TV & Media Consumer Insights

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1 TV & Media Consumer Insights Ericsson ConsumerLab Anders Erlandsson Niklas Heyman Rönnblom

2 Ericsson ConsumerLab annual research REPRESENTING 1.1 billion 100,000 PEOPLE RESPONDENTS 40 MORE THAN COUNTRIES 1 MEGACITIES STUDIED ConsumerLab TV & Media Consumer Insights - TV Dagen 2014 Commercial in confidence Ericsson AB Page 2 (21)

3 TV & Media Quant: ~ online interviews (1000/country) in Australia, Austria, Brazil, Canada, Chile, China, Colombia, France, Germany, Italy, Mexico, Netherlands, Russia, Spain, South Korea, Sweden, Taiwan, UK, US Source: Ericsson ConsumerLab TV & Media Study ConsumerLab TV & Media Consumer Insights - TV Dagen 2014 Commercial in confidence Ericsson AB Page 3 (21)

4 TV & Media Markets Quant: Another online interviews (1000/country) + booster for age (Brazil, Canada, Chile, China, France, Germany, Greece, Indonesia, Ireland, Italy, Malaysia, Mexico, Portugal, Russia, Singapore, Spain, South Korea, Sweden, Taiwan, Turkey, UAE, UK, US) Source: Ericsson ConsumerLab TV & Media 2013 Study ConsumerLab TV & Media Consumer Insights - TV Dagen 2014 Commercial in confidence Ericsson AB Page 4 (21)

5 HD and live content HD quality is considered more important among the live content segments Rank 1 Most important Sports Fans Live TV Event Junkies Movie Buffs Excellent quality (HD) Excellent quality (HD) Free from ads TV Serie Aficionados Free from ads Free from ads Free from ads Excellent quality (HD) Excellent quality (HD) Time shift/on demand Time shift/on demand Time shift/on demand Time shift/on demand Super simplicity À la carte offerings Super simplicity À la carte offerings Extreme quality (4K) Super simplicity À la carte offerings Super simplicity 6-10 Least important BASE: All 1 markets [Those who answered top 1 on a 7-graded scale: I agree completely to the questions (from left to right in the above matrix): Being able to watch live sports is very important to me, Being able to watch live events other than sports is very important to me, Being able to watch good TV-series is very important to me and finally Being able to watch good movies is very important to me ] Source: Ericsson ConsumerLab TV & Media 2013 Study ConsumerLab TV & Media Consumer Insights - TV Dagen 2014 Commercial in confidence Ericsson AB Page (21)

6 Live content & socializing Use secondary device (e.g. smartphone, tablet or laptop) while watching TV in order to (Showing at least weekly usage among content focus groups) Discuss the content I am currently watching online 39% 49% Compete with others watching the same show 20% 27% Interact with the show through voting 19% 27% Live TV Event Junkies Live betting on a sports event 19% 24% TV Sport Fans TV Serie Aficionados Movie Buffs People who value live event and sport viewing are generally much more active using secondary devices while viewing BASE: All 1 markets, [Showing weekly or more usage among those who answered top 1 on a 7-graded scale: I agree completely to the questions (from top to bottom above): Being able to watch live events other than sports is very important to me, Being able to watch live sports is very important to me, Being able to watch good TV-series is very important to me and finally Being able to watch good movies is very important to me ] Source: Ericsson ConsumerLab TV Media Consumer trends 2013 ConsumerLab TV & Media Consumer Insights - TV Dagen 2014 Commercial in confidence Ericsson AB Page 6 (21)

7 Mobile viewing Laptop 2013 Average hours watching video on each device per week (Among device users) Laptop 2012 Smartphone 2013 Smartphone 2012 Tablet 2013 Tablet 2012 At home Away from home hours 72% use mobile screens for video viewing each week BASE: Extended 9 markets, [Those who have and use respective device] Source: Ericsson ConsumerLab TV & Media 2013 Study ConsumerLab TV & Media Consumer Insights - TV Dagen 2014 Commercial in confidence Ericsson AB Page 7 (21)

8 Data usage Data consumption In MBs (Download + Upload) US Total Smartphone Wi-Fi consumption (Among sample) US Total Smartphone cellular consumption (Among sample) Light Video Users (< 1 hr) US 73% of sample Medium Video Users (1-3hrs) US 1% Heavy Video Users ( > 3hrs) US 11% The figure shows Wi-Fi and cellular network data usage among different types of video users. The classification of the video usage groups are based on the time spent on video related apps in a month (within ODM Sample) Source : On-device metering data from Nielsen (000 Smartphone users in each market) Base: Smartphone users who use video apps on mobile phone ConsumerLab TV & Media Consumer Insights - TV Dagen 2014 Commercial in confidence Ericsson AB Page 8 (21)

9 Individualized Viewing People with larger households are more likely to watch TV/Video content on mobile devices Avg. no. of hours spent weekly watching TV/Video by screen TV-Screen Desktop/Stationary Computer Screen Laptop/Portable Computer Screen/Netbook Smartphone Tablet Screen One Two Three Four Five & More No. of people in the household Base: All 1 markets [At least weekly viewing] Source: Ericsson ConsumerLab TV Media Consumer trends 2013 ConsumerLab TV & Media Consumer Insights - TV Dagen 2014 Commercial in confidence Ericsson AB Page 9 (21)

10 Individualized Viewing People with larger households are more likely to watch TV/Video content on mobile devices Avg. no. of hours spent weekly watching TV/Video by screen TV-Screen Desktop/Stationary Computer Screen Laptop/Portable Computer Screen/Netbook Smartphone Tablet Screen One Two Three Four Five & More No. of people in the household Base: All 1 markets [At least weekly viewing] Source: Ericsson ConsumerLab TV Media Consumer trends 2013 ConsumerLab TV & Media Consumer Insights - TV Dagen 2014 Commercial in confidence Ericsson AB Page 10 (21)

11 What Consumers Want What is important? Free from ads/commercials Time shift/on Demand Excellent quality (HD quality) Super simplicity À la carte TV/Video content Willingness to pay? Free from ads/commercials Excellent quality (HD quality) Time shift/on Demand À la carte TV/Video content Theatrical releases on TV PPV & T-VOD AD-FUNDED SUBSCRIPTION BASE: 7 Core markets (US, UK, Germany, Spain, Sweden, China and Taiwan), (Relative importance/willingness to pay) Source: Ericsson ConsumerLab TV & Media 2013 Studies ConsumerLab TV & Media Consumer Insights - TV Dagen 2014 Commercial in confidence Ericsson AB Page 11 (21)

12 Individualized Experience ADverts >40% are OK to share personal information to get personalized offers If I get the service for free, they can spam me all day long if they like! Male, 24, student PERMISSIBILITY VALUE SHARING TRANSPARENCY Benefits beats sensitivity Source: Ericsson ConsumerLab, Personal Information Economy study 2013 ConsumerLab TV & Media Consumer Insights - TV Dagen 2014 Commercial in confidence Ericsson AB Page 12 (21)

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