TV & Media 2013 Report
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1 TV & Media 2013 Report Identifying the needs of tomorrow s video consumers Ericsson ConsumerLab Anders Erlandsson Niklas Heyman Rönnblom Atli Ericson
2 Key findings The growing importance of Mobile devices in the TV Media space Even late adopters are becoming advanced The birth of aggregated, pick-and-mix TV solutions TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 2 (20)
3 Ericsson ConsumerLab annual research 100,000 RESPONDENTS REPRESENTING 1.1 billion PEOPLE 40 MORE THAN COUNTRIES 15 MEGACITIES STUDIED TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 3 (20)
4 Representing >550 Million consumers Expert interviews Niclas Ekdahl, CEO Viaplay Kjell Häglund, Chief Editor DGC & Weird Science Dante Compagno Neto, Head of TV Business, GVT Jose Raimundo Lima, Technical and Operations Executive Director, SBT Suzanne Stein, Ass. Prof. OCAD University Toronto & Foresight Expert 2020 Media Futures Project Qual: 30 in-home interviews (Sao Paolo, Seoul, Stockholm & New York) Quant: ~ online interviews (1000/country) + booster for age (Brazil, Canada, Chile, China, France, Germany, Italy, Mexico, Russia, Spain, South Korea, Sweden, Taiwan, UK, US) TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 4 (20)
5 Traditional TV Habits 100% Consumer TV/Video Consumption on a more than weekly basis 90% 80% 83% 79% 83% Scheduled broadcast TV 70% 60% 50% 40% 30% 20% 10% 31% 30% 27% 15% 17% 15% DVD/Blu-ray etc. Pay-per-view 0% Physical media continues its downward trend, while pay per view and scheduled broadcast viewing remains fairly stable BASE: Extended 9 markets (US, UK, Germany, Sweden, Spain, China, Taiwan, Brazil & South Korea), [Showing more than weekly usage] TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 5 (20)
6 On-Demand Habits 100% 90% 80% Consumer TV/Video Consumption on a more than weekly basis 70% 60% 50% 40% 30% 20% 61% 47% 38% 62% 63% 36% 31% 35% 29% Streamed on-demand/time shifted TV & Video incl. YouTube Own recorded broadcast TV Downloaded Movies & TV shows 10% 0% Streaming and YouTube viewing grows, while recorded broadcast TV and downloaded content looses momentum BASE: Extended 9 markets (US, UK, Germany, Sweden, Spain, China, Taiwan, Brazil & South Korea) [Showing more than weekly usage] TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 6 (20)
7 Late adopters catch on 100% 80% 60% 40% 20% 0% Stream on-demand/time shifted TV & Video incl. YouTube, more than weekly 75% 75% 71% 57% the computer and the internet is a natural part of my TV and video consumption habits 60% 48% 40% 40% 41% I want to decide when to watch something rather than following a schedule +24% increase from 2011 to 2013 amongst late adopters BASE: Extended 9 markets (US, UK, Germany, Sweden, Spain, China, Taiwan, Brazil & South Korea), [Showing more than weekly usage] TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 7 (20)
8 People using TV (PUT) From Sunrise to sunset Watch any type of TV & video content at least several times a week 85% 55% 49% 23% 35% 9% 15% 6% 16% 11% 28% Breakfast background TV Traditional linear TV curve Prime time appointment viewing Prime access background TV, zapping, and impulse viewing Emerging TV curve (advanced viewers) Late night impulse viewing Morning Noon Afternoon Early evening Evening Night BASE: All 15 markets TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 8 (20)
9 Mobile viewing Increases Average hours watching video on each device per week TV-screen 2013 TV-screen 2012 Desktop computer 2013 Desktop computer 2012 Laptop 2013 Laptop 2012 Smartphone 2013 Smartphone % of the respondents use the Laptop, Smartphone or Tablet to watch TV/Video outside the home on a weekly basis Tablet 2013 Tablet 2012 Other screen 2013 At home Away from home Other screen 2012,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0 16,0 18,0 hours 72% use mobile screens for video viewing each week BASE: Extended 9 markets, [Those who have and use respective device] TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 9 (20)
10 second screen usage I use secondary device (e.g. smartphone, tablet or laptop) while watching TV in order to (Showing at least weekly usage among those who rank a viewing type as very important (7 on a 7-graded scale)) Read while watching TV/video content 63% 75% Use apps or browse the Internet to kill time, not related to the content I am currently watching Use apps or browse the Internet to find out more information about the content I am currently watching Use social forums at the same time as watching TV/Video content Discuss the TV/video content that I am currently watching with others online Watch two or more programs, live events or shows at the same time 56% 49% 40% 29% 25% 44% 49% 55% 68% 66% Compete with others watching the same show 14% 27% Watch the same program or show from two different camera angles Interact with the show through voting 14% 13% 27% 27% Live TV Event Junkies TV Sport Fans Live betting on a sports event at the same time as you are watching 13% 24% TV Serie Aficionados Movie Buffs People who value live event and sport viewing are generally much more active using secondary devices while viewing BASE: All 15 markets, [Left graph showing weekly or more usage among all consumers. Right graph showing weekly or more usage amongst those who answered top 1 on a 7-graded scale: I agree completely to the questions (from top to bottom above): Being able to watch live events other than sports is very important to me, Being able to watch live sports is very important to me, Being able to watch good TV-series is very important to me and finally Being able to watch good movies is very important to me ] TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 10 (20)
11 The UGC explosion Long viewing on large screens 82% use YouTube or similar services at least monthly Reliable and trustworthy Short fragmented mobile viewing User Generated Content Something for everyone If I needed to know something, I m going straight to YouTube, straight to Do-It-Yourself YouTube is great because it s raw [unbiased] content and they show you actually, physically [how to do it], so I think that s pretty cool. Chase, 24, New York, USA TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 11 (20)
12 Prosuming TV & Video Consumer are treating content as they please, pickingand-mixing their own versatile TV/video solution TV-Shows Series Sports & Live events New movies Older movies Linear TV DVR Play streaming S-VOD T-VOD/ PPV Pirate streaming Illegal downloading Legal downloading (Example showing some common associations between source and type of content) Consequences It is going to be the viewers market more than the producers. Linear TV is just one ingredient Quality content is very important Kjell Häglund, DGC & Weird Science, Sweden TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 12 (20) lock-in and binding time avoidance Replaced or reduced large bundles
13 Cord cutting/shaving Cord shaving & cutting phenomena is increasing Thinking back one year have you change your managed TV package? 7,441 6,774 64, , , ,765 19, ,33 8 Increased No change Reduced Eliminated it Extended 9 markets Extended 9 markets US: Increase 24%, Reduced/eliminated 25% Germany: Increased 9%, Reduced/eliminated 26% China: Increased 30%, Reduced/eliminated 8% BASE: Extended 9 markets (US, UK, Germany, Sweden, Spain, China, Taiwan, Brazil & South Korea) TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 13 (20)
14 The Impact of on demand Subscription-VOD services Easy to add to existing setup Inexpensive, easy and fun to use Available across devices Easy to share Transaction-VOD services Not part of the everyday TV setup Avoided due to high cost Only used for specific content 24 hour viewing limit is a barrier Relaxed viewing S-VOD is changing the traditional role of linear TV We re pimping out our Netflix password across town. Ha ha! Naomi, 28, US Linear TV VOD Appointment viewing TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 14 (20)
15 Piracy losing ground 40% 35% 30% 25% 20% 15% 10% 5% 0% When you watch on-demand video, which services do you use? File sharing 20 percentage points Spain Base: Spanish on-demand (streaming & downloading content) users (606 users out of 1000) 60% 50% US 40% 30% 20% 10% 0% Base: US on-demand (streaming & downloading content) users 508 users out of 1000) * The highlighted services are related to piracy one way or the other BASE: Spain & US [Watch streamed movies, streamed TV-programs/TV-series or downloaded movies or TV-series at least several times a month] TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 15 (20)
16 Important services 2013 The most important services/options when it to how consumers want their future TV/Video experience 1. Free from ads/commercials 2. Excellent quality (HD quality) 3. Time shift/on demand 4. Usability, super simplicity 5. À la carte TV/Video content Top 5 6. Extreme quality (4K/UHDTV) 7. Push to see the content best suited for you 8. My TV/Video content on all my devices 9. Internet on my traditional TV screen 10. Theatrical releases directly in the TV 11. One search, watch and pay interface 12. Advance on online video search 13. 3D TV 14. Personalizable TV Screen info 15. Video telephony 16. Access Apps on traditional TV screen 17. Watch different camera angles 18. Interactive TV Bottom 5 BASE: All 15 markets TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 16 (20)
17 Willingness to pay 2013 Which of the following features/services do you consider worth paying for? Top 5 Bottom 5 Excellent quality (HD quality) Free from ads/commercials Time shift/on demand Extreme quality (4K / 4xHD) À la carte TV-/video content 3D TV Theatrical releases direct on the TV Access Internet on your traditional TV screen Usability, super simple interfaces My TV-/video content on all my devices Adv. online video search (actors, scenes...) Video telephony Interactive TV Push to see the content best suited for you Access Apps on your standard TV screen One search, watch & pay interface for Personalizable TV-screen info (Apps, Accessing/watching different camera angles 5% 4% 6% 8% 10% 10% 9% 13% 12% +2% 14% 19% 17% 17% +3% Compared to % 25% +1% +3% +1% +5% 27% 30% 35% +3% BASE: Extended 9 markets (US, UK, Germany, Sweden, Spain, China, Taiwan, Brazil & South Korea) TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 17 (20)
18 One personalized experience Consumers are looking for one super simple, convenient, experience aggregating their TV and video Aggregate services sources and content Be up to date and flexible Aggregate discovery and recommendations Aggregate interface and navigation Preferably one easy, individualized video experience/solution Aggregate payment and billing I don t think that the mass market will tolerate less than having it all in one, or at the most two, different services. Niclas Ekdahl, CEO Viaplay TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 18 (20)
19 Key findings The growing importance of mobile devices in the TV Media space 72 percent use mobile devices (smartphone, tablet or laptop) for video viewing at least weekly and 42% do it outside the home 75 percent multitask by using mobile devices while watching TV and 1 in 4 watch multiple video sources at the same time Even late adopters are becoming advanced video users 41 percent of the year olds in the study watch streaming on-demand/time shifted TV and video content, including YouTube, on a more than weekly basis The birth of aggregated, pick-and-mix TV solutions À la carte TV Video content is ranked as the fifth most important aspect of the TV and video experience The quest has begun to become THE easy-to-use, à la carte TV solution that aggregate the consumers TV & Video needs TV Media 2013 Study, Short Presentation Commercial in confidence Ericsson AB Page 19 (20)
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