The Tablet Surge: Driving Gaming & Video Growth

We've been studying the tablet market for some time now. This sector of the market has always raised more questions than it has answered – will Americans take to the tablet and what will the do with it – but we're at a point where answers are starting to roll in. Fast and furious!

New results from our bi-annual LMX (Longitudinal Media Experience) study, which measures media behaviors and attitudes of American consumers, shows dramatic tablet computer growth, streaming video content via the game console, and social networking activities with marketing implications.

The findings are impressive, with U.S. tablet computer ownership jumping from 4% to 10% within just the last six months, and we expect it will continue to grow at a rapid pace. This growth could have implications for media and consumer brands alike. Media brands will be interested to learn that tablet computer owners are accessing digitally distributed media across multiple devices. And consumer brands should know that the top activities for most on a tablet computer are search and social networking.

Furthermore, there is some encouraging news for traditional television subscription services. More consumers have added either a cable, satellite, telecommunications, or fiber optic TV subscription service in the past year (11%) than have cancelled (7%). This net gain for traditional television subscription services holds true for the important 18-34 age group, and for males 18-34. A net gain is also seen for consumers adding services to an existing subscription compared to those removing services.

Of course, attention is also being paid to alternative forms of television content distribution, and we now see 9% penetration of Web Enabled Television devices (televisions with built-in internet access). Owners of these TVs spend about 8% of their video viewing time watching video content streamed to the television. However, the greater challenge to linear TV viewing in the short-term will come from the video game console. Among households with a video game console (53% of U.S. households), 9% have streamed video content. These video game console streamers spend 24% of their video viewing time watching streamed video, and spend 31% less time viewing live TV than does the average viewer. In the short-term, it is the video game console that challenges traditional live TV viewing.

The third remarkable trend is social networking which continues to gain ground: 85% of the U.S. online population are now members of a social network and membership jumped from 70% to 76% among those 45 years of age or older. An average of 50 minutes is spent daily on a social network, where consumers will engage with brands: 43% have `liked' a brand; 14% have joined a brand fan group; and 16% have "checked in" at a specific location, suggesting that location-based advertising and marketing initiatives have the potential to reach sizeable audiences.

All in all, console and service marketers should feel truly inspired by these gains, and move quickly to capitalize on this emerging trend, which we too will continue to track.