here’s what we can tell you. Let’s start with all Internet video consumption (both streamed and downloaded) via PCs and Laptops, not just the viewing of TV content. That means everything from music videos to user generated content to pornography. Using the comScore figures we can work out that the average person in the UK spent 2 hours and 17 minutes a week watching video content on the Internet in September 2010. (That compares with 26 hours and 13 minutes of watching a TV set. So the total Internet video audience is still quite small relative to TV, only 8.7% the total TV audience.)

YouTube is by far the biggest player here, accounting for 34 minutes of weekly Internet viewing, 25% of the total. The BBC sites, which come next, account for 3 minutes and 20 seconds of weekly Internet viewing, which, as shown in our chart, is just 2.4% of the total. Clearly the bulk of the Internet video content watched in the UK is still a mix of music videos, user-generated content, pornography and, no doubt, pirated stuff. It’s certainly not traditional TV.

The BBC’s 3 minutes and 20 seconds of Internet viewing per week in fact makes only 1% of the 5 hours and 2 minutes a week the average person in the UK spends watching BBC1.

Connected TV’s may one day change everything. But right now what we are watching on the Internet is only – occasionally -- traditional TV.

A year or so ago one couldn’t attend a new media conference without speakers and delegates talking about how we were nearly at the tipping point when traditional television viewing would collapse. The evidence to date suggests something different: it seems that many of the traditional TV broadcasters are simply seeing the Internet as another useful way of distributing their content and tying people in to their brands, just another platform through which content can be distributed for the benefit and convenience of the viewers.

(Thanks to Farid el-Husseini who did the calculations and corrected my draft)

How Did Hollywood Do It?

I have written posts about the way the Hollywood studios countered the recessions before (October 24). 


The chart on your left tells the story in more specific terms. It is an interesting story, one that I hope has lessons for others.

In 2009 the sales of DVD’s by the Hollywood studios collapsed. The collapse was dramatic and quite sudden,  dropping by nearly two thirds between 2007 and 2009.

But, amazingly, their total revenues did not collapse. Revenues dropped, but not by nearly the same mount. Why?

Because the studios raised their international sales, from below $7bn to nearly $9bn, which helped to close the gap left by the collapse of the studio’s DVD revenues.

The front runners in this turnaround were Fox and Sony.

Next week the Westminster Media Forum, on Monday 29^th November in London, is holding a workshop event called  The UK creative industries in the international market. Guest Speaker is David Moody from BBC Worldwide’s Director of Strategy.

At that event, I hope to be able to say more about how and why they did this, and how they achieved this turnaround.

I will also be asking what lessons there might be for the UK and other European countries.