Copyright is owned by the Author of the thesis. Permission is given for a copy to be downloaded by an individual for the purpose of research and private study only. The thesis may not be reproduced elsewhere without the permission of the Author. The Extent and Measurement of VCR Time Shifting A thesis presented in partial fulfilment of the requirements for the degree of Master of Business Studies in Marketing at Massey University Penelope Jane Turner 1997 ii ABSTRACT The validity and accuracy of television programme ratings are critical to media planners and broadcasters alike. Media planners use ratings to select programmes that will satisfy certain reach and frequency objectives, which in tum contribute to an advertising campaign's overall goals. Broadcasters deliver audiences to advertisers, and base programme scheduling and pricing decisions on ratings data. At present, ratings are delivered within 24 hours of viewing and do not include adjustments for time shift viewing. Time shifting occurs when a television programme is videotaped and replayed at a later date. Given that VCR penetration in New Zealand has increased to over 75 percent of households, it is clear that programme ratings may be higher than the current overnight ratings suggest. This thesis explored the extent and measurement of time shifting in New Zealand. More specifically, it used AGB McNair's people meter data to examine: the scale of time shifting, the current methods of measuring time shifting, and future methods of estimating time shift viewing. The study aimed to identify whether patterns of time shifting behaviour exist, and whether these patterns could be used to model more inclusive overnight ratings. The findings suggest that, although the overall effect of time shifting on programme ratings is small, some programmes have very high levels of time shift viewing, prompting the need to include time shift viewing in the overnight ratings. The main constraint impeding the inclusion of VCR ratings in the overnight ratings is the difficulty in estimating time shift audiences overnight. This study proposed a number of methods of estimating VCR ratings overnight, including the recording level adjustment method, the same day playback adjustment method, and the genre/station correction method. While further research is required to iii compare the predictive ability of the methods, in the meantime implementing any of the methods is likely to provide more accurate overnight estimates of total audiences. iv ACKNOWLEDGEMENTS First, I would like to thank my supervisor, Dr Janet Hoek, for her professional guidance and especially her encouragement at the times when my motivation was lacking or I was having a crisis. I also gratefully acknowledge the advice and support of Professor Philip Gendall, especially during the data analysis stage of the study. I would like to thank Don Esslemont for his advice which was given willingly, with patience and understanding. Thanks also to Lisa Emmerson who provided constructive criticism throughout the writing of this thesis. Without the co-operation of AGB McNair this study would not have been possible. I greatly appreciate the support and encouragement of Nick Jones. I also thank Mike Frisby for the hours he spent preparing the data and the prompt answers he gave to my many questions. Funding for the project was generously provided by the Massey University Graduate Research Fund (GRF) and the Department of Marketing at Massey University. Most importantly I would like to thank Brent for his continual support, understanding, and knowing exactly the right words to say in my many moments of stress. Thank you to Mum, Dad, and Paul for their interest, and also the support of Jason, who knew exactly what I was going through. Without these people the past year would have been much harder to cope with. TABLE OF CONTENTS ABSTRACT n ACKNOWLEDGEMENTS 1v TABLE OF CONTENTS v LIST OFT ABLES vu LIST OF FIGURES ix CHAPTER 1. INTRODUCTION 1 1.1 VCR Penetration 1 1.2 VCR Time Shifting 2 1.3 Time Shifting and Programme Ratings 3 1.4 Time Shifted Commercials 5 1.5 Summary 7 CHAPTER 2. THE EXTENT OF TIME SHIFTING AND INFLUENCING FACTORS 9 2.1 VCR Use: Time Shift Viewing versus Pre-recorded Viewing 9 2.2 Time Shift Viewing versus Live Viewing 13 2.3 Time Shift Viewing across Programme Genres 15 2.4 Time Shift Viewing across Stations 18 2.5 Time Shift Viewing across Times and Days 21 2.6 Time Shift Viewing across Demographic Groups 23 2.7 Summary 24 CHAPTER 3. MEASURING TIME SHIFT VIEWING 25 3.1 Levels of Recording and Playback 25 3.2 Frequency of Playback 30 3.3 The "Viewing Lag" 32 3.3.1 Proportion of Recordings 32 3.3.2 Proportion of Playbacks 35 3.3.3 Variations in Viewing Lags 37 3.4 Summary 39 CHAPTER 4. RESEARCH OBJECTIVES AND METHODOLOGY 40 4.1 Research Objectives 40 4.1.1 The Extent of Time Shifting 40 4.1 .2 Variations in Time Shift Viewing Levels 41 4.1.3 Measuring Time Shift Viewing 42 4.2 Research Methodology 44 CHAPTER 5. THE EXTENT OF TIME SHIFTING: RESULTS AND DISCUSSION 45 5.1 VCR Use: Home Recorded versus Pre-recorded Viewing 45 5.2 Time Shift Viewing versus Live Viewing 48 CHAPTER 6. VARIATIONS IN TIME SHIFT VIEWING LEVELS: RESULTS AND DISCUSSION 55 6.1 Time Shift Viewing across Programme Genres 55 6.2 Time Shift Viewing across Stations 58 6.3 Time Shift Viewing across Times of the Day 60 6.4 Time Shift Viewing across Days of the Week 63 6.5 Time Shift Viewing across Demographic Groups 65 CHAPTER 7. MEASURING TIME SHIFT VIEWING: RESULTS AND DISCUSSION 68 7 .1 Current measures 7 .1.1 Levels of Recording and Playback 7 .1.2 The "Viewing Lag" 7 .2 Estimating VCR ratings 7.2.1 Recording Level Adjustment Method 7 .2.2 Same Day Playback Adjustment Method 7.2.3 Genre/Station Correction Method 7.2.4 Regression Analysis CHAPTER 8. CONCLUSIONS 8.1 Conclusions 8.2 Implications 8.3 Limitations of the Research 8.4 Direction for Future Research REFERENCES APPENDICES Appendix A. Technical Appendix A.1 Calculation of Ratings A.2 Calculation of VCR Rating Contributions A.3 Calculation of Correction Factors Appendix B. VCR Use Appendix C. Viewing lags of Genres Appendix D. Case Numbers Appendix E. Multiple Comparison Tests 68 68 71 75 75 77 78 83 85 85 86 87 88 90 94 95 95 97 98 100 101 102 105 LIST OF TABLES Table 1. Household VCR penetration by country 2 Table 2. Proportion of the sample by age group who view coded and uncoded tapes per day (10 March - 6 April 1996) 11 Table 3. Recording versus playback of programme genres 16 Table 4. Proportion of playbacks across programme genres 17 Table 5. Live viewing and recording shares (all people 5+) 19 Table 6. Proportions of recording minutes across days of the week 22 Table 7. Average daily minutes per VCR home (24 hour basis) 23 Table 8. Average minutes recorded and played back per week in VCR households 28 Table 9. Replay delay of recordings 33 Table 10. Percentage of recordings by elapsed days 34 Table 11. VCR Playback (1/7/91 - 28/7/91) 36 Table 12. Percentage of recordings replayed during diary week by programme type 37 Table 13. Percentage of recordings played back during diary week by recording mode and cable status 38 Table 14. Playing of time shifted material versus pre-recorded material by all panel members per week 46 Table 15. Proportions of time shifted viewing versus pre-recorded viewing by gender 46 Table 16. Proportions of time shifted viewing versus pre-recorded viewing by age groups 47 Table 17. Proportion of television viewing constituted by time shift viewing 48 Table 18. Top VCR rating programmes 51 Table 19. Ratings by programme genres 56 Table 20. Ratings by stations 59 Table 21. Ratings for weekdays versus weekends 64 Table 22. Ratings by day of the week 64 Table 23. Ratings by demographic groups 66 Table 24. Average number of programmes recorded and played back by households per week by programme genres 70 Table 25. Delay between recording and playback over 28 days 72 Table 26. Programme genre recording: playback factors 76 Table 27. Programme genre viewing lag multipliers 77 Table 28. Ratings by programme genres 79 Table 29. Live correction factors: genre by station 81 Table 30. Adjusted genre/station live correction factors 83 Table Bl . Playing of time shifted versus pre-recorded material by age groups 100 Table Cl. Proportion of programmes played back over first seven days by genre (for all programmes replayed over 28 days) 101 Table Dl. Number of programmes in each programme genre 102 Table D2. Number of programmes in each station 102 Table D3. Number of programmes in each day of the week 103 Table D4. Number of programmes viewed predominantly by each gender group 103 Table D5. Number of programmes viewed predominantly by each age group 103 Table D6. Number of programmes: genre by station 104 Table El. Correction factors of programme genres 105 Table E2. Correction factors of sports programmes across stations 105 Table E3. Correction factors of children's programmes across stations 106 Table E4. Correction factors of documentaries across stations 106 Table ES. Correction factors of current affairs across stations 106 Table E6. Correction factors of soap operas across stations 107 LIST OF FIGURES Figure 1. Penetration of the VCR and colour television in New Zealand l Figure 2. Viewing lag of time shifted programmes (July 1991) 5 Figure 3. Live viewing, recording and playback shares by stations in VCR homes (29/7/91 - 4/8/91) 20 Figure 4 . Proportion of hours taped by day part 21 Figure 5 . Playback frequency (minutes 2/9/91 - 22/9/91) 30 Figure 6. Playback frequency of households and children 31 Figure 7. VCR ratings versus live ratings 53 Figure 8. Live ratings across hours of the day 61 Figure 9. VCR ratings across hours of the day 61 Figure 10. VCR rating contributions across hours of the day 62 Figure 11. Cumulative proportions of programmes played back over 28 days by programme genres 74 1 CHAPTER 1. INTRODUCTION 1.1 VCR Penetration New Zealanders have been quick to adopt many new technologies, among them video cassette recorders, or VCRs. Current data suggests that over 75 percent of New Zealand households own a VCR and this is expected to continue slowly rising until nearly all homes with a television also have a VCR (see figure 1). Many households are also acquiring additional VCRs, corresponding with the increase in the number of television sets per home. Figure 1. Penetration of the VCR and colour television in New Zealand "if. C 0 :;:: f! -Q) C Q) ll. '0 0 .c Q) 0 :::J 0 :c 100 90 80 70 60 50 40 30 20 10 0 +--+----+--+---+---+--+--~--+--+---+-----! 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Year -+-TV (owned) -a-VCR (owned) Source: Department of Statistics. NZ household expenditure and income survey section. Compared to other countries, New Zealand has one of the highest levels of VCR penetration in the world (see table 1). The United States has had the fastest adoption rate of VCRs, as it has with many other media products, such as televisions. VCR 2 penetration and viewing trends in New Zealand have generally followed trends of the United States. Table 1. Household VCR penetration by country Country United States United Kingdom New Zealand Japan Irish Republic Sweden Netherlands* France Germany Finland Household VCR penetration % 81 76 75 74 73 72 68 66 63 63 Source: Robbins (1996) and New Zealand Department of Statistics All data 1995 except * 1994 The high level of VCR penetration in New Zealand, almost certainly affects television viewing. This study examines the effect of VCR time shifting on programme audiences, an issue which is of importance to broadcasters and media planners alike. 1.2 VCR Time Shifting VCRs facilitate more flexible television viewing since they allow programmes to be taped, stored and viewed at some future time. This behaviour, known as time shifting, permits viewers to rearrange the programme schedule devised by broadcasters to suit their own lifestyle and to avoid conflicts in programme scheduling. Viewers' enhanced ability to control the time at which they view particular programmes means that more viewers may be watching television programmes. 3 VCR time shifting may increase individual's television viewing levels in three ways: some programmes which might otherwise be missed due to competing activities can be saved on tape; viewers are able to watch two different programmes even though they are broadcast simultaneously; and repeat viewing of the same tape is possible (Levy, 1980; Levy, 1981; Kirk.ham, 1982). To support the claimed increase in television viewing, Levy ( 1981) stated that his findings "strongly suggest that the earliest adopters of home video cassette recorders use their VCRs as a complement to, and not as a replacement for, established patterns of broadcast exposure " (p.405). Some researchers disagree that time shift viewing increases viewing levels and instead claim that time shift viewing appears to substitute normal live viewing hours. For example, Darkow (1984) found that "the time that people with access to a video machine spend in looking at television programmes is the same as that spent by people without videos, although about 16% is time-shifted" (p. 29). Whether time shifting increases total audiences or not is a difficult issue to quantify. It is known, however, that time shift viewing contributes additional viewers to the live audiences of programmes. Therefore, the current system of audience measurement, which delivers overnight ratings, may underestimate real programme audiences. 1.3 Time Shifting and Programme Ratings The validity and accuracy of television programme ratings are critical to media planners and broadcasters alike. Media planners use ratings to select programmes that will satisfy certain reach and frequency objectives which, in tum, contribute to an advertising campaign's overall goals. Broadcasters deliver audiences to advertisers, and base programme scheduling and pricing decisions on ratings data. 4 Television ratings are assumed to provide a measure of the total audience to a broadcast programme; arguably, ratings should, therefore, include both live and time shifted viewing. At present, New Zealand's overnight ratings, collected by AGB McNair, do not include adjustments for time shifted viewing1 • AGB McNair do, however, measure VCR recording and playback, although this behaviour is not incorporated in programme ratings for a number of reasons. The first reason is that the overall effect of time shifting on programme ratings has not yet been clearly established. While some figures suggest that playback constitutes only 2.8 percent of each individual's total viewing hours (Robbins, 1996), other studies have suggested that, for some programmes, time shift viewing may account for a quarter of all household viewing (Mojo, 1994 ). Until the likely size and composition of time shift audiences is more precisely documented, there seems little point in enhancing the software which calculates ratings. The second reason is that ratings are provided overnight, whereas playback of time shifted programmes from the time of taping is usually greater than one day (see Figure 2). To overcome this problem, two sets of data could be released: live ratings within 24 hours, and, after a given period of time, live ratings augmented by VCR playback2 • However, media planners and advertisers often need to make decisions from day to day and viewing data a week or more old may be of little assistance. Alternatively, if stable patterns in time shifting behaviour exist, it may be possible to develop factors which could be used to adjust the overnight ratings and thereby model the likely final audience of programmes. 1. A.C. Nielsen, an American rating service, has included VCR recordings in its ratings since 1978 (Goodman, 1996, email). However, this method overstates the size of the broadcast audience, since some recordings are not played back until after the ratings period, and some recordings are never played back. 2 . TN AGB, the ratings service in the United Kingdom, uses this method, in fact, most of the ratings data that they publish include time shift viewing which takes place within 7 days of recording (Taylor, 1996, email). 5 Figure 2. Viewing lag of time shifted programmes (July 1991) 40% 35% Ill .II: u 30% - 93% 7% of population x 10% time shift viewing =>0.7% For total population: Time shift viewing= 0.7% Live viewing = 99.3% Contribution of non-VCR homes to population viewing: 6.3% 93 % of population x 100% live viewing=> 14 Even though the average time shift audience of programmes is estimated to be much smaller (3%) than the live audience (97%), these generic proportions may mask variations which occur across individual programmes. Recent studies from the United Kingdom have reported that some programmes have very high proportions of time shift viewing, that is, the top twenty VCR rating programmes for November 1995 had VCR ratings ranging from 3.2 percent for Cracker to 1.7 percent for Coronation Street (Robbins, 1996). These ratings are considerably higher than average VCR ratings which are around 0.3 percent. As another example, 2.334 million time shifters watched Wallace and Gromit (an animation) in December 1995 in the United Kingdom; time shift viewers comprised 22 percent of the total audience for the programme (AGB Television, 1995). A recent study in New Zealand found similar results to United Kingdom studies. That is, of programmes that were screened in April 1994, Rain Man (a movie) had the largest time shift audience of 32,863 households which comprised 24 percent of the total audience, and time shift viewing of NBA basketball constituted 21 percent of the household audience (Mojo, 1994). It is unclear from Mojo's (1994) report whether the analysis included all playbacks of tapes by different household members or only the first playback for the household. If all playbacks were included this would inflate the proportion of household time shift viewing, as a programme can only be viewed live once by the household but it can be played back many times by different individuals within the household. Even so, these results and the United Kingdom studies suggest that some programmes have much higher proportions of time shift viewing than others, accounting for thousands of programme viewers. Factors that are believed to influence time shift viewing levels are detailed in the remaining sections of this chapter. 15 2.3 Time Shift Viewing across Programme Genres Overall time shifting appears to make up only a small proportion (3%) of total viewing, however, within certain programme genres time shift viewing has been found to be much higher. In general, movies have the highest levels of time shift viewing, followed by soap operas, dramas, and comedies (Arbitron, 1979; Levy, 1980; Agostino et al, 1980; Levy, 1981; Kirkham, 1982; Byington, 1983; Darkow, 1984; Fiddick, 1984; Singer, 1986; Gunter and Svennevig, 1988; Gunter and Wober, 1989; Mojo, 1994; Robbins, 1996); whereas sports, documentaries, and children's programmes have much lower levels of time shift viewing (Levy, 1980; Kirkham, 1982; Byington, 1983; Darkow, 1984; Fiddick, 1984; Kaplan, 1985; Gunter and Wober, 1989; Robbins, 1996). The researchers which have quantified levels of time shifting across programme genres have used three measures7 : percent of recordings, percent of replays, and VCR contributions to programme ratings. Kirkham (1982) found that the majority of programmes recorded were 'feature films' (45%), while sports programmes were least recorded (3%). Byington (1983) found similar results with movies consisting of 33 percent of recordings, followed by TV series (25%) and soaps (20%); sporting events (2%) and children's programmes (3%) had the lowest levels of recording. Since all recordings are not played back, results based on recordings may give inaccurate levels of time shifting across programme genres - if recordings of some programme genres are more likely to be played back than others. Levy (1980a) found that the genres that were most frequently recorded and played back had very similar proportions of recording and play back. Darkow (1984) reported only "slight differences" between the proportions of recording and playback across programme genres; however, he included playbacks of pre-recorded tapes in the feature films category. Recalculating Darkow's (1984) figures to exclude pre-recordings, decreased the reported proportion of feature 7. Not all of the research referenced in this paragraph has quantified levels of time shifting across programme genres, some have only listed genres with higher and lower levels of time shifting. 16 film playbacks from 61 percent to 38 percent. Darkow's recalculated figures are presented in Table 3. Table 3. Recording versus playback of programme genres Genre Recording Playback1 % % Feature films 50 38 Television series 22 30 Light entertainment 15 17 Information 9 10 S2ort 4 5 Total 100 100 Source: Darkow (1984) 1. Playback figures adjusted to exclude playback of pre-recordings. After recalculating Darkow's figures, feature films still had higher levels of recording and playback than the other programme genres. However, comparing recording to playback (see Table 3), a larger proportion of feature films were recorded than played back, whereas a larger proportion of television series were played back than recorded. Levy and Gunter (1988) also measured both recording and playback of programme genres, but found different results to other studies. Instead of movies having the highest levels of time shifting, US drama series were most likely to be recorded and UK drama series were most likely to be played back. Gunter and Wober (1989) claimed that Levy and Gunter's study found different results to previous studies because their study was based on diary data whereas earlier studies were based on questionnaire surveys. However, this does not seem to be the case as Darkow's (1984) study was based on diary data. There does not seem to be any obvious reason for the different results. Levy and Gunter's ( 1988) study did find that some programme genres were more likely to be recorded than played back, but the genres that this affected were different from Darkow's (1984) study. 17 There is no conclusive evidence that VCR recordings are an inappropriate measure of time shifting across genres, although actual VCR playback is obviously a more realistic measure. Levy (1980) used a diary survey to analyse playback within United States households in 1979 - the results are presented in Table 4. Although his results are almost twenty years old, the programme genre rankings are very similar to those of recent studies (Mojo, 1994; Robbins, 1996)8 , with movies, comedies, and soap operas making up reasonably large proportions of all playbacks. Table 4. Proportion of playbacks across programme genres Programme genre Playback % Movie 23.15 Situation comedies 14.56 Soap operas 11.69 Entertainment series 8.71 Entertainment specials 5.73 "Kids-vid" 5.01 Police / Detective 4.89 News / Public affairs 4.18 Dramatic series 4.18 Talk shows 3.93 Mini-series 3.22 Sports 3.10 Science Fiction 2.63 Miscellaneous 2.37 Unclassifiable 2.65 Source: Levy (1980) Warrens and Thompson ( 1992) also quantified levels of time shifting across programme genres. They calculated the contribution of VCR ratings to total ratings for different 8. These studies did not report the actual proportions of playback across genres, only the most preferred genres. 18 programme genres, a measure which estimates the effect of time shifting on programme ratings. Only a couple of programme genres were reported and some were classified by day part. Daytime dramas had the highest VCR contribution to ratings of 12 percent; that is, 12 percent of the total audience to the average daytime drama was made up of time shifters. Feature films had the next highest VCR contribution of five percent, followed by prime time dramas (3%) and prime time sitcoms (2%). To summarise, some researchers have used recording levels to estimate playback levels ( or time shift viewing) across programme genres. Logically then, playback levels are a more precise measure of variations in time shifting across genres. Playback levels, however, do not explain how variations in genre time shift levels affect programme ratings. To date, only one study has examined VCR rating contributions across a few programme genres. Further research into VCR contributions variations across programme genres is needed to gain an estimate of the omitted viewing audience within current ratings, especially within the movie genre. 2.4 Time Shift Viewing across Stations The television stations on which programmes are broadcast also appears to influence time shift viewing levels. Generally programmes are more likely to be time shifted if they broadcast on stations with high viewing shares (Kirkham, 1982; AGB McNair, 1991; Mojo, 1994; Robbins, 1996). New Zealand has three national free-to-air stations (TVNZl, TVNZ2 and TV3), five Sky TV (pay) stations, and a number of local stations. TVNZl and TVNZ2 have the highest viewing shares, followed by TV3 which is the most recently introduced free-to-air national station; Sky TV and local stations have very low channel shares. A recent study found that 35 percent of recordings were of TVNZl programmes, 37 percent of TVNZ2, 21 percent of TV3, and the remaining seven percent of recordings were of Sky TV and other stations (Jones, 1996). 19 A study by Mojo ( 1994) also compared recording shares across stations and then compared them to current live viewing shares - these results are presented in Table 5. Table 5. Live viewing and recording shares (all people 5+) Station Live viewing Recording % % TVNZl 43 39 TVNZ2 37 39 TV3 18 21 Sky TV / Other 2 2 Source: Mojo (1994) TVNZ 1 had a higher live viewing share than TVNZ2, but they had similar recording shares. The Mojo ( 1994) study suggested that this was due to programme genre effects, for example, movies are one of the most likely genres to be time shifted and TVNZ2 broadcasts more movies than TVNZl. Table 5 shows that Sky TV and the other stations accounted for 2 percent of viewer's recording. Sky Movies was the most likely Sky channel to be taped, which provides further evidence that movies have high time shift viewing levels. In Jones' (1996) later study, the recording share of Sky TV and other stations had increased to seven percent; this coincides with the increase in Sky TV penetration and the increase in the number of local stations within this period. Therefore, the recording shares of Sky TV and other stations may continue to increase as the penetration of these stations increases. Levels of playback across stations seem to be slightly different to levels of recording. AGB McNair (1991) compared live viewing, recording and playback shares across New Zealand's three national free-to-air stations, as shown in Figure 3. Figure 3. Cl) ... a, .c ,,, Cl) ti) .s C Cl) ~ Cl) D. Live viewing, recording and playback shares by station in VCR homes (29/7/91 - 4/8/91) 100% 80% 60% 41% 40% 20% 0% Live viewing 44% 29% Recording Activity 50% Playback DTV3 DTVNZ2 DTVNZ1 Source: AGB McNair (1991) Note: Analysis based on 28 days from recording. 20 The recording and playback shares in Figure 3 both show that stations with larger live audiences also have larger time shift audiences; however, measuring time shifting by recording appears to distort the time shift viewing shares because the stations have different playback rates. TVNZ 1 and TV3 had higher levels of recording than playback compared to TVNZ2, while TVNZ2 had comparatively higher levels of playback than recording. There was also a larger difference between playback shares of TVNZl and TVNZ2 than between the recording shares of these stations. Since stations with higher live audiences also have higher time shift audiences, it seems that the effect of time shift viewing on total audiences may be quite similar between stations. For example, if one station had large audiences of 10,000 live viewers and 1,000 time shift viewers, and another station had small audiences of 100 live viewers and 10 time shift viewers, the contribution of time shift viewing to total viewing for both stations would be the same (10%). To date, research has not compared live and VCR ratings across stations; these details are needed to estimate whether the proportions of programme audiences not included in the current ratings differ across stations. 21 2.5 Time shift Viewing across Times and Days The time of day and day of week that a programme is broadcast may also influence time shift viewing levels. Researchers have examined recording levels across times of the day and days of the week. As previously discussed, recording levels are not the best measure of time shifting, because not all recordings are played back, and playback rates may differ across different times of the day and days of the week. However, considering that there are no studies that have compared playback levels or ratings, recording levels can be used as an estimate of time shifting levels. Recording levels across times of the day generally follow live viewing levels, with the majority of recording occurring at prime time (that is, between approximately 7pm and 11pm, depending on the researcher) (Agostino et al, 1980; Levy, 1980; Metzger, 1986; Mojo, 1994; Robbins, 1996, Jones, 1996). Metzger ( 1986) reported that 52 percent of recorded hours were taped in prime time (see figure 4). Figure 4. Proportion of hours taped by day part Prime (7-11pm) 52% Source: Metzger (1986) Late 10% Weekday/day 24% Weekend/day 14% Furthermore, AGB McNair found that ten percent of homes recorded programmes between 8.15pm and 8.45pm (Mojo, 1994). Jones (1996) found "a definite lunchtime 22 peak with a smaller less defined peak in the morning" during weekdays (p.1). Levy (1980) also found a lunchtime peak on Saturdays. Across days of the week, research has found that weekends rather than weekdays have higher levels of recording (Metzger, 1986; Mojo, 1994). Mojo (1994) found this to be the case on all New Zealand channels. During the weekend, studies have found Sundays to have the highest level of recording (Sims, 1989; AGB McNair, 1991; Jones, 1996). Estimates of recording levels on Saturdays have varied: Sims (1989) found the lowest level of recording for all days of the week occurred on Saturdays, whereas AGB McNair (1991) found Saturdays to have the second highest level of recording (see Table 6). Sims' (1989) results only included prime time recording, which is a probable explanation for the differences in the results. Table 6. Proportions of recording minutes across days of the week Sims AGB McNair Day (1989) (1991) % % Monday 15 13 Tuesday 13 10 Wednesday 12 15 Thursday 14 11 Friday 11 12 Saturday 9 17 Sunday 26 21 Source: Sims (1989) and AGB McNair (1991) Although the majority of time shifted programmes are recorded in prime time and on weekends, it is unknown how many of these recordings are played back. Perhaps programmes recorded on weekdays are more likely to be played back, resulting in higher time shifting levels compared to weekends. Further research is needed to investigate whether different broadcast times and days cause variations in playback levels. 23 2.6 Time Shift Viewing across Demographic Groups Various studies have found that women are more likely to time shift programmes than men (Lindstrom, 1989; Gunter and Wober, 1989; Sims, 1989; Robbins, 1996). Gunter and Wober (1989) found that, on average, women played 1.7 home recordings per week, whereas men played one recording per week. Lindstrom's (1989) study of heavy recording households found that women (aged 18+) taped 69 percent of recordings, while men (aged 18+) recorded 31 percent. Sims (1989) studied a number of demographic groups - his results are presented in Table 7. Table 7. Average daily minutes per VCR home (24 hour basis) Demographic group Men 18+ Women 18+ Teens 12-17 Children 2-11 Source: Sims (1989) Playback minutes 3.4 5.1 3.4 4.3 As well as women playing more home recording minutes than men, Sims ( 1989) also found that children had higher levels of time shifting than men ( aged 18+) and teenagers. Furthermore, Jones (1996) studied playback rates of slightly different age groups, and found that home recorded tapes had "a high likelihood of being watched by those over 50 than those under 17 with I 8-49's being very similar to all 5+" (p.1). The research suggests that women, children, and people aged 50 plus are more likely to time shift programmes. To relate these findings back to variations in the time shift viewing of programmes, further research should investigate whether programmes that are predominantly watched by women, children, or people aged 50 plus have higher VCR ratings. 24 2.7 Summary The research to date has found that, overall, pre-recorded viewing has replaced time shifting as the predominant use of VCRs, and that the extent of time shift viewing is low. However, time shift ratings have been found to be as high as 3.2 and, considering that a high live rating is around 20, it is clear that overnight ratings may underestimate the total viewing audience of some programmes. The extent of this problem remains unquantified because of the limited work undertaken thus far. Although it has been documented that some variables that may lead to higher time shift levels, such as, the programme's genre, the broadcast channel, the time and day of broadcast, and the demographics of the audience, the specific effects of these variables on programme ratings remain less clear. If stable patterns in time shifting behaviour exist, it may be possible to develop factors which could be used to adjust the overnight ratings and thereby model the likely final audience of programmes. 25 CHAPTER 3. MEASURING TIME SHIFT VIEWING Researchers have studied a number of important issues relating to the measurement of time shifting behaviours, namely, whether to use VCR recording or VCR playback to measure time shifting, whether to include the frequency of playback in VCR ratings, and how long it takes for VCR playback to occur from the time of recording. This chapter summarises and discusses the findings that have emerged to date. 3.1 Levels of Recording and Playback Rating companies around the world use either VCR recording or VCR playback to measure time shifting behaviour. Methodologies which document VCR playback, count a programme as time shifted when it is actually played back. Although this is the more logical and direct measure of time shifting behaviour, it can not be included in the overnight ratings. Alternatively, methodologies which document VCR recordings, count a programme as time shifted when it is recorded. As a result, an estimate of time shift viewing can be included in the overnight ratings. However, this method assumes that all recordings are played back; that the correlation between playback and recording is one. Yet research has found that the level of VCR recording is typically much higher than the level of playback (Levy, 1981; Stoessl, 1982; Levy, 1983; Hunt, 1987; Sims, 1989; AGB McNair, 1991; Warrens and Thompson, 1992; Mojo, 1994), thus seriously questioning the validity of VCR recording as a measure of time shifting behaviour. Researchers have used three variables to compare VCR recording and playback: percent of programmes, percent of households, and percent of minutes. This variation in the measures used makes direct comparisons difficult, although overall patterns can be explored. 26 The first measure used by researchers to examine recording and playback levels compared the proportion of programmes; the findings suggest that more programmes are recorded than played back. Levy (1983) estimated that the average VCR household recorded 3.31 programmes a week and played back 2.42 programmes a week, which is equivalent to a 73 percent playback rate. An AGB (UK) survey claimed that "of every JOO programmes recorded, 13 were never played back, or not within the period of the study"' (Fiddick, 1984, p.14). In a more recent study, Mojo (1994) examined nine specific programmes and found that the proportion of playbacks varied across programmes. For example, 64 percent of the recordings of World Around Us were played within 4 weeks, while only 34 percent of the recordings of Rugby - NZ Big Game were played back within this period. As yet, the extent to which playback levels vary across programme genres is not clear. Secondly, researchers have compared the recording and playback levels of households. Levy (1981) analysed the proportion of VCR households that recorded and played back prograrnrnes within one week during 1979. He found that "during the diary week 80.8% of VCR households recorded at least one broadcast ... and 74.7% replayed one or more tapes of previously recorded programmes" (p.402). This finding complements the previously mentioned studies, that is, more broadcasts are recorded than played back (Levy, 1981; Levy, 1983; Fiddick, 1984; Mojo, 1994). Other studies have measured the number of minutes recorded and played back. Research based on minutes is difficult to compare as several factors, which are generally not discussed by the researchers, may influence some results more than others. For example, if the number of minutes recorded is greater than the number of minutes played back, researchers have assumed that not all programmes have been played back, although other evidence relating to viewers' playback behaviour suggests that such differences are almost certainly attributable to fast forwarding (Yorke & Kitchen, 1985; Kaplan, 1985; Papazian, 1986; Reiss, 1986; Metzger, 1986; Gilmore, Secunda & Warrens, 1991; I . Fiddick (1984) did not state the time period of the study. 27 Cronin & Menelly, 1992). In addition, some researchers have included multiple playbacks of a taped programme in their playback estimates, while others have only included the first playback of a programme, ignoring any subsequent playbacks. Studies that excluded multiple replays found more minutes were recorded than played back. A.C. Nielsen drew a convenience sample from their people meter panel, to gain some preliminary insights into panel members' VCR viewing behaviour (Hunt, 1987). The minutes were reported on a household basis and excluded recordings that were viewed live, on the grounds that these were less likely to be played back (as found by Levy (1983)). Hunt's (1987) study found that within 28 days, 57 percent of recorded minutes were played back in the April/May study, and in the July study, only 44 percent of recorded minutes were played back. The difference in these results may be explained by the different seasons; that is, respondents may have spent more time outdoors and less time watching television in July, as July is warmer than April and May in the United States. In a New Zealand study, AGB McNair (1991) compared the number of minutes recorded and played back by VCR households and by individuals in the VCR households. The study found that, on average, individuals recorded 87 minutes in a week but of those minutes only 29 minutes were played back within 28 days, that is, only 33 percent of recorded minutes were played back over 28 days. Similarly, for households only 34 percent of recorded minutes were played back over 20 days. Some of the recorded minutes which were not played back in the study may have been zipped during commercial breaks, even so, there would still be a large proportion of recorded programme minutes not played at all. The previously mentioned studies by A.C. Nielsen and AGB McNair excluded multiple replays, that is, the analyses only included the first playback of recordings, and found that more minutes were recorded than played back. In contrast, other studies have included 28 multiple replays in their results and have found that more minutes are played back than recorded (Metzger, 1986; Lindstrom, 1989). Metzger (1986) reported that, on average, people from VCR households taped 12 minutes and played back 19 minutes of television on weekdays, and during the weekend taped 15 minutes and watched 25 minutes of playbacks per day. He estimated that there are 1.6 hours of playback per one hour of taping. A limitation of his study was that each respondent had to account for the entire family's VCR activity, which may have required a certain amount of guesswork, and thus introduced unquantifiable error to the results (Hunt, 1987). Lindstrom (1989) found similar results to Metzger (1986). He measured the number of minutes recorded and played back between 1985 and 1987, the results are presented in Table 8. Table 8. Average minutes recorded and played back per week in VCR households Year 1985 1986 1987 Minutes recorded 171 172 154 Minutes played back 253 273 258 Playback : recording 1.5:1 1.6: 1 1.7: 1 Source: Lindstrom (1989) The increase in the ratios of playback to recording between 1985 and 1987 seem to suggest that the number of multiple replays per tape are increasing. This raises some interesting questions about the relationship between time shifting behaviour and programme frequency. The frequency of playback and its relation to programme ratings is discussed in more detail in section 3.2. 29 Other researchers have not stated whether they included multiple playbacks or only the first playback of recordings in their analyses. Therefore, it is difficult to interpret the results and compare whether their results support or contradict the previously mentioned studies. These studies are briefly discussed below; all found that more minutes were recorded than played back. Kirkham ( 1982) found that there were four hours and eight minutes of recording per week compared to three hours and 44 minutes of viewing per week, that is, 90 percent of recorded minutes were played back. Kirkham (1982) described very little about his survey methods, it is unclear whether his figures are based on households or individuals or whether multiple playbacks were included. Sims (1989) conducted two studies, one in January and the other in April. He found that, on average, VCR homes devoted 2.4 hours per week to recording in both months. Although, in January, VCR homes played back 1.2 hours per week, and in April, they played back one hour per week. January may have had slightly more hours of playback because it is a colder month and people are more likely to watch television. Warrens and Thompson's (1992) study of A.C. Nielsen data found 1.6 hours of recording and 1.2 hours of playback per week, that is, 76 percent of recorded minutes were played back. Researchers who excluded multiple replays found that many recordings are not played back; this suggests that VCR playback is the more logical and conservative measure of time shifting behaviour. Rating services that use VCR recording to estimate time shifting behaviour may be overestimating time shift audiences by up to 65 percent. Studies that have included multiple replays have found recordings that are played back are often played more than once. This is an important factor to consider when measuring VCR playback. Research has investigated the frequency of playback, the results are presented in the following section. 30 3.2 Frequency of Playback Before VCRs were introduced programmes could only be viewed once, unless the broadcast was repeated. With the introduction of VCRs individuals are able to view broadcasted programmes many times. A number of studies have explored the number of times that home recorded tapes are played back. The following studies, which are based on three different measures, suggest that the majority of tapes are played back only once. Arbitron's (1979) study of early VCR usage, found that of the three most recent recordings, 48 percent were played back once, nine percent were played back twice, five percent were played back three or more times, and 38 percent had not yet been replayed. Metzger (1986) found that the majority (64 percent) of respondents replayed tapes only once, 18 percent twice and 18 percent of people watched tapes three times or more. AGB McNair (1991) investigated the frequency of minutes replayed over 20 days within VCR households, and found that the majority of minutes are replayed only once - the results are presented in Figure 5. Figure 5. Playback frequency (minutes 2/9/91 - 22/9/91) 100% 88% Ill 80% s :::, C e 60% -0 C 0 'f 40% 8. 0 ... 0.. 20% 9% 3% 0% once twice more than three Playback frequency Source: AGB McNair (1991) 31 A.C. Nielsen found that the frequency of playback varied across demographic groups (Hunt, 1987). Specifically, a large majority (90%) of males and females viewed home recorded tapes only once. Compared to adults, children were much more likely to view multiple replays. Figure 6 presents the frequency of playback for children and households (which included all family members). Figure 6. Playback frequency of households and children C 100% ! 90% :!2 :c 80% C, ... 0 70% fll 't, 0 .s::. 60% QI 50% fll ::, 0 40% .s::. 0 30% C 0 t: 20% 8. 10% 0 ... 0. 0% once Source: Hunt (1987), July study twice Playback frequency more than three •Households El Children The accumulated evidence suggests that some home recorded tapes are played back more than once (especially by children). This raises the issue of whether multiple playbacks should be included in VCR ratings. Multiple playbacks increase the frequency of programmes, whereas ratings are a measure of programme reach. AGB McNair, for example, describe ratings as: "a survey estimate of the size of an audience expressed as a percentage of the total group sampled or potential" (p.18). Multiple playbacks of programmes by individuals should, therefore, be discarded from the calculations of VCR ratings, as including them would inflate the actual time shift audience of programmes. It maybe useful for advertisers, if the rating companies also reported the average frequency of programmes, given that multiple playbacks of programmes increase the 32 frequency of advertisement exposure. For example, it was estimated that 19 percent of children who watch a time shifted programme watch it at least three times and, therefore, they may also see the advertisements at least three times, assuming that the advertisements are not zipped or zapped. Another issue to consider in the measurement of VCR ratings is the time period within which recordings are played back. 3.3 The "Viewing Lag" Time shift viewing is not included in overnight ratings, due to the delay between recording and playback, or the viewing lag. Given that the viewing lags of some programmes may be very long, the ratings services need to know the time frame within which the majority of recorded programmes are played back, so that VCR ratings can be released within a reasonably short period of time. To examine average viewing lags, some researchers have studied the proportion of recordings played back over a certain period, while others have limited their study to include only programmes that are actually played back, that is, ignoring recordings that are not played back. The following sections detail the results fro both types of analysis, and then examine factors that appear to influence viewing lags. 3.3.1 Proportion of Recordings Levy (1981) found that "almost 80 percent of all recordings were replayed within the diary week" (p.402). His data was collected from a one week diary survey; it is unclear whether "all recordings" included only recordings made within the diary week or whether he also included recordings made outside the diary period. Levy (1981) also 33 studied the proportion of tapes replayed over other time periods - his results are presented in Table 9. Table 9. Replay delay of recordings Tapes replayed on: Recordings % same day 29.9 day after 29.1 2-3 days after 13.0 4-7 days after 7.6 8-30 days after 9.4 1 month or more 11.0 Total 100.0 Source: Adapted from Levy (1981) The results in table 9 are dubious for a number of reasons. Firstly, replays were measured 8-30 days and 1 month or more after recording, even though the sample period was only one week. Secondly, the results indicate that all recordings were played back, even though previous research has found that many recordings are not played back (Levy, 1981; Levy, 1983; Fiddick, 1984; Hunt, 1987; AGB McNair, 1991; Mojo, 1994). As a possible explanation it seems that Levy's (1981) results were actually based on the proportion of playbacks which occurred over the one week diary period. Obviously his results need further explanation before they can be accurately interpreted and compared to other research. In another study, Levy (1983) estimated that 52.7 percent of all programmes recorded during one week were also played back during the same week. This measure, however, is likely to be influenced by the playback patterns of programmes recorded at the beginning of the week, as these recordings had six days to be played back, whereas recordings at the end of the week had less than one day to be played back. In a later article, Levy and Fink (1984) recalculated Levy's (1983) figures (by averaging the 34 proportion of playbacks for each elapsed day from recording), and found that 58.2 percent of recordings were played back within one week of their broadcast (see Table 10). Table 10. Percentage of recordings by elapsed days Elapsed days Recordings % 0-1 23.8 1-2 19.7 2-3 7.4 3-4 3.2 4-5 2.2 5-6 1.3 6-7 0.6 0-7 58.2 Source: Levy and Fink (1984) Table 10 shows that over seven days the highest proportion of recordings (24%) were played back in less than one day from broadcast, followed by rapidly declining proportions as the number of elapsed days increased. Of the remaining 41.8 percent of programmes not replayed within seven days, Levy and Fink ( 1984) expected that a small proportion would be replayed but most recordings would not be replayed at all. In another study, Robbins (1996) reported that "90 percent of all recorded material is played back, if viewed at all, within the seven-day period" (p.15). Compared to other studies, this estimate seems to be very high; however its accuracy remains unclear as Robbins (1996) did not report the research procedure. Although analysing the proportion of recordings replayed over time provides some insight into time shift viewing lags, the proportion of playbacks is more relevant to the 35 measurement of VCR ratings, as this measure excludes recordings that are not played back, that is, are not time shifted. 3.3.2 Proportion of Playbacks Research which has analysed the proportion of playbacks, estimates that approximately half of all playbacks occur within two days of recording, and a large proportion are played back within one week from recording (Fiddick, 1984; Hunt, 1987, AGB McNair, 1991). Hunt (1987) found that 99 percent of all playbacks were played within one week from recording, with 60 percent of playbacks occurring on the same day or the day after recording. AGB McNair (1991) found that a smaller proportion, that is, 75 percent, of playbacks occurred within one week. AGB McNair (1991) probably found lower proportions of playbacks compared to Hunt (1987), because Hunt's (1987) study was based on recordings played back within 28 days from the day of broadcast, whereas playbacks in the study by AGB McNair (1991) had a longer period to be played back2 • The results of the AGB McNair (1991) study are presented in Table 11. The highest proportion of playbacks were played on the day after recording. 2. In AGB McNair's (1991) study, the introduction ofFingerPrinting technology in New Zealand determined the earliest time that playbacks could have been recorded; see chapter five for details on FingerPrinting technology. 36 Table 11. VCR playback (1/7/91 - 28/7/91) No. of days recorded Percent prior to playback % Same 16 1 35 2-3 15 4-6 9 7-14 7 14-21 3 21 Plus 15 Total 100 Source: AGB McNair (1991) The research suggests that time shift data collected two days after the day of broadcast would include half of all playbacks ( or 60 percent of the playbacks which are recorded and played back within 28 days), whereas waiting until one week after the day of broadcast would include three quarters of all playbacks, ( or 99 percent of playbacks which are recorded and played within 28 days). To report VCR ratings, ratings services must, therefore, make a compromise between the delay in the release of the ratings and the proportion of playbacks included. In the United Kingdom, BARB (the Broadcasting Audience Research Board) define time shifting as "the cumulative audience who view a particular broadcast as video playback within 163 hours of its transmission" (Robbins, 1996, p.15). In this case the release of VCR ratings would be delayed by one week, but the ratings would include a large majority of the time shifted programmes. Research has also found viewing lags to vary across programme genres, recording modes, and household channel availability. These variations may create opportunities for the earlier release of VCR ratings. 37 3.3.3 Variations in Viewing Lags Across programme genres, research has found that soap operas, dramas, and current affairs are played back faster than other genres, whereas movies have longer viewing lags (Levy, 1981; Levy, 1983; Fiddick, 1984; Mojo, 1994). The results of Levy's (1983) study are presented in Table 12. He suggested that movies have longer viewing lags, because they are often recorded and then stored in personal video libraries (Levy, 1983). Table 12. Percentage of recordings replayed during diary week by programme type Programme type Proportion replayed % All programmes 52. 7 Soap operas 81. 7 Dramatic series 77. 3 Situation comedies 61.3 Police/ detective 60.6 Entertainment series 48.9 Sports 47.9 Children's programmes 45.5 Broadcast movies 45.5 Pay-TV movies 33.3 Source: Levy (1983) In another study, Levy (1981) found that 88 percent of soap operas and 50 percent of news and current affair programmes were played back on the day of broadcast, while only 30 percent of all playbacks were played on this day. Considering that such a high proportion of soap operas are played back on the day of broadcast, it is possible that VCR ratings of soap operas could be included in the overnight ratings. Levy and Fink (1984) investigated the viewing lags of daily, weekly and one-shot programmes. Of all recordings played within one week, 79 percent were daily 38 programmes, 59 percent were weekly programmes, and 43 percent were one-shot programmes. As expected, the majority (55%) of daily programmes were played back on the same day of broadcast, while most weekly (25%), and one-shot programmes (18%), were played back on the day after broadcast. As a result, VCR ratings of daily programmes could be reported earlier than the VCR ratings of other programmes. This has potentially important implications for media planners and advertisers, who generally need to make faster decisions on daily programme slots than weekly programme slots. Levy (1983) investigated two other factors that appear to influence viewing lags, namely, the activity of viewers while recording is taking place and the number of channels available in the household. The results are presented in Table 13. Table 13. Percentage of recordings played back during diary week by recording mode and cable status Proportion replayed Recording mode % Unattended recording 56.8 View one, record another 48.0 View and record 34.3 Cable status of household Cable Not cable Source: Levy (1983) 45.4 58.1 The proportions of replays by recording mode seem quite self-evident. Unattended recordings were most likely to be played back within a week, followed by recordings that were taped while another live programme was viewed off-air; in this situation viewers are likely to view their favourite programme off-air and tape their second choice. Recordings that were viewed as they were recorded were least likely to be played back within a week. The proportion of recordings that are not played back in each of the 39 recording modes are likely to confound the viewing lag results, as it seems that "view and record" recordings would have a lower playback rate than "unattended" recordings. Cable households were less likely than non-cable households to replay recordings within the diary week. Levy's (1983) explanation was that cable households have a greater variety and number of programmes to choose from, and that greater choice reduced their need to play back programmes quickly. However, as Levy's (1983) results represent the proportion of all recordings played back, cable homes may, in fact, play back fewer recordings, rather than take longer to play back tapes. The possible implications of Levy's (1983) results are: as the number and variety of stations in New Zealand increase, either the viewing lags of time shift programmes will also increase, or fewer recordings will be played back. 3.4 Summary It is important that researchers who investigate time shift viewing behaviours, or rating companies who report VCR rating are aware of three methodological issues relating to the measurement of time shift viewing. The first of these issues is: given the accumulated evidence suggesting that a large proportion of VCR recordings are not played back, VCR playback is the more logical and conservative measure of time shifting behaviour. Secondly, multiple replays of programmes by individuals should not be included in VCR ratings or other time shift audience measures as they inflate the actual time shift audience. Lastly, since VCR recordings may take months to be played back, a time period of one week seems to be the most satisfactory period to measure VCR playback as research has estimated that approximately three quarters of all playbacks are played within this time. This study investigates these issues further, as discussed in the research objectives in the following chapter. CHAPTER 4. RESEARCH OBJECTIVES AND METHODOLOGY 4.1 Research Objectives 40 The main objectives of this study were to examine the effect of VCR time shifting on television audiences and investigate the measurement of VCR ratings. Research to investigate these issues was carried out in three stages: the first stage examined the extent of time shift viewing in New Zealand, the second stage investigated variations in time shift viewing across a number of variables, and, lastly, the study examined issues relating to the current and future measurement of time shift viewing. 4.1.1 The Extent of Time Shifting The study examined the extent of time shift viewing in New Zealand to ascertain whether it had the potential to greatly affect programme ratings. In particular, the following objectives were explored: • to compare the average weekly viewing of time shifted material to the viewing of pre-recorded material. • to estimate the proportion of average weekly television viewing comprised of time shifted material. The first objective investigated whether the predominant use of VCRs is changing from time shift viewing to pre-recorded viewing. In the early eighties, VCRs were predominantly used to play home recorded material; however, there is increasing evidence that viewers now play a greater proportion of pre-recorded material (Levy, 1980; Levy, 1981; Kirkham, 1982; Stoessl, 1982; Fiddick, 1984; Darkow, 1984; Metzger, 1986; Sims, 1989; Warrens and Thompson, 1992; Mojo, 1994; Jones, 1996). 41 Although this trend is evident in New Zealand, New Zealanders aged 50 plus still watch more home recorded programmes than pre-recorded material (Mojo, 1994; Jones, 1996). This study extends previous research by continuing to monitor the ratio of pre-recorded viewing to home recorded viewing. To understand the implications of the ratio, pre­ recorded viewing levels were compared to live viewing levels. The study also examined whether the ratio varies across age and gender groups. Objective two gives an intimation of the extent of time shift viewing in New Zealand. Recent studies suggest that, on average, time shift viewing makes up two to three percent of a programme's total audience (Sims, 1989; Robbins, 1996; Jones, 1996). This may seem to be only a small proportion of viewing, unlikely to affect overnight ratings substantially; however, these generic proportions appear to mask variations which occur across individual programmes (Mojo, 1994; AGB Television, 1995; Robbins, 1996). This study, therefore, examined the proportion of television viewing constituted by time shift viewing, and how the proportion varies across individual programmes. 4.1.2 Variations in Time Shift Viewing Levels Research has found that time shift viewing levels vary across programme genres, broadcast channels, times and days of broadcast, and the demographics of the audience. The specific effects of these variables on VCR ratings remain less clear; therefore, this study investigated the following objective: • to examine variations in VCR ratings and VCR rating contributions across programme genres, stations, hours of the day, days of the week, and demographic groups. Firstly, this objective investigated the relationship between the variables and variations in VCR ratings. As this study was based on non-experimental data, it was not possible to determine whether the relationships were causal, that is, whether the variables caused variations ·in VCR ratings. Secondly, the study compared variations in VCR rating 42 contributions across each of the variables. VCR rating contributions measure the proportion of a programme's audience which is made up of time shift viewers. If reasonably large variations in VCR rating contributions exist across the variables, correction factors could be developed to include VCR ratings in the overnight ratings. 4.1.3 Measuring Time Shift Viewing The last stage of the study examined the measurement of time shift viewing. This section investigated issues relating to the current measures of time shift viewing, and then explored the possibility of developing other measures. This study examined issues relating to the current calculation of VCR ratings, in order to confirm and extend previous research. The following objectives were investigated: • to compare the average number of programmes recorded per week to the number played back. • to examine the average delay between recording and playback. The first objective investigated how many recorded programmes are played back. Previous research has found that not all recordings are played back; the most conservative estimate was that only 33 percent of recorded minutes are played back over 28 days (AGB McNair, 1991). Consequently, ratings that incorporate VCR recordings as a surrogate for time shift viewing ( or VCR playback), overstate the size of the television audience. To investigate this further, the study compared the average number of programmes recorded and played per week by households, and whether the levels varied across programme genres. The second objective examined how long it takes for VCR recordings to be played back. This has an important role in establishing the period of time before actual VCR ratings 43 can be calculated. The few studies that have investigated this issue have found that a large proportion of video playback occurs within one week of taping; this proportion has ranged from 75 to 99 percent, depending on how many days the recordings had to be played back (Fiddick, 1984; Hunt, 1987, AGB McNair, 1991). As well as calculating the average viewing lag, this study also compared the viewing lags of nine programme genres, as previous research had found that some programme genres are played back faster than others (Levy, 1981; Levy, 1983; Fiddick, 1984; Mojo, 1994). The second part of this section investigated the future measurement of time shift viewing. Previous research suggested that the current methods of calculating VCR ratings are either inaccurate or can not be included in the overnight ratings (see chapter three). To investigate the possibility of improving the accuracy of the overnight ratings, the following objective was explored: • to propose methods of estimating accurate VCR ratings overnight. Research has not previously investigated the potentiality of estimating VCR ratings; this study provided an initial investigation. The methodology used to investigate the research objectives of this study is explained in the following section. 44 4.2 Research Methodology The data used in this study was obtained from AGB McNair's people meter panel, which is able to measure VCR recording and playback through FingerPrinting® technology. In practice this is a small device which is attached to the back of household VCRs; when a household records a programme the video tape is electronically imprinted ( or "finger printed") with the date, time, and channel on a continuous basis. When the programme is played back, the "finger print" is recognised, and the people meter records when playback occurred, the duration of playback, and which member(s) of the household was watching. The panel has a sample size of 440 households, which represents approximately 1200 individuals who are aged five and over1 • Each household's recording activity and each individual's viewing behaviour was studied for a six week period beginning August 26, 1996 and ending October 7, 1996. The study included seven stations: three national free-to-air stations and four Sky TV (pay) stations. A variety of different measures were used to quantify time shifting levels, including hours per week, number of programmes per week, live and VCR ratings, and VCR rating contributions. Live correction factors were also calculated to investigate the possibility of estimating VCR ratings. The calculation of ratings, VCR rating contributions, and live correction factors are detailed in Appendix A. The results of the study are presented and discussed in the following chapters. 1. The sample is stratified by many variables, including region, area type, age of household shopper, household size, and weight of television viewing. 45 CHAPTER 5. THE EXTENT OF TIME SHIFTING: RESULTS AND DISCUSSION The first stage of this study measured the extent of time shift viewing in New Zealand, to ascertain whether it had the potential to greatly affect programme ratings. This involved comparing levels of time shift viewing to pre-recorded viewing levels to monitor the extent that VCRs are used for time shifting (section 5.1). The study also compared levels of time shift viewing and live viewing to examine the proportion of television viewing which is represented by time shift viewing (section 5.2). 5.1 VCR Use: Home Recorded versus Pre-recorded Viewing In the early 1980s, VCRs were predominantly used to play home recorded material, however, there is increasing evidence that viewers now play a greater proportion of pre­ recorded material (Levy, 1980; Levy, 1981; Kirkham, 1982; Stoessl, 1982; Fiddick, 1984; Darkow, 1984; Metzger, 1986; Sims, 1989; Warrens and Thompson, 1992; Mojo, 1994; Jones, 1996). This trend is causing concern to broadcasters and advertisers alike, as pre-recorded tapes contain no advertising and take viewers away from live broadcast audiences. The net consequence of this is that programme and commercial audiences may be diminishing. To investigate the use of VCRs, the total number of hours that all panel members spent viewing time shifted and pre-recorded material per week was calculated; the viewing hours were averaged over six weeks. The results presented in Table 14 are consistent with recent research (Jones, 1996); that is, New Zealanders now spend more time viewing pre-recorded material than they spend viewing time shifted material. Table 14. Material Time shifted Pre-recorded Total Playing of time shifted material versus pre-recorded material by all panel members per week Average hours perweek1 n % 558 756 1314 42 58 100 I. Includes multiple replays of tapes 46 Although the results reported in Table 14 show that viewers watch more pre-recorded than time shifted material, previous studies have found that this pattern varies across demographic groups (Mojo, 1994; Jones, 1996). Tables 15 and 16 explore this issue further. Table 15. Material Time shifted Pre-recorded Total Proportions of time shifted viewing versus pre-recorded viewing by gender Male Female All Hours1 % Hours1 % Hours1 · 2 % 197 37 346 47 558 42 333 63 389 53 756 58 530 100 735 100 1314 100 I. Average viewing hours per week for all panel members, including multiple replays. 2. The average hours for all people are not equal to the sum of the average hours for males and females due to missing cases. Table 15 compares levels of time shifted and pre-recorded viewing by gender. Females tended to use their VCRs to view approximately equal proportions of time shifted material and pre-recorded material, whereas males watched more pre-recorded material. Men and women also differed in the amount of VCR use; that is, compared to males, females viewed more time shifted and pre-recorded material. 47 VCR usage behaviour also varied across age groups. Table 16 shows that, as viewers' got older the proportion of time shift viewing relative to pre-recorded viewing increased. Other New Zealand research has found similar results (Mojo, 1994; Jones, 1996). Table 16. Material Time shifted Pre-recorded Total Proportions of time shifted viewing versus pre-recorded viewing by age groups Age Group 5-19 20-34 35-50 50+ All %1 %1 %1 %1 % 29 36 40 63 43 71 64 60 37 58 100 100 100 100 100 1. The actual number of hours that all panel members in each age group spent viewing time shifted and pre-recorded material per week is presented in Appendix B. Further analysis of time shift viewing by gender within the 50 plus age group revealed that both males and females viewed more time shifted material than pre-recorded material. However, females watched a higher ratio of time shifted material to pre­ recorded material; females also viewed more hours of time shifted and pre-recorded material than males. The results of this study confirm that the aggregate pattern of VCR use obscures variations across demographic groups, providing potentially important information for the study of variations in time shift viewing levels. Tables 15 and 16 suggest that programmes which are predominantly viewed by females or people aged 50 plus may have higher levels of time shift viewing. Thus, it could be hypothesised that one of the influencing variables on VCR ratings is the predominant live audience for a programme. This hypothesis is explored further in section 6.5. 48 Overall, the results of this study are consistent with the patterns reported in earlier studies. In particular, these findings confirmed that the extent of time shifting relative to pre-recorded viewing is decreasing, and that people now use their VCRs to view pre­ recorded material more than they do to view time shifted material. The data do not reveal whether the level of pre-recorded viewing is increasing or decreasing relative to live viewing. However, since pre-recorded viewing is equivalent to only four percent of total viewing1 , it does not appear to be a significant threat to live viewing. This suggests that time shift viewing will also have little influence on live viewing levels. To investigate this further, the following section compares levels of time shift viewing to live viewing levels. 5.2 Time Shift Viewing versus Live Viewing Recent studies have found that two to three percent of a programme's audience is constituted by time shift viewers (Sims, 1989; Robbins, 1996). To explore this issue, time shift viewing proportions were calculated using several measures. Table 17 presents the proportion of television viewing represented by time shift viewing, based on average hours per week and average ratings. Table 17. Proportion of television viewing constituted by time shift viewing Hours per week Excluding multiple replays Viewing n % Time shifted 441 2 Live 17,869 98 Total 18,310 100 I. Average rating for all programmes viewed live. 2. Excluding multiple replays Including multiple replays n % 558 3 17,869 97 18,427 100 Average rating1 % 0.042 2.00 2.04 % 2 98 100 1. Pre-recorded viewing/ total viewing (excluding multiple replays) = 756 hrs / 19066 hrs= 4% 49 Over the sample period of six weeks, panel members viewed, on average, 17,869 live hours of television programmes per week across the seven stations; this is approximately 2.6 hours of viewing daily per individual. This level of viewing appears to be quite high and, in fact, is probably at its highest for the year, considering that the study was conducted in winter. To compare live viewing hours to time shift viewing hours, multiple replays of programmes by individuals may be included or excluded. Including multiple replays reveals the total amount of time that panel members spent time shift viewing, whereas excluding multiple replays is more relevant to media planners as this measure enables calculations of the added audience to live programmes2 . Using the latter measure, panel members viewed 441 hours of time shift material, on average, per week; this is equivalent to four minutes daily per individual. Overall, time shifting accounts for a very small proportion of total viewing hours (2%-3%), even when multiple playbacks are included. The proportion of television viewing constituted by time shift v1ewmg can also be measured by comparing live ratings and time shift (VCR) ratings. This study calculated average ratings for all programmes viewed live over five weeks3 on seven stations. The final column in Table 17 supports the earlier finding, and the results of previous research (Sims, 1989; Jones, 1996; Robbins, 1996), that time shift viewing accounts for only a very small proportion of total viewing. Analysing the ratings over only the three free-to­ air stations produced a higher average live rating of 3.6 percent and a higher average time shift rating of 0.07 percent. However, time shift viewing still only constituted two percent of total viewing. 2. The figures that exclude multiple replays may contain time shifted programmes that were previously viewed by the individual while recording. It was not possible to exclude these programmes with the data available. 3. Analyses of programme ratings are based on five rather than six weeks, because programmes recorded in the sixth week had less than one week to be played back. By excluding week six, recordings had at least one week to be played back, which is the length of time within which a large majority of programmes are played back (Fiddick, 1984; Hunt, 1987; AGB McNair, 1991). so Considering that popular programmes or episodes typically achieve around 20 rating points, the average live rating reported in Table 17 appears to be very low. The majority of programmes in the sample had ratings under 0.5 and only one percent of the programmes had ratings over 20, this appears to be a representative distribution of live ratings for the following reasons. The programmes with ratings around 20 percent typically only appear on the free-to-air stations in prime time. Obviously there are many programmes that do not fall into this category and have much lower ratings . Furthermore, to be included in the analysis, programmes only had to be viewed by one panel member, which was the case for many early morning programmes. The introduction of 24-hour programming on all of the stations studied, except for Sky Movies, is likely to have increased the number of early morning programmes with very low ratings. In addition, the Sky TV stations have lower live audiences than the free-to­ air stations. The average time shift (VCR) rating, reported in Table 17, also seems very low (0.04). In some cases, however, VCR time shifting can increase a programme's live rating by one or two rating points. The implication of this is that these programmes have an additional 35,000 to 70,000 viewers (1 % to 2% of the viewing population) who are not accounted for by live ratings. Table 18 presents the programmes from the sample which had VCR ratings greater than one. 51 Table 18. Top VCR rating programmes Programme Date Start Station Genre VCR Live Total VCR rating time rating rating rating con tri bution2 % % % % Montana ST1 15 Sept 8.40pm TVNZl Drama 2. 1 17.5 19.6 10.6 Free Willy 15 Sept 8.30pm TVNZ2 Movie 2.0 15.2 17.2 11.4 Montana ST1 22 Sept 8.40pm TVNZl Drama 1.5 17.3 18.7 7.8 Cybill 10 Sept 8.30pm TVNZ2 Comedy 1.4 12.8 14.2 10.2 The Topp Twins 5 Sept 7.30pm TV3 Comedy 1.3 13.5 14.8 9.0 Montana ST1 I Sept 8.35pm TVNZI Drama 1.3 21.1 22.4 5.7 Montana ST1 8 Sept 8.35pm TVNZI Drama l.3 19.9 21.1 6.0 Coronation Street 2Oct 7.30pm TVNZI Soap 1.2 17.1 18.3 6.6 Montana ST1 29 Sept 8.40pm TVNZl Drama 1.1 19. l 20.3 5.6 Inside N.Z. 12 Sept 8.30pm TV3 Docume I.I 11.9 13.0 8.4 Indecent Proposal 4 Sept 8.30pm TVNZ2 Movie 1.1 12.5 13.5 7.7 The 3 Musketeers 22 Sept 8.30pm TV3 Movie 1.1 10.0 11.0 9.5 Robin Hood 22 Seet 8.30em TVNZ2 Movie 1.0 10.3 11.3 9.1 I. Montana Sunday Theatre 2. VCR rating contribution = VCR rating/ total rating. VCR rating contributions were calculated from figures with six decimal places. The results in Table 18 suggest that some programmes can have very large time shift audiences. Montana Sunday Theatre achieved the highest VCR rating (2 rating points) when Pride and Prejudice, a six-part drama, screened. Since overnight ratings do not include VCR ratings, approximately 73,500 viewers4 were not included in the rating of this episode. Previous research has also found that some programmes have much higher VCR ratings or time shift audiences than other programmes. For example, in the United Kingdom, Robbins (1995) found VCR ratings as high as 3.2 percent; and AGB Television (1995) found that 2.3 million time shift viewers watched Wallace and Gromit. VCR rating contributions were also computed and presented in Table 18 to examine the proportion of the total audience not included in the overnight ratings. All of the VCR rating contributions in Table 18 were considerably higher than the average VCR rating contribution for all programmes (which was 2%, see Table 17). The highest VCR rating contribution was 11 percent for the movie Free Willy. Programmes with low live ratings can have much higher VCR rating contributions; the highest contribution over the sample period was 92 percent for a comedy, All in the Family, which screened at 5am on 3 4. Time shift viewers = VCR rating x population => 73,500 = 2.1 % x 3,500,000 52 September. Previous research has also found higher VCR rating contributions for particular programmes. The top VCR rating programmes in the studies of AGB television (1995) and Mojo (1994) had VCR rating contributions between 22 and 24 percent. These results confirm that time shift viewing has a greater effect on the total audience of some programmes than others. Further examination of the results in Table 18 revealed that many of the top VCR rating programmes were screened simultaneously. Robbins (1996) found similar results for two of the top twenty VCR rating programmes in November 1995. There do not seem to be any extensive studies on this issue. It seems likely that programme scheduling may have an influence on the VCR rating a programme will achieve. Another interesting pattern in Table 18 is that the top VCR rating programmes all have live ratings of at least ten percent. Simple regression of VCR ratings against live ratings produced an R 2 value of 0.35 (F = 2806, Signif. F < 0.0001), which supports the positive relationship between the two variables: higher live rating programmes had higher VCR ratings by a factor of 1.79. Figure 7 represents these findings graphically. Programmes were sorted by their live rating, and the average live and VCR ratings were calculated for every 250 consecutive prograrnmes5 . 5. Every 250 programmes were chosen to simplify the points on the graph, that is, rather than having 5,310 points representing each programme, means were calculated to produce approximately 20 points. 53 Figure 7. VCR ratings versus live ratings 0.35 0.3 • 0.25 en C :; 0.2 a: a: 0.15 • 0 > 0.1 0.05 ••• • • 0 .,. 0 2 4 6 8 10 12 14 Live Rating Robbins (1996) also found that "programme types which people choose to record automatically follow those programmes which would be most popular for 'live' viewing" (p.15). However, earlier studies by Kirkham (1982) and Mojo (1994) reported that there was little correlation between live audiences and time shift audiences. Kirkham (1982) came to this conclusion after finding that the rank order of the top ten recorded programmes was not exactl