Breakthrough for online streaming but traditional media continues to decline says new report

Streamed TV is becoming more mainstream in the UK with the use of online streaming services such as BBC iplayer, ITV iplayer or 4oD on the rise, particularly among younger people, according to the latest KPMG Media & Entertainment Barometer.

Among streaming services offered in the UK, BBC iPlayer currently has the highest level of awareness with nine in ten people having heard of the online streaming service, followed by ITV player and LoveFilm.

The Barometer which surveys UK consumers every six months on media consumption trends also reveals that people are increasingly willing to pay for services. 64 percent of respondents said they would pay for films online compared to 60 percent in March 2011.

Appetite to pay for TV has also been creeping up, from 27 percent in September 2010, to 28 percent in March 2011 to 30 percent by October 2011. Among those who are or would consider becoming a paid subscriber, film, music and TV is the preferred type of content that consumers are or would be willing to pay for.

Meanwhile the usage of traditional media continues to fall. The majority of respondents said they prefer the use of “traditional media” such as reading physical books or watching TV; however the consumption of traditional media continues to be on the decline ith the exception of watching TV.

In contrast, online newspapers and magazines as well as digital books are becoming increasingly popular, a trend that appears to be driven by the expanding tablet and eReader market.

More than half of respondents said they had read online newspapers in the last month compared to 40% six months ago and 14% said they had read digital books compared to 8% six months ago. Increases in social media usage are also apparent along with online music streaming and downloads. However, money spent on both traditional and new media has remained stable.

Consumers will spend most on eBooks and music download within new media activities; most likely because these are the most expensive to access compared to streaming music/TV, which at the moment tend to be free via online services.

David Elms, Head of Media at KPMG said on the results of the survey: “We continue to see mobile media as an attractive means to monetise content, given the continuing rise in the uptake of smartphones, tablets and eReaders. Whilst consumers continue to embrace new media at a rapid pace, a “mixed ecology” persists, with a majority still enjoying traditional media such as reading books or watching TV.”