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| Source: ARRIS CEI. Click on the image to view a larger version. |
The 2015 ARRIS Consumer Entertainment Index (CEI)*, launched today, reveals that consumers demand Wi-Fi without limits, and highlights a growing disparity between expectation and reality when it comes to Wi-Fi at home. The findings also point to a connection to the expanding ecosystem of devices and growing popularity of streaming services.
Worldwide, the average home now has six media devices connected to its Wi-Fi network, and the average household spends almost 6.5 hours each week streaming a subscription service. Moreover, four out of five (81%) of those who stream now do so at least weekly, up from 72% last year. There is a clear connection between Wi-Fi and mobile TV too, with nearly three-quarters (73%) of people who watch mobile TV at least once a week using Wi-Fi to do so.
These trends are a likely reason for the Internet issues that nearly two-thirds (63%) of global consumers experience, as well as their renewed interest in high-speed Internet in every room of the house – a service that 72% indicated was either very important or vitally important.
The research underscores new qualifications for the rise of both mobile TV and binge-viewing. While the popularity of mobile TV continues to increase—more than half (59%) of consumers are now watching TV on-the-go—the potential for growth is greatest in older demographics, where barriers of inconvenience and cost continue to challenge broader market adoption. Meanwhile, binge-viewing has evolved into a very solitary activity for 60% of binge-viewing consumers.
The good news for service providers is that these trends represent a number of opportunities, such as making it easier for consumers to download or stream content, to customise content and services, and to solve connectivity issues by giving consumers a high-speed wireless connection home-wide through more advanced Wi-Fi equipment and training.
Key findings from the 2015 ARRIS Consumer Entertainment Index include:
Good quality Wi-Fi has become a necessity in homes
Mobile TV growth will rely on older generations
The CEI found that 72% percent of 16-24 year-olds watch mobile TV, compared to 53% of 45-54 year-olds and 42% of 55-64 year-olds. For the 25-34 year-olds, which can be expected to have the most spending power:
o One in five (21%) watch mobile TV daily
o Nearly three in five (57%) watch mobile TV at least once a week (up from 53% in 2014)
Consumers prefer to download vs. stream mobile content
Worldwide, the average home now has six media devices connected to its Wi-Fi network, and the average household spends almost 6.5 hours each week streaming a subscription service. Moreover, four out of five (81%) of those who stream now do so at least weekly, up from 72% last year. There is a clear connection between Wi-Fi and mobile TV too, with nearly three-quarters (73%) of people who watch mobile TV at least once a week using Wi-Fi to do so.
These trends are a likely reason for the Internet issues that nearly two-thirds (63%) of global consumers experience, as well as their renewed interest in high-speed Internet in every room of the house – a service that 72% indicated was either very important or vitally important.
The research underscores new qualifications for the rise of both mobile TV and binge-viewing. While the popularity of mobile TV continues to increase—more than half (59%) of consumers are now watching TV on-the-go—the potential for growth is greatest in older demographics, where barriers of inconvenience and cost continue to challenge broader market adoption. Meanwhile, binge-viewing has evolved into a very solitary activity for 60% of binge-viewing consumers.
The good news for service providers is that these trends represent a number of opportunities, such as making it easier for consumers to download or stream content, to customise content and services, and to solve connectivity issues by giving consumers a high-speed wireless connection home-wide through more advanced Wi-Fi equipment and training.
Key findings from the 2015 ARRIS Consumer Entertainment Index include:
Good quality Wi-Fi has become a necessity in homes
Seventy-two percent of consumers consider a high-speed Internet connection in every room of their house either vitally important or very important. And, more than half (54%) state that it is vitally important to have high-speed Wi-Fi that works outside of its current range. However, two-thirds (63%) of consumers have experienced significant issues around slow Internet speeds that affect streaming and downloading of large files and video.
Service providers have a tremendous opportunity to solve connectivity issues for consumers by providing reliable, high-speed connections throughout the home.
Mobile TV growth will rely on older generations
Nearly six in 10 (59%) now watch mobile TV, rising to nearly three quarters (72%) of 16 to 24 year-olds. However, while young people watch the most mobile TV, there has been no increase in the number of viewers. In the 65+ year-old demographic, mobile TV viewers have increased by 11%, up from 19% last year. This older demographic presents an excellent growth opportunity for operators if they can help consumers overcome barriers of inconvenience and cost, and make it easier to download or stream content.
The CEI found that 72% percent of 16-24 year-olds watch mobile TV, compared to 53% of 45-54 year-olds and 42% of 55-64 year-olds. For the 25-34 year-olds, which can be expected to have the most spending power:
o One in five (21%) watch mobile TV daily
o Nearly three in five (57%) watch mobile TV at least once a week (up from 53% in 2014)
Consumers prefer to download vs. stream mobile content
Nearly three-quarters (72%) of consumers who download say it is important to be able to download content to a device so they can watch it on-the-go offline, rather than having to rely on possibly-patchy cellular connections to stream. Also, 73% of the respondents who watch mobile TV use Wi-Fi to do so. In fact, consumers are 7% more likely to watch mobile TV away from home, and 6% more people watch TV in that manner every day.
This presents an opportunity for service providers to facilitate content downloads to mobile devices.
Binge-viewing has gone solo in 2015
OTT fails to draw broadcast TV users
Sandy Howe, Senior Vice President, Global Marketing, ARRIS, commented: “The ARRIS CEI research offers our customers invaluable insight into the evolving consumer interaction with entertainment technology and content. It underscores four major trends: consumer dependence on Wi-Fi and consequent frustration with its quality, the concurrent growth and hindrance of mobile TV adoption, the growing preference for downloading vs. streaming mobile content, and the increasingly personal nature of binge-viewing.
“All of these trends point to a tremendous opportunity for service providers and programmers to customise their offerings to these new consumer trends and to ensure the quality of the home’s Wi-Fi network, which increasingly is bearing the weight of this evolution in services.”
Other highlights of the CEI include:
Binge-viewing has gone solo in 2015
Sixty percent of binge-viewers do so alone, and the average binge-viewing consumer now watches content for three hours at a time. The 16-24 year-olds in particular are very comfortable with binge-watching globally. On average, 89% of them will binge-watch, and they are happy to watch for four hours each time. Solo-binging is most popular in the Asia-Pacific region, where four out of five of binge-viewers solo-binge in Japan, 77% do so in China, and 72% in South Korea.
Thus, service providers have an opportunity to personalise content and services for the individual and deliver a more tailored customer experience.
OTT fails to draw broadcast TV users
The past year has seen a nominal increase in OTT users, from 93% to 94%, and a similarly nominal decrease in broadcast TV users (from 97% to 96%). The only bright spark is in the 65+ year-old age group, for which OTT users went from 70% to 82%.
This highlights a disparity between industry expectation of these services and their actual rate of acceleration and suggests that broadcast TV remains king for now.
Sandy Howe, Senior Vice President, Global Marketing, ARRIS, commented: “The ARRIS CEI research offers our customers invaluable insight into the evolving consumer interaction with entertainment technology and content. It underscores four major trends: consumer dependence on Wi-Fi and consequent frustration with its quality, the concurrent growth and hindrance of mobile TV adoption, the growing preference for downloading vs. streaming mobile content, and the increasingly personal nature of binge-viewing.
“All of these trends point to a tremendous opportunity for service providers and programmers to customise their offerings to these new consumer trends and to ensure the quality of the home’s Wi-Fi network, which increasingly is bearing the weight of this evolution in services.”
Other highlights of the CEI include:
· On average, 54% of respondents say it is vital to have high-speed Wi-Fi that works beyond its current range.This requirement is higher in some countries, most notably in Asia-Pacific, with 68% of South Koreans requesting this, 67% of Chinese, and 61% of Indians.
· Issues with streaming and downloading content vary by country. Four out of five of Chinese Internet users experience issues – the highest reported, while around two out of five Japanese Internet users (38%) experience issues, the lowest reported.
· While on average, 29% of global respondents use a Wi-Fi range extender, it is even higher in some countries. More than half of people in India (52%) use a Wi-Fi range extender. And while on average of 19% of global respondents are considering getting a Wi-Fi range extender, again, this trend is higher in some countries, reaching 29% in Turkey.
· Not everyone even has or uses Wi-Fi at home, with 9% of global respondents reporting this. Significantly, 28% in Japan do not have or use Wi-Fi at home.
· Not everyone wants their TV to be mobile, either. High costs hold back younger people from watching mobile TV, while older people do not like the small screen.
More than a quarter (27%) never watch mobile TV, down from 29% in 2014, and a further 41% of global respondents never or rarely use a laptop, smartphone or tablet to watch TV outside the house. This rises to three-quarters of respondents in Japan, followed by 62% in Australia.
· Consumers mostly prefer to watch mobile TV while travelling: 44% watch on public transport, with the highest percentage of people doing so in South Korea at 68% and Singapore at 67%. Others use it to fill in the time while waiting to meet someone (41%), when in the car (31%, with India topping the list at 52%), the same number while while waiting to receive a service such as at the doctor’s or a repair shop, then 30% at dining areas such as restaurants, cafes, bars or pubs.
· Issues with streaming and downloading content vary by country. Four out of five of Chinese Internet users experience issues – the highest reported, while around two out of five Japanese Internet users (38%) experience issues, the lowest reported.
· While on average, 29% of global respondents use a Wi-Fi range extender, it is even higher in some countries. More than half of people in India (52%) use a Wi-Fi range extender. And while on average of 19% of global respondents are considering getting a Wi-Fi range extender, again, this trend is higher in some countries, reaching 29% in Turkey.
· Not everyone even has or uses Wi-Fi at home, with 9% of global respondents reporting this. Significantly, 28% in Japan do not have or use Wi-Fi at home.
· Not everyone wants their TV to be mobile, either. High costs hold back younger people from watching mobile TV, while older people do not like the small screen.
More than a quarter (27%) never watch mobile TV, down from 29% in 2014, and a further 41% of global respondents never or rarely use a laptop, smartphone or tablet to watch TV outside the house. This rises to three-quarters of respondents in Japan, followed by 62% in Australia.
· Consumers mostly prefer to watch mobile TV while travelling: 44% watch on public transport, with the highest percentage of people doing so in South Korea at 68% and Singapore at 67%. Others use it to fill in the time while waiting to meet someone (41%), when in the car (31%, with India topping the list at 52%), the same number while while waiting to receive a service such as at the doctor’s or a repair shop, then 30% at dining areas such as restaurants, cafes, bars or pubs.
· People prefer to binge-watch on a TV, but mobile-binging is also rising: 69% of binge-viewers use a TV (up from 61% in 2014) and 21% use a mobile device (up from 16% in 2014). A third of all respondents binge-view at least once a week and 56% binge-view at least once a month.
· The average consumer spends 11.8 hours per week watching free broadcast TV compared to:
§ Subscription paid TV: 10 hours/week
§ Internet stream via on-demand TV service or catch-up TV service: 6.4 hours/week
§ Internet TV with / without attached box: 6.3 hours/week
§ Internet stream via paid subscription TV service: 7.6 hours/week
· The average consumer spends 11.8 hours per week watching free broadcast TV compared to:
§ Subscription paid TV: 10 hours/week
§ Internet stream via on-demand TV service or catch-up TV service: 6.4 hours/week
§ Internet TV with / without attached box: 6.3 hours/week
§ Internet stream via paid subscription TV service: 7.6 hours/week
*ARRIS’ Consumer Entertainment Index is a research project looking into the media consumption habits of 19,000 consumers across 19 markets: Argentina, Australia, Brazil, Canada, Chile, China, France, Germany, India, Japan, Mexico, Sweden, Russia, Singapore, South Korea, Spain, Turkey, UK, and the US. The research was conducted on behalf of ARRIS by independent agency Vanson Bourne.
The aim of the study was to develop both a global and regional understanding of what content was coming into homes and how it was being consumed, how viewing habits are evolving, and trends service providers should seek to support both now and in the future. The research is statistically representative of all connected consumers in the world.
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