New Media Cannibalization

 The Challenge

This ongoing research first began in 2007, alongside the introduction and proliferation of new technologies, such as digital video recorders (DVR), video on demand (VOD) and broadband internet connections that provide consumers the option of viewing movies and other content on platforms beyond traditional TV or DVD devices.  A leading movie and television studio partnered with Illuminas in order to assess and track consumers’ acceptance of these new delivery methods, as well as to monitor the impact on their business as it relates to DVD purchases. 

The Solution

Illuminas developed a research program that is executed four times a year, and it utilizes both offline and online research methodologies in order to provide results that are representative of the US population.

Our strategy for understanding the competitive market between DVD and new media technology includes the following components:

• We ask individuals to estimate the magnitude of impact media sources have on one another based on recall for previous media choices. Accepting the imperfect nature of memory, these measures still provide clear perceptions of the competitive overlap between old and new media platforms.
• Consumption trends also change substantially over time as platforms rise and fall in popularity. We collect overall channel usage each quarter, and track the absolute trends and cross-channel correlation to evaluate changes in media behavior.
• Since media preferences are also dictated by content, we collect recent program viewership and ground additional channel usage questions directly in this context.  This provides the most detailed insight into media behavior, both in terms of validating more generalized behavior and also in allowing further drill-down by content preferences. 

The Insight

As the industry continues to evolve, our client is constantly maintaining a pulse on the market and revealing the ways they fit in this new technological landscape.  Specific insights included the following:

• Tracked the impact of new media channels on DVD sales
• Gauged cross-media consumption and cannibalization across the new media channels
• Revealed specific market shifts that may cause DVD sales to increase or decrease, accounting for economic climate
• Profiled media consumers based on key demographic and psycho-graphic variables
• Monitored changes in technology penetration and usage relative to DVD sales over time
• Provided usage rates and market sizing of traditional and new media channels, including overlap in use