Digital study: African-Americans more likely to be viewers of video on mobile devices

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By Thomas Umstead
Multichannel News

(March 28, 2010) Cable programmers and operators will have to work together to provide the best video product as conveniently as possible over numerous technologies if they hope to remain relevant among a growing, more platform-diverse multicultural audience.

That’s the takeaway from Horowitz Associates’ annual “State of Cable and Digital Media: Urban Markets” study of the media habits of multicultural audiences, which found that such viewers are gravitating toward online, mobile and other technologies faster than the general population.

Only 13% of the general U.S. population watches TV shows or other video online on a monthly basis, according to Horowitz, while just 5% of that group watches mobile-phone video each month.

But about 36% of Asian consumers, 14% of African- Americans and 17% of Latinos watch video online each month, compared to just 7% of white viewers, according to the survey.

In addition, 9% of African-American viewers, 7% of Hispanics and 3% of Asian viewers are watching TV shows and other video programming via mobile phones, compared to 2% of white viewers.

Speaking at last week’s Horowitz Associates 10th Annual Multicultural Forum here, Horowitz vice president of marketing and development Adriana Peterson said new-media platforms can provide a boost for the big content providers, because viewers want to see the top cable and broadcast shows online and on their mobile phones. Nearly 20% of all broadband video viewing is of full-length episodes of cable and broadcast network programming, compared to 17% for news video segments and 16% for movie trailers, according to the study.

But these emerging platforms have complicated negotiations between operators and networks over distribution, as both sides volley over traditional and alternative media rights.

“We’re discussing content that’s on the Web, the television, the [digital video recorder] and mobile and, as a result, negotiations are getting more difficult, but we’re embracing it,” said Mediacom Communications vice president of programming Glenn Goldsmith. “The question then becomes, how do I get those rights?”

A&E Television Networks senior vice president of distribution and business development Mark Garner said today’s carriage negotiations between operators and networks are far more complex than in past years, because the outcome has ramifications on a host of other revenue opportunities for both parties. There is “a lot of money to be made” between the various platforms, he added, but it’s crucial not to disrupt the current distribution model that has served both parties well financially.

Content targeted to multicultural audiences in particular will become more valuable both for traditional cable and new media platforms, as diverse audiences continue to take full advantage of the new technologies. But for Comcast and Radio One-owned TV One, the ability to offer its African-American-targeted content via the Web has been slowed by long-term deals that limit how much content can be placed online in the mobile space, according to senior vice president of national accounts Kimberly Hulsey.

Still, Fuse executive vice president of content distribution Brad Samuels said traditional television will remain the best way for content providers to reach consumers for the foreseeable future.

The State of Cable and Digital Media: Urban Markets also reported that 69% of all television viewing is still done through traditional linear cable and satellite services, although viewers with DVRs and DVD players watch about 13% less live television.

Also, the much-debated “digital divide” is quickly becoming a past phenomenon, as more than half of all Hispanic, African-American and Asian homes now have broadband access.