Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

ARRIS Consumer Entertainment Index 2014

358 views

Published on

The 2014 ARRIS Consumer Entertainment Index (CEI). For more visit
http://success.arrisi.com/arriscei

Published in: Technology
  • Be the first to comment

  • Be the first to like this

ARRIS Consumer Entertainment Index 2014

  1. 1. THE ARRIS 2014 CONSUMER ENTERTAINMENT INDEX Follow us on Twitter @ARRISEVERYWHERE Follow us on LinkedIn www.linkedin.com/company/ARRIS
  2. 2. CONSUMERS WANT ENTERTAINMENT ON THEIR TERMS 27/9/2015
  3. 3. KEY FINDINGS 37/9/2015
  4. 4. Consumer demand for personalized entertainment is driving several key trends: • Broadcast TV is the core of in-home entertainment – 96% penetration rate means new implications for multiscreen and multi-room viewing • Majority of consumers are engaged in binge-TV viewing: 80% • Growth in multi-device usage drives new opportunities for multiscreen merchandising – 30% use secondary devices to purchase products featured in the programs they watch • Consumers want more storage – 62% said that there is frustration in the home when programs have to be deleted to make space KEY FINDINGS 7/9/2015 4
  5. 5. 1. Broadcast TV is here to stay 2. Consumers engage in binge-viewing 3. New opportunities for multiscreen merchandising 4. Storage challenges CONTENTS 7/9/2015 6
  6. 6. BROADCAST TV IS HERE TO STAY 77/9/2015
  7. 7. BROADCAST TV REMAINS THE ENTERTAINMENT LEADER 7/9/2015 8 96% 95% 91% 86% 67% 60% Free broadcast TV Subscription paid TV Internet stream via on-demand TV service/catch-up TV service Internet TV with/without attached box Internet stream via paid subscription TV service Internet shows created by users • Broadcast and Subscription TV remain the core methods for in-home entertainment viewing with 96% and 95% penetration, respectively How do you access TV?
  8. 8. • The living room is the room most likely to be used for watching TV globally • The bedroom is the second most popular room for viewing TV entertainment THE LIVING ROOM REMAINS THE HUB FOR HOME ENTERTAINMENT 7/9/2015 9 66% 11% 14% 4% 25% 14% 11% 61% 14% 12% 4% 26% 15% 12% 39% 7% 8% 13% 22% 20% 17% Living Room Dining Room Kitchen Bathroom Main Bedroom Additional Bedroom/s Entertainment/TV Room Broadcast TV (n=5234) Subscription paid TV (n=6279) Video games console (n=4111) Where do you watch TV?
  9. 9. • Broadcast and Subscription TV dominate consumers entertainment habits • Internet TV is increasing; note that four hours a week is spent on user- generated content …BUT TIME SPENT INTERNET STREAMING ON THE RISE 7/9/2015 10 How many hours do you spend watching entertainment ? 11 11 7 7 5 4 Free broadcast TV Subscription paid TV Internet TV with/without attached box Watching Internet stream via on- demand TV service/catch-up TV service Internet stream via paid subscription TV service Internet shows created by users
  10. 10. INCREASING FREQUENCY OF STREAMING ENTERTAINMENT 7/9/2015 11 • The number of streamers using the service infrequently has declined in 2014, showing that those using a streaming service are more likely to be using it as a regular part of the weekly viewing schedule 26% 27% 18% 14% 19% 16% 19% 15% 19% 28% 2014 2012-13 Every day Five or more days a week Three or four days a week Once or twice a week Less than once a week How often do you use your Internet streaming service?
  11. 11. • Around three-quarters overall use their service at least once a week (of those who have it) GLOBAL VARIATIONS IN STREAMING SERVICES 7/9/2015 12 27% 21% 24% 43% 44% 53% 42% 9% 10% 17% 17% 36% 32% 18% 20% 14% 37% 9% 26% 14% 14% 15% 15% 12% 16% 11% 15% 9% 10% 10% 9% 16% 10% 8% 13% 19% 20% 10% 16% 11% 16% 15% 18% 10% 15% 11% 12% 12% 16% 13% 14% 16% 15% 18% 14% 27% 14% 14% 18% 22% 15% 15% 15% 8% 9% 9% 14% 13% 20% 23% 15% 15% 11% 21% 14% 18% 13% 23% 18% 30% 28% 34% 28% 26% 17% 17% 18% 56% 44% 37% 46% 18% 33% 36% 40% 21% 17% 44% 21% 22% Every day Five or more days a week Three or four days a week Once or twice a week Less than once a week How often do you stream content each week?
  12. 12. • Traditionally connected devices (laptops and desktops) are still popular. Other devices on the rise (Smart TVs especially) • Service Providers need to meet a large range of requirements if they are to maximize their reach LAPTOP IS PREFERRED DEVICE FOR INTERNET STREAMING 7/9/2015 13 55% 53% 42% 33% 28% 16% 16% 15% 9% 7% Laptop/ notebook computer Desktop computer Smartphone Tablet Smart TV/ connected TV 'Standard' TV Gaming Console Set-top box provided by Pay TV subscription DVD/Blu-ray player Set-top box with DVR provided by Pay TV subscription On what devices do you stream entertainment?
  13. 13. MOBILE DEVICE PENETRATION INCREASES 7/9/2015 14 71% 71% 70% 55% 43% 39% 35% 15% 8% 73% 60% 69% 65% 26% 34% 16% 19% 5% Laptop/ notebook computer Smartphone Desktop computer DVD/Blu-ray player Tablet Gaming Console Smart TV/connected TV Standalone DVR (not provided as part of Pay TV subscription) Digital media streamer 2014 2012-13 • Smartphone and tablet ownership increases in 2014 • The most significant figure is the increase in ownership of Smart/connected TVs by 19% over last year’s study What devices do you own?
  14. 14. • Around half of smartphone owners watch TV on their smartphone each week • This is also the case for around six out of ten tablet owners SIGNIFICANT TV CONSUMPTION ON MOBILE DEVICES 7/9/2015 15 38% 20% 25% 11% 5% 2% Tablet 49% 19% 17% 7% 4% 3% Smartphone Rarely/never watch TV using this device Less than 1 hour 1 – 5 hours 5 – 10 hours 10 – 15 hours More than 15 hours Hours spent watching TV on mobile devices?
  15. 15. • Respondents in some countries are coping better than others, but in almost all, the majority encounter issues at least occasionally • This is a challenge that is likely to worsen if content provision rates outstrip bandwidth capabilities • A solution that maximizes bandwidth capability is needed CONSUMERS STRUGGLE WITH QUALITY OF SERVICE 7/9/2015 16 9% 8% 6% 14% 13% 11% 8% 8% 7% 8% 7% 12% 7% 7% 7% 8% 15% 7% 8% 3% 13% 8% 8% 9% 16% 15% 12% 14% 9% 13% 10% 18% 12% 10% 12% 18% 23% 8% 14% 8% 12% 9% 12% 16% 13% 17% 13% 9% 9% 15% 12% 15% 14% 9% 10% 14% 14% 7% 14% 8% 40% 33% 39% 46% 36% 47% 52% 23% 35% 50% 40% 35% 45% 33% 37% 50% 33% 23% 45% 53% 27% 43% 36% 14% 21% 10% 15% 45% 41% 14% 31% 20% 23% 40% 34% 10% 15% 55% 18% 28% I never encounter issues streaming or downloading I encounter issues occasionally when I stream or download I encounter issues about half the time I stream or download I encounter issues most of the time I stream or download I encounter issues every time I stream or download How often do you encounter issues when streaming?
  16. 16. • A minority overall are switching away from traditional TV Service Providers • However, among the younger generation, it is a significant number, so this is a potential growing threat to traditional TV Service Providers in the future CONSUMERS PREPARED TO SWITCH SERVICE PROVIDER TO GET WHAT THEY WANT 7/9/2015 17 13% 7% 20% 9% 19% 10% 14% 8% 11% 6% 7% 4%3% 3% Reduced/cancelled my TV subscription because I was able to access the TV content I wanted through the Internet Moved to a different Internet streaming/download subscription service in the last two years to access the TV content I wanted What actions have you taken to get the content you want? Total 16-24 years-old 25-34 years-old 35-44 years-old 45-54 years-old 55-64 years-old 65 or more years-old
  17. 17. CONSUMERS ENGAGE IN BINGE-VIEWING 187/9/2015
  18. 18. • Binge-viewing* is a prevalent habit in all regions, especially across LATAM, Turkey and India *Binge-viewing is watching multiple episodes of a TV program or film in one sitting 80% OF CONSUMERS BINGE-VIEW 7/9/2015 19 14% 10% 7% 27% 17% 23% 22% 10% 12% 15% 8% 24% 18% 5% 6% 9% 27% 13% 15% 7% 20% 17% 19% 19% 22% 23% 26% 21% 19% 16% 11% 26% 23% 14% 15% 20% 20% 23% 16% 23% 15% 15% 14% 14% 17% 15% 16% 13% 10% 14% 10% 17% 18% 11% 12% 28% 16% 8% 15% 18% 7% 7% 6% 6% 6% 6% 9% 4% 4% 8% 7% 7% 5% 8% 5% 11% 5% 2% 6% 8% 7% 9% 11% 5% 5% 6% 3% 6% 6% 10% 8% 5% 4% 7% 8% 14% 3% 3% 5% 4% 18% 17% 18% 13% 16% 18% 15% 19% 25% 15% 27% 12% 14% 17% 23% 13% 18% 25% 21% 26% 20% 26% 26% 15% 17% 10% 9% 28% 23% 22% 29% 9% 18% 37% 31% 6% 12% 25% 22% 14% Once a day Once a week 2-3 times a month Once a month Once every 2-3 months Less often I never do this How often do you binge-view?
  19. 19. • There are a variety of methods to access binge-viewing content in any given region • Shows that targeting binge-viewers will need to take format into account on a regional basis THE MOST POPULAR WAY TO BINGE-VIEW IS VIA FREE CATCH-UP SERVICES 7/9/2015 20 Downloaded using a catch-up service (free) DVD/Blu-ray Streamed using a catch-up service (free) Recorded from 'live' broadcast to DVR 31% 38% 36% 25% 36% 26% 33% 37% 49% 37% 34% 44% 25% 40% 31% 63% 41% 68% 47% 34%31% 29% 36% 27% 32% 24% 34% 31% 32% 33% 30% 39% 30% 36% 45% 47% 33% 20% 44% 30% By what methods do you binge-view?
  20. 20. • Laptops are used by almost a quarter to binge-view STANDARD TV IS OUR PREFERRED BINGING DEVICE 7/9/2015 21 What devices do you use to binge-view? 47% 24% 18% 17% 15% 9% 6% 6% 'Standard' TV Laptop/notebook computer Smart TV/connected TV Desk top computer Gaming Console Tablet Smartphone '4K/Ultra HD' TV
  21. 21. • Devices used to binge-view vary by age, and therefore age-based targeting is required STANDARD TV IS OUR PREFERRED BINGING DEVICE 7/9/2015 22 31% 33% 36% 38% 45% 50%50% 39% 32% 24% 18% 12% 29% 30% 30% 28% 23% 17%18% 29% 26% 25% 20% 14% 16-24 years-old 25-34 years-old 35-44 years-old 45-54 years-old 55-64 years-old 65 or more years-old 'Standard' TV Laptop computer Desktop computer Smart TV What devices do you use to binge-view?
  22. 22. NEW OPPORTUNITIES FOR MULTISCREEN MERCHANDISING 237/9/2015
  23. 23. • 30% of those who use a device to engage with a program while watching it are making purchases associated with the TV programs • Advertising needs to engage with the consumer in a way that doesn’t interrupt their entertainment PURCHASING PRODUCTS FEATURED IN TV SHOWS 7/9/2015 24 How do you use second screens in relation to program on the main screen? 43% 30% Text/voice conversation related to program Make a purchase related to program 27% 29% 30% 40% 27% 51% 40% 17% 18% 29% 21% 26% 32% 36% Buy another product featured on the program Buy a song featured on the program Play an interactive game/app related to the program Voice conversation about the program Access historical information about the program Text conversation about the program Access live information about the program Use one device Use two or more devices
  24. 24. • Consumers record content to personalize their content and skip the advertisements MORE THAN HALF DOWNLOAD OR RECORD TO SKIP ADVERTISEMENTS 7/9/2015 25 46% 65% 57% 60% 51% 46% 47% 44% 40% 48% 42% 49% 40% 43% 44% 39% 39% 38% 37% 40% 13% 10% 12% 8% 13% 17% 15% 18% 22% 11% 16% 9% 17% 14% 12% 15% 13% 14% 10% 6% Being able to skip advertisements is a crucial reason for why I download or record TV programs Being able to skip advertisements is an important reason for why I download or record TV programs Why do you skip traditional TV advertisements?
  25. 25. • While the majority do not always want to fast-forward, the majority want to do so at least half the time • Germany is the most engaged nation for on-screen advertisements; Russia the least 84% WANT TO FAST-FORWARD ADVERTISEMENTS 7/9/2015 26 25% 24% 28% 26% 13% 26% 22% 31% 17% 35% 39% 22% 29% 32% 36% 15% 18% 28% 21% 16% 27% 28% 26% 24% 22% 32% 32% 21% 17% 29% 27% 25% 29% 25% 23% 36% 34% 27% 26% 25% 13% 11% 14% 13% 13% 11% 15% 9% 11% 16% 9% 25% 10% 10% 12% 16% 11% 18% 14% 14% 18% 14% 15% 22% 33% 21% 22% 13% 20% 15% 11% 11% 17% 16% 14% 23% 24% 16% 20% 21% 16% 23% 17% 15% 18% 10% 8% 26% 35% 5% 15% 17% 14% 17% 15% 11% 13% 11% 18% 25% Always Usually Around half the time Occasionally Never How often do you want to fast-forward through advertisements?
  26. 26. • Younger consumers are more likely to be using second screens to engage with the TV programs • Smartphone use is higher among the youngest audience AGE AFFECTS SECOND- SCREEN ENGAGEMENT 7/9/2015 27 72% 72% 61% 54% 39% 24% 42% 39% 33% 26% 17% 9% 27% 32% 27% 25% 19% 13% 27% 26% 20% 15% 9% 4%12% 13% 13% 11% 6% 5% 16-24 years-old 25-34 years-old 35-44 years-old 45-54 years-old 55-64 years-old 65 or more years-old Used any device/s Yes – I've used a laptop PC for this Yes – I've used a desktop PC for this Yes – I've used a smartphone for this Yes – I've used a tablet for this Are you using a second-screen to engage with the program you are watching?
  27. 27. • Respondents are interested in a service that stores their content remotely in return for advertisements • The majority would like this service to be paid for by advertisements rather than paid for directly ADVERTISEMENTS AS A PAY-OFF FOR STORAGE 7/9/2015 28 62% 73% 69% 60% 62% 71% 65% 68% 66% 61% 62% 58% 62% 54% 55% 56% 59% 55% 54% 20% 20% 20% 28% 25% 17% 20% 17% 18% 22% 21% 21% 17% 23% 22% 20% 17% 20% 19% I would prefer to pay directly for this service rather than be shown advertisements I'm happy to be shown a few advertisements if it meant I got the service for free Would you pay or watch advertisements in return for storage?
  28. 28. STORAGE CHALLENGES 297/9/2015
  29. 29. • Consumers from China are most likely to be frustrated when making space available to save more content • Those from Brazil and the UK are most likely to often feel frustrated when doing this DELETING DVR CONTENT CAUSES FRUSTRATION 7/9/2015 30 17% 20% 15% 21% 21% 16% 24% 16% 14% 22% 19% 22% 24% 16% 17% 14% 10% 15% 5% 12% 17% 56% 71% 70% 63% 61% 63% 54% 59% 59% 51% 53% 51% 44% 51% 49% 49% 52% 46% 52% 42% 32% Yes - often Yes - sometimes Has having to delete content caused frustration?
  30. 30. • Consumers in China are most likely to delete programs before viewing them • Younger consumers are more likely to be deleting programs before watching 31 28% OF RECORDED CONTENT IS NEVER WATCHED 7/9/2015 21% 23% 23% 24% 24% 24% 26% 26% 26% 26% 27% 27% 28% 29% 30% 32% 34% 37% 40% 28% France Sweden Argentina Spain Mexico UK Chile Australia Canada South Korea USA Germany Turkey Japan Russia Brazil Singapore India China Total 24% 24% 26% 28% 33% 32% 28% 65 or more years- old 55-64 years-old 45-54 years-old 35-44 years-old 25-34 years-old 16-24 years-old Total How much recorded TV do you never watch?
  31. 31. • Catch-up and on-demand TV isn’t enough for the majority of consumers • Half want the option to record, and more than a third want the option to record multiple programs CONSUMERS WANT TO RECORD MULTIPLE PROGRAMS 7/9/2015 32 18% 21% 22% 26% 14% 22% 13% 19% 13% 20% 22% 23% 12% 12% 22% 13% 22% 21% 23% 13% 24% 33% 23% 27% 24% 32% 26% 23% 25% 25% 26% 22% 24% 19% 24% 16% 18% 26% 20% 20% 23% 26% 31% 24% 34% 18% 32% 27% 29% 22% 17% 17% 24% 28% 12% 29% 18% 10% 13% 16% One Two Three or more How many TV programs would you like to record simultaneously?
  32. 32. • More than half of consumers in China and India will pay to record multiple TV programs at the same time CONSUMERS PREPARED TO PAY TO RECORD MULTIPLE PROGRAMS 7/9/2015 33 30% 53% 53% 42% 39% 39% 35% 34% 33% 31% 26% 24% 24% 22% 22% 19% 19% 16% 16% 15% 26% 42% 33% 41% 22% 32% 35% 39% 33% 33% 19% 18% 21% 21% 14% 25% 18% 15% 16% 14% "I'd be happy to pay a little more for this if it came as part of a bundle deal" or "I'd be happy to pay for this as an additional service" "This would encourage me to choose the service provider who offered this" or "This would encourage me to leave my current service provider if they didn't offer this" Would you like record TV programs simultaneously?
  33. 33. • Chinese respondents are deleting a large percentage of programs, and are the most likely to take a Cloud Service into consideration • Those from Turkey are most likely to want this as part of a deal A THIRD OF PEOPLE WILL PAY FOR CLOUD STORAGE 7/9/2015 34 33% 61% 60% 47% 47% 41% 38% 37% 36% 36% 29% 24% 24% 20% 20% 19% 18% 18% 15% 15% 29% 46% 39% 40% 27% 36% 41% 37% 47% 35% 27% 19% 22% 20% 29% 12% 16% 17% 19% 18% "I'd be happy to pay a little more for this if it came as part of a bundle deal" or "I'd be happy to pay for this as an additional service" "This would encourage me to choose the service provider who offered this" or "This would encourage me to leave my current service provider if they didn't offer this" Would you be interested in cloud storage?
  34. 34. CONCLUSIONS 357/9/2015
  35. 35. CONCLUSIONS 7/9/2015 36 Consumers now expect entertainment on their terms – control over what they watch, when and where they watch it. In summary, the ARRIS 2014 Consumer Entertainment Index found: • A healthy appetite for traditional forms of entertainment, like broadcast TV • Increased diversity in the ways people would like to consume that content: e.g., multiscreen, multi-room, and binge-viewing • Desire for and opportunities for second-screen merchandising • A need for improved storage solutions These trends underscore an opportunity for Service Providers to offer more personalized services and program-related content that address this shift in engagement.
  36. 36. APPENDIX 377/9/2015
  37. 37. • The ARRIS CEI interviewed 10,500 respondents from 19 countries — 1,000 respondents from the USA and 1,000 respondents from China — 500 respondents each from: Argentina, Australia, Brazil, Canada, Chile, France, Germany, India, Japan, Mexico, Russia, Singapore, South Korea, Spain, Sweden, Turkey and the UK • Response required TV service with a capable device and access to an Internet connection DEMOGRAPHICS 7/9/2015 38 16% 19% 19% 19% 17% 11% 16-24 years-old 25-34 years-old 35-44 years-old 45-54 years-old 55 -64 years-old 65 or more years-old 50%50% Male Female Please select your gender. All respondents (10,500) What age are you? All respondents (10,500)

×