Welcome!

Agile Computing Authors: Liz McMillan, Leon Adato, Harry Trott, Automic Blog, Elizabeth White

News Feed Item

China, Brazil and Singapore Lead Consumption of Digital Media and the Willingness to Pay for It

- Consumers still spending more money on traditional media with digital and traditional media sharing a complementary co-existence

- Both an opportunity and threat to advertisers is a new generation of 'digital multi-taskers' accessing multiple media simultaneously

- Tech and media providers should collaborate on breakthrough revenue models to win over the information-hungry digital consumer

TORONTO, Jan. 21, 2013 /PRNewswire/ -- Urban consumers in China, Brazil and Singapore are proving to be the world's most voracious users of digital media, powered by the rapid uptake of smartphones and tablets according to the KPMG International 2013 Digital Debate.

All around the world, consumers are showing an insatiable hunger for media in all its forms be it digital or offline, according to the survey which measures the current impact of digital and traditional content on approximately 9,000 consumers in nine countries around the world.

"Consumers in China, Brazil and Singapore across all age groups are accessing and using media at an astonishing pace," says Gary Matuszak, KPMG's Global Chair, Technology, Media and Telecommunications. "They are quick to acquire hand-held mobile devices, and are incredibly receptive to all forms of information, news and entertainment from TV, internet, newspapers, magazines and radio."

Devices set ground rules for new revenue models

A new generation of mobile-centric consumers is getting its first media experience via devices. This growing segment has a much greater preference for digital media, and the coming of next-generation, high-speed mobile networks will likely accelerate this trend.

Among urban Chinese consumers, 78 percent own or intend to own a smartphone, slightly more than laptops (76 percent), and 51 percent say they have or plan to have a tablet computer- a higher penetration than the US, UK, Germany or Australia. Overall, 53 percent of total respondents own or intend to own a smartphone and just over a quarter (26%), a tablet computer.

Moreover, consumers from China, Brazil and Singapore not only prefer to access their content digitally, they are more willing to pay for it. Mobile-centric consumers' propensity to pay for content may provide invaluable insights to media and tech providers in mastering breakthrough revenue models.

"In emerging, high-growth markets such as China, people are not encumbered with the legacy of PCs and have leap-frogged straight onto portable devices," observed David Elms, Head of Media for KPMG in the UK. "This creates amazing opportunities for tech and media companies, many of which are struggling to devise models that are profitable and which truly sate consumers' vast needs for information. They need to delve into understanding content much more intimately as it relates to their customers and then, marry the two."

Traditional media still popular

Interestingly, consumers across all markets spend a similar amount of time accessing media online as they do using traditional media.

Visiting social networking sites, accessing maps and directions, and viewing news online are the top three digital activities across all markets. Consumers in China and Brazil lead all countries in accessing social networking, news and downloading music.

In the traditional media space, TV is still the most popular traditional medium across all markets followed by listening to the radio and thirdly, print such as newspapers and magazines.

"The move to digital has had a dramatic impact on how we consume music, publishing and newspapers. But we are still early in the process of a transition to digital anytime-anywhere availability across all media sectors," said Paul Wissmann, Head of Media & Telecommunications, KPMG in the US. "Until online services can provide content - especially film and video - on all devices, including home televisions, and be as seamless and easy to use as their offline counterparts, 'old' and digital media will continue to co-exist."

Online, time spent does not necessarily mean money — yet

Most consumers are still spending more money offline in traditional activities than online, although this varies considerably according to country and type of media.

Overall, however, consumer spending for digital content is gradually rising, with respondents reporting higher year-on-year spend for every form of digital media. In North America and Europe, for example, 37 and 20 percent of consumers, respectively, say they have increased their spend in accessing magazine applications compared to last year.

While China, Brazil and Singapore lead in their willingness to pay for online content, consumers in North America and Europe show a higher willingness to only pay for access to certain content, such as dating sites and books and less on news, music and games, for example.

"A number of content owners are trying to repeat the traditional revenue models online, aiming to reverse the trend of getting information for free. Consumers are only prepared to pay for content if it is perceived to have value, at the right price, in the right format and accessible on the right device," KPMG's Elms said.

Offline, consumers are cutting their expenditures on packaged media, especially CDs, DVDs and console games, with the same proportion of all respondents (23 percent) saying they have spent less on CDs and DVDs in the last 12 months. The big offline winners are those tied to a venue: sporting events, concerts and cinemas.

Rise of the 'digital multi-tasker' —opportunity and threat to advertisers

The 'second screen' experience lets consumers interact with multiple connected devices simultaneously often while also watching TV. Nearly half (48 percent) of all Chinese consumers say they use their smartphone while viewing the TV, while 60 percent say they use their laptop while watching TV, around half (52 percent) read newspapers and around a third (36 percent) are accessing social networks. Half of all North American respondents say they watch TV and access the internet for reasons other than social networking using a laptop or a PC. Forty-four percent of European respondents say they do the same.

Accessing these multiple devices concurrently appears to impact advertising effectiveness — but not everywhere, according to the survey. Urban consumers in Brazil, China and Singapore have the highest receptivity to advertising and accept that it can underwrite the cost of the content they enjoy. Seventy-seven percent of Chinese consumers and 62 percent of Brazilian consumers are happy to receive online ads in return for lower-priced or free services.

The story is a little different in the more developed markets, where the aversion to advertising is greater, with only 46 percent of North Americans and 39 percent Europeans willing to accept such a deal.

"The opportunity exists for media companies to tap into 'second and third screens' via social media channels such as Twitter and Facebook and create an overall experience and effectiveness for advertising," Elms asserted. "At the current time, however, the integration tends to be only partial."

Media and technology players cannot go it alone

To satisfy the intense information needs of tech-savvy consumers, content, devices and distribution channels need to be integrated, the survey suggests. It is unlikely that any single player can master all these components, making cooperation and collaboration a necessary approach.

"The new class of digital consumers wants more and different 'information experiences' and is prepared to pay for high-quality, video, music, books and digital print material from recognized brands," said KPMG's Matuszak. "While tech companies have powered the ecosystem for the new user experiences and will continue to drive innovation in content creation and delivery models, traditional media companies have the opportunity to evolve, as some have done, to join tech companies as innovators in these areas, and open the door to new business models."

About the survey

To understand how consumers are allocating their time and budgets to media in all its forms, KPMG International commissioned YouGov to undertake an online global survey of more than 9,000 consumers across North America (US, Canada), Europe (Germany, Spain, United Kingdom), Asia Pacific (Australia, metropolitan China and Singapore), and Latin America (metropolitan Brazil). Metropolitan China has an estimated population of 426 million and metropolitan Brazil 50 million. In each market, around 1,000 adults (aged 16+) were interviewed, with the exception of the US, where the interviewees were all 18+ and China and Brazil, where the data was representative of the "urban populations". The data was weighted across age, sex and region. All figures, unless otherwise stated, are from YouGov Plc. Fieldwork was undertaken between 1 and 15 October 2012.

About KPMG International

KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 156 countries and have 152,000 people 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. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

About YouGov
YouGov is an international, full-service market research agency offering added value consultancy, qualitative research, field and tab services, syndicated products such as the daily brand perception tracker BrandIndex and social media analysis tool SoMA, fast turnaround omnibus and comprehensive SixthSense market intelligence reports. YouGov's sector specialist teams serve financial, media, technology and telecoms, FMCG and public sector markets. YouGov is considered a pioneer of online market research and has a panel of 2.5 million people worldwide, including over 350,000 people in the UK representing all ages, socio-economic groups and other demographic types. As the most quoted market research agency in the UK, YouGov has a well-documented and published track record illustrating the accuracy of its survey methods.

For further information visit yougov.co.uk

For further information:

Jennifer Samuel
Global Communications
KPMG International
+1-416-777-8491
[email protected]

Onsite at the WEF:
Brian Bannister Head of Global Communications
KPMG International
+44-7919-393573
[email protected]

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, discussed new ways of thinking and the approaches needed to address the emerging challenges of security i...
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, discussed the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insights from the vast t...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
There is only one world-class Cloud event on earth, and that is Cloud Expo – which returns to Silicon Valley for the 21st Cloud Expo at the Santa Clara Convention Center, October 31 - November 2, 2017. Every Global 2000 enterprise in the world is now integrating cloud computing in some form into its IT development and operations. Midsize and small businesses are also migrating to the cloud in increasing numbers. Companies are each developing their unique mix of cloud technologies and service...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a...
Recently, IoT seems emerging as a solution vehicle for data analytics on real-world scenarios from setting a room temperature setting to predicting a component failure of an aircraft. Compared with developing an application or deploying a cloud service, is an IoT solution unique? If so, how? How does a typical IoT solution architecture consist? And what are the essential components and how are they relevant to each other? How does the security play out? What are the best practices in formulating...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.