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ThinkTV FACT PACK JAN TO DEC 2017 TV Has Changed

NEW ZEALAND

Today’s TV is a sensory experience enjoyed by over 3 million viewers every week. Powered by new technologies to make TV available to New Zealanders anywhere, any time on any screen. To help advertisers and agencies understand how TV evolved over the last year, ThinkTV has created a Fact Pack with all the stats for New Zealand TV. ThinkTV’s Fact Pack summarises the New Zealand TV marketplace, in-home TV viewing, timeshifted viewing and online video consumption. And, because we know today’s TV is powered by amazing content, we’ve included information on some top shows, top advertisers and top adverts to provide you with an insight into what was watched by New Zealanders in 2017. 2017 THE NEW ZEALAND TV MARKETPLACE BIG, SMALL, MOBILE, SMART, CONNECTED, 1. HD-capable TV sets are in CURVED, VIRTUAL, 3D, virtually every home in New Zealand

DELAYED, HD, 4K, 2. Each home now has on average ON-DEMAND, CAST, 7.6 screens capable of viewing video

STREAM… 3. Almost 1 in every 3 homes has a internet-connected smart TV THE TV IS AS CENTRAL TO OUR ENTERTAINMENT AS IT’S EVER BEEN. BUT FIRST, A QUICK PEAK INSIDE NEW ZEALAND’S ROOMS

• In 2015 New Zealand TV celebrated 55 years of broadcast with the first transmission on 1 June, 1960 • Today’s TV experience includes Four HD Free-to-air channels Two Commercial Free-to-Air broadcasters One Subscription TV provider • Today’s TV is DIGITAL in fact, Digital TV debuted in 2006 followed by multi-channels in 2007 • In its 58th year, New Zealand TV continues to change and evolve. Catch-up TV services are growing rapidly, significant SVOD services (, and ) are available and connected TV’s are changing the way New Zealanders experience TV THE DEFINITIVE SLIDE THAT CAPTURES TV’S EVOLUTION (IT'S A REAL TIME SAVER WHEN YOU'RE DOING A TV 101 PRESENTATION)

2011 2012 2013 2014 2015 2016 2017 2018

Netflix More than 60 Digital Digital Lightbox and FOUR replaced Igloo cease TAM NZ Panel channels in the switchover switchover NEON launched in with service expansion by market commenced completed, launched New Zealand 50% (on-going)

analog signal Duke launched FOUR Igloo launched rebranded switched off More than 100 from C4 Netflix limits channels to access to US choose from launched content

Amazon Prime launched in New Zealand AN AVERAGE NEW ZEALAND HOME HAS MORE THAN 6 SCREENS Total number of screens in homes has risen over the past two years. Growth across portable screens is driving the increased number of screens per household, while number of TVs per household has remained stable.

SCREENS IN NEW ZEALAND HOMES 7.6 Screens

7.2 Screens 6.8 Screens

Source: Nielsen Consumer and Media Insights, Q1-Q4 2015, 2016, and 2017, Main Household Shopper TECHNOLOGY MAKES TV AVAILABLE EVERYWHERE AND AT ANY TIME

New Zealanders use a myriad of devices to experience TV in and outside the home.

The TV set is the most pervasive: in almost all TV Smart Phone 73% Internet PVR 45% New Zealand households.

97% at home 87% Nearly a third of New Zealanders live in households with a internet / smart TV.

Despite having a multitude of devices and high internet penetration, Pay TV is still available in 2-in-5 NZ homes. Pay TV 43% Tablet 43% Internet / Smart TV SVOD 34% 29%

Source: Nielsen Consumer and Media Insights, Q1-Q4 2016 and Q1-Q4 2017. Base: Main household shopper (proxy to indicate household in NZ) 2017 How We TV BINGE YOUR 1. We spend nearly 24 hours in front of the TV screen each FAVOURITE TV week SHOW ON A TABLET 2. New Zealanders now spend BEFORE BED? over 5 hours and 44 mins HOW DOES NEW watching video on their devices ZEALAND DO TV TODAY? IN-HOME TV SCREEN USAGE IS EVOLVING

AVERAGE WEEKLY TIME SPENT IN FRONT OF THE TV SCREEN

TOTAL USE OF THE TV SET 0200-2600 1800-2229 Weekly Average (hh:mm) (hh:mm) Total TV Screen Use 23:55 11:26 Total Broadcast TV 17:30 8:52 Watching Live TV 15:45 7:42 Watching As Live :49 :28 Watching Playback to 7 days :56 :42 Other TV Screen Use 6:18 2:34

*Nielsen Television Audience Measurement (Base: All People 5+, Jan-Dec 2017, All Day and Peak) IN-HOME TV SCREEN USAGE IS EVOLVING

• New Zealanders spend 103 hours and 29 mins with their TV sets on average per month – 76 hours and 6 mins is spent with Broadcast TV • New Zealanders watched an average of 4 hours and 4 mins of playback TV through their TV sets within 7 days of the live broadcast. In prime time this viewing is a little over 3 hours • New Zealanders spend 6 hours and 18 mins a week with the TV set doing something other than watching live or playback TV • On average 4 hours and 4 mins of Broadcast TV is watched on catch up, but within 24 hours of broadcast.

*Nielsen Television Audience Measurement (Base: All People 5+, Jan-Dec 2017, All Day) IN-HOME TV SCREEN USAGE IS EVOLVING BUT BROADCAST TV STILL DOMINATES

In an average week New Zealanders spend an average of 5 hours and 44 minutes watching TV/video content online across all devices, as opposed to 18 hours 12 mins of traditional broadcast TV.

Average time spent (minutes) watching TV / video content online in a typical week - by device type

Source: Nielsen Consumer and Media Insights, Q1-Q4 2017 (Base: All People 10+), *Nielsen Television Audience Measurement (Base: All People 10+, Jan-Dec 2017, All Day) 2017 Who Is Watching? NEED TO SHOW YOU 1. On average, New Zealanders watch 2 hours and 31 minutes of KNOW YOUR broadcast-delivered TV a day RATINGS? 2. 25-54 year olds watch an THESE THREE average of 1 hour and 15 SHOULD DO THE minutes of TV a day TRICK. 3. Those with subscription TV tend to watch more TV than those without. WHO WATCHES TV?

Total Males Females 25-54 - 39.5% 25-54 - 36.7% 25-54 - 41.9% 18-54 - 43.2% 18-54 - 39.9% 18-54 - 46.1%

*Nielsen Television Audience Measurement (Base: All People 5+, Jan-Dec 2017, All Day) WHO WATCHES TV?

TOTAL TV 2017 Shopper with Total 5+ 18-49 25-54 55+ (0200-2600) Child

Audience 458,800 160,400 181,500 218,300 57,800

AUD % 10.5 8.0 9.3 17.5 10.4

Av Daily Reach % 1min 59.9 50.9 58.1 82.2 59.6

Average Time 02:31 01:56 02:15 04:12 02:30 Viewed (Univ) (hh:mm)

Average Age Group 45-49 35-39 40-44 65-69 40-44

Profile 100.0% 34.9% 39.5% 47.6% 13.5%

*Nielsen Television Audience Measurement (Base: All People 5+, Jan-Dec 2017, All Day) WHO WATCHES IN A SUBSCRIPTION TV HOME?

SUBSCRIPTION TV Shopper with (0200-2600) Total 5+ 18-49 25-54 55+ Child

Audience 265,700 90,600 98,900 130,200 29,700 AUD % 12.3 10.1 11.3 18.7 11.7

Av Daily Reach % 1min 67.1 61.6 68.3 82.3 69.0

Average Time Viewed (Univ) (hh:mm) 02:58 02:25 02:43 04:30 02:48

Average Age Group 45-49 35-39 40-44 65-69 40-44

Profile 100.0% 34.1% 37.2% 49.0% 11.2%

*Nielsen Television Audience Measurement (Base: All People 5+, Jan-Dec 2017, All Day) / This number includes FTA viewing within Homes. WHO WATCHES FREE TO AIR TV?

FREE TO AIR 2017 Total 5+ 18-49 25-54 55+ Shopper with (0200-2600) Child

Audience 231,000 86,700 100,300 101,900 32,300

AUD % 9.1 7.0 8.3 15.9 9.4

Av Daily Reach % 1min 54.7 45.0 52.2 81.4 53.4

Average Time Viewed (Univ)(hh:mm) 02:11 01:41 01:59 03:39 02:15

Average Age Group 45-49 35-39 40-44 65-69 40-44

Profile 100.0% 37.5% 43.4% 44.1% 14.0%

*Nielsen Television Audience Measurement (Base: All People 5+, Jan-Dec 2017, All Day) 2017 How Many New Zealanders Tune Into TV Content? HOW MANY NEW ZEALANDERS EXPERIENCE BROADCAST TV?

2.5 million New Zealanders in a day 57% of the population

3.35 million New Zealanders in a week 77% of the population

3.8 million New Zealanders in a month 87% of the population

*Nielsen Television Audience Measurement (Base: All People 5+, Jan-Dec 2017, All Day) HOW MANY NEW ZEALANDERS DOES TV REACH WEEKLY? AVERAGE WEEKLY CUME REACH 000S

000s Total 5+ 18-49 25-54 55+ Main HH Shopper with Child(ren) Total 3,349 1,368 1,453 1,144 443 Free to air 1,581 676 739 506 220 Subscription TV 1,767 691 714 638 224 AVERAGE WEEKLY CUME REACH %

% Total 5+ 18-49 25-54 55+ Main HH Shopper with Child(ren) Total 76.3 68.6 74.8 91.7 79.7

Free to air 70.8 61.8 69.3 91.5 72.6

Subscription TV 82.1 77.1 81.7 91.8 88.3

*Nielsen Television Audience Measurement (Base: All People 5+, No Subscription/Pay TV in HH, Subscription/Pay TV in HH, Jan-Dec 2017, All Day) 2017 How Long? HOW LONG DO NEW ZEALANDERS SPEND WITH TV EACH DAY?

TOTAL TV VIEWING 2017 - JAN TO DEC 2017 (hh:mm)

Total 5+ 18-49 25-54 55+ Main HH Shopper with Child(ren)

Total Households 02:31 01:56 02:15 04:12 02:30

Free to air Households 02:11 01:41 01:59 03:39 02:15

Subscription TV 02:58 02:25 02:43 04:30 02:48 Households

*Nielsen Television Audience Measurement (Base: All People 5+, Jan-Dec 2017, All Day) 2017 Where And When? WHEN DO WE EXPERIENCE TV AT HOME?

Shape of The Day

Source: Nielsen TAM. Total TV. TARP, 0200-2600. Jan to Dec 2016 V Jan to Dec 2017 Includes live viewing and playback through the TV set at the time it is watched within 7 days. Time bands use the industry standard 26-hour TV clock: 0200-2600 2017 Playback 1. 90% of broadcast TV viewing is live WONDERING ABOUT 2. 77% of playback viewing occurs LIVE OR PLAYBACK within 24 hours (PVR) VIEWING? 3. Drama audiences increase 4% with playback viewing HERE’S THREE FACTS. 1 IN 10 VIEWERS USE PLAYBACK TV

Since the inception of playback viewing in 2012, paid TV continues to have a larger proportion of playback viewing than overall TV viewing levels. Playback viewing now accounts for 10% of overall TV viewing, whilst is slightly higher on paid TV at 12% in thePLAYBACK last year. VIE

Source: Nielsen TAM, Total TV and SKY Network, Data for % of playback to 7 days (7day playback only available from 2012). MOST PLAYBACK IS WITHIN 24HRS OF BROADCAST 77% PLAYBACK TV PROGRAMS WITHIN 2 DAYS

77% playback in 2 days

Source: Nielsen TAM, Total TV. 0200-2600. Jan 2017 to Dec 2017. % of Playback viewing Includes live viewing and playback through the TV set at the time it is watched within 7 days. Time bands use the industry standard 26-hour TV clock: 0200-2600 MOST SUBSCRIPTION TV PLAYBACK IS WITHIN 24HRS OF BROADCAST 78% PLAYBACK TV PROGRAMS WITHIN 2 DAYS FOR STV 78% playback in 2 days

Source: Nielsen TAM, SKY Network. 0200-2600. Jan 2017 to Dec 2017. % of Playback viewing Includes live viewing and playback through the TV set at the time it is watched within 7 days. Time bands use the industry standard 26-hour TV clock: 0200-2600 PLAYBACK CAN INCREASE AUDIENCES BY UP TO 24%

Source: Nielsen TAM, Total TV. 0200-2600. Jan 2017 to Dec 2017 – FTA Networks only Includes live viewing and playback through the TV set at the time it is watched within 7 days. Time bands use the industry standard 26-hour TV clock: 0200-2600 2017 Viewing On Other Screens PREFERENCE TO USE DESKTOP/LAPTOP PC TO ACCESS CONTENT ONLINE

DEVICE USED TO WATCH TV PROGRAMMES / MOVIES ONLINE IN THE LAST 4 WEEKS

Source: Nielsen Connected Consumer Report 2017 (Base: Online New Zealanders aged 15+) WEEKDAY VIEWING PEAKS BETWEEN 6PM AND 10PM

WEEKDAY VIEWING BEHAVIOUR

O

Source: Nielsen Consumer and Media Insights Q1-Q4 2017 (Base: All People 10+), Television Audience Measurement (AP10+) Average Daily Reach %

WEEKEND VIEWING GRADUALLY BUILDS UP TO PEAK BETWEEN 6PM-10PM

WEEKEND VIEWING BEHAVIOUR

Source: Nielsen Consumer and Media Insights Q1-Q4 2017 (Base: All People 10+), Television Audience Measurement (AP10+) Average Daily Reach %

2017 Program All Stars

1. News was the #1 genre of the year, WHO WAS WATCHING closely followed by Soap WHAT THIS YEAR? 2. The top sporting programme of the year was International Rugby HERE’S THREE KEY Championship

FACTS TO KEEP YOU IN 3. The top reality programme of the THE KNOW. year was Dog Squad Ads and Advertisers TOP 20 CATEGORIES SPEND ACROSS TV IN 2017

CATEGORIES $MM CATEGORIES $MM

Source: Nielsen AIS Jan-Dec 2017 Only market-released channels where ad spend data is available TOP 20 ADVERTISERS SPEND ACROSS TV IN 2017

ADVERTISER $MM ADVERTISER $MM

Source: Nielsen AIS Jan-Dec 2017 Only market-released channels where ad spend data is available TOP 10 ADVERTISEMENTS ACROSS TV IN 2017

CREATIVES $MM

Source: Nielsen AIS Jan-Dec 2017 Only market-released channels where ad spend data is available Glossary KEY TERMS AND DEFINITIONS

TERM DEFINITION NOTES As Live Viewing of recorded television broadcast content that occurs within the same research day (2am-2am) but viewed at a later time than the original broadcast time; for example, pausing a program and then continuing to watch it as a recording Audience OR Projections The average number of people (or homes) in a target market who were watching a specific event or time = sum of people watching each minute of OR Thousands (000s) band each minute, expressed in absolute figures for that demographic the show or time band / sum of minutes Consolidated Data: Nielsen’s final ratings incorporating ‘Live’ viewing and viewing of broadcast content that is played back Consolidated 7 = 'Live' + 'As Live' + 'Time Consolidated 7 through the television set at normal speed either within seven days of original broadcast ('Consolidated 7') Shift to 7'

Commercial TV TV channels/services that air commercial content (television adverts) for profit. Demographic (group) or Basic descriptor of individuals or households using classifications such as age, sex, occupation group, Target education level, household size, etc Live Viewing of a television program as it is actually broadcast

Main HH Shopper Person aged 18 or older who has primary household shopping responsibilities

Overnight Data Nielsen ratings delivered each morning for the previous research day, incorporating ‘Live’ viewing and ‘Live’ + ‘As Live’ viewing viewing of content that was broadcast yesterday, recorded and played back by 2am (‘As Live’ viewing) Playback Viewing that has been recorded on the TV set and playback through the TV set, after the research day has end (0200-0200) but within 28 days Playback to 7 Broadcast television content played back through the TV set at normal speed within seven days of the ‘As Live’ + ‘Time Shift to 7' original broadcast KEY TERMS AND DEFINITIONS

TERM DEFINITION NOTES Profile% Shows the audience composition of an event or time band by calculating the proportion of viewers in the = Audience of target group of interest / target demographic to the number of viewers in the base target (usually Total People) Total People Audience Reach OR Reach (1 min) The sum of the number of unique viewers who have seen at least one minute of an event or time band An individual or household is only counted OR Cumulative (Cume) across its total duration once if they have viewed at least one Reach minute of the event or time band

Reach% The sum of unique viewers expressed as a percentage of the universe for the target demographic = Reach / Universe Estimate

Research Day 2am – 2am on any calendar day

Sample Size The panel size for any specific demographic

SHARE% The viewers of a particular event or time band per minute expressed as a percentage of Total TV viewing = Audience for an event / Audience for during the same time period Total TV at that particular time

STV or PTV Subscription TV also know as Pay TV – subscription based television channels where a fee is charge to view the broadcast channel or content KEY TERMS AND DEFINITIONS

TERM DEFINITION NOTES TARP (Target Audience The average viewing audience for a demographic expressed as a percentage of the relevant Universe = Audience / Universe Estimate Rating Point) Estimate Time Shift to 7 Playback viewing after the research day of broadcast and up to 7 days from broadcast

Time Spent Viewing / Demo Of the total number of people in the target market (potential audience), the number of minutes each = (Audience / Universe Estimate) x Event person viewed of a specific event. This variable considers the potential of the target, even if many Duration individuals in the target audience did not watch the event being analysed Time Spent Viewing / Viewer The average number of hours or minutes each individual has seen of the program or time band being = (Audience / Reach) x Event Duration analysed compared to the total number of people in the target audience. Each individual must have watched at least 1 minute of the event to be counted Total TV The Total Audience viewing across all of the TV channels that are broadcasted and measured by Nielsen – includes Live and Consolidated For more information contact us: [email protected]