Ericsson ConsumerLab, annual TV & Media report 2015 - Presentation
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http://www.ericsson.com/consumberlab This report looks at the rapidly changing consumer habits and expectations such as the increase of on demand video viewing as well as growing importance of anywhere access. The TV landscape is changing. New TV and media services are enabling consumers to decide what they want to watch and combine their own pick-and-mix solutions. This disruption puts the empowered user at the center. To remain relevant, service providers need to remain on their toes.
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Ericsson ConsumerLab, annual TV & Media report 2015 - Presentation
- 1. The empowered TV & media consumerâs influence Ericsson ConsumerLab Anders Erlandsson, Senior Advisor Zeynep Ahmet, Senior Advisor Tv & Media 2015
- 2. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 2 Ericsson ConsumerLab annual research 1.1 billion REPRESENTING PEOPLE 100,000 RESPONDENTS 15 STUDIED MEGACITIES 40 MORE THAN COUNTRIES
- 3. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 3 Representing ~680 million Consumers Qualitative: 30 in-depth interviews (San Francisco, Mexico City, Paris & Stockholm) Quantitative: 20 000 online interviews (1000/country) age 16-59 + booster >2500 online interviews age 60-69 Base 20 Markets: Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US Source: Ericsson ConsumerLab TV & Media 2015 Study Qualitative and quantitative Quantitative 14500 measured android smartphone users 8 industry expert interviews Social media scanning 6th ANNUAL TV and media study
- 4. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 4 Half of viewing time is TV series & movies Family movies. More than series, family movies, funny movies. Sometimes I like to mix, start with children movies and then go on with action movies and closing with a funny movie to go to sleep happy.â - Veronica, 40 years, Mexico Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US 30 hours per week is the average weekly active viewing time Average number of self-reported weekly hours of active TV/video viewing, by gender:
- 5. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 5 2011 2015 Streamed on demand movies Streamed on demand movies Streamed on demand TV Series & programs Streamed on demand TV Series Streamed on demand TV programs 90% increase 121% increase 2,9 h/week 6,0 h/week 45% of streamed on demand viewing of long content is TV series TV Series is the new black Average number of self reported weekly hours of active TV/video viewing: Source: Ericsson ConsumerLab TV & Media 2011 & 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, China, Germany, Spain, South Korea, Sweden, Taiwan, UK, US The world of series is so, so huge now, thereâs so many of them. And thatâs taken over from normal films from cinema.â - Anne, 38 years, France
- 6. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 6 1,9 2,3 2,7 3,0 3,8 16 - 24 25 - 34 35 - 44 45 - 59 60-69 Seniors love their Live News Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: Population aged 16-69 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US Average nr of self reported hours watching live news per week per age group >80% higher average viewing time of live news for 60-69 year olds, than for millennials (those aged 16-34)
- 7. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 7 8% 3% 33% 24% 34% 32% 19% 28% 5% 13% 2015 2011 >3 hours/day At least daily At least weekly Less than weekly Never YouTube Grows in importance Percentage of consumers watching YouTube with different frequency [global self reported frequency of viewing] Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, China, Germany, Spain, South Korea, Sweden, Taiwan, UK, US âMy wife fixed our iPad and our dishwasher by watching YouTube instruction videos. If a nuclear reactor started leaking, she would go to YouTube and then volunteer to fix it.â - Simon, 44 years, USA 30% Watch how-to videos each week 18% Watch gaming videos each week
- 8. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 8 THE Role of services varies BETWEEN generations S-VOD T-VOD / PPV DVR DVD/Blu-ray S-VOD Piracy YouTube Play/catch-up Linear TV YouTube Play/catch-up DVR Linear TV Secondary servicesOldergenerations Youngergenerations Go-to services Television is most important. And YouTube.â Colette, 61 years old, France
- 9. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 9 Daily Media habits Percentage of people watching different media types at least once per day** (global average of self reported frequency of viewing) Scheduled linear TV Streamed on demand video (YouTube, short clips, movies, TV-series & programs)Recorded linear TV Source: Ericsson ConsumerLab TV & Media 2010-2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil*, China, Germany, Spain, South Korea*, Sweden, Taiwan, UK, US, * excluded in 2010 figures, ** 3 years moving average Œ, œ, Œ [Showing: Use once per day or more] 0% 25% 50% 75% 100% 2010 2011 2012 2013 2014 2015 ~8 IN 10 Teenagers watch streamed on demand TV and video at least once per day ~8 IN 10 60-69 year olds watch scheduled linear TV at least once per day
- 10. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 10 S-VOD drives Binge Viewing 87% of S-VOD users binge view at least once per week, compared to 74% of non- SVOD users 47% 74% 81% 60% 87% 93% Binge view at least once per day Binge view at least once per week Binge view at least once every 2nd week S-VOD Users non S-VOD users Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US Self reported frequency of watching several TV series, other TV programs or user generated content (UGC) episodes in a row (so called binge viewing) >50% binge daily 5% never binge
- 11. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 11 âș Content drives viewing habits âș Popular content has a higher influence âș TV series that release all of a seasonâs episodes at once are popular and drive S-VOD subscriptions Different viewing cycles Over 3,000 people tweeted that they had finished the entire season within 4 days Mentions of watching all 13 episodes of âHouse of Cardsâ Source: Ericsson ConsumerLab TV and media 2015 [Social media scanning, Twitter.com] 0 500 1 000 1 500 12-feb-15 17-feb-15 22-feb-15 27-feb-15 04-mar-15 09-mar-15 Posts âGame of Thronesâ related tweets over 30 days Launched 0 100000 200000 300000 400000 13-apr-05 18-apr-05 23-apr-05 28-apr-05 03-maj-05 08-maj-05
- 12. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 12 On-demand Frequency US Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: US Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly >50% of the studied US population use Netflix at least once a week 41% 27% 6% 8% 5% 4% 4% 5% 1% 3% 4% 3% 2% 2% 1% 1% 71% 52% 19% 19% 13% 12% 9% 9% 9% 8% 6% 6% 5% 3% 2% 2% YouTube Netflix Amazon Prime Hulu HBO Go/HBO Now ABC.com Apple iTunes Xfinity On- demand Crackle Vevo U-verse On- demand Twitch Vudu FiOS on demand Pirate streaming Pirate File sharing At least daily At least weekly Percent of people using each on-demand service on a daily vs. weekly basis, US 2015 [self-reported]
- 13. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 13 Connected TV Screens 12% 11% 14% 14% 12% 17% 21% 23% Wii, Xbox, PlayStation Other Separate box for online TV/video access Google Chromecast Apple TV Percentage of consumers that have and use each device [Self-reported]: Percentage of consumers that do not have, but plan to get each device [Self-reported]: Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US 8 67% are able to watch internet content on their TV screens at home, and⊠89% of these feel they can access all or most apps and services they want!
- 14. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 14 0% 25% 50% 75% 100% 2010 2011 2012 2013 2014 2015 TV screen Desktop screen Laptop screen Smartphone screen Tablet screen A shift from Fixed to mobile Devices BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil*, China, Germany, South Korea*, Spain, Sweden, Taiwan, UK and US. * excluded. in 2010 figures, ** 3 years moving average Œ, œ, Œ Self-reported share of total weekly TV/video viewing time, per year, done on respective device ** TV screen & desktop Smartphone, tablet & laptop TV screen & desktop Smartphone, tablet & laptop Source: Ericsson ConsumerLab TV & Media 2010-2015 Study 61% of consumers watch TV & video on their smartphones, an increase of 71% since 2012 42%think it is very important to watch their TV and Video content wherever they are
- 15. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 15 Smartphone video viewing 78% 86% 93% UK US South Korea Proportion of smartphone users who watch video content on their smartphone, ODM measurements âș Majority of smartphone users watch some or the other video content on their smartphone âș The phenomenon is typically dominant in South Korea where smartphone is the way of life among its users Base: Android smartphone users in US, UK and South Korea Source: Ericsson ConsumerLab TV & Media 2015 Study, [ConsumerLab Analytical Platform, On-device metering data]
- 16. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 16 A CHANGE IN ACCESSING TV CONTENT 57% 72% 75% 74% 78% Jan 2014 Apr 2014 Jul 2014 Oct 2014 Jan 2015 Quarterly measurements of smartphone users in the US who access TV apps (such as ABC, HBO GO, CBS Mobile) at least once on their smartphones âș TV content is being increasingly accessed via smartphones, and its reach has grown significantly over the past year Base: US, Users accessing Entertainment TV content online via smartphones Source: Ericsson ConsumerLab TV and media 2015 [comScore MobileMetrix Jan 2015]
- 17. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 17 Millennials = Mobile Device viewing BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil*, China, Germany, South Korea*, Spain, Sweden, Taiwan, UK and US. * excluded. in 2010 figures, ** 3 years moving average Œ, œ, Œ Self-reported share of total weekly TV/video viewing time by age group, done on respective device ** TV screen & desktop Smartphone, tablet & laptop TV screen & desktop Smartphone, tablet & laptop 0% 25% 50% 75% 100% 16-19 20-24 25-34 35-44 45-59 TV screen Desktop screen Laptop screen Smartphone screen Tablet screen Source: Ericsson ConsumerLab TV & Media 2010-2015 Study >60% of all TV/video viewing hours are spent on a mobile device screen among Youngsters
- 18. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 18 millennials use the Smartphone too 375 292 200 164 71 54 404 448 368 284 141 101 48% 39% 35% 37% 33% 35% 20% 25% 30% 35% 40% 45% 50% 55% 60% 0 50 100 150 200 250 300 350 400 450 500 18-24 25-34 35-44 45-54 55-64 65+ Smartphones Tablets Share of time on Smartphone Measured average minutes per visitor and month as well as Share of Time by Age Groups â Entertainment Multimedia* *Entertainment âMultimedia category in comScore encompasses all paid and free on-demand video services Base: Users accessing Ent-Multimedia content online via smartphones and tablets âș Entertainment-Multimedia services are accessed more by younger consumers on mobile devices âș Though more time is spent on tablets across age groups, share of time on smartphone is higher for younger consumers Source: Ericsson ConsumerLab TV & Media 2015 Study [comScore MobileMetrix Jan 2015]
- 19. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 19 UGC Still dominate mobile viewing Mobile viewing is set to change due to the rapid growth of S-VOD Percent of consumers that watch each content type on the Smartphone [self-reported] 4% 4% 5% 6% 6% 6% 7% 8% 8% 9% 11% 33% Scheduled other TV programs Live events Scheduled TV Movies Streamed, On-demand other TV programs Scheduled TV series Live sports Recorded content Streamed, On-demand TV series Streamed, On-demand movies Live news Downloaded content Videos made by other consumers 9% 14% 16% 17% 17% 29% 29% 38% 40% 42% 49% 52% Streamed, On-demand other TV programs Video made by other consumers Streamed, On-demand TV series Streamed, On-demand movies Live events Downloaded content Live sports Recorded content Scheduled other TV programs Live news Scheduled TV-series Scheduled TV Movies Percent of consumers that watch each content type on the TV Screen [Self-reported] BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, South Korea, Spain, Sweden, Taiwan, Turkey, UK, Ukraine and US Source: Ericsson ConsumerLab TV & Media 2015 Study
- 20. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 20 Smartphone and tablet on equal footing in terms of short video 202 252 273 588 Youtube Netflix Measured average minutes per visitor and month on On-Demand/Streaming Services [Smartphone Vs. Tablets] Base: Users accessing YouTube and Netflix via smartphones or tablets respectively âș Tablets and smartphone are equally preferred for watching shorter video content âș However, Tablets are preferred for watching longer format content like Netflix Source: Ericsson ConsumerLab TV & Media 2015 Study [comScore MobileMetrix Jan 2015] Tablets Smartphones Smartphones Tablets
- 21. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 21 Coping strategies âș Upgrade to unlimited data plans âș Look for Wi-Fi everywhere âș Watch offline/downloaded content Seamlessness expected Regular commuters Long- distance commuters Need a seamless internet connection International travelers During international stay Source: Ericsson ConsumerLab TV and media 2015 [social media scanning, Twitter.com] âThere better be Wi-Fi on my flight... can't cope with 13 hours without @Netflix.â #Netflix #HolidaysFollow âLiterally on the longest bus ride and my 3G keeps cutting out so I canât watch @Netflixâ #Netflix #TravelingFollow
- 22. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 22 43% 57% 33% 37% 74% 29% 33% 22% 49% 87% 73% 19% 45% 6% 8% 64% 7% 8% 5% 16% 96% 46% Weekly Viewing Situations In bed before getting up At home during the morning While commuting At workplace or school At home during the day Out and about in the city Sitting at e.g. a cafĂ© At events At friendsâ or relativesâ homes At home during the evening In bed before falling asleep 16-19 20-24 25-34 35-44 45-59 60-69 Base: Population aged 16â69 with broadband at home who watch any type of TV/video at least weekly in in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US Source: Ericsson ConsumerLab TV & Media 2015 Study Percentage of consumers that on a weekly basis watch any type of TV/video content in different situations, comparison across age groups [Self-reported]:
- 23. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 23 16% 24% 6%21% 31% 2% At least daily Weekly Monthly Less often Never Donât know Place- and device shifting grows 21% increase in place- and device shifting since last year 52% amongst S-VOD users place- and device shift! AT HOME COMMUTING AT WORK INTERNET CAFĂ Self-reported frequency of watching a specific TV program, show or movie on one device, interrupt or pause it and then continue watching it on another device: Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, China, Germany, Spain, South Korea, Sweden, Taiwan, UK, US 40% at least once per week
- 24. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 24 71% 80% 88% 29% 20% 12% US South Korea UK Wi-Fi data consumption Cellular (Mobile) data consumption Network impact from video usage Measured proportion of Wi-Fi vs Cellular data being used for TV and Video apps amongst smartphone video viewers Base: Android users that watch video content on their smartphones Source: Ericsson ConsumerLab TV & Media 2015 Study [ConsumerLab Analytical Platform, On-device metering data] Measured cellular (mobile) data usage ratio for TV and Video apps amongst smartphone video viewers with 3G vs 4G connections: 2,5 4 3 US South Korea UK X more data4G users 3G 4G users 3G 4G users 3G X more data X more data
- 25. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 25 Piracy can be beaten Percent of people using each on-demand service, Spain 2011 vs 2015 Source: Ericsson ConsumerLab TV & Media 2014-2015 Study BASE: US and Spain Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly 2%3% 14% 25%26%29% 42% 58% 92% 8% 0% 13% 30% 9% 15% 24% 30% 84% 2015 2011 Percent of people using each on-demand service, US 2011 vs 2015 96% 25%25%22%19%18%16%14%10%7%5%2% 84% 29%32% 9%4%5%2% 2015 2011
- 26. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 26 The decision processes Source: Ericsson ConsumerLab TV & Media 2015 Study
- 27. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 27 Today, most consumers receive constant TV and video recommendations from friends, reviews, etc. This means that the challenge is not necessarily just discovering content, but remembering what to look for at the moment of viewing. DISCOVERING AND REMEMBERING CONTENT Source: Ericsson ConsumerLab TV and media 2015 A recommendation engine should evolve to include influences the consumer has had outside of the service The content discovery process throughout a day Social recommendations Influencers, reviews, trailers etc.
- 28. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 28 Challenges with current Recommendation features Personal recommendation The fact that some Netflix recommendations may be so accurate, leaves the subscriber in shock and almost generates a feel of a breach in privacy Shared accounts Consumers unhappy with inappropriate recommendations, is often the result of shared accounts and profiles with family and friends Unrelated recommendations Some consumers blame the provider for bad delivery of recommendations, since they are unable themselves to understand why they receive it Source: Ericsson ConsumerLab TV & Media 2015 Study [Social Media scanning, Twitter.com] âNetflixâs suggestion of category based on my viewing âViolent Supernatural Movies from 1980sâ. What does that say about me?â #RecommendedFollow âNo, netflix, I donât want recommendation based on Merlin, Iâm already watching thatâ #Privacy #NetflixFollow âI opened up my Hulu app and look at ââShows you watchâ tab, was confused until I remembered I share the accountâ #Privacy #HuluFollow
- 29. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 29 Recommendation engines fail today âș Recommendation engines are not perceived as smart enough when recommended titles have already been watched, are seemingly relevant, that are too obvious or appear completely weird and un-related âș Personal recommendations are not perceived as personal but rather relatively general âș Similar recommendations keep recurring over and over again âș The recommendations fail to surprise and inspire âș Social recommendations are perceived as more useful and reliable Itâs like 1 in 10 recommendations that you get on Netflix thatâs actually relevant for you⊠- Johan, 38 years, Sweden But also people do post like if they're into like new shows and stuff like that. They'll be like oh my God this episode is crazy. And I do trust those. I got into new genres through that.â - Melinda, 28 years, USA Source: Ericsson ConsumerLab TV & Media 2015 Study
- 30. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 30 Consumers âdefaultâ when finding content is too difficult The consumer stated frequency of difficulty in finding something to watch on their traditional broadcast TV service: 10% 7% 28% 19% 31% Less often Once per week Several times per week Once per day Several times per day Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US 50% canât find anything to watch at least once every day IDEA OF VIEWING ACTUAL VIEWING DAY 1 ACTUAL VIEWING DAY 2
- 31. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 31 The guided consumer in traditional broadcast TV The greatest influences for consumers in deciding what to watch on their broadcast TV service: 6% 7% 18% 29% 40% Recommendations based on what others who watched this have also watched User ratings â Look at how other users have rated movies, TV-series Recommendations from friends and family Advertisements (trailers) for TV programs Browsing through the titles in the TV-guide within the service Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US Consumersâ perception of the ease of navigating in their broadcast TV service [Self-reported]: 2% 6% 26% 26% 32% I find it very difficult to navigate and find content I find it difficult to navigate and find content I find it neither easy nor difficult to navigate and find content I find it very easy to navigate and find content I find it easy to navigate and find content Only 29% of broadcast TV viewers are satisfied with the quality and level of detail in their current TV guide
- 32. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 32 Reliance on aid for content discovery 36% 25% 23% 16% 7% 5% Netflix Users Overall TV Video Users Netflix Users Overall TV Video Users Netflix Users Overall TV Video Users IMDBFandangoMoviefone Base: 18+ Smartphone Users who visit Netflix or consume TV/Video via their Smartphones (Browser or App) Source: Ericsson ConsumerLab TV & Media 2015 Study [comScore MobileMetrix Jan 2015] Netflix users are more likely to be dependent on content discovery sites Measured percentage of smartphone users that watch Netflix or watch TV video on their smartphones and access different content discovery sites:
- 33. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 33 THE PRICE OF PERSONAL INFORMATION 1 in 4 TV/video consumers are open to providing personal data to get more accurate recommendations Percentage of consumers who are interested in different recommendation features for content and TV services (self-reported) Base: Population aged 16â59 with broadband at home who watch any type of TV/video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US 32% 32% 31% 22% Personalized TV service offering based on own viewing habits Personalized content recommendation based on own ratings of previously watched content Personalized content recommendation based on own viewing habits, age, gender and zip code Content recommendations that are not based on any personal information âș OK with out-of-service behavioral tracking âș Actively provide personal information âș OK with in-service behavioral tracking âș OK with providing preferences when opting into the service Source: Ericsson ConsumerLab TV & Media 2015 Study
- 34. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 34 20% 53% 27% 29% 48% 23% I am very uncomfortable Indifferent I am very comfortable Age 35+ Millennials (age 16-34) Enough Trust to provide personal data Comfort level for consumers with regards to information tracking about behaviors and preferences , in order to receive an improved viewing experience [Self-reported]: 1 in 2 consumers trust that their current TV service provider handles their personal data securely and responsibly Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US Millennials have the highest acceptance to providing personal information to improve recommendations
- 35. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 35 7% 17% 10% 15% 40% 11% 8% 17% 9% 14% 37% 15% Cord cutting remains the same Cord-cutters over a year ago Those who once paid for managed TV but eliminated spending over 12 months ago Cord-cutters past 12 month Those who once paid for managed TV but eliminated spending last year Cord-shavers past 12 month Managed TV subscribers who have decreased spending Cord-nevers Those who have never paid for managed TV Corders â unchanged past 12 month Managed TV subscribers who have not changed spending Corders â increased past 12 month Managed TV subscribers who have increased spending Self-reported changes in household spending on managed TV services, in the past 12 months, 2014 answers compared to 2015: 20152014 Base: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, China, Germany, Spain, South Korea, Sweden, Taiwan, UK, US Source: Ericsson ConsumerLab TV & Media 2014 & 2015 Study
- 36. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 36 11% 11% 16% 17% 33% 47% Paying for using other TV/Video internet services instead (e.g. Netflix, Amazon Prime) I'm not satisfied with how our managed TV-service works No package suits me, I canât customize my own package Using other free TV/Video internet services instead (e.g. Hulu, YouTube) Do not watch enough TV to justify the cost Wanted or needed to save money reasons to reduce or cut Self-reported changes in household spending on managed TV, in the past 12 months: Reasons to eliminate the household managed TV package: BASE left graph: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, China, Germany, Spain, South Korea, Sweden, Taiwan, UK, US BASE right graph: : Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly, and have reduced or eliminated their managed TV package in Brazil, China, Germany, Spain, South Korea, Sweden, Taiwan, UK, US Source: Ericsson ConsumerLab TV & Media 2015 Study 8% 17% 9% 14% 37% 15% Cord-cutters over a year ago Cord-cutters past 12 month Cord-shavers past 12 month Cord-nevers Corders â unchanged past 12 month Corders â increased past 12 month 2015
- 37. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 37 âș An exploding number of options are available to viewers who want to ditch their traditional TV subscriptions but not forsake their television-watching habits âș With a broadband subscription and a streaming device, people have more freedom to pay for what they want to watch and decide how they want to watch it Cord Cutting - An easy choice Source: Ericsson ConsumerLab TV and media 2015 [Social media scanning, Twitter.com] âApple TV is worth every penny. Makes cord-cutting so easy!!â #AppleTVFollow âI'll ditch cable if Apple releases a TV streaming service. Might consider Sling TV, @Hulu and @Netflix too!â #Apple #SlingTv #Netflix âDecided that TV isn't important. Iâm cutting the cord! Can you send me your Netflix password?â #Netflix Follow Follow
- 38. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 38 No clear value for cord nevers Reasons for never paying a managed TV service: 6% 6% 15% 18% 21% 58% There is too much advertising on managed TV My living situation doesnât allow me to have a managed TV service I get all the TV and video content I need from different other services (e.g. Netflix, YouTube) I feel a managed TV service is not worth the cost I canât afford a managed TV service I have not felt the need to have a managed TV service Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US [those who have never paid for a managed TV service] REASONS TO AVOID âș TV providers give little value for money âș Save money âș Limited habits of viewing linear TV âș Linear TV can easily become a time thief in everyday life âș OTT services are readily available âș Weariness with TV advertising
- 39. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 39 Continuing without A cord BARRIERS TO PAYING FOR MANAGED TV Percentage of cord-nevers that may or may not pay for traditional managed TV services in the future [Self-reported]: Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US [those who have never paid for a managed TV service] 50% 34% 16% âș OTT on demand services already cater to core needs âș Managed TV feels redundant âș Limited perceived value in increased TV and video viewing âș More value for money with OTT options âș No acceptance to having binding contracts No Donât know Yes
- 40. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 40 Cord nevers consume less Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US
- 41. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 41 29% 37% 15% 19% 43% 15% 12% 8% 18% 75% 56% In comparison with managed TV consumers, on a daily basis cord-nevers: âș Spend one hour less watching scheduled broadcast movies, series and other programs, as well as live content âș Spend less time viewing downloaded or streamed on-demand series, movies and other programs âș Watch YouTube clips almost as often The habits of Cord-nevers In bed before getting up At home during the morning While commuting At workplace or school At home during the day Out and about in the city Sitting at e.g. a cafĂ© At events At friendsâ or relativesâ homes At home during the evening In bed before falling asleep Cord-cutters over a year ago Cord-shavers past 12 months Cord-cutters past 12 months Corders â unchanged past 12 months Cord-nevers Corders â increased past 12 months Base: Population aged 16â59 with broadband at home who watch any type of TV/video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US Source: Ericsson ConsumerLab TV & Media 2015 Study
- 42. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 42 ADDING NEW SERVICES âș When managed TV is not an option, consumers actively search for other services that can cater to their needs, therefore, their devices may contain numerous apps and services PROMINENT Cord-Cutter habits TABLETS RULE âș More convenient than laptops âș Larger screen than smartphones âș Easy to move around âș Fewer distractions that interrupt viewing NEW NEWS CHANNELS Facebook âș Get updates from their network and watch videos Twitter âș Follow those who post news and watch news clips YouTube âș Watching highlights on YouTube Source: Ericsson ConsumerLab TV and media 2015 âI only watch @HBO Now movies. What's regular TV?â #HBO Follow âA cord-cutterâs dream: Tivo Roamio + Sling TV. Make it happen!â #TivoRoamio #SlingTV #CordCutting Follow
- 43. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 43 Even though managed TV is up for negotiation in many households, there are a number of arguments to keep it. Rationales for keeping the cord Old habits die hard An easy option for relaxation Best for background viewing Spoilers in social media Still a household campfire Socially rewarding experience Live content Premiere viewing Source: Ericsson ConsumerLab TV and media 2015 © Ericsson AB 2015 | TV and media 2015 | 2015-07-20 | Page 43
- 44. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 44 28% 35% 40%41%42% 45% 48%48% 55% 19% 29% 26% 39% 45% 36% 45% 41% 52% Interactive TVDubbed AudioMy TV-/Video content anywhere 4K/UHD qualityà la carte TV-/video package Theatrical releasesFree from ads/commercials Time shift/On demand HD quality 2015 2011 importance of TV Media features- TRENDS Percentage of consumers that say each TV Media feature is important (Showing top 2 answers on 7-graded scale): Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, China, Germany, Spain, South Korea, Sweden, Taiwan, UK, US [Interest, top 2 answers on 7-graded scale]
- 45. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 45 34% 27% 31% 27% 25% 30% 8% 10% 7% 34% 30% 26% 25% 23% 23% 20% 13% 11% HD quality Free from ads/commercials 4K / UHDTV quality On demand/Time shift Ă la carte TV-/video package Theatrical releases My TV-/Video content anywhere Dubbed audio Interactive TV 2011 2015 TV Media features worth paying for â Trends Percentage of consumers that say each TV Media feature is worth paying extra for: Source: Ericsson ConsumerLab TV & Media 2011 & 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, China, Germany, Spain, South Korea, Sweden, Taiwan, UK, US
- 46. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 46 In search of a new Experience 11% 22% 56% No, I prefer to get them from different providers Yes, even if it costs as much as the sum of the individual services Yes, but only if it helps me to save money Percentage of consumers preferring to receive their TV-service, internet and mobile service from the same provider [Self-reported]: BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US Great overall experience Great content Great flexibility 5% 5% 12% 78% Yes I have, because I wanted to wait for a while until they offered new and interesting content again Yes I have, because I had already seen most of the titles offered by the service Yes I have, because I wanted to decrease my TV and entertainment costs No I havenât done this Percentage of consumers pausing or making any changes to their OTT subscription for a period of time [Self-reported]: Source: Ericsson ConsumerLab TV & Media 2015 Study
- 47. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 47 Expectations on Advertising âș Possible to skip ads âș Ad blockers available âș Fewer breaks and often only at the beginning EASIER TO COPE WITH ONLINE ADS âș Ads ruin the otherwise high quality experience of watching priority content on the big TV âș Focused viewing on scheduled linear TV is too interrupted by ads HIGHER DEMANDS ON THE TV EXPERIENCE âș Online ads have a tendency to be slightly more relevant/personal âș Online ads are slightly more varied and thus bearable ONLINE ADS ARE MORE RELEVANT Percentage of consumers engaged in other activities in order to avoid watching ads [Self-reported]: Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US
- 48. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 48 Preferred types of advertising YouTube has advertisements but you can skip them in three to five seconds which is pretty convenient. And I think because I've just been such an Internet person from early childhood, I'm pretty good at tuning out advertisements in general.â - Melinda, 28 years, USA BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US Source: Ericsson ConsumerLab TV & Media 2015 Study 43% of consumers prefer to watch personalized ads based on viewing habits and demographics
- 49. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 49 The TV/Media budget Self-reported household monthly spending on TV and video related services 48% 9% 3% 6% 9% 25% ~$140/ month Managed TV (e.g. cable TV) S-VOD services T-VOD services Buying or renting physical media (e.g. DVDs) Cinema/movie theater visits Fixed internet subscription Base: US Population aged 16â59 with broadband at home who watch any type of TV/video at least weekly Source: Ericsson ConsumerLab TV and media studies 2011â2015 For consumers that are not yet OTT users, the notion of a TV/video budget seems irrelevant, yet heavy OTT users feel that they have to keep track of all the services they pay for and the total cost. TV PROVIDER ONLY Budget is irrelevant TV PROVIDER + 1 OTT Budget is not a main concern MULTIPLE OTT SERVICES Budget is important © Ericsson AB 2015 | TV and media 2015 | 2015-07-20 | Page 49
- 50. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 50 Self-reported estimated monthly spending evolution â US Monthly Media Spending Evolution Base: US Population aged 16â59 with broadband at home who watch any type of TV/video at least weekly Source: Ericsson ConsumerLab TV and media studies 2011â2015 Self-reported estimated monthly spending breakdown â US (excluding fixed internet subscriptions) 63% 12% 5% 12% 7% 66% 9% 4% 14% 7% 2014 2015 ~$103 ~$105 Managed TV (e.g. cable TV) S-VOD devices T-VOD services Cinema/movie theater visits Physical media e.g. DVDs) Physical media (e.g. DVD) Cinema/movie theater T-VOD services S-VOD services Managed TV TOTAL 2011/12 2014/15 86 USD 104 USD Increase No change Increase Increase No change
- 51. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 51 TV/Video Service Satisfaction 48% 35% 28% 25% 27% 48% 44% 46% 49% 38%Recommendation Get useful recommendations Price The price compared to what I get Mobility Ability to watch on any device anywhere Available content Amount and type of content Video quality Picture and sound Base: US Population aged 16â59 with broadband at home who watch any type of TV/video at least weekly Source: Ericsson ConsumerLab TV and media studies 2015 On-demand TV/video services Traditional linear TV services Satisfaction with quality, content, mobility, price and recommendations among those who use it, anonymized distribution for the US:
- 52. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 52 Traditional TV Services vs on-demand services BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US Source: Ericsson ConsumerLab TV & Media 2015 Study
- 53. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 53 TV has become a combination of linear, on demand capabilities and catch-up services, which is consequential for managed TV users. THE WORLD OF ENTERTAINMENT Linear channels T-VOD Online catch-up DVR TRADITIONAL USER EXPERIENCE USER EXPERIENCE RATIONALE TODAY World of entertainmentLinear channels T-VOD Online catch-up DVR S-VOD Source: Ericsson ConsumerLab TV and media 2015
- 54. TV Media 2015 Consumer Insights External Presentation | © Ericsson AB 2015 | 2015-12-16 | Page 54 Embracing the seamless experience TV/video consumers are growing increasingly weary of tech, devices, boxes, remote controls and cables. Thereâs little added value in having TV/video technology on display. Everything should be compatible with everything As little âintermediaryâ technology as possible The âpartsâ of the technology and hardware setup should preferably not be visible Percentage of consumers interested in a TV/video service that combines live TV with On-demand services on every screen in an integrated experience including getting everything on one monthly bill: Source: Ericsson ConsumerLab TV & Media 2015 Study BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine, US