typicallyapple

TheempoweredTV&mediaconsumer'sinfluenceEricssonConsumerLabAndersErlandsson,SeniorAdvisorZeynepAhmet,SeniorAdvisorTv&Media2015TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page2EricssonConsumerLabannualresearch1.
1billionREPRESENTINGPEOPLE100,000RESPONDENTS15STUDIEDMEGACITIES40MORETHANCOUNTRIESTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page3Representing~680millionConsumersQualitative:30in-depthinterviews(SanFrancisco,MexicoCity,Paris&Stockholm)Quantitative:20000onlineinterviews(1000/country)age16-59+booster>2500onlineinterviewsage60-69Base20Markets:Brazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,USSource:EricssonConsumerLabTV&Media2015StudyQualitativeandquantitativeQuantitative14500measuredandroidsmartphoneusers8industryexpertinterviewsSocialmediascanning6thANNUALTVandmediastudyTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page4HalfofviewingtimeisTVseries&moviesFamilymovies.
Morethanseries,familymovies,funnymovies.
SometimesIliketomix,startwithchildrenmoviesandthengoonwithactionmoviesandclosingwithafunnymovietogotosleephappy.
"-Veronica,40years,MexicoSource:EricssonConsumerLabTV&Media2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,US30hoursperweekistheaverageweeklyactiveviewingtimeAveragenumberofself-reportedweeklyhoursofactiveTV/videoviewing,bygender:TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page520112015StreamedondemandmoviesStreamedondemandmoviesStreamedondemandTVSeries&programsStreamedondemandTVSeriesStreamedondemandTVprograms90%increase121%increase2,9h/week6,0h/week45%ofstreamedondemandviewingoflongcontentisTVseriesTVSeriesisthenewblackAveragenumberofselfreportedweeklyhoursofactiveTV/videoviewing:Source:EricssonConsumerLabTV&Media2011&2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,China,Germany,Spain,SouthKorea,Sweden,Taiwan,UK,USTheworldofseriesisso,sohugenow,there'ssomanyofthem.
Andthat'stakenoverfromnormalfilmsfromcinema.
"-Anne,38years,FranceTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page61,92,32,73,03,816-2425-3435-4445-5960-69SeniorslovetheirLiveNewsSource:EricssonConsumerLabTV&Media2015StudyBASE:Populationaged16-69withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,USAveragenrofselfreportedhourswatchinglivenewsperweekperagegroup>80%higheraverageviewingtimeoflivenewsfor60-69yearolds,thanformillennials(thoseaged16-34)TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page78%3%33%24%34%32%19%28%5%13%20152011>3hours/dayAtleastdailyAtleastweeklyLessthanweeklyNeverYouTubeGrowsinimportancePercentageofconsumerswatchingYouTubewithdifferentfrequency[globalselfreportedfrequencyofviewing]Source:EricssonConsumerLabTV&Media2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,China,Germany,Spain,SouthKorea,Sweden,Taiwan,UK,US"MywifefixedouriPadandourdishwasherbywatchingYouTubeinstructionvideos.
Ifanuclearreactorstartedleaking,shewouldgotoYouTubeandthenvolunteertofixit.
"-Simon,44years,USA30%Watchhow-tovideoseachweek18%WatchgamingvideoseachweekTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page8THERoleofservicesvariesBETWEENgenerationsS-VODT-VOD/PPVDVRDVD/Blu-rayS-VODPiracyYouTubePlay/catch-upLinearTVYouTubePlay/catch-upDVRLinearTVSecondaryservicesOldergenerationsYoungergenerationsGo-toservicesTelevisionismostimportant.
AndYouTube.
"Colette,61yearsold,FranceTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page9DailyMediahabitsPercentageofpeoplewatchingdifferentmediatypesatleastonceperday**(globalaverageofselfreportedfrequencyofviewing)ScheduledlinearTVStreamedondemandvideo(YouTube,shortclips,movies,TV-series&programs)RecordedlinearTVSource:EricssonConsumerLabTV&Media2010-2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil*,China,Germany,Spain,SouthKorea*,Sweden,Taiwan,UK,US,*excludedin2010figures,**3yearsmovingaverage,,[Showing:Useonceperdayormore]0%25%50%75%100%201020112012201320142015~8IN10TeenagerswatchstreamedondemandTVandvideoatleastonceperday~8IN1060-69yearoldswatchscheduledlinearTVatleastonceperdayTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page10S-VODdrivesBingeViewing87%ofS-VODusersbingeviewatleastonceperweek,comparedto74%ofnon-SVODusers47%74%81%60%87%93%BingeviewatleastonceperdayBingeviewatleastonceperweekBingeviewatleastonceevery2ndweekS-VODUsersnonS-VODusersSource:EricssonConsumerLabTV&Media2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,USSelfreportedfrequencyofwatchingseveralTVseries,otherTVprogramsorusergeneratedcontent(UGC)episodesinarow(socalledbingeviewing)>50%bingedaily5%neverbingeTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page11ContentdrivesviewinghabitsPopularcontenthasahigherinfluenceTVseriesthatreleaseallofaseason'sepisodesatoncearepopularanddriveS-VODsubscriptionsDifferentviewingcyclesOver3,000peopletweetedthattheyhadfinishedtheentireseasonwithin4daysMentionsofwatchingall13episodesof'HouseofCards'Source:EricssonConsumerLabTVandmedia2015[Socialmediascanning,Twitter.
com]05001000150012-feb-1517-feb-1522-feb-1527-feb-1504-mar-1509-mar-15Posts'GameofThrones'relatedtweetsover30daysLaunched010000020000030000040000013-apr-0518-apr-0523-apr-0528-apr-0503-maj-0508-maj-05TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page12On-demandFrequencyUSSource:EricssonConsumerLabTV&Media2015StudyBASE:USPopulationaged16-59withbroadbandathomewhowatchanytypeofTV/Videoatleastweekly>50%ofthestudiedUSpopulationuseNetflixatleastonceaweek41%27%6%8%5%4%4%5%1%3%4%3%2%2%1%1%71%52%19%19%13%12%9%9%9%8%6%6%5%3%2%2%YouTubeNetflixAmazonPrimeHuluHBOGo/HBONowABC.
comAppleiTunesXfinityOn-demandCrackleVevoU-verseOn-demandTwitchVuduFiOSondemandPiratestreamingPirateFilesharingAtleastdailyAtleastweeklyPercentofpeopleusingeachon-demandserviceonadailyvs.
weeklybasis,US2015[self-reported]TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page13ConnectedTVScreens12%11%14%14%12%17%21%23%Wii,Xbox,PlayStationOtherSeparateboxforonlineTV/videoaccessGoogleChromecastAppleTVPercentageofconsumersthathaveanduseeachdevice[Self-reported]:Percentageofconsumersthatdonothave,butplantogeteachdevice[Self-reported]:Source:EricssonConsumerLabTV&Media2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,US867%areabletowatchinternetcontentontheirTVscreensathome,and…89%ofthesefeeltheycanaccessallormostappsandservicestheywant!
TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page140%25%50%75%100%201020112012201320142015TVscreenDesktopscreenLaptopscreenSmartphonescreenTabletscreenAshiftfromFixedtomobileDevicesBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil*,China,Germany,SouthKorea*,Spain,Sweden,Taiwan,UKandUS.
*excluded.
in2010figures,**3yearsmovingaverage,,Self-reportedshareoftotalweeklyTV/videoviewingtime,peryear,doneonrespectivedevice**TVscreen&desktopSmartphone,tablet&laptopTVscreen&desktopSmartphone,tablet&laptopSource:EricssonConsumerLabTV&Media2010-2015Study61%ofconsumerswatchTV&videoontheirsmartphones,anincreaseof71%since201242%thinkitisveryimportanttowatchtheirTVandVideocontentwherevertheyareTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page15Smartphonevideoviewing78%86%93%UKUSSouthKoreaProportionofsmartphoneuserswhowatchvideocontentontheirsmartphone,ODMmeasurementsMajorityofsmartphoneuserswatchsomeortheothervideocontentontheirsmartphoneThephenomenonistypicallydominantinSouthKoreawheresmartphoneisthewayoflifeamongitsusersBase:AndroidsmartphoneusersinUS,UKandSouthKoreaSource:EricssonConsumerLabTV&Media2015Study,[ConsumerLabAnalyticalPlatform,On-devicemeteringdata]TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page16ACHANGEINACCESSINGTVCONTENT57%72%75%74%78%Jan2014Apr2014Jul2014Oct2014Jan2015QuarterlymeasurementsofsmartphoneusersintheUSwhoaccessTVapps(suchasABC,HBOGO,CBSMobile)atleastonceontheirsmartphonesTVcontentisbeingincreasinglyaccessedviasmartphones,anditsreachhasgrownsignificantlyoverthepastyearBase:US,UsersaccessingEntertainmentTVcontentonlineviasmartphonesSource:EricssonConsumerLabTVandmedia2015[comScoreMobileMetrixJan2015]TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page17Millennials=MobileDeviceviewingBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil*,China,Germany,SouthKorea*,Spain,Sweden,Taiwan,UKandUS.
*excluded.
in2010figures,**3yearsmovingaverage,,Self-reportedshareoftotalweeklyTV/videoviewingtimebyagegroup,doneonrespectivedevice**TVscreen&desktopSmartphone,tablet&laptopTVscreen&desktopSmartphone,tablet&laptop0%25%50%75%100%16-1920-2425-3435-4445-59TVscreenDesktopscreenLaptopscreenSmartphonescreenTabletscreenSource:EricssonConsumerLabTV&Media2010-2015Study>60%ofallTV/videoviewinghoursarespentonamobiledevicescreenamongYoungstersTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page18millennialsusetheSmartphonetoo375292200164715440444836828414110148%39%35%37%33%35%20%25%30%35%40%45%50%55%60%05010015020025030035040045050018-2425-3435-4445-5455-6465+SmartphonesTabletsShareoftimeonSmartphoneMeasuredaverageminutespervisitorandmonthaswellasShareofTimebyAgeGroups–EntertainmentMultimedia**Entertainment–MultimediacategoryincomScoreencompassesallpaidandfreeon-demandvideoservicesBase:UsersaccessingEnt-MultimediacontentonlineviasmartphonesandtabletsEntertainment-MultimediaservicesareaccessedmorebyyoungerconsumersonmobiledevicesThoughmoretimeisspentontabletsacrossagegroups,shareoftimeonsmartphoneishigherforyoungerconsumersSource:EricssonConsumerLabTV&Media2015Study[comScoreMobileMetrixJan2015]TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page19UGCStilldominatemobileviewingMobileviewingissettochangeduetotherapidgrowthofS-VODPercentofconsumersthatwatcheachcontenttypeontheSmartphone[self-reported]4%4%5%6%6%6%7%8%8%9%11%33%ScheduledotherTVprogramsLiveeventsScheduledTVMoviesStreamed,On-demandotherTVprogramsScheduledTVseriesLivesportsRecordedcontentStreamed,On-demandTVseriesStreamed,On-demandmoviesLivenewsDownloadedcontentVideosmadebyotherconsumers9%14%16%17%17%29%29%38%40%42%49%52%Streamed,On-demandotherTVprogramsVideomadebyotherconsumersStreamed,On-demandTVseriesStreamed,On-demandmoviesLiveeventsDownloadedcontentLivesportsRecordedcontentScheduledotherTVprogramsLivenewsScheduledTV-seriesScheduledTVMoviesPercentofconsumersthatwatcheachcontenttypeontheTVScreen[Self-reported]BASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,SouthKorea,Spain,Sweden,Taiwan,Turkey,UK,UkraineandUSSource:EricssonConsumerLabTV&Media2015StudyTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page20Smartphoneandtabletonequalfootingintermsofshortvideo202252273588YoutubeNetflixMeasuredaverageminutespervisitorandmonthonOn-Demand/StreamingServices[SmartphoneVs.
Tablets]Base:UsersaccessingYouTubeandNetflixviasmartphonesortabletsrespectivelyTabletsandsmartphoneareequallypreferredforwatchingshortervideocontentHowever,TabletsarepreferredforwatchinglongerformatcontentlikeNetflixSource:EricssonConsumerLabTV&Media2015Study[comScoreMobileMetrixJan2015]TabletsSmartphonesSmartphonesTabletsTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page21CopingstrategiesUpgradetounlimiteddataplansLookforWi-FieverywhereWatchoffline/downloadedcontentSeamlessnessexpectedRegularcommutersLong-distancecommutersNeedaseamlessinternetconnectionInternationaltravelersDuringinternationalstaySource:EricssonConsumerLabTVandmedia2015[socialmediascanning,Twitter.
com]"TherebetterbeWi-Fionmyflight.
.
.
can'tcopewith13hourswithout@Netflix.
"#Netflix#HolidaysFollow"Literallyonthelongestbusrideandmy3GkeepscuttingoutsoIcan'twatch@Netflix"#Netflix#TravelingFollowTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page2243%57%33%37%74%29%33%22%49%87%73%19%45%6%8%64%7%8%5%16%96%46%WeeklyViewingSituationsInbedbeforegettingupAthomeduringthemorningWhilecommutingAtworkplaceorschoolAthomeduringthedayOutandaboutinthecitySittingate.
g.
acaféAteventsAtfriends'orrelatives'homesAthomeduringtheeveningInbedbeforefallingasleep16-1920-2425-3435-4445-5960-69Base:Populationaged16–69withbroadbandathomewhowatchanytypeofTV/videoatleastweeklyininBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,USSource:EricssonConsumerLabTV&Media2015StudyPercentageofconsumersthatonaweeklybasiswatchanytypeofTV/videocontentindifferentsituations,comparisonacrossagegroups[Self-reported]:TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page2316%24%6%21%31%2%AtleastdailyWeeklyMonthlyLessoftenNeverDon'tknowPlace-anddeviceshiftinggrows21%increaseinplace-anddeviceshiftingsincelastyear52%amongstS-VODusersplace-anddeviceshift!
ATHOMECOMMUTINGATWORKINTERNETCAFSelf-reportedfrequencyofwatchingaspecificTVprogram,showormovieononedevice,interruptorpauseitandthencontinuewatchingitonanotherdevice:Source:EricssonConsumerLabTV&Media2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,China,Germany,Spain,SouthKorea,Sweden,Taiwan,UK,US40%atleastonceperweekTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page2471%80%88%29%20%12%USSouthKoreaUKWi-FidataconsumptionCellular(Mobile)dataconsumptionNetworkimpactfromvideousageMeasuredproportionofWi-FivsCellulardatabeingusedforTVandVideoappsamongstsmartphonevideoviewersBase:AndroidusersthatwatchvideocontentontheirsmartphonesSource:EricssonConsumerLabTV&Media2015Study[ConsumerLabAnalyticalPlatform,On-devicemeteringdata]Measuredcellular(mobile)datausageratioforTVandVideoappsamongstsmartphonevideoviewerswith3Gvs4Gconnections:2,543USSouthKoreaUKXmoredata4Gusers3G4Gusers3G4Gusers3GXmoredataXmoredataTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page25PiracycanbebeatenPercentofpeopleusingeachon-demandservice,Spain2011vs2015Source:EricssonConsumerLabTV&Media2014-2015StudyBASE:USandSpainPopulationaged16-59withbroadbandathomewhowatchanytypeofTV/Videoatleastweekly2%3%14%25%26%29%42%58%92%8%0%13%30%9%15%24%30%84%20152011Percentofpeopleusingeachon-demandservice,US2011vs201596%25%25%22%19%18%16%14%10%7%5%2%84%29%32%9%4%5%2%20152011TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page26ThedecisionprocessesSource:EricssonConsumerLabTV&Media2015StudyTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page27Today,mostconsumersreceiveconstantTVandvideorecommendationsfromfriends,reviews,etc.
Thismeansthatthechallengeisnotnecessarilyjustdiscoveringcontent,butrememberingwhattolookforatthemomentofviewing.
DISCOVERINGANDREMEMBERINGCONTENTSource:EricssonConsumerLabTVandmedia2015ArecommendationengineshouldevolvetoincludeinfluencestheconsumerhashadoutsideoftheserviceThecontentdiscoveryprocessthroughoutadaySocialrecommendationsInfluencers,reviews,trailersetc.
TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page28ChallengeswithcurrentRecommendationfeaturesPersonalrecommendationThefactthatsomeNetflixrecommendationsmaybesoaccurate,leavesthesubscriberinshockandalmostgeneratesafeelofabreachinprivacySharedaccountsConsumersunhappywithinappropriaterecommendations,isoftentheresultofsharedaccountsandprofileswithfamilyandfriendsUnrelatedrecommendationsSomeconsumersblametheproviderforbaddeliveryofrecommendations,sincetheyareunablethemselvestounderstandwhytheyreceiveitSource:EricssonConsumerLabTV&Media2015Study[SocialMediascanning,Twitter.
com]"Netflix'ssuggestionofcategorybasedonmyviewing'ViolentSupernaturalMoviesfrom1980s'.
Whatdoesthatsayaboutme"#RecommendedFollow"No,netflix,Idon'twantrecommendationbasedonMerlin,I'malreadywatchingthat"#Privacy#NetflixFollow"IopenedupmyHuluappandlookat'"Showsyouwatch"tab,wasconfuseduntilIrememberedIsharetheaccount"#Privacy#HuluFollowTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page29RecommendationenginesfailtodayRecommendationenginesarenotperceivedassmartenoughwhenrecommendedtitleshavealreadybeenwatched,areseeminglyrelevant,thataretooobviousorappearcompletelyweirdandun-relatedPersonalrecommendationsarenotperceivedaspersonalbutratherrelativelygeneralSimilarrecommendationskeeprecurringoverandoveragainTherecommendationsfailtosurpriseandinspireSocialrecommendationsareperceivedasmoreusefulandreliableIt'slike1in10recommendationsthatyougetonNetflixthat'sactuallyrelevantforyou…-Johan,38years,SwedenButalsopeopledopostlikeifthey'reintolikenewshowsandstufflikethat.
They'llbelikeohmyGodthisepisodeiscrazy.
AndIdotrustthose.
Igotintonewgenresthroughthat.
"-Melinda,28years,USASource:EricssonConsumerLabTV&Media2015StudyTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page30Consumers'default'whenfindingcontentistoodifficultTheconsumerstatedfrequencyofdifficultyinfindingsomethingtowatchontheirtraditionalbroadcastTVservice:10%7%28%19%31%LessoftenOnceperweekSeveraltimesperweekOnceperdaySeveraltimesperdaySource:EricssonConsumerLabTV&Media2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,US50%can'tfindanythingtowatchatleastonceeverydayIDEAOFVIEWINGACTUALVIEWINGDAY1ACTUALVIEWINGDAY2TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page31TheguidedconsumerintraditionalbroadcastTVThegreatestinfluencesforconsumersindecidingwhattowatchontheirbroadcastTVservice:6%7%18%29%40%RecommendationsbasedonwhatotherswhowatchedthishavealsowatchedUserratings–Lookathowotherusershaveratedmovies,TV-seriesRecommendationsfromfriendsandfamilyAdvertisements(trailers)forTVprogramsBrowsingthroughthetitlesintheTV-guidewithintheserviceSource:EricssonConsumerLabTV&Media2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,USConsumers'perceptionoftheeaseofnavigatingintheirbroadcastTVservice[Self-reported]:2%6%26%26%32%IfinditverydifficulttonavigateandfindcontentIfinditdifficulttonavigateandfindcontentIfinditneithereasynordifficulttonavigateandfindcontentIfinditveryeasytonavigateandfindcontentIfinditeasytonavigateandfindcontentOnly29%ofbroadcastTVviewersaresatisfiedwiththequalityandlevelofdetailintheircurrentTVguideTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page32Relianceonaidforcontentdiscovery36%25%23%16%7%5%NetflixUsersOverallTVVideoUsersNetflixUsersOverallTVVideoUsersNetflixUsersOverallTVVideoUsersIMDBFandangoMoviefoneBase:18+SmartphoneUserswhovisitNetflixorconsumeTV/VideoviatheirSmartphones(BrowserorApp)Source:EricssonConsumerLabTV&Media2015Study[comScoreMobileMetrixJan2015]NetflixusersaremorelikelytobedependentoncontentdiscoverysitesMeasuredpercentageofsmartphoneusersthatwatchNetflixorwatchTVvideoontheirsmartphonesandaccessdifferentcontentdiscoverysites:TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page33THEPRICEOFPERSONALINFORMATION1in4TV/videoconsumersareopentoprovidingpersonaldatatogetmoreaccuraterecommendationsPercentageofconsumerswhoareinterestedindifferentrecommendationfeaturesforcontentandTVservices(self-reported)Base:Populationaged16–59withbroadbandathomewhowatchanytypeofTV/videoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,US32%32%31%22%PersonalizedTVserviceofferingbasedonownviewinghabitsPersonalizedcontentrecommendationbasedonownratingsofpreviouslywatchedcontentPersonalizedcontentrecommendationbasedonownviewinghabits,age,genderandzipcodeContentrecommendationsthatarenotbasedonanypersonalinformationOKwithout-of-servicebehavioraltrackingActivelyprovidepersonalinformationOKwithin-servicebehavioraltrackingOKwithprovidingpreferenceswhenoptingintotheserviceSource:EricssonConsumerLabTV&Media2015StudyTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page3420%53%27%29%48%23%IamveryuncomfortableIndifferentIamverycomfortableAge35+Millennials(age16-34)EnoughTrusttoprovidepersonaldataComfortlevelforconsumerswithregardstoinformationtrackingaboutbehaviorsandpreferences,inordertoreceiveanimprovedviewingexperience[Self-reported]:1in2consumerstrustthattheircurrentTVserviceproviderhandlestheirpersonaldatasecurelyandresponsiblySource:EricssonConsumerLabTV&Media2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,USMillennialshavethehighestacceptancetoprovidingpersonalinformationtoimproverecommendationsTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page357%17%10%15%40%11%8%17%9%14%37%15%CordcuttingremainsthesameCord-cuttersoverayearagoThosewhooncepaidformanagedTVbuteliminatedspendingover12monthsagoCord-cutterspast12monthThosewhooncepaidformanagedTVbuteliminatedspendinglastyearCord-shaverspast12monthManagedTVsubscriberswhohavedecreasedspendingCord-neversThosewhohaveneverpaidformanagedTVCorders–unchangedpast12monthManagedTVsubscriberswhohavenotchangedspendingCorders–increasedpast12monthManagedTVsubscriberswhohaveincreasedspendingSelf-reportedchangesinhouseholdspendingonmanagedTVservices,inthepast12months,2014answerscomparedto2015:20152014Base:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,China,Germany,Spain,SouthKorea,Sweden,Taiwan,UK,USSource:EricssonConsumerLabTV&Media2014&2015StudyTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page3611%11%16%17%33%47%PayingforusingotherTV/Videointernetservicesinstead(e.
g.
Netflix,AmazonPrime)I'mnotsatisfiedwithhowourmanagedTV-serviceworksNopackagesuitsme,Ican'tcustomizemyownpackageUsingotherfreeTV/Videointernetservicesinstead(e.
g.
Hulu,YouTube)DonotwatchenoughTVtojustifythecostWantedorneededtosavemoneyreasonstoreduceorcutSelf-reportedchangesinhouseholdspendingonmanagedTV,inthepast12months:ReasonstoeliminatethehouseholdmanagedTVpackage:BASEleftgraph:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,China,Germany,Spain,SouthKorea,Sweden,Taiwan,UK,USBASErightgraph::Populationaged16-59withbroadbandathomewhowatchanytypeofTV/Videoatleastweekly,andhavereducedoreliminatedtheirmanagedTVpackageinBrazil,China,Germany,Spain,SouthKorea,Sweden,Taiwan,UK,USSource:EricssonConsumerLabTV&Media2015Study8%17%9%14%37%15%Cord-cuttersoverayearagoCord-cutterspast12monthCord-shaverspast12monthCord-neversCorders–unchangedpast12monthCorders–increasedpast12month2015TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page37AnexplodingnumberofoptionsareavailabletoviewerswhowanttoditchtheirtraditionalTVsubscriptionsbutnotforsaketheirtelevision-watchinghabitsWithabroadbandsubscriptionandastreamingdevice,peoplehavemorefreedomtopayforwhattheywanttowatchanddecidehowtheywanttowatchitCordCutting-AneasychoiceSource:EricssonConsumerLabTVandmedia2015[Socialmediascanning,Twitter.
com]"AppleTViswortheverypenny.
Makescord-cuttingsoeasy!
!
"#AppleTVFollow"I'llditchcableifApplereleasesaTVstreamingservice.
MightconsiderSlingTV,@Huluand@Netflixtoo!
"#Apple#SlingTv#Netflix"DecidedthatTVisn'timportant.
I'mcuttingthecord!
CanyousendmeyourNetflixpassword"#NetflixFollowFollowTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page38NoclearvalueforcordneversReasonsforneverpayingamanagedTVservice:6%6%15%18%21%58%ThereistoomuchadvertisingonmanagedTVMylivingsituationdoesn'tallowmetohaveamanagedTVserviceIgetalltheTVandvideocontentIneedfromdifferentotherservices(e.
g.
Netflix,YouTube)IfeelamanagedTVserviceisnotworththecostIcan'taffordamanagedTVserviceIhavenotfelttheneedtohaveamanagedTVserviceSource:EricssonConsumerLabTV&Media2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,US[thosewhohaveneverpaidforamanagedTVservice]REASONSTOAVOIDTVprovidersgivelittlevalueformoneySavemoneyLimitedhabitsofviewinglinearTVLinearTVcaneasilybecomeatimethiefineverydaylifeOTTservicesarereadilyavailableWearinesswithTVadvertisingTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page39ContinuingwithoutAcordBARRIERSTOPAYINGFORMANAGEDTVPercentageofcord-neversthatmayormaynotpayfortraditionalmanagedTVservicesinthefuture[Self-reported]:Source:EricssonConsumerLabTV&Media2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,US[thosewhohaveneverpaidforamanagedTVservice]50%34%16%OTTondemandservicesalreadycatertocoreneedsManagedTVfeelsredundantLimitedperceivedvalueinincreasedTVandvideoviewingMorevalueformoneywithOTToptionsNoacceptancetohavingbindingcontractsNoDon'tknowYesTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page40CordneversconsumelessSource:EricssonConsumerLabTV&Media2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,USTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page4129%37%15%19%43%15%12%8%18%75%56%IncomparisonwithmanagedTVconsumers,onadailybasiscord-nevers:Spendonehourlesswatchingscheduledbroadcastmovies,seriesandotherprograms,aswellaslivecontentSpendlesstimeviewingdownloadedorstreamedon-demandseries,moviesandotherprogramsWatchYouTubeclipsalmostasoftenThehabitsofCord-neversInbedbeforegettingupAthomeduringthemorningWhilecommutingAtworkplaceorschoolAthomeduringthedayOutandaboutinthecitySittingate.
g.
acaféAteventsAtfriends'orrelatives'homesAthomeduringtheeveningInbedbeforefallingasleepCord-cuttersoverayearagoCord-shaverspast12monthsCord-cutterspast12monthsCorders–unchangedpast12monthsCord-neversCorders–increasedpast12monthsBase:Populationaged16–59withbroadbandathomewhowatchanytypeofTV/videoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,USSource:EricssonConsumerLabTV&Media2015StudyTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page42ADDINGNEWSERVICESWhenmanagedTVisnotanoption,consumersactivelysearchforotherservicesthatcancatertotheirneeds,therefore,theirdevicesmaycontainnumerousappsandservicesPROMINENTCord-CutterhabitsTABLETSRULEMoreconvenientthanlaptopsLargerscreenthansmartphonesEasytomovearoundFewerdistractionsthatinterruptviewingNEWNEWSCHANNELSFacebookGetupdatesfromtheirnetworkandwatchvideosTwitterFollowthosewhopostnewsandwatchnewsclipsYouTubeWatchinghighlightsonYouTubeSource:EricssonConsumerLabTVandmedia2015"Ionlywatch@HBONowmovies.
What'sregularTV"#HBOFollow"Acord-cutter'sdream:TivoRoamio+SlingTV.
Makeithappen!
"#TivoRoamio#SlingTV#CordCuttingFollowTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page43EventhoughmanagedTVisupfornegotiationinmanyhouseholds,thereareanumberofargumentstokeepit.
RationalesforkeepingthecordOldhabitsdiehardAneasyoptionforrelaxationBestforbackgroundviewingSpoilersinsocialmediaStillahouseholdcampfireSociallyrewardingexperienceLivecontentPremiereviewingSource:EricssonConsumerLabTVandmedia2015EricssonAB2015|TVandmedia2015|2015-07-20|Page43TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page4428%35%40%41%42%45%48%48%55%19%29%26%39%45%36%45%41%52%InteractiveTVDubbedAudioMyTV-/Videocontentanywhere4K/UHDqualitylacarteTV-/videopackageTheatricalreleasesFreefromads/commercialsTimeshift/OndemandHDquality20152011importanceofTVMediafeatures-TRENDSPercentageofconsumersthatsayeachTVMediafeatureisimportant(Showingtop2answerson7-gradedscale):Source:EricssonConsumerLabTV&Media2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,China,Germany,Spain,SouthKorea,Sweden,Taiwan,UK,US[Interest,top2answerson7-gradedscale]TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page4534%27%31%27%25%30%8%10%7%34%30%26%25%23%23%20%13%11%HDqualityFreefromads/commercials4K/UHDTVqualityOndemand/TimeshiftlacarteTV-/videopackageTheatricalreleasesMyTV-/VideocontentanywhereDubbedaudioInteractiveTV20112015TVMediafeaturesworthpayingfor–TrendsPercentageofconsumersthatsayeachTVMediafeatureisworthpayingextrafor:Source:EricssonConsumerLabTV&Media2011&2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,China,Germany,Spain,SouthKorea,Sweden,Taiwan,UK,USTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page46InsearchofanewExperience11%22%56%No,IprefertogetthemfromdifferentprovidersYes,evenifitcostsasmuchasthesumoftheindividualservicesYes,butonlyifithelpsmetosavemoneyPercentageofconsumerspreferringtoreceivetheirTV-service,internetandmobileservicefromthesameprovider[Self-reported]:BASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,USGreatoverallexperienceGreatcontentGreatflexibility5%5%12%78%YesIhave,becauseIwantedtowaitforawhileuntiltheyofferednewandinterestingcontentagainYesIhave,becauseIhadalreadyseenmostofthetitlesofferedbytheserviceYesIhave,becauseIwantedtodecreasemyTVandentertainmentcostsNoIhaven'tdonethisPercentageofconsumerspausingormakinganychangestotheirOTTsubscriptionforaperiodoftime[Self-reported]:Source:EricssonConsumerLabTV&Media2015StudyTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page47ExpectationsonAdvertisingPossibletoskipadsAdblockersavailableFewerbreaksandoftenonlyatthebeginningEASIERTOCOPEWITHONLINEADSAdsruintheotherwisehighqualityexperienceofwatchingprioritycontentonthebigTVFocusedviewingonscheduledlinearTVistoointerruptedbyadsHIGHERDEMANDSONTHETVEXPERIENCEOnlineadshaveatendencytobeslightlymorerelevant/personalOnlineadsareslightlymorevariedandthusbearableONLINEADSAREMORERELEVANTPercentageofconsumersengagedinotheractivitiesinordertoavoidwatchingads[Self-reported]:Source:EricssonConsumerLabTV&Media2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,USTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page48PreferredtypesofadvertisingYouTubehasadvertisementsbutyoucanskiptheminthreetofivesecondswhichisprettyconvenient.
AndIthinkbecauseI'vejustbeensuchanInternetpersonfromearlychildhood,I'mprettygoodattuningoutadvertisementsingeneral.
"-Melinda,28years,USABASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,USSource:EricssonConsumerLabTV&Media2015Study43%ofconsumersprefertowatchpersonalizedadsbasedonviewinghabitsanddemographicsTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page49TheTV/MediabudgetSelf-reportedhouseholdmonthlyspendingonTVandvideorelatedservices48%9%3%6%9%25%~$140/monthManagedTV(e.
g.
cableTV)S-VODservicesT-VODservicesBuyingorrentingphysicalmedia(e.
g.
DVDs)Cinema/movietheatervisitsFixedinternetsubscriptionBase:USPopulationaged16–59withbroadbandathomewhowatchanytypeofTV/videoatleastweeklySource:EricssonConsumerLabTVandmediastudies2011–2015ForconsumersthatarenotyetOTTusers,thenotionofaTV/videobudgetseemsirrelevant,yetheavyOTTusersfeelthattheyhavetokeeptrackofalltheservicestheypayforandthetotalcost.
TVPROVIDERONLYBudgetisirrelevantTVPROVIDER+1OTTBudgetisnotamainconcernMULTIPLEOTTSERVICESBudgetisimportantEricssonAB2015|TVandmedia2015|2015-07-20|Page49TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page50Self-reportedestimatedmonthlyspendingevolution–USMonthlyMediaSpendingEvolutionBase:USPopulationaged16–59withbroadbandathomewhowatchanytypeofTV/videoatleastweeklySource:EricssonConsumerLabTVandmediastudies2011–2015Self-reportedestimatedmonthlyspendingbreakdown–US(excludingfixedinternetsubscriptions)63%12%5%12%7%66%9%4%14%7%20142015~$103~$105ManagedTV(e.
g.
cableTV)S-VODdevicesT-VODservicesCinema/movietheatervisitsPhysicalmediae.
g.
DVDs)Physicalmedia(e.
g.
DVD)Cinema/movietheaterT-VODservicesS-VODservicesManagedTVTOTAL2011/122014/1586USD104USDIncreaseNochangeIncreaseIncreaseNochangeTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page51TV/VideoServiceSatisfaction48%35%28%25%27%48%44%46%49%38%RecommendationGetusefulrecommendationsPriceThepricecomparedtowhatIgetMobilityAbilitytowatchonanydeviceanywhereAvailablecontentAmountandtypeofcontentVideoqualityPictureandsoundBase:USPopulationaged16–59withbroadbandathomewhowatchanytypeofTV/videoatleastweeklySource:EricssonConsumerLabTVandmediastudies2015On-demandTV/videoservicesTraditionallinearTVservicesSatisfactionwithquality,content,mobility,priceandrecommendationsamongthosewhouseit,anonymizeddistributionfortheUS:TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page52TraditionalTVServicesvson-demandservicesBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,USSource:EricssonConsumerLabTV&Media2015StudyTVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page53TVhasbecomeacombinationoflinear,ondemandcapabilitiesandcatch-upservices,whichisconsequentialformanagedTVusers.
THEWORLDOFENTERTAINMENTLinearchannelsT-VODOnlinecatch-upDVRTRADITIONALUSEREXPERIENCEUSEREXPERIENCERATIONALETODAYWorldofentertainmentLinearchannelsT-VODOnlinecatch-upDVRS-VODSource:EricssonConsumerLabTVandmedia2015TVMedia2015ConsumerInsightsExternalPresentation|EricssonAB2015|2015-12-16|Page54EmbracingtheseamlessexperienceTV/videoconsumersaregrowingincreasinglywearyoftech,devices,boxes,remotecontrolsandcables.
There'slittleaddedvalueinhavingTV/videotechnologyondisplay.
EverythingshouldbecompatiblewitheverythingAslittle'intermediary'technologyaspossibleThe'parts'ofthetechnologyandhardwaresetupshouldpreferablynotbevisiblePercentageofconsumersinterestedinaTV/videoservicethatcombinesliveTVwithOn-demandservicesoneveryscreeninanintegratedexperienceincludinggettingeverythingononemonthlybill:Source:EricssonConsumerLabTV&Media2015StudyBASE:Populationaged16-59withbroadbandathomewhowatchanytypeofTV/VideoatleastweeklyinBrazil,Canada,China,Colombia,France,Germany,Greece,Ireland,Italy,Mexico,Portugal,Russia,Spain,SouthKorea,Sweden,Taiwan,Turkey,UK,Ukraine,US