Ericsson‘s Consumer Lab has released the data from a massive research project carried out a couple of month ago. Their released TV and Media Report for 2017 has revealed some startling directions the future of media may be taking. Uncovering certain trends may help all companies involved in media content production to get a better handle on where things may be going which will offer them the opportunity to do some strategic planning based on reliable intelligence.
Ericsson, founded in 1876 in Stockholm, is a telecommunications equipment and networking company. They have grown into a global leader in delivering ICT solutions. In fact, 40% of the world’s mobile traffic is carried over Ericsson networks. The company has customers in over 180 countries and comprehensive industry solutions ranging from cloud services and mobile broadband to network design and optimization. Ericsson has one of the industry’s strongest patent portfolios with a total count of over 39,000. R&D is at the heart of our business and approximately 23,700 employees are dedicated to our R&D activities.
Ericsson Consumer Lab has more than 20 years’ experience of studying people’s behaviors and values, including the way they act and think about ICT products and services. Ericsson ConsumerLab provides unique insights on market and consumer trends. Ericsson ConsumerLab gains its knowledge through a global consumer research program based on interviews with 100,000 individuals each year, in more than 40 countries – statistically representing the views of 1.1 billion people. Both quantitative and qualitative methods are used, and hundreds of hours are spent with consumers from different cultures. Ericsson ConsumerLab has representatives throughout Ericsson’s global presence, developing an international understanding of the ICT market and business models.
Some of the key findings in their latest research into the future of media include:
- Overall television and video viewing has substantially increased from where it was just a couple of years ago. This, the Lab finds, is due to a rather meteoric rise in mobile viewership. Since 2012, the average citizen of the world has bumped their average TV and video watching up another four hours a week. Because of this huge jump in viewing on mobile devices, fixed television viewing has dropped an average of 2.45 hours a week over the same period. In the USA, 20% of the increase attributed to mobile viewing is actually paid content.
- The main reason attributed for the huge rise in mobile viewing is the perception that there is a seemingly unlimited supply of video content to be streamed. In fact, the research found that, globally, more than 40% of people are interested in specific mobile plans that contain an unlimited data and video streaming component. The Millennial generation, comprising 46% of that tally, are most concerned with that as they value mobility and generally subscribe to multiple on-demand services.
- Satisfaction is higher for consumers with regard to their VOD services as opposed to their linear TV services. An average of 63% were content with their VOD offerings while only about half were satisfied with their linear TV offerings and service. And while they are somewhat frustrated with the VOD discovery process, they are willing to invest the time because they believe they will find the content that they are interested in viewing.
- In the past four years, average American households have increased their VOD services and average 1.3 linear TV services and 3.8 VOD services on average in every household. In addition, the 16-34 year old group are watching an average of four hours less linear TV broadcasts and live content than the older generations are.
Quantitative data was collected from 24 countries, however for the purposes of their report, the results cover 22 markets.
There were 24 in-depth interviews in Cape Town, San Francisco and Stockholm. These respondents all have multiple devices and an internet connection at home, and they watch both broadcast TV and on-demand video content.On-device measurements: 13,548 Android smartphone users in South Korea and the USA were measured (data collected by Nielsen).
More than 30,000 online interviews were held with people aged 16-69 across 24 markets: Australia, Brazil, Canada, China, Colombia, Dominican Republic, Germany, Greece, India, Italy, Mexico, the Netherlands, Poland, Portugal, Romania, Russia, South Africa, South Korea, Spain, Sweden, Taiwan, Turkey, the UK 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. This study is representative of approximately 1.1 billion people.
Further, the Consumer Lab research goes on to state that, “Since 2010, internet-based video content and social media have proliferated and are today competing with scheduled linear TV content for the consumer’s attention. But Ericsson ConsumerLab research shows that scheduled TV also has an important role in tomorrow’s increasingly complex media environment. The multifaceted nature of TV today is, to a large extent, a result of the rapid evolution of technology. This enables consumers’ media habits to evolve and in turn influence business models and offerings. Scheduled linear TV services continue to attract consumers through a shared social experience, relaxing lean-back viewing and instant access to live content. But consumers also appreciate and expect the option of media à la carte – the ability to create their own world of entertainment.”
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