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Deconstructing Morgan Stanley’s Teen Media Report

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Category : review

morgan stanley

Morgan Stanley’s report ” How Teenagers Consume Media ” talks about the impact, reach and relevance of different forms of media on the target section of the population – the teens. The importance of this paper is the very fact that today’s teenagers will be evolving into tomorrow’s workforce and the ones who will be shaping tomorrow’s consumer market. This in itself means that the behaviour of the teenagers and their reaction towards media cannot be overlooked.

However, the report is written by a teenager, 15 year old Matthew Robson. The report reflects how a normal teenager perceives media of the current world spanning across traditional media like TV, radio and print, to new-age media like social networking websites, cellphones, game consoles etc. Although the discussion provided in the report does reflect teenage behaviour in a lot of sections, it has its shortcomings.

The basic problem with the report is that it is not a wide study on teenage behaviour and hence, market research figures are not reflected at all. Rather, the behaviours noted and reflected in this report are a biased sampling of the close friends and family of the writer. This certainly would not entirely represent the true behaviour of teenagers. Besides, the facts stated in the report should be quite obvious to market researchers who deal with actual facts and figures and carry out surveys based on age-groups or regions or income groups. The footnote of the report introduction states: While these trends will not necessarily surprise, their influence on TMT stocks cannot be underestimated. Now, if it takes a 15 year old for market researchers to realise such trends, I believe, we can see a lot more positions being made redundant.

Re-Analysing the Media analysis.
Radio: The popularity of traditional Radio or FM is still relevant inspite of internet radio stations and sites like Last.FM. The peak periods of radio listening are early morning – more so as a wake-up alarm, as a baathroom accomplice etc, in the car or bus to work, and in the evening on the way back home. Distribution of radio over FM transmitters have been reduced, and portable media devices such as a mobile phone or PMPs are where radio is being listened to. And in a country where Radio DJ are national celebrities and have shows running on National TV, can we discard the popularity of traditional radio?

Television: In the UK, due to services such as BBC iPlayer, Sky Plus and Virgin Record, and similar services offered by ITV, Channel 4 etc, prime-time is quite non-existent. BBC has no system of advertising based revenue. Whereas Channels like ITV and Channel 4 are freeview channels and completely rely on advertising based revenue system. With On-Demand viewing which enables users to skip advertisements, ad revenues are set to decline.
For teenagers, the trend of watching their favourite shows depend on
a) no. of televisions in their respective house
b) Availability of a computer with broadband. As most channels offer online catch-up facilities.
c)The channels subscribed for by the earning members of the family.
Since more than often, teens are not the earning members of the family,the final decision of what channels their TV is subscribed to is decided not by them, but by their parents or elders.

The choice of Virgin Media over Sky on the price criteria is another example of sample bias.
Sep 2008 figures: Sky has 9 million customers, which is almost thrice the size of Virgin Media, which holds the second place. Television viewing hours are again dependent on the demographic of teenagers selected.

Internet:
The popularity of social networking websites is evident amongst teenagers. While Facebook remains a favourite, Twitter seems to be not so popular amongst the teens. Even when Twitter occupies much of the attention in the internet buzz-zone, it is absent from the buzz-words amongst the teenagers, primarily because of lack of connectivity, or the cost of it. More of this will be discussed in a later post.

Much of the other information shared in the report regarding Newspaper, Viral Marketing, Cinema and Music is basic common sense stuff. Print media is struggling to get revenues; Viral Marketing works; Cinema has to look for other avenues to compete with Home Entertainment – hence 3d films, Movie experiences etc and Music industry keeps struggling with Piracy.

Please comment below and let me know your thoughts on the observations stated in this post. Thanks!

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