Ericsson reports 35 percent of all global TV and video viewing is on-demand

Telecommunication Press Releases Thursday October 8, 2015 16:48
Bangkok--8 Oct--Ericsson
  • Ericsson ConsumerLab TV & Media Report 2015 shows consumers embracing video on-demand services like never before; every third viewing hour now spent watching on-demand TV and video
  • Report reveals a 71 percent increase in watching video on smartphones since 2012; nearly two thirds of teenagers' total TV and video viewing time spent on a mobile device
  • Viewing user-generated content also on the rise; almost one in 10 watch YouTube for more than three hours per day

Ericsson has launched the latest edition of the annual Ericsson ConsumerLab TV & Media Report, representative of the views and habits of 680 million consumers making it one of the largest studies of its kind.

Key findings from the report are:
• Streamed on-demand content is soaring
o Over 50 percent of consumers state that they watch streamed on-demand video content at least once a day, up from 30 percent in 2010

o Today, people estimate that they spend 6 hours a week watching streamed TV series, programs and movies on-demand. This has more than doubled since 2011, when weekly viewing was estimated to be 2.9 hours a week

• Linear TV remains key
o The popularity of linear TV remains high, mainly due to its access to premium viewing and live content, like sports, and its social value
o Linear viewing is linked to age: 82 percent of 60–69 year olds say they watch linear TV on a daily basis, while only 60 percent of millennials (those aged 16–34) do so.
• Binge viewing changes the game
o Bingeing, the watching of multiple episodes of TV and video content in a row, has rapidly become a key part of the TV and media experience
o This habit is prominent among Subscription Video-on-demand (S-VOD) users, where 87 percent binge view at least once a week, compared to 74 percent of non S-VOD users
• Millennials prefer the mobile screen
o Those aged 16–34 spend 53 percent of all their video viewing time on a smartphone, laptop or tablet
o Since 2012 the number of consumers across all age groups who watch video on their smartphones has increased by 71 percent.
o The average time spent watching video on mobile devices is up 3 hours a week compared to 2012
• Non-believers in traditional pay TV may eventually change their minds
o For TV cord-nevers (consumers who have never had a pay TV subscription) it is difficult to understand the value as it is offered today.
o Long binding times, inflexible packages and high costs and advertising cause 50 percent to believe they will not pay for it, even in the future
o However, 22 percent of cord-nevers are already paying for over-the-top (OTT) content services, indicating a willingness to pay for subscription TV, albeit with a different bundle approach

Bunyati Kirdniyom, Head of Communications and Regulatory Affairs, Ericsson Thailand, says: "one of interesting key findings is that Video-on-Demand (VOD) services are succeeding in meeting consumer needs, thus allowing consumers to change their viewing habits. Consumers now spend six hours per week watching streamed on-demand TV series, programs, and movies. This has more than doubled since 2011. With recorded and downloaded content added to the equation, today 35 percent of all TV and video viewing is spent watching VOD".

"The continued rise of streamed video on demand and UGC services reflects the importance of three specific factors to today's viewers: great content, flexibility, and a high-quality overall experience. Innovative business models that support these three areas are now crucial to creating TV and video offerings that are both relevant and attractive." Bunyati adds.

About this report

Based on interviews with over 22,500 people, findings in the Ericsson ConsumerLab TV & Media Report 2015 are representative of 680 million consumers, making it the largest study of its kind in the TV industry. With supporting data and insight from on-device measurements and qualitative research, the report details the latest consumer behaviors, attitudes and demands in relation to TV and media, and the potential impact these trends can have on current industry business models.

Interviews were undertaken with consumers aged 16-59 and 60-69, across 20 markets: Brazil, Canada, China, Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK, Ukraine and the US. All respondents have a broadband internet connection at home, and watch TV/video at least once a week. Almost all use the internet on a daily basis.

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