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May 31, 2013 07:37 pm GMT
For years, it’s been said that Internet use would cut into the time U.S. consumers spend watching television. Today, those premonitions are beginning to hit the tipping point. TV ratings have dropped by 50 percent over the last decade. Goldman Sachs recently called the decline “the sharpest pace on record.” The firm found that ratings in the 18-to-49-year-old demographic – the key group targeted by advertisers – fell by 17 percent last winter compared with the winter before. ABC, NBC, and Fox were most affected, with decreased ad revenues cutting into profits. (Fox had to get distributors to pay higher subscribers fees to pull a profit). But even highest-rated CBS lost three percent of its 18-to-49 audience this season, The New York Times reportedin April. Morgan Stanley analystBenjamin Swinburne hadreleased chartsat the beginning of the year showing the ratings drop, claiming declines are a functional of income level. But it’s not just that. The writing has been on the wall for some time. Back in 2004, for example, studies indicated that television viewing would be one of the first leisure activities to be hit by Internet use and online socializing. (Other activities supposedly affected were sleeping and real-world socializing.) Though today, TV continues to remain the dominant medium, the emerging generation of so-called “digital natives” – the first to have been born into a world where consumer adoption of the web was already mainstream – seem to prefer other behaviors. And it’s more than just splitting time between TV and video games, or TV and mobile apps, or TV and online video. That’s why it’s funny that the general assumption is that services like Netflix, Amazon Instant Video, Hulu, and YouTube will eventually claim users’ time and eyeballs in the way that the “boob tube” once did. That may not be the case. We just don’t know yet. For a generation who grew up on the web, can we say for sure that watching TV-like content through other devices will be their preferred downtime activity? TUMBLR AS THE NEW “TV” Tumblr founder David Karp doesn’t seem to think so. Having built up an online community that Yahoo just acquired for $1.1 billion, he told Charlie Rose in an interview this week that Tumblr is a part of a larger transition in consumer behavior. “What regular people out there in the world do – right now, they spend a huge amount
Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/U99CrunLDJI/
As TV Falls Apart, Tumblr And Twitter Aim To Pick Up The Pieces
For years, it’s been said that Internet use would cut into the time U.S. consumers spend watching television. Today, those premonitions are beginning to hit the tipping point. TV ratings have dropped by 50 percent over the last decade. Goldman Sachs recently called the decline “the sharpest pace on record.” The firm found that ratings in the 18-to-49-year-old demographic – the key group targeted by advertisers – fell by 17 percent last winter compared with the winter before. ABC, NBC, and Fox were most affected, with decreased ad revenues cutting into profits. (Fox had to get distributors to pay higher subscribers fees to pull a profit). But even highest-rated CBS lost three percent of its 18-to-49 audience this season, The New York Times reportedin April. Morgan Stanley analystBenjamin Swinburne hadreleased chartsat the beginning of the year showing the ratings drop, claiming declines are a functional of income level. But it’s not just that. The writing has been on the wall for some time. Back in 2004, for example, studies indicated that television viewing would be one of the first leisure activities to be hit by Internet use and online socializing. (Other activities supposedly affected were sleeping and real-world socializing.) Though today, TV continues to remain the dominant medium, the emerging generation of so-called “digital natives” – the first to have been born into a world where consumer adoption of the web was already mainstream – seem to prefer other behaviors. And it’s more than just splitting time between TV and video games, or TV and mobile apps, or TV and online video. That’s why it’s funny that the general assumption is that services like Netflix, Amazon Instant Video, Hulu, and YouTube will eventually claim users’ time and eyeballs in the way that the “boob tube” once did. That may not be the case. We just don’t know yet. For a generation who grew up on the web, can we say for sure that watching TV-like content through other devices will be their preferred downtime activity? TUMBLR AS THE NEW “TV” Tumblr founder David Karp doesn’t seem to think so. Having built up an online community that Yahoo just acquired for $1.1 billion, he told Charlie Rose in an interview this week that Tumblr is a part of a larger transition in consumer behavior. “What regular people out there in the world do – right now, they spend a huge amountOriginal Link: http://feedproxy.google.com/~r/Techcrunch/~3/U99CrunLDJI/
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