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NEWS TRENDS

LINEAR TV IS MOVING TO DIGITAL, STREAMING IS GROWING

21. 7. 202121. 7. 2021
The key battle will be fought primarily for the total time spent watching TV screens in households according to a forecast by Nielsen.

Linear TV continues to be a significant tool to address mass audience, however, the role of a TV screen will gradually move from linear to digital. The importance of streaming has increased at the same time. The above-mentioned trends will impact the development in the audio-visual segment in the following years, predicts Nielsen. It presented the forecast on Tuesday’s webinar The State of Global Media. In addition to the two above-mentioned trends, it finds the growing impact of social media to be crucial.

Despite the high total reach of linear TV, Nielsen points out that linear TV viewing decreases by 2-3% on average globally every year. “It is not a dramatic decline but it is visible. In spite of that, linear TV has been critical and will continue to be for several next years,” said Ranjeet Laungani from Nielsen during the presentation.

He expects that the key battle will be fought predominantly for the total time spent watching TV by households. The position of a TV screen has been transformed from linear to digital according to researchers. Traditional linear TV broadcasters seek to offer video on demand (VOD); on the other hand, originally digital players are looking for a way to linear supply. The total time spent watching the “big screen” should thus become crucial. Therefore, Nielsen has started mapping the total “TV time” on the US market by individual types - broadcast linear TV, streaming or cable TV.

For now, the research agency’s data do not indicate that TV advertisers would cut their ad budgets for linear TV. Although most of them said in the survey that they were planning to keep the budget for linear TV adverting at a comparable level in the following 12 months, while a minority considered reducing the budget, reality does not correspond to the behaviour declared. For the first quarter of 2021, global linear TV investments increased by 7%, which was more than the total media investment growth (+5%) in that period.

In certain markets (South America, South-East Asia and South Africa) it is not true that TV is watched predominantly by viewers aged 50+, the audience includes more young viewers (most of them are up to 49 years) than in Western Europe and the United States. There are also differences between streaming services in the demographics of the audience they address. For example, Amazon Prime Video addresses older viewers than Disney+, while for YouTube and Netflix the age representation is balanced and similar across various age groups.

Source: mediaguru.cz
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