Ten Myths About Television

We debunk some of the myths about commercial television viewing in Australia.

Myth 1: People are spending less time watching television

•  Despite the plethora of entertainment and media options now available to consumers, TV consumption is actually on the rise.
• According to official OzTAM ratings, data daily metro TV viewing (ATV) increased to 3 hours and 11 minutes in 2010 (up from 3 hours and 5 minutes in 2009). Regional television viewing also increased to 3 hours and 17 minutes of television a day (up from 3 hours and 11 minutes in 2009).  
• And the increase in TV viewing isn’t just happening here. Both the U.S. and the U.K. are reporting increases in television consumption. 
• Roy Morgan also reports Australians still spend more of their media time with TV than any other medium – people spend 43 per cent of their media time with TV - almost twice that of the internet at 21 per cent. And while 16 to 24 year olds are keen adaptors of new media platforms, they are still spending a vast amount of their time watching TV.  
• You only have to look at the record sales of TVs to see that Australia’s appetite for television is greater than ever. The first half of 2010 saw sales of plasmas and LCDs jump almost 40 per cent!  

Myth 2: Free TV audiences are in decline

•   In 2010, commercial free-to-air television saw average audience increases across all key demographics in both metro and regional markets, both across the day and during prime-time. Pay TV actually saw declines of -1.9% during the day and -2.6% during the evening.  

Average Audience Comparisons – Free TV & Pay TV - 2010 vs 2009

Source: OzTAM & Regional TAM, 5 cap cities, 4 aggregated regional markets, surveys 1-10 2009 compared to surveys 1-10 2010 (ex Easter)

• The top rating weekly program on Free TV often attracts a combined average audience in excess of 3 million viewers. And every single one of the top 40 programs on Free TV, in any given week, attracts a combined average audience in excess of 1.2 million viewers. 
•   2010 saw all-time ratings records set for several Free TV programs:
- The first game of the State of Origin drew the highest audience ever
- The Melbourne Cup was the highest-rating Cup ever
- The Packed to the Rafters (Death of a Rafter) episode was the highest-rating Australian drama episode ever
- Masterchef’s finale was the highest-rating program in Australian TV ratings history.
• And Free TV’s average daily reach remains unrivalled, hitting a four-year high in 2010. Every day, 13.8 million Australians are tuning in to commercial free-to-air television – this is up from 12.9 million in 2009!  
• We also know that additional viewing is being driven across a range of other devices.  

Myth 3: Personal video recorders are having a negative impact on viewing

•  Digital technology is changing the way people interact and engage with their favourite TV shows. Personal video recorders (PVRs) have made it easier than ever for television viewers to watch more of what they want, when they want.  
• Deloitte’s 2011 Media Trends Report predicts that while the penetration of PVRs will increase; TV advertising will be almost entirely unaffected. “While DVRs (PVRs) provide the technological capacity to skip ads, the majority of owners are likely to continue watching their television live.” 
• PVR viewing delivers significant incremental audiences, with each of the top 40 time-shifted programs every week delivering 100,000+ more viewers once PVR viewing is taken into account.  

Myth 4: Pay TV is increasing in popularity

•  Pay TV’s penetration has stalled – they are in just 29.6 per cent of homes, nationally.
• Research conducted at the end of last year by Jigsaw among more than 1,500 digital TV viewers revealed that 8 in 10 people (77%) are now much less or less likely to consider subscribing to pay TV because of the increased choice offered by the new free-to-air channels. 
• And one in four (25%) of pay TV subscribers are now very likely or likely to consider cancelling or downgrading their service because of the increased choice offered by the new free-to-air channels.  
• Despite the hype, none of pay TV’s shows rank in the top 1,000 shows for the year! 

Myth 5: Pay TV’s share of viewing is increasing

•   During the evening, when the vast majority of viewing occurs, free-to-air TV accounts for 84.5 per cent of metro viewing (6pm to midnight) – pay TV accounts for just 15.5 per cent.  
• What’s more, people in pay TV homes actually spend more of their evening viewing time (56 per cent) actually watching free-to-air television.  
• Free-to-air’s share of viewing actually increased in 2010. In 2010, Pay TV’s share of viewing decreased. 

Myth 6: TV isn’t keeping up with the digital world

•   We’ve seen more change in the last two years in the broadcasting landscape than we’ve seen in the previous five decades. In fact, last year was a watershed year for free-to-air television. 2010 saw a world first – the first-ever live free-to-air 3D TV broadcast. We also saw the introduction of PVR homes into the ratings panels - signalling a new era in television ratings measurement. In addition to catch-up TV services, the networks have each launched an additional two channels each in the last 24 months! 
• In fact, Australian viewers now have access to three times more free-to-air TV channels than they did just two years ago. Freeview has been instrumental in driving take-up of digital television in Australia – 8 in 10 homes now have digital TV.  
• Australians are actively seeking out more and more TV-related content online – with network sites attracting many millions of unique users every month.  
• Free TV networks’ new and enhanced catch-up TV services provide viewers with access to their favourite programs, and additional content - enabling viewers to truly immerse themselves and engage with their favourite programs on a much deeper level. Free TV content is also available on mobile which means you can watch Karl & Lisa or Mel & Kochie while on your commute to work!  
• TV is now a truly multi-platform offering providing new opportunities for advertisers to build incremental reach and a deeper engagement with target audiences.  

Myth 7: New free-to-air channels are cannibalising the main channels

•   Rather than cannibalising viewing, digital technology is actually expanding the opportunities to view.
• While more choice does result in some fragmentation of audiences, the new channels have actually contributed to an overall increase in free-to-air’s share of viewing.
• The new free-to-air channels now collectively account for almost 20 per cent of daily and nightly viewing in metro markets. The collective share of just the new free-to-air channels is now starting to surpass all of pay TV’s 100+ channels.
• Free-to-air’s evening share increased in 2010 – in part, due to the new digital channels. Pay TV’s share was down year-on-year.
• Research conducted by Jigsaw at the end of last year found that the new channels are driving higher satisfaction levels of free-to-air TV overall. An overwhelming majority of respondents (7 out of 10) say free-to-air TV is getting better.
• The study also reveals that 1 in 3 people are watching more TV now that they have access to the new channels.

Myth 8: TV’s watercooler effect is being drowned out by social media

•  One of the reasons for television’s enduring popularity has always been its talkability factor. The water cooler effect of television still exists, it’s just found a new home online.  
• Social media is fuelling a conversation about popular TV shows and offering viewers a deeper interaction with their favourite programming.  

Myth 9: Television is not as effective as it once was

•   Numerous studies attest to the fact that television is still one of the best ways to build brands, drive sales or direct response. 
• A 2010 media comparisons study conducted by TVB in the US saw consumers rank television the most exciting, the most influential, the most persuasive, the most authoritative medium. It also ranked TV number 1 for the most engaging advertising and cited TV as their primary source of new product information.  
• A massive study by PricewaterhouseCoopers and IPA in the UK found that television pays back over 4.5 times its advertising investment in increased sales revenue, significantly more than any other medium. And, it showed that TV still affects sales a year after the campaign activity – almost as strongly as it did the first year of investment. 

Myth 10: Television is expensive

•  TV will always be supply and demand driven. However, the new digital channels are providing new and very cost-effective options for new advertisers.  
• The networks also offer in-house creative and production services meaning you can produce an ad for a fraction of the price.
• Each of the networks has in-house Integration Units that provide advertisers and agencies with access to valuable strategic planning, creative and production resources. These integration teams are experts in developing truly integrated cost-effective cross-platform solutions to business problems.
• Australia’s television ratings system is recognized as one of the most sophisticated ratings systems in the world; reliable, independent and transparent. Advertisers can get access to minute-by-minute ratings for programs within 24 hours of broadcast. It is what makes television a truly accountable and quantifiable medium.