Welcome!

Agile Computing Authors: Richard Hale, Elizabeth White, William Schmarzo, Liz McMillan, Moshe Kranc

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


SOURCE KPMG International

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
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...