Traditional TV challenged by new technologies

Traditional TV challenged by new technologies

Study cites changing patterns in media consumption.

A new study on consumer behaviour revealed that more consumers are turning to other technology sources to view contents instead of traditional broadcast TV. Ericsson's ConsumerLab study titled Multi Screen Media Consumption 2010 showed that 35 per cent of the consumer's leisure time are spent watching TV. However, these consumers are also aware that there are other technologies from which they can get the TV and video content.

Covering a representative sample from China, Germany, Spain, Sweden, Taiwan, the UK and the US, the study also revealed that more than 70 per cent of consumers surveyed are streaming, downloading or watching recorded TV broadcast on a weekly basis. Another 50 per cent are using Internet-based on-demand TV/video every week.

Ericsson said these results are significant as they indicate that there are new patterns of media consumption in the offing.

Viewing habits

"At least once a week, 93 per cent are still watching scheduled 'linear' broadcast TV, but the role of broadcast TV is changing owing to the introduction of new distribution channels," the Ericsson study read.

The study explained that on-demand viewing is attractive to some consumers and this spurs consumption. On-demand viewing is attractive because it allows viewers to watch unlimited content at a time convenient to them and preferably without commercial breaks. Consumers see this option as an enhanced viewing experience.

"Consumption is fragmented and complex," said Anders Erlandsson, senior advisor at Ericsson ConsumerLab. "There are few established consumption patterns and it's a trial-and-error market with lots of curiosity around it. "The consumer is looking for a solution that can offer them the freedom to choose what they want, when they want it and how they want it. The user experience is in focus, rather than the technical platform."

Consumer spending

However, the study also noted that viewers are still not willing to pay for what they want to view.

The average consumer spends EUR38 (US$48) per month on their TV viewing, and almost 60 per cent of that relates to broadcast TV. However, since the time spent watching broadcast TV accounts for only about 40 per cent of the total TV/video consumption, Ericsson said this indicates that consumers are not paying for what they use the most.

Ericsson ConsumerLab said "consumer spending will shift in the future, with a significant increase in on-demand spending, provided that consumer requirements for high quality, ease of use and access to the right content are met."

Ericsson said the study sample is representative of more than 300 million consumers.

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Tags consumerisation of technology

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