The challengeof 15-24 year olds in Digital Entertainment

Peter Olaf Looms

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This evening’s menu1. Who I am and what I do2. DR and 15-24 year olds3. Highlights of research into

youth and digital media4. A case: Boogie5. Conclusions6. The future

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Who I am and what I do

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Who I am and what I do 1/3

Altid Sport

• Full-time consultant at DR, Full-time consultant at DR, a public service a public service broadcaster - “to broadcaster - “to inform, educate and inform, educate and entertain”entertain”

• Strategic planning, mainly Strategic planning, mainly digital TV and broadband digital TV and broadband

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Who I am and what I do 2/3• Teach postgraduate courses on project

management and strategy• Participate in R&D projects (mobile content

for youth, PVRs, interactivity and advertising) the University of Hong Kong the IT-University of Copenhagen EMMDIS MSc Programme - Cross Media Production -INA, Institut National d’Audiovisuel, France Institute of Interactive Television Research, Murdoch University, Perth, Australia (October/December 2004)

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The IT University of CopenhagenThe IT University of Copenhagen

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Who I am and what I do 3/3Current tasks:•Chairman of European standardisation programme for Personal Video Recorders (PVRs) in Europe

•Benchmarking of web, mobile & digital TV projects in the Nordic countries within the Nordvision New Media group

•Strategic planning of DR’s interactive media towards 2010

EICTA

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DR and the 15-24 years olds

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radio

tv

Supply of broadcast media in Danish - 1995

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Altid SportP5 P6radio

tv

Supply of broadcast media in Danish - 2004

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0 25 50 75 100

computer

internet

mobil telefon0,9%

1%

33%

%

Penetration of new media in Denmark -1995

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0 25 50 75 100

computer

internet

mobil telefon82%

78%

90%

%

Penetration of new media in Denmark - 2004

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Household penetration (%)

0

10

20

30

40

50

60

70

80

90

100

1953

1955

1957

1959

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995 19

97

1999

2001

2003

Danish households

TVVideoColour-TVTeletext2+ TVsetsInternetMobile phoneDVDGames consoleDigital TV>10 channelsStereo-TVNicam surround

Sources: Gallup Annual Survey, Gallup Index Danmark og Danmarks Statistik

Sat-TV: inkl. Fællesantenner, hybridnet og paraboler

*Bredbånd: ADSL, kabel, m.m. – Ikke ISDN

TTV mobilewww

Penetration of new media since 1953

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Ugentlig tv-forbrug i Danmark (alle danskere)

0

5

10

15

20

25

1991 (TV) 2004 (TV) 2004 (PC)

Timer/uge

PSB (DR+TV2s kanaler) Andre tv-kanalerTime-shift (VHS) VHS/DVD (færdigindspillede)Konsolspil PC på TV apparatPVR og lignende TV på PC

] 2-3%

<1%

Slow rate of changeSlow rate of change

Source: Gallup

Weekly television consumption (all Danes)Hours/week

Public Service TV (DR & TV2)Time-shift (VHS)Video console gamesPVRs and the like

Other TV channels (commercial)VHS/DVD (pre-recorded)Playback of PC video on TVTV tuners in PCs

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Ugentlig tv-forbrug i Danmark (alle under 30 år)

0

5

10

15

20

25

1991 (TV) 2004 (TV) 2004 (PC)

Timer/uge

PSB (DR+TV2s kanaler) Andre tv-kanalerTime-shift (VHS) VHS/DVD (færdigindspillede)Konsolspil PC på TV apparatPVR og lignende TV på PC

Rapid change...Rapid change...<1%

Source: Gallup

25-30%]

[

Weekly television consumption (Danes < 30)Hours/week

Public Service TV (DR & TV2)Time-shift (VHS)Video console gamesPVRs and the like

Other TV channels (commercial)VHS/DVD (pre-recorded)Playback of PC video on TVTV tuners in PCs

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DR has a problem...• Youth and television

15-24 year olds have never watched much TV.Currently 20% ofthem watch less than 15 minutes a week TV(TV drama in Danish)

Source: Gallup TV-meter 2004

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DR has a problem...• Youth and television• Youth and radio

Radio is on the decline

There are many other radio-like options...

Source: DRWhole population 12-19 year-olds

Figures from 1998-2003

Average weekly listening in 2003:21 hours 54 mins.

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DR has a problem...• Youth and television• Youth and radio• Youth and other digital media

81% of all 8-12 year-olds Play PC games daily

52% play console games

The average kid spends nearly an hour a day playing electronic games

Source: Gallup (2002) for Børnerådet/Youth Council

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DR has a problem...• Youth and television• Youth and radio• Youth and other digital media• Youth and mobiles

Youth have a varied and voracious appetite for all things digital - but we know too little about it

The mobile is the most ubiquitous personal device - 96% of all 15-24 year olds have one

A typical user sends 17 SMS messages a day

Source: Gallup Telekom Index, 2004

Translation:1 billion SMS for HKD 125/monthif you sign up for the free SMS service

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DR’s problem is legitimacyLicence-fee funded Public Service broadcasting= Something for everyone

It’s a problem is DR has nothing to offer the youth

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DR’s problem is legitimacyTwo hypotheses: A.

If DR loses the young as viewers, listeners or users of public service then they are lost for good

B. Media consumption patterns are a reflection of phases in life. The young will return to the fold as they get older

As yet we do not know which of the two is right.

Dare we run the risk that it will be B?

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DR’s problem is a global one What

Do we know about young people?

How Can we reach a better understand of what makes them ”tick”?

Isthere anything we can do as a result?

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Research into youth & digital media

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A recent study from the USA

www.online-publishers.org

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Methodological problems - interviews

Remember - mobile not widespread in US

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www.w2forum.com

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The importance of youth• In numerical terms, youth are

declining as a proportion of the global population (exceptions!)

• Increase economic power as a consumer group (USD 1.4 trillion annually)

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Increasing mobile adoption• Most popular youth technology

product• In many countries, the mobile has

reached 80% penetration of this group

• 8% of disposable income will be spent on mobiles in 2006 (cf. 1% on music)

• Need to develop relevant content and services for youth lifestyles

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Music • Mobile music is a myth (MP3 on the

phone)• Growth not driven by retails sales to

youth but as a promotional channel (music clips, promos, identifying tastes and trends) c.f. i-Podi-Pod

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TV • Youth audiences are in a decline

• Fewer watch TV• Those who watch see fewer hours • However more satisfaction with the TV that is

watched (BBC figures for the UK)• The mobile as the universal return

channel for participation• SMS and MMS popular as means of taking

part in live shows (votes, polls, contributing opinions and sharing content)

• Voting only associated with entertainment such as Reality shows - not politics

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Games • The mobile slowing down video The mobile slowing down video

gamesgames• As yet still a niche PSP, N-Gage, Nintendo As yet still a niche PSP, N-Gage, Nintendo

DSDS• Take up will depend on tying things into other Take up will depend on tying things into other

media and platforms such as online and video media and platforms such as online and video consolesconsoles

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Diffusion model breaking down• Early adopters do not influence Early adopters do not influence

youth adoption into mass markets youth adoption into mass markets cf. cf. ROARROAR

• Early adopters can however be used Early adopters can however be used for product developmentfor product development

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Right of Admission Reserved

www.roar.org

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Annual reports on youth research in the UK

2cv: research

34 Rose StreetCovent GardenLondon WC2E 9EB

Telephone+44 207 655 9900

DMA Š Target Youth Conference27th May 2004

Youth Leaders: ROARÕs LatestResearch Findings

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Traditional model of diffusion

Mainstream

Early Adopters

Opinion Formers

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Hypothesized Diffusion Model – 2002 ROAR Findings

Mainstream

Media

“Aspirants”

Opinion Formers

Celebrities

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Different Relationships with Media Across Groups

Opinion Formers screen by is it

fresh, new, part of my passion

Filter based on passion – strong allegiance to brands truly involved

Mainstream screen by is it everywhere -

360° covered?

Filter via ubiquity - slower to move on

Aspirants screen by is it in my

channels, part of my culture?

Filter via media channels – adopt for the

moment & move on

Media overload

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Artists tipped to ‘emerge’ during the period of our study by our music insiders.We asked about our respondents about awareness.

• Dizzee Rascal - UK Garage• Alfie – Guitar Indie /‘Folktronica’• Athlete – Guitar/Indie• Kings Of Leon – Rock• Mars Volta – Rock• The Rapture – Rock • Zinc - Drum‘n’Bass • Joe Budden – Hip Hop • Chingy – Hip Hop / R&B

Opinion FormersAhead

AspirantsAhead

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What bands are you into?• Qn : Of those artists you are aware of, which ones are you

into?

• We ordered the bands by popularity, then saw which of our groups were relatively more or less into each of the acts.

• And the survey said…

• Of top 5 most popular listed artists of the time, e.g. Wayne Wonder and Big Brovaz those being pushed in the media aspirants easily lead in all cases

• As we move further down the popularity stakes e.g. Zinc and Alfie, Opinion Formers start to dominate.

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The role of opinion formers is manifold

• Opinion formers do pass on information about new things most quickly.

• Specifically Opinion Formers spread most quickly to the mainstream.

• Opinion formers and the Mainstream are more likely to form friendship groups, with Aspirants more likely to hang out with other Aspirants.

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In pictures

Opinion

Formers

Mainstream

Aspirants

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Qualitative research shows relationship with media helps filter info overload• Opinion formers have passion centres and

will filter according to whether it is in that centre.

• Aspirants have a select subset of trusted ‘cool’ sources of media and they will be receptive to its output.

• Mainstream are more passively selecting based on volume of information from any media source.

• Opinion formers were more into esoteric acts whereas the aspirants followed more media-plugged acts.

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Hypothesized Diffusion Model – 2002 ROAR Findings

Mainstream

Media

“Aspirants”

Opinion Formers

Celebrities

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To…

Opinion

Formers

Mainstream

Aspirants

MEDIA

Different kinds ofmediainteraction

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Direct Applications

• Opinion former attitude + interest in a specific area.• Identify ‘super opinion

formers’ in a particular field.

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Handheld devices• ”The aesthetic has left the record sleeve and now the aesthetic is the artifact: the iPod”• ”The market is moving toward the artifact, not the music to fill it.”• Storing a few perennial favourites, otherwise shuffling new music in and out - relectant to pay for something you don’t keep

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Devices on the move• ”Music to structure the mood on their way to and from home”• Controlling their space, time and interaction.• Carving out a private area in public spaces• Wearing white earphones = feeling safe• Women less likely to be chatted up by strangers

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The SAFT project

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Research from May 2003

•Risk behaviour among 9-16 year olds in Denmark, Finland, Iceland, Norway, Sweden...•...and Ireland

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Activity Percentage ofInternet users (9-16)who have done X atleast once

Playing games on the Internet 71%Sending and receiving e-mails 50%Doing homework (9 Š 12 year olds) 28%Doing homework (13-16 year olds) 67%Getting information other than for homework on the Web 50%Surfing for fun 39%Visiting fan sites 32Chatting (9 Š 12 year olds) 28%Chatting (13-16 year olds) 68%Downloading music 31%Visiting hobby websites 24%Making their own websites 18%Using instant messaging (MSN, ICQ etc.) 12%Downloading software 10%Visiting news sites 9%Buying things on the Net (!) 7%

Kids and adolescents use the Net for many things

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© 2004 DRThe Net generation sub-culture -a first attempt to understand it

• Kids by and large have their own Net culture• The Net is the current toy and medium for gaining

experience, entertainment, communication and network building [in Denmark coupled with the mobile phone]

• The transition from childhood to adulthood involving experimentation, breaking new ground and challenging taboos currently takes place [primarily] on the Net

• The home, school and out-of-school clubs have become transparent areas where adults observe and engage in dialogue with children on equal terms

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© 2004 DRThe Future of the Protection of Minors - Attitudes and Possible Action

4 components:• Protect minors

from media• Satisfy kids’ need

for quality media• Participate in kids’

activities using media

• Bring children up to relate to media

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© 2004 DR1Who help the Net generation?

Kids most frequently learn about the Net from:

• Peers - friends, schoolmates (53%)• Parents (38%)• Trial and error (34%)• Their teachers (23%)• Older siblings (21%)• Websites (8%)• Libraries (7%)• Chat pal (7%)• Magazines (5%)

Facilitators of learning

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A case:

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Legitimacy - an issue of coverageDistribution

Media

Services

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Quiz

Media Analog tv DTV FM DAB Internet Mobile

TV

RadioWeb

Distribution

Votes

Community

Legitimacy - an issue of coverage

services

1. More and better options on ”old” media

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Quiz

Media Analog tv DTV FM DAB Internet Mobile

TV

RadioWeb

Distribution

Votes

Community

Legitimacy - an issue of coverage

Services

2. Nye options - new media and services on the platforms the youth have in order to maintain reach

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SMS-greetings

Media Analog tv TTV FM radio Internet

boogie tv videoclipsTV P3 boogie netradioRadio

Web boogie site

Distribution

Boogie-listTTV-

crawlerTV-

crawlerP2P boogie community

Tjenester

Boogie - which media/services on which platforms?

Mobile initially being used as return channel

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Boogie tv• form. fascination• content. identification• music. 60-70%• VTR• lifestyle• film fashion friends games parties sport dating

stars etc.• competitions• guests• events

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Boogie - music clips/tv on the web

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adio

Boogie - radio on FM (P3)

Monday-Friday 14-15

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Boogie - digital radio on the net

Our first playeri 2002

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Boogie - www.dr.dk/boogie

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Boogie Teletext s. 505

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• Mobiles as a return channel (video Mobiles as a return channel (video battles, SMS greetings, questions to battles, SMS greetings, questions to guestsin the studio)guestsin the studio)

• Also for SMS-greetings on TTV Also for SMS-greetings on TTV crawler crawler

• Interaction rate (conversion rate) as Interaction rate (conversion rate) as high as 10% of viewershigh as 10% of viewers

What doe we use mobiles for

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Boogie TV crawler - SMS

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Boogie Teletext crawler

Being able to show all greetings

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SMS chat on TTV

Currently not in use on Boogie

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Boogie klub/community

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Boogie klub/communityBoogie klub/community

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Boogie klub/communityBoogie klub/community

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FormatBoogie is a cross-media service• Synergy

Boogie is there for you• whatever you want, whenever you want, wherever you want it...

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Boogie - round the clock (mon-fri) • Accessibility• Participation

P2P contacts with Boogie community on www.dr.dkFind info på www.dr.dk

listen to Boogie on P3 (FM)Find Boogie-list on TTVSend a greeting - SMS

Watch Boogie on TV

listen to Boogie radio (Web streaming)

kl.6 kl.12 kl.18 kl. 24

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TXT-TV

Cyclone

Quality of Service - delivering it all

We have to work with everyone

(1212)

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Services: Competitions top the list •Which serviceshave you used in the last month?•Competitions and votes (inclusive of radio/tv) •4,9%•Ringetones •4,3%•Logos •3,4%•Information services (traffic, weather) •1,5%•Games •1,4%•M-commerce via SMS (cinema, parking) •0,5%

•Sportsnews and results •0,5%

• Ca. 5% of all Danes took part in a competition within the last month

• Very few (1 out of 200) subscribe to sports news and results

• Youth (15-24) in this respect are much the same as everyone else.

Source: Gallup Telekom Index, 2004

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Conclusion

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• We need to take youth culture

and interests seriously if they are not to become a subculture with few links with the rest of society

• As yet we have limited research on what is happening

• It is possible to get the youth ”back into the fold” if we tailor our offerings to their interests and needs.

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The future?

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• Cross media• Anything, Anytime, Anywhere• Public Service as a driver for new media take-up and not just a historical anachronism

I’m afraid I’m not a fortune teller!

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Peter Olaf Looms• DR / Danish Broadcasting CorporationTV-ByenDK-2860 Soborg DENMARK

t: +45 35 20 83 66m: +45 51 56 75 46e: polooms@inet.uni2.dk