The document discusses the evolving landscape of media consumption, emphasizing the popularity of TV and video despite shifting trends among younger audiences who are increasingly competing for leisure time with social media. It highlights the complexity of the TV/video ecosystem and the necessity for innovation in device integration and user experience, advocating for a service-led approach that enhances engagement across multiple screens. The document identifies significant opportunities for businesses to lead in this space through user-focused design and improved media discovery.

1. The changing media
consumption landscape
Olof Schybergson, CEO, Founder
Future of Broadcasting, June 28th 2011

2. At Fjord we design digital services
We design digital services that transform businesses and help shape tomorrow’s world.
Slide 2 © Fjord 2011 | Confidential

3. The landscape
The rapidly evolving TV
entertainment domain

4. The TV/video ecosystem
DISTRIBUTORS CONTENT OWNERS
Cable, satellite, telecom TV networks and studios
DEVICE MANUFACTURERS SERVICE INNOVATORS
TVs, STBs, handsets Digital natives
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5. TV viewing is not disappearing
Consuming TV/Video is very popular and people are today spending up to
35% of their leisure time on watching content.
Weekly hours of TV viewing, all in the UK aged 4+
SOURCE: BARB 2011
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6. But there are some challenging trends
There is a clear shift in behaviour in the youngest audience. With this group,
social media has become a very direct competitor for time share.
Weekly hours of TV viewing.
SOURCE: BARB 2011
Slide 6 © Fjord 2011 | Confidential

7. Changes to consumer expectations
Consumption patterns
• People are actively exploring new TV/Video technologies
• …and are looking to enrich their viewing experience
• There are not many established consumption patterns (except the ‘old’ ones)
• More than 70 % are “time-shifting” on a weekly basis 1, and 50% are using
internet based on demand TV/video every week
SOURCE: Ericsson ConsumerLab MSMC-study 2010
1 Streaming, downloading or watching recorded broadcast TV
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8. NOW
Entertainment
The borders are blurring
WAS Entertainment
Communication
Communication
Information
Information
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9. = Business disruption
• TV/Video consumption is fragmented and complex
• New types of entrants in the market
• A trial and error market with lots of curiosity around
• No obvious global leadership
Slide 9 © Fjord 2011 | Confidential

10. The role of devices
What roles the dominant screens
in our living rooms play

11. The battle of the glowing rectangles
No single screen has it all !
TV Computer Mobile Tablet
Convenient & relaxing Time shifting ’Only screen around’ Media consumption
High quality Free & unlimited To kill time & in transit Internet + email
Social Lean forward Communication Socially acceptable
Lean back Multitasking While waiting Domesticated mobile
Fighting loneliness Personal Very personal Entertaining kids
• Each of the dominant screens has some strengths for TV consumption
• It’s not a choice between the screens, a strategy has to include all key screens
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12. Device approach #1
Do something great on one device, or
connect two devices in a novel way

13. The future of TV ! …really?
Samsung Smart TV Home view Both Samsung and LG are
offering ‘smart TVs’, all-in-
one media experiences in
the living room.
Is this experience what
people want?
Samsung remote control top Remote control underside LG Smart TV Home view
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14. An alternative TV approach from Ericsson
• Exponential complexity of
media consumption doesn’t
marry well with an old-school
remote control solution.
• This solution separates the
discovery and control of
media (on the tablet) from the
enjoyment (on TV).
• Media control in the home is a
natural start point for the
wider connected home
domain.
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15. Does Ericsson’s solution meet a real need?
According to a large user study, 3 growing user needs are met very well:
1. A remote control that is using a touch screen paradigm
2. An ability to use the Internet on the tablet
3. An ability to preview and parallel view using the smaller screen
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16. Companion experiences
The NFL iPad app is designed
to be the perfect companion
for the TV experience.
• Stats
• Info graphics
• Social features
• Background info
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17. Device approach #2
A seamless experience across all
key devices

18. A typical arch of the day
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19. Connecting the (glowing) dots
Cross-platform access,
ubiquity, and fluidity is
the next frontier of the
digital service battle.
Companies like Amazon
(whisper synch), Google
(Maps, Android), and
Apple (iCloud) are
leading the way.
Slide 19 © Fjord 2011 | Confidential

20. …and beyond the dots
Smart environments Smart objects
The car and the home are
the primary ‘smart
environments’.
In the near future, billions
of ‘dumb’ objects will also
be connected.
Services will be extended
to encompass these.
Slide 20 © Fjord 2011 | Confidential

21. BBC iPlayer availability and access
Web Mobile Gaming consoles TV (through STP)
• BBC iPlayer is available
on 4 key platforms
• Usage is stabilizing
around 150m views/
month, and 1.5m unique
viewers per day
• In an on-demand world,
discovery becomes a
strategic user experience
issue
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22. Netflix as the service innovator du jour
• Available on all major digital
platforms: gaming consoles,
computers, tablets, mobiles
• User experience is designed for
the platform and the context
• The constant is the design
principles – they stay the same
but the application varies across
input, posture, navigation and
display 1
With over 20million members globally, Netflix is the leading Internet
subscription service streaming movies & TV episodes. Netflix members
can instantly watch unlimited streamed movies & TV episodes.
1 SOURCES: www.uie.com/brainsparks/2011/06/07/multi-device-design-netflix/ & en.wikipedia.org/wiki/Netflix
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23. Towards a service approach
Devices make experiences tangible,
but the service approach is what
truly matters

24. Service challenges
• As home entertainment is becoming inherently interactive, the experience
should be service-led, rather than one of distribution
• TV service design is about stitching things together to a coherent experience
• There is the need to support two potentially conflicting needs
1. Simplicity and inclusiveness: over 50% think simplicity is very important 1
2. Individual passions
Effortless enjoyment Flexible and individual
Simple service activation Scales to many screens and devices
One account (SSO) Includes web interactivity
Simple and transparent billing Supports playlists, sharing, queuing
Lean-back optimized Scales to UGC sharing, text input, etc.
Social and inclusive Smart search and recommendations
1 SOURCE: Ericsson ConsumerLab MSMC-study 2010
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25. To sum up
The opportunity in the TV / media
landscape

26. The opportunity
• No clear international leadership in the domain
• With increased viewer flexibility comes complexity and confusion
• Key focus will be on service coherence, elegant media discovery and
control, and multiple device usage
• There’s a massive opportunity to do for the media industry what Amazon
did in retail and Apple in music and telecom
• User-focused design – rather than technology – is at the forefront of
innovation and change
Slide 26 © Fjord 2011 | Confidential

27. Defining digital
Web: www.fjordnet.com
Twitter: @fjord
olof@fjordnet.com