Ericsson: Connected devices disrupting home entertainment

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."

Ericsson mobile viewing surveyOf 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."

For more:
- Ericsson issued this report

Related articles:
Ericsson's Nandlall: Mediaroom acquisition positions us as a video space player
Analyst: Pay TV providers need to build CDNs to compete with Netflix, Amazon
Taiwanese IPTV provider Chunghwa Telecom adds YouTube to video service

Suggested Articles

Blockgraph has partnered with TVSquared to provide omni-channel TV measurement and audience activation.

The CEOs of AT&T, Charter and Comcast this week presented varying visions for the future of pay TV at their respective companies.

Charter doesn’t think it needs its own video streaming box and believes its video app strategy and third-party agreements are enough.