The Association of Commercial Television

THE FUTURE OF TELEVISION IS … MORE TELEVISION

CALL IT JEFFREY Katzenberg’s unicorn newborn. An operating company has come into being, ex nihilo, with the blandest of names—NewTV—and a valuation north of $1 billion. That’s something that has never happened before. Another thing that hasn’t happened before: the very first funding round for the company managed to reach the $1 billion mark. NewTV, then, is no scrappy startup. Rather, it is, from day one, an enormous privately owned corporation, run by a deeply experienced CEO, Meg Whitman, who formerly ran eBay and Hewlett-Packard.

And it’s probably going to fail.

Even at this unprecedented and mind-boggling scale, NewTV is a minnow, and TV as an industry has proved itself, in an era of disruption, to be surprisingly robust and resilient.

We live in an era where Netflix is eating the world, where kids and grown-ups alike can disappear down a YouTube rabbit hole for hours on end, where the amount of time we spend watching video on our phones only ever goes up rather than down. In that world, it’s easy to extrapolate to a time where old-fashioned television is dead, killed off by a slew of younger, nimbler disruptors. The reality, however, is that TV’s business model is secure, its revenues are gargantuan, and the barriers to enter its industry have never been higher.

Even Katzenberg knows this. A billion dollars is only half of the $2 billion he was originally asking for. And even $2 billion would be small table stakes at this game. After all, Netflix is spending some $12 billion a year in service of disrupting television. (The best articulation of Netflix’s ambitions can be found in this great piece by Matthew Ball.)

Netflix has vastly deeper pockets than NewTV. But even Netflix is going to find it incredibly difficult to replace TV altogether, for the simple reason that there’s simply too much money there. TV is, at heart, in the advertising business—advertisers spend some $70 billion a year on TV. While ad dollars have fled print media, the TV ad-revenue stream has stayed astonishingly steady. Yes, all the advertising growth globally is in digital, mostly through Google and Facebook. Digital advertising has, finally, overtaken TV as the largest ad market. But there are good reasons why TV’s central position in America’s households is much more deeply rooted than the would-be digital usurpers like to believe.

As Alexis Madrigal notes, Americans still watch a dizzying quantity of linear TV, and they don’t seem remotely unhappy with it. In the multi-trillion-dollar fight for America’s national attention, linear TV makes even Google and Facebook look like minnows. According to Nielsen, American adults spent 45 minutes a day on social networking, down slightly from six months earlier; they also spent 25 minutes a day watching video on their phones, tablets, and computers. By contrast, they spent 4 hours and 46 minutes a day watching TV, which was up 21 minutes per day from six months earlier.

That explains why the stakes—and the barriers to entry—are so high. All of those advertising dollars flow to TV companies, who are not going to give it up without a massive fight.

But even if ratings decline, TV remains the only realistic way for companies, especially if they make consumer packaged goods, to showcase their brands in front of the people who do America’s shopping. Soap operas are so called because they were originally sponsored by soap companies, and to this day, if you want to reinforce the brand values of a soap, the first place you’re going to turn is TV, because TV’s ability to build and maintain a brand is unrivaled. You can reach the same audience with the same message dozens or even hundreds of times; you can craft that message carefully and serve it up without accompanying distractions; you can take your time to tell a story over the course of 30 seconds, in a medium where 30 seconds is a short time rather than an eternity.

While TV is excellent at burnishing the brand of a dishwashing powder, its would-be disruptors are dreadful at it; Netflix, for one, doesn’t have any advertising at all. That keeps the ad dollars in the old economy of linear TV, where they are recycled into the kind of glossy, expensive, compelling shows that have had no trouble surviving and even thriving in the new attention economy. As Netflix has discovered, it takes many billions of dollars to create content that can begin to compete with television.

It’s eminently possible for an entire medium to lose the attention wars: We’ve already seen that happen with print. People spend much less time reading physical newspapers and magazines than they used to, with the result that those ad dollars ended up migrating to exciting new digital platforms. But TV is going to be much harder to kill than print was. A newspaper article in web-page form is faster, cheaper, and more convenient than in print form. TV doesn’t work that way: It’s a lean-back, experiential medium where people like to waste time. It’s not an information-delivery mechanism; it’s an entertainment format that has been perfected and optimized over many decades.

Felix Salmon (@felixsalmon) is an Ideas contributor for WIRED. He hosts the Slate Money podcast and the Cause & Effect blog. Previously he was a finance blogger at Reuters and at Condé Nast Portfolio.

 

Source: https://www.wired.com/story/netflix-new-tv-television-future-jeffrey-katzenberg/

WHY BIG TECH SPENDS BIG ON TV

If you read the trades regularly, there’s a good chance you’ve read that TV is dying. It’s less likely you read that Google, Netflix, and Amazon collectively spent more than $1B on TV advertising in 2017.1

Can both of those things be true? Why would tech giants spend so much on a dying medium?

At times like this, it’s best to fall back on the old maxim that says “don’t believe everything you read.

“During October 2017, Google spent $17M more on TV than Target and Walmart combined.”

For years the headlines have been telling us that TV is dying, and as a result, many people believe it. In fact, according to the Video Ad Spend study released by the IAB in April of this year, 66% of advertisers are shifting funds from TV to cover increases in digital video spend.

As we’ve written before, however, headlines don’t tell the whole story. And in this particular case, even a cursory look beneath the surface shows that TV is not even close to dying. On average, Americans spend 4.5+ hours watching TV a day.2 That’s over four times more than they spend watching YouTube, Twitch, Netflix, Hulu, Amazon, and all other digital video combined.3

Thought millennials were always on their phones? The generation proclaimed to be cutting the cord en masse spends 2.8x more time watching live or time shifted TV than they spend engaging with social media on their phones.4 And, out of their total TV usage, only 18% is spent streaming video.5 Again, don’t believe everything you read.

Now, about that claim that Google, Netflix, and Amazon spent $1B on TV advertising. Given the numbers above about how much time people actually spend with TV, it probably won’t surprise you to learn that this is actually true. In fact, during October 2017, Google spent $17M more on TV than Target and Walmart combined.6

But is the fact that people watch a lot of TV enough to demand such a massive expenditure from just three companies? Not anymore. The reach and scale of TV has been unmatched for decades, but in this era of fragmentation, where audiences have become spread out across hundreds of channels, it’s become harder for brands to reach large portions of their audience with traditional advertising methods.

So why do the tech giants spend so much on TV? Because they know it works, and they can prove it. Digital-native companies are hyper-focused on being able to prove their return on ad spend (ROAS). This knowledge helps them determine which channels to invest in, where to allocate resources, and how to optimize future campaigns. Until recently, digital was the only channel that offered this level of measurement.

Today, advanced TV platforms can help brands reach their target audience much more efficiently, with media plans often featuring thousands of spots across upwards of 50 networks. What’s more, some platforms have measurement capabilities that allow brands to know exactly who saw their ad and what action they took as a result. The learnings derived from this data, as well as those from subsequent campaigns, can be applied to make TV advertising more efficient than ever.

It’s not just the tech companies that are taking notice, either. Unlike most companies who are moving dollars from TV to digital as noted above, last year, Procter & Gamble—citing wasted impressions and questions of brand safety—made news when they announced that they’d be taking $200M out of digital and putting it into TV. What happened? They increased their reach by 10%.7

Traditional brands and digital-natives alike can take a cue from these giants of industry. They know that with the right advanced TV platform they can reach more of their audience, more efficiently than ever before. And they know that by proving the impact of their campaigns on business outcomes and optimizing accordingly, they can turn TV into a growth engine for their companies.

Not bad for a dying medium. Remember, don’t believe everything you read.


1 Based on Kantar/Ad Intel data.
2 Nielsen Audience Report Q1 2018
3 Nielsen Audience Report Q1 2018
4 Nielsen Audience Report Q1 2018
5 Nielsen Audience Report Q1 2018
6 Based on Kantar/Ad Intel data.
7 AdWeek, When Procter & Gamble Cut $200 Million in Digital Ad Spend, It Increased Its Reach 10%

 

Source: https://www.simulmedia.com/blog/2018/08/09/why-tech-giants-spend-tv/

AVMSD REVIEW: A STEP IN THE RIGHT DIRECTION, WITH MORE WORK AHEAD

egta – the association of television and radio sales houses – commends EU policymakers for reaching an agreement on a new Audiovisual Media Services Directive. Two years of challenging negotiations have delivered some welcome flexibility in commercial communications which should contribute to a more competitive environment for European broadcasters.

We are encouraged by the liberalisation of the rules on advertising minutes and the much-needed protection of media service providers’ signal integrity. In tandem with the new responsibilities that video sharing platforms will have to abide by, sales houses see this as a first step towards a level playing field for European content producers.

egta and its member sales houses saw the revision as an opportunity to modernise the European audiovisual regulatory framework. Despite a constructive dialogue with the European institutions, it should be acknowledged though that the net result is one of modest progress rather than a future-proof legislation that reflects market realities.

Malin Häger, egta President, comments: “We sincerely welcome the positive progress made on the rules that govern audiovisual commercial communications, particularly with regards to advertising time limitations. However, we must also recognise that on some aspects, the text is less ambitious than we hoped for at the beginning of this process. Broadcasters remain far more heavily regulated than online actors who are competing for the same advertising revenue. In order to provide long-term value, it is therefore crucial that the measures foreseen in the reform are applied and enforced consistently”.

The audiovisual advertising sector contributes positively to the European Digital Single Market, and egta is confident that we can work together with regulators to ensure that this revision delivers tangible benefits to the industry.

About egta:

egta is the association representing television and radio sales houses, either independent from the channel or in-house, that market the advertising space of both private and public television and radio stations throughout Europe and beyond. egta counts more than 140 members across 40 countries. www.egta.com

A PICTURE WORTH A MILLION A DAY: FACEBOOK’S TV AD SPENDING

Facebook has been spending heavily to back a TV ad campaign designed to win back its users’ trust following disclosures about users’ data being used to retarget them, its role in disseminating fake news, and other negative issues.

The campaign (see below) promises to get back to “what made Facebook good in the first place.”

So far, it’s making local and national TV outlets a better place to be. Facebook has been averaging $1 million per day since breaking mid-March, when it kicked off a six-week local flight, followed by a national rollout on April 25, according to an analysis by competitive ad tracker Kantar Media.

The outlays may seem a lot for the TV ad market, but it’s a pittance of what Facebook takes in from advertisers. According to Kantar Media, Facebook brought in $11.8 billion during the first quarter of 2018, or about 130 million per day.

Source: https://www.mediapost.com/publications/article/321021/a-picture-worth-a-million-a-day-facebooks-tv-ad.html

EUROPEAN TV GETS READY TO FIGHT OFF NETFLIX AND HBO

For the past two decades, Spain’s state-run RTVE and private rivals Mediaset España and Atresmediahave been fighting for viewers’ hearts with slates of game shows, sports, comedies, and glossy morning news. Now, in a plot twist worthy of the steamiest soap opera, they’ve decided to hook up: This summer the adversaries are launching LovesTV, a shared 18-channel streaming platform with programming from all three networks. The goal is to “aggregate broadcasters and serve as a common entry point into the digital world,” says Arturo Larraínzar, strategy director at Atresmedia.

A similar script is playing out across Europe, as long-standing foes in Britain, France, Germany, and Italy set aside rivalries to co-produce programs or offer shows online. The reason: interlopers from across the Atlantic. Netflix Inc. this year is doubling its European programming budget, to $1 billion; Amazon.com Inc.will soon have at least a dozen original series from Europe, up from one in 2014. And Home Box Office Inc. is boosting its non-U.S. offerings this year by 40 percent, to 250 hours of shows. These newcomers could spur a mass defection of viewers to the increasingly convenient web, and Europe’s traditional broadcasters are scrambling to find a response. “Consumers no longer care where they watch our content, so why should we still draw strict lines between linear and nonlinear, offline and online?” asks Bert Habets, chief executive officer of RTL Group, a traditional broadcaster that’s launched streaming sites in France, Germany, and four other countries.

“It’s confusing to have a different app for every network”

The model the Europeans say they’re emulating is Hulu LLC, the U.S. streaming service owned by perennial antagonists ComcastTime Warner21st Century Fox, and Walt Disney. Since its launch in 2007, Hulu has grown to 20 million subscribers, who pay $8 to $40 a month for access to hundreds of shows. Just as the U.S. networks have gone online to hold on to America’s 120 million TV-watching households—and the ad dollars they represent—European companies say they can build a simple video platform to keep viewers from clicking away. “People want this overriding interface,” says Alan Wolk, co-founder of media analysis website TVRev. “It’s confusing to have a different app for every network.”

Building a Hulu in Europe, with its dozens of languages and patchwork of regulations, will be trickier than in the U.S. Broadcast rights for most shows are sold country by country, so it’s difficult to put together a seamless service for the entire region. Different rules about storing recorded shows in the cloud—France, for instance, has more relaxed guidelines than the U.K.—could be a roadblock. And regulators in Germany and the U.K., citing antitrust concerns, have blocked broadcasters’ efforts to cooperate. “I don’t think it’s going to be simple to do a pan-European play,” says John Turner, a partner at media adviser OC&C Strategy Consultants.

That hasn’t stopped the broadcasters from trying. In recent months, ProSiebenSat.1 Media SE in Germany has teamed up with Discovery Inc.—which owns the popular Eurosport franchise—to create a service called 7TV, and the two are seeking partners in other countries. Britain’s media regulator has encouraged a similar alliance between the BBCITV, and Channel 4. Spain’s LovesTV will offer livestreams of all three of its networks and allow viewers to see the past week’s shows to catch up on episodes they may have missed.

The American upstarts are also spurring erstwhile rivals to sacrifice exclusivity and share costs. The BBC and Channel 4 have teamed up with Hulu and AMC Network Entertainment. And public broadcasters in France, Germany, and Italy have agreed to cooperate on what they call “bigger” shows; they say they’d welcome companies in other countries as well. “If we pool our resources, we can have a strong voice on the international scene,” says Delphine Ernotte, head of France Télévisions SA.

Even with shared resources, they’re likely to lose some premier programming to the cash-rich Americans. Netflix spent about $7 million per episode of The Crown, roughly five times what ITV—the U.K.’s biggest commercial broadcaster—paid for Downton Abbey (though the company doesn’t release figures for its shows). With so much money available, “screenwriters and directors increasingly want to work with the multinationals,” says Karin von Abrams, an analyst at researcher EMarketer Inc. “The funding is better, and they can actually see their projects become reality.”

The broadcasters will find themselves in competition with homegrown rivals such as the TVPlayer platform in the U.K.—part-owned by Hearst Communications Inc. and Walt Disney Co.—and French startup Molotov.TV. The two-year-old company has signed up 5 million users with its Netflix-like interface offering three dozen channels for free and premium bundles starting at €4 ($4.67) a month. Molotov founder Jean-David Blanc says he’s in talks with British, German, Italian, and Spanish companies to expand into those countries. “The content providers, the producers, they want to maximize their chances to find their audience,” he says. “So the world is changing, obviously.”

BOTTOM LINE – As American upstarts target Europe with big-budget series, broadcasters across the region are setting aside old rivalries to co-produce shows and create streaming platforms.

 

Source: https://www.bloomberg.com/news/articles/2018-06-06/european-tv-gets-ready-to-fight-off-netflix-and-hbo

AGREEMENT REACHED ON NEW MEDIA SERVICES DIRECTIVE (AVMSD)

EP negotiators and the Bulgarian Presidency of the Council of the EU agreed on substantial rules for audiovisual media services, including digital platforms, on Thursday evening. 

The revised legislation will apply to broadcasters, but also to video-on-demand and video-sharing platforms, such as Netflix, YouTube or Facebook, as well as to the live streaming on video-sharing platforms. EP negotiators managed to secure enhanced protection for children, stricter rules on advertising, and at least 30% of content in programmes of TV channels and VOD platforms must be European.

Protecting minors from violence, hatred, terrorism and harmful advertising

MEPs introduced “effective and efficient” new rules into the law that prohibit any content inciting violence, hatred and terrorism, while gratuitous violence and pornography will be subject to the strictest rules.

While co-regulation and self-regulation are prioritised, video-sharing platforms will now be responsible for reacting quickly when content is reported or flagged by users as harmful. At the request of the Parliament, platforms need to create a transparent, easy-to-use and effective mechanism to allow users to report or flag content. Technical solutions to explain the nature of the content in the hosted videos and follow-up when a video has been flagged are also needed.

Health and safety concerns regarding minors are also addressed. The new law includes strict rules on advertising or product placement in children’s TV programmes or content available on video-on-demand platforms. Measures should be put in place to effectively reduce children’s exposure to publicity on unhealthy food or beverages. Product placement and teleshopping will be prohibited in children’s programmes, while member states can decide individually whether they also want to exclude sponsorship from children’s programmes.

EP negotiators also secured a personal data protection mechanism for children, imposing measures to ensure that data collected by audiovisual media providers are not processed for commercial use, including profiling and behaviourally targeted advertising.

Advertising limits redefined

The new rules impose a maximum 20% quota of advertising of the daily broadcasting period between 6.00 and 18.00, giving the broadcaster the flexibility of adjusting their advertising periods. A prime-time window between 18:00 and 0:00 was also set out, during which advertising will only be allowed to take up a maximum of 20% of the broadcasting time.

30% of audiovisual content on the video-on-demand platforms’ catalogues must be European

In order to support the cultural diversity of the European audiovisual sector, MEPs ensured that 30% of content should be European, also in the video-on-demand platforms’ catalogues.

Video-on-demand platforms are also asked to contribute to the development of European audiovisual productions, either through a direct investment in content or a contribution to national funds. The level of contribution in each country should be proportional to their on-demand revenues in that country (member states where they are established or member states where they target the audience wholly or mostly).

The Parliament also secured measures to ensure the integrity of the signal. It applies to smart TVs and means that the media service provider cannot add a window with content to the screen during a programme, without first having the agreement of the broadcaster. Rules are also foreseen to ensure that media services providers continuously and progressively make audiovisual services more accessible for people with disabilities.

Quotes

EP negotiator Petra Kammerevert (S&D, DE) said: “We made major breakthroughs in the negotiations and now have a political agreement on all pending key issues. The outcome is well balanced, especially with regard to the scope of the directive, including video-sharing platforms and audiovisual content on social media, a more level playing field for all communication stakeholders, and protection of European works.

EP negotiator Sabine Verheyen (EPP, DE) said “By applying similar rules to similar services, irrespective of whether the media content is consumed online or offline, we have made EU regulation fit for the digital era. Protecting children and minors has always been a top priority for us. We have now negotiated a level of protection for internet media services similar to that in place for traditional broadcast media. The transparency rules on advertising, and in particular on product placement and sponsorship, now also apply to user-generated content uploaded to video-sharing platforms. This will protect consumers, especially children and minors.”

Next steps

Following the informal agreement, the text will have to be voted on by the Culture and Education Committee, which is leading the negotiations. A vote in plenary to endorse the new rules is likely to take place in September (tbc).

 

Source:  European Parliament

ASSOCIATION OF COMMERCIAL TELEVISION STARTED A DIALOGUE WITH ADVERTISERS AND GOVERNMENT AUTHORITIES IN THE FIRST YEAR OF OPERATION

In the first year of its existence, the Association of Commercial Television (AKTV) set two main goals: to spread awareness among advertisers about television being a key advertising mediatype and to do so through marketing activities as well as to engage in law-making processes with a direct impact on commercial television business. During its first year, AKTV also joined the Chamber of Commerce, where it has been an active member of the Creative Industry Section, and it also became an associate member of the EGTA Association, which brings together television and radio media representatives.

The Association of Commercial Television (AKTV) was formed in spring 2017, in response to the growing need to defend and promote the common interests of commercial broadcasters in the Czech Republic. The founding members of the Association are the Nova, Prima and Óčko television networks and the first presidential mandate was headed by Jan Vlček from Nova.

As part of its marketing activities, in response to frequent unsubstantiated statements made by global players in online advertising, AKTV focused on direct communication with the most important advertisers in the Czech Republic. In the first year of its existence, AKTV organized two educational seminars for senior management of the largest advertisers as well as for CEOs and marketing directors. The common denominator of both conferences were exceptional foreign speakers and premium and highly relevant content.

Les Binet, a renowned expert and an author of marketing books from the adam & eve DDB London agency, gave a lecture at the first conference, and Karen Nelson-Field, an Australian university professor and researcher, presented the results of her latest research, which compares the performance of television and online advertising, at the second conference. AKTV will continue with its activities this year so as to respond to the demand of the advertisers for relevant and undistorted information on the current status of the individual mediatypes and the trends in their use.

“We have heard more and more often that television is dead and online advertising is the only option in the future. However, as the data show, the time people spend watching television does not decrease. In fact, people spend more time in front of the TV and we feel the need to emphasize this fact to the advertisers. Last year, for example, viewers aged 15 years or more watched television for 3 hours and 45 minutes a day, which is almost 15 minutes more than five years ago and 30 minutes more than ten years ago. In addition, television remains the most popular type of media among viewers of all age groups,” says Jan Vlček, President of AKTV.

Marketing activities of AKTV also include active involvement in the global initiative called The Global TV Group, an unofficial grouping of associations of television companies and media representatives in Europe, United States, Canada, Australia and Central America, which aims to promote TV broadcasting.

In addition to the raising of public awareness about marketing, AKTV has also focused on legislative processes, both at national and European level. For example, AKTV and ACT, its partner association, organized a seminar on European audiovisual legislation for Czech and Slovak Members of the European Parliament in Brussels.

TELEVISION IS STILL NUMBER ONE. EVEN TODAY’S INTERNET SAVVY CHILDREN PREFER TV

Even though children mostly moved from the television screen to a computer monitor or smartphone, television is still number one for them. Research shows that even today’s children still prefer TV over other types of media.

Lifestyle Survey of Children conducted by the Association of Television Organisations (ATO) shows that television is still a number one daily (or almost daily) media activity for almost three-quarters of Czech children aged 4-14 years. The frequency of children’s TV consumption even surpasses their watching Internet content or playing games.

71% of children watch live television broadcasts on a regular basis. Another 13% of children turn on the TV at least once a week. Number two media activity for children is watching videos on YouTube and similar sites. 30% of children watch them daily or almost daily and 38% of children watch them at least once a week.

It is similar to listening to music, songs and radio. However, compared to watching television, more children do these activities on a daily basis (37%). One-quarter of children claim that they listen to music once a week. This activity is followed by reading books, magazines and comics, either daily (26% of children) or once a week (35% of children).

Playing Games and Time Spent in Front of TV

The fifth most common media activity for children is playing electronic games. One-third of children spend their time playing games daily and a little more than one-fifth of children play games at least once a week.

As to the time, children usually spend on the media per day, the youngest children, aged four to six years, spend most of their time watching TV. Older children, on the other hand, prefer watching online videos or playing electronic games.

According to the ATO Lifestyle Survey of Children, compared to younger children, older children also usually sleep less during the day, spend less time with their parents and more time at school. They have more free time, especially at weekends, and therefore spend more time using electronic devices (computers, notebooks, smartphones or tablets). The research was conducted last year and 531 children participated in it.

 

Source: iDNES.cz

EUROPEAN SALES HOUSES URGE LEGISLATORS TO STRIKE THE RIGHT BALANCE IN THE FINAL AVMS DIRECTIVE NEGOTIATIONS

The European Commission’s proposal for a revised Audiovisual Media Services Directive in May 2016 promised to create a fairer environment for all players, to ensure adequate protection for consumers, especially children, to sustain the production of original European content and to introduce more flexibility on the advertising rules for broadcasters.

The original proposal was a step in the right direction and was welcomed as such by European sales houses and broadcasters, in particular the flexibility on advertising time as well as the simplification and liberalisation of the rules on sponsorship and product placement.

As the trilogue negotiations come to a conclusion, egta members would like to urge decision-makers to keep those initial objectives in mind when agreeing on the final balance of the text.

Broadcasters are increasingly concerned at the potential erosion of what was a modest evolution of the rules in the first place. Since the publication of the initial proposal, online advertising sales have been growing steadily and in 2016 became the main media for advertisements on a pan-European level, with €36.8 billion in revenue, surpassing TV advertising (€31.4 billion)1. As things stand, apart from the moderate liberalisation of the advertising time, there will be little to no discernible flexibility in the qualitative advertising rules, the articles on sponsorship and product placement and the other linear specific advertising provisions.

We strongly urge the Parliament, Member States and the Commission to take the opportunity of the final trilogue meetings to ensure that this revision process delivers on its original objectives of a competitive, creative and safe European audiovisual landscape.

This could be achieved by introducing measures safeguarding broadcasters’ signal integrity, simplifying the rules on product placement and sponsorship as per the Commission proposal, liberalising isolated adverting spots in article 19.2 and ensuring that no further measures adversely impact broadcasters’ current revenue streams.

To secure a robust level of consumer protection, a fair environment for business and competition with other actors, all content providers, including video sharing platforms, should also adhere to the basic advertising principles in articles 9, 10 and 11. In a fast-changing market place where all content providers, both online and offline, linear and non-linear, are competing for audience and advertising revenues, qualitative prescriptions should be simplified and harmonised in order to secure a more equal environment, so that the financing of quality content shall be sustainable in the longer term.

As noted throughout the studies that informed the Commission’s impact assessment, Europeans have never been presented with more choice of audiovisual content. It is in this context that broadcasters need to secure future proof revenue streams that will allow them to continue offering the content that viewers expect and are interested in.

Therefore, the European audiovisual sector needs a regulatory environment that reflects the current market place, provides proportionate and balanced rules and will remain relevant as technological developments occur. We strongly believe that simplification and legal certainty in the AVMSD will match those objectives.

   

egta is the association representing television and radio sales houses that market the advertising space of both private and public television and radio stations throughout Europe and beyond. egta counts 140 members across 40 countries. www.egta.com

 1 The EU online advertising market – Update 2017, European Audiovisual Observatory, 2017.

WE WATCH MORE TV AND IN BETTER QUALITY

95% of Czech households currently own a television. Moreover, the time we spend in front of the TV is constantly growing. Czech people aged 15 years or more watch TV for 3 hours and 45 minutes a day on average, which is 31 minutes more than ten years ago. They also watch TV broadcasts in better quality: almost two thirds of households watch TV in HD quality. Households are more often turning into smart households as people own increasingly more notebooks, smartphones and tablets and commonly use them to consume TV video content.

The data regarding the use of technology in Czech households come from the Continual Survey 2017, which was conducted by Nielsen Admosphere for the Association of Television Organisations. The survey is an integral part of the Project of Crossplatform Electronic Measurement and Content Consumption in the Czech Republic.  The survey was conducted in 2017 and 27,506 respondents aged 15 years or more from 19,038 households participated in it.

Television still remains the most powerful medium: not only do Czechs spend more time watching it (3 hours and 45 minutes a day on average), but they also watch it in better quality. 62% of television households watch TV stations in HD quality (which is 8% more than in 2016) and almost 90% of television households currently have at least one flat TV at home.

 (The changes in average daily viewership of television broadcasts in 10 years among viewers 15+)

There has been a rising speed of adoption of technology in households: for example, compared to 2016, the number of households with at least one smartphone has risen by 10% (59% in total), there are 4% more households with a notebook (56% in total) and there is currently 25% of households with a tablet, which is 3% more than in 2016. The year-on-year growth of the number of households owning a desktop computer is stagnating (37%). However, television with its 95% still remains the most common media device in Czech households.

(Media devices in Czech households)

Source: ATO