2010 will be a milestone year for digital and entertainment product spending; Apple’s iPad is just the tip of the iceberg, according to our quarterly Digital Life Canada study.

Some of our findings this quarter:

• 57% of Canadian households (7.5 million) will upgrade a major household entertainment product this year – flat-screen HD sets, Windows PCs and Blu-Ray DVD players top the list of upgrades, while HD digital set-top boxes and PVRs are much lower down the list.
• On the ‘personal’ digital product front, wireless devices – especially smartphones – lead the way for new purchases or upgrades, followed by laptops and game consoles. Average Canadian consumer will buy or upgrade 2 devices on average while younger Canadians will upgrade or buy 3.
• Most consumers have heard of the iPad and many are interested but seven-in-ten of those interested would wait for the fall or Xmas season to purchase. Interestingly, many would consisder buying a competing product from Dell, Sony or HP should those companies release slates with similar features at slightly lower price points.
• Consumers’ desire for more digital entertainment hardware is still not translating into paying for more content. A special analysis of iTunes (the only full-featured digital content marketplace available in Canada) suggests that almost 70% browse but not buy – and vast majority of the paid content is relatively low-priced items (individual songs and apps).

Among other notable findings:

• Gaming is mainstreaming further; 46% have played using a console, up 4-points in the past 2 years…
• In households with both PVRs and Video on Demand, PVRs are used much more frequently and preferred 3-to-1 over Video on Demand…
• PCs are increasingly connecting to TVs – among 18-34s, 26% connected their laptops to a large screen TV in the last month…

Technical: These findings come from SRG’s independent Digital Life Canada syndicated study. Digital Life Canada is based on quarterly interviews with 1,000 online Canadians aged 12 and older since 2006. The most recent research was conducted in early Spring 2010. For more information, you can contact us at info@srgnet.com

More Canadians now catch their favourite TV shows online than by personal video recorders and video-on-demand combined.

According to SRG’s most recent quarterly study of Canadians’ digital habits, 50% of online Canadians watched TV online at some point in the past and 25% say they did so in the past week, compared to 13% saying they watched a show on a PVR or cable on-demand (10%) in the past week.

For young Canadians, online TV is where it’s at—PVRs and On-Demand are becoming the technology of their parents’ generation. Twice as many young Canadians use their PCs to watch TV content than PVRs and VOD combined. Among those over the age of 30, however, VOD and PVRs edge out online viewing.

But most online viewing is still catch-up according to research—53% watched online most recently because they missed a show they liked on regular TV. But convenience of online is a strong factor now for 37%.

News still is the big driver to major network TV sites in Canada: 42% of online Canadians say the reason for their last visit to one of globaltv.com, ctv.ca or cbc.ca was to check the news. But visits to watch full TV shows on network sites is getting popular: 23% of visitors to Global go there to stream a full-episode show; 13% of visitors to CTV visit to stream a full show and 9% for CBC.

Among other findings: HD sets, HD Boxes and PVRs each hit milestones in Q4 2009. 6 million households – nearly half of all Canadian households – now have an HD set, doubling from 3 million just over 2 years ago. HD boxes and PVRs hit the 3 million and 2 million household milestones respectively.

Most Canadian consumers believe that the future of TV is on the Internet but they are not about to give up cable or satellite TV yet. Three-in-five believe that all TV shows will be on the Internet someday and a majority says they’d choose the Internet over cable if they had to give one up. But despite these sentiments, only 7% would drop cable if they could get a comparable service from Apple or similar.

Technical: These findings come from SRG’s independent Digital Life Canada syndicated study. Digital Life Canada is based on quarterly interviews with 1,000 online Canadians aged 12 and older since Q4 2006. The Q4 2009 research was conducted in December. For more information, you can contact us at info@srgnet.com

We interviewed 1,000 Canadians coast to coast and asked them if they were interested in an Apple tablet device - the results are in. For a full profile (drum roll), take a look at this (PDF)

Companies looking to monetize their content with online subscription models would be advised to look for additional sources of revenue according to results from the Q3 edition of Digital Life Canada, SRG’s quarterly trend survey.

The research benchmarked consumers’ willingness to pay for various types of content online. Only 14% would pay for newspapers online; TV shows did better at 22%, and books seemed worthy of payment to 29%. Movies had the most potential, with 37% indicating willingness to pay.

Currently paying for online or mobile content is the domain of a minority, the research found. Only 11% of online Canadians actually paid for content online or on mobile in the past month. Even among those who use iTunes or own a smartphone such as an iPhone, only one-in-five paid for content (or an ‘app’) in the past month.

Many consumers believe that they already are ‘paying’ for content and services through their Internet or mobile subscription fees and they say that the “ability to find things that are free without additional fees is one of the great things about the Internet” (77% agree).

In other findings:

• Christmas in High Definition. A flat-screen HD set is only second to ‘clothes’ on Xmas wishlists this year. And among Canadians 30-49, it’s the number one item of desire. With HD set penetration now at 44%, this suggests that we will break the 50% mark by January. Holiday wishlists are a mixed bag this year, with clothes, HD sets, a new car, a digital camera and an iPod in the top five.

• Online TV is Up Again—VoD Not. Online video and TV content continues to trend up. We’ve seen the percentage of online Canadians reporting watching TV episodes online double between Q4 2006 and Q3 2009. And they are generally happy with the video viewing experience. On the other hand, digital cable Video-on-Demand stayed flat with minimal sign of momentum.

• Social Web Becomes a Content Sharing Platform, Including Video. Twitter doubled in audience size in less than a year in Canada. Facebook is flat but our research finds that users continue to remain engaged with the platform. Among the most popular activities social web is video: 38% of Facebook users clicked on a video link in the last week, while 30% of Twitter users did the same. In other words, an estimated 6 million Canadians watched video via a social website in the last week.

• “Most Improved” Companies in Communications include Shaw, Rogers, Videotron and Bell Aliant. On a top-of-mind basis, Shaw took the top spot in the West over Telus. In Ontario, the top spot went to Rogers over Bell. In Quebec, Videotron was #1 while Bell Aliant took the top honours beating Eastlink in Atlantic Canada.

Technical:  These findings come from SRG’s independent Digital Life Canada syndicated study.  Digital Life Canada (follow on Twitter @DigitalLifeCa)  is based on quarterly interviews with 1,000 online Canadians aged 12 and older since Q4 2006. The Q3 2009 research was conducted in October 2009.  For more information, you can contact us at info@srgnet.com

There is no question that broadband, mobile and social media are playing ever-growing roles in women’s lives in both Canada and the U.S.  However, our 2-year research study on Women & Digital Life, first conducted in the U.S. and later replicated in Canada, reveals significant differences between the female populations of the two countries.
Here are some of our headlines.

Canadian Women More Active on Internet, except for Online Shopping, TV
Canadian women are more active online in practically every category, e.g., instant messaging, watching short video, Canadian moms surfing with their kids. The exceptions are online shopping (57% online women in the U.S. vs. 41% in Canada) and viewing TV shows online (22% vs. 14%). In the case of online shopping, there is greater choice in the U.S. and there are more retailers competing for women’s share of spending online. In the case of online TV, American networks have been providing access to their shows online for a longer period of time, plus of course there is no equivalent to Hulu.com in Canada.

Attitudinally, more Canadian women feel the need to “unplug from technology with a book or a magazine” (67% agree) versus American women (56% agree).

The Digital Mom
Canadian moms are using broadband and mobile technology to help them with their parenting tasks as well as to keep themselves and their kids entertained.

Moms in Canada use PVRs and video-on-demand to coordinate children’s TV viewing, although not to the same extent as in the U.S. Over half (53%) play video games with their kids, while 67% surf the web with their children.
While Canadian moms are more likely to surf the Internet with their kids compared to U.S. women (67% vs. 58%), they are less likely to share their mobile phones with their kids (36% do so in Canada versus 55% in the U.S.).

Canadian Women Lag in Mobile Phone Use
In terms of mobile phones, American women are more likely to have them. Nearly one-in five women with a wireless device (18%) has a smartphone in Canada, about the same level as in the U.S. But Canadian women are less likely to use the full functionality of their cellphones. While 52% of Canadian women with a wireless device sent a text message in the last month, the comparable number in the U.S. was 61%. Taking a photo with a cell phone is at 41% vs. 55% in the U.S. And 17% of women play a game using a wireless device in Canada compared to 27% in the U.S. This pattern repeats for most other functions of the wireless device.

One-in-Three Now Play Console Games
Ownership of game consoles and handhelds is similar in both countries (55% of Internet households). And one-in-three women play video games using a handheld or a console. Web/PC game play is only slightly higher in the U.S. In terms of game console use, Wii is #1 in Canada while PS2 is slightly ahead in the U.S. Guitar Hero is the leading game title in the U.S. whereas Wii Fit takes the top position in Canada.

Canadian Women Watch Less TV But Pay More Attention
Canadian women spend less time watching TV than American women overall. And this is reflected in use of and access to digital TV technologies. American women are twice as likely to have used a DVR/PVR to watch a TV show, and weekly cable video-on-demand use is also double that of Canada (24% vs. 12%).

Differences in TV viewing by PVR or VOD also extend to online TV where 22% in the U.S. watched a full-episode TV show online vs. 14% in Canada.

In nearly half of all households (46%), the TV is on “most of the time in the background” even if no one is watching a specific program. Canadian women are lighter TV viewers than American as mentioned before, but pay more attention to their favourite shows.

More Social Online but Not As Bold
Overall, more Canadian women participate in social networking online, thanks to the extraordinary popularity of Facebook. Two-in-three online women have a Facebook profile in Canada compared to 28% in the U.S.

Our research finds that 21% of online women in the U.S. are social media Influencers. In Canada, 14% of online women are classified as Influencers. Influencers belong to multiple social networks and have more friends on average on these networks, including people they only interact with online. Blogging, Twitter and active Facebook use in terms of sharing links and creating groups are some of their defining characteristics. Socials make up 43% of online women in the U.S. compared to 62% of Canadian women. While they are certainly connected, they are not as active as Influencers in their communication within their networks nor do they create content at the same rate as Influencers. The composition of Socials’ networks is concentrated on close friends and family. In short, more women participate in social media in Canada but a smaller proportion exhibit opinion-leading Influencer behaviour.

These are only some of our findings from this extensive study which interviewed over 3,500 women in the U.S. between 2007 and 2009 and 1,000 Canadian women in 2009 in Canada. Subscribers to the Women & Digital Life study in the U.S. include major entertainment brands, cable channels and CE companies. For more information, you can email Donna Hall, Senior Director at dhall@srgnet.com

Consistent with consumer enthusiasm for the “TV Everywhere” concept promoted by Comcast and Time Warner south of the border, nearly 7-in-10 Canadian TV viewers say being able to access their cable channels on the web or mobile is an “excellent” (26%) or “good” (41%) idea.

Among the key findings of the SRG research:

• Web TV may be an important tool to stay relevant for the important 18-49 demographic. Nearly eight-in-ten in this age group say the idea is “excellent” or “good,” compared to under six-in-ten of those 50+.
• There is little difference between the views of customers of major cable and satellite carriers: among Shaw and Videotron customers, 68% like the idea. Among Bell and Rogers customers, 66% and 65%, respectively. These levels are just  slightly lower than SRG’s benchmarks among Comcast (74%) and Time Warner (70%) subscribers as reported in Multichannel News in July 2009.
• The top reasons cited (on an open-ended basis) among those who like this idea were:

“easy, convenient”
“can watch while travelling or outside the home”
“taking full advantage of subscription, what we pay”
“can use PC to watch in rooms with no TV ”
“no worry if I miss a show”

• But there were reservations also. Skepticism about an always-reliable stream was most frequently cited, as well as potential compatibility issues.

In other findings…

• More PCs are paired with TVs:  10% of PCs in Canadian households are connected to a  ‘regular’ TV at least some of the time (up from 7% in 2007) and 9% are at least occasionally paired with a High Definition screen (up from only 3% in 2007). Among those who are not yet connecting their PCs to a TV, 44% say they are interested.
• Blu-ray format showed growth in 2009, with penetration in nearly one-in-five households.  And the consumer experience with 3-D movies in theatres is very positive, suggesting potential for in-home 3-D applications such as 3-D TV.
• Canadian consumer indicators have seen a slight bounceback from  late 2008 and early 2009 lows—and there is more consumer optimism. SRG’s discretionary spending momentum indicator is back in the positive territory now, after being at zero for the last two quarters.

Technical: These findings come from SRG’s independent Digital Life Canada syndicated study. The Q2 2009 research was conducted in late June/early July. Where applicable, results are compared to previous benchmarks.

With laptops breaking the 50% mark among online Canadians and smartphones passing the 20% mark among wireless subscribers, the mobile future is beginning to take shape, according to SRG’s Q1 2009 edition of Digital Life Canada (formerly Fast Forward Quarterly).

When a consumer replaces an old computer, the chances are that replacement is now a laptop given favourable pricing and the sheer convenience of laptops or netbooks with wireless Internet. And, increased competition in the smartphone category and iPhone’s visibility, including today’s announcement of the 3GS model, are helping drive smartphone adoption beyond the business world.

Among other headlines of the Q1 research:

First thing in the morning, two-in-three are online—messaging, social networking—as broadband and social media become routine. Canadian consumers are doing more of everything online—online video and social media trendlines are up, so are content downloads and online shopping. And there is even a slight bump in use of adult entertainment sites in the past few years—some 23% of those 18 and older say they visited an ‘adult entertainment’ website in the past month, up from 20% in late 2006.

Over half (58%) say the way they watch TV is different now than 5 years ago. Consumers talk about high definition screens, PVRs and online as the major change drivers (see this week’s CBC feature on TV). Many also talk about how they now watch with their laptops. And more often than not, a major change in the way a consumer watches TV is due to a change in lifestage, for example, getting married or having children.

The Q1 Digital Life Canada research had a special focus on the impact of the recession. We found that after a sharp decline in Q4 2008, consumer momentum seems to have stabilized but while 48% of Canadians report some direct impact from the recession, 74% already changed their spending patterns. Those who made major cutbacks made them across the board and are focusing spending on needs rather than wants. Simply put, Canadian consumers are more conscious of how they spend their money.

There is detailed analysis of the impact of the recession on communications and entertainment categories ranging from PCs, DVDs and magazines to wireless and cable in the Q1 Digital Life Canada report. The research is  based on 1,000 interviews with Canadians 12 and older at the end of March 2009. For more information, you can email Ross Walton at rwalton@srgnet.com