TV Consumer Insights 2010 “IT’S ALL ABOUT EXPERIENCING”
ConsumerLab Project team: Anders Erlandsson, Anders Kälvemark, Niklas Rönnblom
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 2 (17)
Ericsson ConsumerLab
› The voice of the consumer into Ericsson since 1995–
Research representing opinions of more than 1.1 billion people
–
Use consumer insight to improve›
Products and services
›
Strategy›
Marketing
›
Our customers’ products and services
Operators and service providers Consumers
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 3 (17)
Sample representative for more than 300 m consumers
China Germany Spain Sweden
Taiwan UK US
Population aged 15-59:
Representativity of sample (15-59) in %:
Representativity of sample (15-59) in size:
51 M16 M 183 M
Population aged 15-59:
Representativity of sample (15-59) in %:
Representativity of sample (15-59) in size:
48 M550 M 26 M 5 M
11% 80%* 90%
86%70%* 86%
44 M11 M 157 M
39 M60 M 20 M 4,6 M
82%
Total**
880 M
38%
336 M
* Estimations using knowledge from similar markets ** Including estimations for Spain and Taiwan (31 M)Source: Ericsson ConsumerLab MSMC-study 2010
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 4 (17)
We ARE IN A transition period
› Consuming TV/Video is very popular and people are today spending up to 35% of their leisure time on watching content
Consumers are currently…› Exploring new TV/Video technologies› Enriching the viewing experience › Creating new consumption patterns
…meaning:› TV/Video consumption is fragmented and complex› Few established consumption patterns› A trial and error market with lots of curiosity around
Source: Ericsson ConsumerLab MSMC-study 2010
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 5 (17)
On demand is here to stay…
› More than 70 % are “time- shifting” on a weekly basis (streaming, downloading or watching recorded broadcast TV)
› More than 50% are using internet based on demand TV/video every week
› Google search results…–
“Online TV shows free”: 677 million hits
–
“Web TV free”: 495 million hits
19
36
41
45
48
57
62
93
0 20 40 60 80 100
Watch PPV
Watch streamed OD movies
Watch DL content
Watch streamed OD TVprogrammes
Watch DVD/VHS/Blu-ray
Watch short video clips
Watch rec broadcast TV
Watch scheduled broadcast TV
Weekly use of different TV/video distribution channels (%)
Consumption of on demand content is growing rapidly - and there is no return…
Source: Ericsson ConsumerLab MSMC-study 2010Base: ALL
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 6 (17)
Distribution channel And their effect on broadcast TV
FOCUSED
PLANNED
UNFOCUSED
UNPLANNED
Owned Rented
DVD/Blu-ray/VHS
› Reliable› Easy to use› Legal
› Costly› Must leave home› Burning procedure
FOCUSED
PLANNED
UNFOCUSED
UNPLANNED
Web-TV
Streaming (Web-TV, series)
› Instant access› Simple & free› Legal
› Time limits› Pixilated quality› Unreliable access
FOCUSED
PLANNED
UNFOCUSED
UNPLANNED
Downloading
Downloading
› Unlimited supply› New/fresh content› Free content
› Cumbersome› Corrupt files/virus› Legal concerns
FOCUSED
PLANNED
UNFOCUSED
UNPLANNED
VOD
Video on demand
› Reliable› On demand› High quality
› Unfairly priced› Limited supply› Easy to forget
Source: Ericsson ConsumerLab MSMC-study 2010
Future of broadcast TVFOCUSED
PLANNED
UNFOCUSED
UNPLANNED
Traditional broadcast TVFOCUSED
PLANNED
UNFOCUSED
UNPLANNED Broadcast TV
Live
Non live content
› High quality› Easy and simple› Relaxed setting
› Have to adjust tothe TV-schedule
› Not personalized
› High quality› Easy and simple› Relaxed setting
› Have to adjust tothe TV-schedule
› Not personalized
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 7 (17)
on demand’s attractiveness spurs consumption
Limited, scheduled, commercials
Unlimited, time-shifted personal
Non-Live Broadcast On demand
Traditional viewing experience
Enhanced viewing experience
Trying to cut back Increased usage
From “What’s on” to “What do I feel like watching…”Source: Ericsson ConsumerLab MSMC-study 2010
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 8 (17)
No single device has it all
Values› Simple & convenient› High quality› The social screen› ”Backwards leaning”
Usage› Relaxing› Sharing the experience› Fighting loneliness
Values› Time shifting› Free & unlimited content› The private screen› ”Forward leaning”
Usage› Active consumption› Multi purpose screen› Multitasking› Private consumption› In home portable (laptop)› During travel (laptop)
Values› To kill time
–
One of many options› Only option available
–
When away from ”home”
Usage› In-transit screen› While waiting › Entertaining the kids when
away from home
TV The Social Screen
12,2h/week
Computer The Private Screen
8,6h/week
Mobile devices The Mobile Screen
2,8h/week
Each screen has its usage and purpose, as a part of the TV-puzzle
Base: AllSource: Ericsson ConsumerLab MSMC-study 2010
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 9 (17)
Drivers for connecting
PC and TV
Base: Have connected a computer to a TV screen
2
8
14
15
16
16
17
47
52
67
70
Other reasons:
Same screen for PC andTV (only have one)
Others wanted toconnect them
To browse Internet onmy TV
I was curious
I read about it anddecided to try
I was inspired by firendswho had
To show pictures on theTV screen
To watch "PC" contenttogether with others.
To watch "PC" contentmore comfortable
To get a larger screen
Experience and social aspects are heavy triggers for merging the TV and PCSource: Ericsson ConsumerLab MSMC-study 2010
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 10 (17)
barriers for connecting
PC and TV
- Awareness of alternatives
Aware of alternative way to watch TV
- Access to ”Time- shift” features
- Knowledge
- Interest
On demand/time shift usage
- Know-how
- Awareness of possibility
- Fear of the task
Decision to connect the TV and PC
- To old TV
- No cable
- Astethical reasons
- To far away
- Cost
Access to required technology
Barriers (Examples)
- Complicated navigation
- Separating private and social usage
- Time, if not permanently connected
- Online content becomes pixelated on large screens
TV and PC connected
Step
Step
Step
Step
Step
Source: Ericsson ConsumerLab MSMC-study 2010
› Connecting the PC and the TV is still way to complicated for the majority of people.
› Even when one have managed it, there are still some issues and problems left
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 11 (17)
The future of “TV” is centered around experiencing
Source: Ericsson ConsumerLab MSMC-study 2010
Leaving the TV and the PC world behind, entering the experience world
› Convenience› Comfortable› Social› Large screen
TV-screen PC-screen
› “All” content› On demand› Private › “Free”
TECHNOLOGY oriented
What, when, whereand how I want
My screen(s)
EXPERIENCE oriented
› My personal TV/Video experience
› Combining drivers from both (all) worlds
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 12 (17)
Paying for TV and Video Share of time vs. share of wallet
› The investments in money is not proportional to invested time› Future share of wallet will more likely resemble the actual share of time
Broadcasted TV/Video
(Basic+Premium TV)
43%
PPV2%
On demand/time
shifted TV/Video
55%
PPV4%
Broadcast TV
58%
On demand37%
€38/month 25 hours/week
Base: ALL
Average share of spending on TV/Video
Share of time watching TV/Video (inside the home)
Source: Ericsson ConsumerLab MSMC-study 2010
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 13 (17)
Paying for TV and Video What is worth paying for today?
› Average monthly spending on TV/video: €38› Average monthly spending on Internet: €22› Compulsory monthly TV license: €10
~ €70/month Base: ALLSource: Ericsson ConsumerLab MSMC-study 2010
The things that consumers are
actually paying for today, without
hesitationEXTENDED SERVICES›Additional channels›Video on Demand
PHYSICAL FORMATS›Purchase DVDs›Rental DVDs
HARDWARE›TV sets›Computers›Mobile phones›DVRs›DVD-players
SPECIFIC CONTENT›Live sports›TV on demand›Series
BASIC ACCESS›TV platform›Broadband
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 14 (17)
Paying for TV and Video New values in a new landscape
› Low willingness to pay for online content today–
Internet mindset
–
Consumption on PC
› Future values–
From owning content to always access to content
›
40% thinks immediate access is very important–
Reintroducing the social dimension
–
Guidance, super simplicity›
More than 50% think simplicity is very important
TV/Video is, and will be, highly valued and appreciated. If done right, consumers will reallocate their TV spending to new alternatives
Source: Ericsson ConsumerLab MSMC-study 2010
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 15 (17)
What About Digital Rights?
Respondents do not want to be limited in how they consume media › Little concern about media rights› Want full freedom› Anywhere access to everything they can watch on their
home TV
The ease of getting access to copyrighted content sets a important reference › Any commercial alternative will have to be able to
compete with other/illegal options concerning:–
Ease of use–
Access–
Content–
Price–
…
Source: Ericsson ConsumerLab MSMC-study 2010
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 16 (17)
most important features and the willingness to pay for them
0% 20% 40% 60% 80%
Standard quality
Excellent quality
Free from ads/commercials
Usability, super simple interface(s)
The Wireless home
Time shift ("my" content, anytime)
A lot of broadcast TV channels
Immediate access
Technical support at home
In my native language
Personalised TV/Video content
Watch downloaded content
Watch on-demand streamed contentAccess to Internet on your standard
TV screenYour TV/Video on all devices/screens
Interactive TV
Recommendations and user ratings
Very important features
0% 20% 40% 60% 80%
Excellent quality
Free from ads/commercials
Standard quality
Technical support at home
A lot of broadcast TV channels
The Wireless home
Time shift ("my" content, anytime)
Personalised TV/Video content
Immediate access
Watch on-demand streamed content
Watch downloaded content
Usability, super simple interface(s)Access to Internet on your standard TV
screenYour TV/Video on all devices/screens
In my native language
Recommendations and user ratings
Interactive TV
Features worth paying for
Source: Ericsson ConsumerLab MSMC-study 2010
Base: All
Usability is a hygiene factor, very important but taken for granted
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 17 (17)
most important features Building a “TV”-package
0% 10% 20% 30% 40% 50% 60% 70%
Standard qualityExcellent quality
Free from ads/commercialsTime shift ("my" content, anytime)Usability, super simple interface(s)
Watch downloaded contentThe Wireless home
Immediate accessWatch on-demand streamed content
A lot of broadcast TV channelsTechnical support at home
In my native languageAccess to Internet on your standard TV screen
Personalised TV/Video content Your TV/Video on all devices/screens
Recommendations and user ratingsInteractive TV
The consumers are requesting an easy to use, high quality, on demand service with no commercial brakes as their next TV service
Source: Ericsson ConsumerLab MSMC-study 2010Base: ALL
If you could select five features to include in your future TV-solution
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 18 (17)
The touchpad TV Remote
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 19 (17)
The touchpad TV Remote service ranking
15
18
19
13
17
18
19
21
22
23
22
22
6
6
6
7
5
5
17
11
8
0% 20% 40% 60% 80% 100%
Small Screen TV
Internet on thesmall screen
Touch screenremote
7 - Very interested 6 5 4 3 2 1 - Not at all interested / don't know
› Ease of use, control and enabling Internet in the TV without disturbing the experience is attractive!
When thinking about the different services/options in the concept. How interested would you be in having a portable, wireless touch screen that allowed you to do all the following things:
37% (top2)
35% (top2)
28% (top2)
Base: ALLSource: Ericsson ConsumerLab MSMC-study 2010
6
6
6
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 20 (17)
The touchpad TV Remote unlocking new potential
A problem when introducing new services and features into the TV is that they can interrupt and disturb the TV-experience
A social context An individual context
The touchpad TV remote enables private services and usage in the social TV-setting
The touchpad TV remote could solve these conflicts, allowing the consumers to stay in charge. This would enable:
› Introduction of new advanced services in a non intrusive way - E.g. voice, video and text communication, interaction…
› Easy PC-TV connection› Greater control of the digital home
Source: Ericsson ConsumerLab MSMC-study 2010
New TV-services are often born elsewhere
in another context, this causes conflicts (e.g. Messaging on livingroom TV)
The TV-setting The PC-setting
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 21 (17)
fast facts and summary
› People are today spending up to 35% of their leisure time on watching content
› 93% still watch traditional broadcast TV every week› More than 70 % are “time-shifting” on a weekly basis› More than 50% are using internet based on demand TV/video every
week
Source: Ericsson ConsumerLab MSMC-study 2010
TV Consumer Insights, Ericsson ConsumerLab | Commercial in confidence | © Ericsson AB 2010 | 2010-08-25 | Page 22 (17)
fast facts and summary
› More than 50% would like to connect their PC with their TV just so that they can watch online TV content together with others
› On demand has only 40% share of wallet, but 60% share of time› 40% thinks immediate access to TV content is very important› More than 50% think simplicity is very important› 37% are very interested in a touch screen tablet connected to their TV
Source: Ericsson ConsumerLab MSMC-study 2010