DR Audience Research

Media Development 2012

The DR Audience Research Department's annual report on the use of electronic media in Denmark Media Development 2012 page 2

ISBN 978-87-995081-1-2 Media Development 2012 page 3

Preface · page 4 Media are developing at varied rates

Chapter 1 · page 6 Turbulence in the TV market

Chapter 2 · page 12 Mergers and advances in the Danish commercial radio market

Chapter 3 · page 18 New services and platforms expanding internet usage

Chapter 4 · page 24 Danes are surfing on smartphones like never before

Chapter 5 · page 30 Five years that changed the TV market

Chapter 6 · page 36 When news breaks! Media and users in connection with breaking news

Chapter 7 · page 44 What should we watch tonight, Honey?

Chapter 8 · page 48 The future of future TV

Chapter 9 · page 54 Music streaming services have broken the sound barrier

Chapter 10 · page 60 Streaming did not kill the radio star

Chapter 11 · page 64 Media devices in 2012: Internet access and hybrids Media Development 2012 Preface page 4

Media are developing at varied rates

SBS played a starring role in the TV and radio markets in 2012. First, SBS bought New Radio and is now the sole player in the market for nationwide commercial radio. Thereafter, SBS was acquired by Discovery Networks, which thus gained muscle in the Danish TV and radio market. More Danes surfed the net in 2012 and it has become a viable option to watch films and TV series online, provided by players including Netflix, YouSee and HBO. 2013 is shaping up to be a truly exciting year for the Danish media market.

By Lars Thunø Audience Research Manager, DR Audience Research Media Development 2012 Preface page 5

It has nearly become a The option is now becoming They contain vast quantities of tradition at this time of year more accessible on the screen music that people can listen to to confirm that the traditional for which the content was whenever and wherever they like. linear media are alive and well. created – the TV at home. Development is moving And we are doing so once again. American broadcasters Netflix rapidly in this area. New players Shifts are occurring, but they and HBO arrived in Denmark are entering the field in rapid are typically minor – at least in in late 2012, bringing with them succession, bringing new relation to TV viewing and radio a vast library of on-demand services and new technologies listening among the Danes. content and a subscription- with them. Danes are expected to It was an eventful year in the based business model. In that watch more on-demand content TV market in 2012. TV 2 became sense, the new services resemble in 2013 than they did in 2012, in a pay channel, which narrowed the music service Spotify, which part because more Danes will its former distribution. gives paying subscribers access discover that their devices are TV 2 had a tough year, while DR to a huge number of songs across capable of showing both broad- TV began in earnest to reverse the spectrum of media devices. cast and on-demand content. a long downward trend, in The Americans are not alone in particular through the relaunch their invasion of the on-demand I hope you enjoy Media of DR1 and a new airtime slot content market; Danish YouSee Development 2012. for TV Avisen. Discovery Networks has also launched YouBio, an on- bought SBS's radio and TV demand service that offers films Lars Thunø channels in late 2012 and have and TV series. Audience Research Manager become a very strong foreign The questions are whether DR Audience Research player in the Danish media market. Danes are prepared to pay for There were major shake-ups in access to films and TV series, the radio market as well, once rather than ownership, and again with SBS in the starring whether technical function is role when they acquired New good enough to make the content Radio's stations and is the easy to find and start up – sole player in the market for every time – with no glitches. nationwide commercial radio. All of this is prerequisite for One topical subject since the TV usage patterns to change dawn of the 2000s has been TV to an appreciable extent. on demand: On-demand has already TV content – shows, films and entailed major changes in our series – that we can choose music listening habits. CD sales to watch whenever and wher- have dropped while Danes' ever we want. This has been music collections have become possible for several years, digitised. With the advent of but primarily on the computer. on-demand services like Spotify, There has been a lot of talk TDC Play and WiMP, music about the use of on-demand listening is pulling away strongly content, but its distribution from personal collections to the and use by the population has new services. not been extensive. Media Development 2012 Chapter 1 page 6

How long do Danes watch TV every day on average? Target group: age 3+ Source: TNS Gallup TV-Meter

3h 15 min 2012

3h 18 min 2011 Media Development 2012 Chapter 1 page 7

tv

Turbulence on the TV market

Changes in channel distribution in 2012 affected the balance of power among the Big Four: TV 2, DR, TV3 and SBS. DR and SBS gained ground, while TV3 and especially TV 2 lost audience shares.

By Signe Villumsen and Henrik Gregor Knudsen DR Audience Research Media Development 2012 Chapter 1 page 8

Danes are watching fragmentation of Danish TV How long do Danes watch TV on average every day? a little less TV consumption. The main winners Target group: age 3+ For the second year in a row, outside the Big Four were TLC Source: TNS Gallup TV-Meter there was a slight decline in and Disney Junior. Shifts also Danish TV consumption: Danes occurred within the Big Four. spent 3 hours and 15 minutes While DR and SBS left 2012 in 2007 every day in front of the screen. a stronger position, TV 2 and 2H 28 MIN Although that is three minutes TV3 experienced a setback. 2008 less than the year before, 2H 47 MIN 2012 still came in third on the TV 2: Oh, what a year list of years with the highest The year 2012 could very 2009 TV viewing. The decline was nearly be called an 'annus horri- 3H 9 MIN greatest among the younger bilis' for TV 2. In conjunction with 2010 population and steepest in the the MPEG2 signal being shut 3H 21 MIN second half of 2012. Among off in early 2012, the main TV 2 15-24 year-olds, time spent channel became a pay channel. 2011 fell in 2012 by 10% overall. But Before the transition, TV 2's 3H 18 MIN this age group also racked up own programming director 2012 the greatest increase in time Palle Strøm forecast a 2% loss 3H 15 MIN spent in recent years. Over the in penetration for the main period of 2007-2010, time spent channel, but the status in by Danes age 15-24 rose on December 2012 was that the average by 16% a year, compared channel was available in about to a general increase among 5% fewer homes than at the the total population of 11%, same time in 2011. The loss so the figures represent more in penetration had severe of a minor dip than a dramatic impact on TV 2 throughout decline in their TV consumption. 2012. Stronger competition, There is no thorough explanation distribution gains for other for this dip. The development channels and the channel's own should rather be seen in light of decline in distribution are three million units of Vitamin D(KK), seen in otherwise usually strong overall market development and of the main reasons TV 2 ended dedicated primarily to the main programmes like Hvem vil være distribution changes for many 2012 with a total audience share channel's programme portfolio millionær? (the Danish version of channels and losses in viewer of 25% – 3.4 percentage points for 2013. Who Wants to be a Millionaire?) the hours for TV 2. lower than at the end of 2011. It TV 2 has experienced a historic entertainment show Vild Danes spent 82% of their is difficult to say whether a less setback. The channel has never med dans (the Danish version time in front of the screen in than stellar programming line-up before lost viewership of this of Strictly Come Dancing), which the company of the Big Four. might also have had something magnitude in a single year. Most had its weakest season ever, After two years of growth, the to do with it But there are seriously, TV 2 lost audience share and the seven o'clock news, Big Four lost 2.2 percentage indications that TV 2 itself might in prime time (20:00-22:30). Early TV 2 Nyhederne, which found points overall. Several smaller feel that programming strength evening also took a hit, while itself overtaken by the late channels outside the Big Four left something to be desired, morning and daytime fared a news on DR1 as the highest- increased their distribution since the channel has launched little better. In the evening flow, rated weekday news broadcast in 2012, resulting in greater Project 100 – a shot of 100 the decline in viewership was in the country. Media Development 2012 Chapter 1 page 9

Audience shares by channel in 2011 and 2012 24 hours Target group: age 3+ Source: TNS Gallup TV-Meter

2012

TV 2 36.6% DR 29.3% TV3 8.8% SBS 7.7% Others 17.6%

2011

TV 2 39.8% DR 28.3% TV3 9.5% SBS 7.0% Others 15.4%

2012 2012 2012 2012 2011 2011 2011 2011

TV 2 DR1 TV3 Kanal 4 24.0% 19.4% 4.3% 1.9% 27.4% 18.8% 4.5% 1.8%

TV 2 Zulu DR2 TV3+ Kanal 5 2.5% 4.2% 3.1% 3.7% 2.7% 4.3% 3.6% 3.3%

TV 2 Charlie DR K TV3 Puls 6'eren 4.4% 1.4% 1.4% 1.8% 3.8% 1.1% 1.4% 1.7%

TV 2 News DR HD Voice TV 3.4% 1.6% 0.3% 3.5% 1.4% 0.2%

TV 2 Film DR Ramasjang 0.7% 1.9% 1.0% 2.1%

TV 2 Sport DR Update 1.6% 0.8% 1.5% 0.7% Media Development 2012 Chapter 1 page 10

However, there were also season when the rescheduling The top ten TV programmes of the year some bright spots for the of TV Avisen from 21:00 to The list is an average for first-run series with a minimum of three episodes TV 2 Group in 2012. TV 2 21:30 on weekdays provided of at least 15 minutes each, including any simultaneous broadcasts on DR HD. Charlie achieved growth for new opportunities for DR1. Sports programming is not included. the fourth consecutive year The channel has not changed Target group: age 3+ and was the third-largest TV the TV Avisen slot since 1994, Source: TNS Gallup TV-Meter channel in Denmark in 2012. so there was some suspense TV 2 Charlie has experienced about whether it would be X Factor, DR1 growth especially outside prime possible to change the Danes' 1,807,000 time. TV 2 Sport managed to habits. Thus far, the message Forbrydelsen III, DR1 increase audience share by is mission accomplished. TV 1,692,000 0.1 percentage point, but the Avisen has gained audience year ended at status quo for share. Between September and Lykke, DR1 TV 2 News. In return, TV 2 Film December, TV Avisen increased 1,435,000 racked up an 0.2 percentage its viewership on Monday Vild med dans, TV 2 point-loss due to penetration through Thursday compared to 1,099,000 loss because the channel is no the first half of 2012 and had an longer distributed by YouSee. average of 679,000 viewers. The Julestjerner, DR1 TV 2 Zulu also experienced rescheduling of TV Avisen also 1,085,000 a loss in audience share of gave DR1 a longer prime time, De bortførte børn, TV 2 0.2 percentage points below allowing space for more new 1,013,000 2011. Overall, the TV 2 Group programme formats of varying ended 2012 with a drop of 3.2 length. This has turned out to Årgang 0 – år 12, TV 2 percentage points in audience be a clear advantage for DR1. 924,000 share, a historic low. After rescheduling the news, Sporløs, DR1 prime time Monday through 900,000 DR: The first year of Thursday from 20:00 to 22:30 success for DR1 since 2003 rose by 4 percentage points Den store bagedyst, DR1 For the first time since 2003, compared to the first half of 900,000 DR1 went from negative to 2012. For autumn 2012, the Hammerslag, DR1 positive numbers in 2012. In a channel had put together a flow 870,000 time when fragmentation has with some of the older strong become a buzzword in relation performers like Hammerslag to TV viewing, DR's main channel (a Danish TV-show about real managed against all odds to estate), Bonderøven (a farmer increase audience share, ending who lives the old fashioned up at 19.4% of total viewing time way), Kender du typen (guessing among Danes. The growth of 0.6 a celebrity based on their percentage points compared to lifestyle), and Sporløs (a Danish 2011 is remarkable for a main version of the Dutch format channel that has been losing Spoorloos), spiced up with new viewership for many years. formats like Den store bagedyst The main explanation is (the Danish version of The Great found in a strong autumn British Bake Off), Hængt ud på Media Development 2012 Chapter 1 page 11

forsiden (interviews with victims Games was a massive hit among pressure on Saturday evenings It was also a good year for of front-page journalism), Rod DR HD viewers and one of the from Voice on TV 2 and Matador 6'eren (the SBS channel for i familien (reuniting estranged reasons behind the channel's on DR1. men), thanks to higher ratings family members), and Undskyld advance from 1.4% in 2011 to for the football matches that vi er her (a docu-series on three 1.6% in 2012. SBS: A good year for are the backbone of the channel. girls with Down's syndrome), Overall, DR's channels left all channels Last but not least, Voice TV and finally topped off with the 2012 stronger than they were Increased distribution recorded a small jump in the seventh rerun of Matador (a at the beginning of the year. All brought the SBS channels an ratings before the channel Danish drama series from the told, Danes spent 29.3% of their advance of 0.7 percentage closed down and became the late seventies) on the weekend. TV time watching DR's channels points to 7.7% of the Danish youth channel 7'eren as of 1 For DR's second-biggest – an increase of 1.0 percentage public's total viewing time. January 2013. channel, DR2, 2012 was not points compared to 2011. Compared to 2011, Kanal 5 quite such a bumper year. achieved a gain of 0.4 percent- New channels coming in 2013 DR2 declined for the second TV3: Pushed harder by SBS age points to 3.7%. The gains Danish TV viewers will be consecutive year to end up TV3 took 8.8% of Danish TV were obtained across program- making a lot of new acquain- at 4.2% of total viewing time. consumption in 2012, a loss of ming schedule, but greatest tances in 2013. DR is shutting Contributory causes included 0.7 percentage points compared in the daytime flow, when CSI down DR HD and DR Update to lower ratings for the Sunday to 2011. The channel's lead over and its various spin-offs are make room for DR3, a channel lifestyle programmes and tough SBS has thus narrowed to 1.1 aired, which combined account for young adults, and DR Ultra, competition for DR2 Tema (DR2's percentage points, the lowest for 16% of Danish time spent a channel for older children, theme night) from Matador in ever. TV3 lost viewers among on Kanal 5. With an average of while DR2 is beefing up news the autumn. The DR Ramasjang young Danes in particular, but in 131,000 viewers, the relaunch of and current events programming. children's channel also lost a the competition with SBS, TV3 Big Brother, touted by SBS as the TV 2 will be giving birth to TV 2 FRI little ground in 2012, ending the remains the strongest among biggest media event of the spring, and SBS has just been delivered year with a 1.9% audience share. all age groups. The setback was was only a modest success of the bouncing baby 7'eren. The loss occurred outside the blamed primarily on TV3+, which compared to the channel's Once again, channel distri- channel's target audience of ended 2012 with an audience normal level in the slot as well as bution proved to be one of the children ages 3-10. share of 3.1%, which is 0.5 to its main competitor, Paradise most important competitive While DR2 and DR Ramasjang percentage points lower than Hotel on TV3. parameters in the fight for had to report viewer loss, the in 2011. The decline is spread The SBS women's channel, viewers in 2012. That fight will notices were the opposite for across every day of the week,but Kanal 4, moved up by 0.1 percent- be heating up in 2013 when TV3 DR's other, smaller channels. DR was attributed to factors age points to 1.9%, attributed and TV3 Puls will be distributed K and DR HD both exited 2012 including ratings slips for series primarily to Tuesday evening, via Boxer and several channels on a high note, primarily due like The Simpsons, Two and a Half when De unge mødre (a Danish will be experimenting with short to increased penetration and Men and How I Met Your Mother, documentary series about young periods of free distribution to expanded airtime. The channels which are aired daily in the early mothers) is still doing very well. attract new viewers. can now be seen in 89% and evening flow. The reality series, which will It was an eventful year in 70%, respectively, of Danish TV TV3 Puls ended 2012 reach its 400th episode in 2013, 2012 and 2013 is shaping up to households. DR K ended the year unchanged compared to 2011. has an average viewership of be anything but boring. with an audience share of 1.4% However, TV3 lost 0.2 percent- 146,000 and set a new record and thus managed to increase age points for a final score of in 2012 with 275,000 viewers of its share of viewing time by 4.3%. Although losses were a special episode on the Stine 0.3 percentage points. 24 hour spread across the days of the case, which is very well-known transmission of the Olympic week, the channel was under among the series' core audience. Media Development 2012 Chapter 2 page 12

How long do Danes listen to the radio every day, on average? Target group: age 12+ Source: TNS Gallup Radio Meter

2h 01 min 1h 59 min 2011 2012 Media Development 2012 Chapter 2 page 13

radio

Mergers and advances in the Danish commercial radio market

It was a tumultuous year in the radio market in 2012. SBS Radio centralised the commercial radio market with the acquisition of New Radio and is now the sole player in the market for nationwide commercial radio. Radio24syv celebrated its first birthday and gave DR some competition in nationwide talk radio. Meanwhile, the politicians have for the first time drafted a plan for closing down the FM broadcast network.

By Dennis Christensen and Peter Niegel DR Audience Research Media Development 2012 Chapter 2 page 14

Measured by nearly all para- to Radio24syv, DR's new radio Top 10: Audience shares distributed across channels in 2011 and 2012 meters, 2012 was an eventful plan was fully implemented as 24 hours year for Danish radio. of 1 November 2011. P1 and P2 Target group: age 12+ First, the commercial side of are now sharing a single FM Source: TNS Gallup Radio Meter national radio was consolidated in frequency. Thus, 2012 is the first a single company when SBS Radio full year for which we can report acquired New Radio stations the status of DR's new channels, 2012 2011 Radio 100, Radio Soft and Radio new direction and new reality Klassisk. Jim Receveur from the with only three FM channels P4 Total acquired New Radio took the CEO instead of four. The last has 42.5% chair, succeeding SBS's former proven to have major impact 42.9% CEO, Frederik Meyer. on DR. Listening to P1 and P2 P3 Second, the two new niche declined markedly and since the 20.8% channels, Radio Klassisk and two channels have more shared 19.9% Radio24syv, failed to attract listeners than before, they are the number of listeners they in touch with considerably fewer P1 expected. Danes overall. DR was expected 6.1% Third, 2012 was the year when to lose listeners once P1 and 6.8% Danish politicians announced a P2 began sharing the same Nova fm digital vision for Danish radio. FM frequency. P1 and P2 are 3.8% However, the vision did not garner both still independent 24-hour 4.3% immediate support in Danish channels on digital radio. homes and the digital listening During the course of 2011, Pop FM revolution did not occur in 2012. all of DR's digital radio channels 2.9% Although novelties were were changed to become hosted, 2.2% abundant in 2012, there was also unlike before when some channels P2 Klassisk much that remained the same. played non-stop music almost 2.6% P2 and P4 are still have by far the exclusively. A survey of the 4.3% highest ratings in the country. distribution of digital radio The radio medium was used in Danish homes conducted Radio 100 weekly by 93.2% of the Danish by DR Audience Research in 2.3% population, only slightly below partnership with Megafon in 2.4% the figure for 2011. Still, average June 2012 showed that 44% of The Voice Total radio listening time among Danes Danish households have at least 1.8% fell by two minutes a day, which is one digital radio in the home. In 2.2 % precisely the same trend we have addition, we ought not forget seen for many years now. that people can also listen to DR P7 Mix digital radio via computers, 1.5% New channels, new mobile phones, iPads, etc. 0.7% listening levels Despite all the technology DR P5 Forced by circumstances options, it must be acknowledged 1.4% related to the surrender of the that the digital revolution failed 1.6% fourth FM frequency (which DR to occur among listeners in PD had formerly broadcast on) 2012. Although the percentage Media Development 2012 Chapter 2 page 15

of DR radio listening on digital Top 10: Number of weekly listeners distributed across channels in 2011 and 2012 platforms rose from 10% in 2011 24 hours to 14% in 2012, this advance Target group: age 12+ was due mainly to the decline in Source: TNS Gallup Radio Meter FM radio listening. Total digital listening to DR rose slightly, from 10.5 minutes per Dane and 2012 2011 per day to 12.8 minutes. The decline in FM listening was due P4 Total mainly to the merger of P1 and 2,732,000 P2. Radio24syv has not been able 2,830,000 to compensate for the setback. P3 It must also be acknowledged 2,339,000 that none of DR's digital channels 2,303,000 has been highly successful among listeners. The best performer Nova fm was P7 Mix, which with a weekly 1,245,000 listenership of 420,000 has 1,330,000 achieved a certain measure of The Voice Total success. Generally speaking, 746,000 however, the six purely digital 812,000 channels have been unable to attract an equally large share P1 of Danish listening time as the 633,000 old portfolio of digital jukebox 717,000 channels. Listening time per Pop FM channel has gone up, but not 615,000 enough to compensate for the 588,000 reduction from 29 digital radio channels at its peak to the Radio 100 current seven. 566,000 This development combined 550,000 with the decline for P4 means DR P7 Mix that DR's weekly reach has 420,000 now fallen from 86% to 83.1%. 231,000 In parallel, DR's total audience share slipped from 78.4% in P2 Klassisk 2011 to 75.9% in 2012. 415,000 A lot was said and written in 439,000 2012 about the new kid on the Radio24syv block, Radio24syv. At the end of 297,000 2012, the channel had 297,000 71,000 weekly listeners and a 1.4% share of total radio listening Media Development 2012 Chapter 2 page 16

and thus clearly failed to reach the New Radio channels Radio its own goal of a half million 100, Radio Soft and Radio weekly listeners. Meanwhile, Klassisk. The managing director Radio24syv and P1 combined of these stations took over failed to appreciably increase the position of CEO of the the number of Danes who now one-and-only nationwide listen to talk radio, despite the commercial radio operator. This considerably expanded offering. development meant that ddr, the From January to October 2011, sales partnership between the before Radio24syv started, New Radio stations and several P1 alone had 719,000 weekly local radio operators, expired at listeners and a share of 6.9% of the end of 2012. radio listening. After Radio24syv The new SBS company arrived, total weekly talk radio reached 14.4% of radio listening listenership was 748,000 and the in Denmark in 2012 – the same two channels had a combined stations were at 13% in 2011. audience share of 7.5%. Clearly, SBS now controls six more or less what has happened is that nationwide radio brands, including roughly the same number of the two nationwide commercial listeners are now split between broadcast frequencies, Nova fm two options. and Pop FM. With all six brands Radio24syv has managed gathered in a single player on the to put focus on time-shifted net, the company has built up a listening, streamed or pod- radio portfolio which it hopes will casted programming, for be in a position to take on the which the channel has high DR channels. Over the span of hopes. Unfortunately, there one week, SBS had an average are no common measurement of 2,524,000 listeners in 2012, standards and controls for compared to DR's 3,939,000. measuring time-shifted Looking at the 'commercial listening. For this reason, we target audience' (people aged cannot yet say anything about 12-50), the ratio was somewhat the consumption of time-shifted more equal at 1,775,000 for SBS radio. DR and Radio23syv are and 2,227,000 for DR. working on common standards, SBS's channels cross the so next year's issue of Media spectrum from the two primary Development will be able to channels, Nova fm and Radio report the status of this 100, to the more age-formatted component of radio listening. stations of Pop FM and Voice. And from Radio Soft, which Commercial centralisation plays only soft pop music, all the It was announced just prior way to the classical alternative, the summer industrial holiday Radio Klassisk, which does not period that SBS had acquired have many listeners in purely Media Development 2012 Chapter 2 page 17

numerical terms (89,000), but The potential advantage would many of them are unique for be that DR will be able to move commercial radio (48% of Radio P4 to DAB, and since P4 alone Klassisk's listeners do not listen accounted for 42.5% of radio to any other commercial radio listening in 2012, this will have over the course of an average major impact on what percentage week – by comparison, the figure of radio listening among Danes is 11% for Nova fm). However, this can be digitised. This is crucial, has proved not good enough for since the agreement established SBS Radio, which has put Radio that the FM band can be shut Klassisk up for sale. Naturally, down in 2019 only if 50% of because the sale of commercial Danish radio listening is digital by airtime on a classical music mid-year 2018. station is a completely different In 2009, 9% of DR radio challenge to selling spots on listening was digital, rising 'general' commercial radio. to 10% in 2010 and 11% in The challenge for SBS is 2011. By 2012, that figure equally clear as it has been was 14%, but the somewhat for all commercial players in larger gain between 2011 and the national radio market: To 2012 cannot be ascribed to become a lucrative business. higher digital growth, but Whether SBS believes the rather to a downturn in FM best way to achieve this is listening – primarily due to the through taking listeners from aforementioned development DR, improving efficiency or a of Radio24syv, P1 and P2. Even combination of the two may though the number of listening become apparent in 2013. minutes rose slightly for digital radio in 2012, the percentage of The future, new media Danes who listen weekly to DR agreements and digitisation digital fell from 31.2% in 2011 to A new media agreement 30.9% in 2012. came together in October 2012 There is thus some way to between all parliamentary parties go to reach the 50% threshold except the Liberal Alliance. With required for FM to be shut down. this agreement, Danish media Regardless of whether or not policymakers indicated that 50% of listening becomes digital the future of Danish radio is by 2018, this has signalled that if digital. A government inquiry was listeners accept the digital vision launched in order to clarify the and increase their digital radio technical feasibility of DR and the listening, major changes are in commercial stations switching the offing in the radio market. places in the digital broadcast network while simultaneously upgrading to the DAB+ standard. Media Development 2012 Chapter 3 page 18

Top 5: The most popular web sites in Denmark Based on January-September 2012 and calculated according to time spent on the individual site in relation to total time spent. facebook.com Target group: age 15+ 18.3% Source: Gemius/FDIM

google.dk 11.5%

youtube.com 3.8%

google.com 3.7%

ekstrabladet.dk 2.4% Media Development 2012 Chapter 3 page 19

net

New services and platforms expanding internet usage

Cross-platform use, new services and new payment forms are key headlines for developments on the internet front in 2012. When Danes surf the net, they still spend the most time on Google, YouTube and Facebook.

By Carsten Andreasen and Uffe Høy Svenningsen DR Audience Research Media Development 2012 Chapter 3 page 20

Three out of four Danes Facebook and Google rule Use the internet daily or almost daily report that they use the internet There is at present no Target group: age 25-39 almost daily. Thus, we are talking coordinated market research Source: TNS Gallup Index Denmark (Q2 and Q3 2011/2012) about an increase of four in Denmark across the variety percentage points since 2011. of publishing platforms such The growth, however, is not in as PCs and mobile phones. 2012 2011 traditional usage on ordinary Certainly, most market players desktop and laptop computers, still have the bulk of their traffic Use the internet in general but rather use via smartphones on their traditional web sites 92% and tablets. The mobile tendency but are experiencing higher 88% gained strength in 2012 and for usage of mobile web sites and the first time there seems to be apps and some publish only apps, Use the internet from a PC a clear reduction in traditional such as Instagram. 84% use of the net from ordinary If we look only at traditional 87% computers. Among Danes under web sites, Gemius and Danske 50, net usage via traditional Medier measure around 300 of Use the internet from a mobile phone computers has declined slightly, the biggest sites among Danish 60% while use of the net over mobile net users on a monthly basis. 36% phones increased strongly. More The measurements show that than half of Danes aged 25-39 Facebook, Google and YouTube now use the net almost daily (also owned by Google) are from their mobile phones, while the biggest sites in terms of 84% of the same age group numbers of Danish users and access the net from a computer. time spent. Combined, these For the latter category, this providers account for 37% of entails a decline of three Danes' time spent on the net, percentage points since 2011. a small increase compared to There is a parallel tendency the same period in 2011. Beyond in which more web sites are these three, ekstrabladet.dk is switching to scalable design in by far the largest site in terms an attempt to give users the of time share, followed by tv2.dk. same screen experience across Danes are also happy to make a platforms (PC, mobile phones, good deal on the net: two sites etc.) Apps are set to remain an for buying and selling second- important product with vast hand, Den Blå Avis (dba.dk) and supply and demand. For example, guloggratis.dk, are on the list usage of DR's news app is far of the twenty websites Danes greater than usage of DR's spend the most time on. mobile web site. The two most-talked about social media are Facebook and Twitter. With about 2.8 million Danish users on facebook. com, Facebook has about eleven times as many users Media Development 2012 Chapter 3 page 21

as Twitter.com. However, it is there has been growth in Top 15 Percentage of time spent on the net in 2012 difficult to calculate the true mobile websites by many Danish Based on January-September 2011 and 2012 and calculated on the basis of time spent size of the two social networks, internet players, so a portion on the individual site in relation to total time spent. since Facebook is increasingly of traffic has moved from the The numbers in brackets refer to the percentage-point change compared to 2011. being accessed from mobile traditional websites to mobile- Target group: age 15+ phones and is not included adapted sites. In light of overall Source: Gemius/FDIM in the mobile measurement. development, wherein younger In addition, Twitter has been Danes report that they are facebook.com* used for a long time on mobile using the net less often via 18.3% (0.) phones and via other web sites traditional web sites, it is likely google.dk* and apps, such as Twitterific. that the use of smartphones 11.5% (0.3) Nonetheless, Denmark is still in particular is linked with the clearly Facebook country. Danes setbacks that have occurred youtube.com* spend more than 200 times more for certain sites. There are no 3.8% (0.3) time on facebook.com than on total user figures for individual google.com* twitter.com. There are no clear sites on all platforms as there 3.7% (-0.1) figures for the distribution of is no existing integrated new services like Instagram and measurement that can measure ekstrabladet.dk Pinterest, but thus far they seem across platforms, so the actual 2.4% (0.1) to be getting more publicity than context cannot be calculated. tv2.dk actual use outside the narrow 1.3% (-0.3) circle of first-movers. Robust increases in streaming content dba.dk JP/Politikens Hus the big In 2012, Danes gained 1.2% (0.0) winner among media sites access to new streaming msn.dk If we look at media sites, those content that provides the 1.2% (-0.2) that belong to JP/Politikens Hus opportunity to watch films and spring immediately to mind. These TV series and listen to music. windowslive.dk sites have experienced growth The music service Spotify 1.2% (-0.6) in the number of weekly users in was introduced in Denmark krak.dk recent years. Both ekstrabladet. in late 2011 and there was 1.0% (0.0) dk and politiken.dk increased the widespread media coverage number of weekly users by 2% when the American services dr.dk during the period of January to Netflix and HBO launched their 1.0% (0.0) September 2012, which is far offerings to Scandinavian bt.dk from average, as most Danish users. These services were 0.9% (-0.1) media sites are losing ground. launched simultaneously in the That is especially the case for Scandinavian countries, which tdc.dk berlingske.dk, which has lost 11% was not the case for Spotify, 0.8% (-0.1) and tv2.dk, which has lost 12% in in part due to legal conditions guloggratis.dk The list is based on two separate surveys, both weekly users. Other major media that had been in place for 0.6% (0.0) performed by Gemius/FDIM. Validity is higher for sites like dr.dk, bt.dk and jp.dk several years in Norway and the figures of FDIM members than of providers komogvind.dk* have also suffered reverses, but Sweden before Spotify came that are not members of FDIM. (-0.1) to a lesser extent. In parallel, to Denmark. Danish players 0.6% *Non-FDIM member Media Development 2012 Chapter 3 page 22

have also implemented new Weekly user figures for the biggest Danish media sites streaming services. For example, YouSee launched their streaming Based on weeks 1-39 in 2011 and 2012 and the number of weekly users. service, YouBio, in 2012, and The figure in brackets refers to the change expressed as a percentage compared to 2011. other players including Stofa, Target group: age 7+ TV 2 and MTG also have their Source: Gemius/FDIM own streaming services.

The next year ekstrabladet.dk The Danish internet market 968,000 (2 %) is both stable and changing at dr.dk an incredible rate. While Danish 913,000 (-4%) consumption of traditional web pages is not changing much, tv2.dk mobile use of both mobile 851,000 (-12%) sites and apps is growing at an bt.dk explosive rate. Growth in mobile 642,000 (-7%) internet use is expected to be very high again in 2013, driven by politiken.dk new capabilities, more devices 445,000 (2%) and the spread of even higher jp.dk speeds with 4G/LTE. At the same 370,000 (-7%) time, services like Netflix, YouBio and HBO are marching into the epn.dk market. They may want to induce 271,000 (3%) their customers to use the net sporten.dk on even more devices, especially 249,000 (-7%) Smart TVs and game consoles, while increasing numbers of berlingske.dk Danes will be acquiring tablets. 237,000 (-11%) It will be exciting to see how high borsen.dk the distribution and use of the 160,000 (-7%) new services will become among Danes and whether the growth will find a more natural level by next year. Regardless of what happens, 2013 is sure to be a year when even more bits and bytes will be speeding through the air and through wires. Media Development 2012 Chapter 3 page 23 Media Development 2012 Chapter 4 page 24

uses the internet on a mobile phone at least once a week 19% 34% 48% 2010 2011 2012 Target group: age 15+ Source: Megafon for DR Audience Research Media Development 2012 Chapter 4 page 25

mobile

Danes are surfing on smartphones like never before

Half of all Danes own a smartphone. Our internet usage on smartphones is rising markedly and we can confirm beyond all doubt that the modern telephone has become consolidated as an independent media device. Tablets have also taken Danish homes by storm: 30% of the population either own or have access to a tablet.

By Jacob Lyng Wieland DR Audience Research Media Development 2012 Chapter 4 page 26

Smartphones are smart. They changed since 2011, but more can be expanded with apps and Danes are beginning to use mobile with internet access, they have internet capabilities more often, become an inevitable part of our as the survey also shows that lives and our media consumption. 48% of Danes aged 15 and above But when the smartphone has access the net via their mobile run out of juice or the mobile phones at least once a week. network is down, we cannot In 2010, only 19% used the buy bus tickets, use the travel internet from their mobile planner to find directions, show phones at least once a week. our boarding cards at the In other words, using the little airport, or post pictures and pocket computers has become comments on Facebook. an integrated part of everyday More than half of all Danes life for many Danes. aged 15 to 70 now own a smart- phone, according to the TNS Smartphones are smoking Gallup Mobile Devices Survey hot among the young performed in the spring of 2012. When Danes use our That is about the same level smartphones, we talk for one as the 'EU5' countries (United fourth of total time spent. Kingdom, Italy, France, Germany Smartphones can do a lot more and Spain) according to a survey than transmit a phone call by ComScore in October 2012. wirelessly through the air, so Data charges have dropped there is plenty else to spend dramatically, the devices are the rest of our time doing. Apps considerably more user-friendly tremendously expand potential and Danes are now extensively uses. A smartphone can be used using their smartphones for as a spirit level, a GPS in the car, much more than just voice calls a piano ... and the list goes on. and text messages. The Gallup A survey by TNS Gallup Mobile survey shows that all age groups Devices show that smartphone are on board, but relatively owners in all age groups talk on speaking, the 15-29 age group their phones for about the same bought the most smartphones in number of minutes every day. 2012. This is connected to more When we look at activities other inexpensive smartphones having than voice calls, however, there come out on the market, along are distinct differences. The with cheaper subscriptions. younger cohort of smartphone A survey performed by Megafon owners, those aged 15-29, for DR Audience Research in spend a full 75 minutes a day October 2012 also shows that using their phones for things 60% of Danes report that they other than voice calls, compared own a mobile phone with internet to 49 minutes for people aged access. The level has thus not 30-49 and 21 minutes for Media Development 2012 Chapter 4 page 27

people aged 50+. Thus, it is ago. This indicates that we do primarily the younger stratum not often use some of the apps Most Most of the population who use their we install. But they may still frequently popular smartphones for purposes be very useful. A torch app is a used app other than voice calls. lifesaver on occasion when you Danes are using apps and cannot see the keyhole and need apps categories web sites more often than they to unlock your door. And if you did just a year ago. In 2012, are travelling abroad and decide 1. Facebook 1. Games smartphone owners used apps to buy a pair of shoes, a shoe- 2. Wordfeud 2. Weather about four times a day and size converter can be a handy 3. Gmail 3. Social networking accessed web sites about three invention when measurements 4. YouTube 4. Music and radio times a day from their mobile are not given according to a 5. DMI local weather 5. Banking devices. In 2011, they used apps familiar scale. Smartphone three times a day and web sites owners also report that they twice a day. Again, the younger are spending less money on apps Source: TNS Gallup Mobile Devices stratum of the population are than they did a year ago, when the most active users of apps they spent DKK 14 per month, and web sites via smartphones. compared to DKK 9 in 2012. More than half of all Danes are using fewer smartphone users are guided apps and spending less by friends and family when money on them they find new apps. App stores, Although smartphone where the little programs can be owners use apps several times downloaded, are not considered a day, that does not mean they as important. use many different apps. We As far as content goes, the were able to confirm in Media games category is particularly Development 2011 that it is popular. TNS Gallup's estimates hard for apps to gain preferred show that more than 60% status among Danish users, of smartphone owners have since the number of different downloaded one or more games apps we actually use frequently in the past six months. Games is limited. The 2012 TNS Gallup are followed in the rankings by survey shows that smartphone weather services and social users are in fact using fewer networking apps. The list of apps than they were just about the most popular apps and a year ago. In 2012, Danes used app categories give the clear about seven apps on a weekly impression that apps are used basis, a decline from eight apps mainly for entertainment and in 2011. On the other hand, we small services oriented toward are installing a few more apps the local community: Local than before. On average, users weather and keeping up with have installed 19 different apps, friends and acquaintances. an increase from 16 one year Among social media, Facebook Media Development 2012 Chapter 4 page 28

tops the list of apps smartphone operating systems, since they owners use most often. The must develop separate apps Wordfeud game comes in second for each of them. Two players in and Gmail is in third place. One particular are the heavyweights common denominator is that in smartphone operating they are all free. systems, Google and Apple. The Google Android system is found Text messages slipping on smartphones from Samsung, Until recently, there was HTC and LT, while the Apple iOS is virtually constant growth in only found on their own iPhones. the number of text messages, There is no doubt that the a situation that lasted for Apple iPhone is the first love many years. But growth stopped of many Danes. More than one in the first half of 2011 and the third of all Danes who own a number of sent text messages smartphone have an iPhone. has since declined. The Danish HTC is the second most popular Business Authority's IT and brand, but Samsung has also Telecom Statistics for the first made significant strides in the half of 2012 reveal that the Danish market. At present, number of sent text messages the main battle seems to be was 5.7 billion compared to 6.2 between the Apple iOS and billion during the first half of 2011. Google Android operating It seems reasonable to assume systems. Nokia has chosen to that the need for brief messages partner with Microsoft and have has not declined and that the based their new smartphone on decline instead indicates that we Windows Phone, which has yet to are using communication options achieve widespread distribution. other than text messages to deliver them. A great many people A lot more Danes have use Facebook to communicate access to tablets brief messages, which is also The smartphone's overgrown possible via social networks cousin – the tablet – is similar like Twitter. New services and to the smartphone to a certain features in smartphones can extent. Users can download apps be used and social games like for them and they typically run Wordfeud may also play a part on the same operating systems. in the decline of text messaging, The similarities end there for since these games have a built-in the obvious reason that a chat feature. tablet is not a telephone you can carry around in your pocket. Apple and Google As a result, the tablet is not a still dominate personal device in the same way, App developers must take but rather a device that can be into account the dominating shared among the family. Media Development 2012 Chapter 4 page 29

The Megafon survey shows operating system familiar to that 30% of all Danes either own users of laptop computers. or have access to a tablet in the As of now, tablets are still a household. Although 24% supplement to other internet report that they own their devices in the home, especially own tablets, it is reasonable to conventional PCs. According assume that many of them lend to Gallup, only 8% of tablet them to partners and children owners report that they have in the household. Tablets are replaced their computers with especially popular among thirty- a tablet. The rest indicate that something Danes: 40% in this age their tablets are a supplemental group have access to a tablet. device. Tablet owners report that Ranging in price from about DKK they use their tablets especially 2,500 to DKK 6,000, tablets are for reading and sending email, relatively expensive. This may using various kinds of apps and to explain why employed Danes aged gain easier access to Facebook. 30-39 are the group that has A tablet can also be used as an most widely adopted the tablet, e-reader and about one fourth rather than the very young. of tablet owners use their The Apple iPad is the preferred devices for reading books. About choice among Danes who buy a the same percentage use their tablet. The TNS Gallup Mobile tablets to watch films and TV. The Devices survey shows that the conclusion is that although media Apple iPad enjoys a market share content is part of tablet use for Apps and smartphones of a full 8 out of 10 tablets, while many Danes, communication and market share for the runner-up, social media are still the fulcrum An app is a program that can be installed on a mobile phone. the Samsung Galaxy, is less than of tablet usage. The mobile phones upon which apps can be installed are typically 1 out of 10 tablets. called smartphones because they are a hybrid of a small computer There is a budding market for and a mobile phone. An app may be anything from special offer small computers. 'Netbooks' services from grocery store chains to a sophisticated GPS can be likened to tablets in many system that can guide you all over the world. respects, but while tablets usually lack keyboards and are primarily only a screen, a netbook is a very small portable About the surveys computer that can in some cases also be used only as a TNS Mobile Devices: TNS Gallup's survey of smartphones and screen. About 1% of all Danes tablet among a representative sample of Danes aged 15-80. currently own a netbook. Spring 2012. Microsoft's latest 'Surface' tablet is further blurring the Megafon's Smartphone survey for DR Audience Research. lines between laptop, netbook Conducted in autumn 2012 among a representative sample and tablet, as it is a tablet with a of Danes aged 15+. built-in keyboard and a Windows Media Development 2012 Chapter 5 page 30

2008 2009 2010 2011 2012 Media Development 2012 Chapter 5 page 31

Five years that changed the TV market

Recent years have brought major changes to the Danish TV market New channels, increased TV viewing, changes in distribution forms and new levels of distribution for Danish channels are among the key factors that have changed the Danish TV landscape.

By Kurt Holm Jensen DR Audience Research Media Development 2012 Chapter 5 page 32

The Danish TV market looked between 2007 and 2010 were Delayed digital splash expectations did not come to very different in 2007 to how it probably that Danes had gained The distribution of Danish pass in the first round. looks today. Back then, Danes access to more channels and TV channels has undergone Two new milestones in Danish watched TV for 2 hours and invested in fancy new flat-screen major changes in recent years. TV history were set in January 28 minutes a day - a level that TVs. Like the rest of the world, The analogue TV signal was 2012. First, the old MPEG 2 had been relatively stable for the Danes were affected by the shut off in November 2009. coding standard was replaced 15 years with minor swings of financial crisis, which suddenly The transition to digital TV entirely by the newer MPEG 4, typically 2-3 percent from one made cheap entertainment at was considered by many to which provides bandwidth for year to the next. Audience share home more appealing. be a milestone in Danish TV more channels at higher quality. for the two main channels, TV 2 The global financial crisis history. Even the antenna Second, TV 2's main channel and DR1, had remained stable has resulted in generally lower households, which had despite became a pay channel. TV 2 had around 64% for a number of consumption and thus lower other alternatives maintained been aiming for this for a long years. The much-discussed incentives for advertisers to buy only this form of reception, time, with reference to the fact fragmentation had not airtime. After a period of high could now gain access to many that that secure subscription happened to any serious extent, growth rates from 2003 to 2006, different TV channels with their revenues could supplement which some had otherwise the crisis hit worldwide in 2007. ordinary TV antennas. Public earnings from a more fluctuating predicted. There were only three Over the first couple of years, service TV and commercial advertising market. Overall, significant TV networks, TV 2, the Danish advertising market TV both benefited from the these changes meant that many TV3 and SBS, and the balance of reacted only with stagnation, but better location in the frequency households were forced to power between them had been the full effect of the financial spectrum provided by digital invest in new flat-screens or relatively stable for several crisis hit in 2009. At a single TV. DR gained space for three TV boxes and change TV years. The Danish economy and blow, advertising revenues were new channels, DR HD, DR K and providers or subscribe to new Danish consumption were going set back to levels unseen for DR Ramasjang. The Swedish channel packages. This has full bore and TV advertising many years. Some of the holes company Boxer won the right entailed significant changes in revenues just kept on rising and have been patched since then, to distribute the commercial channel distribution. showed no signs of slowing down. but 2012 was another difficult segment of Danish digital The most dramatic distri- Five years later, the TV market is year. In November 2012, the terrestrial TV and there were bution consequence after the very different. Institute for Advertising & Media widespread expectations that switch to MPEG 4 was a massive Statistics forecast a result in more of the smaller commercial inflow of subscribers to Boxer. Less money, more TV viewing the neighbourhood of minus 9% channels included in Boxer's The households that had been The most striking change compared to 2011. The logical channel packages would content with a few channels in comparison to 2007 is the conclusion is that the seemingly increase their reach. But the were now forced to find a dramatic increase in total TV expected and inviolable growth final roll-out in 2009 did not commercial TV provider if they viewing, which seems to have rates from the beginning of the initially create the expected big wanted to continue receiving stabilised at a higher level. Viewing millennium are a thing of the splash in the TV market, mainly TV 2. By early February 2012, increased by 36% between 2007 past. In return, subscription TV because Boxer's customer base Boxer had accumulated 300,000 and 2010, when daily TV viewing as a business model has proved ended up smaller than many had households as customers, which reached 3 hours and 21 minutes, resilient under the conditions predicted. As of 1 January 2010, was the company's stated a record that still stands. of the financial crisis, and with a two months after the analogue objective for its first ten years Viewing time dropped slightly in suddenly less certain advertising TV signal was shut off, Boxer on the Danish market. 2011 and 2012, but remains at a market, the TV stations' financial had 45,000 households in the The winners in connection historically high level. Two of the perfor-mance has depended to fold. While some had expected a with the distribution changes most significant reasons for the a greater extent on subscription dramatic fragmentation of TV included SBS, DR's small strong increase in TV viewing revenues. viewing after digitisation, these channels and TLC, which the Media Development 2012 Chapter 5 page 33

switch to MPEG 4 made available an expansive international interest in TV 2 Sport has been in far more Danish homes. TV strategy, as Discovery also sold to the co-owner MTG/TV3 2's main channel suffered the finalised acquisitions and and in return TV 2 will have to greatest loss in distribution and partnerships in 2012 elsewhere do without the associated at the end of 2012, the channel in the world. The result for the audience shares and sub- could be seen in about 5% fewer Danish TV market was that in scription revenues in 2013. households than in 2011. TV 2's one blow Discovery has become Beyond the acquisition of TV distribution loss combined with a major media house integrated 2 Sport, TV3 has reacted to higher distribution of the small across all media and throughout SBS's increased distribution commercial competitors had a Scandinavia, with all the synergy through Boxer by negotiating pronounced negative impact on effects that this entails. The an agreement for space with TV 2's total viewership. combination of audience shares Boxer so the main channels TV3 In many ways, it seems that the from SBS and Discovery's and TV3 Puls will make up for expected consequences of the current channels is approaching part of the loss. TV3+ will not, digitisation in 2009 were delayed one fourth of commercial however, be added to Boxer's by a good two years and did not viewing on commercial channels packages. It has been announced have any serious effect until the among 21-50 year-olds, and that TV3 and Boxer have not MPEG 2 signal was shut off and we are going to experience an been able to agree prices. TV 2 simultaneously became a advertising market in which the Viasat is still selling satellite pay channel. This indicates that balance of power among the TV subscriptions and is thus a a significant portion of Danes three main players is more equal direct competitor to Boxer for are reluctant to change how than ever before. TV distribution, but the bottom they receive TV channels until Fortune smiled on DR with the line for Viasat must show a absolutely necessary. relaunch of DR1 and the main profit – that wider distribution channel enjoyed great success can pay off despite the risk that The storms are still raging in autumn 2012. But the rest of subscription customers will be Although recent years and the channel portfolio must also lost. One final change for TV3's especially 2012 have been be adjusted and the continued status in the TV market is that stormy ones in the TV market, reshuffle has been announced: TV3's sales department will be there is nothing to indicate the DR2 will be relaunched as managing the sale of advertising winds are going to die down a public service news and airtime on MTV and VH1 as of any time soon. The channels information channel, DR Update 13 January. This will give TV3's have plans up their sleeves will be shut down, DR HD will sales department greater for fending off some of the become DR3 for viewers in the opportunities to sell airtime upheavals and things are not 15-39 age group and the new DR to advertisers whose target going to go quietly. Ultra, a channel for children of groups are younger. The first and most significant school age, will be added. The fight to reach most change in the lead-up to 2013 TV 2 has announced that it will Danish homes does not end with was that Discovery Communica- be giving higher priority to the TV3's agreement with Boxer. tions acquired SBS's Nordic main channel with a budget of The commercial channels are TV and radio channels in late DKK 100 million. In addition, the nearly falling all over each other 2012 for a reported sum of new TV 2 FRI channel, focused in the scramble to give viewers about DKK 10 billion. The buyout on recreation and nature, will free access for the first two of SBS seems to be part of be launched in May. TV 2's half months of 2013. TV3 and Kanal 5 Media Development 2012 Chapter 5 page 34 were the first to be introduced 2007 2008 2009 as free channels in January and February and TV 2's main channel has since followed suit. • The first signs of the • Distribution of flat-screen • TV3 Puls starts. SBS has made a second international financial TVs in Danish households strategic adjustment in 2013, crisis appear. around 40% according to • Boxer begins broadcasting albeit on a smaller scale than TNS Gallup Annual Survey. in Jutland and on Funen in the sale to Discovery. Following February, followed in May the launch of the 7'eren humour • Boxer wins the competition by Copenhagen. and comedy window on Voice to run the digital, terrestrial TV in 2012, SBS is now going broadcast network in Denmark. • On 1 November, the all the way with their fourth analogue signal is shut off, channel, shutting down Voice, • TV viewing hits a record- Boxer is officially launched and broadcasting 7'eren all day. high at year-end with and DR starts DR HD, DR K Targeted at 15-25 year-olds, 2 hours and 47 minutes daily. and DR Ramasjang. 7'eren will present a scheduled Growth continues at the humour slot with content same rate through 2010. • The TV advertising market from Casper Christensen's experiences a devastating production company Douglas decline as a result of the Entertainment. financial crisis. There is no doubt that more Danes will be using streaming services in the next few years. These new distribution forms will also be something that TV stations and TV content providers will have to address, as the battle for viewers' time and money will also have to be fought on this battleground. Media Development 2012 Chapter 5 page 35

2010 2011 2012 2013

• TV viewing rises again and • The explosive growth in TV • TV broadcasting via the MPEG 2 • TV 2 gives the main 2010 becomes the year that viewing stops and seems to compression standard ends. channel higher priority with still holds the record for have stabilised at a high level MPEG 4 continues as the DKK 100 million. the most TV viewing: 3 hours of more than 3 hours daily. prevailing standard. and 21 minutes. • As of 1 January, TV3 and TV3 • TV 2 becomes a pay channel Puls are now also distributed and loses about 5 percentage through Boxer. On the other points in distribution, from hand, TV 3+ is still excluded 99.2% to 94.5% of TV house- from the Boxer packages. holds at the end of 2012. • SBS launches 7'eren, • Several streaming services which has now entirely are launched: Netflix, YouBio, taken over Voice TV's spot HBO Nordic and Viaplay. in the channel packages.

• TV 2 sells its half interest • DR overhauls its channel in TV 2 Sport to TV3/MTG. portfolio. DR is relaunched as a public news and information • Discovery Communications channel, DR Update is shut buys SBS's Nordic TV and down and gives way to a radio stations for about new children's channel for DKK 10 billion. older children, DR Ultra, and DR HD is shut down and reborn as DR3, aimed at viewers aged 15-39.

• TV 2 FRI premieres.

• TV3/MTG relaunch TV 2 Sport as TV3 Sport 1 and adds a new channel, TV3 Sport 2. Media Development 2012 Chapter 6 page 36

Breaking News Media Development 2012 Chapter 6 page 37

When news breaks! Media and users Br in connection with breaking news

The headlines are huge. Something has happened. There is breaking news. Danish media have adopted the term and use it liberally. DR Audience Research has studied how media users orientate themselves when news breaks. Danes keep up with events through a wide variety of media and much has happened since the 1980s when radio ruled. Most people heard about breaking news on TV in 2012, but the internet is often used to find out more about the story.

By Niels Marslev DR Audience Research Media Development 2012 Chapter 6 page 38

The news mill grinds constantly evening, pulls the average down, not be received by especially and, especially since the launch the stories were discovered many at the time, and it was of TV 2 News in 2006, Danes are by an average of 87% over the not until 12:30 in the afternoon fed a steady stream of breaking course of the first day – and that an actual special report news on their TV screens. When by 80% within an interval that could be cobbled together. TV the internet media want to can be described as 'at once' or viewers today, especially since shout a little louder than normal, 'shortly after' first appearing in the advent of TV 2 News, have they often use large headlines the media flow. become accustomed to much on a yellow background to make faster updates. In fact, exactly people aware that something Wide media palette, half of those who first caught has happened that deserves but TV is preferred wind of the stories on TV report their attention. Whether there When, in a roughly similar way, that they got the news from has been some journalistic DR Audience Research studied one of the two Danish news inflation of the concept of Danes' media behaviour in 1986 channels – the overwhelming 'breaking news' is an interesting in relation to the assassination majority on TV 2 News – a very industry discussion best held of Swedish prime minister Olof high percentage considering elsewhere. Guided by the user Palme, 86% had learned about the channels' relatively modest angle, DR Audience Research has the late-night tragedy within 12 share of Danes' daily TV viewing instead studied where and how hours. Although the selection and media time in general. Danes learn about major news. of events in autumn 2012 is As opposed to TV, the study The study was based on four not by any means of the same indicates that the role of radio important events in the autumn sensational nature as the Palme in breaking news has declined, of 2012: Pia Kjærsgaard's assassination, awareness levels although the medium is still a resignation as the chair of are thus comparable. The most significant source when news the Danish People's Party, Villy noticeable difference between breaks. Where 62% discovered Søvndal's exit from the same 1986 and 2012 is the significance the news of the assassination position for the Socialist People's of TV in relation to breaking of Palme via radio, an average Party, Felix Baumgartner's news. TV was the leading medium of 24% learned of the four news parachute jump from an alti- for all four events in 2012. While stories in 2012 on the radio. tude of 39 km, and – not least only 5% discovered the news of The time of day at which a story importantly – Barack Obama's the assassination of Palme on breaks is highly significant to re-election as the president of TV in 1986, TV as a 'newsbreaker' which medium becomes the first the United States. had jumped to 37% by 2012. source of the news. None of the However, part of the story 2012 stories broke in a manner Danes keep up with events of media users' infatuation that gave a definitive advantage First and foremost, we can with TV is that the TV medium to radio, which otherwise played confirm that Danes are well- acts fundamentally differently a dominant role in 1986. The informed about breaking news. in relation to breaking news Søvndal story, which 30% caught The four news stories were than it did during the era of wind of on the radio, broke discovered by an average of 99% the state television monopoly. around 9:00 in the morning at of Danes. And breaking news When Palme was shot late on a the end of radio's morning prime spreads fast. Although the story Friday night, TV viewers were time. The early-morning Obama of Pia Kjærsgaard's resignation, first able to receive the news victory was a perfect fit for which broke late on a weekday at 09:45 on Text TV, which could prime time radio and out of the Media Development 2012 Chapter 6 page 39

How did you first find out that... ? Target group: age 15+ Source: DR Panel/Analyse Danmark

TV Radio Internet via mobile phone or tablet Newspaper or daily paper

Text TV Internet via computer Word of mouth Other

Kjærsgaard resigned, Tuesday at 22:00

37% 6% 21% 16% 8% 4% 4% 4%

Søvndal resigned, Friday at 09:00 1%

30% 3% 28% 19% 7% 10% 3%

Baumgartner jumped, Sunday at 20:00 2%

47% 4% 9% 21% 9% 6% 2%

Obama was re-elected, Wednesday at 05:00 1%

43% 3% 30% 7% 10% 5% 2%

Palme 1986, Friday night

5% 62% 19% 14% Media Development 2012 Chapter 6 page 40

four stories, it is the one that o'clock, when most of us would follow the news in the same place, the most people heard about on be expected to be at work or as did a full 87% of those who the radio. But since many people school, and yet 57% first heard first received the news via the were, of course, expecting about it at home. Young people net. An interesting perspective exciting news that morning, are at home less than older begins to emerge: If the net gets more people than usual switched people, but even among 15-29 even better at capturing users on the TV news, even though the year-olds, two thirds first heard in the first phase when the news radio medium certainly offered the four news stories at home. is breaking, there is potential for satisfactory coverage. The study shows that TV is the an even bigger bite of the news Across all stories, the internet leading news source for all age pie via adherence as users follow was a strong contributor to the groups, although the lead is the story. news landscape. The net was considerably narrower among the least important source for the young and is completely The need to know is the Obama story, since the TV eliminated if all internet driven by importance medium had the opportunity to platforms are counted together. Far from everyone looks for concentrate their energies in more information about advance on what was expected The net is essential to breaking news. Overall, 38% to be a top story. It is widely following the news reported that they searched for accepted that online news has In contrast to the linear media more information after hearing put pressure on print media – radio and TV in particular – the news for the first time, a few and in relation to 1986, the which are scheduled in a flow to considered doing so and 55% newspapers have essentially a great degree, the net medium reported that they had enough vanished as a source of breaking is perfect for information information and did not look news. However, it seems clear searching at any time of the day. for more. The desire for more that 'the pocket internet' via the The numbers thus reveal that information is closely connected mobile phone has made the word- among those who searched for to whether people consider of-mouth method less important more information about the four the news important. More than to spreading news. stories immediately after the half (58%) found the stories Just as the time of day news news broke, half of those who had important or very important breaks is highly significant, heard the news on TV chose to go to society and 36% of those the place where Danes first online to find out more. However, ascribed them personal encounter the news also plays more information can be gleaned importance. Among those who an important role. More than from multiple sources, and among perceived the four stories as two thirds of the time, the news the 'TV breakers' an even higher important to Danish society, was received for the first time percentage (68%) used the the share of information- in the home. Other studies have original media, TV, to follow the seekers rises to 49% from shown that although Danes story. Among those who caught the aforementioned 38% of claim to work a great deal and wind of the news via radio, 40% all respondents. A full 58% of are very active in general, we followed the news online, which the group who felt the news was spend the majority of our time, actually exceeds radio's own important to them personally by far, within the four walls of follow-up share of 36%, but again sought more information the home. This has a tendency this was outstripped by TV's 50% about the stories. Most to favour TV. The Søvndal story share. If people start with the people considered Obama's came in on a Friday morning at 9 net, it seems to be routine to re-election important on both Media Development 2012 Chapter 6 page 41

How did you first find out that... ? Average for the four stories from 2012 Target group: age 15+ Source: DR Panel/Analyse Denmark

TV Radio Internet via mobile phone or tablet Newspaper or daily paper

Text TV Internet via computer Word of mouth Other

Age 15-29 1 %

29% 2% 11% 23% 16% 13% 5%

Age 30-44 1%

32% 4% 17% 21% 13% 8% 3%

45-59 1%

37% 4% 26% 15% 6% 6% 3%

Age 60+

44% 4% 32% 10% 2% 4% 3% 2% Media Development 2012 Chapter 6 page 42

the societal and personal levels. day in front of the big screen. This is followed by the two In connection with breaking stories about Danish politicians, news, TV has also taken over the but very few (16%) found leading role that was clearly held Baumgartner's spectacular jump by radio when the Swedish prime decidedly important. minister was assassinated. However, surveys performed by Top quality DR Audience Research clearly There is good news for the show that in the everyday media Danish media. News users are lives of Danes, there is room very satisfied with the media's and use for all the news media work when it comes to following that are able, based on their up on breaking news: 27% say positions of strength, to deliver they are 'very satisfied' with on demands for time, place and the quality of news coverage quality so that important news by the media when they looked can reach Danes swiftly and for follow-ups on the four widely. Compared to 1986, there stories, and an additional 55% is no doubt that Danes have long are 'satisfied'. Only 2% were since become accustomed to definitely 'dissatisfied'. the fact that news is something With more than 8 out of 10 that happens here and now and satisfied users, the news media's is not something for which they greatest challenge is hardly must wait. to increase satisfaction, but rather to induce more people to take advantage of the follow-up opportunities after the news has broken. With focus on this ambition, the autumn surveys indicate that user appeal may benefit if the importance of the news – to society and the individual – is stressed even more clearly. The perceived relevance to the individual is always important when the media are trying to catch the attention of Danes.

Use for all TV is the most frequently used medium among Danes. Compared to other media, we spend by far the most hours per Media Development 2012 Chapter 6 page 43

Where did you get more information? The media from which people got more information about the four stories after having discovered the news on TV, radio, or the internet. Since people may follow news stories via several media, the figures total more than 100%.

68% TV 50% TV 32% TV 87% 6% Internet 1% 4% Other Other Other

50% TV 11% 40% Radio 6% Internet 3% Internet first Text TV Internet first Text TV first Text TV

12% 10% 13% 11% 8% Radio Newspaper or daily paper Newspaper or daily paper Radio Newspaper or daily paper 36% Radio

A last flick of the tail...

Sometimes, breaking news also flies under the importance radar. Method As an example of a minor event, DR Audience Research and Analyse Denmark studied Danes' media-related doings when the Between August and November, a total of 4,471 respondents story broke that Prince Henrik's runaway dachshund Evita had (aged 15+) participated in the four surveys on breaking news been hit by a car and killed. Only 58% had heard the sad news – conducted by DR Audience Research. Three surveys were carried far fewer than the 99% on average who had learned about the out only among members of the DR Panel, while the Søvndal story four serious stories. The lower level is logically connected to was also run in Analyse Denmark's representative internet panel, the fact that the story was given relatively short shrift by the which meant the total data set could be checked for possible primary news media. The net was the dominant newsbreaker for skew. Each survey began after the main media had each had about 50%, especially on eb.dk and bt.dk, followed by text TV and their prime time. Thus, a morning or afternoon (radio), a midday newspapers. The news spread fast, but almost no one (2%) sought period (internet) and a TV evening prime time had to pass before further information, which is no surprise since even fewer (1%) the survey was begun. Thereafter, responses were collected over considered the story of the royal family's loss important. a three-day period. Media Development 2012 Chapter 7 page 44

The battle for the remote control Nine times out of ten, women decide when men watch Kanal 4.

1 Men

9 Women Media Development 2012 Chapter 7 page 45 What should we watch tonight, Honey?

Danes watch a lot of TV, but how do they decide what to watch? To find out a bit more about this, DR Audience Research asked 100 Danes to keep a TV log for one week. The study results include that age affects zapping patterns and that Dad no longer has sole control of the remote control. Here are four situations that provide insight into how Danes chose TV programming in 2012.

By Henrik Gregor Knudsen and Signe Villumsen, DR Audience Research Media Development 2011 Chapter 7 page 46

Younger Danes are spontaneous TV viewers, older Danes are not The study was carried out among DR's own inter- net panel, the DR Panel, the week of 22 October Will you be watching a specific pro- 2012. Based on a list of gramme this evening? If you are 40 or programmes broadcast older, the chances you will say yes are between 18:00-24:00 on twice as high than if you are under 40. the highest-rated TV In fact, almost half the programmes channels from DR, TV 2, TV3 watched by Danes over 40 are pro- and SBS, 100 Danes were grammes they follow regularly. By their asked to state each morn- own report, Danes over 40 virtually ing which programmes they never zap randomly to a programme and had watched the previous stay there. On the other hand, this is a evening and how and by whom the programme selection relatively frequent occurrence among had been made. All panelists younger viewers. Of the programmes were aged 18+. Due to the watched by younger viewers, 20% are limited size of the random programmes they happened upon, found sample, the results interesting and continued watching. should be considered indications of how Danish TV viewers behave rather than a representative pic- ture. The drawing showing where Danes find TV list- ings is based on a survey Viewers are more likely to compromise on the weekend carried out in partnership with Megafon in September 2012 as a representative random survey among Danes Weekdays, viewers young and aged 15 and over. old decide for themselves which programmes they want to watch, four times out of five, but otherwise they leave the decision partially or en- tirely up to others. On week- ends, they are more likely to compromise in their programme selections, when one third of decisions are made by others or jointly with others. Ac- cording to TNS Gallup TV-Me- ter, this greater willingness to compromise reflects the fact that a higher percentage of weekend TV viewing occurs in the company of others. Media Development 2011 Chapter 7 page 47

Men report that half of the Henpecked husbands watch Kanal 4 reality shows they watch are due to a choice made by their partners, but nine times out of ten, women themselves have made the decision to watch shows like Sommer i Sunny Beach (a Danish reality show about life in Sunny Beach, Bulgaria), De unge mødre (a Danish documen- tary series about young moth- ers), or For lækker til love (picky singles searching for a partner). While women guard the remote control when re- ality and lifestyle programming are on offer, men have more of a say when it comes to TV sports programming. The dif- ferences between the sexes are particularly apparent when it comes to Kanal 4: In nine out of ten cases, men report that their partners made the deci- sion when they watch a pro- gramme on the channel.

TV listings are checked electronically

In 2012, more than two thirds of Danes over the age of 15 primarily used electronic media to find out ... In 1989, 62% of Danes reported that what is coming up on TV. Text TV is newspaper TV listings were their most the favoured medium among most, important source. In 2000, that figure since it is always handy when the was 43% and by 2012 it had dropped to 16% TV is on. Another convenient medium – and the vast majority of these people is apps, reported by 10% as their are aged 50+. most important source for figur- ing out what they will watch on TV... Media Development 2012 Chapter 8 page 48

On demand Of the Danish population, 21% have used one or more on-demand services in the last six months.

21% Media Development 2012 Chapter 8 page 49

The future of future TV

2012 brought new on-demand alternatives, TV screens gained internet access and many Danes have the right equipment. But on-demand viewing is still limited and there are no signs that on-demand is a death sentence for flow TV. On the contrary, the reality seems to be that flow TV and on-demand will peacefully co-exist and support each other.

By Sofie Scheutz and Carsten Andreasen DR Audience Research Media Development 2012 Chapter 8 page 50

The doomsday prophets have forms of content, such as programming on the big screen. been heard for a long time now: YouTube, Jyskebank TV and This is not yet a widespread TV is a dying medium! Flow TV EkstraBladet TV. practice, but in a survey per- is doomed! Young people watch formed by Epinion for DR Audi- everything on the net! The times TV on new devices ence Research, 13% of Danes they are a-changin': We want TV is the medium Danes spend with internet access report that to mix and match content. We the most time on and perceive they do so. Among Danes under make our choices across what as the most important medium. 30, the figure is 19%. is on offer from the internet VCRs and DVRs have come and TV stations are reduced to and gone over the years, new On-demand TV is typically production houses that merely channels and more channels have viewed on a computer make content available. arrived and yet consumption When Danes watch on-demand But many of those who love has remained the same. But TV today, they primarily do the new opportunities belong to the internet/TV combination is so on a computer, but many population groups who already creating potential for changing express that they would like to watch less flow TV than the rest how we can watch TV. view on-demand content on the of the population. At present, First and foremost, TV is no TV screen. The computer is by flow TV and on-demand TV work longer confined to the living room far the most common device well side-by-side. altar – we can now watch on for viewing TV on demand and it We can confirm that the three additional screens, the PC, is here that most people have internet finally hit the TV screen tablet and mobile phone. Next, become familiar with the option, in 2012. But there is nothing opportunities to watch TV at but the PC is not the optimal to indicate that this will be a the time of our choosing have device for TV viewing. Sitting in stumbling block for flow TV within evolved from having to remember front of a computer is usually not the next few years – at any case (and learn how!) to record ideal; battery life is limited, the not with existing technologies. programmes on our VCRs to the screen is small and it is not always This could change if there is a present era when TV is available easy for more than one person to technological and user-related whenever and wherever we want gather around a computer. conquest from the outside that it, on the net and via on-demand Danes prefer to view on- radically changes the TV market TV. Last but not least, the demand TV on the living room in the same way the so-called quantity of content has reached set. In fact, a full 84% say 'iPhone moment' changed the such a volume that users simply the TV screen is the one they market for mobile phones. expect to be able to retrieve would most prefer in an ideal On-demand content can content that they have missed. world. But only about 10% of be divided into three types: New mobile screens have those who have the capability The first is aligned with flow arrived in Danish homes, giving take advantage of it over the TV content, such as DR NU, rise to new users behaviours. course of a week. Technically TV2 Play and TV3 Play. The Different members of the family speaking, many Danes can second type is older content, are watching their preferred connect the internet to the preferably collected in series content on different screens, TV set but the technology is and genres, such as Netflix even when they are in the same still too complicated. A survey and DR's Bonanza. The third room. Dad may be watching of the DR Panel shows that type is the new broadcasters sports on his tablet while Mum among those who have the who produce or forward short and the kids are watching other opportunity to connect the Media Development 2012 Chapter 8 page 51

internet to the TV screen only There were new occurrences about half have actually taken in 2012 that may increase Danish advantage of the option. consumption of on-demand When internet-based content TV. Several new services were comes to the TV screen, introduced to the market, of expectations are high not only which the most high-profile are for the quality of the content, Netflix, HBO Nordic, YouBio and but also for stability and sound Viaplay. According to a survey and picture quality. It may be that carried on by Epinion for DR we have quietly accepted poorer Audience Research in December sound and picture quality on 2012, a full 21% of Danes have computer screens, but as soon tried one or more of these as on-demand TV is viewed on the services in the last six months living room TV set, we have higher and 17% have subscribed. This expectations for quality. We are should however be considered used to good quality on the TV in light of the fact that many screen. And we find it hard to of these services have offered compromise on that. free trial subscriptions. The services are interesting TV viewing on the net is novelties on both the pay TV and still a niche phenomenon purchase/rental DVD markets in Only 3% of the time Danes that they provide easy access to spend viewing DR programming large amount of content. is spent on the net. Thus, on-demand TV is still a niche On-demand TV phenomenon even for DR, which is useful to users holds the leading position in the Although the consumption TV market. Time spent viewing of on-demand TV in Denmark DR programmes on-demand is still a niche phenomenon, rose by about 19% between many Danes believe that simply 2011 and 2012. Viewing is equally having access to on-demand distributed between live viewing TV is very useful to them in on the internet and on demand. their everyday lives, even if As things stand, it does not they do not use it themselves. look like Danes' consumption This is evident in several user of TV on the net has had any interviews conducted by DR significant impact on overall TV Audience Research. Many users viewing. One of the explanations of on-demand services simply may be that internet TV viewing talk about catching up. Who has has been adopted mainly by not been disappointed by missing groups with generally low levels a programme that everyone is of TV consumption, such as talking about or the feeling that young people and academics. you can't join the conversation around the water cooler Monday Media Development 2012 Chapter 8 page 52

morning because you did not '...I get annoyed when the water cooler? In general, see Borgen (Danish TV series) something I had counted we see that the programmes 1. It has to at 20:00 on Sunday evening: on has not been put online!' that bring together many TV work Woman, age 25 viewers on flow TV are also 'I use it when I can catch up. the programmes that Danes Many users are putting I do it all the time, especially Other users who participated are eager to catch up on via off using on-demand TV on the weekends.' in the DR Media Research on-demand TV. This is especially because they experience too Woman, age 25 interviews noted that the true for the major drama series many problems. The most content in various on-demand and entertainment programmes, frequent user complaint On-demand TV is quality TV Forbrydelsen services is too old. Content (Danish TV series, by far is that there are Users who view on-demand may be perceived as old or in English The Killing). In this sense, too many interruptions. TV on the internet often say feel like reruns because it has flow TV drives on-demand TV. When users feel that the that they see more high-quality already been broadcast on TV or video is choppy, comes to a The future of future TV TV. When users make their own premiered in the cinema. standstill and freezes, they choices, the content may be There is not much doubt that quickly lose interest, no perceived as useful and close at 'I have access to Netflix's TV via the internet is going matter how easy it is, how hand and thus of higher quality. trial subscription right to rise in the next few years. much there is too choose now but I am not going to According to DR Audience among or how good it looks. 'We use Bonanza because continue it – the content Research studies, there are five It has to work every time. we feel we are choosing is too old.' essential things that must be quality content.' Woman, age 25 taken into account in order to Woman, age 29 strengthen the breakthrough: Flow TV is driving In order of priority, they are: 'It is all about prioritising on-demand TV quality content for myself Flow TV and on-demand and the kids.' TV work in tandem This is Man, age 36 clearly evident in relation to the Danish series Matador. All Users expect abundant Danes have been able to view content and the quantity is Matador on dr.dk/bonanza since becoming satisfactory: March 2008 and more than 3.6 million Matador DVDs have 'There is enough material, been sold. Nevertheless, on a so there is always some- single Saturday in the autumn thing to spark your interest.' of 2012, more than 1.2 million Man, age 31 viewers tuned in to follow life in the little fictional town of In fact, they have rather high Korsbæk on DR1 for the seventh expectations that everything time. When over a million Danes should be available on demand. If are watching, things also get that is not the case: moving in catch-up viewing on dr.dk, because who wants to be the only one who cannot join in the conversation around Media Development 2012 Chapter 8 page 53

2. It has to 3. Everything has 4. It has to 5. It has to be easy to be there be economical look good

It must be easily accessible. A wide selection of content There has to be a reasonable We are used to seeing good We should not have to call is important. It can be connection between price quality on our TV screens. It in the family IT guru in order expected that the fewest and content. Especially when might very well be that we to view a programme. No users will choose to sub- Danes already spend quite a have quietly accepted poor additional purchases of scribe to more than one lot of money on viewing TV. sound and picture quality on special plugs or boxes, no service. Users gradually computer screens, but as cable spaghetti all over the come to expect everything soon as we begin watching living room floor, no meaning- in one place, all the time. on-demand TV on the living less menus and no incompre- Everything has to be there room set, we raise our quality hensible categorisations of – all the time! standards. We are simply the content. It has to be easy very accustomed to good – for everyone! sound and picture quality! Media Development 2012 Chapter 9 page 54

Which music services do you use? Target group: Users of online music services, age 15-60 Source: Epinion for DR Audience Research

58% Spotify

37% TDC Play

25% Grooveshark

3% WIMP Media Development 2012 Chapter 9 page 55

Music streaming services have broken the sound barrier

The new streaming services have made a real breakthrough when Danes listen to music. Development has been robust and among younger users, one out of two now use these services. Among younger music listeners, music streaming services are a growing alternative to traditional sources of music.

By Dennis Christensen and Uffe Høy Svenningsen DR Audience Research Media Development 2012 Chapter 9 page 56

Streaming of music has services, half of all young Danes When and where do you listen to music? gained a strong foothold, which use this option. It is gradually Target group: age 15-60 is evident in surveys of how approaching the distribution of Source: Epinion for DR Audience Research many Danes use this platform traditional listening forms. for access to music. A full half The broad distribution among of all Danes aged 15-60 use young people shows that they Radio listening on public radio the American video streaming have, unsurprisingly, adopted the 77% service YouTube to listen to new opportunities faster than music, and nearly one third of their parents and grandparents. Own music at home Danes use online music services What is surprising is just how 73% like Spotify and TDC Play. Online fast young Danes have adopted music services in particular the new listening avenue and Music on YouTube have had growing pains in the how marked the differences are 51% last two years and there has across generations. While about been a significant increase in half of Danes in the 15-29 age Own music on MP3 player or mobile phone distribution, especially among group use online music services, 48% younger Danes. But when the ear the level is only 14% among canals are to be pampered, most Danes aged 50-60. Online music services Danes still use traditional music 31% providers like good old radio and Streaming and their music collection at home. mobile listening Radio listening via a computer or tablet are gaining ground 31% Half of young Danes use If we look at the development online music services of individual music sources since Music programmes on TV Although many Danes still use 2010, when DR Media Research 24% traditional music providers, we performed a corresponding are no longer living in a world survey, we can trace two main Radio listening on a mobile phone where the music collection at tendencies: Music listening 23% home and the songs on the radio has become more mobile and and TV are the absolute rulers. streaming is still growing Web sites that offer listening of single songs This is very apparent when we in distribution. In parallel, 11% focus on the listening habits traditional music sources such of young Danes. Young people as music listening via conven- None of the above want vast quantities of digital tional radio, music on TV and 1% products. The streaming hybrid home music collections are is the winner even though it is declining in distribution. neither a music product that The greatest advances among people own nor a linear medium all listening sources are seen like radio and TV. Among 15-29 among the online music services, year-old Danes, YouTube is used which had a distribution of 19% more often than both traditional in 2010, which has now grown to radio listening and the home 31% among Danes in the 15-60 music collection. If we look at age group. Online music services the latest addition, online music cannot yet measure up to radio, Media Development 2012 Chapter 9 page 57

music collections and YouTube, a single player in the field has Which music services do you use? each of which are used by far managed to drive development of Target group: Users of online music services, age 15-60 more people, but distribution this phenomenon. Source: Epinion for DR Audience Research is now high enough that one can Spotify has engaged in a very begin talking about a general effective marketing campaign phenomenon. in Denmark. First by means of a 2012 2010 We are also seeing interesting launch connected to Facebook movements in the use of online and massive media coverage, Spotify music services. In both 2010 and later via a partnership with 58% and 2012, essentially all users Telia. The service is available in 2% of these services used them two versions: A free version, TDC Play via their computers, but during in which users are exposed to 37% the same period there has commercials, and a subscriber 51% also been a noticeable increase version with a monthly fee in mobile usage. In 2010, 27% of either DKK 49 or DKK 99. Grooveshark used the services from their According to users, a full 81% 25% mobile phones. By 2012, that prefer the free version to the 36% level had risen to 40%. The use pay version. This indicates that bibzoom.dk of online music services has although Spotify has brought 8% become considerably more attention to and increased 9% mobile than was the case six the potential of subscription months ago, with no decline in services, the overwhelming Others use via computers. majority of users prefer not to 5% pay for the content. The first fix 6% Spotify wipes the floor was free and the question now Last.FM with the rest is whether the music services' 5% The marked rise in the use of offerings are strong enough to 11% online music services is due to convert users into addicts wiling a single player in the streamed to pay. If they succeed, this WiMP music market, Spotify. The could be a genuine replacement 3% Swedish service became available for traditional music sales. 6% in Denmark in autumn 2011 and Pandora has been going strong ever 1% since. Spotify now dominates 2% the market. Of the 31% who use online music services, a full RDIO 58% use Spotify. TDC Play was 1% used by 37% and Grooveshark by 0% 25%, but only 3% use the Telenor Deezer service WiMP. Compared to the 1% distribution in 2010, the last 1% three services had neither gained nor lost users in 2012, in absolute numbers. It is remarkable that Media Development 2012 Chapter 9 page 58

When and where do you listen to music? About the survey Source: Epinion for DR Audience Research

Chapters 9 and 10 about music listening are based primarily on a representative web survey with 2,405 responses collected 15-29 50-60 among users aged 15-60 during the period of 4-12 June 2012 by the market research firm Epinion in partnership with DR Music via YouTube Audience Research. The results of the survey are compared, 83% where relevant, to a corresponding survey performed in autumn 25% 2010, also by Epinion and DR Audience Research. Own music at home 74% 69%

Own music on an MP3 player or mobile phone 73% 22%

Radio listening on public radio 61% 86%

Online music services 49% 14%

Radio listening via a computer or tablet 40% 19%

Radio listening on a mobile phone 33% 14%

Music programmes on TV 25% 23%

Web sites that allow listening of single songs 17% 6%

None of the above 0% 3% Media Development 2012 Chapter 9 page 59 Media Development 2012 Chapter 10 page 60

Streaming of music Target group: age 15-60 16% Source: Epinion for DR Audience Research Streaming 84% Traditional Media Development 2012 Chapter 10 page 61

Streaming did not kill the radio star

Growth in the consumption of streamed music is affecting consumption of other music media. As things stand, the local music shop and iTunes should be more worried about the new competitor than the DJ on local radio.

By Dennis Christensen and Uffe Høy Svenningsen DR Audience Research Media Development 2012 Chapter 10 page 62

When Danes estimate was 49%. If we focus specifically or any of the other challenges their own music habits, music on users of online music services of modern life. One push of the streaming is taking a larger and their estimations of the on-button and you are listening portion of the time they spend significance of the new options, to P4. But when radio moves listening to music than before. the picture is similar. Among onto the digital away field as Music streaming (YouTube and users of online music services, net radio and apps on mobile online music services combined) 23% estimate that the new devices, for example, the medium accounts for 16% of music services primarily compete is challenged by streaming listening among Danes – nearly with radio listening, while 42% services. The usage situation double what it was only six indicate own/borrowed music. surrounding net radio and radio months ago. People typically It thus seems that music listening via apps is bringing listen to music on their own streaming is replacing the use radio into closer competition media or via linear media. of owned media more than the with the new services. Owned media, such as vinyl linear media. When the radio in the kitchen records, cassette tapes, CDs Thus, it makes sense to comes onto the internet and and MP3 files, have the same regard radio and streaming Spotify is also available at characteristics as on-demand as competing media only to the touch of a button, linear media, since people decide for a certain extent. The radio radio will also lose one of its themselves what they want to medium works on determined competitive advantages. Only listen to, when and where. These premises; it is tied to situations time will tell how much value are now falling behind, while the in which the pleasure of having users attach to linear radio linear media are coming through the music selected by others is where others have chosen the nearly unscathed. central. When we sit down with music for them. The music that Danes have our significant other on a Friday lying around in physical or digital evening, light the candles, open copies at home is being used less a bottle of red and put Barry all the time. In 2010, use of the White on the CD player, the home music collection accounted radio medium is an alternative for 26% of total music listening only for the few who want – a level that had dropped to to have a chatty radio voice 20% by 2012. The consumption along for the ride. There are of own music on mobile media is fundamental differences in the unchanged at 12%. nature of the media and in this situation, streaming services On-demand's main are more similar to the home competitor is on-demand music collection. Radio listening is another area that could be affected by the The confluence of on- increased use of streaming. But demand and streaming the effect of this medium is not The competitive advantage especially serious. In 2012, 47% of traditional radio listening is of music listening is via radio, clearly the fact that it does not which is very nearly the same require a computer start-up, level as in 2010, when the share working network connection Media Development 2012 Chapter 10 page 63

Divide 100 minutes, based on how much time you spend on the selected music sources Target group: age 15-60 Source: Epinion for DR Audience Research

2012 2010

Radio listening on public radio 38 42

Own music at home 20 26

Own music on an MP3 player or mobile phone 12 12

Music via YouTube 9 7

Online music services 7 2

Radio listening via a computer or tablet 5 5

Music programmes on TV 4 4

Radio listening on a mobile phone 3 0

Web sites that offer listening of single songs 1 1

Foreign net radio 0 1 Media Development 2012 Chapter 11 page 64

Have at least one game console in the household Source: TNS Gallup Index Denmark

46% 2012

35% 2008 Media Development 2012 Chapter 11 page 65

Media devices in 2012: Internet access and hybrids

Our media devices are changing and we are changing with them More features are moving from dedicated devices to new devices that can do several things and are not confined to a single functionality. Content is divided between what we own and what we only rent on a subscription basis. Internet and device convergence is giving media users entirely new opportunities.

By Jacob Lyng Wieland and Uffe Høy Svenningsen DR Audience Research Media Development 2012 Chapter 11 page 66

Media devices come and Physical media player revolutionised the music media devices go. For most are losing their foothold industry around the turn of media devices, because new and While the digital set-up is in the millennium and distribution smarter devices have arrived. place in many Danish homes, peaked in 2010 when, according We listened to music on the we are seeing reversals in to Gallup, half of all Danes had a train in 1985 on a Walkman, in the distribution of traditional player in the household. The last 1995 on a Discman, in 2005 on an media devices. More Danes are couple of years show that there MP3 player – and now we listen dropping their CD players into has been a stagnation and even a on a smartphone. We still listen the recycling bin for electronic tendency towards a small decline to music, but now on a different waste and CD sales are in steep in the number of Danes who have device. But a smartphone is not decline. According to Gallup, an MP3 player in the household. only a music player. It can do almost half of the Danish In 2012, 48% had a separate a lot of other things and that population bought at least one MP3 player in the household. is precisely the point of the CD every six months in 2006, The huge growth in smartphones device convergence in progress while only 28% acquired one in in recent years has presumably now. Devices with limited 2012. The downturn is beginning been the primary reason for the functionality are giving way to to hit the traditional film media. downturn and 52% of Danes now devices with multiple functions. Despite the latest addition of have a smartphone compared to They are typically connected to Bluray, the number of Danes 38% in 2011. The most interesting the internet and we are thus who watch rented film on a difference is that the smartphone also going to see a change in VCR, DVD or Bluray player has - a hybrid device - can both play relation to how Danes access fallen by four percentage points files and net-based streams, media content. every six months for the last while the MP3 player is in many Let us take a peek into two years, down to 27% in 2012. cases file-based only and thus Danish homes. The digital Moreover, a survey performed similar in many respects to the infrastructure in Denmark by Statistics Denmark shows good old Walkman. needed to take advantage of the that the number of Danish new opportunities is largely in families who own DVD players New devices in Danish homes place. A full 94% of Danes have declined by a full 10 percentage The digitisation of devices access to the net at home and points between 2011 and 2012. in recent years has been in full most also have connections that At present, 68% of all Danish swing in Danish households are fast enough to download families have a DVD player and when Danes upgrade their media content of reasonable in the home. The number of media equipment these days, quality. According to the Danish families with Bluray players they often choose devices with Business Authority's Telecom rose during the same period by internet capability. A quick run statistics, 66% of broadband 7 percentage points to 23% of through a home electronics subscribers in Denmark had all Danish families. The upshot store like Fona or Elgiganten download speed of more than 10 is that there has been a small shows that in addition to the Mbit/s in 2011 compared to only net decline in the percentage cheapest flat-screens most 15% two years before. At the of families who own either a of the living room altars now same time, 76% of all Danes have dedicated DVD or Bluray player. offered in the stores are so- wireless internet so that mobile The MP3 player is another called smart TVs that provide media devices can access the example of how media devices internet access. net at home. succeed one another. The MP3 Media Development 2012 Chapter 11 page 67

Another type of device etc. For this reason there is a separated. The new media bringing hybrid forms in move from ownership to access. devices with internet-based to our homes are game Access as a phenomenon has content provide greater consoles. According to Gallup, existed for a long time via the flexibility. We can independently entertainment boxes have broadcast media, where media select, reject, find and be been on a stable growth users have access to the offered massive quantities of trajectory since 2000 and broadcasters' flow. The same media content. The question game consoles are now found now applies in earnest to on- remains to what extent we in 46% of Danish households demand content. will actually use the new compared to 35% in 2008. We still own the newest possibilities. This will certainly The new models seldom types of playback devices, depend upon the media come without net access, in which we use, but they do device, expectations for the part because the producers not require storage media media device, the selection of are trying to develop game such as VHS tapes, DVDs, content on offer, accessibility consoles like PlayStation CDs, vinyl records, Betamax, of content and – of course and Xbox into media centres cassette tapes or hard – the price. The future looks that provide access to a disks. In actuality, the hybrid bright for the hybrid media that variety of media content. devices like game consoles, bring more media together and As a consequence of device smartphones and smart TVs can provide access to content development by hardware cannot do half as much as from the net. producers, Danes thus the PC, the king of hybrids, automatically gain access which can do everything. to the net through multiple However, the PC has never devices when they replace really broken through as an their digital equipment. out-and-out media device. In addition, the PC is probably too Hybrid devices mix linear multifunctional and thus lacks and on-demand the attributes that hybrid In the evolution from devices, which were made for devices with a single dedicated more specific purposes, may function to hybrid devices, we contain. It is easier to read are seeing an underlying move an e-book on a tablet or an away from use of stored media e-reader than on a computer, content to consumption of and it is easier to carry your media content that we do not music around on a smartphone physically own. The difference than on a computer. With is that the storage media are internet access and the option used piecemeal via physical to get rid of external content, copies in our homes or as the hybrid devices can combine files on the computer. Hybrid two distribution forms (playing devices, on the other hand, also of stored content and access) have access to media content, and they can also mix linear which is not limited to being media and on-demand content, found on individual CDs, DVDs which have traditionally been Media Development 2012 Appendix page 68

Legally responsible editor TNS Gallup TV-Meter Design and photography Audience Research Manager TNS Gallup Mobile Devices 2012 DR design Lars Thunø – [email protected] Other sources Drawings Editors media watch.dk Simon Bukhave Jacob Lyng Wieland – [email protected] Berlingske Signe Villumsen – [email protected] Boxer (press releases) Printing Uffe Høy Svenningsen – [email protected] comScore Hertz Bogtrykkergården

Contributors The DR Panel Bo Kjeldgaard – [email protected] The data in this publication is also derived from Carsten Andreasen – [email protected] surveys performed in DR's own internet panel, Dennis Christensen – [email protected] the DR Panel. The DR Panel is used for regular Henrik Gregor Knudsen – [email protected] surveys of Danish media consumption habits Jacob Lyng Wieland – [email protected] and opinions about media content. Anyone Kurt Holm Jensen – [email protected] resident of Denmark aged 15 or older may Lars Thunø – [email protected] become a member of the DR Panel. You can Michael Oxfeldt – [email protected] join the panel and read more about it online at Nanna Birk – [email protected] www.dr.dk/drpanelet Niels Marslev – [email protected] Peter Niegel – [email protected] About DR Audience Research Signe Villumsen – [email protected] DR Audience Research is DR's own research Sofie Scheutz – [email protected] department. It is an independent department Uffe Høy Svenningsen – [email protected] tasked with providing the perspectives of listeners, viewers and users on DR's wide Data sources range of products and with tracking media Statistics Denmark development. Danish Audit Bureau of Circulation (Advertising Expenditure Survey) Contact details DRRB (Media Index) [email protected] Epinion DR Audience Research Danish Business Authority (Telecom Statistics) DR Byen FDIM 0999 Copenhagen C. Gemius Denmark IRM: Institute for Advertising & Media More info online Statistics Medieudviklingen 2012 in Danish may be (Advertising Expenditure Forecast 2012/2013) downloaded from Danish Competition and Consumer Authority www.dr.dk/publikationer (Distribution of TV Channels, 2011) The English version may be downloaded from Megafon www.dr.dk/aboutdr TNS Gallup Annual Survey The material may be freely quoted if the TNS Gallup Index Denmark source is clearly stated. TNS Gallup Radio Meter Media Development 2012 page 69 DR Audience Research

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