TV and Media Nigeria 2015...TV AND MEDIA in nigeria CONSUMERLAB How changing consumer needs are...
Transcript of TV and Media Nigeria 2015...TV AND MEDIA in nigeria CONSUMERLAB How changing consumer needs are...
TV AND MEDIA in nigeria
CONSUMERLAB
How changing consumer needs are creating a new media landscape
An Ericsson Consumer Insight Summary Report September 2015
the voice of the consumerEricsson ConsumerLab has 20 years’ experience of studying people’s behaviors and values, including the way they act and think about ICT products and services. Ericsson ConsumerLab provides unique insights on market and consumer trends. Ericsson ConsumerLab gains its knowledge through a global consumer research program based on interviews with 100,000 individuals each year, in more than 40 countries and 15 megacities – statistically representing the views of 1.1 billion people.
Both quantitative and qualitative methods are used, and hundreds of hours are spent with consumers from different cultures. To be close to the market and consumers, Ericsson ConsumerLab has analysts in all regions where Ericsson is present, developing a thorough global understanding of the ICT market and business models.
All reports can be found at: www.ericsson.com/consumerlab
The study was a combination of qualitative discussions and quantitative interviews that were held in 2014.
Qualitative There were 4 focus group discussions and 6 in-depth interviews conducted with male and female respondents in the 18–45 age group. All interactions happened in Lagos, Nigeria and were split between heavy and light users of TV and media. Heavy users are categorized as those who access TV and media content on any device for at least 15 hours per week, while light users are those who access content on any device for up to 7 hours per week.
Quantitative1,500 face-to-face interviews were conducted across 7 cities in Nigeria. These were Abuja, Enugu, Ibadan, Kaduna, Kano, Lagos and Port Harcourt. The interviews were conducted with male and female respondents aged 18–69 who view TV and media at least weekly. Overall, the data represents 24.9 million people living in Nigeria.
METHODOLOGY
2 ERICSSON CONSUMERLAB TV AND MEDIA IN NIGERIA
Contents 3 KEY FINDINGS
4 SHIFTING TIME AND SPACE
6 DIVERSE CONTENT CHOICES
8 WATCH ON DEMAND
9 STREAMING IS YET TO TAKE OFF
10 LIMITED CHOICES
11 NEW MODES OF DELIVERY
NIGERIA
72%
ERICSSON CONSUMERLAB TV AND MEDIA IN NIGERIA 3
Viewing habits are shifting away from traditional devices
On-demand viewing is still to catch up Consumers want to pick and choose payment and subscription methods
Growing interest in new video services
Streaming is yet to take off
57 percent of Nigerians 18–24 years old want to watch TV and video content at their convenience, while 67 percent want easy access to video content across all devices
Globally, 38 percent of consumers use on-demand, internet-based video services, while in Nigeria this is just 16 percent
55 percent of Nigerians want to pick and choose the channels they subscribe to
Over 50 percent of the Nigerians interviewed find that mobile video on-demand (M-VOD) and IPTV Triple Play are attractive services and are open to subscribing
72 percent believe that mobile operators should provide M-VOD, and mobile service providers and operators should offer IPTV services
76 percent of global consumers stream videos weekly, compared to 27 percent of Nigerians
50 percent of the time that Nigerians spend watching video is on laptops and smartphones
Only 36 percent of Nigerian consumers are satisfied with finding content online that suits their viewing habits and preferences
65 percent of the total spend on piracy is on physical media such as CDs and DVDs
Streaming issues and download speeds are the two most important factors affecting the satisfaction of those watching video content online
Key Findings
36%
Only 30 percent of Nigerians are satisfied with streaming over the internet
30%
Shifting digitalIncreasing ownership of digital devices is prompting Nigerians to explore new modes of content consumption. They want freedom and flexibility and this is manifested in the popularity of digital media and online content. However, poor connectivity and high data costs are
hampering their viewing choices, specifically when it comes to streaming and on-demand videos. This report explores in detail the TV/video viewing behavior of Nigerians as they slowly shift from traditional media to digital devices for their entertainment needs.
Tablet
Internet at home
Smart TV
15% 2%83%
Nigerians do not want to adhere to a specific device or schedule, and seek the freedom and flexibility to choose what they watch, when they watch it, and on which device.
This behavior is predominant among younger Nigerians. 67 percent of Nigerians aged 18–24 want to watch TV and video content across all devices, while 57 percent want the ability to watch TV/video content at their leisure (Figure 2). This is made possible due to the high ownership of smartphones compared to televisions or PCs (desktops/laptops), as shown in Figure 1a.
High smartphone ownership and a lack of availability of fixed broadband has resulted in mobile broadband being the most common way to connect to the internet. 83 percent of the Nigerian consumers rely solely on it (Figure 1b).
4 ERICSSON CONSUMERLAB TV AND MEDIA IN NIGERIA
Figure 1a: Device ownership and connectivity
Figure 1b: Mobile broadband is the preferred way to connect
Figure 2: Percentage of consumers who want freedom and flexibility when watching TV and video
SHIFTING TIME AND SPACE
Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015 Base: Internet users aged 16–65 in respective countries or regions
Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015Base: TV/media users who use the internet, aged 18–69
Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015. Global figures from Ericsson ConsumerLab, TV and media study, 2014. At least weekly viewers of video/TV with broadband at home, in 23 marketsBase: TV/media users aged 18–59
Global
18–24 year old Nigerians Nigeria (overall) Global
Nigeria Kenya
US Western Europe South Africa
Only fixed broadband
Only mobile broadband
Fixed broadband and mobile broadband
I would like to have smooth and easy access to TV/video content across all my devices
I want to decide when to watch TV/video content rather
than following a schedule
Smartphone
Regular TV
Laptop/PC
0% 20% 40% 80% 100%60%
67%
57%56%51%
42%
53%
FREEDOM TO WATCHYounger Nigerians want to choose what, when and how they watch video
In bed before falling asleep
At friends’ or relatives’ homes
At home during the evening
Out and about in the city/town/village
At home during middle of the day
At workplace or in school
While commuting or traveling
At home in the morning after getting up
In bed before getting up
Only one third of the total time spent watching TV/video is on television screens. The majority of time is spent watching video on other devices, such as laptops, smartphones and tablets. Figure 3 shows that around 50 percent of the total time spent consuming video is on smartphones and laptops. This implies that content consumption is no longer tied to a specific access technology, such as the traditional TV screen.
This change is primarily driven by a new consumer attitude: they want to choose when they watch TV and video content, rather than following a set schedule.
Figure 4 indicates that Nigerians watch content throughout the day, highlighting the importance of enabling them to consume video whenever and wherever. Figure 4 shows that most content consumption happens at home in the evening, with 85 percent of consumers watching TV and video at this time. The second most popular time to watch is in bed, before falling asleep (73 percent). Most of this viewing happens on personal devices.
ERICSSON CONSUMERLAB TV AND MEDIA IN NIGERIA 5
Figure 3: Share of time spent daily on devices watching TV and video
Figure 4: TV and video viewing habits across all devices - weekly
Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015 Base: TV/media users who use respective devices, aged 18–69
Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015. Global figures from Ericsson ConsumerLab, TV and media study, 2014. At least weekly viewers of video/TV with broadband at home, in 23 markets Base: TV/media users aged 18–59
TV
Nigeria
Laptop/PC
Global
Smartphone Tablet
Consumers across all age groups
36%
13%
73%
40%
85%
20%
59%
35%
26%
54%
43%
51%
30%
85%
12%
46%
19%
16%
38%
19%
26%
25%
85%Nigerians who watch video at home in the evenings
Content consumption in Nigeria is driven by the need for information, entertainment and education. As seen in this report, there is a difference in content preference across demographics. Figure 5 shows that when it comes to overall content consumption, including both online and linear TV, Nigerians across all age groups favor watching news and music videos.
While men prefer to watch live TV and video, such as sports (69 percent), 80 percent of women prefer content in the local language, as well as soap operas. There is high preference for international content across all age groups, with an emphasis on newly released international movies in English. Younger Nigerians and women like to stay updated with the latest trends around the world.
6 ERICSSON CONSUMERLAB TV AND MEDIA IN NIGERIA
DIVERSE CONTENT CHOICES
Figure 5: Preferred content types across age groups and gender
Even for local news, if something happens, you’ll get the information from the international channels first.”
Female, 25–40 years old
Female All Males
Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015, qualitative study
Males, older ageFemales, older age
> Nigerian
> International
> Nigerian
> International
> 18–29 years > Local - Africa Independent Television (AIT), Nigerian Television
Authority (NTA)
> International
> Soccer
SOAP OPERAS FASHION MOVIES MUSIC COMEDY ANIMATIONS NEWS SPORTS
PREFERRED CONTENT CHOICESNews and music videos are preferred across all age groups
Across all devices, 70 percent of Nigerians watch short videos and 76 percent of smartphone users watch them on their phones.
ERICSSON CONSUMERLAB TV AND MEDIA IN NIGERIA 7
Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015. Global figures from Ericsson ConsumerLab, TV and media study 2014. At least weekly viewers of video/TV with broadband at home, in 23 markets Base: TV/media users on the internet, aged 18–59
In an instant you can get online, download apps and get your information there.”
Female, 18–29 years oldFigure 6: Device preference for content types
Figure 7: Multi-tasking behavior – weekly
80%
100%
60%
40%
20%
0%
Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015Base: TV/media users on the internet and on respective devices, aged 18–69
Sports DocumentariesNews TV series (at an
added cost)
Short videos
Music videos
Local language movies or TV series
International movies or TV series
Live sports
Live events (not sports)
TV
Global
Smartphone
Nigeria
Laptop/PC Tablet
Multi-taskingNigerians multi-task while watching content online (Figure 7). The most common activity is searching online to discover more about the content they are viewing (56 percent).
This is followed by reading emails (50 percent). Compared to multi-tasking globally, Nigerian consumers show very similar patterns.
Read email while watching TV/video
content
Browse the internet to find out about the content
currently watching
Discuss online the TV/video content
currently watching
Watch two or more programs, live events or shows at the same time
57%
45%
30%26%
50%56%
35%
27%
Global
Nigeria Kenya
US Western Europe South Africa
8 ERICSSON CONSUMERLAB TV AND MEDIA IN NIGERIA
WATCH ON DEMANDEven though Nigerians are receptive to watching content online, they do not have high satisfaction levels with the experience. Only 36 percent of consumers are satisfied with finding the content of their choice online, while the speed of downloading and streaming issues also plays a large part in user satisfaction, at 32 percent and 30 percent respectively (Figure 8).
This could explain why the percentage of Nigerians who watch on-demand videos on the internet is very low, at only 16 percent. The global average is currently 38 percent (Figure 9).
Once you download video content, you can watch it anytime. When you’re streaming something, anything can happen and once your connection cuts off, you have to go back to the beginning.”
Female, 18–29 years old
Figure 8: Satisfaction with content available online
Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015Base: TV/media users over internet, aged 18–69
Source: Ericsson ConsumerLab, Analytical Platform, 2014 Base: Internet users aged 16–65
Figure 9: Watching video on the internet – weekly
Content according to viewing habits
Speed of downloading content
Speed of streaming content
36% 32% 30%
Watch paid video
Watch on-demand video
Watch live video
0% 10% 40%30%20%
16%Percentage of Nigerians who watch on-demand videos on the internet
ERICSSON CONSUMERLAB TV AND MEDIA IN NIGERIA 9
STREAMING IS YET TO TAKE OFFWith only 27 percent of Nigerian consumers streaming video, the country is yet to catch up with the global average for streaming (76 percent), as displayed in Figure 10.
As Figure 11 shows, streaming issues and download speeds are factors that affect satisfaction levels, alongside the availability of flexible data plans.
27 percent of Nigerians cite streaming issues as a key factor that influences their satisfaction when watching TV or video over the internet. 16 percent say the flexibility of their data plan is a major factor, and 15 percent state the download speed (Figure 11).
Streaming depends on the network service. At times it breaks, while other times it is smooth.”
Male, 29–40 years old
Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015. Global figures from Ericsson ConsumerLab, TV and Media study, 2014, at least weekly viewers of video/TV with broadband at home, in 23 markets Base: Viewers of TV and media, aged 18–69
Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015 Base: TV/media user on the internet, aged 18–69
Figure 10: The preferences of Nigerian consumers when watching video
Figure 11: Factors influencing satisfaction with watching TV/video over the internet
Watching Preferred Global average (watching)
Watching YouTube without buffering issues and streaming video or TV content at reduced cost is a plus. These issues prevent me from using YouTube.”
Male, 25–36 years old
Streamed videos Downloaded videos
27%
47%
29%
42%
76%
53%
Streaming issues
Video content
Flexibility of data plan
Availability of choice and variety of content
Speed of downloading
Getting content according to viewing habits
Ease of accessing preferred content
Watching without disruptions
Availability of free content through alternative means
27%
8%
16%
7%
15%
5%
12%
3%
8%
42%Nigerian consumers who prefer to watch downloaded videos
10 ERICSSON CONSUMERLAB TV AND MEDIA IN NIGERIA
LIMITED CHOICES
Figure 12: Share of monthly spending on selected items
Out of regular TV viewers in Nigeria, only 37 percent are satisfied with the choice and variety of available content. They prefer to choose and pay for the channels that they want. Current pay TV services offer limited customization capabilities.
Consumers feel that good-quality content on the internet is expensive. They have a low preference for paying for content separately, but might be inclined to pay for high-quality content in a bundle.
Global TV and media research has shown a decline in file sharing and illegal streaming services when easy-to-use and reasonably priced legal VOD services are available.
Analysis of monthly spending (Figure 12) shows that TV and media services, including cable and satellite
TV subscriptions, account for 27 percent of the average expenditure. Pirated media and content accounts for 16 percent of the total monthly expenditure, of which 65 percent is spent on CDs and DVDs.
The lack of fast and reliable connectivity, and also of good-quality content, as well as restrictive data charges, are major factors that drive piracy.
Subscription is preferredConsumers in Nigeria prefer to pay once and choose their content. Monthly subscriptions are the most favored option, more so than globally. 58 percent of TV and media users in Nigeria would like to pay a fixed monthly fee for on-demand TV content, compared to 44 percent globally.
I go with paid content, as the quality is always superb. With the free ones you’re sure to get low quality.”
Male, 18–29 years old
Source: Ericsson ConsumerLab TV and media in Nigeria 2015 Base: TV/media users aged 18–69
Voice calls
Satellite TV
Pirated content
Other non-genuine sources
Mobile internet
Fixed broadband and Wi-Fi
Theater or outdoor movies
Non-genuineinternet sources
Sources like CDs/DVDs
Cable TV
16%Monthly spending on pirated content is almost equal to spending on internet connectivity
16%
14%
33%
13%
20%
6%
21%
7%
5%
65%
During this research, two new TV and video service concepts were reviewed: IPTV Triple Play and M-VOD.
IPTV Triple Play allows access to multiple services over a single connection, providing on-demand content on TV, an internet connection and an internet-based telephone. IPTV Triple Play has limited linear TV watching capability and some free-to-air channels.
M-VOD includes the ability to watch high definition VOD on mobile devices.
Consumers perceive IPTV Triple Play and M-VOD as similar on most parameters. IPTV Triple Play is considered unique as it offers a high-speed internet connection along with on-demand TV and telephone services.
Figure 13 shows that over half of respondents feel that M-VOD and IPTV are attractive concepts and are likely to subscribe.
As Figure 14 shows, 72 percent of Nigerians believe that mobile operators should provide M-VOD services, while mobile service providers and DTH operators share almost equal preference for IPTV.
ERICSSON CONSUMERLAB TV AND MEDIA IN NIGERIA 11
new modes of delivery
Figure 13: M-VOD vs. IPTV Triple Play Figure 14: Ideal service providers for IPTV and M-VOD
IPTV Triple Play IPTV Triple PlayM-VOD M-VOD
Everyone would love to have M-VOD because you can use it anywhere, anytime.”
Female, 25–40 years old
I like that a Wi-Fi connection would mean you could use IPTV on your PC and other devices.”
Male, 18–29 years old
Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015Base: TV/media users aged 18–69
Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015Base: TV/media users aged 18–69
Consideration Internet companies
Likeliness to subscribe
TV/video content providers
AttractivenessCable/DTH operators
Usefulness Mobile operators
Willingness to try
Smartphone/tablet manufacturers
70% 54%
67% 53%
57% 49%
56% 46%
53% 28%
67% 31%
Uniqueness Others50% 4%
44% 4%
65% 72%
57% 53%
55% 47%
52% 20%
72%Nearly three-quarters of Nigerians believe that mobile operators should provide M-VOD services
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