DIGITAL REACH Environmental Scan February 2020 Prepared for Prepared by Digital Partner Organizations Nordicity and Lord Cultural Resources Copyright 2017 © NGL Nordicity Group Ltd. All Rights Reserved. Table of Contents 1. Project Overview 2. The Digital Landscape 3. Content Big Review 4. Content Small Review 5. Immersive Experiences 6. Conclusion 2 Copyright 2017 © NGL Nordicity Group Ltd. All Rights Reserved. Purpose of this Document ▪ Digital Reach aims to explore ways that arts organizations can use their content to connect with existing and new audiences. ▪ This document summarizes the research conducted by Nordicity and Lord Cultural Resources for Phase One of the project. ▪ This research aims to provide Digital Reach partners with an overview of: ▪ Network broadcasters and production companies with experience in bringing live performance and exhibitions to the screen ▪ Emerging OTT platforms for streaming arts content ▪ Arts organizations that have used their content for audience engagement in interesting and successful ways ▪ Digital usage trends and audience engagement with the arts online ▪ This research has been funded by Fund, with additional support for the City of Toronto. 3 Copyright 2017 © NGL Nordicity Group Ltd. All Rights Reserved. Project Overview Project Overview | Project Partners Consulting Partners Steering Committee Lead Organization Participating Organizations Funders 5 Copyright 2017 © NGL Nordicity Group Ltd. All Rights Reserved. Project Overview | Project By Phase Phase One: Phase Two: Pilot Phase Three: Exploration Projects Implementation and Sharing One-on-one OCADU facilitated Evaluation of pilot meetings with review and projects organizations** selection session Longer term Environmental Identification, implementation Scan** selection and planning Infrastructure refinement of pilot Formalized sharing whitepaper* projects of learnings Informational Launch pilot sessions and projects workshops* * in-progress ** completed 6 Copyright 2017 © NGL Nordicity Group Ltd. All Rights Reserved. ProjectHow does Overview Digital Reach | How understand Digital Reach content Understands Content The Digital Reach initiative is exploring content in two buckets, self-defined as 7 Copyright 2017 © NGL Nordicity Group Ltd. All Rights Reserved. THE DIGITAL LANDSCAPE The Digital Landscape | Overview of Section ▪ This section of research provides insights into audiences in this increasingly digital world. ▪ This section addressed the following research questions: ▪ Where and how are audiences spending their time online? ▪ What does the increasing time spent online mean for the arts? ▪ How are audience engaging and desiring to engage with arts online? 9 Copyright 2017 © NGL Nordicity Group Ltd. All Rights Reserved. The Digital Landscape | Audience Trends in a Digital World ▪ , where leisure time is limited and there is increasing ▪ Canadian and global audiences are spending increasingly more of their time online, and increasingly so on mobile devices. ▪ Audience expectations are shifting. They want to engage with content digitally. They want to have integrated digital experiences in all aspects of their lives. They want easy access to digital content, for free. And they want to be able to use that content without restrictions. ▪ In this context, cultural institutions need to respond to audience demands and embrace integrated digital engagement to maintain relevance and successfully build relationships with younger audiences. 10 Copyright 2017 © NGL Nordicity Group Ltd. All Rights Reserved. The Digital Landscape | What does this mean for Arts Organizations? ▪ organizations are facing . ▪ Time spent engaged in arts and culture activities dropped every year from 1994 to 2005, and has been level since (2016 report). ▪ On average, Canadians are spending about one hour less each month engaged in the arts (2016 report). ▪ With increased competition for limited leisure time and attention, accessing audiences in new ways is increasingly important. Source: Canadian Wellbeing Index, Hill Strategies Cultural Participation 2016 11 Copyright 2017 © NGL Nordicity Group Ltd. All Rights Reserved. The Digital Landscape | Where are Audiences Online? ▪ Pretty evenly split, along gender ▪ Skews slightly more female (39% ▪ 74% of females online use lines (24% of females online of female online use Instagram, to Facebook, vs. 62% of males compared to 23% of males online 30% of males online) ▪ Older demographic, with 72% of are engaging on Twitter) ▪ Heavily leans toward a younger 30-49 year old's using the ▪ 40% of those 18-29 years old use audience (72% of 13-17 year old's platform, and 62% of those 50-64, Twitter, compared to 32% of those use Instagram, 64% of those 18- and 62% of those 65+ aged 3-17, and 27% of those aged 29, and 40% of those 30-49. ▪ Has the most urban penetration of 30-49 years old. ▪ Lowest penetration in under 30k all the platforms (75% of urban ▪ Lowest penetration among income bracket among all the dwellers), as well as of college college-educated users (Only 32% platforms. educated users (75%). of college educated internet users engage on the platform). Source: 2019 Social Media Demographics, Sprout Social 12 Copyright 2019 © NGL Nordicity Group Ltd. All Rights Reserved. The Digital Landscape | Audience Behaviour More contextually ▪ The ultimate end goal is influenced process for audiences to consume or engage with your SITUATION – where are you? time? content. ▪ Interests, preferences, DEVICE – what device are you using? and motivations are more important SERVICE – do I have access to it? indicators of consumption behaviour CONTENT – is it good? will I like it? than demographics. ▪ These consumption behaviours also impact discoverability. More active Source: Ericsson ConsumerLab TV and Media 2015-2018 intentional process 13 Copyright 2017 © NGL Nordicity Group Ltd. All Rights Reserved. The Digital Landscape | Where are Audiences Globally? ▪ Global internet use is high and continues to grow steadily. ▪ 91% of users are accessing the internet on a mobile device. ▪ Time spent on social media is increasing globally: ▪ Users spent 135 minutes per day on social platforms in 2017, up from 126 minutes daily in 2016. ▪ Online platforms open up institutions to international audiences. Source: Statista, Rijksmuseum and Adweek 14 Copyright 2019 © NGL Nordicity Group Ltd. All Rights Reserved. DigitalThe Digital Penetration Landscape Trends | Where in Canada are Audiences in Canada? ▪ Canadians are spending increasing amounts of time online. ▪ 89% of Canadians use the internet daily. ▪ Canadian adults spend on average 22.8 hours a week online (any device). ▪ People are frequently accessing online content from mobile devices. ▪ 76% of Canadians own a smartphone ▪ 90% own more than one device. ▪ Consumers in Canada spend on average 3 hours a day on smartphones/tablets (not including voice activities). ▪ Apparent higher tolerance for advertising on mobile vs. desktop ▪ Younger audiences are the primary digital users, but older age groups are also increasing their use in a limited set of activities. Sources: Arts and Heritage Access and Availability Survey (2016-2017) Culture Track: Canada 15 Copyright 2019 © NGL Nordicity Group Ltd. All Rights Reserved. The Digital Landscape | Online Engagement ▪ Among forms of content, audiences wish to engage with video. 16 Copyright 2017 © NGL Nordicity Group Ltd. All Rights Reserved. The Digital Landscape | Consumption ▪ Video is the form of content that captures the most of audiences attention. 17 Copyright 2017 © NGL Nordicity Group Ltd. All Rights Reserved. The Digital Landscape | Digital Engagement with Arts and Culture ▪ Institutions need to embrace digital in order to successfully engage younger audiences in the future. ▪ The vast majority of younger audiences engage with arts and culture online. ▪ 81% of Canadians under 35 engage with the arts online. ▪ 84% of youth (16-24) have used technology or the Internet as a way to access the arts (compared to 66% for the total population). ▪ Indigenous and people of colour also show a higher than average online engagement. ▪ They are nearly twice as likely to want a digital or virtual component as part of their ideal cultural experience. Source: Culture Track Canada 18 Copyright 2019 © NGL Nordicity Group Ltd. All Rights Reserved. The Digital Landscape | Digital Experience is Driving Live ▪ Digital experiences are driving people to live experience, not taking away. ▪ Canadians under 35 are most likely to say their online arts consumption has led to an increase in live attendance (28% vs. 18% aged 35 and older). ▪ Digital engagement can spark relationships that eventually bring people in the door. ▪ Among Canadians that have streamed or watched pre-recorded content on the Internet, almost one-quarter (23%) say they attend more live arts events as a result. And for most people (67%) it is not having any impact on attendance. Source: Environics Arts and Heritage Access and Availability Survey 2016-2017 19 Copyright 2019 © NGL Nordicity Group Ltd. All Rights Reserved. The Digital Landscape | Digital Experience is Driving Live (Cont.) A recent study on streaming opera found that 35.7% of respondents have watched a livestreamed performance, and 72.8% say they are at least somewhat interested in doing so there is definitely room to grow. Source: Digital Opera Research and Intelligence Study 20 Copyright 2017 © NGL Nordicity Group Ltd. All Rights Reserved. The Digital Landscape | The Discoverability Matrix ▪ Content is an additional avenue to