Consumers And Their Media Consumption

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1 Ericsson ConsumerLab Anders Erlandsson Consumers And Their Media Consumption

2 The times they are a changin

3 Ericsson Consumerlab annual research 100,000 RESPONDENTS REPRESENTING 1.1 billion PEOPLE 40 MORE THAN COUNTRIES 15 MEGACITIES STUDIED Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 3 (21)

4 Anyone can be an Advanced Media Consumer Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 4 (21)

5 I d like to have everything streaming. I m very impressed by streaming. You know, like I say, I m not the first person to get it, but it works, it works very well. I take Netflix as seriously and as important to me as network television and cable television. Male, 56, US Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 5 (21)

6 Late adopters are catching on % 100 Streamed or downloaded content viewing, weekly or more % the computer and the internet is a natural part of my TV and video consumption habits I want to decide when to watch something rather than following a schedule +17%-points increase from 2011 to 2012 amongst late adopters BASE: Core 7 markets (US, UK, Sweden, Germany, Spain, China and Taiwan) (Showing weekly usage or more) Source: Ericsson ConsumerLab TV Video Consumer trends 2011, 2012 Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 6 (21)

7 Full Access NO limits Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 7 (21)

8 Some content on Hulu is web only. Why can t I access it on my iphone or ipad? Why is that? I don t like that! Female, 38, US Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 8 (21)

9 Hours/week Per Device Weekly amount of active TV/Video viewing hours per device TV-screen 15,2 h Desktop computer 8,4 h Laptop 7,1 h Smartphone Tablet 4,2 h 5,0 h 67% use the Laptop, Smartphone or Tablet to watch TV/Video content on a weekly basis Portable video player Other screen 1,2 h 3,1 h In-Home Out-of-Home TV screen remains the dominant TV Video screen, but significant usage also on mobile devices! Base: All 12 markets. [Have and use resp. device] Source: Ericsson ConsumerLab TV Video Consumer trends 2012 Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 9 (21)

10 Why can I only have 4 connected devices to my on-demand service? We are 2 adults and 2 teenage kids in our family we all have smartphones and several ipads! That is just ridiculous! Male, 46, Sweden Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 10 (21)

11 PACE OF CHANGE 50 billion connected things 1 billion connected places THINGS PEOPLE PLACES Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 11 (21)

12 Why can t I rent a movie that is still in the Movie Theatre directly to my TV? Some hotels offer really fresh movies so why not at home? Male, 39, US Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 12 (21)

13 It s all about Cultural inclusion 15 percent higher interest amongst parents in getting theatrical releases directly to the TV! Consumer barriers: The physical limits The total cost of viewing The International timing 32 percent are willing to pay to get theatrical releases directly to the TV! BASE: Consumers Core and 7 markets their Media (US, UK, Consumption Sweden, Germany, Commercial Spain, China confidence and Taiwan) Ericsson (Showing AB 2013 those who consider the Page service 13 (21) worth paying for) Source: Ericsson ConsumerLab TV Video Consumer trends 2011, 2012

14 International Timing June 14th June June 14th 14 th Man of Steel June 14 th June 26 th Aug 30 th Source: Ericsson ConsumerLab 2013 Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 14 (21)

15 Social Media changes the Media Landscape % Activities while watching TV Chat (e.g. MSN, Skype, Facebook chat) Use social forums or blogs (e.g. Facebook, Twitter) Discussing what you currently watch (Using social forums, chats ) 25% 22% 17% 20% 16% At least daily Several times per month Never / don t know At least weekly Monthly or less often Markets both graphs: Core 7 markets (US, UK, Sweden, Germany, Spain, China and Taiwan) Left graph: Showing at least weekly usage, Right graph: Base those who chat or use social forums while watching TV/Video at least monthly Source: Ericsson ConsumerLab TV Video Consumer trends 2011 & 2012 Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 15 (21)

16 When we go to Spain on vacation I can bring my DVD movies, I can bring my Spotify, but I can t bring my SVT Play or my Netflix. Why is that? London: 15,5 million visitors 2/3 from Europe Barcelona: 7.4 million visitors 4/5 from abroad Paris: 29 million visitors 1/3 from Europe Female, 18, Sweden 58% Bringing my TV and video content with me when travelling is very important Source: Ericsson ConsumerLab, Barcelona Tourism board, April 2013, IPS survey published by London &Partners 2013, Eurostat Consumers (online and their datacodes: Media Consumption tour_dem_tnw Commercial and in confidence tour_dem_tnq, Ericsson Paris AB 2013 Tourism Research Page Department, 16 (21) 2013,

17 No-One wants to be a pirate 1/3 The selection of ondemand content is too limited. The content is too old or irrelevant! Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 17 (21)

18 ON-demand Sources 2011, % 50% 40% 30% 20% 10% 0% Other File sharing TV/Cable operator Movistar Imagenio On-demand service Videoclub Base: Spanish on-demand (streaming & downloading content) users (513 users out of 1000) Orange TV Jazztelia Filmotech.com Spain New & old content Attractive pricing User friendly & simple 60% 50% 40% US 30% 20% 10% 0% Other File sharing Apple itunes Amazon Instant Operator Ondemand Video Base: US on-demand (streaming & downloading content) users (591 users out of 1000) TV Network homepage Hulu Netflix BASE: Spain & US [On-demand users that watch streamed or downloaded video content at least several times per month] Source: Ericsson ConsumerLab TV Video Consumer trends 2011 & 2012 Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 18 (21)

19 Willingness to pay On-demand On-demand & Time Time shift shift 34 Excellent quality (HD) 33 Theatrical releases direct on TV 32 Free from ads/commercials 29 Individualized A la carte TV/Video content % BASE: Core 7 markets (US, UK, Sweden, Germany, Spain, China and Taiwan) (Showing those who consider the service worth paying for) Source: Ericsson ConsumerLab TV Video Consumer trends 2011, 2012 Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 19 (21)

20 Game-changing services Culture & entertainment embrace the digital era I have a dream Martin Luther King Untapped opportunities Ubiquitous access Massive Cultural inclusion Consumers and their Media Consumption Commercial in confidence Ericsson AB Page 20 (21)

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