Reality check

State of the media

democracy

Select highlights from Deloitte’s U.S.

“State of the Media Democracy” survey
Fourth Edition
Contents

4 About Deloitte’s “State of the Media

Democracy” survey

7 Select U.S. findings

8 Advertising: the next generation

11 The dawn of tribal marketing

14 Social networking: here to stay

17 I want my broadband!

20 TV, meet the Internet

23 The mobile phone is lifeline for

the connected consumer

26 Video games: the shadow

distribution channel

31 Want to learn more?

2
Growth
Making the right decisions
Every organization grows at its own pace, determined
by factors as large as the global economy and as
personal as your current balance sheet. But every
business must grow — the only question is how.

Getting it right requires deep industry and business

insights that help identify smart, well-timed
investments. Our 4th Edition “State of the Media
Democracy” survey provides a critical “reality check”
to help you make the right decisions for growing
your organization.

Reality check State of the media democracy 3

About Deloitte’s “State of the Media
Democracy” survey
• T his is the Fourth Edition of research that was • Additionally this year, we also conducted surveys in
commissioned by Deloitte’s Media & Entertainment India and South Korea.
practice — and the second to focus on consumers
across international markets. • Several companies have continued to help us shape
the survey and discussed the initial results with us.
• F ocusing on four generations, the survey provides
a “reality check” on how consumers between the • For meaningful differences, we look for differences
ages of 14 and 75 are interacting with media, in year-over-year tracking and generations of at
entertainment, and information — and what their least 5 percentage points. For data in hours, we
preferences might be in the future. look for year-over-year differences in 0.5 hours and
1.5 hours when comparing generations.
• F ielded by an independent research firm from
September 11th – October 13th, 2009, the survey • We repeat the survey annually to spot emerging
employed an online methodology among 9,067 trends and changes in behavior and technologies.
consumers:
– Brazil: 1,346
– Germany: 1,821
– Japan: 1,847
– United Kingdom: 2,007
– United States: 2,046

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

4
Why a media democracy?
Because this is a global age in which everybody
contributes — not just the traditional media
companies.

Empowered by new technologies, customers

now “vote” through their actions for new sorts of
content, new access devices, distribution platforms,
advertising models, and pricing schemes.

Reality check State of the media democracy 5

Talking ‘bout the generations
Each Edition of Deloitte’s “State of the Media 2009 U.S. population*
Democracy” survey focuses on four generations:
80

Millennials: 14–26 70
• T railing Millennials: 14–20
60
• L eading Millennials: 21–26

Millions of people
(Birth Years: 1995–1983)
50

Generation X: 27–43 40
(Birth years: 1982–1966)
30
Baby Boomers: 44–62
20
(Birth years: 1965–1947)
10
Matures: 63–75
0
(Birth years: 1946–1934) Millennials Generation X Boomers Matures

*U.S. Census Bureau — Population Division

U.S. interim projections 2000–2050

6
Select U.S. findings
An abridged “snapshot” from our detailed 4th Edition
Advertising: the next generation
The recession has turned advertising on its head —
what will have the most impact in the future remains
to be seen.
• T he majority of U.S. consumers (83%) still cite TV
advertising as one of the top three media having
the most impact on their buying decisions
• L ess than half of Americans identify online
advertising among the top three media with the
most impact on their buying decisions
•2
 4% of U.S. consumers agree strongly/somewhat
that they would be willing to provide more
personal information online if that meant they
could receive advertising more targeted to their
needs and interests
8
• 21% of U.S. consumers agree strongly/somewhat
that they are comfortable with having their Web
browsing activity tracked in order to receive
advertising more targeted to their needs and
interests
• 17% of U.S. consumers agree strongly/somewhat
that advertising/product placements in video games
influence their buying decisions more than any type
of online advertising
• 17% of U.S. consumers agree strongly/somewhat
that advertising on social networking sites
influences their buying decisions more than any
type of online advertising
• 15% of Americans ranked newspaper advertising
as the #1 media having the most impact on their
buying decisions
Advertising effectiveness:
TV is the most influential
Q. When you encounter ads in the following media, which three have the most • Across all generations (except Matures, who rank
impact on your buying decision? newspaper advertising equally influential) TV still
reigns as the most influential advertising medium
Advertising types with impact (rated as a ‘Top 3’ influence)
by far — online and traditional print occupy a
3rd 4th Trailing Leading distant second-tier
Edition Edition Millennials Millennials Xers Boomers Matures
% % % % % % %
• Leading Millennials are more influenced by online
TV 88 83 80 82 86 82 80
advertising than other generations
Magazines 49 50 44 45 45 53 67
Online 48 47 55 69 46 41 32 • Trailing Millennials are more influenced by
Newspapers 42 44 20 17 37 59 79 in-theater advertising than other generations
Radio 27 32 26 22 37 34 27
Billboards/
10 13 11 12 14 13 8
outdoor advertising
In-theater
7 11 27 19 10 6 3
advertising
DVDs/Blu-ray 7 10 13 15 13 6 3
Mobile/smartphone 3 6 11 10 6 3 1
Video games 4 5 12 9 5 2 –

Trailing Millennials Leading Millennials Xers Boomers Matures

14–20 years old • 1995–1989 21–26 years old • 1988–1983 27–43 years old • 1982–1966 44–62 years old • 1965–1947 63–75 years old • 1946–1934

Reality check State of the media democracy 9

Advertising attitudes: gender comparison
Q. Please indicate how much you agree or disagree with the following statements
Summary of ‘Agree strongly/somewhat’
4th Edition Millennials Xers Boomers Matures Males Females
% % % % % % %
I tend to pay greater attention to print advertising in
60 64 58 58 59 56 63
magazines than any type of advertising on the Internet
I tend to pay greater attention to print advertising
in newspapers than any type of advertising on the 54 49 53 55 67 54 54
Internet
I would pay an annual subscription fee for my favorite
28 37 29 23 21 30 26
TV shows to watch them without advertisements
I would rather pay for online content (news,
information, sports, games, social interaction sites,
26 32 26 22 24 29 24
movies, music, and television) in exchange for not being
exposed to advertisements
I would be willing to provide more personal information
online if that meant I could receive advertising more 24 32 28 17 18 27 22
targeted to my needs and interests
I am comfortable with having my web browsing activity
tracked so that I could receive advertising more targeted 21 24 24 16 16 24 18
to my needs and interests

Trailing Millennials Leading Millennials Xers Boomers Matures

14–20 years old • 1995–1989 21–26 years old • 1988–1983 27–43 years old • 1982–1966 44–62 years old • 1965–1947 63–75 years old • 1946–1934

10
The dawn of tribal marketing
TV continues to reign as the most influential
advertising platform, and online ads are considered
influential by less than half of Americans. Yet, with
the rise of social media, perhaps we are beginning
to see the dawn of tribal marketing, where online
engagement with consumers will happen in a much
different, more social way.
• The ability of ads on web sites to move traffic to
other sites has dropped from 72% to 59% over the
past three surveys
• U.S. consumers articulated a decreased inclination
to click on more Internet ads, even if the ads were
targeted to their needs — falling from 66% in the
2007 Edition to 50% this year
• 57% of U.S. consumers currently maintain a social
networking site — up from 48% last year
• 26% of U.S. consumers are socializing online
everyday/almost everyday (via social networking
sites, chat rooms or message boards) — 41% of
Millennials
• 55% of U.S. consumers believe strongly/somewhat
that online consumer reviews and ratings influence
their buying decisions more than any type of online
advertising — 69% of Millennials
• 51% of U.S. consumers have purchased a product
based on an online recommendation
• 65% of U.S. consumers frequently/occasionally
visit web sites as a result of someone’s online
recommendation
• 24% of U.S. consumers would find it extremely/
very desirable to have an online service that
recommends a product based on other consumers’
preferences
Reality check State of the media democracy 11
The power of online recommendations
• 65% of U.S. consumers frequently/ Q. How often would you say you visit web sites as a result of the following?
occasionally visit web sites as a result of
Summary of ‘Frequently/occasionally’
someone’s online recommendation
1st 2nd 3rd 4th
Edition Edition Edition Edition Millennials Xers Boomers Matures
• 55% of Americans believe strongly/ % % % % % % % %
somewhat that online consumer reviews Someone’s online
and ratings influence their buying 65 72 67 59 61
recommendation
decisions more than any type of online
advertising — 69% of Millennials Q. Please indicate how much you agree or disagree with the following statements.
Summary of ‘Agree strongly/somewhat’
• Almost a quarter of Americans find it Online consumer reviews and ratings influence
extremely/very desirable to have an online my buying decisions more than any type 55 69 56 49 43
service that recommends a product based of online advertising
on other consumers’ preferences
Q. Listed below are several new areas of technology/media that may or may not be
developed in the future. For each one, please rate how desirable it is to you.
Summary of ‘Extremely/very desirable’
An online service that
recommends a product based – – 27 24 27 27 21 16
on other consumers’ preferences

Trailing Millennials Leading Millennials Xers Boomers Matures

14–20 years old • 1995–1989 21–26 years old • 1988–1983 27–43 years old • 1982–1966 44–62 years old • 1965–1947 63–75 years old • 1946–1934

12
Online purchase behavior
Q. Have you ever learned of a new product for the first time online? • Consumers are much more likely to
Q. Have you ever purchased a product based on an online recommendation? be learning of new products for the
Q. Have you ever recommended a product to someone online through a blog first time online than in 2008
entry, a message board posting, or an online product review? – Over 80% of Hispanics have
% Saying ‘Yes’ to each: learned of a new product via
3rd 4th the Internet
African-
Edition Edition Millennials Xers Boomers Matures White Hispanic Asian
American
% % % % % % • Consistent with last year, about half
% Learned of a new of all consumers have purchased
product for first time 63 73 86 73 66 66 76 66 83 69 a product based on an online
online
recommendation, and one-third
% Purchased a are actually recommending and
product based
on an online
51 51 64 55 43 36 51 44 54 53 reviewing products themselves
recommendation
% Who have
recommended a
product through a
31 33 45 37 27 15 31 33 38 39
blog entry, message
board posting, or
online review

Trailing Millennials Leading Millennials Xers Boomers Matures

14–20 years old • 1995–1989 21–26 years old • 1988–1983 27–43 years old • 1982–1966 44–62 years old • 1965–1947 63–75 years old • 1946–1934

Reality check State of the media democracy 13

Social networking: here to stay
Social networking is no longer a fad — with more • 37% of U.S. consumers say they frequently/
than half of U.S. consumers maintaining their own occasionally visit Web sites after seeing an
site. advertisement on social networking sites

• The majority of U.S. consumers (65%) state the • 33% of U.S. consumers are communicating in real
main value of social networking sites (Facebook, time with others via their social networking site
MySpace, Twitter, etc.) is they allow them to
interact with more friends (more frequently) than • 26% of U.S. consumers are socializing online
they ever would be able to “offline“ everyday/almost everyday (via social networking
sites, chat rooms or message boards) — 41% of
• 57% of U.S. consumers currently maintain a social Millennials
networking site — up from 48% last year
– 36% of Matures are now maintaining a site —
up dramatically from 14% last year
– 46% of Boomers are maintaining a site — up
noticeably from 31% last year
– Millennials’ and Xers’ engagement remains flat
year over year, but they continue to drive this
activity with 77% and 61% maintaining sites

14
Social networking on the rise
Q. Please indicate your experience with each of the following • Engagement with social
networking sites has
“Maintaining my social networking site (MySpace, Facebook, Classmates, Friendster, Linked-in, etc.)”
increased considerably
(summary of ‘Currently do’)
since last year (driven
80 76% 77% most notably by
71% Boomers and Matures)
61%
60
57%
51% 57%
45% 48% 46%
40
36%
30% 31%
20
14%
10%
0
2nd Edition 3rd Edition 4th Edition

Total U.S. Millennials Xers Boomers Matures

Trailing Millennials Leading Millennials Xers Boomers Matures

14–20 years old • 1995–1989 21–26 years old • 1988–1983 27–43 years old • 1982–1966 44–62 years old • 1965–1947 63–75 years old • 1946–1934

Reality check State of the media democracy 15

Social networking attitudes
• The majority of Americans believe social Q. Please indicate how much you agree or disagree with the following statements
networking sites allow them to stay
Summary of ‘Agree strongly/somewhat’
connected online and interact with
more friends 4th
Edition Millennials Xers Boomers Matures
% % % % %
• 40% of U.S. consumers believe this time
To me, the main value of social networking
is just as valuable as live “face time” sites (Facebook, MySpace, Twitter, etc.) is they
65 80 72 56 40
allow me to interact with more friends (more
• Millennials lead the way for social frequently) than I ever would be able to “offline”
networking trends When I need to connect with my friends, I think
that social networking sites (Facebook, MySpace,
58 80 66 44 28
Twitter, etc.), IM and texting are a good way to
satisfy my needs
The time I spend interacting with friends
electronically through IM, texting or social
networking sites (Facebook, MySpace, Twitter, 40 58 45 28 24
etc.) is just as valuable as time we spend
together in person
Advertising on social networking sites influences
my buying decisions more than any type of 17 28 18 11 5
online advertising

Trailing Millennials Leading Millennials Xers Boomers Matures

14–20 years old • 1995–1989 21–26 years old • 1988–1983 27–43 years old • 1982–1966 44–62 years old • 1965–1947 63–75 years old • 1946–1934

16
I want my broadband!
Staying connected (and doing so with lightening
speed) is more important than ever.
• 38% of U.S. consumers who have broadband fiber
optic Internet access, rate it as their top media
subscription service — last year it didn’t even make
the list because penetration of fiber optic was too
small to reference
– 88% of Boomers put fiber optic as one of the top
three services they value most
• 50% of U.S. consumers state they would view
more videos from the Internet if their connection
speed was faster, and downloads finished faster —
up from 39% last year
• 65% of U.S. consumers want to be able to easily
connect their home TV to the Internet so that they
can view videos or downloaded content from the
Internet — up from 58% last year

• 37% put Broadband DSL Internet Access as their

top service — making it an overall #2 for three
years in a row

• 34% put Broadband Cable Internet Access as their

top service — making it an overall #3 for three
years running

Reality check State of the media democracy 17

Number 1 service among subscribers
• On average, over a third of U.S. Q. Of the services you indicated you subscribe to, which 3 do you value the most?
consumers rate their broadband Internet
% Ranked “#1” among subscribers
access (whether via fiber optic, DSL,
Cable or Satellite) as the #1 service they 2nd 3rd 4th
Edition Edition Edition
subscribe to — fiber optic, DSL, and
Total Total Total Total Total Total Millennials Xers Boomers Matures
Cable tie for #1 rank % rank % rank % % % % %
Broadband fiber optic Internet access – – ^ ^ 1 38 24 ^ 40 ^
Broadband DSL Internet access 2 36 2 31 2 37 41 37 36 30
Broadband cable Internet access 3 32 1 34 3 34 33 42 32 25
Satellite TV (basic, premium, digital HD) – 25 3 26 4 33 23 35 34 42
TV via fiber optic (FiOS, etc.) – 25 3 26 5 30 29 ^ ^ ^
Cable TV (basic, premium, digital HD) – 25 5 20 6 29 19 28 35 38
Broadband satellite Internet access ^ ^ ^ ^ 7 27 21 31 29 ^
Mobile/cellular/smartphone
– – – – 8 26 37 25 19 10
(phone voice and data plan)
Dial-up Internet access – – – – 9 19 18 21 14 ^
Mobile/cellular/smartphone
– – – – 10 15 11 17 18 9
(phone voice-only service)
^ Base size too small to show

Trailing Millennials Leading Millennials Xers Boomers Matures

14–20 years old • 1995–1989 21–26 years old • 1988–1983 27–43 years old • 1982–1966 44–62 years old • 1965–1947 63–75 years old • 1946–1934

18
Faster, is better!
Q. Please indicate how much you agree or disagree with the following statement (summary of ‘Strongly/
somewhat agree’)
“I would view* more videos from the Internet if my connection speed was faster and downloads finished faster.”

70
64%
60 54%
53% 53% 54%
50 46% 50%
43% 49%
40 42% 40%
38%
37% 39%
30
31% 33%
28%
19%
20 15% 22%

10
1st Edition 2nd Edition 3rd Edition 4th Edition
Total U.S. Millennials Xers Boomers Matures

Trailing Millennials Leading Millennials Xers Boomers Matures

14–20 years old • 1995–1989 21–26 years old • 1988–1983 27–43 years old • 1982–1966 44–62 years old • 1965–1947 63–75 years old • 1946–1934

* “I would download more videos…” in prior Editions Reality check State of the media democracy 19
TV, meet the Internet
Television content continues to fascinate Americans.
But how long can that box in your living room survive?
The answer is, if you combine it with the Internet,
maybe longer than you think.
• Over 70% of U.S. Consumers rank watching TV in
their top three favorite media activities. And when
ranked alongside activities such as surfing the Web,
listening to music or reading, 34% of Americans
place it at the top of the list — a 26% increase from
last year
• When it comes to watching television on their home
TV, Americans are watching 17.8 hours in a typical
7-day week — up notably from 15.8 hours last year.
Millennials had the largest increase, going from 10.5
hours to 14.7 hours!
• U.S. consumers ranked the following methods
as their favorite way to watch their favorite TV
programs:
– 61% live on their home television system
– 21% via their DVR on their home television
system
20
– 4% via a free online video service (Hulu, TV.com);
15% are doing so daily or weekly
– 3% via the show’s Internet site — 9% are
watching their favorite shows via the shows’
Internet site at least weekly
• Americans are experimenting with how they are
watching television programs. Over the last six
months, U.S. consumers have watched their favorite
TV programs on the following platforms:
– 77% watched them live on their home television
system
– 30% watched them via their DVR on their home
television system
– 17% watched them via a free online video service
(Hulu, TV.com)
– 18% have watched via the show’s Internet site —
up from 13% last year
– 10% viewed them from a video-sharing site (like
YouTube)
TV viewing times (year/year)
Q. How many total hours in a typical 7-day week are you doing each of the following activities? • When it comes to
watching television
Watching television on a home TV (year/year comparison)
on their home TV,
25 Americans are watching
22.9 17.8 hours in a typical
21.5
7-day week — up
20 19.2 18.7 notably from 15.8 hours
Hours per 7-day week

17.8 17.5 last year. Millennials had

15.8
14.7 15.1 the largest increase,
15
going from 10.5 hours
10.5 to 14.7 hours!
10

0
Total U.S. Millennials Xers Boomers Matures

3rd Edition 4th Edition

Trailing Millennials Leading Millennials Xers Boomers Matures

14–20 years old • 1995–1989 21–26 years old • 1988–1983 27–43 years old • 1982–1966 44–62 years old • 1965–1947 63–75 years old • 1946–1934

Reality check State of the media democracy 21

Connecting the TV to the Internet
Q. Please indicate how much you agree or disagree with the following statement (summary of ‘Strongly/
somewhat agree’)
I would like to be able to easily connect my home television (plasma, LCD, etc.) to the Internet so that I can view
videos or downloaded content from the Internet on my television, or view anything at all that I have on my PC

80 74%
71% 70%
71%
64%
66% 61% 65%
60
52% 58% 58% 59%
47% 51%
49%
46%
40
40% 40%
35%
29%
20
1st Edition 2nd Edition 3rd Edition 4th Edition

Total U.S. Millennials Xers Boomers Matures

Trailing Millennials Leading Millennials Xers Boomers Matures

14–20 years old • 1995–1989 21–26 years old • 1988–1983 27–43 years old • 1982–1966 44–62 years old • 1965–1947 63–75 years old • 1946–1934

22
The mobile phone is the lifeline for the
connected consumer
Mobile Internet use is quickly decoupling the Internet
experience from the desktop for almost half of
the population. This will facilitate new consumer
behaviors, likely including increased mobile search,
purchasing and social networking. But how will
the mobile phone fare against the new upstart, the
netbook?
• 48% of U.S. Consumers have a voice AND data
plan for their mobile/smartphones; 26% state this
plan is their MOST valued media & entertainment
service — ranking it overall as #8 among
subscribers
• 47% of U.S. consumers state their “smartphone”
is one of their three most valuable media &
entertainment products; ranking it as #4 among
owners — up from #10 last year
• 37% of U.S. consumers believe it would be
extremely/very desirable to have a feature on their
mobile/cellular phone that would allow them to
locate shops, restaurants, hotels, etc., within a
specified radius of their location
• Consistently over the last three years, roughly a
third of U.S. consumers use their mobile phone as
an entertainment device
• U.S. consumers are frequently/occasionally doing
the following with their phones:
– 72% are text messaging — up from 65% last
year, and increases across all generations
– 42% are accessing the Internet — up from 36%
last year
– 30% are using mobile online search
– 27% are downloading apps to their phone
– 26% are using GPS — up from 9% last year
– 15% are purchasing products
Reality check State of the media democracy 23
Top 3 most valued media products (ownership base)
• While still owned Q. Of products you indicated you own, which 3 do you value the most?
by a minority of
Preferred media/entertainment equipment (% ranked in “Top 3” among owners) T=tied
the population,
smartphones are highly 2nd 3rd 4th
Edition Edition Edition
valued by their owners Total Total Total Total Total Total Millennials Xers Boomers Matures
rank % rank % rank % % % % %
Desktop computer (PC or Mac) 1 70 1 69 1 64 51 58 72 84
Laptop/netbook computer (PC or Mac) 3 54 3 56 T2 62 48 63 70 73
Flat Panel TV (LCD or plasma) 7 45 2 57 T2 62 48 63 70 73
Smartphone* T17 16 10 20 4 47 52 53 36 ^
Mobile/cellular phone (basic phone for calling and texting)** 2 59 4 51 5 41 43 39 40 46
Digital video recorder (DVR, TiVo) 10 33 5 29 6 35 20 40 37 44
Non-flat panel TV (CRT or tube TV) T5 32 7 26 7 28 17 24 36 39
Video game console system (Xbox, Xbox 360, PS2/3,
8 25 6 27 8 24 32 24 14 ^
GameCube, Wii, etc.)
Computer network/router in your home for wireless
16 17 13 16 9 23 19 21 27 30
computer/laptop usage
Portable music/video player (e.g., iPod or other MP3
11 21 9 22 10 22 32 22 12 15
player)***
* “Blackberry or other mobile enabled PDA (personal digital assistant)” in previous Editions ^ Base size too small to show
** “Mobile phone” in previous Editions
*** “Portable MP3 player (Zoon, iPod, Samsung or similar)” in previous Editions

Trailing Millennials Leading Millennials Xers Boomers Matures

14–20 years old • 1995–1989 21–26 years old • 1988–1983 27–43 years old • 1982–1966 44–62 years old • 1965–1947 63–75 years old • 1946–1934

24
Mobile phone applications use
Q. Thinking about the features included on your cell phone, please check the • Use of various mobile phone features has increased
answer that best describes your usage of each cell phone feature. notably since last year (from texting, Internet
access, and e-mailing to GPS usage and updating
Select applications (summary of ‘Use frequently/occasionally’)
social networking pages)
2nd 3rd 4th
Edition Edition Edition Millennials Xers Boomers Matures
% % % % % % % • Like prior Editions, Millennials continue to be the
most actively engaged in using the widest variety of
Text messaging 61 65 72 86 80 66 28
mobile phone capabilities
Internet access 35 36 42 55 42 37 20
E-mail 32 34 39 49 39 37 22
Mobile online search – – 30 45 35 20 12
Download applications to
– – 27 37 29 20 12
my phone
GPS (global positioning
12 9 26 34 27 24 8
service)
Update social networking
– 20 25 41 25 16 6
page
Receive news, sports,
weather and traffic
– – 24 31 28 20 9
updates through text
messaging
Purchase products – – 15 22 16 11 8

Trailing Millennials Leading Millennials Xers Boomers Matures

14–20 years old • 1995–1989 21–26 years old • 1988–1983 27–43 years old • 1982–1966 44–62 years old • 1965–1947 63–75 years old • 1946–1934

Reality check State of the media democracy 25

Video games: the shadow distribution channel
In a year when “flat is the new up,” gaming surged – 44% of Boomer households own a video game
ahead on every major platform, including the console — up from 35% last year
console. Is the gaming console about to emerge – 11% of Mature households own a video game console
from the shadows as the next pivotal piece in the
entertainment ecosystem, or will its star fade? • In the last six months, 47% of U.S. consumers
have played a newly released video game via a
• Across all platforms, more U.S. consumers are video game console – up from 31% last year. This
playing newly released video games than a increase is seen across all generations:
year ago
– 8% of Matures have played — up from 3% last year
– 47% have played via a home console — up from 31%
– 31% of Boomers have played — up significantly from
– 42% have played on their PC — again up 12% last year
noticeably from 26% last year
– 54% of Xers have played – up notably from 37%
– 17% have played on a handheld — up from 11% last year
– 13% have played on a mobile phone/smartphone — – 74% of Millennials have played — up notably from
up from 4% 59% last year

• U.S. consumers’ ownership of video game consoles • Millennials and Xers favor console systems;
has increased to 58% (up from 44% in our First Boomers and Matures favor their PC
Edition)
– 83% of Millennial households own a video game • Across the last four surveys, an average of over
console 50% of U.S. consumers state that video games
have become an important entertainment source
– 67% of Xer households own a video game console
for them
26
Playing methods for newly released
video games (total U.S.)
Q. What methods have you used to play newly released video games in the past 6 months? • Nearly half of all U.S.
consumers have played
U.S. consumers: select platforms (year/year comparison)
video games on a home
console in the past six
50 47% months
42%
40

32% 31%
U.S. consumers

30 27% 26%

20 17%
13% 13%
11%
10
5% 4%

0
Mobile/smartphones Handhelds Computer Consoles

2nd Edition 3rd Edition 4th Edition

Trailing Millennials Leading Millennials Xers Boomers Matures

14–20 years old • 1995–1989 21–26 years old • 1988–1983 27–43 years old • 1982–1966 44–62 years old • 1965–1947 63–75 years old • 1946–1934

Reality check State of the media democracy 27

Game console ownership
• Since 2007, U.S. consumers’ Q. Which of the following media or home entertainment equipment does your household own?
ownership of video game
Media/entertainment equipment owned
consoles has increased to
almost 60% 1st 2nd 3rd 4th
Edition Edition Edition Edition Millennials Xers Boomers Matures
% % % % % % % %
• Compared to last year, there
has been the largest increase Video game/console system
(Xbox, Xbox 360, PS2, PS3, 44 51 52 58 83 67 44 11
in game console ownership GameCube, Wii, etc.)
among Boomers
Household ownership of video game/console systems (year/year comparison)
– Since our 1st Edition,
ownership among Millennials Xers Boomers Matures
Boomers and Matures 1 st
2 nd
3 rd
4 th
1 st
2 nd
3 4rd
1th
2 st
3 nd
4 1
rd
2nd
th
3rd st
4th
Edition Edition Edition Edition Edition Edition Edition Edition Edition Edition Edition Edition Edition Edition Edition Edition
has increased the most % % % % % % % % % % % % % % % %

75 75 79 83 53 66 65 67 31 35 35 44 7 9 11 11

Trailing Millennials Leading Millennials Xers Boomers Matures

14–20 years old • 1995–1989 21–26 years old • 1988–1983 27–43 years old • 1982–1966 44–62 years old • 1965–1947 63–75 years old • 1946–1934

28
And there are hundreds
more pages of data . . .

Reality check State of the media democracy 29

Chapter index of survey findings
Deloitte’s “State of the Media Democracy” survey, fourth Edition, provides insight into dozens of topics,
including those listed below — this document provides only select highlights.

• Advertising: the next generation • The mobile phone is lifeline to the connected
• Baby Boomers consumer
• The dawn of tribal marketing • Movies and DVDs
• Digital photography/cameras • Music insights
• DVRs and TV multi-tasking • Newspaper insights
• Future of the media democracy • Radio insights
• Gender attitudinal differences • Search
• Generation X • Shopping insights
• I want my broadband! • Social networking: here to stay
• Internet insights • Technology insights
• Magazine insights • Telecom insights
• Matures • TV, meet the Internet
• Media products: ownership & preferences • User-generated content
• Media services: subscriptions & preferences • Video games: the shadow distribution channel
• Media platforms: usage & preferences • Viral/social activities
• Millennials (leading vs. trailing)
30
Want to learn more?
For more information or to arrange an appointment to discuss these
and hundreds of other findings from the Fourth Edition of Deloitte’s
“State of the Media Democracy” survey, please contact:

Ed Moran, Director of Insights and Innovation

Deloitte Services LP
+1 212 436 6839
emoran@deloitte.com

Phil Asmundson, U.S. Technology, Media & Telecommunications Leader

Deloitte LLP
+1 203 708 4860
pasmundson@deloitte.com

Eric Openshaw, U.S. Technology Leader

Deloitte LLP
+1 714 913 1370
eopenshaw@deloitte.com

Press inquiries: Jonathan Gandal at

jgandal@deloitte.com or +1 203 708 4115

Reality check State of the media democracy 31

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