Olswang Predicts Mobile’s Impact on TV: The Convergent Revolution

The stage is set for convergence

Smartphones are experiencing accelerating rates of adoption: 22% of consumers already have a smartphone, with this percentage  rising to 31% amongst 24-35 year olds.

At the same time, tablet adoption is still in the nascent stages; 3% own an iPad and 2% own some other kind of tablet. Unsurprisingly, Apple owners tend to be more brand loyal than anyone else. This means that someone who owns an iPhone is much more likely to own an iPad or AppleTV as well.

Additionally, nearly a quarter of Olswang’s respondents own some kind of connected TV service - 23% already have a device allowing them to watch video on demand (VoD) on their main TV.

Already, 5% of all iPlayer viewings are on mobile, with the BBC expecting this number to grow quickly. Many observers predict tablets will not replace the home TV, but instead result in new TV viewing, in new places.

This sort of convergence is set to become more mainstream, as long as it continues to provide true value to consumers.

Smarter, connected technologies mean that consumers can combine functionalities in new and exciting ways - offering groundbreaking opportunities to TV providers.

The Second Screen

There’s no doubt that the second screen is already happening - 86% of  Americans already use a mobile phone while watching TV.

What remains to be seen is how companies successfully capitalise on the trend.

As expected, interest in companion screen activity is highest among 18-24 year olds, and tails off in older demographics.

What is most interesting is that owners of iPads and tablets show significantly higher than average interest in “companion screen” apps.  29% of iPad owners would be very likely or fairly likely to buy a TV app which allowed them to play along with a TV game show in real-time.

What kinds of second screen experiences are compelling to consumers?

Olswang writes that “anything extending natural behaviour will fly”. This means tapping into what consumers are already doing, and trying to shape current trends.

So far, one of the most successful UK companion apps to capitalize on the second screen is the Million Pound Drop App.

Over the series first 6 day run, the game was played 3 million times (ratings measurement set the overall audience of the series at 13 million, with an average of 2.2 million viewers per episode.

The Future of TV

However, it’s important to take all the excitement about cross-platform and convergent opportunities with a grain of salt. According to Olswang, although the promise of convergence seems within reach, the revolution of consumer behaviour is likely to arrive slower than some optimists predict - but the future of TV is going to look a lot different than it does today.

Download Olswang's full report here

Emma Wells, Marketing Manager