Telefonaktiebolaget LM Ericsson Class A · OMXSTO:ERIC_A
Telefonaktiebolaget LM Ericsson Class A — Ericsson — Technical Presentation (October 2017)
35 slides from Telefonaktiebolaget LM Ericsson Class A's technical presentation, Oct 9, 2017
Slide 1: TV & Media 2017: a consumer-driven future of Media
TV & MEDIA 2017 a consumer-driven future of Media Ericsson ConsumerLab
Slide 2: Ericsson ConsumerLab: The voice of the consumer
Ericsson ConsumerLab The voice of the consumer REPRESENTING 1.1 billion PEOPLE 100,000 RESPONDENTS 22 MORE THAN 40 COUNTRIES Jan 1st YEARS OF RESEARCH TVTV Media Media 2017 2017 Ericsson Ericsson ConsumerLab ConsumerLab Presentation Presentation | EricssonInternal | Ericsson Internal| | © © Ericsson
Slide 3: Global Key Insights: TV Media 2017
Global Key Insights: TV Media 2017 VR will reignite the campfire TV couch potatoes get up Smartphone viewing doubles experience of TV and go! › Today’s solitary video on demand › Around 70 percent of consumers watch TV › By 2020, only 1 in 10 consumers will be stuck (VOD) viewing experience is set t
Slide 4: Representing over 1 Billion Consumers
Representing over 1 Billion Consumers Quantitative: ~20 000 online interviews aged 16-69 in Brazil, Canada, China, Germany, India, Italy, Russia, South Korea, Spain, Sweden, Taiwan, UK and US Qualitative: 12 VR user interviews in online VR focus groups & in-depth interviews TV Media 2017 Ericsson Co
Slide 5: TV-User groups – what is that?
TV-User groups – what is that? Definition of TV-user groups based on total weekly TV and video active viewing time spent on each device/screen [self-reported] Tablet screen Smartphone screen Laptop screen Other screen Desktop screen TV screen 12% 18% 23% 33% 37% 89% 34% 72% 43% 31% BASE: Population
Slide 6: By 2020, TV couch traditionalists will have sunk into oblivion
By 2020, TV couch traditionalists will have sunk into oblivion Percentage of population belonging to each user group respective year [Self-reported] 14% 12% 11% 19% 16% 16% 17% 17% 16% With only 11% 12% 18% 18% TV couch traditionalists 21% 19% 18% 19% 23% 22% expected by 2020, the market to offer 28
Slide 7: TV-Attitudes 2010-2017
TV-Attitudes 2010-2017 TV and media attitudes (showing top 2 answers on 7-graded scale) [self-reported] › TV and media attitudes have changed a lot over the past 7 years 80% I prefer on-demand over scheduled viewing › Close to 60% of the consumer prefer 70% Internet is a natural part of my TV habits
Slide 8: 5 years can make a huge difference
5 years can make a huge difference Percentage of consumers that have changed their Percentage of consumers that believe they will change habits in the past 5 years, overall (Self-reported) their habits over the next 5 years, overall (Self-reported) I watch more HD content 53% I will watch TV in Virt
Slide 9: 16-69 year olds spend over half of viewing time on-demand
16-69 year old's spend over half of their viewing time watching on-demand content Average share of total hours active viewing TV/video per week 2017 (for different kinds of content) [Self-reported] Age 16-19 Age 20-24 Age 25-34 54% 51% 45% On demand 2% On demand 3% On demand 4%3% 4% 3% 4% 2% 2% 7% 2
Slide 10: Viewing habits differ between TV user groups too
Viewing habits differ between TV user groups too Share of total weekly hours active watching TV/video Other on demand content (for different kinds of content) by TV user group [Self- reported] Movies, TV-series & other TV programs on 60 DVD/Blu-ray etc Movies, TV-series & other TV programs recorded
Slide 11: Increased choice of TV/Media screens drive screen shifting
Increased choice of TV/Media screens drive screen shifting Percentage of population that have each device within the › Smartphones continues to grow in household [self-reported] penetration, becoming consumers 100% Flat screen (HD) TV all-in-one favorite device. Ultra high definition TV (4K/UHDTV) ›
Slide 12: Movies & TV series are Primed for 4K viewing
Movies & TV series are Primed for 4K viewing Penetration of 4K/UHD TV screens at home, Percentage of 4K/UHD users that agree with (Self-Reported) each statement (Self-Reported) Movies & TV series are very suitable for 4K 18% viewing 56% 42% 3% 4K quality is as good as I expected 53% 43% 3% 39% Only
Slide 13: By 2020, 50 percent of viewing will be on mobile screens
By 2020, 50 percent of viewing will be on mobile screens Share of total TV/video-time done on respective device screen on right axis, and average total nr of hours per week watching TV/video › By 2020, half of all viewing will be done on left axis [self-reported] on a mobile screen, an 85 percent in
Slide 14: By 2020, 1 in 3 consumers will be VR users
By 2020, 1 in 3 consumers will be VR users Percentage of consumers owning Virtual Percentage of consumers that use Virtual Reality, when Reality headsets, (Self-Reported) they started and when they will start (Self-Reported) 6% 9% 40% 6% 35% 4 in 5 30% 25% started using VR 20% 27% less than one 15%
Slide 15: Virtual Reality Usage
Virtual Reality Usage Almost 40% of the VR user are using VR every day, with 6% using it more than 3 hours a day. Watching video content and playing games are currently the main activities consumers are doing on Virtual Reality. Percentage of VR users doing different activities using their VR headse
Slide 16: VR is not the new 3D!
VR is not the new 3d! How VR users believe their activities in VR will change over the next 5 years (Self-reported) Of the VR users believe their 49% <4% usage of gaming and video Watch Movies, TV series and other 23% 4% TV programs in VR - alone or together 16% activities in VR will reduce over 8%
Slide 17: What do they want to do with it?
What do they want to do with it? Percentage of potential VR users that believe they will 46% regularly do each VR activity in the future (Self-Reported) Of the potential VR users believe VR will be popular for watching TV and video together with remote friends and family Getting a virtual Cinema/Mov
Slide 18: Different drivers for video in VR
Different drivers for video in VR I can meet people from all over the world, and watch videos with them on a giant virtual screen. So if you live ENGAGEMENT alone like me, this is a big deal!” – Chuck Immersive Content VR and 360 Video VR Social Personal movie viewing theater experience VR users wat
Slide 19: Speeding up the VR adoption
Speeding up the VR adoption Percentage of potential VR users that agree each development would add to their interest in Virtual › Cost is currently the main barrier for VR Reality (VR) [Self-Reported] headsets adoption – More than half of all potential VR users When VR headsets become cheaper 54% wo
Slide 20: Finding content worth watching is hard
Finding content worth watching is hard › Consumers are using more video services today than ever before 6 in 10 Think content discovery is very › The average number of used on-demand important when subscribing to a new service services have increased from 1,6 in 2013 to 3,8 services in 2017 › Findin
Slide 21: Screen shifters have the biggest problem finding something to watch
Screen shifters have the biggest Problem finding something to Watch Never Less often At least Weekly Percent of consumers that can’t finding anything to watch [Self-reported] At least Daily 4% 6% 3% 3% 2% 5% 3% 8% 9% 9% 11% 9% 11% 12% 10% 10% 13% 12% 10% 13% 16% 22% 19% 23% 24% 22% 35% 41% 27% 39% 3
Slide 22: Millennials spend more time searching
Millennials spend 53 Percent More time Searching VOD than those aged 35+ Average minutes per day spent searching for content per before Average minutes per day spent searching for content starting to watch something across user groups (Self-reported) per before starting to watch something (Self-repo
Slide 23: Consumers long for Universal search
Consumers long for Universal search Percentage of consumers that find the following Percentage of consumers that find the following features useful Multiple choice (self-reported) features useful Single choice (self-reported) 76% Universal search for all TV and video 16% Trailers 22% 74% 74% Trailer
Slide 24: Users want the best of both worlds
Users want the best of both worlds Preferred way of paying for on-demand TV and video services across user groups [Self-reported]: › A vast majority of people choose a The service is free of charge, but you 16% non-paid ad sponsored or brand watch 2-3 minutes of advertisements every 15 minutes 15% s
Slide 25: Users show higher trust for their own service providers
Users show higher trust For their own service providers Percentage of consumers that trust each service when it comes to handling their personal › The overall level of trust people have data in a responsible way (Self-reported) for services providers is low Heavy Heavy users of Heavy users of Heavy
Slide 26: Price and content are most important when subscribing
Price and content are most important when subscribing to a new paid service Top factors important when picking a new paid TV service (Self-reported - Top 2) 74% 58% The price 72% Content Discovery 58% 76% 57% 71% A Universal App to find & 51% Available content 71% 53% 71% watch all TV & video… 50% 6
Slide 27: Best in class services rated differently
Best in class services rated differently Percentage of US consumers who are satisfied with different features (top 3 alt. in a 11-point scale) [self-reported] Best in Class NPS Best in Class NPS On-demand Service Schedule Linear TV Service 58 39 Video quality 84% Video quality 80% Initial Set-up/ins
Slide 28: On-demand services still owning the word of mouth
On-demand services still owning the word of mouth Likelihood to recommend each TV/Video service to a friend, family member or colleague, amongst those who use it [Self-reported] On-Demand TV & video Service Providers Scheduled linear TV Service Providers 58% Overall on demand 46% 38% 39% 33% 32% Ove
Slide 29: Screen shifters and Mobility Centrics are the highest spenders
Screen shifters and Mobility Centrics are the highest spenders Average US monthly household spend on Scheduled linear pay TV and Video on Demand, per TV user group, in USD [Self-reported] VOD Services Scheduled Linear Pay TV services 9 39 32 20 10 22 9 76 64 63 63 67 52 46 Overall TV Couch Screen Co
Slide 30: Why do consumers pay for traditional TV?
Why do consumers pay For traditional TV? And are they planning to change it? Percent of consumers that agree each factor makes it Plans to change TV and media spending in the next 6-12 worth paying for scheduled linear Pay TV (Self-reported) months, scheduled linear Pay TV vs. paid video on- demand
Slide 31: 1 in 5 Netflix users don't use it enough, but stay anyway
1 in 5 Netflix users don’t use it enough, but stay anyway Netflix user attitudes to if they Percentage of Netflix uses that Reasons why Netflix users that use the service enough to don’t use the service enough, feel they do not use the service motivate the cost that have cancelled the service enough
Slide 32: By 2020, On-demand will make up almost half of total viewing
BY 2020, On-demand will make up almost half of the TOTAL VIEWIng Percentage of millennials that prefer on-demand and catch-up over On-demand vs. live/linear viewing share of active viewing linear scheduled viewing [Self-reported] hours [Self-reported] 80% 100% 70% 90% On-demand 80% 60% 70% 60% 50% 5
Slide 33: The future is bright, if you are ready…
The future is bright, if you are ready… 21% of consumers say they will 32% of consumers say they will decrease or eliminate their increase their on-demand scheduled linear Pay TV spending in the next 6-12 spending in the next 6-12 months, and already today months, and 1 in 5 say nothing makes 2 in 5
Slide 34: Globally, by 2020...
Globally, by 2020... ~1/4 of all viewing ~1/2 of all viewing will be on- ~1/3 of consumers will be VR will be done on a demand users smartphone TV TV Media Media 2017 2017 Ericsson EricssonConsumerLab ConsumerLab Presentation EricssonInternal Presentation | Ericsson Internal| © | © Ericsson Ericsson
Slide 35: TV Media 2017 Ericsson ConsumerLab Presentation | Ericsson Internal | © Ericsson AB 2017
TV Media 2017 Ericsson ConsumerLab Presentation | Ericsson Internal | © Ericsson AB 2017 | 2017-10-09 | Page 35 (35)