The London Olympics and Changes in Media Viewing Environments

〈 Publication Date: July 27, 2012 〉

This Insight Memo examined how the media viewing environment is changing due to the London Olympics.

■ ¥368.7 Billion Boost to Domestic Consumption

The London Olympics are the biggest event of 2012 and are expected to generate enormous economic effects not only for host nation Britain but worldwide. For Japan alone, it was found that the event would have a direct consumption boost effect of ¥368.7 billion, primarily in digital home appliances and food and beverage sectors (estimated by Dentsu Research Institute in March 2012). In the medium term, an economic ripple effect of as much as ¥803.7 billion is anticipated.

■ Diverse Viewing Styles Battle an 8-Hour Time Difference

Since many events during these Olympics will take place late at night Japan time, how viewers perceive the 8-hour time difference (due to daylight saving time) between Japan and the UK will significantly shape their viewing patterns. Those watching live must battle the time difference and sleep deprivation, while those watching recorded broadcasts via recorders or similar devices will likely view the events the next day or later, avoiding sleep deprivation. Viewing attitudes will differ based on user lifestyles. Indeed, a DENTSU SOKEN INC. survey revealed that when asked "How would you like to watch the London Olympic Games?", 87.5% responded "Watch the broadcast live on my home TV," while 21.3% said "Record it on my home TV or recorder and watch later." This shows a clear majority prefer live viewing, though a significant number also plan to watch recorded broadcasts. Furthermore, with services like the smartphone-based broadcast "NOTTV" offering both live and recorded Olympic broadcasts, it's fair to say an environment has been established where viewers can enjoy the games without worrying about time differences.

■ Social Media Integration Amplifies the Buzz

Prior to the Games, initiatives included encouraging fans to post supportive videos on dedicated online sites to cheer on athletes. During the Games, a system was established allowing viewers to access messages from participating athletes. Additionally, "viewer participation applications" featuring functions like viewers cheering for athletes together while watching broadcasts emerged, aiming to provide the unique enjoyment and excitement of live viewing. A survey by Dentsu Inc. Institute of Research found that 15.7% of respondents stated, "I want to use social media while watching Olympic events." This tendency was stronger among younger demographics, with 30.0% of those in their 20s answering "Yes." A significant increase in young people using social media while watching the London Olympics live on TV is expected.

Social Media Use While Watching Olympic Events

■ Live streaming via the internet accelerates with the Olympics

The U.S. will live stream over 3,500 hours of competition, including all 302 event finals. With an internet connection, viewers can watch almost in real time on devices like tablets. The UK, leading the convergence of telecommunications and broadcasting, will also offer 2,500 hours of free live streaming online.
In Japan, there is also a trend to broadcast events not shown live on TV via the internet. The National Association of Commercial Broadcasters in Japan (NACB) established the joint official video site "gorin.jp" with 132 commercial TV stations for the London Olympics, creating an environment where 150 hours of competition can be viewed live online (NHK's internet live broadcasts offer approximately 1,000 hours). The production and operation of gorin.jp is entrusted to Presentcast. The 132 commercial TV stations have operated gorin.jp for every Games since the Beijing Olympics, making this the third time.
Given the increasingly evident moves in various countries to prepare for the convergence of telecommunications and broadcasting, 2012 can be considered the inaugural year of internet broadcasting pioneered by the London Olympics.