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Digital Media For On-The-Go Consumers Leads Global Growth
August 23, 2013
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A SPECIAL NOTE
My thanks and gratitude to all of you who sent me e-mails, and posted thank-you notes on Facebook, regarding my tribute to Al Coury in last week's issue.
I usually answer every reader e-mail, but this past week, it was a bit overwhelming.
It was by far the biggest response I have ever received in the newsletter's decade long history, and it was indeed heartwarming to know Al touched so many of you. I knew readers who offer their own stories about Al, and I've just added them to my memory vault beside all the others I've had in there for years.
Like I said, telling stories about Al and talking about him, keeps him alive in us all.
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Digital Media For On-The-Go Consumers Leads Global Growth
From The Center for Media Research this week:According to the PQ Media Global Consumer Usage of Digital Media Forecast 2013-17, consumer digital media usage worldwide is on pace to grow 11.8% in 2013, driven by double-digit gains in time spent with 14 of the 21 online, mobile and other digital media channels. While global digital media usage continues to rise at double-digit rates, traditional media consumption is pacing for decelerated 1.3% growth in 2013, due to live TV trending flat.
Traditional media garnered the vast majority of overall time spent on media in 2012, averaging 37.9 hours per week, or 87.6% of total media consumption. Nevertheless, the consumer transition to digital media, particularly among younger generations, is gaining momentum. Consumer digital media usage accounted for 12.4% of global time spent with media in 2012, nearly double its share in 2007, while digital media's share of total media revenues almost doubled to 22.9%, PQ Media found.
Patrick Quinn, CEO, PQ Media, says "... the ability of digital media to ... target and engage on-the-go consumers ... key driver behind the gains in share of total media usage and revenues ... traditional media still accounts for the lion's share of media consumption ... (but) post-Boomer generations spend on digital media is increasing at double-digit rates ... hastening shift of advertising and marketing dollars..."
Surging global demand from iGens, Millennials and GenXers for online and mobile video, social media and games, as well as over-the-top (OTT) video will boost consumer digital media usage this year to an average of 6.0 hours per week, according to the report. GenX (1964-79) led all other generation segments in 2012 with 6.61 hours of average digital media usage per week, followed by Baby Boomers (1946-64) at 5.88 hours.
U.S. consumer digital media usage averaged 13.84 hours per week in 2012, or 21.7% of total U.S. media consumption, placing the country fifth among the world's 15 leading markets. Average weekly consumer digital media usage increased 6.6% in 2012, while traditional media usage fell 1.2% to 49.80 hours weekly.
U.S. consumers used Internet media, including online video, social media and e-books, most often in 2012, as web-based media accounted for 46.5% of total digital media usage, which averaged 6.44 hours per week. Meanwhile, mobile media usage grew the fastest of the three major digital platforms in 2012, surging 28.7% compared with the prior year.
Although smartphone penetration reached nearly 50% by year-end 2012, the U.S. still trails many other developed nations, such as Japan, South Korea, Australia and the U.K. Of the 21 digital media channels tracked for this report, OTT Video, part of the "other" digital media category which includes DVR, VOD, ITV Games, and downloading videos via console videogame hardware, was used more than any other digital media channel in 2012.
The average U.S. male consumer spent 1.5 hours more per week using digital media than his female counterpart in 2012, as American men consumed digital media at an average of 14.68 hours a week compared to 13.01 hours for women. The female average is skewed lower as a result of older women watching nearly one hour more per week of live TV than other demographics, while younger men are more avid videogame players.
Each of the five generation segments averaged more than 10 hours of digital media usage per week in 2012, led by GenX at 18.21 hours. Of total media usage, the average iGen (orGenZ, the generation currently being born ... after the Millennial Generation) used digital media channels 31% of the time, the highest share of the five generations.
Average digital media usage among U.S. consumers is projected to increase 5.8% in 2013 to 14.64 hours weekly, and reach 19.30 hours per week in 2017, rising at a 6.9% CAGR over the next five years. While growth will trail the global average, due to market maturation, it will exceed traditional media usage growth, which will decline at a 1.8% CAGR during the forecast period. Consumers are steadily migrating to digital media and devices to access news, entertainment and information for personal use. Digital media usage will account for 29.8% of total media consumption in 2017, ranking the U.S. fourth globally.
GenX consumers will remain the largest digital media users among the five generations, growing to 24.99 hours per week in 2017, followed by Millennials and Baby Boomers, each of which will surpass 20 hours of weekly usage. By 2017, 45.1% of iGen media usage will consist of digital media, as Millennials and GenXers both exceed 33%.
The U.S. is the leading market for computer tablet/e-Reader penetration, which will drive up consumer mobile media usage at a 15.2% CAGR through 2017, says the report. Computer tablets outsell e-Readers by an almost 5-to-1 margin, but the latter is favored by older generations, such as Baby Boomers and the Greatest Generation, who are beginning to shift their reading to digital versions of print products, a trend accelerated with the closure of bricks-and-mortar bookstore locations of major retailers.
Internet media will remain the most popular digital platform in 2017, reaching an average of 8.22 hours per week of usage, although its share of total digital media usage will fall to 42.6% as more U.S. consumers use mobile devices to access content, particularly related to social media. Within the "other" digital media usage category, videogame usage is expected to surge due to new gaming hardware launched in late 2013
For the free executive summary, and access to the complete report, please visit PQ Media here.
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THE 'A-SIDE' - TRACK 2
WHY AMAZON WINS THE TIME WARNER VS. CBS FIGHTWith the NFL regular season just a couple weeks away, CBS and Time Warner Cable remain locked in a stand-off nobody understands. Everyone is a loser. Time Warner Cable subscribers still can't watch CBS or Showtime, missing their favorite shows. Viewers then blame their cable operators and CBS loses viewers. But at least one company escapes this looking good: Amazon.
Full story at TheWrap.
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THE 'A-SIDE' - TRACK 3
FROM ROLLING STONE: MORE ABOUT 3-D MOVIES ... ARE THEY OVER?When James Cameron says there's too much 3D in movies, it's time to listen.
There's a difference between movies shot in 3D (like his 'Avatar') and films converted in post-production, he says: "If you spend $150 million on effects, the film is already going to look spectacular." Read More
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THE 'A-SIDE' - TRACK 4
MUSIC BIZ TRENDS & STRATEGIESA new course from Berklee Online, this forward-thinking online course guides students through the critical areas of growth in the new music industry, including:
Publishing and licensing
Marketing, promotion, and retail best practices
Developing revenue options for musicians
Current practices for utilizing video
New business opportunities
Learn More----------------------------
THE 'A-SIDE' - THE BONUS TRACKS
* Lady Gaga Releases 'Applause' Video: Watch
* The 24 Wildest Moments in MTV Video Awards History
* Richie Sambora Fired From Bon Jovi Tour: Report
* Flashback: Billy Joel Covers Bob Dylan in the Soviet Union
* Director's Cut: Nirvana, 'Heart-Shaped Box'
* Prince Trolls the Web With Amazing Dave Chappelle Single Artwork
* Lady Gaga Manager Troy Carter Teams with Capitol Music Group for Joint Venture
* Journey Recount Singer's Wild Ride in 'Don't Stop Believin" Doc
* Motley Crue Plot Farewell Tour: 'We're Going Out on Top'
* iTunes Radio to Launch Next Month (Report)
* Universal Music Distribution Owns Record Nine of Top 10 Digital Songs
* 10 Movies That Took Forever to Get Released (Like 'You're Next')
* 5 Pleasant Surprises About Famous People You Had All Wrong
* The Importance Of Online Music PR
* Government seeks input as to copyright policy for digital age
* Why iPhone 5C Is a Smart Move by Apple
* Drool-worthy headphones you've never heard of
Short News Items ...
NEIL & CRAZY HORSE CANCEL TOUR:
Neil Young and Crazy Horse have cancelled their upcoming four-city North American tour due to an injury to guitarist Frank "Poncho" Sampedro's hand. "[His] doctor has indicated that Sampedro's hand requires additional time to heal properly," says a press release. The band canceled the final seven dates of their summer European tour earlier this month due to the injury.
LUKE BRYAN IS BIG:
Luke Bryan's new album, which debuted at #1 on the Billboard Top 200 Album Chart, logs the third-largest sales week of 2013, surpassed only by the debuts of Justin Timberlake's 'The 20/20 Experience' (968,000) and Jay Z's 'Magna ... Holy Grail' (slightly more than 528,000). 'Crash My Party' also claims the largest week for an album by a male country artist since 2004. Tim McGraw was the last male country artist to sell more copies in a week, when his 'Live Like You Were Dying' bowed with 766,000 in November 2004.
THIS SHOULD BE INTERESTING:
The man who bought John Lennon's molar two years ago – Canadian dentist Michael Zuk – is seeking headlines again, putting out a press release and launching a website indicating his intention to extract DNA from the tooth with the lofty goal of cloning the legendary musician. Scientists Working to Extract DNA From John Lennon's Tooth
BEYONCE BOOED:
Music superstar Beyonce was booed at Britain's V Festival on Saturday after she left thousands of fans waiting in the pouring rain. The singer headlined the opening night of the event in Chelmsford, England. She got off to a bad start by taking to the stage 20 minutes late, leaving the crowd standing in the wet and windy conditions. A chorus of boos and jeers rang out through the site before Beyonce finally started her set. (Source: The Sunday Morning Herald )
STING ALBUM INFO:
Sting grew up near shipyards in northeast England, and he still recalls "a massive ship at the end of my street blotting out the sun." Those memories inspired 'The Last Ship,' the singer's first solo album in 10 years, from a musical set to open on Broadway next year.
STILL MORE BEACH BOYS:
The Beach Boys are releasing their 50th anniversary celebration with 'Made in California,' a six-CD collection featuring over seven-and-a-half hours of music. Along with original songs, demos and alternative takes, the Hawthorne, CA natives also stuffed 'Made in California' with television footage and radio performances, some of which have never been released before.
TIMBERLAKE & N'SYNC FOR VMAS:
The New York Post is reporting that Justin Timberlake and his former bandmates will take the stage together during the show Sunday night at the Barclays Center. If it happens, it'll be one of the pop group's first performances as a unit since they disbanded in 2002.
A DUI FOR A PARTRIDGE?:
Authorities say former teen heartthrob David Cassidy was pulled over in upstate New York for failing to dim his headlights and charged with DWI after tests showed his blood-alcohol content at .10, higher than the state's legal limit of .08.
AND OF COURSE HE'LL WRITE A SONG ABOUT IT, ETC:
DMX is denying he was in possession of marijuana when he was arrested late Tuesday in South Carolina.
AND OF COURSE HE'LL WRITE A SONG ABOUT IT TOO, ETC:
2 Chainz was among the 11 men arrested Thursday morning in Oklahoma City after refusing to allow police officers to search their tour bus following a concert. The rapper's bus was being stopped overnight due to broken taillights when police suspected there was illegal drug use inside. A request to board the vehicle without a search warrant was denied and a nine-hour standoff ensued, police say.
AEROSMITH NO GO, NO SHOW:
Aerosmith have been forced to cancel their scheduled appearances in Shanghai and Taipei at the last minute, citing "uncontrollable circumstances," but the band say they hope to return one day. The band said in the statement that the local promoter had been unable to meet contractual obligations.
EVERY DAY IS A GIFT, DEPT:
No one is more surprised to be alive at 72 than David Crosby. "Sometimes I wonder, 'Why me?'" he tells Rolling Stone. Now working on his first solo album since 1993's Thousand Roads, he'd love to tour once more with Crosby, Stills, Nash and Young. Read More
MYSTERYLAND WOODSTOCK:
Bethel Woods, the site of the original 1969 Woodstock festival, will host a fresh throng of music lovers next Memorial Day when Mysteryland, the longest-running electronic music festival, takes over the upstate New York area in 2014.
Leaving Us
Elmore Leonard, whose fiction provided the basis of films including 'Jackie Brown' and 'Get Shorty,' and the FX television show 'Justified,' died at 87. The confirmation came after a post on Leonard's Facebook page from Gregg Sutter, Leonard's researcher and webmaster. Leonard died in Detroit, where he spent most of his life.
Sid Bernstein, the veteran entertainment impresario who helped usher in pop music's British Invasion by bringing The Beatles to New York City for history-making concerts at Carnegie Hall and Shea Stadium, has died. He was 95. Bernstein, who also organized shows for Tony Bennett, Judy Garland, Frank Sinatra, James Brown, ABBA, Jimi Hendrix and countless other acts, died Wednesday of natural causes in New York, his longtime friend and publicist Merle Frimark announced. Bernstein couldn't get his agency interested in The Beatles, so he handled the job himself and paid the group $6,500 to come over from England to play two shows at Carnegie Hall (both on Feb. 12, 1964). Three days earlier, the Fab Four had performed on The Ed Sullivan Show on Broadway. On Aug. 15, 1965, Bernstein got the Beatles back in New York to play before 55,000 screaming fans at Shea Stadium.
Quotes of the week
"Ironically, the Internet proved to be a friend. When 'Arrival' first came out [in 2001], Napster stole the album. We spent a ton of money flying to New York making this record only to have it up there for fans to get it for free, so I hated the Internet. Then it comes around to serve us well in the future. It's quite a tool and for us it was a blessing."
-- Journey's Jonathan Cain, in Rolling Stone, talking about how the group found new lead singer Arnel Pineda online.
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Study: People Far Away From You Not Actually Smaller
PRINCETON, NJ—According to a groundbreaking new study published Thursday in The Journal Of Natural And Applied Sciences, people who are far away from you are actually not, as once thought, physically smaller than you.
The five-year study, conducted by researchers at Princeton University, has shattered traditionally accepted theories that people standing some distance away from you are very small, and people close-by are very big.
"The data was irrefutable in demonstrating that when someone standing directly in front of you begins walking away, their body does not, as previously assumed, gradually shrink before eventually disappearing entirely," said Dr. David Pinard, lead author of the study. "Rather, our findings indicate that they maintain their original size regardless of how tiny they may appear."
The Music Industry Past, Present & Future, And The Internet I answer questions on EconTalk
I did an interview about the industry and the Internet at EconTalk with host Russ Roberts. Russ is also a professor of economics at George Mason University, blogs at Cafe Hayek, and has written three novels that teach economics. He's also the co-creator of the Keynes-Hayek rap video. (And if your understanding of the economic meltdown that occurred needs to be enlightened, this video will do it)
In the interview we talk about the evolution of the music industry, the impact of the digital revolution, and I give my reasons for believing in the virtues and potential of the Internet in enhancing the music industry. I point out, as I have many times here in the newsletter, that the internet allows numerous artists to make money from their music and it can enhance revenues from live performances by expanding an artist's base. We also discuss the challenges facing record companies and I suggest that the full potential of the Internet as a distribution channel has yet to be fully exploited. There's a lot of ground covered, but based on the comments already posted of those who have tuned in, they've enjoyed it.
Read more about it by clicking here.
Smart Marketing Consulting Services
Smart Marketing Consulting Services has been in business sixteen years, and consults clients in the music, entertainment, attraction, media, and technology industry on branding, marketing, online exploitation, maximizing new media, and more.
"And the beat goes on, the beat goes on ... drums keep poundin' rhythm to the brain."
"Work is life, you know, and without it, there's nothing but fear and insecurity." -- John Lennon
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