CONVERGED TV
How it will affect viewership habits?
POLICY RECOMMENDATION
Connected TV Conference | © Ericsson AB 2012 | 2012-10-17 | Page 2 (19)
This is Consumerlab
2012-06-27 | Page 2
100,000RESPONDENTS PER ANNUM
1.1 billionREPRESENTING
PEOPLE
15STUDIEDMEGACITIES70
MORE THAN
COUNTRIES
1 000,000RESPONDENTS SINCE 1995
Connected TV Conference | © Ericsson AB 2012 | 2012-10-17 | Page 3 (19)
Consumerlab TV-VIDEO studies
Source: Ericsson ConsumerLab TV Video Consumer trends 2012, Urban sample in China, Brazil, Chile & Mexico, National sample all other markets, Ipsos statistics, CIA the world factbook
Connected TV Conference | © Ericsson AB 2012 | 2012-10-17 | Page 4 (19)
Consumer expectationsOne super simple, convenient, aggregated service
bringing “my” content into one experience
Source: Ericsson ConsumerLab TV Video Consumer trends 2012
Individualized TV experience
On-demandcontent
Idea based content discovery
Social TV
Linear bundles & A’ la Carte
Connected TV Conference | © Ericsson AB 2012 | 2012-10-17 | Page 5 (19)
Change: On-demand going mainstream
Advanced services, features and habits are becoming available for everybody
Source: Ericsson ConsumerLab TV Video Consumer trends 2012
• PC-screen based
Basic broadcastviewing
“The shortcut” Connected-TV
Enabled by easy to use built in features
Merging the TV-experience
Internet based on-demand
• TV-screen based • Mix of linear and on-demand
• Multi screen based
Requires knowledge, exploration, time & technology
Requiring even more knowledge, time & techy devices
Connected TV Conference | © Ericsson AB 2012 | 2012-10-17 | Page 6 (19)
CHANGE: Growing habit of paying for on-demand
%
Source: Ericsson ConsumerLab TV Video Consumer trends 2011, 2012
BASE: Core 7 markets (US, UK, Sweden, Germany, Spain, China and Taiwan) [Have and use device and Watch stream or download video at least monthly]
Connected TV Conference | © Ericsson AB 2012 | 2012-10-17 | Page 7 (19)
CHANGE: Displacing “free” can be done with lawful services !
Base: Spanish on-demand (streaming & downloading content) users (513 users out of 1000)
Base: US on-demand (streaming & downloading content) users (591 users out of 1000)
Spain
US
New & old content Attractive pricing User friendly & simple
BASE: Spain & US [On-demand users that watch streamed or downloaded video content at least several times per month]Source: Ericsson ConsumerLab TV Video Consumer trends 2011 & 2012
Connected TV Conference | © Ericsson AB 2012 | 2012-10-17 | Page 8 (19)
%
(+8%-points)
(+7%-points)
BASE: Core 7 markets (US, UK, Sweden, Germany, Spain, China and Taiwan) (Showing those who consider the service worth paying for)Source: Ericsson ConsumerLab TV Video Consumer trends 2011, 2012
What do consumers value ?On-demand & Time shift
A la Carte TV/Video content
A lot of TV Channels
Theatretical releases direct on TV
Connected TV Conference | © Ericsson AB 2012 | 2012-10-17 | Page 9 (19)
Barriers for On-demand TV and Video usage
Source: Ericsson ConsumerLab TV Video Consumer trends 2012
Connected TV Conference | © Ericsson AB 2012 | 2012-10-17 | Page 10 (19)
The market supply failure of lawful “on-demand” content
Source PWC Global Entertainment Outlook 2012
Connected TV Conference | © Ericsson AB 2012 | 2012-10-17 | Page 11 (19)
POLICY RECOMMENDATIONS
Connected TV Conference | © Ericsson AB 2012 | 2012-10-17 | Page 12 (19)
INCREASE AVAILABILITY OF LAWFUL DIGITAL SERVICES
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FIRST RELEASE WINDOW MUST TOO GO DIGITAL
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DISPLACE FREE WITH LEGAL DIGITAL SERVICES
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REASONABLECONSUMER
EXCEPTIONS
TIMEPLACEDEVICESHIFTING
EX
PE
CT
AT
ION
S
MUST BEMET
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TECHNOLOGY NEUTRAL EXCEPTIONS
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PROMOTE INNOVATION MORE
FLEXIBILITY &INSTANT GRATIFICATION
Connected TV Conference | © Ericsson AB 2012 | 2012-10-17 | Page 18 (19)
Summary
› Windowing, first release window must go digital – lawful digital alternatives necessary.
› Displace illegal access with appropriate lawful digital services – more enforcement not a solution for treating the absence of lawful digital availability.
› Time-, Place-, Device-shifting exceptions must be accommodated, reasonable expectations.
› Technology neutral exceptions > private cloud› Roaming private services a step to multi-territorial services› Promote A’ la Carte innovation, traditional services must offer more
flexibility and accommodate instant gratification; Micro-payments, Pre-paid, Vouchers/Tickets, Viral marketing/Social TV to complement subscriptions and advertising models.