CONNECTED CONSUMER SURVEY 2017: TV AND VIDEO IN EUROPE AND THE USA

Transcription

1 analysysmason.com RESEARCH SURVEY REPORT CONNECTED CONSUMER SURVEY 2017: TV AND VIDEO IN EUROPE AND THE USA MARTIN SCOTT

2 About this report This report focuses on aspects of Analysys Mason s Connected Consumer Survey that relate to the changing TV and video viewing habits of consumers in Europe and the USA, and in particular on the relationship between OTT video, pay TV and the increasing diversity of services and devices used. This part of the survey was conducted in association with Survey Sampling International (SSI). The research was conducted in July and August The survey groups were chosen to be demographically representative of the broader online consumer population. We set quotas on age, gender and employment status to that effect. There were a minimum of 1000 respondents per country. The total sample size was 7090 respondents. KEY QUESTIONS ANSWERED IN THIS REPORT How is device usage changing and how does this affect TV and video? Where are consumers now going to get different types of TV and video content and how has this changed? What is the current relationship between OTT video and pay TV? Do the two services live side-by-side or is cord-cutting a growing problem? How do pay-tv providers adjust their services to cater for changing user behaviour? What features of a pay-tv service have the greatest effect on customer satisfaction, and how can operators continue to delight their customers? GEOGRAPHICAL COVERAGE Poland Germany UK France USA Spain Turkey WHO SHOULD READ THIS REPORT Product managers and strategy teams working for operators with pay-tv operations or for companies that use video services as a VAS to support their core services. Marketing executives and product managers for operators that are making decisions about TV and video service design and its impact on customer retention for pay TV, fixed broadband and mobile services. Strategy teams for pay-tv providers and operators that are assessing the impact of changing viewing habits on their business in particular the relationship between pay TV and OTT video services. 2

3 CONTENTS EXECUTIVE SUMMARY SERVICE AND DEVICE FRAGMENTATION CHANGING VIEWING HABITS PAY-TV AND VIDEO SATISFACTION METHODOLOGY AND PANEL INFORMATION ABOUT THE AUTHOR AND ANALYSYS MASON 3

4 Multi-screen usage is widespread, complex and an essential consideration when assessing available opportunities in TV and video Figure 3: Selected statistics related to the penetration and average daily usage of different devices for TV and video 1 Handset Used by 98% of respondents Screen time: 198 min 7% watch pay TV 34% watch OTT Tablet Used by 56% of respondents Screen time: 75 min 10% watch pay TV 38% watch OTT Console 32% connect to TV PC / laptop 23% connect to TV PC /laptop Used by 93% of respondents Screen time: 227 min 8% watch pay TV 40% watch OTT The consumer 623 minutes of screen time 183 minutes of video viewing TV set Used by 87% of respondents Screen time: 190 min 50% watch pay TV 65% watch OTT Roku/Apple TV 11% connect to TV STB 68% connect to TV Smart TV 55% have one Source: Analysys Mason The average respondent to this survey spent the majority of their waking day (more than 12 hours per day) using screens. Watching video services accounted for over 3 hours per day; the total exposure to video content was even greater once incidental viewing, particularly through social media platforms, was factored in. Device fragmentation is an important consideration for all players in the TV and video value chain: 40% of all PC/laptop users watch OTT video services, and 10% of tablet users use their device to access their pay-tv provider s multiscreen service. This device fragmentation fosters diversity in consumption, provider choice and payment mode. 1 Video viewing time includes time spent on dedicated TV and video sites such as Netflix, pay TV and YouTube, but excludes incidental viewing such as through social media. Questions: Which screens do you watch this TV service on (including live and catch-up services)? ; Which of the following devices do you have plugged into any of your TV sets at home? ; Yesterday, how long did you use each of the following devices for? ; In a typical week, how many hours do you spend watching the following types of video content on any device? ; n =

5 Substitutive or additive? OTT video has replaced pay TV in only a limited number of cases in Europe because providers pay-lite services appeal Figure 6: Overlap of pay-tv and OTT TV and video users, Europe, 2015 and % 34% 12% 6% % 30% 19% 10% 2017 Pay TV Do not pay for TV or video Pay OTT Source: Analysys Mason 1 Question: Which of the following services do you have access to? ; n (2015) = 6133; n (2017) = The strong North American trend of cord-cutting has not been replicated in Europe, though the effect is still present: 3.7% of European respondents stated that they do not take pay-tv services because paid-for OTT satisfies their needs. The US trend has not been replicated in Europe because European pay TV is much more affordable, but also because operators offering pay-lite propositions appear to have more than offset the custom lost to OTT. Total pay-tv and video engagement has actually grown. According to our survey, the number of people consuming paid-for TV and video content (including OTT) has increased in the last two years, from 52% to 59% in Europe and 82% to 88% in the USA. Most paid-for OTT video users also watch pay TV. Between 2015 and 2017, the percentage of pay-ott users in Europe that also watched pay TV fell from 69% to 65%. Over the same period, based on our survey, the number of people that reported using a pay-tv service (that is, not just the percentage of households that subscribe) increased in both Europe and the USA (46% to 49% of European respondents and 64% to 70% of US respondents). Despite positive indications, the pool of people that can be lured to pay TV to replace those that are lost to OTT services is finite; pay-tv providers will need a mitigation strategy. They must tailor their services to changing consumer habits, as explored in the next section. 12

6 CONTENTS EXECUTIVE SUMMARY SERVICE AND DEVICE FRAGMENTATION CHANGING VIEWING HABITS PAY-TV AND VIDEO SATISFACTION METHODOLOGY AND PANEL INFORMATION ABOUT THE AUTHOR AND ANALYSYS MASON 27

7 About the authors Martin Scott (Principal Analyst) co-ordinates Analysys Mason s research initiatives related to media, TV, fixed broadband and convergence. He manages the Video Strategies and Fixed Broadband Services research programmes. Martin has held numerous positions within Analysys Mason during the last 13 years, including heading the company's Consumer Services, Data and Regional Markets practices. He also launched Analysys Mason's Connected Consumer Survey and Consumer smartphone usage series of research. His areas of specialisation include telco TV strategy, OTT video and media, consumer smartphone usage, the bundling and pricing of multi-play services, including quadruple-play bundling, customer satisfaction and consumer-facing marketing strategy. He also specialises in statistics, surveys and the analysis of primary research. 28

8 Analysys Mason s consulting and research are uniquely positioned Analysys Mason s consulting services and research portfolio CONSULTING We deliver tangible benefits to clients across the telecoms industry: communications and digital service providers, vendors, financial and strategic investors, private equity and infrastructure funds, governments, regulators, broadcasters, and service and content providers. Our sector specialists understand the distinct local challenges facing clients, in addition to the wider effects of global forces. We are future-focused and help clients understand the challenges and opportunities that new technology brings. RESEARCH Our dedicated team of analysts track and forecast the different services accessed by consumers and enterprises. We offer detailed insight into the software, infrastructure and technology delivering those services. Clients benefit from regular and timely intelligence, and direct access to analysts. 29

9 Research from Analysys Mason 30

10 Consulting from Analysys Mason 31

11 PUBLISHED BY ANALYSYS MASON LIMITED IN MARCH 2018 Bush House North West Wing Aldwych London WC2B 4PJ UK Tel: +44 (0) Registered in England No All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. Figures and projections contained in this report are based on publicly available information only and are produced by the Research Division of Analysys Mason Limited independently of any client-specific work within Analysys Mason Limited. The opinions expressed are those of the stated authors only. Analysys Mason Limited recognises that many terms appearing in this report are proprietary; all such trademarks are acknowledged and every effort has been made to indicate them by the normal UK publishing practice of capitalisation. However, the presence of a term, in whatever form, does not affect its legal status as a trademark. Analysys Mason Limited maintains that all reasonable care and skill have been used in the compilation of this publication. However, Analysys Mason Limited shall not be under any liability for loss or damage (including consequential loss) whatsoever or howsoever arising as a result of the use of this publication by the customer, his servants, agents or any third party.