Skip to content
News Center >

Traditional TV is extremely popular, although the supply of media is growing rapidly

5 minute read | March 2016

Budapest, March 16, 2016 – Traditional TV is extremely popular in Hungary, despite the fact that the offer of media is developing rapidly in Hungary as well, and consumers can choose video from their options for their own entertainment more than ever before. 86% of Hungarian viewers subscribe to receive cable or satellite broadcasts; It averages 65 percent in Europe and 72 percent worldwide. Among other things, this was revealed in a global survey of Nielsen, a company that provides consumer information and knowledge.

Three percent of responding Hungarians pay for online “video on demand” (VOD) providers, from which video and audio on demand can be downloaded. The average in Europe is 11 percent, compared to 26 percent globally in sixty-one countries surveyed.

In this respect, North America and Asia-Oceania lead the rankings with 35 percent and 32 percent, respectively.

“The growth of video-on-demand download providers in today’s complex media offering offers opportunities for all media players,” said Megan Clarken, Nielsen’s president of product development. – “It is an advantage for both the public and advertisers and content providers to know in depth not only the changes in consumer viewing dynamics, but also why they are changing. Two things have never been as valid as they are today: Content will always be king, and consumers are increasingly demanding to control, tailor the viewing experience to their needs. Content providers who offer excellence on both fronts will be in an advantageous position ”.

Nielsen’s global video on demand research surveyed a total of more than 30,000 Internet users in sixty-one countries to assess ways to watch and advertise vod. A remarkable proportion, 65 percent, of those surveyed are those who watch short or long video content downloaded according to some of their needs.

FULL STEAM FORWARD?

While a majority of all respondents, 68 percent, say they do not plan to give up traditional broadcasting with the sole purpose of using an online service, one-third (32%) would disconnect from their cable or satellite connection. In Hungary, 84 percent of respondents intend to stay with their traditional service provider. The European average is 83 percent.

Noteworthy here is another study in the U.S. that very few of those who said they would give up traditional programming have made their plan a reality.

“The growing popularity of online-only video services continues to put pressure on network, cable and satellite content providers, but it is unlikely that any of them will disappear,” Clarken said. – Although some consumers are withdrawing from using traditional TV services, many are not cutting the threads completely. For most viewers, online and traditional services are not mutually exclusive but complementary. Moreover, online, network, and multi-channel providers of video programs face more of the same challenges; such as the rapid change in consumer expectations, oversupply and rising content costs. In the short term, it is not the cancellation of services that is most threatening. This is because consumers value the benefits of premium services or networks. They prefer the slimmer packages of channels that suit their needs and budget ”.

Currently, the only solid feature of the media environment is continuous change. It is possible that when the on-demand video downloads broke into the market, only another factor emerged that increased media fragmentation. But the wild storm that telecommunications have now been in for more than a decade will definitely continue with it. And the power of change will not diminish any time soon. Winning viewers has never been harder than it is now. Although change and uncertainty are causing difficulties for content providers, it is important for them to remain agile, flexible, and to face the challenges ahead.

###

Methodology

Nielsen’s global survey was conducted in 61 countries among respondents who have access to the Internet. While the online method allows for a global reach in addition to the huge dimension of topics, it only provides insight into the perspectives and habits of Internet users, not the entire population. This aspect is especially important when research is concerned with activities such as downloading videos on demand. In emerging markets, where internet penetration is still increasing, the camp of young users is larger and its members more affluent than the average population of the country on average. In addition, the responses to the survey are behavioral statements rather than accurately measured data. Cultural differences also play a role in the performance of individual countries. These differences are not taken into account in the revealed results. It is therefore advisable to be careful when comparing the results of individual countries and regions, especially with regard to regions.

ABOUT NIELSEN

Nielsen Holdings Inc. (listed on the New York Stock Exchange: NLSN) is a global performance optimization company that comprehensively understands what consumers are looking at and buying. Nielsen’s watch segment provides metering services to media and advertising customers for all devices on which they consume content (video, audio, text). The buy segment offers packaged food manufacturers and traders a unique global overview of the industry based on retail performance measurement. By integrating viewing and purchasing information, as well as other data sources, Nielsen provides its customers with world-class measurement data and analysis to help them improve their performance. Nielsen is listed in the U.S. list of 500 financial services firm Standard & Poor’s, from which the U.S. stock index is calculated. Its operations cover more than 90 percent of the world’s population in more than a hundred countries. For more information, please visit our website: www.nielsen.com