In conversation with Nielsen Vice Chair Susan Whiting, Bewkes described television as showing “tremendous vibrancy” and praised the networks as well as the creative community for the high quality of programming. He also explained that the cable networks’ strong brands make it is easier for producers to create and pitch the right shows and for the networks to develop and shape them. Additionally, quality shows that are being created for broadcast television are later finding their way to cable networks.

Viewers all have their favorite networks and shows and thanks to technology, are increasingly able to watch them anytime, anywhere, on a rapidly expanding range of devices.

When asked about Time Warner’s own TV brands, Bewkes said CNN was the top news brand in the world, that the Cartoon Network was number one in Brazil and India, and that HBO was the leader in paid TV everywhere it operates, including Latin America, South East Asia and Europe.

Bewkes does not see advertising going away any time soon but thinks that marketers will add other things on top of traditional 30 and 15 second spots. “People can’t go to the bathroom during the Super Bowl because they don’t want to miss the ads,” he said. He underlined that consumers like good advertising. “If you had a choice between an InStyle magazine with ads and one without, which one would you pick? Most would pick the one with ads.”

Magazines, as opposed to newspapers dealing with commodity news, are greatly enhanced by digital technologies like the iPad, eReaders and tablet computers. They can be personalized, include moving pictures and give the reader the opportunity to go more in-depth on a topic.

Keep it Simple
Bodenheimer noted that ESPN’s mission is simple: To Serve Sports Fans. In accordance with this mission, the philosophy and strategy of the company is to adopt early and see what works – what works, improve it, what doesn’t, stop doing it. This goes for the production of live events to the adoption of new device applications. The biggest threat to the business is being complacent.

While TV is still the “Mack truck” of sports, with 80% of all sports programming consumed on TV, producing for TV vs. mobile vs. Internet is very different and understanding what works for each is critical to ESPN. A great example is the coverage of the World Cup in South Africa, where 10% of viewership in the opening weekend is not taking place on TV.

Usage of the second and third screens aren’t cannibalizing TV, but rather increasing consumption. And social media is being used to drive traffic to the ESPN website – predominant sites used include Twitter and Facebook.

Making it Work
Having one single point of contact for all content is critical. “At ESPN, there are no silos,” says Bodenheimer. One digital center allows a collaborative and seamless delivery of programming across TV, digital, mobile and online devices.

The idea that viewership now spreads across multiple screens is no longer a big deal. ESPN has been researching and experimenting in this sphere for the past 12 years and will continue to explore new methods to meet their company mission.

Their advanced testing facility in Austin Texas uses biotechnological methods to monitor the consumption of sports and advertising. And at the Walt Disney facility in Orlando, there is a large sports center where athletes come to compete – this gives ESPN the advantage of testing their extensive production facility to continue to improve their editing methods across all mediums.

The Next Big Thing
With the iPad having launched a few months ago and two million already out there, what could be the next big thing? The most honest answer to that question, is “I don’t know,” commented Bodenheimer. The answer will come from the 6,000 ESPN employees who have their ear to the ground and adopt new devices early. ESPN is committed to pedaling as fast as they can to serve fans across the globe in all manners. “Technology keeps us on our toes,” concluded Bodenheimer.

Among households with televisions, PCs, and mobile devices, TV continues to be the dominant media platform, with nearly 6 times more spent watching TV at home than accessing the internet (156 hours per month for TV, 27 hours for internet). Of those respondents who access the Internet, many were surfing while watching TV; nearly half (44%) engaged in “simultaneous viewing” at some point over the past month. Simultaneous viewing levels were slightly higher during the week than on weekends. The top 5 websites accessed during these simultaneous viewing periods were: Baidu, Kaixin, 163.com, Taobao, and Sina.

“The digital media landscape in China is evolving rapidly. With the country’s emphasis on Next Generation Broadcasting and the integration for TV/Radio Broadcast, Internet, and Telecommunication networks in the next five years, Chinese consumers have increasingly adopted digital cable TV, IPTV, high speed internet, and 3G cellular services,” said Jed Meyer, Managing Director, Media Services for The Nielsen Company, Greater China. “It is critical that media and marketers alike better understand what and how consumers watch, as more and more content and services are available via multiple platforms.”

“Nielsen’s unique capability to provide an understanding of TV, Internet, and Mobile media is helping to drive SMG’s strategy of offering a full range of media services to Shanghai and the national Chinese market,” said Mr. Li Huai Yu, CEO, BesTV, a subsidiary of Shanghai Media Group (SMG). “The three screen pilot provides us with a much needed holistic customer insight, and helps us to enhance the services we already provide to customers, while developing plans for IPTV and other new media services.”

A Three Screen Market
Findings from Nielsen’s Three Screen panel show that, during weekends, TV usage was 9% higher, and internet usage was 13% higher as compared to weekdays. Also, prime viewing time for TV is also the prime time for internet usage. Further, when comparing TV with internet, the highest penetration TV channels reached nearly 100% of households, while the highest penetration internet sites reached less than half.

Nielsen’s Three Screen report also found that while 94% of panelists occasionally checked their mobile phones while watching TV, only 11% report using their mobile phone to watch videos at some stage over the past month.

“Our study confirmed that the younger generation of people (ages 15-24) are the heaviest mobile users. This was not a surprise,” said Meyer. “What was a surprise, however, was that while men and women report roughly the same amount of total mobile usage time, women watch more video on their mobile phones than men. We hope that findings like these can help to point marketers in the right direction when leveraging different types of digital media platforms in order to reach their target consumers most efficiently.”

Nielsen’s Three Screen report also showed that the most common way to acquire video files for mobile phones was via PC transfer, followed by video streaming, then direct download via the internet. The study also showed that if respondents watched video on their mobile phones, they were also much more likely to access the internet on their mobile phone to surf websites, transfer files, and download software/wallpapers/ringtones and/or games.

The upcoming soccer World Cup offers a vivid example of how Chinese consumers are incorporating mobile into three screen consumption during a particular program or event. In a recent Nielsen survey, almost three quarters (73%) of Chinese consumers claimed that they would be following the soccer World Cup on TV, and more than half of respondents claimed that they will access video streaming. Sixty percent of respondents claimed they plan on reading online articles relevant to the soccer World Cup, 46% of respondents said that they will watch online video via their mobile phones, and 14% indicated that they will watch video clips via their mobile phones.

“The World Cup is clearly going to demonstrate how China is quickly becoming one of the world’s leading nations in three screen media. Chinese football fans will use all available media to stay on top of what is happening in South Africa in June. Whether it’s the World Cup or other programming, it’s clear that the simultaneous use of media will have a big impact on media consumption. There is a huge demand from media owners, advertising agencies, and advertisers for information that will enable them to better understand consumer behavior across China’s rapidly converging media. With this pilot, we begin to provide a truly integrated view. We can help our clients with the answers to some of their most important questions: What and how do people watch?” said Mr. Meyer.

While we are not yet spending 90% of our time watching “glowing rectangles” as The Onion joked last year, Americans are consuming more and more video across all three screens (TV, Web, Mobile) according to our recent A2/M2 Three Screen Report. But do we watch TV online the same way we watch on our living room TV?

Looking at Nielsen’s online panel data of U.S. visitors to online TV sites (ABC.com, CBS.com, CWTV.com, Hulu.com, or NBC.com) in the last 30 days, we actually found more differences than similarities when it came to viewing behavior, demographics, and even ad effectiveness. Demographically, those watching online TV Network video are closer to DVR users by gender breaks, but closer to the general online population relative to age.

The broader usage patterns suggest that online video is, for the most part, a replacement of DVR use, or used by those who do not have immediate access to TV. In short, TV network content online is used to catch up with programming, and not typically as a replacement for TV viewing as results from our email survey showed.

When We Watch
Online TV Network consumption appears to be an activity set aside in specific sessions from most other online activities. When we go online to watch TV shows, that activity dominates that particular online session, with women and the 18-34 crowd spending the biggest parts of their sessions on network viewing.

While many of us may watch TV with friends or family members, the viewing of TV shows online proves to be a rather solitary activity. This may change as internet connectivity to our main TV screens becomes more ubiquitous, but right now, the majority of online viewers prefer to be alone.

Advertising Impact
TV commercial spots reused online appear to be more impact on recall and likeability than creative just designed for online as this case study with food and beverage ads shows.

This look into the similarities and differences of TV viewing on the web should be a reminder to brand managers that “context” is just as much king these days as content.

As we focus our attention on 2010, clearly the global marketplace is redefining itself. Not only in economic terms but more importantly in consumer terms. Consumers are more diverse, demanding and connected than ever before. To help give you a clearer look into what’s ahead, Nielsen has assembled videos from our global team to deliver insights into what consumers watch and what they buy. With evidence of a recovery emerging, understanding the global trends and local conditions is essential to success.

2010 U.S. Outlook

Part 1: Cross Media

• Big Screen, Smart Screen, Small Screen: Top 5 Cross-Media Trends
• You Can Take It With You: Future Trends In Media

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Part 2: Consumer

• Winner Winner Chicken Dinner – Top 5 Consumer Goods Spending Trends
• Innovation Creates Opportunities for CPG Growth
• Aging Puts a Wrinkle in U.S. Marketplace

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Part 3: Advertising

• Talking Back – Top Five Advertising Trends
• Get Ready for the Audience-Centric Web
• What Would John Wanamaker Say Today?

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Part 4: Entertainment

• There’s No Business Like Show Business – Top Five Entertainment Trends
• Game On – The World is Watching More Than Ever
• Video Games in Play

Patricia McDonough, Senior Vice President, Insights, Analysis and Policy

SUMMARY: Meet the mini media moguls who are dictating electronic sales and media utilization patterns in American homes: kids. TV still engages children of all ages, but older children gravitate toward the Internet, while younger kids embrace DVDs, VCRs and DVRs. Whether a solo use or co-viewing with friends and families, connected kids represent a fertile opportunity for advertisers.

If you’re trying to locate a child between the ages of 2 and 11, your best bet might be to start your search in the media room, where older kids (age 6–11) clock in more than 28 viewing hours per week, primarily watching TV, but also spending close to 2.5 hours watching DVDs or playing video games, with an additional hour dedicated to the DVR and 18 minutes set aside for the VCR.

Younger children age 2–5 log close to 25 hours of TV time each week, more than 4.5 hours watching their favorite DVDs, about 1.5 hours viewing DVR offerings, more than an hour competing at video games and 45 minutes with the VCR.

Viewing patterns prove predictable, with TV viewing among younger children peaking in prime time, and peripherals (DVD, DVR, VCR, video game console) use topping off just before prime time (7p.m.). Among older children ages 6–11, viewing and peripherals utilization spikes during prime time, with the exception of video games—an after school time slot favorite.

Tech toys
Little hands are busy hands, whether at the controls of a game console, an MP3 player, high definition TV set or smartphone. Electronic-intensive households tend to be those with kids under age 12 who actively lobby parents for the newest device. For example, 68% of households with children boast an in-home video game system vs. 32% of homes overall.

Thirty-two percent more households with young children report owning a portable video game device. Almost 30% more child-centric homes listed an MP3 player among their electronics; 17% more logged on to view short-clip video streaming. Sixteen percent more households with young children connected to a broadband Internet service. Roughly 15% more kid-focused homes boasted a digital video recorder and large screen TV. Kid-inclusive households seem to be more tech savvy, dialing up 12% more smartphones than the average domicile.

TV time
Despite the onslaught of new viewing devices and media, television remains a perennial favorite among all children ages 2–11, with TV use at an eight-year high when including DVR playback or time shifted viewing. Additionally, the distribution of TV minutes by daypart is distributed remarkably consistently throughout the viewing week for both younger and older children, with younger children tending to watch more weekday morning television.

When younger kids ages 2–5 handle the remote, their network choices vary by daypart, with PBS jump-starting the mornings, and kid-oriented cable networks accounting for two-thirds of the viewing options. Older youths ages 6–11 spent less time with PBS programming and almost three-quarters of their viewing day was devoted to kids cable network shows.

Program picks
Left to their own devices, children 2–5 and 6–11 primarily watch kids programming. When another person enters the room, the viewing equation changes. Only 9% of kids 2–5 watch broadcast network programming alone during the day, but that percent increases to 40% when another child 2–11 watches with them and rises even further to 82% when an adult 18+ co-watches. The same pattern holds true for older children 6–11: 24% watch a broadcast network during the day alone, 38% watch when another child is in the room and 63% co-view with an adult 18+.

Digital decisions
The transition to digital television has had little to no impact on children’s viewing habits for either youth age group, nor has it materially changed the medium’s overall reach. Kids still view the same percentage of TV in different rooms in the house. Younger children 2–5 are bidding VCRs adieu, making room in the media cabinet for DVRs, but DVDs still dominate playback options. Conversely, older kids 6–11 are less enamored with VCRs and DVD players.

Even with the advent of time-shifting viewing alternatives, younger and older kids both prefer live entertainment, with more than 97% of TV viewing done live versus same day or other playback alternative. When younger kids did select playback programming, they watched more commercials (50%) than any other age group. Older kids age 6–11 took in the same number of commercials as adults (44%).

Repeat, replay
Video on demand (VOD) viewing patterns reveal an interesting fact about kids. When they like a show, they really like a show and will watch it over and over and over again. Kids programming accounts for some 28% of total free video on demand content, with many of the top shows paralleling TV offerings like Nick Jr., Nickelodeon, PBS Sprout and the Cartoon Network.

The highest ranked kids shows on VOD enjoy almost twice the average repeat viewing numbers compared with other free VOD content. Episodes of the most popular shows like SpongeBob Square Pants™ , iCarly™, Dora the Explorer™ or The Backyardigans™ can reel in as many as 50 million total minutes viewed in a given month.

Web kinds
Internet utilization increases with age, with almost half of children age 6–11 surfing the Web compared to just one-fifth of younger kids age 2–5. The heaviest keyboarding time concentrates on the weekends and in the after-school and after-dinner time slots. For all children ages 2–11, results are evenly split, with nearly half utilizing TV only and a little more than half allocating time to both TV and the Internet.

More so than other age groups, almost 45% of children watched TV solely, without simultaneously accessing the Internet. Approximately 60% or more of teenagers and older adults were concurrent TV/Internet media users.

Live TV has dominated the share of video minutes for the last four quarters running for kids age 2–11, with online streaming increasing marginally for younger kids 2–5 and remaining flat for older youths 6–11. Accessible and adaptable, kids are quick on the uptake, willing to try new media and devices, but loyal to live TV. Diverse media consumers, their appetite for programming grows unabated, as does total viewing time, affording more touch points and time slots for flexible marketers.

One hundred days is scarcely enough time to draw any firm conclusions about a new president’s capabilities. Even so, Barack Obama has garnered considerable respect for his media skills. Pundits have dubbed him the “new media president;” while some of the most cynical among them believe his underlying strategy is to end run traditional Washington gatekeepers by communicating more directly with constituents sympathetic to his agenda. But his fans and critics alike may be missing the bigger picture.

It’s true Mr. Obama has readily embraced most things digital. Throughout much of his campaign, his unique online audience bested those of his opponents – Hillary Clinton during the primaries, and John McCain in the general election – sometimes two-to-one. His historic 26-word text message announcing Joe Biden as his running mate reached nearly three million U.S. mobile subscribers, and is considered the nation’s single largest mobile marketing event ever. And since taking the oath of office, he has continued to use the web to blog on vital issues and field questions from the public. 

It should come as no surprise, however, that the president is taking full advantage of new technologies. Given the current state of the media, it would be more astonishing if he didn’t.

American consumers, like their counterparts around the world, have a seemingly insatiable appetite for information, from just about everywhere. Time spent with blogs and social networks, for example, is increasing globally at more than three times the rate of overall Internet growth, particularly among audiences 50 and older. Little wonder then that Mr. Obama is active on Facebook, MySpace, Flickr and Twitter.

Much has also been made about the president’s penchant for his Blackberry. Yet with the typical U.S. mobile subscriber now sending and receiving more text-based data than voice calls, the ability to “thumb” a message is critical to reaching certain sectors of the population.

Still, it is with video, the emerging lingua franca of the 21st century, that Mr. Obama has probably been most prolific. Americans today watch more video than ever before, primarily on three screens – television, the Internet and cell phones. But despite the growth of online and mobile media, more than 99 percent of screen time is still in front of the TV set in the home. Acknowledging this fact, the president has made ample use of the medium. [see: Video Viewing Up At WhiteHouse.gov]

Tonight, he will hold his third televised press conference, raising his monthly average above any other president since John F. Kennedy. Last month he appeared on both The Tonight Show and 60 Minutes, helping to drive up their ratings to the highest levels in four and 10 years respectively.

Consequently, President Obama has underscored two important facets of an ever-changing media landscape. First, as audiences continually fragment into smaller, self-defined groups, communicating with them will mean working across multiple platforms.  Second, the process is not a zero sum game. At any given time, consumers tend to favor the best available screen, basing their decisions on factors such as convenience, availability of content and the quality of the viewing experience. Thus, new media alone will not be enough to successfully reach all constituencies.

Regardless, Barack Obama will increasingly turn to new and emerging media technologies, as will the rest of the nation. Yet he is hardly the only president to do so. Some 67 years ago, Franklin Roosevelt became the “radio president,” as people began listening to radio to help carry them through the Great Depression. For his part, JFK initiated live, televised news conferences.

Back then as now, neither was the first to use their respective medium, though each was the first to truly master it. Like President Obama today, each was also able, to some degree, to bypass mainstream filters and talk more directly to the public. Since the invention of movable type, that has historically been one of the key advantages of any new medium. What is more, it is not likely to change.

Other findings include:

• Despite 3 in 10 households owning a DVR, live TV continues to be the favorite way to watch TV.
• 54 percent of U.S. households have one or two TVs.
• Hispanic households are more than twice as likely as other groups to download movies.
• Fully 91 percent of households have Internet access, with 57 percent having high-speed connections.
• Viewers can be clustered into eight discrete segments based on gender, age, media consumption levels, ethnicity and social outlook.

“Media has become a digital funhouse: phones deliver TV programming. Computers enable phone calls. Televisions serve as gaming arcades. Consumers access video wherever and whenever they can.  But the fact remains that TV still dominates,” said Dave Thomas, President, Global Media Client Services at Nielsen.

Read a complete review of the state of the media in the current edition of Nielsen’s Consumer Insight.