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TV & Video Consumer Trends 2011 - Ericsson

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<strong>TV</strong> & <strong>Video</strong><br />

<strong>2011</strong><br />

<strong>Consumer</strong> <strong>Trends</strong><br />

Global Version<br />

<strong>Ericsson</strong> <strong>Consumer</strong>Lab<br />

<strong>2011</strong>-11-01<br />

Anders Erlandsson, Niklas<br />

Rönnblom, Atli Ericson<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 1 (62)


<strong>Ericsson</strong> <strong>Consumer</strong>Lab<br />

› The voice of the consumer into <strong>Ericsson</strong> since 1995<br />

– Research representing opinions of more than 1.1 billion people<br />

– More than 80 000 Interviews every year<br />

– More than 40 countries worldwide<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 2 (62)<br />

Operators and<br />

service providers<br />

<strong>Consumer</strong>s


Table of Content<br />

› <strong>TV</strong>/<strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong><br />

› Creating your own <strong>TV</strong>/<strong>Video</strong> experience<br />

› The Role of Devices<br />

› <strong>Consumer</strong> Spending & Willingness to Pay<br />

› <strong>TV</strong>/<strong>Video</strong> Services and Features<br />

– Ranking<br />

– App <strong>TV</strong><br />

– Internet Add-ons<br />

– 3D <strong>TV</strong><br />

– Quality<br />

– Recommendations<br />

– Social <strong>TV</strong><br />

› Conclusions<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 3 (62)


Qualitative & quantitative<br />

22 households / 13000 <strong>TV</strong> viewers<br />

Representing the views of more than 430 M <strong>Consumer</strong>s<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 4 (62)<br />

Qualitative & quantitative<br />

Quantitative


Sample representative for<br />

more than 430 m consumers<br />

Population aged 16-59:<br />

Representativity of<br />

sample (16-59) in %:<br />

Representativity of<br />

sample (16-59) in size:<br />

Population aged 16-59:<br />

Representativity of<br />

sample (16-59) in %:<br />

Representativity of<br />

sample (16-59) in size:<br />

China<br />

urban<br />

Germany Spain Taiwan Sweden<br />

330 M 50 M 26 M 16 M 5 M<br />

42% 65% 57%* 79%* 76%<br />

139 M 33 M 15 M 13 M 4 M<br />

Brazil<br />

urban<br />

87 M<br />

25%<br />

22 M<br />

*) estimations using knowledge from similar markets<br />

Korea Australia Russia Netherlands Austria<br />

33 M 13 M 71 M 10 M 5 M<br />

80% 66% 35% 73% 58%<br />

27 M 9 M 25 M 7 M 3 M<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, Urban sample in China, Brazil & Russia, National sample all other markets<br />

urban<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 5 (62)<br />

UK<br />

36 M<br />

70%<br />

25 M<br />

US<br />

175 M<br />

67%<br />

117 M<br />

Total<br />

<strong>2011</strong><br />

858 M<br />

51%<br />

>430 M<br />

13 Markets


<strong>TV</strong>/<strong>Video</strong><br />

<strong>Consumer</strong> trends<br />

Changes in <strong>Consumer</strong> behaviour


<strong>Consumer</strong> <strong>TV</strong>/<strong>Video</strong> Viewing<br />

Habits comparison 2010-<strong>2011</strong><br />

› More than 8 out of 10 still<br />

watch broadcast <strong>TV</strong><br />

several times per week<br />

› Slightly decreased<br />

recording of broadcast<br />

<strong>TV</strong> 48% (53%)<br />

› More than 50% (45%)<br />

use video on-demand<br />

(streamed or<br />

downloaded content)<br />

several times per week<br />

Scheduled broadcast<br />

<strong>TV</strong><br />

Recorded broadcast<br />

<strong>TV</strong><br />

Short video clips, e.g.<br />

Youtube<br />

Watch DVD/Blu-ray<br />

etc<br />

Streamed <strong>TV</strong> shows<br />

Downloaded video<br />

content<br />

Streamed Movies<br />

Pay-per-view<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 7 (62)<br />

<strong>Consumer</strong> <strong>TV</strong>/<strong>Video</strong> Viewing Habits (several times/week)<br />

15<br />

15<br />

31<br />

31<br />

30<br />

33<br />

34<br />

36<br />

35<br />

39<br />

48<br />

50<br />

49<br />

0 20 40 60 80 100<br />

Question: How often do you use the following services?<br />

Base: All (US, UK, Sweden, Germany, Spain, China and Taiwan)<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong> & <strong>Ericsson</strong> <strong>Consumer</strong>Lab Multiscreen Media Consumption study 2010<br />

53<br />

85<br />

88<br />

<strong>2011</strong><br />

2010<br />

It’s impossible for me to<br />

DVR that stuff because<br />

in this day and age you<br />

can’t watch a ball game<br />

after it’s been played!<br />

Mike, 32, US<br />

%


<strong>TV</strong>/<strong>Video</strong> <strong>Consumer</strong> trends<br />

<strong>Consumer</strong>s have begun to pay for VOD services,<br />

spending on average > €9 per month<br />

VOD<br />

COMMERCIAL VOD<br />

SERVICES ARE TAKING<br />

OFF IN THE US…<br />

Three main reasons<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 8 (62)<br />

More new and old content to choose from<br />

More user friendly and simple<br />

Attractive price models and price levels


<strong>TV</strong>/<strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong><br />

From…<br />

What is on<br />

right now?<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> & <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong><br />

…to:<br />

What do I feel<br />

like watching<br />

right now?<br />

And now also:<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 9 (62)<br />

Who else is<br />

watching this<br />

right now?


Activities While Watching <strong>TV</strong><br />

Talk with others in the<br />

same room<br />

Eat in front of the <strong>TV</strong><br />

Browse Internet<br />

Talking on the phone<br />

Use social forums or blogs<br />

(e.g. Facebook, Twitter)<br />

Reading/studying<br />

Chat (e.g. MSN, Skype,<br />

Facebook chat)<br />

Play games (e.g. Angry<br />

birds, World of Warcraft)<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 10 (62)<br />

26<br />

33<br />

33<br />

0 10 20 30 40 50 60 70 80 %<br />

More than 40% use Social Media while watching <strong>TV</strong><br />

(on a weekly basis)<br />

Question: Which activities do you do at the same time as you are watching <strong>TV</strong>?<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: ALL, 13 Markets<br />

42<br />

50<br />

64<br />

68<br />

68


“Creating” your own<br />

<strong>TV</strong>/<strong>Video</strong> Experience<br />

The consumer logic


The consumer logic<br />

› I want to experience this<br />

particular content…<br />

› Which is the most convenient<br />

way to do that?...<br />

› Which technology and which<br />

sources can I use to access it?<br />

› Ok, I will customize a <strong>TV</strong> setup<br />

that gives me convenient access<br />

to this content!<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 12 (62)<br />

CONTENT


Focus on the Experience<br />

<strong>Consumer</strong>s think in terms of experiencing content, not the<br />

specific technology<br />

› Technology & methods<br />

› Individual functions<br />

› Services<br />

Question: To what degree do you agree to the following statements? (top 2 out of 7)<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> & <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: All 13 markets<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 13 (62)<br />

› The overall experience<br />

› Focus on experiencing<br />

content<br />

32% - It is not important to own or store<br />

<strong>TV</strong>/video content. The important thing is<br />

to always have access to it online


When the experience fails…<br />

@<br />

“Internet is an experience, not a technology!”<br />

@<br />

› Internet is a daily habit<br />

› We expect a certain experience<br />

– User friendly<br />

– Limitless<br />

– Efficient and fast<br />

@<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 14 (62)<br />

› Internet enabled <strong>TV</strong>’s provide<br />

something else<br />

– Hard to control and navigate<br />

– Restricted and limited<br />

– Slow<br />

@<br />

Internet on the <strong>TV</strong> is just inferior. It takes<br />

way too long..<br />

Franz, 31, Germany


The Role Of Devices


The role of devices<br />

The role of devices is changing…<br />

From accessing devices… …to accessing content!<br />

Question: To what degree do you agree to the following statements? (top 2 out of 7)<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> & <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: All 13 markets<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 16 (62)<br />

35% - There is no longer any need to<br />

buy/rent DVD/Blu-rays - everything I<br />

need is available through the Internet


The PC and physical media is<br />

leaving the <strong>TV</strong> equation<br />

Broadcast<br />

channels<br />

2010<br />

+ + +<br />

Streamed,<br />

DL files<br />

DVD &<br />

Blue-Ray<br />

Broadcast<br />

& Catch up<br />

<strong>2011</strong><br />

Streamed<br />

& VOD<br />

› Built-in or separate smart boxes makes<br />

on-demand super simple<br />

› <strong>Consumer</strong>s are “creating” their own remotes<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 17 (62)<br />

+<br />

Enhanced<br />

remote<br />

Broadcast,<br />

Catch up,<br />

Streamed & VOD<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> & <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong> & <strong>Ericsson</strong> <strong>Consumer</strong>Lab Multiscreen Media Consumption study 2010<br />

Beyond 2013<br />

+<br />

Enhanced remote<br />

& true mobile<br />

<strong>TV</strong>/<strong>Video</strong> habits<br />

What I love about the Apple <strong>TV</strong><br />

is that I can throw anything on<br />

the <strong>TV</strong> from my phone, like<br />

Youtube at parties!<br />

John, 14, US


Hours/week watching on<br />

different devices<br />

Tablet users are heavy consumers of <strong>TV</strong>/<strong>Video</strong> outside the home<br />

<strong>TV</strong>-Screen<br />

Desktop computer<br />

Laptop<br />

Smartphone<br />

Portable video player<br />

Tablet<br />

Other screen<br />

At home Away from home<br />

0 2 4 6 8 10 12 14 16<br />

Question: How many hours per week do you actively watch <strong>TV</strong> or other video content on the following screens in your household/away from home?<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> & <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: Have and use resp. device, 13 markets<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 18 (62)<br />

Average<br />

hours per<br />

week


The role of Devices – Tablet<br />

Six roles of the tablet for <strong>TV</strong>/video consumption…<br />

1. Enhanced <strong>TV</strong> remote<br />

6. Alternate screen<br />

2. Remote DVR<br />

management<br />

5. Game console<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 19 (62)<br />

3. Social tool<br />

4. Content discovery<br />

& push to main screen


The role of devices – Smartphone<br />

Five roles of the smartphone for <strong>TV</strong>/video consumption…<br />

1. <strong>Video</strong> clip screen<br />

5. <strong>TV</strong> schedule<br />

2. Enhanced <strong>TV</strong><br />

remote<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 20 (62)<br />

3. Remote DVR<br />

management<br />

4. Social tool


The role of devices – APP <strong>TV</strong><br />

1. Access on-line VOD services<br />

(NETFLIX)<br />

10. Wireless home<br />

(less clutter, less cables)<br />

Ten potential roles of the APP <strong>TV</strong>…<br />

2. Access on-line<br />

catch-up <strong>TV</strong> services<br />

(BBC iPlayer)<br />

9. <strong>Video</strong> Comm<br />

(Skype)<br />

8. Social tool<br />

(facebook)<br />

3. <strong>TV</strong> schedule /<br />

Electronic Program Guide<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 21 (62)<br />

5. Stream local<br />

content<br />

6. Access on-line<br />

video clips<br />

(Youtube)<br />

7. Internet Access<br />

(Google)<br />

4. Content Discovery<br />

But most of the roles are yet to be addressed successfully!


<strong>Consumer</strong> Spending &<br />

Willingness to pay


<strong>Consumer</strong> <strong>TV</strong> Media Spending<br />

New technology = new possibilities & new costs<br />

Increased<br />

hardware<br />

costs<br />

Increased<br />

<strong>TV</strong> provider<br />

costs<br />

Increased<br />

content<br />

costs<br />

Increased<br />

internet<br />

costs<br />

Choose less<br />

pricey <strong>TV</strong><br />

providers<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 23 (62)<br />

Choose cost<br />

efficient internet<br />

based On-demand<br />

solutions<br />

Look for relevant<br />

payment models<br />

Download illegally


Paying for ON-demand Content<br />

People pay for content on both <strong>TV</strong> and the computer.<br />

People are getting used to pay for content<br />

<strong>TV</strong> screen<br />

Desktop computer<br />

Laptop<br />

Smartphone<br />

Tablet<br />

Portable video player<br />

Other<br />

Question: On which of these screen(s) do you pay for downloaded/streamed videos?<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: Users of each device, 13 Markets<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 24 (62)<br />

3<br />

3<br />

4<br />

9<br />

0 5 10 15 20 25 30<br />

20<br />

22<br />

24<br />

%


<strong>Consumer</strong> interest in Different<br />

ways to pay for live <strong>TV</strong> & HD <strong>TV</strong><br />

Fixed monthly<br />

fee for a live<br />

event package<br />

Pay a fee per<br />

live event<br />

Use info about<br />

you to<br />

personalize <strong>TV</strong><br />

ads (discount)<br />

Heavily<br />

increasing the<br />

commercials<br />

(discount)<br />

Live <strong>TV</strong> HD <strong>TV</strong><br />

8<br />

12<br />

0 5 10 15 20 25<br />

16<br />

21<br />

%<br />

Fee to see all your<br />

regular <strong>TV</strong>/<strong>Video</strong><br />

content in HD<br />

quality<br />

Fee to upgrade a<br />

specific <strong>TV</strong>-channel<br />

to HD quality<br />

Fee to upgrade a<br />

specific <strong>TV</strong><br />

program to HD<br />

quality<br />

Use info about you<br />

to personalize <strong>TV</strong><br />

ads (discount)<br />

Increasing the<br />

amount of<br />

commercials<br />

shown (discount)<br />

0 5 10 15 20 25 %<br />

Fixed fee with unlimited usage are much more<br />

appreciated than increased advertising<br />

Question: Regardless of how you pay for <strong>TV</strong>/video today, in what ways would you be willing to pay for watching different live <strong>TV</strong> (e.g. live events and<br />

sports)? AND in what ways would you be willing to pay for being able to see <strong>TV</strong>/video in HD quality? Please select all the payment methods you would<br />

consider<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: All<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 25 (62)<br />

6<br />

9<br />

10<br />

12<br />

22


<strong>Consumer</strong> interest in Different<br />

ways to pay for <strong>TV</strong>-series & Movies<br />

Pay a fee to see<br />

all existing<br />

episodes of a <strong>TV</strong>series<br />

Pay a fee per<br />

episode of a<br />

certain <strong>TV</strong>-series<br />

Use info about<br />

you to<br />

personalize <strong>TV</strong><br />

ads (discount)<br />

Heavily<br />

increasing the<br />

commercials<br />

(discount)<br />

<strong>TV</strong>-Series Movies<br />

8<br />

13<br />

14<br />

0 5 10 15 20 25 30 %<br />

Question: Regardless of how you pay for <strong>TV</strong>/video today, in what ways would you be willing to pay for watching different <strong>TV</strong>series/Movies?<br />

Please select all the payment methods you would consider<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: All<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 26 (62)<br />

25<br />

Fee for each specific movie<br />

Monthly fee to watch as many<br />

movies as you want<br />

Fee to get 24 hour access to all<br />

movies in VOD catalogue<br />

Use info about you to personalize<br />

<strong>TV</strong> ads (discount)<br />

Increasing the amount of<br />

commercials shown (discount)<br />

Cost control and unlimited consumption of the right<br />

content is high on consumer agenda<br />

7<br />

10<br />

15<br />

23<br />

26<br />

0 5 10 15 20 25 30<br />

%


<strong>Consumer</strong> interest in Different ways to pay<br />

for Multiscreen and impact of Data cost<br />

Pay a monthly fee<br />

for access through<br />

all your devices<br />

Pay a fee each time<br />

you want to access<br />

Pay a monthly fee<br />

for each separate<br />

device<br />

Use info about you<br />

to personalize <strong>TV</strong><br />

ads (discount)<br />

Increasing the<br />

amount of<br />

commercials shown<br />

(discount)<br />

Multiscreen Data costs<br />

5<br />

8<br />

0 5 10 15 20<br />

10<br />

10<br />

18<br />

%<br />

I wouldn't watch any<br />

<strong>TV</strong>-/video content at<br />

all<br />

I would try to only<br />

watch when having<br />

access to free WiFi<br />

I would reduce the<br />

time watching, in<br />

order to reduce data<br />

costs<br />

I would keep<br />

watching, but would<br />

be unhappy<br />

I would watch just<br />

as, since I can<br />

afford it<br />

Limited “interest” in paying extra for <strong>TV</strong>/video content on<br />

all devices. Data traffic cost is a substantial barrier<br />

Question: Regardless of how you pay for <strong>TV</strong>/video today, in what ways would you be willing to pay for being able to access all your <strong>TV</strong>-/video content<br />

on all your different devices? Please select all alternatives you would consider AND Watching <strong>TV</strong>-/video content on mobile devices when away from<br />

home generates mobile data charges. If you would have to pay for the amount of data (Mb) used how would this affect your habits? Please chose one<br />

alternative<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: All<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 27 (62)<br />

7<br />

10<br />

0 5 10 15 20 25 30 35 40<br />

20<br />

29<br />

34<br />

%


File sharing Story - Its all about<br />

offering the best service<br />

<strong>Consumer</strong>s don’t want to be pirates, but…<br />

Illegal alternatives<br />

Triggers<br />

› Lack of attractive legal alternatives<br />

– Access to “all” content<br />

– Timely access to new releases<br />

– Price (free)<br />

– Flexibility to play on all devices<br />

– Considered victimless crime<br />

Barriers<br />

› Cumbersome<br />

› Time consuming<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 28 (62)<br />

Legal alternatives<br />

Triggers<br />

› Easy to use<br />

› High quality<br />

› Instant access<br />

Barriers<br />

› Price<br />

› Limited amount of content<br />

› Delayed access to new releases<br />

(windowing)<br />

› Pay per device / DRM


File sharing Can Be Reduced!<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

File sharing Other <strong>TV</strong>/Cable<br />

operator Ondemand<br />

service<br />

Movistar<br />

Imagenio<br />

<strong>Video</strong>club<br />

Base: Spanish on-demand (streaming & downloading content) users (766 users out of 1018)<br />

0%<br />

Other File sharing Amazon<br />

Instant <strong>Video</strong><br />

Apple iTunes Operator Ondemand<br />

(e.g.<br />

AT&T)<br />

Base: US on-demand (streaming & downloading content) users (589 users out of 1046)<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 29 (62)<br />

Orange <strong>TV</strong> Ojo Jazztelia Filmotech.com<br />

<strong>TV</strong> Network<br />

homepage<br />

Netflix Hulu<br />

Spain<br />

New & old content Attractive pricing User friendly & simple<br />

Question: When you watch downloaded/streamed video, which services do you use?<br />

US


<strong>TV</strong>/<strong>Video</strong> services and<br />

features


Ranking OF <strong>TV</strong>/<strong>Video</strong> services<br />

2010 and <strong>2011</strong><br />

Standard quality<br />

Excellent quality<br />

Free from<br />

ads/commercials<br />

Usability, super<br />

simple interface<br />

The Wireless<br />

home<br />

Time shift<br />

A lot <strong>TV</strong> channels<br />

Personalised<br />

<strong>TV</strong>/<strong>Video</strong> content<br />

Internet on <strong>TV</strong><br />

Interactive <strong>TV</strong><br />

Important features 2010 Important features <strong>2011</strong><br />

23<br />

29<br />

35<br />

41<br />

40<br />

43<br />

47<br />

49<br />

51<br />

65<br />

0 10 20 30 40 50 60 70<br />

Standard quality<br />

Excellent quality<br />

Usability, super<br />

simple interface<br />

The Wireless home<br />

Personalised<br />

<strong>TV</strong>/<strong>Video</strong> content<br />

Free from<br />

ads/commercials<br />

Extreme quality<br />

(HD++)<br />

A lot of <strong>TV</strong><br />

channels<br />

Watch dow nloaded<br />

content on <strong>TV</strong><br />

<strong>Video</strong> telephony<br />

(Skype)<br />

Question: How important are the following services/features to you? Answers 6 or 7 on a 7 graded scale, where 1 means not important at all, and 7<br />

means very important.<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: 7 countries (US, UK, Germany, Sweden, Spain, China & Taiwan)<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 31 (62)<br />

21<br />

30<br />

0 10 20 30 40 50 60 70<br />

40<br />

42<br />

45<br />

45<br />

44<br />

46<br />

56<br />

TOTAL 7<br />

% %<br />

Quality is still the most important factor, Personalized <strong>TV</strong> is increasing<br />

64


Willingness to pay V.s.<br />

Important Features<br />

Excellent quality<br />

Extreme quality (HD++)<br />

Standard quality<br />

Theatrical releases direct on <strong>TV</strong><br />

Free from ads/commercials<br />

Time shift<br />

Personalised <strong>TV</strong>/<strong>Video</strong> content<br />

The Wireless home<br />

A lot of <strong>TV</strong> channels<br />

3D <strong>TV</strong><br />

Internet on the <strong>TV</strong><br />

Usability, super simple interface<br />

<strong>Video</strong> telephony (Skype)<br />

Interactive <strong>TV</strong><br />

Apps on the <strong>TV</strong><br />

Worth paying for <strong>2011</strong> Important features <strong>2011</strong><br />

Total 13 countries<br />

0 5 10 15 20 25 30 %<br />

35<br />

Standard quality<br />

Excellent quality<br />

Usability, super simple interface<br />

The Wireless home<br />

Personalised <strong>TV</strong>/<strong>Video</strong> content<br />

Free from ads/commercials<br />

Extreme quality (HD++)<br />

A lot of <strong>TV</strong> channels<br />

Theatrical releases direct on <strong>TV</strong><br />

Internet on the <strong>TV</strong><br />

<strong>Video</strong> telephony<br />

Interactive <strong>TV</strong><br />

Apps on the <strong>TV</strong><br />

0 10 20 30 40 50 60 70 %<br />

Quality is still the most important factor, Personalized <strong>TV</strong> is increasing<br />

Question: How important are the following services/features to you? & Which of the following services/features do you consider worth paying for?<br />

Answers 6 or 7 on a 7 graded scale, where 1 means not important at all/not worth paying for, and 7 means very important/definitely worth paying for.<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: All (13 markets)<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 32 (62)<br />

Time shift<br />

3D <strong>TV</strong><br />

TOTAL 13<br />

COUNTRIES


App <strong>TV</strong><br />

<strong>TV</strong>’s with built-in app functionality


The built-in app experience<br />

What is an app?<br />

› A dedicated program<br />

› Very simple and easy use<br />

› Provides instant access<br />

Apps on the <strong>TV</strong> should provide an as good experience as<br />

we are all used to<br />

<strong>Consumer</strong> expectations for “smart” <strong>TV</strong>’s with apps<br />

and internet browsers are born elsewhere<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 34 (62)


App <strong>TV</strong>’s are not a success so far…<br />

The app experience on the <strong>TV</strong> isn’t good enough..<br />

› Too slow, apps should be instant<br />

› Hard to maneuver<br />

– The “classic” remote isn’t up to the task<br />

› Internet is slower than on other devices<br />

› <strong>TV</strong> apps provide a too limited functionality<br />

› Poor selection of apps,<br />

– Few apps are relevant for the big screen<br />

How do I write www.google.com using digits 1 to 9?<br />

The app experience shouldn’t be contained to one device<br />

1. <strong>Consumer</strong> acquired the app (free or paid)<br />

2. <strong>Consumer</strong> perceive they own the app<br />

3. Accordingly the app should be his/hers to<br />

use on any device<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 35 (62)<br />

www


Internet Add-On<br />

Solutions<br />

Getting internet content<br />

on the <strong>TV</strong> Screen


Add-on solutions vs. App <strong>TV</strong>’s<br />

Internet add-on solutions are preferred to app <strong>TV</strong>’s<br />

Faster<br />

Cheaper<br />

More functionality<br />

Greater connectivity<br />

Better Internet experience<br />

Easier to use and maneuver<br />

Possible to upgrade instead of replace<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 37 (62)


PC-<strong>TV</strong> connection, no longer the<br />

only choice…<br />

No longer deemed necessary in order to access<br />

Internet and OTT services on the big screen<br />

10% of the respondents have a<br />

separate/add on box for online <strong>TV</strong><br />

Internet add-on solutions appear to replace the previous <strong>TV</strong>-PC connection in<br />

many households<br />

Do you have any of the following devices in your household?<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> & <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: ALL, 13 Markets<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 38 (62)<br />

Able to provide the most requested online<br />

content on the big screen in a user friendly way<br />

The simplicity of Add-on’s are enabling advanced behavior for new target<br />

groups<br />

Primary usage of internet add-on<br />

› Streaming movies an series<br />

› Accessing stored content<br />

› Web-<strong>TV</strong> and video clips<br />

› <strong>TV</strong> related browsing


Features available to the <strong>TV</strong><br />

It is more common to have both internet browsing and app functionality built<br />

into the <strong>TV</strong>, than available through other devices (e.g. Apple-<strong>TV</strong> or PC)<br />

Apps (able to install and<br />

use apps on <strong>TV</strong>)<br />

Internet browsing (browse<br />

Internet on <strong>TV</strong>)<br />

Supported by/built into the <strong>TV</strong> Through other device (Boxee, PC..)<br />

0 5 10 15 20 25 30 35<br />

Question: What of the following features are accessible through your <strong>TV</strong>-screen/projector?<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> & <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: All 13 markets<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 39 (62)<br />

%


3d <strong>TV</strong><br />

Watching <strong>TV</strong> in 3 Dimensions


3D <strong>TV</strong> – So far no huge success<br />

3D - Not really worth the effort of overcoming the barriers<br />

Perception of 3D <strong>TV</strong>’s<br />

› Perceived as cool and exciting<br />

› More of a gimmick than a must have<br />

› Not perceived as important as the step<br />

from SD to HD quality<br />

› Still in its infancy, will become more<br />

relevant as it matures<br />

3D<br />

Low/no usage of 3D <strong>TV</strong>’s<br />

› Little 3D content available<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 41 (62)<br />

› 2D to 3D conversion not that good<br />

› Only adds value to certain<br />

types of content<br />

› Glasses are expensive<br />

– Need more than one pair<br />

› Glasses are annoying<br />

– What if you wear glasses?<br />

› 3D without glasses is not good enough<br />

We got the 3D <strong>TV</strong>, although we haven’t watched<br />

anything. We got a bunch of 3D movies, but we only<br />

have four pair of glasses and there are six of us.<br />

Susan, 40, US<br />

12% of the respondents have a 3D <strong>TV</strong> in their household


Quality<br />

Quality experience and concern


Quality<br />

<strong>TV</strong> screen viewing is driving quality concerns<br />

› <strong>TV</strong>/video viewing return to the <strong>TV</strong> screen<br />

› Increased quality concerns<br />

› <strong>Consumer</strong>s expect a better experience<br />

on the <strong>TV</strong><br />

› <strong>Consumer</strong>s invest in order to improve<br />

the quality of the <strong>TV</strong> experience<br />

› Social aspects increase the importance<br />

of Quality<br />

Question: How important are the following services/features to you?<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> & <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: All<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 43 (62)<br />

<strong>TV</strong>/video<br />

viewing is<br />

returning to<br />

the <strong>TV</strong><br />

screen<br />

52% of the respondents consider HD quality to be a very<br />

important feature, 39% thinks the same about the option<br />

to get even higher quality


Quality<br />

The notion of quality is connected to hardware<br />

46<br />

The important thing about the <strong>TV</strong> set<br />

is, first of all, the size. 46 inches. It<br />

was important to have a large <strong>TV</strong> set.<br />

The quality of the picture was<br />

important for us and that it’s a very<br />

sharp picture. That the colors are right.<br />

Christel, 37, Germany<br />

› Many believe that image quality is<br />

primarily a result of the <strong>TV</strong> screen<br />

› They rely on hardware to secure and<br />

upgrade the <strong>TV</strong> quality<br />

Question: What of the following features are accessible through your <strong>TV</strong>-screen/projector?<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> & <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: All<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 44 (62)<br />

› The more up-to-date hardware, the better<br />

the image and audio quality<br />

53% of the respondents claim that they<br />

have a <strong>TV</strong>-screen in the household that<br />

supports 720p or higher video quality


Quality<br />

The experience of AV quality depends on several factors<br />

CONTENT:<br />

High involvement content<br />

like movies and series<br />

require higher quality<br />

DEVICE:<br />

Quality perception differs<br />

between devices<br />

PREVIOUS EXPERIENCE:<br />

<strong>Consumer</strong>s used to HD have trouble<br />

accepting SD quality<br />

QUALITY<br />

FULL HD<br />

1080<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 45 (62)<br />

CONTEXT:<br />

Number of people<br />

watching, location,<br />

disturbances, light etc.<br />

THE SERVICE:<br />

<strong>Consumer</strong>s expect<br />

premium quality when<br />

you pay for it<br />

SCREEN SIZE:<br />

The bigger the screen, the<br />

higher the experience of<br />

quality<br />

30% have a<br />

<strong>TV</strong> screen<br />

larger than<br />

40 inch


%<br />

Importance of HD quality For<br />

Different Screens & Content<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

HD quality is most important on the Main <strong>TV</strong> and Tablet.<br />

HD quality is significantly more important for <strong>TV</strong> series and Movies<br />

49<br />

47<br />

39<br />

Main <strong>TV</strong> Tablet Desktop PC Laptop Portable<br />

video player<br />

37<br />

Top 2<br />

33 33 33<br />

Other <strong>TV</strong><br />

screens<br />

Smartphone<br />

Question: How important is HD quality for the different types of screens/Content? Top 2 answers (6 or 7) on a 7 grade scale where<br />

1 means not important at all, and 7 means very important.<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong>, Base: owners per device, 13 markets<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 46 (62)<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

51<br />

<strong>TV</strong> series &<br />

movies<br />

40<br />

Live sport<br />

events<br />

Top 2<br />

38<br />

Broadcast <strong>TV</strong><br />

content<br />

24<br />

Youtube<br />

content


Content<br />

Recommendations<br />

New Media consumption Patterns<br />

increase the need of<br />

recommendations


Recommendations<br />

<strong>Consumer</strong>s express increased need for relevant<br />

information about <strong>TV</strong>/video content<br />

Information needs<br />

To identify content<br />

To choose between content<br />

Help screen content for kids<br />

Reliable and independent<br />

› More content to choose from<br />

› More choices to make throughout viewing<br />

› Less control over kids’ viewing<br />

› Lots of biased marketing information<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 48 (62)<br />

New sources for Info<br />

Google<br />

Wikipedia<br />

IMDB<br />

Amazon


Intro to Recommendations<br />

The context determines the use and value of<br />

recommendations<br />

Content triggered Time Centered<br />

Spontaneous<br />

Know what<br />

to watch<br />

Need inspiration<br />

& recommendations<br />

The value of recommendations increases as:<br />

› The invested of time and money into the content/situation increases<br />

› The degree of focused viewing increases<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 49 (62)


Ranking different types of<br />

recommendations<br />

Advice from your<br />

friends & family<br />

User ratings<br />

Recommendations<br />

based on your<br />

previous habits<br />

Most bought/watched<br />

The latest releases<br />

Expert<br />

recommendations<br />

Others who watched<br />

this also watched…<br />

Advice from friends and family are the most used and trusted<br />

recommendation method<br />

Your friends are<br />

currently watching<br />

% Who use each method % Who consider each method useful (top2)<br />

Advice from your<br />

friends & family<br />

Based on previous<br />

purchases, habits<br />

The latest releases<br />

User ratings<br />

Your friends are<br />

currently watching<br />

Others who watched<br />

this also watched.<br />

Most bought/watched<br />

Expert<br />

recommendations<br />

% %<br />

0 10 20 30 40 50 60 70 80<br />

0 10 20 30 40 50<br />

Question: Which of the following types of advice and recommendations have you used in order to “find” a good movie, <strong>TV</strong>-series or program to watch?<br />

Question: How useful do you consider each one of those types of advices and recommendations for you to be, regardless of if you have used them previously or not?<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> & <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: ALL, 13 Markets<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 50 (62)


Drivers and barriers<br />

Recommending<br />

to others<br />

Drivers<br />

› Fun<br />

› Status<br />

› Expressing your opinions<br />

› Social viewing & discussion<br />

› “Trading”: Give in order to get<br />

› Promoting and saving niche content<br />

Barriers<br />

› Time consuming<br />

› Complicated<br />

› Privacy issues<br />

Using/listening to<br />

recommendations<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 51 (62)<br />

Drivers<br />

› Inspiration<br />

› Reminder for what's available<br />

› Help in making a choice between<br />

several programs<br />

› “Quality” insurance<br />

› Save time: Avoid watching crap<br />

Barriers<br />

› Time consuming, slow<br />

› Complicated, cumbersome<br />

› Quality issue in larger households<br />

<strong>Consumer</strong>s must feel that they are in control of their information or<br />

privacy issues will become a major barrier


Concerns regarding sharing viewing<br />

information<br />

Ok for my <strong>TV</strong>/video provider to<br />

save/use information about my<br />

personal <strong>TV</strong>/video habits for<br />

suggestions etc.<br />

Ok for my friends and family to see<br />

info regarding what I am watching<br />

(Able to control it)<br />

Ok for other users to see your<br />

ratings of movies and <strong>TV</strong>-series<br />

I agree (Top 2) Middle 3-5 Don't agree (Bottom 2) Don't know<br />

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%<br />

Sharing your viewing habits to friends <strong>TV</strong>/<strong>Video</strong> provider poses some<br />

privacy concerns. <strong>Consumer</strong> have to feel that they are in control<br />

Question: We would like to know how you feel about sharing personal information about you and your <strong>TV</strong> habits in order for<br />

the <strong>TV</strong>/video provider to give you better suggestions and offers. To what extent do you agree with the following statements?<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> & <strong>Video</strong> <strong>Consumer</strong> <strong>Trends</strong> <strong>2011</strong>, BASE: All<br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 52 (62)


What friends are watching<br />

Concept<br />

Attractive idea for the US:<br />

› Perceived as advice or a cue in content<br />

discovery<br />

› Fits well into the existing social <strong>TV</strong><br />

behaviors<br />

› In general, US consumers are heavy users<br />

of social media like Facebook…<br />

Unattractive idea for the Germany:<br />

› Added value in not obvious<br />

› Perceived as intrusive<br />

› No existing social online habits around the<br />

<strong>TV</strong><br />

› German consumers are as much into<br />

social media.<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 53 (62)<br />

I’d want this, absolutely!<br />

Because if all my friends are<br />

watching it, I’m going to watch it<br />

too. This is better than Twitter<br />

because you know your friends<br />

are watching. On Twitter, you<br />

don’t really know.<br />

Jasmine, 27, US


The social tv<br />

Social aspects changes <strong>TV</strong><br />

Consumption patterns


THE SOCIAL <strong>TV</strong><br />

Social interaction around <strong>TV</strong> is spreading online,<br />

>40% use social media from the <strong>TV</strong> sofa<br />

› Social interaction from the physical world is now also engaging viewers<br />

online in social media forums<br />

› Online social <strong>TV</strong> interaction appears to be more diverse and engaging than in<br />

the physical world<br />

› Few barriers to online social <strong>TV</strong> interaction. No need to invite friends over –<br />

just log on!<br />

Question: Which activities do you do at the same time as you are watching <strong>TV</strong>?<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 55 (62)


On demand anD broadcast<br />

social viewing<br />

Viewing behaviors are both triggering and triggered by<br />

social interaction online<br />

Live broadcast<br />

viewing triggers<br />

social interaction<br />

Appointment<br />

viewing<br />

Event<br />

viewing<br />

ONLINE SOCIAL<br />

<strong>TV</strong>/VIDEO BEHAVIOR<br />

LIVE / BROADCAST ON DEMAND<br />

Impulse<br />

viewing<br />

Start:<br />

Content<br />

Online gaming<br />

turned into<br />

viewing<br />

Start:<br />

Social<br />

interaction<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 56 (62)<br />

Chats turned<br />

into viewing<br />

On demand viewing<br />

triggered by social<br />

interaction<br />

VOD parties<br />

YouTube<br />

parties<br />

ONLINE SOCIAL<br />

<strong>TV</strong>/VIDEO BEHAVIOR<br />

Social forums could become an alternative starting point to<br />

content consumption, as natural as the EPG or Zapping!


Enhancing the experience and<br />

value<br />

25% of consumers<br />

are more likely to pay<br />

for <strong>TV</strong> content, if they<br />

watch it in a social setting<br />

Adding<br />

Social aspect<br />

Content A<br />

(Lousy)<br />

Adding<br />

Social aspect<br />

Content B<br />

(Ok..)<br />

Content A<br />

(Mediocre)<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 57 (62)<br />

Content B<br />

(Good)<br />

› Commenting on stupid<br />

things on the show<br />

› Flashing smart remarks<br />

about the stupid content<br />

› Conversing about the<br />

events in the program<br />

› Commenting on the events<br />

in the program<br />

Social interaction and discussion have the potential to<br />

enhance the experience and the value of content


Content for real time discussions<br />

Content suitable for “live”<br />

social interaction<br />

› Sports<br />

› Reality shows<br />

› News magazines &<br />

debates<br />

› <strong>TV</strong> events<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 58 (62)<br />

Content less suitable for<br />

“live” social interaction<br />

› Series<br />

› Movies<br />

– But lots of discussions before<br />

and after watching…


The virtual <strong>TV</strong> sofa<br />

Concept<br />

<strong>Consumer</strong> reactions<br />

› Found attractive on all markets<br />

› Easy to picture how on would use it<br />

› Want a choice between “on tablet” and “on<br />

screen” interaction<br />

› Want a choice between text, voice and video<br />

chat<br />

<strong>Consumer</strong> concerns<br />

› Poses a threat to privacy and integrity<br />

› Don’t want to share all of their viewing habits<br />

› Should be able to opt-in to share their viewing<br />

habits<br />

› <strong>Consumer</strong>s want to choose who they share their<br />

viewing habits with<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 59 (62)<br />

I would love that. It would be great for<br />

me and my friends, especially if we’re<br />

watching different teams that we like<br />

and who are playing each other, we<br />

would just trash talk each other about<br />

the other team.<br />

Connor, 27, US<br />

<strong>Consumer</strong>s have already created the virtual <strong>TV</strong> sofa using<br />

existing devices and services


Conclusions


SUMMARY 1(2)<br />

› <strong>Consumer</strong>s increase their on-demand (streaming and<br />

downloading content) usage<br />

– One out of two do it several times per week or more!<br />

› Social aspects of <strong>TV</strong> increasingly important for consumers<br />

– A strong driver for broadcasted ”live” <strong>TV</strong><br />

› Quality remains high on consumer agenda<br />

– <strong>Consumer</strong>s are prepared to pay for HD<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 61 (62)


SUMMARY 2(2)<br />

› The tablet and smartphone are being included into<br />

consumers everyday <strong>TV</strong>/<strong>Video</strong> consumption<br />

– Multiscreen behaviour is already here<br />

› <strong>Consumer</strong>s prefer legal on-demand <strong>TV</strong>/<strong>Video</strong> services if<br />

they are attractive enough<br />

– Filesharing can be reduced<br />

Source: <strong>Ericsson</strong> <strong>Consumer</strong>Lab <strong>TV</strong> <strong>Video</strong> <strong>Consumer</strong> trends <strong>2011</strong><br />

<strong>TV</strong>/Media <strong>2011</strong> Study - Global Report | Commercial in confidence | © <strong>Ericsson</strong> AB <strong>2011</strong> | <strong>2011</strong>-10-07 | Page 62 (62)

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