Music / Entertainment May Be the Antidote to Those Recession Blues

Music / Entertainment May Be the Antidote to Those Recession Blues

NORWALK, Conn., Feb. 9 /PRNewswire/ -- Findings from a just-completed online survey of U.S. consumers by worldwide sports and entertainment marketing firm, Octagon (NYSE:IPG), reveals that consumers of music and entertainment are less likely to perceive that the economic downturn will have a significant personal impact on them and their spending behavior.

When asked how the current economy personally affects them, survey respondents who were actively involved in consuming music and entertainment, were significantly less likely than consumers who were not engaged with music and entertainment to report that the economy will "drastically" impact them. For instance, only 8% of consumers who attend concerts reported a drastic impact compared to 21% of non-concert goers.

Further, the research revealed that a majority of respondents who currently consume music and entertainment-related content on a regular basis claim that the current economy will not materially reduce their future entertainment consumption.

For example:
-- 88% of people who listen to music on a regular basis, plan to listen
to as much or more music next year
-- 72% of people who download music, plan to download as much, if not
more music next year
-- 64% of people who go to the movies, plan to go as much, if not more
next year
-- 63% of concert goers plan to go to as many concerts, if not more next
year

The Octagon research validates other recent polls including an NDP Group study of 2,000 adults, over half of which reported they were least likely to change their spending habits on affordable purchases, including movies. Historically, movie box office grosses rose during five of the last seven economic downturns including the 1970s oil crisis and the dot-com bubble burst.

Chris Monaco, Octagon's Vice President for Music+Entertainment, says consumers are leaning toward in-home entertainment options. "The research verifies that music fans will continue to consume music at significant levels," Monaco said. "Looking at entertainment from a broader perspective to include TV and film, more reasons exist for brands to embed themselves into content consumers enjoy at home."

In addition to the research, positive consumption metrics tracked by Octagon also support a somewhat optimistic outlook for marketers engaging consumers in the music and entertainment space. Octagon Music+Entertainment cited several examples:

-- Film
-- 2008 saw an unprecedented $9.63 billion in estimated movie grosses
-- TV
-- Usage of the 3 screens (TV, Internet and Mobile) continues to grow
with the average American:
-- Watching TV 142 hours per month
-- Online for 27 hours a month
-- Watching mobile video three hours a month
-- TV ad sales posted higher sell-out rates for Q1 of 2009 vs. 2008
-- Homes with DVRs has grown to 27% and is rising
-- Music
-- North America concert revenues have increased every year since
2001
-- 2008 concert touring chart year totaled nearly $4 billion, up
nearly 13% from 2007
-- Digital music sales account for 30% of U.S. music sales and
continue to rise
-- Gaming
-- Video gaming is the fastest-growing division of entertainment,
growing 20% in 2008
-- 72% of the U.S. plays video games, up from 63% in 2007
-- Theme parks
-- Attendance is up 7% in 2008

Octagon Senior Vice President Simon Wardle, head of the company's Insights & Strategy unit, the group that conducted the survey, pointed out that other out-of-home, free-time options may be impacted more severely by the current economy than music and entertainment events. For example, only 50% of survey respondents said they will go out for dinner as much or more this year, while only 55% will shop at malls at the same or greater frequency.

"The data gives a reason for sponsors to feel that their continued investments in music and entertainment to effectively engage consumers is a correct strategy, even in a challenging economy," Wardle said. "While this snapshot does not prove that music and entertainment are recession proof, it does suggest the certainty that, in a recession, consumer passion for music and entertainment will endure...the only uncertainty is how it will manifest itself."

Putting the survey results in perspective, Monaco was encouraged by the inherent passion and optimism shared by consumers who seek out music and entertainment content.

"Even in times of economic stress, we see music and entertainment as great platforms for companies seeking measurable, differentiated and sustainable consumer engagement with consumers who appear to be inherently more optimistic and less likely to have their personal spending habits impacted by global economic issues," Monaco said. He added, "Embedding brands into content can prove to be a valuable component to an overall entertainment marketing strategy."

Octagon, named "Sports Agency of the Year" by Sports Business Journal, is a member of the global advertising and marketing services network Interpublic Group. Octagon employs marketing specialists based in major markets on six continents. For further information please visit: www.octagon.com.

Source: Octagon

CONTACT: Chris Monaco, Vice President Octagon Music+Entertainment,
+1-310-854-8379 or +1-323-791-6196 (cell) chris.monaco@octagon.com; or Simon
Wardle, Senior Vice President, Insights & Strategy, Octagon Marketing,
+1-203-354-7417, simon.wardle@octagon.com

Web Site: http://www.octagon.com/

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