Video-on-Demand Increasing Adoption among Consumers According to Annual Ericsson ConsumerLab TV and Media Report

Dallas, Tex., September 3, 2015--Ericsson (NASDAQ: ERIC) today 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. A key finding 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.

Further findings highlight the considerable growth in consumers watching video on a mobile device: Globally, 61 percent watch on their smartphones today, an increase of 71 percent since 2012. When taking tablets, laptops, and smartphones into consideration, nearly two thirds of time spent by teenagers’ watching TV and video is on a mobile device (55 percent in the U.S).

At the same time, user-generated content (UGC) platforms account for a growing share of consumers’ TV and video viewing. Close to 1 in 10 consumers watch YouTube for more than three hours per day, and one in three now consider it very important to be able to watch UGC on their TV at home. In addition, the study finds that the increasing prominence of UGC-rich platforms, like YouTube, has resulted in a popularity boost for educational and instructional videos, with consumers watching an average 73 minutes of these videos per week.

Anders Erlandsson, Senior Advisor, Ericsson ConsumerLab, says: “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.”

Other significant findings from the Ericsson ConsumerLab TV & Media Report 2015 include:

Bingeing is changing the game: Across the globe, watching multiple TV episodes in a row has rapidly become a key part of the TV and video experience. This habit is prominent among Subscription Video-on-Demand (S-VOD) users of services such as Netflix, Amazon Prime, and HBO, of whom 87 percent binge-view at least once a week (86 percent in the U.S).

The difficulty of finding content: Half of consumers worldwide (33 percent in the U.S.) watching linear TV say they can’t find anything to watch on a daily basis. Consumers feel that recommendation features are simply not smart or personal enough

Different bundles, different attitudes: Twenty-two percent of consumers who have never had a pay-TV subscription are already paying for over-the-top (OTT) content services.

Linear TV remains key: The popularity of linear TV remains high, mainly due to the access it gives to premium viewing and live content, like sports, as well as its social value. In this respect, linear TV often acts as a ‘household campfire’.

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.

For more information on the Ericsson ConsumerLab TV & Media Report 2015 go to:  http://www.ericsson.com/res/docs/2015/consumerlab/ericsson-consumerlab-t...