- Ericsson ConsumerLab TV & Media Report, representing
views of 1.1 billion consumers, reveals massive scale of growth in mobile video
viewing. South Korea is one of the major markets in global study and results in
this year represent views of 32 million Korean consumers.
- Weekly share of time spent watching TV and video on
mobile devices has grown by 85 percent in the last six years in global level. The
ratio between fixed and mobile device viewing over the last four years have changed from 70/30 to approximately 60/40 in South Korea.
- Although consumers in South Korea spend comparatively
more time choosing what to watch on video on-demand (VOD) services than
scheduled linear TV services, they rate VOD services higher.
Ericsson (NASDAQ: ERIC) launched
the seventh edition of its annual ConsumerLab TV & Media Report, which details the enormous and rapid shift in TV and video viewing
behavior towards mobility. The report also shows that while both mobile video
and on-demand TV viewing have soared over the past seven years, content
discovery remains a huge frustration for consumers.
In South Korea, weekly share of total viewing hours on
mobile screens such as smartphones, tablets and laptops, have grown
continuously. The velocity of the change has potentially slowed a fraction, but
it clearly suggests that the proportion of viewing on fixed vs. mobile screens
– which was 70:30 in 2013, is now 60:40 and will continue shifting.
· Weekly share of time spent watching TV and video on mobile
devices has grown by 28 percent (2013-2016); on fixed screens it has gone down
by 12 percent over the same period.
· Consumers’ mobile viewing habits thrive with the
perception of unlimited video streaming. 26% of consumers in South Korea are
interested in a mobile data plan that includes unrestricted video streaming.
· The 2nd screen behavior continue to evolve in browsing
the internet for related content. 65 percent of consumers in South Korea use
the second screen every week to complement the content on the big TV screen.
discovery – how hard can it be?
A major issue, highlighted by the report, is low
consumer satisfaction when trying to find something to watch. In South Korea,
even though both scheduled linear TV and VOD have the same time spent searching
for content (25 minutes), the share of the total time differs between the two
types of viewing. Broadcast TV users
spend 20 percent of their sessions searching for content, while on-demand users
spend 35 percent of their sessions searching. Nevertheless, 40 percent of South
Korean consumers say they can’t find anything to watch on linear TV on a daily
basis, in contrast, only 23 percent say the same thing for VOD services.
Paradoxically, 36 percent of consumers claim that they
are very satisfied with content discovery when it comes to their VOD service, while
only 24 percent say the same for linear TV. The findings suggest that althoughthe VOD
discovery process is comparatively more time consuming than with linear
broadcast TV, consumers rate it as less frustrating, as it implicitly promises
the opportunity to find something they want to watch, when they want to watch
Cathaya Xu, Head of ConsumerLab RNEA, says: “Content
discovery is becoming an important factor that impact viewers overall video
experience. Poor discovery services ‘hides’ content, partially wasting content
rights investments. The recommendations a consumer gets should not be dependent
on the type of content, great recommendations need to be based on the
individual consumer and their mood.”
on-demand services soars:
The portion of the total viewing hours for streamed on-demand
content – such as streamed TV series, movies, other TV programs and short video
clips (like YouTube) – has increased by 43 percent since 2013. Strong
indicators of this growing engagement and satisfaction with VOD services include:
· Consumers continue to embrace binge watching; 35
percent in South Korea watch two or more episodes of the same show in a row on
a weekly basis, more than 10 percent say they do this daily
· Consumer spending on VOD services in South Korea has increased
by over 30 percent since 2012, it now accounts for about 13 percent of the
average household media spending.
· 36 percent of respondents in South Korea say they
watch YouTube daily; for people aged 16-19, more than half of them watch
YouTube on daily basis.
Zeynep Ahmed, Senior Advisor, Ericsson ConsumerLab,
says: “Based on our extensive research, we can see consumers increasingly ask
for seamless access to high quality TV and video content, across services and
devices. For consumers in general, and millennials in particular, being able to
watch on the smartphone is key. Consumers not only want the shared, social
broadcast TV experience, they also expect the flexibility of an à la carte
on-demand media offering. Today’s experience is multifaceted and consumers want
to create their own worlds of compelling, personalized content.”
Cathaya also mentions: “Even if scheduled linear TV
loses share of total viewing time, it is still roughly twice as big as any
other TV and video type. Paid scheduled linear TV services continue to account
for about 29 percent of the average household media spending in South Korea.
However, consumers are looking for an immersive content viewing experience, meaning
fully engaging in the content they like, how they like. As viewing expands to
include different services, so does the consumers TV/video spending. Providers
must expand their service offering if they wish to preserve current revenues.”
Based on interviews with 30,000 individuals in 24
countries, statistically representing the views of 1.1 billion people, the
Ericsson ConsumerLab TV and Media Report 2016 is the largest study of its kind
into TV viewing habits. 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 16-69
across 24 markets: Australia, Brazil, Canada, China, Colombia, Dominican
Republic, Germany, Greece, India, Italy, Mexico, the Netherlands, Poland,
Portugal, Romania, Russia, South Africa, Spain, Sweden, Taiwan, Turkey, the UK
and the US. All respondents have a broadband Internet connection at home and
watch TV and video at least once a week. Almost all use the Internet on a daily
South Korea is one of the major markets in the global
study. More than 1000 online interviews were held with people aged 16-69 who
have a broadband internet connection at home and watch TV/video at least once a
week. Result in this year represents views of 32 million Korean consumers.