Televidente 2.0 x trends on Video Consumption

1Televidente 2.0 X Oleada

Televidente 2.0 2016-17

(10th wave)

May 2017

Video consumption trends among Spanish

Internet Users

Public report


The Televidente 2.0 report has presented over the last 10 years the evolution of video consumption in Spain supported by

the technology development, especially in three areas:

The expansion of broadband

connection and the online

access on content has changed

the relationship with linear TV,

allowing the setting of a

customized consumption from

the user perspective.

The emergence of new devices,

especially the smartphone, has

engendered a multi-screen,

decentralized and omnipresent

consumption.

The radical change on TV

offering has expanded the

offering on new platforms

(Youtube, OTTs, channels’ TV

websites) that paves way to a

greater diversity of contents and

proposals.

Analysing the impact of technology on video consumption in SpainTelevidente 2.0

This has set up a new model of video consumption where Content, Occasion, Platform and Device are arranged

according the user preference.

Which changes are happening now?


Objectives and methodology

1


Analysing the development of video consumption on the main platforms: DTT, IPTV and OTT,

as well as their users

Three key objectives of this wave

Exploring the remembering about advertising formats in a transversal way on devices and

platforms

Exploring how the technological equipment at user’s home has

been changing, and also the current moment of the new

screens: Smart TV and Smartphone


Qualitative Research7 Focus groups in Madrid

Methodology

1 FG Smartphone advanced usersYouth 20-30 years oldUse Smartphone to watch video content

in an intensive way, both inside and

outside of their homes

2 FGs OTT ClientsYouth 20-30 years oldAdults 35-50 years old

1 FG Channel TV apps users Youth 20-30 years old

1 FG IPTV other platforms clientsAdults 35-50 years old

VOD and App services users

1 FG SMART TV usersAdults 35-50 years old

Watch at least 4 hours of content

1 FG Movistar+ clientsAdults 35-50 years old

Subscribed to series, Movies. VOD

and app users.

Quantitative ResearchOnline Survey

Online survey (CAWI)

Spanish General population (internet users) 18-55 years old

1.410 interviews

30 minutes.

Methodology

Sample

Length

January 2017

Location Spain.

Target

Sampling Error With 95% confidence level, the sampling error is 2,6% for n=1410

Fieldwork


Main results

2

6


The evolution of preferences towards non-linear offering

It becomes to be perceived a loss of consumption of services based on non-

linear, especially DTT, that just overcomes half of total consumption

carried out by online audience.

Besides the impact on consumption offering, it is important to start

considering this impact on advertising, either for advertisers

and the players themselves.

In this fragmented scenario, it is important serves the audience of new platforms and devices to know who consumes and how is the consumption of the higher value content, in order to keep

or increase the effectiveness of advertising. Measuring this on these platforms will be a factor of value for the advertisers.

On IPTV, the linear channels are losing relevance on consumption and motivation for subscribing.


The preference of the users begins to change for non-linear platforms.Although DTT keeps a clear leadership when it is measured the hours of consumption, it has a third of declared occasions of consumption, and the linear TV keeps 50% of it.

The non-linear consumption offerings (catch-up, VOD, apps, webs..) are capturing the audience’s interest

23%30%

10%

18%

9%

10%

Standard open TV (DTT) by community antenna

TV services on Internet (Netflix, HBO, …)

Streaming/Downloads/P2P/KODI

DTT multi-devices apps (RTVE, Atresplayer, Mitele, …)

IPTV multi-devices apps(Movistar +, YOMVI, Vodafone/Ono TV, Orange/Jazztel, …)

IPTV (Movistar +, Vodafone TV,Jazztel, …) Decoder

On which platforms video content is consumed?

IPTV

33%

Online content

47%

9Televidente 2.0 X Oleada9

News, Spanish series and contests have DTT as reference platform. IPTV stands out on the most relevant content as movies, series and sports. OTTs have greater presence at the moment of watching movies and foreign series.

64% 24% 10% 9% 10% 6% 37% 9% 20%

47% 24% 11% 9% 9% 5% 40% 9% 23%

82% 18% 1% 1% 4% 1% 8% 5% 2%

74% 21% 7% 5% 7% 2% 23% 17% 10%

63% 27% 7% 6% 9% 3% 20% 10% 13%

68% 23% 7% 4% 6% 4% 22% 8% 11%

46% 20% 5% 1% 6% 4% 44% 11% 9%

54% 31% 8% 2% 20% 5% 23% 5% 5%

55% 31% 8% 3% 19% 3% 24% 5% 5%

67% 29% 6% 3% 7% 3% 10% 6% 3%

60% 20% 9% 5% 10% 5% 37% 15% 19%

71% 24% 8% 8% 9% 5% 15% 11% 11%

83% 17% 3% 2% 4% 2% 5% 10% 4%

50% 18% 7% 3% 13% 4% 28% 5% 6%

DTT

Consumed content by platform DTT and/or

Pay TV Decoder

DTT and/orMulti-device

APP

On-demandcontentdecoder

Recordingand 7 days

On-demandcontent

Multi-deviceAPP

Base: (1410) (593) (432)

News

Spanish series

Children’s TV show

Cooking/ DIY-gardening, decoration, pets, motor, auctions

Humor

Movies

Foreign series

Documentaries

Music

Soccer: Champions league

Soccer: La Liga/Copa del rey

Mini-serie/ tv movie

Contests and new talents’ shows

Fórmula 1

(593) (593) (432)

OTTsDownloads/

Streaming DTT APPs

(938) (1410) (994)

Traditional Pay TV (IPTV) Multi-devices APPS


All TV shows or contests are consumed to a greater extent on DTT (except Late Show that are most watched on pay TV). Tennis, NBA and golf are watched on IPTV.

61% 30% 8% 4% 8% 2% 14% 7% 4%

54% 22% 5% 2% 12% 3% 27% 6% 6%

80% 24% 3% 3% 4% 3% 7% 7% 3%

78% 17% 6% 3% 7% 2% 13% 9% 4%

54% 22% 6% 3% 13% 5% 28% 7% 7%

52% 21% 7% 5% 6% 3% 34% 5% 20%

77% 17% 3% 4% 7% 4% 7% 4% 4%

69% 33% 5% 2% 13% 2% 14% 7% 6%

68% 22% 4% 1% 10% 4% 11% 7% 5%

83% 19% 6% 2% 2% 3% 6% 7% 2%

23% 13% 8% 6% 9% 3% 53% 11% 11%

21% 33% 8% 5% 22% 6% 31% 2% 4%

65% 12% 13% 8% 7% 4% 9% 11% 3%

9% 34% 11% 0% 5% 12% 18% 4% 16%

Late Show: night TV shows

Other sports (that are not: soccer /Fórmula 1/ NBA/ Motorcycling/ Tennis/ Golf)

Motorcycling / Moto gp

Cartoons for adults

NBA

Adults

Gossip TV shows

Magazines (TV shows with variety of contents: interviews, talk shows, contests…)

Reality show

Discussions

Talk Show / Programs of testimonies, interviews, discussions

Tennis

Bullfighting / Bullfighting themes

Golf

(432) (432) (938) (1410) (994)

Traditional Pay TV (IPTV) Multi-devices APPS Consumed content by platform

Base: (1410) (593) (593) (593)

DTT

DTT and/orPay TV

Decoder

DTT and/orMulti-device

APP

On-demandcontentdecoder

Recordingand 7 days

On-demandcontent

Multi-deviceAPP

OTTsDownloads/ Streaming

DTT APPs


The panorama of Pay TV services

2.1


The set of Pay TV services (IPTVs and OTTs) are

experiencing a moment of coexistence and

complementarity for the users.

Their combined effect presents a growth dynamic on value for

users rather than cannibalization.

As we shall see, the current perception is that they are different spaces at this moment, keeping own

values of interest. They are addressing different audiences.

The overall result of this growth shows that the most part of Spanish internet users is paying for one or another service.

The panorama of Pay TV services


Half of web users are subscribers to some IPTV or OTT service. There is a relevant number of users who have both services IPTV Pay TV and OTTs.

Have tradicional pay TV (IPTV) at home

42%

Pay for some OTT service*

25%Pay TV at home (IPTV)

+ OTT*

16%

Sample: Total (1410)

Coexistence of payment services at home

Subscribers to some IPTV or OTT service

51%

Only traditional pay TV (IPTV)

26%

Only Pay OTT

9%

*Pay for some OTT service -> Pay OTT that is out of the IPTV package.*Pay TV at home + OTT -> Have IPTV and have subscribed some OTT service apart.


The relationship with IPTV has changed in a substantial way: the elements in which traditionally the users have established ties have changed.

The moment of IPTV

Contents and services are getting close to the user consumption ideal

● It is recognized that the content offering is currently much more diversified, relevant and complete compared to

some years ago.

● It stands out especially the multi-device and multi-platform access, that allows a consumption more adapted to

moments and interests of users, get them away from linear offering.

● Anyway, the offering sometimes is overwhelming: it is not easy to consume all the relevant and available content.

● Thanks to the “quadruple play”, those who have recently subscribed to pay TV feel the access has become simpler,

less demanding and y less exclusive.

● However, this also determines a lower motivation to subscribing: it is already included with telephonic services.

● It is setting the TV offering when new motivations are discovered and activated.

The “Quadruple Play” democratizes and revises the concept of the old pay TV

“Nowadays everybody has pay TV” “They

gave me” “I went because the illegal

websites have closed”

I”It is a way to watch a more

adapted TV”


There are two main ways to subscribe pay TV at home:

15

● It is the main way and linked to an attractive price on

the set of contents.

● In these cases, the television is initially considered an

added value of the subscribing.

● In these cases, the consumer’s demand is usually

lower, but this demand might increase in light of

awareness of the available offering from the telecom

operator.

“If there is no soccer, it does not work for

me” “I can change the telecom operator

because of the TV”

“First of all you choose the telecom operator,

you see what they offer and, if the price is

ok, you go!”

Looking for content

Looking for a quadruple play

● This route has many alternative motivations:

○ Soccer

○ Other premium contents compared to the DTT

offering (series, children, others sports).

● In this case, the TV offering becomes determinant at choosing

a telephone provider, and might led to changes in the future.

● This indicates a client profile more demanding and more

premium when choosing a “TV package”.

Compared to previous times, the change is in the quadruple play as necessary entry point or as detonating.

The moment of IPTV


The quadruple play is determinant for the majority at subscribing, but content and service are relevant for large segments of subscribers.

45%

24%

21%

18%

17%

15%

10%

10%

10%

10%

Because it was included in the package

Because of the quantity of the content (series, movies, documentaries,...)

It is worth how much that you pay for the offered content

There is no minimum period of staying

It is not expensive

Because I can watch it on many devices

Because of the image quality

Because I can watch it in the original version and with subtitles

Because there is no advertising

Because of the quality of series

Sample: Have Pay TV (593)

Main reasons for IPTV subscribing (market total)


Sample: Have IPTV (593)

Thanks to the current IPTV offering…

The current IPTV offering allows a more adapted consumption according the subscriber preferences: moments, platforms of access, contents...

6,5

Average

6,5

5,5

6,0

6,5

6,4

5,2

… I watch the DTT channels from the IPTV decoder

… I watch what I want when I want

…... I have reduced the dowloads or streaming or KODI (old XBMC), for free

…... I watch less DTT channels

…...I watch better quality contents

…the functioning of my IPTV decoder is good

… I watch more television

- 12 pts. Vs 2015

13%

9%

22%

16%

8%

9%

21%

8%

10%

8%

11%

9%

8%

14%

23%

25%

27%

25%

27%

28%

30%

25%

29%

20%

24%

35%

35%

24%

31%

28%

24%

24%

22%

21%

12%

Completely disagree (0 to 2) (3 to 4) (5 to 6) (7 to 8) Completely agree (9 to 10)

Relevant differences compared to 2015 (95% confidence)


Being able to choose what and when to watch what I like the most

…Diversity of contents

…Time flexibility when consuming content


48%

50%

38%

29%

38%Enjoying the contents with less advertising compared to DTT

The possibility of discovering new contents and channels

Increase in quality compared to DTT

48%

- 6 pts. Vs 2015

- 6 pts. Vs 2015

+ 10 pts. Vs 2015

My current IPTV offering has provided me…

IPTV provides a flexible model of consumption and diversity of contents, aligned with the users demands. Not having advertising or allowing to discover new contents are less relevant

Relevant differences compared to 2015 (95% confidence)


* Not comparable with 2015


It would make me unsubscribe…

23%

19%

7%

6%

5%

11%

20%

13%

6,7 averagre

Average satisfaction with Pay TV*

13 hours/week

Weekly hours watching Pay TV

… Lost soccer

… Lost other sports (NBA, Fórmula 1, Motorcycling, …)

… Lost movies

… Lost main series (Narcos, Game of Thrones, …)

… Lost the multidevice app

… Lost documentaries

… Lost services as recorder, 7 days, on demand, …

… None

Satisfaction and consumed hours of traditional Pay TV (IPTV)

(Market total)

The reference content (series, soccer and movies) is key to make the IPVT clients loyals.


The moment of Movistar+ is especially positive, anchored in a powerful content offering and a good service that allow increase distance from the competitors.

A very outstanding service offering

● VOD, Apps, recorder, Últimos 7 Días, download to play, V.O.... although they are known in an unequal way,

they allow the clients to consume contents as they want.

● This set of services changes the way to watch contents: the convenience is valued and it blocks the

dependence of linear TV

● The SmartTV app stands out as an Access to a content offering that provides a better user experience

compared to decoder interface.

● All clients find relevant content for the members of the family and themselves:

○ Football other sports

○ Trending series, of wide interest and complete seasons.

○ Blockbusters.

○ Specialized channels

Almost all the relevant contents

available

“Convenience” “Freedom”

An offer that translates into a great correlation between quality and price that creates attachment.


The Channel Cero receives positive evaluations in terms of content and style.

The heritage of Canal +

● Because of the kind of contents, the channel style, the language used, the presenters :

All this remembers the historic Canal +.

● It’s presences it’s evaluated as a differential content of the platform and a linear

channel that offers additional value than what is available in TDT.

The users identify it as the heritage of Canal +: It’s offer of contents and service has been completely included inside the second.

“Leitmotiv” “El día después”

“Ii reminds me to Canal+, that was based on questions,

there aren’t trash programs”

“There I something always there that calls your attention”

“Movistar+ is bigger and has

integrated what Canal+ used to

be”


Profile according to the service subscription

2.2



Have a pay TV service (IPTV u OTT)

51%

The analysis done to users of IPTV & OTT using excluding agroupations help us to see the dfferences among the consumers of the different pltaforms.

Excluding distribution of the clients accroding to the service subscriptions.

26%

9%

16%

49%

ONLY IPTV

ONLY OTT

IPTV + OTT

NO PAID TV SERVICES


The consumers of only OTTs seems to be a more young and masculine profile than those who have IPTV + OTT. This difference seems to be increased when compared to those who are only IPTV users.

Sample: (121)

BCD

(A) (B)

B

18- 24 y/o

25-34 y/o

35-44 y/o

45-54 y/o

Gender

Age

ONLY OTT

9%

IPTV + OTT

16%

Sample: Total (231)

CD

A

(A) (B)

B

NO PAID TV SERVICES

49%

Base: (696)

A

(A) (B)

Base: Total (1410)

ONLY IPTV

26%

Sample: (362)

A

A

(A) (B)

(A) (B) (C) (D)

15%

42%

28%

16%

14%

28%

32%

26%

14%

21%

34%

31%

19%

20%

33%

29%

57%43%

Male Female

54% 46%

Male Female

48% 52%

Male Female

49% 51%

Male Female

Letters (A,B,) indicate relevant differences among the segments with a 95% level of confidence.


70%

66%

34%

29%

41%

32%

26%

22%

17%

20%

30%

17%

17%

10%

14%

9%

Movies

Foreign Shows

News

Spaniard shows

Documentaries

Humor

Music

Soccer: National league/King's cup


Cuicine/ gardening, decoration, pets,…

Mini serie/tv movie

Kid's shows

Contests and reality shows

Formula 1

Late Show

Motorcycles/ Mot GP

76%

66%

34%

37%

39%

32%

28%

26%

27%

30%

21%

20%

15%

16%

20%

13%

Movies

Foreign Shows

News

Spaniard shows

Documentaries

Humor

Music




Mini serie/tv movie

Kid's shows


Formula 1

Late Show

Motorcycles/ Mot GP

77%

60%

48%

45%

39%

35%

35%

25%

24%

26%

28%

22%

19%

17%

14%

14%

Movies

Foreign Shows

News

Spaniard shows

Documentaries

Humor

Music




Mini serie/tv movie

Kid's shows


Formula 1

Late Show

Motorcycles/ Mot GP

77%

61%

31%

37%

35%

33%

25%

45%

44%

26%

23%

16%

14%

21%

19%

23%

Movies

Foreign Shows

News

Spaniard shows

Documentaries

Humor

Music




Mini serie/tv movie

Kid's shows


Formula 1

Late Show

Motorcycles/ Mot GP

25

Sample: (362)

A

D

Sample: (121)

Base: Total (1410)

Sample: (696)

A A

ABC

ABC

AC

A

A

A

A

Sample: Total (231)

ACD

ACD

A

AC

ACD

The one subscribed to both platforms (IPTV & OTT) it’s a big consumer of all kind of contents, while the others show a more specific interest (movies, shows and soccer). The users without subscriptions prefers contents of the lineal TDT (and pirate access).

(A) (B) (C) (D)

ONLY OTT

9%

IPTV + OTT

16%

NO PAID TV SERVICE

49%

ONLY IPTV

26%



37%

21%

27%

20%

16%

18%

11%

13%

11%

14%

10%

12%

7%

6%

7%

2%

2%

Porque venía incluido en un paquete de servicios detelecomunicaciones

Por la cantidad del contenido

Merece la pena lo que pagas por el contenido que ofrece

No tiene periodo de permanencia

Es económico

Porque puedo verlo en varios dispositivos

Por la calidad de imagen

porque puedo verlo en versión original y con subtítulos

Porque no tiene publicidad

Por la calidad de las series

Cmodidad: no tengo que buscar el contenido

Porque tienen conteido exclusivo

Porque están disponibles todos los capítulos ytemporadas de las series

Porque están las series de moda

Por la calidad de otros contenidos

Porque es más difícil ver …

Poder ver contenido en calidad 4K/UHD

26

Base: Total (1410)

50%

26%

17%

16%

18%

13%

10%

8%

9%

7%

7%

5%

6%

6%

4%

4%

3%

It was included in a package of my telcomservice

Because of the amount of content

The cost it's worthy according to the price youpay

It doesn't have an obligatory contract

It's cheap

Because I can see it in several devices

Because of the image quality

Because I can see the original version andsubtiteled

There aren't ads

Because of the quality of the shows

I don't have to search for contents

Because it has exclusive content

Because you can find all the seasons of theshows

Because I can find all the trending shows

Because of the quality of other contents

Because it's harder to see content in other freestreaming websites

To see 4K/UHD content

Sample: (362) Sample: Total (231)

When consiering the drivers to hire IPTV, the exclusive users of this platform highlight the package with other services, while the ones with this and an OTT give value to the content offered for the price that is paid.

Motivations to get an IPTV

(A) (B)

B

A

A

A

EXCLUSIVOS IPTV

26%

IPTV + OTT

16%



17%

22%

21%

28%

33%

27%

19%

20%

36%

23%

18%

12%

14%

3%

3%

5%

4%

4%

Comodidad: no tengo que buscar el contenido

Es económico

Puedo compartir la cuenta y los gastos con amigos,familiares, …

Porque puedo verlo en varios dispositivos (Ordenador, Smart TV, Tablet, Smartphone, …)



Porque puedo verlo en versión original y con subtítulos





Porque tienen contenido exclusivo

Porque puedo descargar el contenido y verlo offline

Poder ver contenido encalidad 4K/UHD

Porque es más difícil ver …




30%

30%

27%

26%

24%

23%

19%

19%

19%

17%

16%

14%

8%

7%

6%

5%

4%

2%

I don't have to search for content

It's cheap

I can share the account and expenses withfamily/friends

I can see it in several devices

The prices is wiorthy for the content it offers

For the quantity of contents

I can watch it in original version and subtitules

Because of the quality of other services

For the quality of the shows

It doesn't have ads

It doesn't have obligatory contracts

Because it has exclusive contents

I can download content and watch it offline

I can watch content in 4K/UHD

Because it's harder to see content in freestreaming sites

Because of the quality of the image

I can see the trending shows

Because I can see the complete seasons ofshows when I want to

27

Base: Total (1410)


For the exclusive users of OTT, convenience and the availability of an economic service are the main drivers to get it, while the quality of the content (specially shows) is what activates the one that lives with IPTV.

Drivers to get OTT’s

(A) (B)B

A

ONLY OTT

9%

IPTV + OTT

16%



37%

27%

21%

20%

18%

16%

14%

13%

12%

11%

11%

10%

7%

7%

6%

2%

2%

Porque venía incluido en un paquete de servicios detelecomunicaciones




Porque puedo verlo en varios dispositivos (Ordenador, Smart TV, Tablet, Smartphone, …)

Es económico


Porque puedo verlo en versión original y con subtítulos

Porque tienen contenido exclusivo



Comodidad: no tengo que buscar el contenido




Poder ver contenido encalidad 4K/UHD

Porque es más difícil ver contenido en páginas web destreaming/ descargas

Puedo compartir la cuenta y los gastos con amigos,familiares, …

Porque puedo descargar el contenido y verlo offline

33%

27%

18%

28%

22%

36%

19%

12%

23%

5%

17%

20%

4%

4%

3%

3%

21%

14%

Because it was included in my Telcom package

The cost it's worthy according to the price youpay

Because of the quantity of content

It doesn't have an obligatory contract

Because I can see it in several devices

It's cheap

Because of the quality of the shows

Because I can see it in theoriginal version andwith subtitles

Because it has exclusive content

Because it doesn't have ads

Because of the quality of the image

I don't have to search for content

Because of the quality of other contents

Because I can find all the seasons of the shows

Because I can find the trending shows

To see 4K/UHD content

Because it's harder to see content in other freestreaming websites

I can share the account and expenses withfamily/friends

I can download content and see it offline

28

IPTV + OTT

16%

Drivers to get an OTTs vs IPTV

n/a

n/a

n/a

-6 pts

-6 pts

+2 pts

-10 pts

-6 pts

-22 pts

-6 pts

0 pts

-12 pts

+6 pts

-7 pts

-13 pts

+3 pts

+2 pts

-1 pts

-1 pts

The user of both kind of platforms is a big premium consumer. A higher intensity of the motivations related to OTT than those to IPTV is observed. (specifically the quadplay).

Sample: Total (231)

OTTs IPTVs

29Televidente 2.0 X Oleada 29

Base: Total (1410)


Kind of IPTV package available

37%

63%

Basic Advanced

25%

75%

Basic Advanced

… also, this is complemented with higher presence of advanced content packages among those who have IPTV and another OTT service (this packages are highly related to sports)

(A) (B)

A

26%

32%

41%

47%

Soccer package

Sports total

Soccer package

Sports total A

A

ONLY IPTV

26%

IPTV + OTT

16%



Other platforms and access

2.3


The YouTube moment

We can observe a weakening in the consumption of certain kind of contents in YouTube that changes the game:

● Decrease of 4 points compared to the last wave.

● The elderly online population in growing faster than the number of users of YouTube.

● A wide number of “generic” content from YouTube of low value for the users (music, humor, tutorials)

show poorer search results. Only YouTubers show a similar strength in that matter. The YouTube users

are more likely to have an OTT subscription.

● It’s possible that Spotify Premium campaigns (attached to the Smartphone usage) are also affecting this

behavior.

Contentconsumption

● We find a usage drop off in Smarthone and Smart TV. With Smartphone it might answer to the

impossibility to work together with other Apps like Whatsapp that tend to hog a lot of time. Devices

A plausible hypothesis is that YouTube users are starting to migrate their consumptions to paid digital platforms (OTTs& IPTV Apps).

Penetration


The YouTube moment

The declared access to YouTube in the last month drops down compared to the last wave. The actual users of YouTube are starting to have more payment services (OTT or IPTV) than the average. An derived of that, we observe a drop down of video consumption of the most advanced devices: Smartphone and Smart TV, those that hardly reach the senior target.

4 hours/week

Weekly hours watching YouTube

56%

46%

29%

28%

14%

3%

2%

1%

Smartphone

Laptop

Tablet

Desktop

Smart TV

Chromecast / TV Box

Console

Apple TV

Total

Vizualization frequency Used devices

86%

14%

Yes

No


35%

29%

18%

12%

4%

1%

0%

0%

1st selection

- 4 pts. Vs 2015- 6 pts. Vs 2015

- 6 pts. Vs 2015

Access to YouTube in the last month

Relevant differences of 95% of confidence compared to 2015


The moment of “pirate” downloading and streaming

Even tough it’s still a massive situation, the drop down of download/streaming that started last yeas continues thanks to the IPTV subscriptions. Although, this drop down is not happening with those who are OTT subscribers.

Weekly hours invested on the consume of contents on each platform.

Pirate downloading or streaming consumers.

Total Weekly hours

Sample: Sees free contents (938)

Base: Total (1410)

- 6 pts. Vs 2015

Have IPTV and NO OTTHave IPTV + OTT

Have OTT and NO IPTV

Don’t have any pay TV service

63%

68%

71%

67%

5hs 5hs 6hs

67%

33%

Yes

No

P2P Download Streaming



Equipment evolution

2.4


A prepared environment for the personalized consume at home. The equipment data doesn’t have relevant variations in front of the last year but we see a reinforcement in the trend of personal devices, where the Smartphone is the king. The connection speed doesn’t stop increasing.

92% 88%77% 73%

65%53%

41%

13%8% 5%

91%80%

65%55% 49%

31%20%

12%5% 4%

Smartphone Laptop HDD Tablet Desktop Console Portableconsole

Chromecast /TV Box

Projector Apple TV

Base (Have):

Have at home

Users

Connection at home

External TV devices

33%

21%26%

16%

9%

Less than 50 MB From 50 to 99 MB From 100 to 300 MB More than 300 MB Mobile data

Connects to the TV

21% 45% 57% 18% 17% 19% 26% 58%



5 devices on average

4 deviceson average

- 7 pts. Vs 2015+ 7 pts. Vs 2015

- 4 pts. Vs 2015+ 4 pts. Vs 2015

1267 1211 1058 1018 897 734 573 185 107 75

None

21%

54% - 12 pts. Vs 2015

56% 74%

+ 4 pts. Vs 2015

42% + 16 pts. Vs 2015



The current TV’s allow the display of TV Apps and services offers: Most of the users homes already have an Smart TV and the HD quality is the average. By now the 4K and HDR systems are a minority.


Average 3 TVs

1%

3%

8%

22%

37%

28%

1%

More than 5

5

4

3

2

1

None

Number of TV’s at home Place** TV type(media de televisiones en el hogar

con esta característica)

99% 0,94

52% 0,67

29% 0,66

23% 0,19

9% 0,14

0,09

Living Room

Bedroom

Guest room

HD

Smart TV

Full HD

HDR*

4K / UHD

Son’s bedroom

Kitchen

*High Dynamic Range. The acronim migth have

couse confussion among the participants.

3D

**Recalculated percentage according to the average

51% 49%Have Smart TV + 7 pts. Vs 2015

Sample: Have TV (1401)

Sample: Tienen tv (1401)

Sample: Tienen tv (1401)Sí No



82%

19%

Yes

No

Smart TV Brand

The Smart TV is still growing. In line with the highest satisfaction with the product, the Smart TV usage frecuency increases.

44%

33%

9%

6%

6%

1%

1%

5%

Samsung

LG

SONY

Philips

Panasonic

Toshiba

OKI

Otra

Have connected the Smart tv to the internet

Sample: Has Smart tv (682)

Frequence of Smart TV connection to the internet

10%

17%

17%

32%

24%Everyday

At least once a week

At least once a month

Less frequency

Once, just to try it

3%4% 17% 44% 32%

Not satisfied(0 a 2) (3 a 4) (5 a 6) (7 a 8) Completly satisfied (9 a 10)

Satisfaction with the Smart tv

Sample: Connects Smart TV to the Internet (556)

- 8 pts. Vs 2015

+ 7 pts. Vs 2015

+ 6 pts. Vs 2015- 4 pts. Vs 2015

- 3 pts. Vs 2015

49% HAS SMART TV + 7 pts. Vs 2015



70%

30%

Yes

No

54%

42%

41%

30%

25%

21%

21%

15%

14%

14%

12%

10%

9%

5%

6%

Movies

Foreign shows

Music vides

Spaniard shows

Documentaries

Humor videos

Sports

Tutorials

Entreteiment shows

Hobbies videos (Automotive, gardening)

Amateur videos

nformative

Gameplays

Adults

Others

38

The movies and foreign shows are still the most watched because of the presence of IPTV and OTTs. The content related to YouTube (music, documentaries, humor) and the one from DTT (Spaniard shows, spots) lose presence with the Smart TV

70%

43%

24%

17%

15%

12%

11%

10%

5%

6%

Adioviual content (movies, series,,programs, videos).

To watch music (Spotify, Radio, Google Music, …)

Social media (Facebook, Twitter, …)

Games

Online press (El País, El Mundo, Marca,As)

Photos

Email( Outlook, Gmail, …)

Communication ( Skype)

Karaoke

Others

Use Apps The Apps they use What contents they watch

Sample: Have used Apps (389)

- 7 pts. Vs 2015

- 8 pts. Vs 2015

- 8 pts. Vs 2015

- 13 pts. Vs 2015

- 7 pts. Vs 2015

- 11 pts. Vs 2015

- 8 pts. Vs 2015

Users that use Apps on Smart TV



48%

48%

44%

42%

20%

13%

12%

11%

11%

8%

7%

6%

2%

Musical videos

News

Youtubers videos

Tutorial videos

Humor clips

Videogames: Gameplays, Reviews

Soccer

Foreign shows

Cinema

Entertainment shows

Spaniard series

Sports besides soccer (Basketball, tennis…)

Others

39

The generic YouTube content consumption drops down in Smartphone but the most valuable for the users remains. (YouTubers, series, soccer..) The Gb for mobile data plans is increased.

Monthly Mb.

Sample: Have Smartphone at home (1276)

Total

Mobile data

What contents they see on Smartphone

Sample: Have Data (992)

- 10 pts. Vs 2015

+ 8 pts. Vs 201538%

- 4 pts. Vs 2015

- 17 pts. Vs 2015

- 18 pts. Vs 2015

- 9 pts. Vs 2015

- 21 pts. Vs 2015

- 10 pts. Vs 2015

- 10 pts. Vs 2015

78%

22%

Yes

No

6%

14%

18%

34%

17%

6%

5%

More than 6 GB

More than 3GB to 6GB

More than 2 GB to3GB

More than 1 GB to 2GB

From 500 MB to 1 GB

Less 500 MB

I don't know



93%

44%

41%

37%

36%

34%

33%

32%

28%

24%

22%

17%

9%

9%

8%

7%

5%

4%

3%

3%

3%

1%

1%

1%

25%

Youtube

Atresplayer

Rtve a la carta

Mitele

Google Play

Vimeo

Apps de canales de TV…

Clan

Canal Cocina

Disney channel Replay

Netflix

Aplicación Movistar+…

Wuaki.tv

Bein Sports

Amazon Video / Amazon Prime…

HBO España

Servicio TV Online…

Apple TV/ Itunes (películas)

Servicio Orange…

Total Channel

Filmin

Filmotech

Cineclick

Dorna VideoPass (moto gp)

Otras

The decrease of consumption of this contents affects the frequency of YouTube access. On the contrary it increases the use of other OTT, IPTV and TDT apps considerably.

Sample: Tienen Smartphone en el hogar (921)

Frequency of ctents seen on Smartphone

Has tried Uses comunly

81%

12%

9%

10%

25%

6%

7%

7%

5%

4%

10%

8%

2%

4%

3%

3%

2%

1%

2%

1%

1%

0%

0%

0%

6%

+ 8 pts. Vs 2015

+ 12 pts. Vs 2015

+ 9 pts. Vs 2015

- 6 pts. Vs 2015CONSUME YOUTUBE IN THE LAST MONTH

FROM SMARTPHONE

56%- 6 pts. Vs 2015

We have seen that…

EGM DATA FROM 2016Highest increase of internet users compared to

YouTube (+2,7 pts)

+5,2 pts. vs. 2015 +2,5 pts. vs. 2015

Internet access YouTube acess

Apps de canales de televisión tradicional



59%

43% 41% 38%34%

29%

Outside home:Dayly commute,

lunch

On vacation orweekend outside

At home evenwhen no one is

using TV

At home when I can use the TV (On

bed, Kitchen, etc…)

At home when theTV is being used

In other's peoplehomes (Family,

friends)

41

The average consume of video contents through Smartphone is 4 hours weekly, and 1 out of 3 consumes with more intensity.. The use of Smartphone outside home is reduced, while inside the house the voluntary consume in this devices is on the lead. 6 out of 10 uses it more time, even tough the length of the videos watched remains the same.

How is the comnsumption of video contents in the Smartphone?

4 hours/weekAverage of hours weekly

watching media with Smartphone

Frecuency of consumption

If moble data was unlimited…

Would use it for more

hours

58%

Would use it the same

42%

Where they see the contents

NeverFrom time

to timeUsually All

Sample: See contents on Smartphone (921)

Length of contents

Outside home 67%

Inside home 85%+6 pts. Vs 2015

- 8 pts. Vs 2015

29%Users of Smartphone thar consume 4 or more hours

watching weekly

76%

64%

33%

3%

18%

28%

48%

30%

5%

7%

17%

54%

1%

1%

2%

14%

More than 60 minutes

From 30 to 60 minutes





The intensive use of Smartphone for video consumption

We will see..

The analyzed intense video consumer of Smartphone (young people with at least 4 hours of consume weekly) shows how the online consumer of contents is more detached to the norm of other segments, and with a patterns of compulsive Smartphone use that almost reach's addiction.

It’s relationship with the Smartphone, is going to configure the new patterns of consume that will overflows the one that started years ago because of the online access offered.

The technological advance is starting to develop a trend of intense video consumption on Smartphones, overcoming the settlement of the micro-moments, detected on 2015.


Is inserted at every moment

● At home, at bed and waking upwhile

sleeping..

● On public transport

● At the office, college, while doing everyday

tasks

● While waiting..

With this starting point, the most advanced users show a wider pattern of consumption, with the trend to be irrestrictive and preferent to other displays.


A large number of consumption oportunities

With a wide variety of contens

Even tough it’s easier to consume short videos,

they consider amongg this category those who

last around 30 or 40 min:

● Series, TV shows, debates

● News

● Youtube videos: music, tutorials,

recepies, humor

● Documentaries

Besides, in some cases they even consider

movies or soccer games.

On different platforms

● Apps of Youtube, Movistar+, Netflix,

Mitele, A3media

● Ilegal streaming websites

(pordede.com)

● Complementary with social media

Apps.


It doesn’t have to be turned on

or move to the place where the

device is set. The immediacy and

lack of wait is the most

important.

As device, the Smartphone finds for this users a lot of relevant advantages in front of other screens:

It’s immediacy and mobility

It’s personal caracter

Oriented exclusively to a personal

consumption, it doesn’t require

consensus like bigger screens.

“What I always have in my

pocket is the phone” “I get

lazy to turn on the Laptop”

“I’m at the living and I can watch

the game if they chose

something else on the TV”

It’s distributed presence

The consume of only one content doesn’t

require a time or place defined, it goes

with the user and the consume can be

fragmented and distributed as exclusive

or complementaty to other screens.

“When I’m outside I watch it on

the phone but I can arrive and

keep going on the TV”

Always a companion, always available, always property of the user. No other screen offers this specific elements for the video consume.



It’s not about not using it with 3G o 4G but

about until what point. Usually, they try to

keep data for the consume of other services.

On the contrary, the current limit for this users had more to do with the conditionals than self-imposed limits.

The continuous data consumption outside the wifi connection.

The size of the screen for long consumption.

For media longer than 40 minutes they look

for a bigger screen.

The concurrence with other uses of the device

“It’s hard to see a movie”“I use it until I run out of it” “If i ran out of it, I

buy an additional package”

There is a conflict with other uses, specially

with WhatsApp, that tends to interrupt the

consume.

“You can’t chat while you are

watching a movie”“If you want to watch Game of

trhones you better watch it on

TV.”

The quality of the image is limited for hight interest

contents.

Those contents of higher interest are where

the and where consume experience has

more value tend to be avoided on the

Smartphone.



New lines and trends on video consumption

The Smartphone is starting to replace other screens at home: it generates preference even in front of higher

quality options.

The quality of the experience loses relevance in front of the

immediate access to the content

The consumption on Smartphone goes from competing with other screens to

compete with other activities: my work, my studies, my family time…

The consumption occasion becomes a determinant variable that it’s even more

important than the content itself. The content is now “subjected” to the situation of the user that now decides the time and

dedication to give to them.



All moments during day and night become sensitive to

become video consumption thanks to the Smartphone.

The continuity and routines of consumption are broken: any

moment and place is susceptible of being used.

Therefore, the consumers are moving towards to a consumption that is increasingly unstructured and distributed over time and space

The “omnivore” consumer of contents becomes even more compulsive, helped

by the almost unlimited access to content.

As a consequence, the consumption becomes less

planned, more compulsive and more present in each moment of

the user’s life

The intensive use of Smartphone for video consumptionNew lines and trends on video consumption


Advertising awareness by platforms and devices

2.5


3 out of 4 internet users have been touched by advertising. The advertising awareness on devices (not TV) grows significantly compared to 2015

Advertising awareness

Advertising impact for creativity type.

54%

46%

38%

34%

Vídeos

Display /Banner

Pop up

No

Base: Total (1410)

On TV On Smartphone On Smart tv On Tablet

53% 23% 28% 19%

n/a 45% 17% 34%

n/a 36% 19% 30%

n/a 53% 24% 43%

n/a 35% 26% 29%

n/a 55% 15% 36%

n/a 46% 22% 35%

n/a 40% 18% 37%

n/a 44% 17% 36%

TC channels

News websites

Sports websites

Video websites

TV channels websites

Social Media

Brands websites

Streaming websites

Download websites

Have TV and remember ads

(1401)

Have Smartphone and remember ads

(865)

Have Smart TV and remember ads (454)

Have Tablet and remember ads

(679)+5 pts. Vs 2015

- 7 pts. Vs 2015

- 6 pts. Vs 2015

- 6 pts. Vs 2015

+9 pts. Vs 2015

+21 pts. Vs 2015

+26 pts. Vs 2015

+18 pts. Vs 2015

+9 pts. Vs 2015

+14 pts. Vs 2015

+14 pts. Vs 2015

+18 pts. Vs 2015

+15 pts. Vs 2015

+11 pts. Vs 2015

+10 pts. Vs 2015

+12 pts. Vs 2015

+12 pts. Vs 2015

+19 pts. Vs 2015

+14 pts. Vs 2015

+15 pts. Vs 2015

+18 pts. Vs 2015

+23 pts. Vs 2015

+16 pts. Vs 2015

+20 pts. Vs 2015

+12 pts. Vs 2015

+13 pts. Vs 2015

+15 pts. Vs 2015

+18 pts. Vs 2015

Advertising impact for type and device

Impacted

67%

- 4 pts. Vs 2015

Diferencias significativas al 95% de confianza frente 2015


The format of the remembered ads and the interest on personalized advertising is similar and it doesn’t depend if it’s shown through an decoder, or an App of IPTV or OTTs

Has seen ads on…

Decoder

Apps of pay TV (Movistar +, Online TV service , Orange Multideviceo)

Internet TV service(Netflix, HBO, …)

34%

22%

21%

21%

17%

47%

Text

Banner (with images)

Video or animated ads

Info covers the screen for a while

Interactive Ads

I haven’t seen ads

38%

30%

31%

28%

28%

42%

Text




Interactive Ads


27%

24%

23%

18%

18%

53%

Text




Interactive Ads


Very interesting

Interesting

Not really interesting

Nothing interesting

13%

29%

24%

35%

12%

28%

26%

34%

11%

28%

25%

36%

It was… Interest on personalized ads


Sample: Have multidevice app (429)

Base: Use or pay OTTs (994)

Advertising awareness

Very interesting

Interesting


Nothing interesting

Very interesting

Interesting


Nothing interesting


Thank you.

Televidente 2.0 x trends on Video Consumption

Technology

Transcript of Televidente 2.0 x trends on Video Consumption