SUWANEE, Ga., July 22, 2015 /PRNewswire/ -- 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 percent) of those who stream now do so at least
weekly, up from 72 percent just last year. There is a clear
connection between Wi-Fi and mobile TV too, with nearly
three-quarters (73 percent) of people who watch mobile TV at least
once a week, using Wi-Fi to do so.
These trends are a likely culprit of the Internet issues that
nearly two-thirds (63 percent) of global consumers experience, as
well as their renewed interest in high-speed Internet in every room
of the house – a service that 72 percent 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 percent) 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 personal and solitary
activity for 60 percent of binge-viewing consumers.
The good news for service providers is that these trends
represent a number of opportunities to make it easier for consumers
of all ages to download or stream content, to customize content and
services to the individual consumer experience, and to solve
connectivity issues by giving consumers a high-speed wireless
connection where it is needed—all over the home—through better
Wi-Fi equipment and training.
Key findings from the 2015 ARRIS (NASDAQ: ARRS) Consumer
Entertainment Index include:
- Good quality Wi-Fi has become a necessity in homes: 72
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 percent) state that
it is vitally important to have high-speed Wi-Fi that works
outside of its current range. Service providers have a tremendous
opportunity to solve connectivity issues for consumers by providing
reliable, high-speed connections throughout the home.
- Popularity of mobile TV is maturing among younger
demographics, but future growth will rely on older
generations: More than half (59 percent) of all people
now watch mobile TV, rising to 72 percent of 16-24 year-olds.
However, while young people watch the most mobile TV, there has
been no increase in the number of viewers. For 65+ year-old
consumers, the number of mobile TV viewers has increased by a
remarkable 11 percent, up from 19 percent last year. This
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.
- Consumers prefer to download vs. stream mobile content:
Nearly three-quarters (72 percent) of downloading consumers say it
is important to be able to download content to a device so they can
watch it on-the-go without an Internet connection, rather than
having to rely on cellular connections to stream. Also, 73 percent
of the respondents who watch mobile TV use Wi-Fi to do so. This
presents an opportunity for service providers to facilitate content
downloads to mobile devices.
- Binge-viewing has gone solo in 2015: 60 percent of
binge-viewers do so alone, and the average binge-viewing consumer
now watches for three hours in each sitting. Thus, service
providers have an opportunity to personalize content and services
for the individual and deliver a more tailored customer
experience.
- Slow Growth in OTT Fails to Draw Broadcast TV Users: The
past year has seen a nominal increase in OTT users (from 93 percent
to 94 percent) and a similarly nominal decrease in broadcast TV
users (from 97 percent to 96 percent). 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:
1.) consumer dependence on Wi-Fi and consequent frustration
with its quality, 2.) the concurrent growth and hindrance of
mobile TV adoption, 3.) the growing preference for
downloading vs. streaming mobile content, and 4.) the
increasingly personal nature of binge-viewing.
"All of these trends point to a tremendous opportunity for
service providers and programmers to customize 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."
Reliable Wi-Fi evolves from a convenience to a necessity in
every room
Reliable Wi-Fi has become a necessity in homes as the average
global household now has an average of six media devices connected
to its Wi-Fi network. However, two-thirds (63 percent) of consumers
have experienced significant issues around slow Internet speeds
that affect streaming and downloading of large files and video.
Service providers have an opportunity to solve connectivity issues
by giving consumers a high-speed wireless connection where it is
needed – all over the home.
- 72 percent of consumers say having a high-speed Internet
connection available to use in every room of their house is either
vitally important or very important.
- On average, 54 percent of respondents say it is vital to have
high-speed Wi-Fi that works beyond its current range, it is even
higher in some countries, most notably in Asia-Pacific:
- South Korea (68 percent)
- China (67 percent)
- India (61 percent)
- Issues with streaming and downloading content varies by
country:
- Four out of five (80 percent) of Chinese Internet users
experience issues – the highest reported
- A third (38 percent) of Japanese Internet users experience
issues – the lowest reported
- Respondents are disappointed with Wi-Fi quality in multiple
rooms in the house:
- Living room: 13 percent
- Master bedroom: 13 percent
- Kitchen: 10 percent
- Toilet and bathroom: 10 percent
- While on average, 29 percent of global respondents use a Wi-Fi
range extender, it is even higher in some countries:
- More than half of people in India (52 percent) use a Wi-Fi range
extender
- 47 percent in Brazil
- 42 percent in Russia
- And while on average 19 percent of global respondents are
considering getting a Wi-Fi range extender, again, this trend is
even higher in some countries:
- 32 percent in Mexico
- 29 percent in Turkey
- The bedroom has become even more popular as a place to stream
TV and movies:
- 35 percent of those who stream a subscription service do so in
the bedroom (up from 22 percent in 2014)
- Of course, not everyone even has or uses Wi-Fi at home:
- 9 percent of global respondents do not have or use Wi-Fi at
home
- 17 percent in Russia do not
have or use Wi-Fi at home
- 28 percent in Japan do not
have or use Wi-Fi at home
Popularity of mobile TV is maturing among younger
demographics, but future growth will rely on older
generations
The popularity of mobile TV is maturing among younger
demographics, 59 percent now watch TV on the go. However, future
growth will rely on older generations. The industry must help
consumers overcome barriers of inconvenience and cost, and make it
easier for consumers to download or stream content.
- This year, consumers are 7 percent more likely to watch mobile
TV away from home, and 6 percent more people watch TV in that
manner every day
- Most surprisingly, in 2015 mobile TV grew the most among 65
year olds and over (11 percent increase)
- However, the younger people are, the more they watch mobile TV:
- 72 percent of 16-24 year-olds watch mobile TV
- 53 percent of 45-54 year-olds watch mobile TV
- 42 percent of 55-64 year-olds watch mobile TV
- Mobile TV consumption varies by age group, for 25-34 year-olds,
specifically:
- One in five (21 percent) watch mobile TV daily
- More than half (57 percent) watch mobile TV at least once a
week (up from 53 percent in 2014)
- Although, 27 percent never watch mobile TV (down from 29
percent in 2014)
- Not everyone wants their TV to be mobile:
- 41 percent of global respondents never or rarely use a
laptop, smartphone or tablet to watch TV outside the house
- This rises to three-quarters (75 percent) of respondents in
Japan, followed by 62 percent in
Australia, and 60 percent in
Canada
- High costs are holding back younger people from watching mobile
TV. For older people, the screen is the main reason
- The majority of mobile TV consumers use Wi-Fi:
- 73 percent use free Wi-Fi
- 50 percent use 3G/4G/5G
Consumers prefer to download rather than stream mobile
content because of patchy coverage while on-the-go
The majority of respondents prefer to download vs. stream
content for mobile viewing. 72 percent of downloading consumers say
it is important to be able to download content to a device so they
can watch it on-the-go without an Internet connection, rather than
having to rely on cellular connections to stream.
- Consumers mostly prefer to watch mobile TV while travelling:
- 44 percent watch on public transport (highest in South Korea at 68 percent and Singapore at 67 percent)
- 41 percent while waiting to meet someone (highest in
Brazil at 54 percent)
- 31 percent watch in the car (highest in India at 52 percent and in the US at 44
percent)
- 31 percent while waiting to receive a service such as at the
doctor's or a repair shop (highest in Brazil at 46 percent)
- 30 percent at restaurants, cafes, bars or pubs
- 27 percent while out walking
- 24 percent at a hotel
- 14 percent while shopping
- 68 percent of respondents said they are interested in a service
that allows them to watch any TV program at any location
- Rising to 75 percent for 16-24 year-olds
Binge-viewing is a solo activity
Expanding on binge-viewing trends uncovered last year,
binge-viewing has gone solo in 2015 – service providers have
an opportunity to personalize content and services to the
individual for more tailored customer experiences
- 60 percent of binge-viewers in 2015 said they do so alone
- Solo-binging is most popular in the Asia-Pacific region:
- Four out of five (80 percent) of binge-viewers solo-binge in
Japan
- 77 percent in China
- 72 percent in South Korea
- And is lowest in Latin
America:
- Mexico solo-binges the least
with only 40 percent of binge-viewers doing so
- More young people binge-view, and they do it for longer:
- 89 percent of 16-24 year-olds binge-watch globally
- On average, they watch for 4 hours each time
- 70 percent of 16-24 year olds binge-view at least once a month
(the same as last year)
- People prefer to binge-watch on a TV, but mobile-binging is
also rising:
- 69 percent binge-viewers use a TV (up from 61 percent in
2014)
- 21 percent use a mobile device (up from 16 percent in
2014)
- Binge-watching is a monthly occurrence for most people:
- 33 percent of all respondents binge-view at least once a
week
- 56 percent binge-view at least once a month
- 54 percent of people in Brazil
binge-watch weekly though (up from 39 percent last year)
Slow Growth in OTT Fails to Draw Broadcast TV Users
Results reveal disparity between industry expectation of
OTT/catch-up TV services and its actual rate of growth and suggests
that Broadcast TV remains king for now.
- 1 percent growth in OTT users since last year (from 93 percent
to 94 percent)
- Rising to 12 percent in the 65+ year-old age group (from 70
percent to 82 percent)
- 1 percent drop in broadcast TV users who have access to OTT
(from 97 percent to 96 percent)
- 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
About The ARRIS Consumer Entertainment Index
ARRIS's
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 USA. The research was conducted on behalf of
ARRIS by independent agency, Vanson
Bourne.
This research is focused on media content consumption on
multiple devices. 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.
To access the report, go to: www.arris.com/arriscei
About ARRIS
ARRIS Group, Inc. (NASDAQ: ARRS) is a
world leader in entertainment and communications technology. Our
innovations combine hardware, software, and services across the
cloud, network, and home to power TV and Internet for millions
of people around the globe. The people of ARRIS collaborate with
the world's top service providers, content providers, and
retailers to advance the state of our industry and pioneer
tomorrow's connected world. Together, we are inventing the future.
For more information, visit www.arris.com.
For the latest ARRIS news:
- Check out our blog: ARRIS EVERYWHERE
- Follow us on Twitter: @ARRIS
ARRIS and the ARRIS Logo are trademarks or registered
trademarks of ARRIS Enterprises, Inc. All other
trademarks are the property of their respective owners. ©
ARRIS Enterprises, Inc. 2015. All rights reserved.
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