Ericsson tv and_media_2013_study_presentation_v3

TV &
Media
2013
Report
Ericsson ConsumerLab
Anders Erlandsson
Niklas Heyman Rönnblom
Atli Ericson
Identifying
the needs of
tomorrow’s
video
consumers

TV Media 2013 Study, Short Presentation | Commercial in confidence | © Ericsson AB 2013 | 2013-09-09 | Page 2 (20)
› 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
Key findings
Source: Ericsson ConsumerLab TV & Media 2013 Study

Ericsson ConsumerLab
annual research
100,000
RESPONDENTS
1.1 billion
REPRESENTING
PEOPLE
15
STUDIED
MEGACITIES 40
MORE THAN
COUNTRIES

Representing >550 Million
consumers
Qual: 30 in-home interviews (Sao Paolo, Seoul, Stockholm & New York)
Quant: ~15 000 online interviews (1000/country) + booster for age 60-69
(Brazil, Canada, Chile, China, France, Germany, Italy, Mexico, Russia, Spain, South Korea, Sweden, Taiwan, UK, US)
› 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
Expert interviews

Traditional TV Habits
Consumer TV/Video Consumption on a more than weekly basis
Scheduled broadcast TV
DVD/Blu-ray etc.
15% 17% 15% Pay-per-view
31% 30%
27%
83%
79% 83%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013
BASE: Extended 9 markets (US, UK, Germany, Sweden, Spain, China, Taiwan, Brazil & South Korea), [Showing more than weekly usage]
Physical media continues its downward trend, while pay per view
and scheduled broadcast viewing remains fairly stable

On-Demand Habits
Streamed on-demand/time
shifted TV & Video incl.
YouTube
Own recorded broadcast
TV
Downloaded Movies &
TV shows
BASE: Extended 9 markets (US, UK, Germany, Sweden, Spain, China, Taiwan, Brazil & South Korea) [Showing more than weekly usage]
Streaming and YouTube viewing grows, while recorded
broadcast TV and downloaded content looses momentum
61%
62% 63%
47%
36% 31%
38%
35%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013
Consumer TV/Video Consumption on a more than weekly basis

Late adopters catch on…
“the computer and the internet
is a natural part of my TV and
video consumption habits”
57%
“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]
Stream on-demand/time shifted TV & Video incl. YouTube, more than weekly
75% 75% 71%
60%
48%
40% 40% 41%
0%
20%
40%
60%
80%
100%
16-19 20-24 25-34 35-44 45-54 55-59 60-64 65-69
2011
2013

From Sunrise to sunset…
49%
28%
85%
55%
11%
16%
6%
15%
9%
35%
23%
Watch any type of TV & video content at least several times a week …
BASE: All 15 markets
Traditional linear TV curve
Morning Noon Afternoon Early evening Evening Night
Breakfast
background TV
Prime access
background TV,
zapping, and
impulse viewing
Prime
time
appointment
viewing
People using TV (PUT)
Late night
impulse viewing
Emerging TV curve
(advanced viewers)

Average hours watching video on each device per week
Mobile viewing Increases
0 2 4 6 8 10 12 14 16 18
TV-screen 2013
TV-screen 2012
Desktop computer
2013
Desktop computer
2012
Laptop 2013
Laptop 2012
Smartphone 2013
Smartphone 2012
Tablet 2013
Tablet 2012
Other screen 2013
Other screen 2012
At home
Away from home
BASE: Extended 9 markets, [Those who have and use respective device]
72% use mobile screens for video viewing each week
hours
42% of the respondents
use the Laptop,
Smartphone or Tablet to
watch TV/Video outside
the home on a weekly
basis

second screen usage
75%
68%
66%
55%
49%
44%
27%
27%
27%
24%
Live TV Event Junkies
TV Sport Fans
TV Serie Aficionados
Movie Buffs
People who value live event and sport viewing are generally much
more active using secondary devices while viewing
I use secondary device (e.g. smartphone, tablet or laptop) while watching TV in order to …
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”]
63%
56%
49%
40%
29%
25%
14%
14%
13%
13%
Read email while watching TV/video content
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
Compete with others watching the same show
Watch the same program or show from two different
camera angles
Interact with the show through voting
Live betting on a sports event at the same time as you
are watching
(Showing at least weekly usage among those who rank a viewing type as very important (7 on a 7-graded scale))

The UGC explosion
User Generated Content
Short fragmented
mobile viewing
Long viewing on
large screens
Reliable and
trustworthy
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
82%
use YouTube or similar services
at least monthly

Prosuming TV & Video
(Example showing some common associations between source and type of content)
Older movies
New movies
TV-Shows
Illegal
downloading
Legal
downloading
DVR S-VOD
Play
streaming
Sports &
Live events
Linear TV
Pirate
streaming
T-VOD/
PPV
Consumer are treating content as they please, picking-and-
mixing their own versatile TV/video solution
Series
It is going to be the viewers’ market more than the producers’.
Kjell Häglund, DGC & Weird Science, Sweden
› lock-in and binding time avoidance
› Replaced or reduced large bundles
Consequences
› Linear TV is just one ingredient
› Quality content is very important

› US: Increase 24%, Reduced/eliminated 25%
› Germany: Increased 9%, Reduced/eliminated 26%
› China: Increased 30%, Reduced/eliminated 8%
Cord cutting/shaving
Cord shaving & cutting phenomena is increasing
19
58
12
11
Extended 9 markets - 2013
Increased
No change
Reduced
Eliminated it
Thinking back one year have you change your managed TV package?
21
65
7
7
Extended 9 markets - 2012
BASE: Extended 9 markets (US, UK, Germany, Sweden, Spain, China, Taiwan, Brazil & South Korea)

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
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
We’re pimping out our Netflix
password across town. Ha ha!
Linear NTaoVmi, 28, US
VOD
Relaxed viewing Appointment viewing
S-VOD is changing the traditional role of linear TV

Piracy losing ground
Spain
0%
5%
10%
15%
20%
25%
30%
35%
40%
BASE: Spain & US [Watch streamed movies, streamed TV-programs/TV-series or downloaded movies or TV-series at least several times a month]
When you watch on-demand video, which services do you use?
Base: Spanish on-demand (streaming & downloading content) users (606 users out of 1000)
0%
10%
20%
30%
40%
50%
60% US
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
File sharing
20
percentage
points
2011-2013

Important services 2013
BASE: All 15 markets
The most important services/options when it to how consumers want their future TV/Video experience
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
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
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

35%
30%
27%
25%
22%
19%
17%
17%
14%
13%
12%
10%
10%
9%
8%
6%
5%
4%
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…
Willingness to pay 2013
+3%
+5%
+3%
+1%
+3%
+1%
+2%
Compared to 2011
BASE: Extended 9 markets (US, UK, Germany, Sweden, Spain, China, Taiwan, Brazil & South Korea)
Which of the following features/services do you consider worth paying for?
Top 5
Bottom
5

One personalized experience
Consumers are looking for one super simple,
convenient, experience aggregating their TV and video
Aggregate
discovery and
recommendations
Preferably one easy,
individualized video
experience/solution
Aggregate services
sources and
content
Aggregate
interface and
navigation
Aggregate
payment and billing
Be up to date and flexible
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

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 65-69 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
Key findings

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