Olswang Convergence Consumer Survey 2007
30 November 2007
The results of Olswang's 2007 Convergence survey were announced on 26 November 2007. In conjunction with YouGov, Olswang surveyed over 1,500 adults (weighted to the national online population) and 250 teenagers (unweighted sample). The message is a resounding one: convergence is taking hold in UK homes. Home networks are flourishing and the computer is increasingly used as multimedia entertainment device. What are the consequences of convergence for the music industry?
Device-rich
Our sample certainly has the capability to consume digital music. As well as 95% having broadband access (as you would expect from those completing an online survey), 63% had digital music players. About 1 in 7 of these (9% of the survey) had video enable devices, which, in terms of people finding it an important device, ranked only behind the mobile phone, Sky HD, Sky+ and Virgin's V+ service.
The computer is now core to the music experience of many
23% of users access music stored on the hard drive of a desktop or laptop computer every day, rising to 55% of 16 and 17 year olds. Streaming (4%) and downloading (4%) music is also a daily activity for some. More significantly, looking at a monthly time-frame, 73% access music on a hard drive, while dowlnloading (51%) streaming (42%) and 33% listen to podcasts or watch vodcasts.
There is still untapped potential too – when asked what type of content people wanted to stream or download over the internet, if it were free, while movies unsurprisingly topped the chart (with 59%), music videos (39%), simulcasts of concerts (30%) and radio, both live (29%) and catch-up (33%) also registered highly.
Sadly, turning this demand into money is still challenging – when asked about paying for TV or movies over the internet, only 12% of those with a computer and internet access at home either did so or were willing to do so, with 49% only willing to download or stream such content if it were free. The only other possible solution is advertising. While three-quarters of respondents actively take steps to avoid online advertising, 46% would be willing to put up with some advertising (and 9% to put up with "more than a new" adverts) if it meant they could get content for free.
Pirate Britain
The other solution to getting things for free remains prevalent. 14%, predominantly 16-24 year olds, admitted illegal downloading of music, with TV and film gaining ground (at 6% and 5%) – a further 9% of the sample said they would prefer not to say.
This activity is surrounded by confusions in attitudes over DRM. People seem to see DRM as something to be used only to control what has NOT been paid for – although only a third of respondents see this as fair while 75% of respondents recognise that downloading from unofficial file sharing sites is illegal. However, once they have bought some content, only 8% support the use of DRM to control what happens to it after that and 71% believe that, once bought, content should be usable on all devices they own. Only 12% say that once they have bought content, they should be able to give it away to friends for free, but it doesn't seem that DRM is something welcomed to deliver this.
The rise of networking
Perhaps the most significant result in the survey was that 55% of respondents now have home networks – and that these are not being used simply to allow multiple users in a home to access the internet. 42% of respondents claim to share music around their home network, a form of content only beaten in popularity by photos. People are also increasingly backing up their content with 32% claiming to back up their music onto various devices including CDs and extrenal and networked hard drives.
Games Consoles add to the use of digital music
Despite their broad functionality, overall, “next generation” games consoles are used primarily or exclusively for games and not for other “convergent” purposes. However, 28% of gamers use these consoles on at least a weekly basis to play music, rising to 40% monthly. This is a long way behind PCs, but still a high take-up. It remains to be seen how much further games consoles will move into competition with other media devices.
Use of Mobile Phones & Portable Devices
In a challenge to those seeking to build a business from music on mobiles, Mobile phones are more likely to be used to listen to music or podcasts which have been sideloaded from a home computer, or to listen to a built-in FM radio, than for streaming of audio or audiovisual content. When all users of mobiles and other portable devices were asked about the audiovisual content they would most want to watch on these devices, individual music videos (14%) were marginally the most popular form of content, however overall interest was low.
Social Networking and Music
The survey also adds to the growing mound of evidence about the vast popularity of social networking sites and their use as recommendation engines for music.
The full survey contains a wealth of over data concerning, among other topics, the take up of video on demand, the use of games consoles, popularity of social networking sites and the penetration of devices and technologies of all kinds.
For further information on the Olswang Convergence Consumer Survey 2007, please visit www.olswang.com/convergence07.
This article has been published on the Music Week website.
