1

TV futures: The prospects

for live TV viewed through

the lens of Behavioural

Economics

17th September 2014

Pete Maginn, Research Director, Illuminas

Maddalena Piras, Head of Audiences, Children's and

Learning, BBC

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2013 saw the rise in tablet ownership

71% of

0-12s

have

access

Not to

mention

huge

growth in

iPlayer

requests….

+25%

+36%

3

..and evidence of fewer children watching linear TV

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89% of Kids 0-12 say that

the television is their

favourite device for

watching TV

programmes

However children prefer to watch content on a television

more than ever

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There were many questions about children and how they

consume TV

“What device are

they watching

on?”

“Where are they

watching?”

“How are they

watching?”

“How are kids

watching TV?”

“Do kids watch

live TV less than

on demand?”

“Who are they

watching with?”

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The general Behavioural Economics perspective

Decision-making

involves Biases

& Shortcuts

Satisficing

NOT

Maximising

Unconscious

NOT

Conscious

Thought is

Embodied/

Physical

Presumptive

NOT

Deliberative

Thought is

Emotional

BE inputs to

research

Hypotheses

Methodology and

Experiments

Interpretations

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Some BE hypotheses for children’s viewing behaviour

Number and importance of assisted

recognition filters

Sociability &

Synchrony

Emotional

Coherence

Bias

Recognition

Primed

Decision-

Making

Assisted

Recognition

Filters

Narrative

Bias

8

How BE framed the methodology

Different Diary

Approaches

Varied, Natural

Observations

Partial Logo

Experiment

QUAL

40 x Navigator Pre-Tasked

In-home Safaris

Children &

Parents

1-12 year olds

QUANT

879 x 2 Day Viewing Diaries

Images & Videos Neutral

Language

Real Time

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How much live TV do children watch?

63% all

viewing

occasions

74% all viewing

occasions

60%

70%

7-12 yr olds

1-6 yr olds

64% viewing occasions

involving a

search

include

searching live

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Why do children consume a lot of live TV?

Social currency

Human interaction in the

now

Narrative bias

Habit and

routine

(Sub) optimal search

behaviour

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What about children’s non-live viewing behaviour?

On Demand

9% all

viewing

occasions

vs.

5% all

viewing

occasions

Recorded

14% all viewing

occasions

vs.

19% all viewing

occasions

Clip Websites

6% all

viewing

occasions

vs.

2% all

viewing

occasions

DVD

7% all

viewing

occasions

vs.

1% all

viewing

occasions

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How can children’s higher uptake of non-live content be

explained?

Optimal content

guarantee Repetition and

familiarity

Relatively limited live

options

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The 1-4 year olds viewing funnel at home

Do they know what they want?

YES

Parent searches for

requested content live

using EPG / channel

numbers

YES

WATCH

NO

Can content be found?

Parent offers alternative

from typical channels

WATCH

NO

Parent checks live using EPG / channel numbers

and offers limited range of choices based on

channels child typically watches

YES

WATCH

NO

Can content be found?

Parent searches PVR

Parent offers

alternative based on

programmes

available

YES

WATCH

Can content be found?

NO

Parent goes to on demand

content or clips site

Parent offers

alternative based on

programmes

available

14

The 5–6 & 7-12 year olds’ viewing funnel at home

Do I know what I want (ATV)?

YES

YES

Navigate to live

content via channel

numbers

NO

Search live content via

channel numbers

WATCH

Continue watching

channel until

content dips below

level of

acceptability

7-12 year olds

WATCH

DO I find a programme I want to watch?

7-12 year olds

NO

Check PVR (with parent’s assistance)

Wallpaper

channel

YES

WATCH

NO

Change from TV

to mobile device

DO I find a programme I want to watch?

Go to on demand (with parents

permission/ assistance)

Wallpaper

channel

7-12 year olds

YES

WATCH

NO

DO I find a programme I want to watch?

Look at most popular

choices

7-12 year olds

Start alternate activity –

games, toys, gaming etc

NO

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The children’s genre is essential in this process

46% of 1-12

year olds

search within

the children’s

genre

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..And channel brands are important signposts in this

decision making process

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OD only accounts for a small proportion of

children’s viewing

It is not the preferred method for watching

programmes

Many would have preferred to have watched live

including 66% of 7-12 yr old OD viewers

So is On Demand taking over?

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What might have a significant impact on our future audience?

Connected TV

penetration

EPG radical

changes

Rise of other

players in the

marketplace

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Questions please…