On-demand video viewing rises to 35% of TV consumption

The report also shows that video-on-demand (VOD) services are succeeding in meeting consumer needs, thus allowing consumers to change their viewing habits. Consumers are embracing VOD, with every third viewing hour now spent watching on-demand TV and video. Viewing user-generated content is also on the rise, as almost one in 10 watches YouTube for more than three hours per day.

The report is representative of the views and habits of 680 million consumers making it one of the largest studies of its kind.

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Consumers now spend six hours per week watching streamed on-demand TV series, programs and movies - this has more than doubled since 2011. With recorded and downloaded content added to the equation, today 35% of all TV and video viewing is watched on-demand.

Further findings highlight the considerable growth in consumers watching video on a mobile device: 61% watch on their smartphones today, an increase of 71% since 2012. When taking tablets, laptops and smartphones into consideration, nearly two thirds of time spent by teenagers' watching TV and video is on a mobile device.

At the same time, user-generated content (UGC) platforms account for a growing share of consumers' TV and video viewing. One in three now consider it very important to be able to watch UGC on their TV at home. In addition, the study finds that the increasing prominence of UGC-rich platforms, such as YouTube, has resulted in a popularity boost for educational and instructional videos, with consumers watching an average 73 minutes of these videos per week.

Anders Erlandsson, Senior Advisor, Ericsson ConsumerLab, says, "The continued rise of streamed video on demand and UGC services reflects the importance of three specific factors to today's viewers: great content, flexibility and a high-quality overall experience. Innovative business models that support these three areas are now crucial to creating TV and video offerings that are both relevant and attractive."

Other significant findings

• Bingeing is changing the game: Watching multiple TV episodes in a row has rapidly become a key part of the TV and video experience. This habit is prominent among subscription video-on-demand (S-VOD) users of services such as Netflix, Amazon Prime, and HBO, of whom 87% binge-view at least once a week.
• The difficulty of finding content: Half of consumers watching linear TV say they cannot find anything to watch on a daily basis. Consumers feel that recommendation features are simply not smart or personal enough.
• Different bundles, different attitudes: Twenty-two percent of consumers who have never had a pay-tv subscription are already paying for over-the-top (OTT) content services.
• Linear TV remains key: The popularity of linear TV remains high, mainly due to the access it gives to premium viewing and live content, such as sports, as well as its social value. In this respect, linear TV often acts as a 'household campfire'.