TV Media 2016 Italy Report
Transcript
TV Media 2016 Italy Report
Tv & Media 2016 Italy Report Ericsson ConsumerLab Ericsson ConsumerLab annual research REPRESENTING 1.1 billion 100,000 PEOPLE RESPONDENTS MORE THAN 40 COUNTRIES TV Media 2016 Italy Report | December 2016 | Page 2 (52) Jan 1st 20 YEARS OF RESEARCH METHODOLOGY 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: >30 000 online interviews aged 16-69 in 24 markets Source: Ericsson ConsumerLab TV & Media 2016 Study TV Media 2016 Italy Report | December 2016 | Page 4 (52) EVOLUTION OF TV TV-Attitudes 2012-2016 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% Internet is a natural part of my TV habits It's ok to stream pirated content 60% I need all my TV/Video content when I'm abroad 50% I prefer on-demand over scheduled viewing 40% Full TV-series seasons should be released at once I would downgrade my internet if I could not access pirate services 30% My traditional TV service provider gives me all I need 20% It's very important to relax in front of the TV I use pirate services, when legal services don't have the right content 10% Accessing TV and video content is a major reason for having a fast internet 0% 2012 2013 2014 2015 2016 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 2012-2016 TV Media 2016 Italy Report | December 2016 | Page 6 (52) Millennials are going the on-demand way TV and media consumer attitudes (Showing top 2 answers on 7-graded scale), [self-reported] 59% 62% 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 47% When I’m traveling abroad, I need to have access to all my TV/Video content on the screen of my choice 49% 45% 58% 49% 57% 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 48% 45% 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 47% 43% 44% 36% 32% 28% 33% 27% 24% I feel that it is ok to download movies and TV-series illegally 27% 20% I would most likely downgrade my internet subscription if I could not download or stream pirated video 26% 24% For me, the mobile screen is more important than the fixed big TV Millennials 22% A major reason for having a fast internet connection is to download or stream videos, TV-series 21% 20% Being able to choose when TV and video viewing happens is a stronger preference for Millennials 35+ BASE: Population aged 16-69 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 7 (52) 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% 2012 2013 2014 2015 Downloaded movies, TV series & other programs DVD/Blu-ray etc Streamed on-demand movies, TV series & other programs Short video clips Recorded linear TV 2016 › 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 Scheduled linear TV Source: Ericsson ConsumerLab TV & Media 2016 Study TV Media 2016 Italy Report | December 2016 | Page 8 (52) Viewing habits & behaviour The daily habits of consumers Percentage of people watching different media types at least once per day* [Self-reported] 100% 90% 80% 70% Scheduled broadcast TV 60% Streamed on demand video 50% (YouTube, Short video, movies, programs, TV-series) 40% Recorded broadcast TV 30% 20% 10% 0% 2012 2013 2014 2015 2016 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 TV Media 2016 Italy Report | December 2016 | Page 10 (52) 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] 90 76% 79% 80 70 60 50 43% 47% YouTube Netflix 40 30 20 17% 12% 10 0 2015 2016 TV Media 2016 Italy Report | December 2016 | Page 11 (52) 2015 2016 2015 2016 2015 2016 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) 1%3% 2% 3% 10% 3% On demand 40% 6% 14% ~35 7% hours per week 8% 6% 6% 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 TV Media 2016 Italy Report | December 2016 | Page 12 (52) 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 7% 4% 2%1% 4% 3% 8% Live/linear 57% BASE: Population aged 16-69 with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study 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 On demand 47% 3% Live Events On demand 3% 2% 33% 11% 4% 3% 7% 4% 9% 4% Streamed, Live events, sports 5% Live E-sport Millennials 8% 7% ~37 Hours/Week 2% Streamed, On-demand other TV programs 4% Watch DVD/VHS/Blu-ray, etc. On-demand instruction videos 11% ~32 Hours/Week 6% 6% 3% 10% 3% 8% 4% 2% 10% 1% 3% 5% Recorded Movies, TV series and other TV programs Downloaded Movies, TV series and other TV programs 2% 6% On-demand E-sport Streamed, on-demand UGC 35-69 year olds 1% Streamed, On-Demand Movies Streamed, On-Demand TV Series 18% 5% Live News Streamed, Live UGC 2% Live/linear 49% 8% 8% 3% Live/linear 64% Others BASE: Population aged 16-69 with broadband at home who watch any type of TV/Video at least weekly in Italy TV Media 2016 Italy Report | December 2016 | Page 13 (52) Source: Ericsson ConsumerLab TV & Media 2016 Study 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 Average weekly hours actively watching TV and video content, age split [Self-reported] 5,0 TV-series according to a fixed TV schedule 3,5 TV programs according to a fixed TV schedule 2,9 Streamed, On-Demand TV Series 2,7 Streamed, On-Demand TV Series Streamed, on-demand UGC Live Sports 2,4 TV programs according to a fixed TV schedule Streamed, on-demand UGC 2,2 Downloaded Movies, TV series and other TV programs Live News 2,2 Live Sports 1,4 Streamed, Live events, sports Streamed, Live events, sports 1,3 Recorded Movies, TV series and other TV programs Live Events 1,2 Streamed, On-demand other TV programs Others 1,1 Live Events Watch DVD/VHS/Blu-ray, etc. 1,1 Streamed, Live UGC Streamed, On-demand other TV programs 1,0 Watch DVD/VHS/Blu-ray, etc. Streamed, Live UGC 0,8 Others Educational or instruction videos 0,6 Educational or instruction videos On-demand E-sport TV Media 2016 Italy Report | December 2016 | Page 14 (52) 0,5 0,4 3,3 3,6 3,0 1,9 Live E-sport On-demand E-sport 3,0 1,5 2,6 1,5 3,2 2,4 2,2 2,5 1,8 Live News Recorded Movies, TV series and other TV programs Live E-sport 1,9 Streamed, On-Demand Movies 2,4 2,0 3,6 TV-series according to a fixed TV schedule Streamed, On-Demand Movies Downloaded Movies, TV series and other TV programs 4,2 Movies according to a fixed TV schedule 1,0 0,7 0,5 2,6 1,6 1,5 1,2 1,4 1,2 1,1 1,1 1,0 1,1 1,0 1,2 0,7 0,5 0,7 0,3 0,20,6 Millennials 35+ BASE: Population aged 16-69 with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study 5,7 The love for TV series At least daily vs at least weekly viewing habits [self-reported] -Core 13 55% News 78% 46% TV Series 32% Movies 77% 18% Sport Animation 14% Sitcoms 14% Science 11% Children’s 11% Documentaries 10% Cookery 10% Music & Arts 10% Talk Shows 8% Reality Shows 8% Fashion & Lifestyle 7% Travel 6% 83% 46% TV Series 23% 45% Science 12% Talk shows 12% Children’s 11% Documentaries 11% Sitcoms 11% 40% 34% Daily Weekly Reality shows 9% Music & Art 9% 27% Fashion & Lifestyle 7% 26% Travel 6% TV Media 2016 Italy Report | December 2016 | Page 15 (52) 87% 38% 15% Cookery 42% 82% 55% 17% 45% 26% 80% 43% Movies Animation 37% 31% 56% News Sport 47% 33% At least daily vs at least weekly viewing habits, Italy [self-reported] 49% 50% 41% 27% 44% 38% 31% Daily 36% Weekly 23% 27% BASE [LEFT GRAPH]: Population aged 16-69 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 16-69 with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study 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] 16-19 20-24 0% 2% 4% 25-34 1% 1% 6% 11% 9% 24% 18% Daily 15% 20% 13% 13% 19% 17% 11% 40% 37% Weekly 21% 22% 44% Monthly Less often 11% 41% 35-44 Never 45-59 3% I don't know 9% 60-69 0% 13% 17% 7% 12% 13% 17% 15% 25% 13% 41% 43% 8% 37% 21% 6% BASE: Population aged 16-69 with broadband at home who watch any type of TV/Video at least weekly in Italy TV Media 2016 Italy Report | December 2016 | Page 16 (52) Source: Ericsson ConsumerLab TV & Media 2016 Study 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] 98% 96% 95% 71% 69% 41% 44% 40% 39% 33% 34% 28% 26% 12% In bed before getting up 16-19 At home during the morning 20-24 24% 22% While commuting 25-34 8% At workplace or school 35-44 7% At home during the day Out and about in the city 45-59 18% 11%12% Sitting at e.g. a café 10% At events At friends’ or relatives’ homes At home during the evening In bed before falling asleep 60-69 BASE: Population aged 16-69 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 17 (52) Weekly viewing habits 2013-2016 Percentage of consumers that on a weekly basis watch any type of TV/video content in different situations, across years [Self-reported] 93% 84% 70% 62% 47% 45% 42% 38% 30% 29% 24% 24% 14% 2013 At home during the morning 2014 7% While commuting 2015 18% 11% 10% In bed before getting up 23% 21% At workplace or school At home during the day Out and about in the city 17% 7% Sitting at e.g. a café At events At friends’ or relatives’ homes At home during the evening In bed before falling asleep 2016 BASE: Population aged 16-69 watching TV/Video at least weekly and having Broadband at home in Italy Source: Ericsson ConsumerLab TV & Media 2012-2016 TV Media 2016 Italy Report | December 2016 | Page 18 (52) CONTENT DISCOVERY VOD users spend 10% more time searching for content Searching for content is 18% of time spent on Broadcast TV 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 23 28 29 26 26 27 104 23 20 1,3 years of his/her life searching the TV guide for something to watch 59 61 53 48 45 SkyGo by Sky PremiumPlay by Mediaset Mediaset Video Rai TV by RAI Netflix VOD-usage overall Sky Online By Sky 64 Infinity by Mediaset 82 58 Scheduled Broadcast TV Searching for content is 31% of time spent on VoD 30 The average Italian TV viewer will spend BASE: Population aged 16-69 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 TV Media 2016 Italy Report | December 2016 | Page 20 (52) 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] Within 10 Mins 47% Traditional Broadcast TV Within 10 Mins 51% 75% Within 30 Mins Percentage of UGC Users that spend time (on average) trying to find something to watch [self-reported] 71% Within 30 Mins 38% Percentage of Non-UGC Users that spend time (on average) trying to find something to watch [self-reported] Within 10 Mins 50% 72% 71% 63% 57% 83% Within 30 Mins 81% 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! BASE: Population aged 16-69 with broadband at home who watch any type of TV/Video at least weekly in Italy Source:Ericsson EricssonConsumerLab ConsumerLabTV TV&&Media Media2016 2016Study Study Source: TV Media 2016 Italy Report | December 2016 | Page 21 (52) 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] Provide Parental control capabilities 26% Personalized TV service offering – Based on your viewing habits 25% Personalized content recommendations - Based on Past content rating Personalized content recommendations - Based on viewing habits/Demo/Location Personalized ads – Based on Ad preferences Personalized ads –Based on viewing habits/Demo/Location 23% 21% 20% 18% Percentage of millennials vs. those aged 35+, that think each feature is very important (top 2 answers on a 7 grade scale), [Self-reported] Personalized content recommendations Based on viewing habits/Demo/Location 27% 21% Personalized content recommendations Based on Past content rating 26% 18% Personalized ads –Based on viewing habits/Demo/Location Personalized ads – Based on Ad preferences Personalized TV service offering – Based on your viewing habits Provide Parental control capabilities 23% 17% 22% 15% 19% 11% 18% 14% Millennials 35+ BASE: Population aged 16-69 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 22 (52) Mobile viewing & devices TV/Media Devices 2012-2016 (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% Flat screen (HD) TV (e.g. LCD, LED or Plasma) 80% Flat screen ultra high definition TV (4K/UHDTV) 70% Standalone/separate digital Video Recorder 60% Other TV set or video viewing device 50% Desktop/stationary computer Laptop computer/portable computer/Netbook 40% Tablet computer 30% Smartphone 20% Separate box/unit for online TV 10% A game console 0% 2012 2013 2014 2015 2016 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 2012-2016 TV Media 2016 Italy Report | December 2016 | Page 24 (52) TV/Media Devices 2012-2016 (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% 70% Flat screen (HD) TV (e.g. LCD, LED or Plasma) Flat screen ultra high definition TV (4K/UHDTV) Standalone/separate digital Video Recorder 60% Other TV set or video viewing device 50% Desktop/stationary computer 80% Laptop computer/portable computer/Netbook 40% Tablet computer 30% Smartphone 20% Separate box/unit for online TV 10% 0% 2012 2013 2014 2015 2016 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 2012-2016 TV Media 2016 Italy Report | December 2016 | Page 25 (52) 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 Smartphone screen Tablet screen Total Laptop screen Hours/Week 100% 40 35 75% 30 25 50% 20 15 25% 10 5 0% 0 2012 2013 2014 2015 › 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 2016 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 2012-2016 TV Media 2016 Italy Report | December 2016 | Page 26 (52) Average Time watching TV on fixed devices Average no. of hours/week* watching TV on a TV-screen At Home Average no. of hours/week* watching TV on a Desktop-screen Away from Home At Home 16,0 14,0 12,0 1,1 5,0 1,3 1,6 1,6 1,5 4,0 10,0 1,4 1,5 1,4 3,7 3,8 3,8 2014 2015 2016 1,1 0,9 8,0 6,0 Away from Home 6,0 3,0 12,3 11,8 10,8 10,9 11,3 2,0 4,0 3,0 3,3 2012 2013 1,0 2,0 - 2012 2013 2014 2015 2016 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 16-59 in 2012 Source: Ericsson ConsumerLab TV & Media 2012-2016 TV Media 2016 Italy Report | December 2016 | Page 27 (52) Average Time watching TV on mobile devices › A slow growth on viewing of TV/video content on laptops, with an equal growth rate at home and away from home 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 4,3 2012 2013 2014 2015 2016 - Tablet-screen 0,4 0,7 2012 0,6 0,8 1,0 2012 Away from Home At Home 1,1 1,4 1,7 0,9 2013 2014 2015 2016 - Smartphone-screen 1,2 1,6 1,0 1,5 2,0 2,5 3,0 1,9 2,4 3,0 3,6 2013 2014 2015 2016 › 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 16-59 in 2012 Source: Ericsson ConsumerLab TV & Media 2012-2016 TV Media 2016 Italy Report | December 2016 | Page 28 (52) 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* TV screen Desktop screen Other screen Laptop screen Smartphone screen Tablet screen Self-reported share of total weekly TV/video viewing time by occupation, done on respective device TV screen Other screen Smartphone screen Desktop screen Laptop screen Tablet screen 100% 100% 75% 75% 50% 50% 25% 0% 25% 0% 16 - 19 20 - 24 25 - 34 35 - 44 45 - 59 60-69 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 2012-2016 Study TV Media 2016 Italy Report | December 2016 | Page 29 (52) Smartphone viewing has increased the most among millennials over the years Self-reported share of total weekly TV/video viewing time by Self-reported share of total weekly TV/video viewing time by Millennials, done on respective device* 35+ People, done on respective device* TV screen Laptop screen Desktop screen Smartphone screen Other screen Tablet screen TV screen Laptop screen 100% 100% 75% 75% 50% 50% 25% 25% 0% Desktop screen Smartphone screen Other screen Tablet screen 0% 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 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 2012-2016 TV Media 2016 Italy Report | December 2016 | Page 30 (52) A split focus for 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 Watch two or more programs at the same time 24% 31% Non TV related activitites screen Percentage of consumers that engage in TV Related activities on a second screen as part of their viewing experience [self-reported] 20% Overall Italy 14% 20% 27% 20% 12% 23% 23% 19% 26% 30% 21% 15% 41% 33% 17% 9% 49% 35+ 56% 23% 29% 35% 38% Millennials 8% Participate in TV contests 6% 15% Using a companion app 25% nd 2 29% 27% 24% 20% 46% 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 BASE: Population aged 16-69 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 31 (52) millennials and habits nd 2 screen Percentage of Millennials that engage in different activities on a second screen as part of their viewing experience [self-reported] At least Daily Browse the Internet, related to the content I am watching 27% Online discussions about the content I'm watching Watch two or more programs at the same time Participate in TV contests Using a companion app Non TV related activitites At least weekly 37% 18% 26% 12% 7% Less often 16% 30% 13% 30% 23% 23% 22% 23% 27% 23% 19% Never/don't know 42% 50% 24% 34% 39% 18% 18% BASE: Population aged 16-34 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 32 (52) The growing habits around 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] 2014 nd 2 The percentage of Millennials performing activities on a second screen as part of their viewing experience on a weekly basis [self-reported] 37% 2016 2014 2016 31% 27% 24% 23% 19% 20% 20% 26% 20% 23% 16% Browse the Internet, Online discussions about Watch two or more related to the content I am the content I'm watching programs at the same time watching Browse the Internet, Online discussions about Watch two or more related to the content I am the content I'm watching programs at the same time watching BASE: Population aged 16-69 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 33 (52) nd 2 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% 36% 35% 35% 30% 27% 27% 26% Online discussions about the content I'm watching Daily Traditional TV Viewer Daily Netflix Viewer 28% 21% 20% Browse the Internet, related to the content I am watching 27% Watch two or more programs at the same time Daily VOD* Viewer Daily UGC Viewer *VOD – Long form Video on Demand and not shorts videos BASE: Population aged 16-69 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 34 (52) Evolution of TV user groups Definitions of TV-User groups 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 Couch Traditionalist 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 2011-2016, ***included 2013-2016, **** Age 16-59 covered in 2012-2012 Source: Ericsson ConsumerLab TV & Media 2012-2016 TV Media 2016 Italy Report | December 2016 | Page 36 (52) 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 › Male, 35+, full time worker with university education, married w kids, larger household, live in Metropolitan areas and medium cities Mobility Centric › Male, Millennial, full time worker with university education, single without kids, live with parents in larger household in Metropolitan city close to the center Computer Centric › Male, Millennial, full time student, single without kids, live with parents in larger household close to city center Average TV-Joe TV Zero › 35+, full time worker with university education, married/living with partner and kids in smaller household in small town or suburb › 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 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 Source: Ericsson ConsumerLab TV & Media 2016 TV-USER groups in Ericsson Consumerlab Market monitor Screen Shifter Average TV-Joe Computer Centric TV Couch Traditionalist TV Media 2016 Italy Report | December 2016 | Page 38 (52) Mobility Centric TV Zero BASE: 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 Source: Ericsson ConsumerLab TV & Media 2016 MOBILITY centric segment has Exploded! Percentage of population belonging to each segment respective year* [Self-reported] TV Couch Traditionalist Screen Shifter 17% 27% 9% 16% 24% 12% Computer Centric Mobility Centric 15% 21% 15% Average TV-Joe TV Zero 13% 11% 19% 18% 18% 19% 14% 15% 15% 14% 14% 16% 19% 21% 23% 25% 16% 15% 13% 12% 12% 2012 2013 2014 2015 2016 › The TV Couch Traditionalists have shrunk in size by 23 percent since 2012 › 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 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 2012-2016 TV Media 2016 Italy Report | December 2016 | Page 39 (52) Current SERVICE EXPERIENCE 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 40% User Experience 39% 49% 48% 43% Initial Set-up/installation 34% The price Pricing Plans Customer Services 47% 48% 47% Video quality Personalization 49% 38% Content Discovery Broadcast TV services On-Demand services 32% Mobility International Access 49% 25% 44% 43% 32% 31% 30% 36% 43% 41% BASE: Population aged 16-69 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 41 (52) 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] 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] The price 75% Video quality 73% 74% 73% Video quality 73% 77% The price No binding times 70% Available content 67% 72% Available content 69% No binding times 66% Pricing Plans 67% 64% Personalization Customer Services 64% Free trial Personalization 64% Content Discovery User Experience 63% Customer Services Content Discovery 63% Initial Set-up/installation 60% Mobile Streaming experience 54% Mobility International Access 53% 47% 65% 69% Pricing Plans Free trial 64% 64% 63% 66% 61% 64% 61% 66% 60% 66% User Experience 56% Initial Set-up/installation 64% 55% 54% Mobile Streaming experience 54% 53% Mobility International Access 73% 44% 50% Millennials 35+ BASE: Population aged 16-69 with broadband at home who watch any type of TV/Video at least weekly in Italy TV Media 2016 Italy Report | December 2016 | Page 42 (52) Source: Ericsson ConsumerLab TV & Media 2016 Study Improvement of experience 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 19% 37% 6 18% 5 18% 4 20% 3 2 1 Not interested at all › 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. › 37% of consumers in Italy are interested in such a service. From an age perspective, millennials show the 50% higher interest where over 50% of them show interest in such a service offer! 7% 4% 14% BASE: Population aged 16-69 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 44 (52) Importance of TV related Factors 2012-2016 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 4K / UHD Quality 5,5 À la carte TV-/video package My TV-/Video content anywhere 5,0 Time shift/On demand Subtitles 4,5 Interactive TV Theatrical release directly on my TV 4,0 2012 2013 2014 2015 2016 “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 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 TV Media 2016 Italy Report | December 2016 | Page 45 (52) 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 52% Perfect live video and sound at large events 50% On demand / Time shift 48% 4K / UHD quality 43% Dubbed Audio 43% À la carte TV-/video package Perfect live video and sound at large events Dubbed Audio 44% 42% 4K / UHD quality 44% 43% 44% 34% 41% Subtitles TV-/Video content anywhere 43% 39% À la carte TV-/video package 40% 44% 38% Premium live TV 36% Virtual Reality TV and video 33% Augmented Reality 32% TV Media 2016 Italy Report | December 2016 | Page 46 (52) 47% 48% 42% TV-/Video content anywhere Interactive TV 52% 49% On demand / Time shift Subtitles Different Camera Angles 54% 51% Theatrical releases directly on my TV 31% 29% Premium live TV 36% 36% Virtual Reality TV and video 35% 31% Augmented Reality 35% 30% Different Camera Angles 33% 30% Interactive TV 32% 27% Millennials 35+ BASE: Population aged 16-69 with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study 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] Free from ads/commercials 40% HD quality 37% On demand / Time shift 33% 4K / UHD quality 29% À la carte TV-/video package 28% Perfect live video and sound at large events 26% Theatrical releases directly on my TV 24% My TV-/Video content anywhere 22% Percentage of consumers that say each TV Media feature is worth paying for, by age (top 2 answers on 7-point scale) [self-reported] 39% 41% Free from ads/commercials 37% 36% HD quality 33% 34% On demand / Time shift 32% 26% 4K / UHD quality 26% 29% À la carte TV-/video package My TV-/Video content anywhere 25% 20% Theatrical releases directly on my TV 24% 23% 24% 27% Perfect live video and sound at large events Dubbed Audio 18% Premium live TV 16% Subtitles 15% None of these features 15% Interactive TV 15% Virtual Reality TV and video Augmented Reality Different Camera Angles TV Media 2016 Italy Report | December 2016 | Page 47 (52) Subtitles 20% 11% Dubbed Audio 20% 17% Augmented Reality 17% 11% Virtual Reality TV and video 16% 12% 14% Interactive TV 15% 14% 14% Premium live TV 15% 16% 12% Different Camera Angles 12% 11% Millennials 35+ BASE: Population aged 16-69 with broadband at home who watch any type of TV/Video at least weekly in Italy Source: Ericsson ConsumerLab TV & Media 2016 Study Show me the money 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 20% 18% 56% of consumers in Italy say an Ad-free experience is important and 40% think it is worth paying for! BASE: Population aged 16-69 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) Monthly Household Spending Average spend is 93 Euro, but around 22% of the households spend 125+ Euro/month Euro 200 175 27 34 93 EUR 150 125 100 7 75 14 11 50 25 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 Linear TV VOD-services Cinema/Movie Theater Physical media % of Households BASE: Population aged 16-69 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 50 (52) TV Media 2016 Italy Report | December 2016 | Page 51 (52)