Media Consumer Survey 2019 Australian media and digital entertainment preferences Contents | Media Consumer Survey 2019 Contents Foreword 03 About the survey 05 Consumer snapshot 06 Spotlight on… 11 Podcasts 12 News and magazines 13 Voice 14 The wide lens 15 When over-the-top becomes OTT 16 Searching for simplicity 18 Fair trade: data and advertising 21 Contacts 24 References 25 Foreword | Media Consumer Survey 2019 Foreword In this eighth edition of Deloitte’s annual Media The proliferation of content across over-the-top (OTT) telcos, and digital giants such as Amazon and Apple Consumer Survey, we again present a view services has continued over the past year. At the time of are perfectly positioned to evolve their existing value writing, there are more than 12 TV and movie services, propositions and capitalise on the opportunity. Sixty- of how Australians are consuming different as well as eight music streaming services, available in seven percent of respondents with a pay TV subscription media and entertainment. We explore how Australia. Gamers have a choice of more than 12 platforms also hold a subscription to a video streaming service and this is changing and take a closer look at the and subscription services across computer, console, 23% of all respondents bundle OTT media devices such behaviours, preferences, and trends impacting and mobile devices. With further launches in Australia as Fetch and Telstra TV with their broadband services. the industry. We also check out the new norms confirmed for the coming year, this number will continue As the content landscape grows more complex, two to rise, leading to more distributed content if rights remain divergent groups of consumers will likely emerge. Those and dive deeply into the value exchange exclusive, or less unique content libraries if rights are with narrow consumption needs who will entrench between consumers and media. shared across multiple services. Half (50%) of subscription- relationships with their preferred provider, and those video-on-demand (SVOD) subscribers say they now need with distributed consumption needs who will see value in more than one streaming service to access video content the role of an aggregator. they are looking for – on average subscribing to one and Audiences continue to grow more discerning in how a half paid video streaming services. As the number of their data is used. The push for greater transparency available OTT content services grows, consumers will be and increased data privacy raises the question of just forced to make hard choices across their preferred content how much information we are willing to exchange for a providers, potentially leading to frustration as ‘choice’ personalised experience and what role advertising can transitions into ‘trade-off’. play in the content environment. There’s work to do in Our quest for simplicity has set the scene for a potential building consumer comfort levels with data sharing; 78% new digital entertainment battleground – aggregation. of respondents believe companies are not taking adequate We’re feeling the strain of the complex content steps to protect their personal data. The use of data for environment, where 46% find it hard to know what targeted advertising plays into this concern, although content is on what service, and 75% want to be able to respondents had more general reservations about the search for all content in one place. Pay TV providers, presence of advertising in their video subscriptions. Foreword | Media Consumer Survey 2019 Adam Power Partner – Consulting Watching content ad-free is the most commonly valued subscription still prefer the physical print version (59%) National Media Sector Leader attribute of SVOD, with 89% of respondents agreeing. over the digital version (24%), illustrating the resilience of T: +61 2 8260 6550 Leading Millennials appear much more open to an newspaper hard copies. Subscribers continue to show E: [email protected] advertising-subsidised model though, where 54% said loyalty though. Most have held their subscription for more they would be willing to view ads with streaming services than three years, with 57% of newspaper and 55% of if it reduced the cost by at least 25%. Delivering content magazine subscribers staying steadfast, a statistic that has experiences that delight customers will be dependent been consistent since 2015 (59% and 54%, respectively). on a rich data-driven understanding of audiences, the Smart speaker ownership continues to increase (12%), winners in this category are likely to be those that build further fuelling our obsession with voice assistants. Google trust with their customers. Home leads all contenders, accounting for 74% of smart Kimberly Chang 1 Podcasts have steadily grown in popularity and this speaker users. While prevalence of smart speaker devices Partner – Consulting year we explore listening habits in detail for the first increases with income level, at 37% of high earners, National Tech, Media time. Forty-four percent of respondents identified younger generations use voice-enabled digital assistants & Telco Industry Leader themselves as podcast listeners, with Trailing and Leading such as Siri, Google Assistant and Alexa the most. Twenty- T: +61 2 9322 3233 Millennials the highest users (59% and 57% respectively). nine percent of Trailing Millennials use voice across any E: [email protected] Despite the format’s on-the-go flexibility, most podcast of their devices (phones, smart speakers, headphones) at consumers listen to podcasts at home (66%) as opposed least once per week, compared with only 16% across all to on the move, with 28% listening in the car and 15% other generations. on public transport. But we’re not yet flocking to pay for These findings represent just a snapshot of the Australian this content; only 16% of podcast listeners have ever media consumer behaviours that we explore in this year’s purchased an episode. report. In them, we hope you’ll gain fresh insights and This year sees another drop in the number of respondents meaningful perspectives relevant to your organisation. owning newspaper and magazine subscriptions, now Leora Nevezie at 15% and 8% respectively, compared to 17% and 11% Partner – Consulting last year. However, those willing to pay for a newspaper T: +61 3 9671 6442 E: [email protected] About the survey | Media Consumer Survey 2019 About the survey Focused on four generations and five This is the eighth consecutive year of undertaking this distinct age groups, the 2019 edition of the research in Australia. The survey is undertaken annually by an independent research organisation using self-reported Media Consumer Survey provides a view survey data from more than 2000 consumers surveyed of how people are consuming media and in Australia. Each year the survey is run, new questions or entertainment, particularly digital media and response options are added and some older questions entertainment. We explore how this is changing or responses are removed. This allows us to explore the and take a closer look at the behaviours, new and emerging behaviours and trends in media and entertainment consumption. This year we have also worked preferences and trends impacting the industry with a new partner to undertake the survey, and as such as well as how they may shift in the future. some data is not directly comparable to previous years. Survey participant age groups Trailing Millennials Leading Millennials Xers Boomers Matures 14 - 29 30 - 35 36 - 52 53 - 71 72+ Consumer snapshot | Media Consumer Survey 2019 Consumer snapshot 41% Trailing Millennials 30% Leading Millennials | Media Consumer Survey 2019 Consumer snapshot 24% Xers 21% Boomers 21% Matures Does age matter? Ad blocking software users Age group comparison 39% Matures 85% Trailing Millennials 71% Matures 22% Boomers 71% Leading Millennials 70 % Boomers 10% Xers 69% Xers 62% Xers 7% Trailing Millennials 47% Boomers 54% Leading Millennials % Those that believe 6 Leading Millennials Video gamers 37% Matures 51% Trailing Millennials News subscription ownership they should be able (on any device) (digital or physical) to ask a company to delete all or some of their personal data 71% Trailing Millennials 35% Matures 21% Leading Millennials 71% Leading Millennials 30% Boomers 20% Trailing Millennials 57% Xers 20% Xers 16% Xers 38% Boomers 12% Leading Millennials 10% Boomers 27% Matures 8% Trailing Millennials 6% Matures Paid subscription video on demand Media entertainment time spent Media entertainment time spent service (SVOD) ownership on free-to-air TV on streaming video Consumer snapshot | Media Consumer Survey 2019 Respondents’ most preferred entertainment What’s inside? activities (ranked in the top three) included: The average household In addition to TVs and 51% 37% 36% smartphones, what devices 52% Watching Streaming Listening Browsing the do we have in the household? internet free-to-air TV video to music The entertainment costs are adding up. What are we paying for? Although 56% maybe not Tablet 53% SVOD 29% Pay TV everyone is subscription subscription 30% paying... Set top box or OTT (and 84% of streaming device SVOD subscribers have Netflix) 28% use someone else’s entertainment subscription login details at least monthly 39% 23% entertainment 21% 13% Console 12% service bundled with paid music Ebook reader Voice enabled their mobile or streaming smart speaker broadband plan subscription Consumer snapshot | Media Consumer Survey 2019 News and magazines Brand trust, How do we consume?