Tv & Media 2016 Italy Report. Ericsson ConsumerLab

Transcription

1 Tv & Media 2016 Italy Report Ericsson ConsumerLab

2 Ericsson ConsumerLab annual research REPRESENTING 1.1 billion 100,000 PEOPLE RESPONDENTS MORE THAN 40 COUNTRIES Jan 1 st 20 YEARS OF RESEARCH TV Media 2016 Italy Report December 2016 Page 2 (52)

3 METHODOLOGY

4 Representing 1.1 Billion Consumers Qualitative and quantitative Quantitative Base: 13 markets (Used for showing trends) - Brazil, Canada, China, Germany, Italy, Mexico, Russia, South Korea, Spain, Sweden, Taiwan, UK and US All markets: 22+2 markets - Australia, Brazil, Canada, China, Colombia, Dominican Republic, Germany, Greece, India, Italy, Mexico, Netherlands, Poland, Portugal, Russia, South Africa, South Korea, Spain, Sweden, Taiwan, UK & US Romania and Turkey were added later ITALY 26 MILLION Qualitative: 24 in-depth interviews (San Francisco, Cape Town & Stockholm) Quantitative: > online interviews aged in 24 markets TV Media 2016 Italy Report December 2016 Page 4 (52) Source: Ericsson ConsumerLab TV & Media 2016 Study

5 EVOLUTION OF TV

6 TV-Attitudes A greater interest in on-demand capabilities demonstrated by a sharp increase in wanting to decide when to watch TV/video content, while having access to content abroad follow a similar trend TV and Media attitudes* (Showing top 2 answers on 7-graded scale), [self-reported] 70% 60% 50% 40% 30% 20% 10% 0% Internet is a natural part of my TV habits It's ok to stream pirated content I need all my TV/Video content when I'm abroad I prefer on-demand over scheduled viewing Full TV-series seasons should be released at once I would downgrade my internet if I could not access pirate services My traditional TV service provider gives me all I need It's very important to relax in front of the TV I use pirate services, when legal services don't have the right content Accessing TV and video content is a major reason for having a fast internet BASE: Population aged 16-69** watching TV/Video at least weekly and having Broadband at home in Italy, *Trending using a 3 years moving average, TV Media 2016 Italy Report December 2016 Page 6 (52) Source: Ericsson ConsumerLab TV & Media

7 Millennials are going the on-demand way TV and media consumer attitudes (Showing top 2 answers on 7-graded scale), [self-reported] I want to decide when to watch something rather than following a schedule The computer and the Internet is a natural part of my TV/video consumption and habits When I m traveling abroad, I need to have access to all my TV/Video content on the screen of my choice Being able to relax and unwind in front of the TV is very important I strongly prefer all episodes of a TV-series season to be released at once, so that I can binge watch them Getting together and watching content together with others is very important to me I feel that my total TV and video viewing time has increased as I now can use my smartphone or tablet for TV and video viewing If I can't find the TV and video content I want to watch, I use illegal online services I feel that my managed TV service provider allows me to access and watch all the TV and video content I need A major reason for having a fast internet connection is to download or stream videos, TV-series I feel that it is ok to download movies and TV-series illegally I would most likely downgrade my internet subscription if I could not download or stream pirated video For me, the mobile screen is more important than the fixed big TV TV Media 2016 Italy Report December 2016 Page 7 (52) 59% 62% 58% 47% 49% 45% 49% 57% 48% 45% 47% 43% 44% 36% 32% 22% 28% 33% 27% 24% 27% 20% 26% 24% Millennials 21% % Being able to choose when TV and video viewing happens is a stronger preference for Millennials BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

8 scheduled TV viewing lose share of time Share of total viewing hours per week for each type of TV/video content* [self-reported] 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Downloaded movies, TV series & other programs Streamed on-demand movies, TV series & other programs Short video clips DVD/Blu-ray etc Recorded linear TV Scheduled linear TV Even if scheduled linear TV lose share of total viewing time, it is still roughly twice as big as any other TV and video type Streamed on-demand movies and TV programs gains traction, and has increased it s share by 45 percent since 2012 Short video clips (like YouTube) viewing has increased it s share by some 13 percent since 2012 TV Media 2016 Italy Report December 2016 Page 8 (52) Source: Ericsson ConsumerLab TV & Media 2016 Study

9 Viewing habits & behaviour

10 The daily habits of consumers Percentage of people watching different media types at least once per day* [Self-reported] 100% 90% 80% 70% 60% 50% 40% 30% 20% Scheduled broadcast TV Streamed on demand video (YouTube, Short video, movies, programs, TV-series) Recorded broadcast TV 10% 0% TV Media 2016 Italy Report December 2016 Page 10 (52) Base: Population aged 16-69** watching TV/Video at least weekly and having Broadband at home in Italy * Trending using a 3 years moving average, Source: Ericsson ConsumerLab TV & Media 2016 Study

11 Frequency of usage youtube and netflix Percentage of consumers that use each service on an at least daily basis, [Self-reported] Percentage of consumers that use each service on an at least weekly basis, [Self-reported] % 79% % 47% YouTube Netflix % 17% TV Media 2016 Italy Report December 2016 Page 11 (52)

12 Content viewing habits In 2015, On demand & recorded made up for ~1/3 of all active viewing hours While live/linear TV and video made up 59% of the total viewing Today ~40% of all active viewing is on-demand! Consumers spend the most time watching streamed on-demand TV series and UGC content, followed by streamed on demand Movies and downloaded TV and video content Live and Linear TV and video viewing is fueled by TV series, movies as well as with other TV programs. Live sports make up 7% of the total weekly active viewing time Average number of hours active viewing TV/Video per week 2016 in Italy (For different kinds of content) On demand 40% 7% 8% 6% 6% 3% 2% 1% 3% 3% 10% ~35 hours per week 14% 6% 7% TV-series according to a fixed TV schedule Live Sports TV programs according to a fixed TV schedule Streamed, Live events, sports Streamed, Live UGC Streamed, on-demand UGC Streamed, On-demand movies Watch DVD/VHS/Blu-ray, etc. On-demand instruction videos Other Movies according to a fixed TV schedule Live News Live Events Live E-sport Recorded Movies, TV series and other TV programs Streamed, On-demand TV series Downloaded Movies, TV series and other TV programs Streamed, On-demand other TV programs On-demand E-sport 4% 2% 1% 4% 3% 8% Live/linear 57% TV Media 2016 Italy Report December 2016 Page 12 (52) BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

13 Content viewing habits > Millennials vs. 35+ Average number of hours active viewing TV/Video per week 2016 (For different kinds of content) - Millennials vs. 35+ Movies according to a fixed TV schedule TV-series according to a fixed TV schedule TV programs according to a fixed TV schedule Live Sports Live Events Live News Streamed, Live UGC On demand 47% 4% 7% 3% 2% 3% 11% 9% On demand 33% 4% 5% 2% 3% 4% 18% Streamed, Live events, sports Live E-sport Streamed, On-Demand Movies Streamed, On-Demand TV Series Streamed, On-demand other TV programs 2% 8% 4% Millennials ~37 Hours/Week 7% 6% 1% 5% 2% 6% year olds ~32 Hours/Week 11% On-demand E-sport Streamed, on-demand UGC Recorded Movies, TV series and other TV programs Downloaded Movies, TV series and other TV programs Watch DVD/VHS/Blu-ray, etc. On-demand instruction videos Others 10% 8% 2% 4% 3% 5% 3% Live/linear 49% 6% 1% 3% 8% 8% 3% 10% Live/linear 64% TV Media 2016 Italy Report December 2016 Page 13 (52) BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

14 UGC And TV series drive viewing for Millennials Average weekly hours actively watching TV and video content [Self-reported] Movies according to a fixed TV schedule TV-series according to a fixed TV schedule TV programs according to a fixed TV schedule Streamed, On-Demand TV Series Streamed, On-Demand Movies Live Sports Streamed, on-demand UGC Live News Downloaded Movies, TV series and other TV programs Recorded Movies, TV series and other TV programs Streamed, Live events, sports Live Events Others Watch DVD/VHS/Blu-ray, etc. Streamed, On-demand other TV programs Streamed, Live UGC Educational or instruction videos Live E-sport On-demand E-sport TV Media 2016 Italy Report December 2016 Page 14 (52) 0,8 0,6 1,4 1,3 1,2 1,1 1,1 1,0 0,5 0,4 2,0 2,4 2,4 2,2 2,2 2,7 2,9 3,5 5,0 Average weekly hours actively watching TV and video content, age split [Self-reported] Movies according to a fixed TV schedule Streamed, On-Demand TV Series TV-series according to a fixed TV schedule Streamed, On-Demand Movies Streamed, on-demand UGC TV programs according to a fixed TV schedule Downloaded Movies, TV series and other TV programs Live Sports Live News Streamed, Live events, sports Recorded Movies, TV series and other TV programs Streamed, On-demand other TV programs Live Events Streamed, Live UGC Watch DVD/VHS/Blu-ray, etc. Others Educational or instruction videos Live E-sport On-demand E-sport BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study 4,2 3,6 1,9 3,3 3,6 3,0 1,9 3,0 1,5 2,6 3,2 2,4 1,5 2,2 2,5 1,8 2,6 1,6 1,0 1,5 1,2 1,4 0,7 1,2 1,1 1,1 0,5 1,0 1,1 1,0 1,2 0,7 0,5 Millennials 0, ,3 0,2 0,6 5,7

15 The love for TV series At least daily vs at least weekly viewing habits [self-reported] -Core 13 News TV Series Movies Sport Animation Sitcoms Science Children s Documentaries Cookery Music & Arts Talk Shows Reality Shows Fashion & Lifestyle Travel 18% 14% 14% 11% 11% 10% 10% 10% 8% 8% 7% 6% 26% 27% 26% 32% TV Media 2016 Italy Report December 2016 Page 15 (52) 37% 34% 33% 31% 46% 47% 45% 45% 42% 40% 55% Daily 78% 77% Weekly 83% At least daily vs at least weekly viewing habits, Italy [self-reported] News 56% 80% TV Series Movies 46% 43% 82% 87% Sport 23% 55% Animation 17% 38% Cookery Science Talk shows 15% 12% 12% 49% 50% 41% Children s 11% 27% Documentaries Sitcoms Reality shows Music & Art Fashion & Lifestyle Travel 11% 11% 9% 9% 7% 6% 44% 38% 31% 36% 23% 27% Daily Weekly BASE [LEFT GRAPH]: Population aged watching TV/Video at least weekly and having Broadband at home within Brazil, Sweden, China, Germany, Italy, Mexico, Russia, South Korea, Spain, Canada, Taiwan, UK and US BASE [RIGHT GRAPH]: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

16 To binge is to appreciate content Percentage of consumers that watch two or more episodes of the same show [Self-reported] Percentage of consumers, split on age, that watch two or more episodes of the same show on a weekly basis [Self-reported] % 2% 9% 18% Daily Weekly Monthly 15% 13% 0% 11% 24% 37% 4% 1% 22% 20% 13% 40% 1% 6% 17% 11% 21% 44% 11% 41% Less often Never I don't know % 0% 9% 17% 13% 13% 7% 12% 15% 13% 43% 25% 8% 41% 17% 21% 6% 37% TV Media 2016 Italy Report December 2016 Page 16 (52) BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

17 Weekly viewing habits Percentage of consumers that on a weekly basis watch any type of TV/video content in different situations, across age groups [Self-reported] 96% 98% 95% 69% 71% 33% 26% 44% 39% 28% 12% 34% 8% 22% 24% 7% 11% 12% 10% 40% 18% 41% In bed before getting up At home during the morning While commuting At workplace or school At home during the day Out and about in the city Sitting at e.g. a café At events At friends or relatives homes At home during the evening In bed before falling asleep TV Media 2016 Italy Report December 2016 Page 17 (52) BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

18 Weekly viewing habits Percentage of consumers that on a weekly basis watch any type of TV/video content in different situations, across years [Self-reported] 84% 93% 70% 62% 42% 47% 38% 45% 14% 24% 30% 24% 10% 11% 21% 18% 7% 7% 23% 17% 29% In bed before getting up At home during the morning While commuting At workplace or school At home during the day Out and about in the city Sitting at e.g. a café At events At friends or relatives homes At home during the evening In bed before falling asleep TV Media 2016 Italy Report December 2016 Page 18 (52) BASE: Population aged watching TV/Video at least weekly and having Broadband at home in Italy Source: Ericsson ConsumerLab TV & Media

19 CONTENT DISCOVERY

20 Scheduled Broadcast TV VOD-usage overall Netflix Sky Online By Sky Infinity by Mediaset SkyGo by Sky PremiumPlay by Mediaset Mediaset Video Rai TV by RAI VOD users spend 10% more time searching for content Searching for content is 18% of time spent on Broadcast TV Searching for content is 31% of time spent on VoD Average minutes per day spent searching for content before starting to watch something and total average viewing time per service [Self-reported] Daily minutes watching content Daily minutes searching for content The average Italian TV viewer will spend 1,3 years of his/her life searching the TV guide for something to watch TV Media 2016 Italy Report December 2016 Page 20 (52) BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly and do use respective service Source: Ericsson ConsumerLab TV & Media 2016 Study

21 It takes time to find something you want to watch Percentage of consumers that spend time (on average) trying to find something to watch [self-reported] Percentage of UGC Users that spend time (on average) trying to find something to watch [self-reported] Percentage of Non-UGC Users that spend time (on average) trying to find something to watch [self-reported] Within 10 Mins 47% 51% Within 10 Mins 38% 50% Within 10 Mins 57% 63% Within 30 Mins 75% 71% Within 30 Mins 72% 71% Within 30 Mins 83% 81% Traditional Broadcast TV Netflix Consumers that watch Broadcast TV Services and Netflix at least 1-3 hours per day show a similar trend For UGC users, the time it takes to find content in the Traditional Broadcast TV environment is shorter than the time it takes to find content on Netflix! TV Media 2016 Italy Report December 2016 Page 21 (52) BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV TV && Media Study

22 personalized recommendations is more important to millennials Percentage of consumers that think each feature is very important (top 2 answers on a 7 grade scale), [Self-reported] Percentage of millennials vs. those aged 35+, that think each feature is very important (top 2 answers on a 7 grade scale), [Self-reported] Provide Parental control capabilities 26% Personalized content recommendations - Based on viewing habits/demo/location 21% 27% Personalized TV service offering Based on your viewing habits 25% Personalized content recommendations - Based on Past content rating 18% 26% Personalized content recommendations - Based on Past content rating 23% Personalized ads Based on viewing habits/demo/location 17% 23% Personalized content recommendations - Based on viewing habits/demo/location 21% Personalized ads Based on Ad preferences 15% 22% Personalized ads Based on Ad preferences 20% Personalized TV service offering Based on your viewing habits 11% 19% Personalized ads Based on viewing habits/demo/location 18% Provide Parental control capabilities 18% 14% Millennials 35+ TV Media 2016 Italy Report December 2016 Page 22 (52) BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

23 Mobile viewing & devices

24 TV/Media Devices (Have in household) Consistent growth in the ownership of mobile devices, especially smartphones and tablet Percentage of population that have each device within the household* [self-reported] 90% 80% 70% 60% 50% 40% 30% 20% 10% Flat screen (HD) TV (e.g. LCD, LED or Plasma) Flat screen ultra high definition TV (4K/UHDTV) Standalone/separate digital Video Recorder Other TV set or video viewing device Desktop/stationary computer Laptop computer/portable computer/netbook Tablet computer Smartphone Separate box/unit for online TV A game console 0% TV Media 2016 Italy Report December 2016 Page 24 (52) Base: Population aged 16-69** watching TV/Video at least weekly and having Broadband at home in Italy * Trending using a 3 years moving average ¼, ½, ¼, Source: Ericsson ConsumerLab TV & Media

25 TV/Media Devices (Personally use) Consistent growth in the ownership of mobile devices, especially smartphones and tablet Percentage of population that have each device within household, and use it themselves* [self-reported] 90% 80% 70% 60% 50% 40% 30% 20% 10% Flat screen (HD) TV (e.g. LCD, LED or Plasma) Flat screen ultra high definition TV (4K/UHDTV) Standalone/separate digital Video Recorder Other TV set or video viewing device Desktop/stationary computer Laptop computer/portable computer/netbook Tablet computer Smartphone Separate box/unit for online TV 0% TV Media 2016 Italy Report December 2016 Page 25 (52) Base: Population aged 16-69** watching TV/Video at least weekly and having Broadband at home in Italy * Trending using a 3 years moving average ¼, ½, ¼, Source: Ericsson ConsumerLab TV & Media

26 The Number of hours watching tv increase, and the screens used have Shifted Share of total TV-time done on respective device/screen on left axis, and average total nr of hours per week watching TV/video* [Self-reported] TV screen Desktop screen Other screen Laptop screen 100% 75% 50% 25% 0% Smartphone screen Tablet screen Total Hours/Week In the last 4 years share of time spent watching TV/Media on TV screens has dropped some 10 percentage points In the same time period, share of time spent watching TV/Media on smartphones has doubled The ratio between watching TV/video content on fixed vs. mobile screens have moved from 70/30 to 60/40 TV Media 2016 Italy Report December 2016 Page 26 (52) Base: Population aged watching TV/Video at least weekly and having Broadband at home in Italy * Trending using a 3 years moving average ¼, ½, ¼ Source: Ericsson ConsumerLab TV & Media

27 Average Time watching TV on fixed devices Average no. of hours/week* watching TV on a TV-screen Average no. of hours/week* watching TV on a Desktop-screen 16,0 At Home Away from Home 6,0 At Home Away from Home 14,0 12,0 10,0 8,0 1,1 1,3 1,6 1,6 1,5 5,0 4,0 3,0 0,9 1,1 1,4 1,5 1,4 6,0 4,0 2,0 12,3 11,8 10,8 10,9 11,3 2,0 1,0 3,0 3,3 3,7 3,8 3, TV Media 2016 Italy Report December 2016 Page 27 (52) Base: Population aged 16-69** watching TV/Video at least weekly and having Broadband at home in Italy * Trending using a 3 years moving average ¼, ½, ¼,** Age covered in 2012 Source: Ericsson ConsumerLab TV & Media

28 Average Time watching TV on mobile devices Average nr of hours/week* watching TV on a: - Laptop-screen 1,1 1,2 1,4 1,5 1,6 3,8 3,9 4,0 4,1 4, Tablet-screen 1,0 1,0 0,8 0,6 0,4 0,7 0,9 1,1 1,4 1, Smartphone-screen 3,0 2,5 2,0 1,5 1,2 1,6 1,9 2,4 3,0 3, TV Media 2016 Italy Report December 2016 Page 28 (52) Away from Home At Home A slow growth on viewing of TV/video content on laptops, with an equal growth rate at home and away from home The biggest increase in viewing TV/video content on tablets have occurred in the home environment Average Time watching away from home on smartphone has more than doubled since 2012 Base: Population aged 16-69** watching TV/Video at least weekly and having Broadband at home in Italy * Trending using a 3 years moving average ¼, ½, ¼, ** Age covered in 2012 Source: Ericsson ConsumerLab TV & Media

29 Mobile device viewing differ with Age Almost 2/3 of all TV/video viewing hours are spent on a mobile device screen among Italian Youngsters (16-19) Self-reported share of total weekly TV/video viewing time by age group, done on respective device* Self-reported share of total weekly TV/video viewing time by occupation, done on respective device 100% TV screen Desktop screen Other screen Laptop screen Smartphone screen Tablet screen 100% TV screen Other screen Smartphone screen Desktop screen Laptop screen Tablet screen 75% 75% 50% 50% 25% 25% 0% 0% TV Media 2016 Italy Report December 2016 Page 29 (52) Base: Population aged 16-69** watching TV/Video at least weekly and having Broadband at home in Italy * Trending using a 3 years moving average ¼, ½, ¼, Source: Ericsson ConsumerLab TV & Media Study

30 Smartphone viewing has increased the most among millennials over the years Self-reported share of total weekly TV/video viewing time by Millennials, done on respective device* Self-reported share of total weekly TV/video viewing time by 35+ People, done on respective device* TV screen Desktop screen Other screen Laptop screen Smartphone screen Tablet screen TV screen Desktop screen Other screen Laptop screen Smartphone screen Tablet screen 100% 100% 75% 75% 50% 50% 25% 25% 0% % TV Media 2016 Italy Report December 2016 Page 30 (52) Base: Population aged 16-69** watching TV/Video at least weekly and having Broadband at home in Italy * Trending using a 3 years moving average ¼, ½, ¼, Source: Ericsson ConsumerLab TV & Media

31 A split focus for 2 nd screen viewers Percentage of consumers that engage in different activities on a second screen as part of their viewing experience [self-reported] Browse the Internet, related to the content I am watching Online discussions about the content I'm watching 14% 24% 20% 31% 27% 25% 38% 20% Percentage of consumers that engage in TV Related activities on a second screen as part of their viewing experience [self-reported] Overall Italy 35% 30% 21% 15% Watch two or more programs at the same time 8% 20% 23% 49% Millennials 41% 33% 17% 9% Participate in TV contests 6% 15% 23% 56% % 27% 24% 20% Using a companion app 12% 19% 23% 46% Non TV related activitites 26% 29% 21% 24% At least Daily At least weekly Less often Never/don't know *TV related activities Browsing the Internet, related to content I am watching OR Online Discussions about the content OR Watch 2 or more programs at the same time OR participate in TV contests TV Media 2016 Italy Report December 2016 Page 31 (52) BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

32 millennials and 2 nd screen habits Percentage of Millennials that engage in different activities on a second screen as part of their viewing experience [self-reported] At least Daily At least weekly Less often Never/don't know Browse the Internet, related to the content I am watching 27% 37% 23% 13% Online discussions about the content I'm watching 18% 26% 27% 30% Watch two or more programs at the same time 12% 23% 23% 42% Participate in TV contests 7% 19% 23% 50% Using a companion app 16% 22% 24% 39% Non TV related activitites 30% 34% 18% 18% TV Media 2016 Italy Report December 2016 Page 32 (52) BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

33 The growing habits around 2 nd screen viewing, 2014 vs 2016 The percentage of consumers performing activities on a second screen as part of their viewing experience on a weekly basis [self-reported] The percentage of Millennials performing activities on a second screen as part of their viewing experience on a weekly basis [self-reported] 23% 31% 19% % 20% 16% 27% 37% 24% 26% % 23% Browse the Internet, related to the content I am watching Online discussions about the content I'm watching Watch two or more programs at the same time Browse the Internet, related to the content I am watching Online discussions about the content I'm watching Watch two or more programs at the same time TV Media 2016 Italy Report December 2016 Page 33 (52) BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

34 2 nd screen habits is more prevalent among on-demand users The percentage of consumers performing activities on a second screen as part of their viewing experience on a weekly basis [self-reported] 48% 30% 36% 35% 35% 27% 26% 27% 27% 20% 21% 28% Browse the Internet, related to the content I am watching Online discussions about the content I'm watching Watch two or more programs at the same time Daily Traditional TV Viewer Daily Netflix Viewer Daily VOD* Viewer Daily UGC Viewer TV Media 2016 Italy Report December 2016 Page 34 (52) *VOD Long form Video on Demand and not shorts videos BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

35 Evolution of TV user groups

36 Definitions of TV-User groups TV Couch Traditionalist Heavy usage of Broadcasted TV via the traditional TV-screen, but not much other media consumption Computer Centric Mainly consume streamed/downloaded media via computer screen Screen Shifter Use any screen, anywhere for all kind of media content Average TV-Joe Average spend TV-time and light other media usage Mobility Centric Firstly and mostly use the mobile screen for all (but broadcasted) media consumption TV Zero Light media usage overall TV Media 2016 Italy Report December 2016 Page 36 (52) BASE: Online population aged 16-69**** watching TV/Video at least weekly and having Broadband at home in Brazil **, Canada***, China, Germany, Italy***, Mexico***, Russia***, South Korea**, Spain, Sweden, Taiwan, UK and US * Trending using a 3 years moving average ¼, ½, ¼, ** included , ***included , **** Age covered in Source: Ericsson ConsumerLab TV & Media

37 Main Characteristics TV Couch Traditionalist 35+, most of them are employed, No university education, married w kids, small household, live in small town or suburb Screen Shifter Mobility Centric Computer Centric Average TV-Joe Male, 35+, full time worker with university education, married w kids, larger household, live in Metropolitan areas and medium cities Male, Millennial, full time worker with university education, single without kids, live with parents in larger household in Metropolitan city close to the center Male, Millennial, full time student, single without kids, live with parents in larger household close to city center 35+, full time worker with university education, married/living with partner and kids in smaller household in small town or suburb TV Zero Female, not full time worker, single, no kids, don t live with parents TV Media 2016 Italy Report December 2016 Page 37 (52) BASE: Population aged watching TV/Video at least weekly and having Broadband at home in Brazil, Canada, China, Germany, Italy, Mexico, Russia, South Korea, Spain, Sweden, Taiwan, UK and US Source: Ericsson ConsumerLab TV & Media 2016

38 TV-USER groups in Ericsson Consumerlab Market monitor Screen Shifter Average TV-Joe Computer Centric Mobility Centric TV Couch Traditionalist TV Zero TV Media 2016 Italy Report December 2016 Page 38 (52) BASE: Population aged watching TV/Video at least weekly and having Broadband at home in Brazil, Canada, China, Germany, Italy, Mexico, Russia, South Korea, Spain, Sweden, Taiwan, UK and US Source: Ericsson ConsumerLab TV & Media 2016

39 MOBILITY centric segment has Exploded! Percentage of population belonging to each segment respective year* [Self-reported] TV Couch Traditionalist Screen Shifter Computer Centric Mobility Centric Average TV-Joe TV Zero The TV Couch Traditionalists have shrunk in size by 23 percent since % 16% 15% 13% 11% 19% 18% 21% 24% 27% 18% 19% 15% 12% 9% 14% 14% 15% 15% 14% 16% 19% 21% 23% 25% 16% 15% 13% 12% 12% Computer Centrics have kept stable in size, with only a 5 percent increase Mobility Centrics have on the other hand increased by over 100 percent during the same time period! An increase of 54 percent among Screen shifters TV Media 2016 Italy Report December 2016 Page 39 (52) Base: Population aged 16-69** watching TV/Video at least weekly and having Broadband at home in Italy * Trending using a 3 years moving average ¼, ½, ¼, Source: Ericsson ConsumerLab TV & Media

40 Current SERVICE EXPERIENCE

41 Satisfaction of features on-demand vs Broadcast TV Percentage of consumers who are satisfied with different features - Broadcast TV vs. On-Demand TV (top 3 alt. in a 11-point scale) [self-reported] Available content User Experience 40% 39% 49% 49% Broadcast TV services On-Demand services Mobility 32% 49% Content Discovery Initial Set-up/installation Video quality 38% 48% 43% 47% 48% 47% The price 34% 44% International Access 25% 43% Personalization Pricing Plans 32% 31% 43% 41% Customer Services TV Media 2016 Italy Report December 2016 Page 41 (52) 30% 36% BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

42 Features that drive the adoption of new paid TV-video services Percentage of consumers that find the features important when choosing a Pay-service (top 2 alt. in a 7-point scale), [self-reported] The price Video quality No binding times Available content Pricing Plans Free trial Customer Services Personalization User Experience Content Discovery Initial Set-up/installation Mobile Streaming experience Mobility International Access 47% 54% 53% 70% 69% 67% 64% 64% 64% 63% 63% 60% 75% 73% Percentage of consumers that find the features important when choosing a Pay-service, by age (top 2 alt. in a 7-point scale), [self-reported] Video quality The price Available content No binding times Pricing Plans Personalization Free trial Content Discovery Customer Services User Experience Initial Set-up/installation Mobile Streaming experience Mobility International Access 50% 44% 56% 55% 54% 54% 53% 74% 73% 67% 72% 73% 77% 66% 73% 65% 69% 64% 64% 63% 66% 61% 64% 61% 66% 60% 66% 64% Millennials 35+ TV Media 2016 Italy Report December 2016 Page 42 (52) BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

43 Improvement of experience

44 Un-limit my stream Percentage of consumers interested in a mobile subscription plan including unlimited video streaming in standard definition [self-reported] 7 Very interested 6 19% 18% 37% The possibility of having unlimited consumption of data for streaming purposes is tempting to many consumers, as it would decrease their fears of running out of data after streaming TV and video content % 4% 18% 20% 37% 37% of consumers in Italy are interested in such a service. From an age perspective, millennials show the higher interest where over 50% of them show interest in such a service offer! 1 Not interested at all 14% BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy TV Media 2016 Italy Report December 2016 Page 44 (52) Source: Ericsson ConsumerLab TV & Media 2016 Study

45 Importance of TV related Factors Average score, on a 7-graded scale, showing how important each TV Media feature is* [self-reported] 6,0 Free from ads/commercials HD quality 5,5 5,0 4,5 4, K / UHD Quality À la carte TV-/video package My TV-/Video content anywhere Time shift/on demand Subtitles Interactive TV Theatrical release directly on my TV Excellent HD Quality has remained an important factor over the years, with the importance of having access to content anywhere as well as time-shift capabilities have steadily been increasing over the years TV Media 2016 Italy Report December 2016 Page 45 (52) Base: Population aged 16-69** watching TV/Video at least weekly and having Broadband at home in Italy * Trending using a 3 years moving average ¼, ½, ¼, Source: Ericsson ConsumerLab TV & Media 2016

46 Importance of TV media features Percentage of consumers that say each TV Media feature is important (top 2 answers on 7-point scale), [Self-reported] Percentage of consumers that say each TV Media feature is important, by age (top 2 answers on 7-point scale), [self-reported] Free from ads/commercials 56% HD quality 57% 54% HD quality 55% Free from ads/commercials 55% 57% Theatrical releases directly on my TV Perfect live video and sound at large events On demand / Time shift 4K / UHD quality Dubbed Audio À la carte TV-/video package TV-/Video content anywhere Subtitles Premium live TV Virtual Reality TV and video Augmented Reality 52% 50% 48% 43% 43% 42% 41% 38% 36% 33% 32% Theatrical releases directly on my TV Perfect live video and sound at large events On demand / Time shift Dubbed Audio 4K / UHD quality Subtitles TV-/Video content anywhere À la carte TV-/video package Premium live TV Virtual Reality TV and video 54% 51% 52% 49% 47% 48% 44% 42% 44% 43% 44% 34% 43% 39% 40% 44% 36% 36% 35% 31% Different Camera Angles Interactive TV 31% 29% Augmented Reality Different Camera Angles Interactive TV 35% 30% 33% 30% 32% 27% Millennials 35+ TV Media 2016 Italy Report December 2016 Page 46 (52) BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

47 Features worth paying for Percentage of consumers that say each TV Media feature is worth paying for (top 2 answers on 7-point scale) [self-reported] Percentage of consumers that say each TV Media feature is worth paying for, by age (top 2 answers on 7-point scale) [self-reported] Free from ads/commercials 40% Free from ads/commercials 39% 41% HD quality 37% HD quality 37% 36% On demand / Time shift 4K / UHD quality À la carte TV-/video package Perfect live video and sound at large events Theatrical releases directly on my TV My TV-/Video content anywhere Dubbed Audio Premium live TV Subtitles None of these features Interactive TV Virtual Reality TV and video Augmented Reality Different Camera Angles 33% 29% 28% 26% 24% 22% 18% 16% 15% 15% 15% 14% 14% 12% On demand / Time shift 4K / UHD quality À la carte TV-/video package My TV-/Video content anywhere Theatrical releases directly on my TV Perfect live video and sound at large events Subtitles Dubbed Audio Augmented Reality Virtual Reality TV and video Interactive TV Premium live TV Different Camera Angles 33% 34% 32% 26% 26% 29% 25% 20% 24% 23% 24% 27% 20% 11% 20% 17% 17% 11% 16% 12% 15% 14% 15% 16% 12% 11% Millennials 35+ TV Media 2016 Italy Report December 2016 Page 47 (52) BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

48 Show me the money

49 Challenges with advertising Percent of people interested in different types of personalized advertising [self-reported] Personalized ads, based on you specifying which ads you don t want to see again Personalized ads, based on your viewing habits, age, gender and zip code 18% 20% 56% of consumers in Italy say an Ad-free experience is important and 40% think it is worth paying for! BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study TV Media 2016 Italy Report December 2016 Page 49 (52)

50 Monthly Household Spending Average spend is 93 Euro, but around 22% of the households spend 125+ Euro/month Euro EUR Linear TV VOD-services Cinema/Movie Theater Physical media 25 0 % of Households TV Media 2016 Italy Report December 2016 Page 50 (52) BASE: Population aged with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study

51 TV Media 2016 Italy Report December 2016 Page 51 (52)