The ever growing number of connected mobile devices is quickly disrupting the traditional home entertainment environment, according to an Ericsson (Nasdaq: ERIC) Consumer Insight Summary report entitled "TV and Media."
The report found, among other things, that 72 percent of viewers use mobile devices at least once a week to view video and 42 percent do this outside the home. Also, 75 percent are found to be multitasking by using mobile devices while watching TV, and one-quarter "even watch multiple video sources at the same time."
Of especial note to pay TV providers that depend on non-cutting-edge consumers to boost their video subscriber numbers, "as many as 41 percent of 65-69-year-olds studied stream on-demand/time shifted TV and video content, including YouTube on a more than weekly basis," the report said.
Ericsson's findings seem to suggest that the era of program blocs is near its end and that there is a drive among video providers to become "the first easy-to-use, a la carte TV solution provider that aggregates consumer TV and video needs."
"The way people view their choices is increasingly moving away from one that is based around TV schedules and a single domestic device to one where the source is chosen based on what is available and best suited to a given situation," the report stated.
While dwelling on the threats of a new era of consumer-friendly OTT service providers, the report does offer up hope for existing pay TV aggregation models--if properly adapted.
"Emerging models are … likely to involve an even mix of consumer and market forces," the report concluded. "Future models are likely to consist of a combination of affordable monthly subscriptions with no binding time, coupled with unobtrusive advertising … complemented by T-VOD and pay-per-view services for specific premium content such as new movies, live sports and events."
- Ericsson issued this report
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