state of the industry - Entertainment Merchants Association
Transcription
state of the industry - Entertainment Merchants Association
STATEOFTHEINDUSTRY INDUSTRYOUTLOOK HOMEENTERTAINMENTANDHOTTRENDS NielsenEntertainment July23,2013 Copyright©2013TheNielsenCompany.Confidentialandproprietary. AGENDA RetailTrends HomeEntertainment 3 RETAILTRENDS LARGEBOXRETAILERSDRIVESTOREGROWTH U.S.StoreCounts 38,513 40,727 Drug 31,590 33,192 Supermarkets$2MM+ MassMerch Supercenters Copyright©2013TheNielsenCompany.Confidentialandproprietary. WarehouseClubs 4,578 4,184 2,462 3,861 1,067 1,261 8,495 7,021 Electronics Bookstores ToyStores 67%+ofgrowthfrom nicheformats 2,585 1,670 1,282 674 2005 2012 ExpansionfromallformatsbutMassin2012 Source:NielsenTDLinx 5 WALMART MAINTAINSLARGESTFOOTPRINT … StoreCount 4,500 4,000 4,049 3,500 3,000 2,500 1,784 2,000 1,500 1,221 Copyright©2013TheNielsenCompany.Confidentialandproprietary. 1,000 1,056 620 622 Sam’s Costco 500 Ͳ Walmart Target Kmart http://stock.walmart.com/financialͲreporting/unitͲcountsͲsquareͲfootage (5/31/13) http://investors.target.com/phoenix.zhtml?c=65828&p=irolͲhomeprofile (5/22/13) BestBuy2013AnnualReport(February2013) http://searsmedia.com/kmart/kmart.htm (2/2/13) http://edgar.secdatabase.com/157/119312513117085/filingͲmain.htm (4/11/13) BestBuy 6 …BUTSEESNEGATIVESAMEͲSTOREͲSALESGROWTH %ChangeinSameͲStoreͲSalesforlastsixreportedmonthsorquarters* 5 4 3 2 Copyright©2013TheNielsenCompany.Confidentialandproprietary. 1 0 Ͳ1 Ͳ2 Walmart* Target** Kmart* Ͳ3 Ͳ4 Ͳ5 Ͳ6 1st 2nd Source:Companypressreleases(excludinggas) 3rd 4th 5th 6th (current) 7 EͲCOMMERCEISFASTINGGROWINGCHANNEL Channel$Share 24.1 Supermarkets Supercenters Drug EͲcommerce HomeImprovement Conv/Gas Club Department Copyright©2013TheNielsenCompany.Confidentialandproprietary. MassMerch Electronics Liquor Dollar Apparel Auto SportingGoods Pointchangevs 2011 10.0 9.6 9.1 7.5 7.2 6.5 5.6 5.2 2.6 2.2 1.8 1.6 1.6 1.5 Source:NielsenTDLinx&NielsenAnalytics2012vs2011 Ͳ1.2 1.6 0.5 3.8 Ͳ0.9 0.1 0.5 Ͳ0.8 Ͳ2.0 Ͳ0.6 Ͳ0.3 0.2 Ͳ0.4 Ͳ0.1 0.0 8 ANDWILLCONTINUETOGROWINNEXT5YEARS Copyright©2013TheNielsenCompany.Confidentialandproprietary. CAGR2012to2017 EͲCommerce Supercenters Pet Dollar Club DiscountDept Drug SportingGoods Conv/Gas Home,Bed,Bath Supermarkets Auto HardwareHomeImprovement Liquor Department Apparel Electronics Office Toy Books MassMerch WinningShare AverageGrowth LosingShare Ͳ10 Source:NielsenTDLinx&NielsenAnalytics Ͳ5 0 5 10 15 9 MOBILEENABLINGONLINESALESGROWTH HaveDoneMobile Shoppingon SmartphoneorTablet? Whichofthefollowingactivitieshaveyoudonein thepast30daysusingyourmobiledevice? 25% Makingadigitalpurchase 42% 24% Purchasingaphysicalitem ondevice Copyright©2013TheNielsenCompany.Confidentialandproprietary. No 22% 38% 23% Usingdeviceforpayment Yes 78% Usingsocialmediato commentonpurchase Purchaseaservice MobileShoppingActivitiesAmongAll SmartphoneandTabletOwners Source:MobileShoppingReport,Q32012 23% 19% 20% 15% 25% Smartphone Tablet 10 HOME ENTERTAINMENT Copyright©2013TheNielsenCompany.Confidentialandproprietary. DISCSALESSTABILIZING,BDSALESGROWING Source:NielsenVideoScan;YTDgoesthroughJune2nd,2013 12 CASUALBUYERSLEAVINGTHECATEGORY Dollar Volume= Copyright©2013TheNielsenCompany.Confidentialandproprietary. +1.8% Ͳ5.1% +7.3% NumberofBuyers AmountPurchased (Penetration) (BuyingRate) BuyingRate= NielsenHomescan, 52wksendingQ12013 +4.7% +7.3% NumberofPurchase Occasions VolumeperOccasion (PurchaseFrequency) (PurchaseSize) 13 MASSANDONLINEHAVEMOSTLOYALCONSUMERS Leakage LoyaltybyShopperGroup ShareofWalletSpentinChannel Copyright©2013TheNielsenCompany.Confidentialandproprietary. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 100% 58% 51% 34% TotalUS Mass Online Electronics 24% 19% 18% Club VideoStore Grocery Source:NielsenHomescanConsumerPanel NielsenHomescan,52wksendingQ12013 14 ONLINESHOPPERSSTILLBUYATMASS,ELECTRONIC Copyright©2013TheNielsenCompany.Confidentialandproprietary. CompetitiveOutletSpendAmongOnlineShoppers 100% 90% 80% ShareofDisc 70% SpendinBrick 60% &Mortar 50% ShareofDisc 40% SpendOnline 30% 20% 10% 0% 49% 51% OnlineShoppersDisc Spendon/offline NielsenHomescan,52wksendingQ12013 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 26% 49% LeakagetoOther Channels AllOther Grocery Bookstores Club Electronic Mass 15 TECHͲSAVVYCONSUMERSSPENDBIGONDISC AVGCONSUMERSPENDONDISC(INDEX) 250 204 200 144 150 Copyright©2013TheNielsenCompany.Confidentialandproprietary. 100 100 93 87 Total Netflix VOD 101 50 0 Source:NielsenHomescan;52wksending3/30/13 Tablet EST UV 16 BUTCONSUMERSREMAINLARGELYUNAWAREOFUV TotalHomeEntertainmentConsumers:June2013 62% 52% 45% 45% 40% 35% 37% M35+ 31% 23% Copyright©2013TheNielsenCompany.Confidentialandproprietary. M<35 F<35 10% 14% HAVEUSEDIT F35+ 7% HEARDOFIT,BUTHAVE NEVERUSEDIT NEVERHEARDOFIT Source:June2013NielsenHETrackingInternalTackͲons.Sampleisage13Ͳ54totalHEconsumers(Physical+Digital).Basesize: 4549. 17 ANDINFREQUENTUSERSOFEARLYEST Describeyourexperiencewithbuyingdigitalmoviesonlineafewweeksbeforethe movieisavailabletopurchaseonDVDorBluͲray? 35% 35% Heardofit,not interestedintryingit 25% 27% Copyright©2013TheNielsenCompany.Confidentialandproprietary. Heardofit,interested intryingit 28% Neverheardofit Havedoneit,interested intryingagain 17% 7% 14% Females Males TotalHomeEntertainmentConsumers:June2013 Source:June2013NielsenHETrackingInternalTackͲons.Sampleisage13Ͳ54totalHEconsumers(Physical+Digital).Basesize: 4549. 18 WHYAREPEOPLEBUYINGMORE/LESS? ClaimedChangesinMovieBuying:Q22013 More DVD 18% 39% AbouttheSame Fewer 43% BluͲray 33% Copyright©2013TheNielsenCompany.Confidentialandproprietary. 0% 20% 34% 40% 33% 60% 80% 100% Topreasonsforbuyingmoremovies Topreasonsforbuyingfewermovies 35% Pricesarecheaper 34% ArewatchingmoreliveTV 31% ArestreamingmoreNetflix 33% BoughtBluͲrayplayerrecently Source:NielsenHETrackingInternalTackͲons(sample:age13Ͳ54activeHEconsumers) Q:Whichofthefollowingreasonsexplainwhyyouarebuyingfewer DVD/BDmoviesthanyoudidayearago?Pleasecheckallthatapply. Askedofthosewhosaidtheyarebuyingfewer. 19 WHYAREPEOPLENOTBUYINGATALL? Reasons for not buying a new DVD or Blu-ray movie in the past 6 months June 2013 June 2012 I’m streaming more content through Netflix Watch Instantly I’m renting more from Rental Kiosks, such as Redbox 11% 8% I’m watching more live TV instead I’m renting more content online instead (through Netflix, Blockbuster.com) 8% DVD/Blu-rays are too expensive/I can’t afford to buy them as much anymore Copyright©2013TheNielsenCompany.Confidentialandproprietary. I’m streaming more content from the Internet for free (from sites such as Hulu.com, YouTube, ABC.com, CBS.com, etc.) I’m watching more content on video-on-demand instead 13% 9% I needed to cut back my discretionary spending on entertainment because of my financial situation I’m watching more recorded TV instead (recorded onto a DVR/Tivo) 15% 12% 6% 3% 11% 9% 7% 5% 4% 3% 3% 14% 33% 6% ofconsumersage13Ͳ54 werenonͲbuyersinQ22013 Source:NielsenHETracking(base:nonͲbuyersofnewdiscsinpast6months) Q.Earlieryousaidyouhavenot purchasedanynewDVDorBluͲrayDiscsinthepast6months.Fromthelistofreasonsbelow,pleaseselecttheone reasonthathasmostimpactedthislackofnewDVDorBluͲrayDiscpurchases. 20 ESTGrows,asaddͲontoDiscbuying DiscbuyersandEST(Downloadtoown)– 1+Moviesinpast6months Amonggeneralpopulation:July2013 ESTonly BuyDVD/BD/EST=68% Copyright©2013TheNielsenCompany.Confidentialandproprietary. 13% both 1% 54% BuyDVD/BD only 32% none Source:NielsenHomeEntertainmentTracking(HET+NMT+screenouts).Basesize=17,505 Ayear ago,only 6%did both. 21 STATEOFTHEINDUSTRY State of the VOD & Digital Industry & Trends Presented At The TOD Performance 24 Executive Summary Television Video-on-Demand 2012 Therearecurrentlymorethan53millionVideoonDemand(VOD)Ͳenabled householdswithanaverageof2setͲtopboxes(STBs)perhousehold Morethan43millionSTBsaccessVODcontenteachmonth Therewere8.9billiontelevisionondemandtransactionsin2012 Consumersspendaround8.5hourspermonthwithVODcontent FODcontentwasthekeydriverofVODgrowthlastyear,increasingitsshareofall VODtransactionsto78%in2012 EachofthoseSTBsordermorethan17piecesofcontentpermonth 25 VOD Annual Totals 26 VOD Shares by Content Type 27 VOD - TOD Annual Totals 28 Top 100 TOD Movies - Revenue 29 Top 10 Movies on Demand 30 Digital Growth 31 Digital Distribution Growth - Internet Internet Video On Demand (iVOD) generated approximately $770M in consumer spending in the US in 2012 (flat as compared to 2011) Electronic Sell-Through (EST) generated approximately $815M in consumer spending in the US in 2012 (36% growth over 2011) Internet-based Subscription Video On Demand (sVOD) generated $2.3B in consumer spending in 2012 (46% growth over 2011) 32 Digital Distribution Growth – Q1 2013 Internet Video On Demand (iVOD) generated approximately $293M in consumer spending in the US in Q1 2013 (16% growth over Q1 2012) Electronic Sell-Through (EST) generated approximately $230M in consumer spending in the US in Q1 2013 (50% growth over Q1 2012) Internet-based Subscription Video On Demand (sVOD) generated $710M in consumer spending Q1 2013 (30% growth over Q1 2012) 33 Digital Distribution Growth - Internet TV EST – episodic purchases represented approximately 90% of all EST downloads in 2012 based on transactions HD Transactions across all content types (iVOD, EST) were up more than 64% year-over-year 34 Digital Transactions by Day of Week – 2012 January – June 2013 RANK DAYOFWEEK 1 2 3 4 5 6 7 Friday Saturday Sunday Tuesday Wednesday Monday Thursday Source: Rentrak (based on aggregated iVOD/EST data) 㻟㻡 Shameless Plug… Rentrak’sStateofVOD:Trend Report2012istheindustries onlyVODResearchReportbased onfouryearsofcomplete censusͲbasedcableandtelco industrydata,Rentrak'sStateof VODReportdrawsonTV viewinginsightsfrommore than102milliontelevisionsand everymajoroperatortoprovide StudiosandContentOwners withthemostinͲdepthlookat highͲlevelvideoondemand trends.20%Discountforall EMALAESAttendees! Exclusive 20% Discount https://www.rentrak.com/section/our_services/analytics/svod/ to all EMA LAES Attendees Chris Roberts SVP Sales, OnDemand Everywhere 503-331-2850 [email protected] STATE OF THE INDUSTRY MichaelCai SVPofResearch 40 KeyClients Theatrical/DVD/TV VideoGames Advertising/Media Planning 41 GameByte™Overview Physical Media iPad and Tablet Download Portable Games SmartPhone Apps Connected Consoles Gamer Virtual Worlds OnlineCasual Gaming DownloadPC Games (Steam,etc.) Free2Play MMO SubͲbased MMO Social Network Gaming StrongMomentumandDiversifiedRevenueModels DigitalGamers6Ͳ65: UK FR DE US 113.7 26.9 24.4 Breakdownof6ͲMonth DigitalRevenues (MillionsofUSD): (F2P |MOBILE |DIGITAL CONSOLE/OTHER*) Mobileinparticular representshuge opportunitiesforstudios 27.6 1,998 6333 SixͲMonthDigital GamingRevenues (MillionsofUSD): 905 539 522 1318 2,597 1091 1265 644 419 172 188 267 148 154 286 150 185 833 UK FR DE US *ͲPCfulldownload,PCDLC,socialnetworkPC,casualPCgames,subscriptionMMOPC,internetcafé43 F2PandTabletGamingStrongGrowthDrivers TabletGamers F2PPCGamers 21.0 21.3 23.1 15.1 3.8 5.0 3.8 5.5 UK FR 2012(Wave1) 5.0 6.2 DE US 2.2 4.4 2.3 3.4 UK FR 1.7 2.8 DE US 2013(Wave2) 44 GamingAccountsforOneQuarterofEnt.Time AmongWeeklyGamers StudiosandCE manufacturers MUSTintegrate gamingintheir strategy. 49.1 49.1 40.8 36.1 3% 3% 4% 3% 16% 18% 15% 19% Attendingentertainmentor sportingevents 12% 11% 11% 10% Internetactivitiesnotrelatedto socialnetworks 16% 17% 20% 15% SocialͲnetworkrelated activitiesontheInternet Listeningtomusic 28% 26% 25% 28% WatchingTVshowsormovies Playingvideogames 25% 25% 24% 25% US UK DE FR Base:1,749 1,753 1,696 1,603 G5.Inadditiontothe...hoursaweekthatyouspendplayingvideogames,howmanyhoursaweekdoyouspendengagedineachofthe followingactivities? 45 ConnectedConsolesRepresentStrongEnt.Channels AmongAllInternetUsers US UK DE FR 25% 21% 19% 16% 16% 13% 17% 15% 13% 10% 8% 8% Xbox360 8% PS3 14%14% 14% InternetSetͲ topBox 11% 9% 15% 12% 10% 9% SmartTV 9% 8% AndroidTablet iPad 46 MultimediaTrojanHorses USXboxLIVEFeatures USPSNFeatures N=389 N=229 Playedmultiplayergames online 46% StreamedmoviesorTVshows usingNetflixWatchInstantly WatchedliveTVshows Usedsocialnetworkingfeature suchasFacebookandTwitter 31% 23% 19% StreamedmoviesorTVshows usingAmazonInstantVideo 13% StreamedmoviesorTVshows usingHulu Plus 13% Watchedasportingevent usingESPNonXbox 12% RentedorboughtmoviesorTV showsfromtheXboxVideo 10% Store Playmultiplayergames online 38% StreamedmoviesorTV showsusingNetflixWatch Instantly Usesocialnetworking featuresuchasFacebook andTwitter StreamedmoviesorTV showsusingHulu Plus StreamedmoviesorTV showsusingAmazon InstantVideo Rentorboughtmoviesor TVshowsfromthe PlayStationStore Rentedorboughtmovies usingtheVudu service WatchedsportsviaMLB.tv, NFLSundayTicket,orNHL C2c1.WhichoftheseXboxLIVEfeaturesdoyouuseonaweeklybasis? GameCenterLIVE C2c2.WhichofthefollowingPlayStationNetworkfeaturesdoyouuseonaweeklybasis? 26% 23% 17% 11% 11% 10% 9% 47 RobustInterestinNextͲGen AmongAllGamers;N=2,000PerTerritory PurchaseInterest (VeryorSomewhatInterested) 50% 40% UK 30% FR DE 20% US 10% 0% PS4 XboxOne Ouya SteamBox GreenThrottle NvidiaShield G4a.Haveyouheardofeachofthefollowingupcominggamingdevices?Foreachdevice,pleaserateyourawareness. G4b.Howinterestedareyouinbuyingeachofthefollowingconsoles? 48 KidGamers’TopͲofͲMindDevices# AmongTotalRespondents;N=400PerTerritory Xbox360 Computer Tablet PS3 Wii Tablet Xbox360 Computer Wii PS3 23% 14% 13% 12% 11% Computer Wii PS3 DS/DSi 3DS 17% 16% 15% 13% 23% 19% 12% 10% 9% 11% Wii Computer DS/DSi 3DS Tablet 20% 16% 15% 13% 10% #Allpercentagesareoutof100%Ͳ respondentswereshownafulllistofconsoles,PC,mobile,andhandheldgamingdevices G1a.Whenyouthinkaboutplayingvideogames,whatgamingdevicefirstcomestomind? 49 KidsWantSmartToys AmongAllKids6Ͳ12 41% 36% 32% 19% %AwareofSkylanders 20% %OwnSkylanders Toys 11% UK Mean#ofSkylanders ToysOwned (Amongowners) 19% 19% FR 8.6 DE 8.3 7.2 G10s1.Doyouown anySkylanders toys(notthegame,buttheactualtoys)? G10s1a.HowmanySkylanders toysdoyouown? US 7.6 50 KeyTakeaways Thedemocratizationofgamingisopeningupnewopportunitiesforstudiosand CEcompanies F2PandTablet/Smartphonesrepresentstronggrowthpotential Consolesareakeypartoftheentertainmentecosystem,evenmoresofornextͲ gen Payspecialattentionto“play”behavioroftoday’skids CallusaboutGameByte! 51 Yuanzhe (Michael)Cai VPofResearch,GamesandTechnology [email protected] P: 310.255.0590x343 GVoice:214Ͳ9379866 F: 310.255.0591 www.interpretllc.com Twitter:@mycai |@InterpretLLC |@InterpretData 52 STATE OF THE INDUSTRY The future of home entertainment Los Angeles Entertainment Summit June 23, 2013 Tom Adams Research Director, US Media IHS Electronics and Media October 3, 2012 Round one of the digital bout went to DVD sales, but physical has now taken some hits Copyright © 2013 IHS Inc. 2 Packaged media has advantages in size and reach, but can it still 䇾float like a butterfly, and sting like a bee?䇿㻌 Disc-Player Penetration 82% Physical Share of Home Entertainment Spending 73% Copyright © 2013 IHS Inc. 3 Digital distribution has advantages for both consumers and studios over physical RETAIL New Release Purchase Price RENTAL Studio Revenue Per Rental Digital Physical SD Digital Physical $15 $16-20 SD HD $20 $20-36 HD $3.50 Copyright © 2013 IHS Inc. $2.80 $0.35$1.50 4 The precedents from other media are not encouraging for legacy business models $bn !"#$%&%"'()*+"',$-./(0"+".1"( (!" '!" &!" ,-./-0" 1.233/405" %!" 6072/." $!" 829:-2." #!" !" $!!%" $!!&" Copyright © 2013 IHS Inc. $!!'" $!!(" $!!)" $!!*" $!!+" $!#!" $!##" Source: Newspaper Association of America 5 Putting the brakes on home entertainment’s seven-year slide? &#$!!!" &!$!!!" %#$!!!" %!$!!!" #$!!!" !" &!!'"&!!#"&!!("&!!)"&!!*"&!!+"&!%!"&!%%"&!%&"&!%,"&!%'"&!%#"&!%("&!%)" $m Copyright © 2013 IHS Inc. -./01234"567314" -./01234"568734" -3/"9:":;<" <1=134"568734" <1=1734"567314" <1=1734">?@02A1BCD8" The worldwide picture (!" '!" &!" %!" $!" #!" !" $!!&" $bn $!!'" $!!(" ,-./0123"456203" Copyright © 2013 IHS Inc. $!!)" $!!*" ,-./0123"457623" $!!+" 89"89:;" $!#!" 89"<9:;" $!##" $!#$" ;0=0623"456203" $!#%" $!#&" ;0=0623"457623" $!#'" $!#(" ;0=0623"/>?/140@AB7" $!#)" The worldwide picture including pay TV subscriptions &#!" &!!" %#!" %!!" $#!" $!!" #!" !" %!!'" %!!#" %!!(" %!!)" %!!*" %!!+" %!$!" %!$$" %!$%" %!$&" %!$'" %!$#" %!$(" %!$)" $bn Copyright © 2013 IHS Inc. ,-./0"-12"3-4"35.3" 67839:-/";04-9/" 67839:-/";014-/" <="<=>?" <="@=>?" ?9A94-/";04-9/" ?9A94-/";014-/" ?9A94-/"35.3:;9BCD1" Rope-a-dope and “Ali boma ye”: even a boxing match is a marketing battle Copyright © 2013 IHS Inc. 9 Time for studios and retailers to take off the gloves Copyright © 2013 IHS Inc. 10 History shows retailers often drive tech adoption and win rounds against networks Years to 60% Household Penetration Copyright © 2013 IHS Inc. 11 No media platform penetrated US homes as fast as DVD, but Blu-ray is coming close 30 25 20 15 40% 60% 10 5 - Copyright © 2013 IHS Inc. 12 Physical rentals have long towered over electronic rentals Copyright © 2013 IHS Inc. 13 Even after years of decline, disc sales dwarf electronic sell-through Copyright © 2013 IHS Inc. 14 But now, both pay TV networks and the Internet are battling back Copyright © 2013 IHS Inc. 15 Here’s the main network threat: that crafty old heavyweight, pay TV Copyright © 2013 IHS Inc. 16 The next game changer: The connected living room 0 0 0 Devices (m) 0 0 0 0 0 0 2005 2006 direct TV connect Copyright © 2013 IHS Inc. 2007 2008 games consoles 2009 2010 2011 standalone STBs 2012 BD players 2013 2014 pay TV STBs 2015 2016 Tablets TV Everywhere iPad apps could strengthen the digital network hand Copyright © 2013 IHS Inc. 18 But until networks speeds make streaming ubiquitous: portability = purchase Today streaming 2 HD movies over a cell network could cost $50$100 Copyright © 2013 IHS Inc. 19 Physical’s “almost ready for primetime” portability counterpunch: UltraViolet Blu-ray Copyright © 2013 IHS Inc. 20 What it’s going to take for UltraViolet on Bluray to emerge a winner Common File Format Service Compatibility Retail Support Copyright © 2013 IHS Inc. 21 Putting the brakes on home entertainment’s slide, our current view &#$!!!" &!$!!!" %#$!!!" %!$!!!" #$!!!" !" &!!'"&!!#"&!!("&!!)"&!!*"&!!+"&!%!"&!%%"&!%&"&!%,"&!%'"&!%#"&!%("&!%)" $bn Copyright © 2013 IHS Inc. -./01234"567314" -./01234"568734" -3/"9:":;<" <1=134"568734" <1=1734"567314" <1=1734">?@02A1BCD8" But what if….. Copyright © 2013 IHS Inc. Learning from the master: Even a boxing match is a marketing battle Copyright © 2013 IHS Inc. 24 STATEOFTHEINDUSTRY