This presentation looks at the Ericsson ConsumerLab, annual TV & Media report.
The report looks at changing consumer behaviors and values such as the increase of streaming video as well as growing willingness to pay for anywhere access.
The TV landscape is changing. New aggregators are enabling consumers to decide what they want to watch and pick-and-mix their own services.
This disruption puts the user at the center. It will be up to brands and service providers to build compelling consumer experiences.
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Ericsson ConsumerLab, annual TV & Media report Presentation
1. TV & Media
2014
Consumer
Insights
Ericsson ConsumerLab
Niklas Heyman Rönnblom
Anders Erlandsson
2. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 2 (19)
Streaming habits are closing in on linear TV
DVRs are disassembling linear TV channels
S-VOD services accelerates binge viewing
Increased willingness to pay for anywhere access
Consumers want 4K
Time to change the structure of TV services
Key findings
Source: Ericsson ConsumerLab TV & Media 2014 Study
3. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 3 (19)
Ericsson ConsumerLab
annual research
1.1 billion
REPRESENTING
PEOPLE
100,000
RESPONDENTS
15
STUDIED
40 MEGACITIES
MORE THAN
COUNTRIES
4. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 4 (19)
Representing >620 million
Consumers
Qual: 22 in-depth interviews (New York, London & Stockholm)
Quant: 23 000 online interviews (1000/country) + booster for age 60-69
All 23 Markets (Base 23 Markets): Brazil, Canada, Chile, China, France, Germany, Greece, Indonesia, Ireland, Italy,
Malaysia, Mexico, Portugal, Russia, Singapore, Spain, South Korea, Sweden, Taiwan, Turkey, UAE, UK, US
Source: Ericsson ConsumerLab TV & Media 2014 Study
5. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 5 (19)
Changes in Viewing
Consumer TV/Video consumption on a more than weekly basis
83%
77%
61%
75%
47%
28%
31%
25%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014
On demand content make up for an increasing part of consumers
viewing habits, especially streaming
Source: Ericsson ConsumerLab TV & Media 2014 Study
BASE: Base 9 Markets (Brazil, China, Germany, South Korea, Spain, Sweden, Taiwan, UK, US) [Showing: Use several times a week or more]
Scheduled broadcast TV
Streamed video
(YouTube, short clips, movies,
programs, TV-series)
Recorded broadcast TV
DVD, Blu-ray etc.
6. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 6 (19)
Reasons to keep the TV package
› Live TV (e.g. sports, news)
› Access to the latest episodes
› Reliable content resource for the
DVR
Managed TV & The DVR
DVR
Source: Ericsson ConsumerLab TV & Media 2014 Study
DVRs are disassembling linear TV channels
I’m missing sports. I’m missing
some cooking channels and
things like this…”
Harrison, 31, US (Cord cutter)
7. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 7 (19)
› Physical media triggered binging, but S-VOD removed the cost barriers
› 56% of S-VOD users want all episodes to be released at once, compared
to 45% percent of non S-VOD users
Binge viewing
48%
want all episodes to
be released at once,
enabling them to binge
Source: Ericsson ConsumerLab TV & Media 2014 Study
BASE: Base 23 Markets
8. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 8 (19)
Average hours watching video on each device per week
0 2 4 6 8 10 12 14 16 18
TV-screen 2014
TV-screen 2012
Desktop computer 2014
Desktop computer 2012
Laptop 2014
Laptop 2012
Smartphone 2014
Smartphone 2012
Tablet 2014
Tablet 2012
At home
Away from home
BASE: Base 9 Markets [Those who have and use respective device]
hours
Device viewing
Source: Ericsson ConsumerLab TV & Media 2014 Study
25% increase in willingness to pay for anywhere
access compared to 2012
9. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 9 (19)
Place shifting
Source: Ericsson ConsumerLab TV & Media 2014 Study
17%
19%
6%
20%
35%
3%
At least daily Weekly
Monthly Less often
Never Don’t know
36% place shift
weekly
Easy to use streaming S-VOD services encourage
place-shifting
Place shifting habits
10. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 10 (19)
Viewing situations
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
16-24
25-44
45-59
60-69
BASE: Base 23 Markets
In what situations do you watch any type of TV/video
content - at least weekly?
Younger TV viewers have more flexible viewing habits. They watch more
in non-traditional TV viewing situations than older viewers
Source: Ericsson ConsumerLab TV & Media 2014 Study
11. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 11 (19)
Mobile barriers
Factors limit out of home mobile video viewing
(Showing top 2 alternatives on a 7-graded scale)
18%
18%
21%
21%
26%
30%
35%
45%
46%
0% 20% 40% 60%
My device is not capable
It is to difficult
Poor selection content
The video quality is too poor
Not good enough network
coverage
Internet connection is slow
Not interested
The content costs is too high
The data cost is too high Other barriers
› Few suitable situation
› Poor battery capacity
Coping strategies
› Services with offline modes
› Download content
› Watch shorter content
› Only view specific content
› Take another route to work
› Do something else…
41% are very interested in getting access to all the
their TV/video content anywhere, but…
BASE: Base 23 Markets
Source: Ericsson ConsumerLab TV & Media 2014 Study
12. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 12 (19)
Video quality
4K/Ultra High Definition (UHD) is already important to
43 percent
Source: Ericsson ConsumerLab TV & Media 2014 Study
Time
Quality requirements
W2P
Premium
quality
Good
quality
Acceptable
quality
HD
SD quality SD quality SD quality
HD HD
4K/UHDTV 4K/UHDTV
8K/Oculus? P
E
R
C
E
P
T
I
O
N
To be honest, SD is fine with just normal TV But
when it comes to my sports events, I like
watching that in 720p”
Lenny, 25, US
13. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 13 (19)
TV Cord cutting
Existing restrictions for the managed services impact the
perceived value, and trigger cord cutting and shaving
We’re spending so much money on just Comcast channels, and most of them you don’t
watch. Should we get a Roku?... If [my husband] wasn’t so obsessed with golf, it would
be a no-brainer… We literally pay $200 a month for golf”
Laura, 33, US
13%
60%
12%
15%
Increased
No change
Reduced
Eliminated
BASE: Base 9 Markets
Source: Ericsson ConsumerLab TV & Media 2014 Study
21%
65%
7%
7%
19%
58%
12%
11%
2012 2013
2014
14. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 14 (19)
54
39
31
33
14
26
1
1
0 25 50 75 100
OTT On demand services
- US
Traditional TV providers -
US
Promoters (9-10) In between (7-8)
Detractors (0-6) Don't know
Net Promoter Score
Source: Ericsson ConsumerLab TV & Media 2014 Study
BASE: US [Current users for each service, aggregated for OTT on demand & regular TV provider services]
Likelihood to recommend the TV/Video service provider
to a friend, family member or colleague
NPS score
+39
+12
%
Traditional US TV providers score significantly lower than
US based OTT on demand services in Net Promoter Score
15. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 15 (19)
0% 25% 50% 75% 100%
OTT On demand
TV provider
OTT On demand
TV provider
OTT On demand
TV provider
OTT On demand
TV provider
Very satisfied (9-10) In between (2-8)
Very dissatisfied (0-1) Don't know
Key TV/video attributes
Source: Ericsson ConsumerLab TV & Media 2014 Study
BASE Left graph: US [Current users for each service, aggregated for OTT on demand & regular TV provider services]
BASE Right graph: All 23 Markets
Price
Quality
Mobility
Content
0,56
0,56
0,40
0,34
0 0,25 0,5 0,75
Price
Quality
Mobility
Content
16. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 16 (19)
Some new releases
All you can eat
Older content
Miss social buzz
Not first release
Miss social buzz
Expensive
Special occasion
First release
Social buzz
Expensive
Separate budget
Film Release windows
Cinema T-VOD S-VOD Free-to-air
3-6 months later First release 10-28 months later 28 months later
Source: Ericsson ConsumerLab TV & Media 2014 Study
17. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 17 (19)
Cinema T-VOD S-VOD Free-to-air
3-6 months later First release 10-28 months later 28 months later
Source: Ericsson ConsumerLab TV & Media 2014 Study
Watching old S-VOD TV-series
recommends new T-VOD seasons
Movie tickets include T-VOD and
S-VOD access across devices
Film Release windows
18. TV Media 2014 Study Presentation | Ericsson Internal | EAB 14:1427 Uen, Rev C | 2014-09-02 | Page 18 (19)
Pre-bundled Atomized
Atoms & aggregation
Full personalization
Scattered experience
All-in-one experience
Little or no personalization
Consumers want a fully atomized media experience, but they still
want help aggregating it all