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TV Universe—UK, Germany, Sweden: HOW PEOPLE WATCH TELEVISION TODAY Author: Colin Dixon, Founder and Chief Analyst, Nscreenmedia | 2019

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TV Universe—UK, Germany, Sweden: HOW PEOPLE WATCH TELEVISION TODAY Author: Colin Dixon, Founder and Chief Analyst, Nscreenmedia | 2019 TV Universe—UK, Germany, Sweden: HOW PEOPLE WATCH TELEVISION TODAY Author: Colin Dixon, Founder and Chief Analyst, nScreenMedia | 2019 I NTRODUCTION Technology has become such a part of our daily lives that sometimes it seems that it is an end unto itself. However, in the world of the consumer, it has a particular role to play. Tim O’Reilly, who coined the term “open source,” put Online TV is now the second it this way: most popular source of “What technology does is create new opportunities to do a job that customers want done.”1 Home entertainment is most certainly a job that people “want done.” Ninety years ago, broadcast television television content in the UK, technology was the new opportunity to deliver it in an entirely new way.2 Based on the data from our most recent survey in Europe, the internet has become the next new opportunity to provide television entertainment to the home. Germany, and Sweden. Today, there are three primary sources of TV entertainment available to consumers: free-to-air (FTA), pay TV, and online TV. Free-to-air TV channels are typically received via an antenna but can also arrive over satellite and cable. Examples include BBC1, SVT1, and Das Erste. Pay TV services distribute linear TV over cable, satellite, and telco TV systems. Examples include Virgin Media, Sky Deutschland, and Com Hem. Online TV allows viewers to stream or download shows and movies over mobile and broadband data networks. Examples of services include Netflix, Now TV, and Amazon Prime Video. Just twelve years after Netflix first introduced streaming services, online TV has become the second most popular TV source in the UK, Germany, and Sweden. However, we are far from traditional television being swept away. The reality is that pay TV in Sweden and the UK, and FTA in Germany still deliver most home TV entertainment. That said, whereas twelve years ago most homes used a single source for TV, today nearly half of viewers in all three countries are multi-source television households. The survey data you will find in this report delves into the TV universe of viewers in the UK, Germany, and Sweden. It reveals that television viewing has become a complicated business for consumers. They are juggling multiple services from two or more sources across several devices. This report is sponsored by: This report details consumer usage data for FTA, pay TV, and online TV viewers, and the sizes of groups watching combinations of these sources. It will answer your questions about how many people are watching, the services and devices they are using, how much they are paying, and their attitudes to the experience they are having. It will also discuss how people are finding something to watch across all their services. www.gracenote.com TV Universe—UK, Germany, Sweden: How People Watch Television Today | Page 1 K E Y F INDINGS Users of pay TV, free-to-air, online TV— The Rise of Multi-TV Service Viewing UK, Germany, and Sweden It has been seven years since Netflix launched in the UK and Sweden, and nine years since LoveFilm (now Amazon Prime Video) started streaming services in the German market. Since that time, our survey of the UK, German, and Online TV Pay TV Free-to-air Swedish viewers shows there has been broad adoption of the services: 79% • More than half of UK and Swedish TV viewers watch paid streaming services. 65% 2019 ©nScreenMedia, 65% 54% • 39% of German TV viewers watch streaming services. 52% 47% 47% 39% 35% Before streaming arrived, most people relied on either FTA or pay TV for TV entertainment in Europe. Today, 46% of UK, 52% of Swedish, and 42% of German viewers use more than one TV source. There is also a smaller group of viewers in each of the three countries studied that use all three of the primary TV UK Germany Sweden sources. 17% of UK, 14% of Swedish, and 11% of German viewers use pay TV, FTA, and online TV to watch. Online Second Most Popular Source of TV Guide users that consider graphics an important influence in deciding what to Pay TV remains the most popular TV source in Sweden and the UK, with close to two-thirds using it. FTA is the watch—average versus 18-24s most popular in Germany with 4 in 5 using it. However, online TV is now the second most popular source of TV in all three countries. Average 18-24s 90% 86% 78% Finding Something to Watch 70% Finding something to watch among all the TV sources and services can be challenging. The on-screen guide remains 57% 59% the tool most TV viewers prefer to use to help them with the task: • Regardless of TV source used, the on-screen guide is the most popular option in the UK and Sweden. • Germany pay TV and FTA users prefer channel flipping and the paper guide, though the on-screen guide is still important. • It is the most popular option for German online viewers. Graphics in TV show and movie guide listings are a critical influencer in helping people decide what to watch. In all three countries: UK 2019 ©nScreenMedia, Germany Sweden When you are browsing a TV or video app guide, how • 3 in 5 or more think guide graphics are an important influence on their viewing choice. important is the graphical image representing a TV show or • Around 4 in 5 or more 18- to 24-year-olds said the same. movie in helping you decide what to watch? (n1=500,80,n2=500,96,n3=500,84) A similar number think show and movie descriptions are important in their selection of what to watch. Once again, descriptions wielded a more substantial influence among 18–24s. TV Universe—UK, Germany, Sweden: How People Watch Television Today | Page 2 Which Viewing Groups Watch the Most 60% or more think show and More UK viewers are big TV consumers compared to the other two countries. 38% of UK viewers spend three or more hours a day watching TV. 23% of Germans and 26% of Swedes are big TV consumers. Looking at other movie graphics in the viewing groups, we observe the following viewing trends: on-screen guide are an • Pay TV viewers—either alone or in combination with another source—tend to watch more than average. • Only 11% of German online viewers are big TV consumers. important influence on their • Only 13% of Swedish FTA viewers are big TV consumers. viewing choice. Online Viewer Device Preferences In all countries, the TV set is the preferred device through which to watch. 70% of total viewing time is through the TV screen in the UK and Germany, and 60% in Sweden. The most common way of watching online TV is through a smart TV, and Samsung is the most popular brand in all three countries. The streaming media player is the second most used device, with Amazon Fire TV the most popular brand in the UK and Germany and Chromecast in Sweden. Pay TV Highlights Pay TV users are mostly satisfied with their service, although 1 in 5 say they plan to leave their current operator. UK pay TV subscribers spend €49 (£42) per month, much more than Germans and Swedes. Many fewer use these apps in Europe: • Half or more have never used their operator’s TV Everywhere app. • A third or less use the apps at least monthly. • 1 in 10 use the apps at least once per week. Online TV Highlights The average Swedish online video subscriber has 1.7 services, British subscribers have 1.6, and Germans have 1.5. UK online viewers spend marginally more each month on services: • UK online viewers spend €18.95 (£16.20) per month. • Swedes spend €16.93. • Germans spend the least, €14.60. Netflix is the top app in the UK and Sweden, and Amazon Prime Video is top in Germany. Online viewers in the UK and Sweden are more satisfied with the service they have had the longest than pay TV users are with their pay TV service. Germans are equally satisfied with their pay TV and online TV services. TV Universe—UK, Germany, Sweden: How People Watch Television Today | Page 3 Number of people who buy and rent Free-to-air Highlights videos in the UK, Germany, Sweden Most FTA viewers use broadcaster TV apps on their connected devices. 46% • 77% of UK FTA viewers use the apps, with BBC iPlayer and ITV Hub the top two apps. • 59% of Germans use the apps, with ZDF and ARD the top apps. ©nScreenMedia, 2019 • 56% of Swedes use the apps, with SVT Play and TV4 Play the top two apps. 35% 35% 33% Red button services remain important in Germany and the UK with almost half of FTA viewers using them. 28% 27% Buying and Renting Movies Buying movies—discs and digital copies—is more popular than renting: • 46% in the UK, and 35% in both Germany and Sweden buy movies. • 33% in the UK, 28% in Germany, and 27% in Sweden rent movies. 18- to 24-year-olds are much more likely to rent or buy a video than average. For example, in the UK 46% say they rent videos, versus a third on average. In Germany, half say they buy videos versus 35% on average. UK Germany Sweden Buy Rent TV Universe—UK, Germany, Sweden: How People Watch Television Today | Page 4 UK V IEWERS UK adults watching 3 or more hours The UK TV Universe per day of video We asked UK television viewers which sources of television they use.
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