Erricson has unveiled its annual ConsumerLab TV and Media report, which details the massive growth in TV and video viewing and the ongoing shift in the way consumers watch content.
Which if you couldn’t tell by the heading, predicts that in just 3 years time Video on Demand (VOD) of which 50% will be viewed via mobile.
Data was collected from 13 countries.Approximately 20,000 online interviews were held with
people aged 16–69 in Brazil, Canada, China, Germany, India, Italy, Russia, South Korea, Spain, Sweden, Taiwan, the UK and the US.
All respondents have a broadband internet connection at home and watch TV or video at least once a week, and almost all use the internet on a daily basis.
Anders Erlandsson, Senior Advisor, Ericsson ConsumerLab, says: “We can see that consumers are not only watching more video but also changing how and when they do so. This is also shown through the continued growth of mobile viewing, which has been a booming trend since 2010. This year also marks the first time that we have explored the level of consumer interest in VR in conjunction with media consumption, and the findings have been fascinating. VR has the potential to bring together people from all over the world and create deeper, more personalized, and more complementary media experiences. As consumer expectations for on-demand, mobile and immersive viewing continues to increase, the TV and media industry must focus on delivering highly personalized services in the very best possible quality available.”
And the report has some key points.
Time spent watching TV and video content has reached an all-time high of 30 hours a week, including active viewing of scheduled linear TV, live and on-demand internet services, downloaded and recorded content, as well as DVD and Blu-ray.
Because people still download.
However, close to 60 percent of viewers now prefer on-demand viewing over scheduled linear TV viewing, an increase of around 50 percent since 2010, probably due to such services as Netflix and Amazon Prime.
And such services have increased the use of on-demand services which has increased from 1.6 in 2012 to 3.8 services in 2017 per person (so peeps are paying for more than just one service) and 2 in 5 consumers already pay for on-demand TV and video services today and nearly a third (32 percent) say they will increase their on-demand spending in the next 6-12 months.
Thats right, we are increasing our spend on entertainment viewing.
Portability is also becoming an increasingly important factor, with more than a third of consumers wanting access to content when abroad.
Smartphone viewing also continues to gain ground; approximately 70 percent of consumers now watch videos on a smartphone – double the amount from 2012 – making up a fifth of total TV and video viewing.
16-19-year-olds watch the most content each week (33 hours)…surprise, surprise…, an increase of almost 10 hours a week since 2010. However, more than half of this demographic spend their time watching content on-demand, with more than 60 percent of their TV and video viewing hours spent on a mobile device screen.
However, more than half of this demographic spend their time watching content on-demand, with more than 60 percent of their TV and video viewing hours spent on a mobile device screen.
The findings also show that while consumers have more access to TV and video services than ever before, the average time spent on searching for content has increased to almost one hour per day, an increase of 13 percent since last year.
In fact, 1 in 8 consumers believes that they will get lost in the vast amount of available content in the future.
With the user experience becoming ever more fragmented, 6 in 10 consumers now rank content discovery as “very important” when subscribing to a new service, while 70 percent want ‘universal search for all TV and video’.
And this leads us to experience…cause experience matters, so listen up social media platforms.
Millennials spend over 50 percent more time searching on VOD services than those aged 35 and up, and they spend over 80 percent more time watching VOD content.
Even in well-established content areas such as sports, consumers see room for improvement – one in three sports viewers thinks it takes too much effort to find the sporting events they like on TV.
And the lessons don’t finish there for platforms.
Ads also go under the microscope.
As consumers become increasingly used to ad-free services such as Netflix, advertising interruptions will be perceived as more disruptive than ever before, especially for platforms.
Even if the majority of people still prefer an ad-sponsored on-demand service, almost 1 in 3 prefer to pay USD 5 or even USD 10 extra to reduce or eliminate advertisements altogether.
These preferences differ slightly between TV user groups – TV Couch Traditionalists, with a significantly large viewing time, do not want ads and are willing to pay to get rid of them, while TV Joes prefer brand-sponsored video content.
The fastest growing group, Mobility Centrics, show the highest preference for personalized ads.
The report also looks at VR as a viewing platform.
While today it is currently the gaming industry which is adopting this format, the report discovers that 30 percent of consumers say that they will use VR for TV and video viewing in 5 years’ time. VR has the ability to add
VR has the ability to add valuable dimensions to consumers’ video viewing experience: friends and people with similar interests can watch content together in a VR living room; viewers have the freedom to look anywhere in every scene of a movie; and consumers can experience a football match or music concert with other fans in a VR arena, as if they are actually there.
When asking consumers who have not yet started using VR, but have indicated their interest, over 40 percent say they will use VR to watch immersive and interactive movies regularly, and more than a third can see themselves using VR regularly to watch live sports events and music concerts.
For businesses and production houses, this report provides some key insights especially when considering or developing a true digital multimedia experience.