Ericsson ConsumerLab TV and Media 2013 Presentation

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CAPITALS

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TV & Media 2013 Report

Ericsson ConsumerLab Anders Erlandsson

Niklas Heyman Rönnblom Atli Ericson

Identifying the needs of tomorrow’s video consumers

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text in the footer area TV Media 2013 Study, Short Presentation | Commercial in confidence | © Ericsson AB 2013 | 2013-08-27 | (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

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Ericsson ConsumerLab annual research

100,000 RESPONDENTS

1.1 billion REPRESENTING

PEOPLE

15 STUDIED

MEGACITIES 40 MORE THAN

COUNTRIES

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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) Source: Ericsson ConsumerLab TV & Media 2013 Study

› 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

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Traditional TV Habits

Consumer TV/Video Consumption on a more than weekly basis

Scheduled broadcast TV

DVD/Blu-ray etc.

Pay-per-view 15% 17% 15%

31% 30%

27%

83% 79% 83%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013

Source: Ericsson ConsumerLab TV & Media 2013 Study 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

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On-Demand Habits

Streamed on-demand/time

shifted TV & Video incl.

YouTube

Own recorded broadcast

TV

Downloaded Movies &

TV shows

Source: Ericsson ConsumerLab TV & Media 2013 Study 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

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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

Source: Ericsson ConsumerLab TV & Media 2013 Study 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

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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 …

Source: Ericsson ConsumerLab TV & Media 2013 Study 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

Pe

op

le u

sin

g T

V (

PU

T)

Late night

impulse viewing

Emerging TV curve

(advanced viewers)

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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 computer2013

Desktop computer2012

Laptop 2013

Laptop 2012

Smartphone 2013

Smartphone 2012

Tablet 2013

Tablet 2012

Other screen 2013

Other screen 2012

At home

Away from home

Source: Ericsson ConsumerLab TV & Media 2013 Study 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

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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 relatedto the content I am currently watching

Use apps or browse the Internet to find out moreinformation about the content I am currently watching

Use social forums at the same time as watchingTV/Video content

Discuss the TV/video content that I am currentlywatching with others online

Watch two or more programs, live events or shows atthe same time

Compete with others watching the same show

Watch the same program or show from two differentcamera angles

Interact with the show through voting

Live betting on a sports event at the same time as youare watching

(Showing at least weekly usage among those who rank a viewing type as very important (7 on a 7-graded scale))

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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

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Prosuming TV & Video


(Example showing some common associations between source and type of content)

Older movies

New movies

TV-Shows

Illegal

downloading

Legal

downloading

Series

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

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› 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

Source: Ericsson ConsumerLab TV & Media 2013 Study BASE: Extended 9 markets (US, UK, Germany, Sweden, Spain, China, Taiwan, Brazil & South Korea)

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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 funt to use

› Available across devices

› Easy to share

We’re pimping out our Netflix

password across town. Ha ha!

Naomi, 28, US Linear TV

VOD

Relaxed viewing Appointment viewing

S-VOD is changing the traditional role of linear TV


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Piracy losing ground

Spain

0%

5%

10%

15%

20%

25%

30%

35%

40%

Source: Ericsson ConsumerLab TV & Media 2013 Study 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

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10,7%

9,8%

9,1%

8,5%

7,7%

6,6%

6,2%

5,9%

5,7%

5,3%

4,7%

4,4%

3,3%

2,9%

2,7%

2,4%

2,1%

2,1%

Free from ads/commercials

Excellent quality (HD quality)

Time shift/On demand

Usability, super simple interfaces

À la carte TV-/video content

Extreme quality (4K / 4xHD)

Push to see the content best suited for you…

My TV-/video content on all my devices

Access Internet on your traditional TV screen

Theatrical releases direcly in the TV,…

One search, watch & pay interface for online…

Advanced online video search (actors, lines,…

3D TV

Personalizable TV-screen info (Apps,…

Video telephony

Access Apps on your standard TV screen

Accessing/watching different camera angles…

Interactive TV

Important services 2013 Relative order

to last year

Source: Ericsson ConsumerLab TV & Media 2013 Study BASE: All 15 markets

The most important services/options when it to how consumers want their future TV/Video experience

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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

+3%

+5%

+3%

+1%

+3%

+1%

+2%

Compared to 2011

Source: Ericsson ConsumerLab TV & Media 2013 Study 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?

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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

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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


Ericsson ConsumerLab TV and Media 2013 Presentation

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