Thursday, February 21, 2008, 10:06 AM ET|Posted by Will Richmond
Yesterday's interview with market researcher Bruce Leichtman highlighted a key point in his latest study: that broadband video is most heavily adopted by 18-34 year old males. That point has been supported by research from other firms and is one of the key drivers behind a lot of the new broadband-only video programming that's sprouted up in the past couple of years.
A clear implication of this finding is that current video providers that target 18-34 males better be aggressively pursuing broadband video offerings if they want to stay competitive in this new media landscape.
But less clear is whether video providers that don't primarily target 18-34 males, or maybe have them as secondary audiences, should also be investing in this new medium in order to stay in synch with broadband users. Though other age groups and demos are also adopting broadband video, they are clearly less fervent, at least for now. In a world with finite resources, should these other video producers not worry so much about broadband video and instead stay mainly focused on their traditional approaches? Or should they invest in the broadband medium as well, even if their true target audiences may be smaller for now? I think they should do the latter, for the following 3 reasons:
1. Eventually broadband video usage will deeply penetrate all age groups. This is a macro trend that all programmers need to be in synch with. Previous technology adoption patterns show that what starts with young, and often male, early adopters, eventually spreads out to other groups as well. There's no putting the broadband video genie back in the bottle. Three-to-five years from now, virtually all Internet users will view video as just another routine application, alongside email, search, commerce, etc. Today's video providers need to position themselves properly.
2. Cultivating younger audiences is critically important. Marketing types always emphasize how important it is to cultivate younger audiences. Brand choices and loyalties are developed early, and it is more difficult down the road to influence these. Look around and see brands that once targeted somewhat older, and wealthier, segments but which now also try to target the young - Heineken, BMW and Tiffany to name a few.
The fact is that young people have energy, enthusiasm, spending power and a strong desire to promote their favorite brands to cohorts. So even video providers need that may not normally skew young need to figure out how to have some appeal to this group, because they will be key drivers of the brand's strength down the road. In fact this is what a number of cable networks, like Lifetime, AMC and Food Network been doing in recent years. Though they didn't originally target younger audiences, they began cultivating them through programming choices and marketing campaigns. They are all succeeding.
3. Now is the time to learn about broadband video. Given the above two reasons, it is urgent that video producers targeting all age groups and demos start their learning process now. Finding pockets of current heavy users to appeal to is the key challenge. As a new medium, broadband has its own set of capabilities well beyond being just another pipe to funnel current programming. Understanding these opportunities will not happen overnight. No video producer should wake up one day 3 years from now, when a healthy percentage of its viewers are spending substantial time on broadband, and realize they didn't cultivate the knowledge and skill sets to succeed in this new medium.
Video producers across the spectrum are grappling with how to attract and retain audiences in the broadband and on-demand era. Though 18-34 year old males are today's heaviest users, that will change over time. All video providers need to stay in synch with this.
What do you think? Post a comment and let us all know!