tv and media nigeria 2015...tv and media in nigeria consumerlab how changing consumer needs are...

TV AND MEDIA in nigeria

CONSUMERLAB

How changing consumer needs are creating a new media landscape

An Ericsson Consumer Insight Summary Report September 2015

the voice of the consumerEricsson ConsumerLab has 20 years’ experience of studying people’s behaviors and values, including the way they act and think about ICT products and services. Ericsson ConsumerLab provides unique insights on market and consumer trends. Ericsson ConsumerLab gains its knowledge through a global consumer research program based on interviews with 100,000 individuals each year, in more than 40 countries and 15 megacities – statistically representing the views of 1.1 billion people.

Both quantitative and qualitative methods are used, and hundreds of hours are spent with consumers from different cultures. To be close to the market and consumers, Ericsson ConsumerLab has analysts in all regions where Ericsson is present, developing a thorough global understanding of the ICT market and business models.

All reports can be found at: www.ericsson.com/consumerlab

The study was a combination of qualitative discussions and quantitative interviews that were held in 2014.

Qualitative There were 4 focus group discussions and 6 in-depth interviews conducted with male and female respondents in the 18–45 age group. All interactions happened in Lagos, Nigeria and were split between heavy and light users of TV and media. Heavy users are categorized as those who access TV and media content on any device for at least 15 hours per week, while light users are those who access content on any device for up to 7 hours per week.

Quantitative1,500 face-to-face interviews were conducted across 7 cities in Nigeria. These were Abuja, Enugu, Ibadan, Kaduna, Kano, Lagos and Port Harcourt. The interviews were conducted with male and female respondents aged 18–69 who view TV and media at least weekly. Overall, the data represents 24.9 million people living in Nigeria.

METHODOLOGY

2 ERICSSON CONSUMERLAB TV AND MEDIA IN NIGERIA

Contents 3 KEY FINDINGS

4 SHIFTING TIME AND SPACE

6 DIVERSE CONTENT CHOICES

8 WATCH ON DEMAND

9 STREAMING IS YET TO TAKE OFF

10 LIMITED CHOICES

11 NEW MODES OF DELIVERY

NIGERIA

72%

ERICSSON CONSUMERLAB TV AND MEDIA IN NIGERIA 3

Viewing habits are shifting away from traditional devices

On-demand viewing is still to catch up Consumers want to pick and choose payment and subscription methods

Growing interest in new video services

Streaming is yet to take off

57 percent of Nigerians 18–24 years old want to watch TV and video content at their convenience, while 67 percent want easy access to video content across all devices

Globally, 38 percent of consumers use on-demand, internet-based video services, while in Nigeria this is just 16 percent

55 percent of Nigerians want to pick and choose the channels they subscribe to

Over 50 percent of the Nigerians interviewed find that mobile video on-demand (M-VOD) and IPTV Triple Play are attractive services and are open to subscribing

72 percent believe that mobile operators should provide M-VOD, and mobile service providers and operators should offer IPTV services

76 percent of global consumers stream videos weekly, compared to 27 percent of Nigerians

50 percent of the time that Nigerians spend watching video is on laptops and smartphones

Only 36 percent of Nigerian consumers are satisfied with finding content online that suits their viewing habits and preferences

65 percent of the total spend on piracy is on physical media such as CDs and DVDs

Streaming issues and download speeds are the two most important factors affecting the satisfaction of those watching video content online

Key Findings

36%

Only 30 percent of Nigerians are satisfied with streaming over the internet

30%

Shifting digitalIncreasing ownership of digital devices is prompting Nigerians to explore new modes of content consumption. They want freedom and flexibility and this is manifested in the popularity of digital media and online content. However, poor connectivity and high data costs are

hampering their viewing choices, specifically when it comes to streaming and on-demand videos. This report explores in detail the TV/video viewing behavior of Nigerians as they slowly shift from traditional media to digital devices for their entertainment needs.

Tablet

Internet at home

Smart TV

15% 2%83%

Nigerians do not want to adhere to a specific device or schedule, and seek the freedom and flexibility to choose what they watch, when they watch it, and on which device.

This behavior is predominant among younger Nigerians. 67 percent of Nigerians aged 18–24 want to watch TV and video content across all devices, while 57 percent want the ability to watch TV/video content at their leisure (Figure 2). This is made possible due to the high ownership of smartphones compared to televisions or PCs (desktops/laptops), as shown in Figure 1a.

High smartphone ownership and a lack of availability of fixed broadband has resulted in mobile broadband being the most common way to connect to the internet. 83 percent of the Nigerian consumers rely solely on it (Figure 1b).


Figure 1a: Device ownership and connectivity

Figure 1b: Mobile broadband is the preferred way to connect

Figure 2: Percentage of consumers who want freedom and flexibility when watching TV and video

SHIFTING TIME AND SPACE

Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015 Base: Internet users aged 16–65 in respective countries or regions

Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015Base: TV/media users who use the internet, aged 18–69

Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015. Global figures from Ericsson ConsumerLab, TV and media study, 2014. At least weekly viewers of video/TV with broadband at home, in 23 marketsBase: TV/media users aged 18–59

Global

18–24 year old Nigerians Nigeria (overall) Global

Nigeria Kenya

US Western Europe South Africa

Only fixed broadband

Only mobile broadband

Fixed broadband and mobile broadband

I would like to have smooth and easy access to TV/video content across all my devices

I want to decide when to watch TV/video content rather

than following a schedule

Smartphone

Regular TV

Laptop/PC

0% 20% 40% 80% 100%60%

67%

57%56%51%

42%

53%

FREEDOM TO WATCHYounger Nigerians want to choose what, when and how they watch video

In bed before falling asleep

At friends’ or relatives’ homes

At home during the evening

Out and about in the city/town/village

At home during middle of the day

At workplace or in school

While commuting or traveling

At home in the morning after getting up

In bed before getting up

Only one third of the total time spent watching TV/video is on television screens. The majority of time is spent watching video on other devices, such as laptops, smartphones and tablets. Figure 3 shows that around 50 percent of the total time spent consuming video is on smartphones and laptops. This implies that content consumption is no longer tied to a specific access technology, such as the traditional TV screen.

This change is primarily driven by a new consumer attitude: they want to choose when they watch TV and video content, rather than following a set schedule.

Figure 4 indicates that Nigerians watch content throughout the day, highlighting the importance of enabling them to consume video whenever and wherever. Figure 4 shows that most content consumption happens at home in the evening, with 85 percent of consumers watching TV and video at this time. The second most popular time to watch is in bed, before falling asleep (73 percent). Most of this viewing happens on personal devices.


Figure 3: Share of time spent daily on devices watching TV and video

Figure 4: TV and video viewing habits across all devices - weekly

Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015 Base: TV/media users who use respective devices, aged 18–69

Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015. Global figures from Ericsson ConsumerLab, TV and media study, 2014. At least weekly viewers of video/TV with broadband at home, in 23 markets Base: TV/media users aged 18–59

TV

Nigeria

Laptop/PC

Global

Smartphone Tablet

Consumers across all age groups

36%

13%

73%

40%

85%

20%

59%

35%

26%

54%

43%

51%

30%

85%

12%

46%

19%

16%

38%

19%

26%

25%

85%Nigerians who watch video at home in the evenings

Content consumption in Nigeria is driven by the need for information, entertainment and education. As seen in this report, there is a difference in content preference across demographics. Figure 5 shows that when it comes to overall content consumption, including both online and linear TV, Nigerians across all age groups favor watching news and music videos.

While men prefer to watch live TV and video, such as sports (69 percent), 80 percent of women prefer content in the local language, as well as soap operas. There is high preference for international content across all age groups, with an emphasis on newly released international movies in English. Younger Nigerians and women like to stay updated with the latest trends around the world.


DIVERSE CONTENT CHOICES

Figure 5: Preferred content types across age groups and gender

Even for local news, if something happens, you’ll get the information from the international channels first.”

Female, 25–40 years old

Female All Males

Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015, qualitative study

Males, older ageFemales, older age

> Nigerian

> International

> Nigerian

> International

> 18–29 years > Local - Africa Independent Television (AIT), Nigerian Television

Authority (NTA)

> International

> Soccer

SOAP OPERAS FASHION MOVIES MUSIC COMEDY ANIMATIONS NEWS SPORTS

PREFERRED CONTENT CHOICESNews and music videos are preferred across all age groups

Across all devices, 70 percent of Nigerians watch short videos and 76 percent of smartphone users watch them on their phones.


Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015. Global figures from Ericsson ConsumerLab, TV and media study 2014. At least weekly viewers of video/TV with broadband at home, in 23 markets Base: TV/media users on the internet, aged 18–59

In an instant you can get online, download apps and get your information there.”

Female, 18–29 years oldFigure 6: Device preference for content types

Figure 7: Multi-tasking behavior – weekly

80%

100%

60%

40%

20%

0%

Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015Base: TV/media users on the internet and on respective devices, aged 18–69

Sports DocumentariesNews TV series (at an

added cost)

Short videos

Music videos

Local language movies or TV series

International movies or TV series

Live sports

Live events (not sports)

TV

Global

Smartphone

Nigeria

Laptop/PC Tablet

Multi-taskingNigerians multi-task while watching content online (Figure 7). The most common activity is searching online to discover more about the content they are viewing (56 percent).

This is followed by reading emails (50 percent). Compared to multi-tasking globally, Nigerian consumers show very similar patterns.

Read email while watching TV/video

content

Browse the internet to find out about the content

currently watching

Discuss online the TV/video content

currently watching

Watch two or more programs, live events or shows at the same time

57%

45%

30%26%

50%56%

35%

27%

Global

Nigeria Kenya

US Western Europe South Africa


WATCH ON DEMANDEven though Nigerians are receptive to watching content online, they do not have high satisfaction levels with the experience. Only 36 percent of consumers are satisfied with finding the content of their choice online, while the speed of downloading and streaming issues also plays a large part in user satisfaction, at 32 percent and 30 percent respectively (Figure 8).

This could explain why the percentage of Nigerians who watch on-demand videos on the internet is very low, at only 16 percent. The global average is currently 38 percent (Figure 9).

Once you download video content, you can watch it anytime. When you’re streaming something, anything can happen and once your connection cuts off, you have to go back to the beginning.”


Figure 8: Satisfaction with content available online

Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015Base: TV/media users over internet, aged 18–69

Source: Ericsson ConsumerLab, Analytical Platform, 2014 Base: Internet users aged 16–65

Figure 9: Watching video on the internet – weekly

Content according to viewing habits

Speed of downloading content

Speed of streaming content

36% 32% 30%

Watch paid video

Watch on-demand video

Watch live video

0% 10% 40%30%20%

16%Percentage of Nigerians who watch on-demand videos on the internet


STREAMING IS YET TO TAKE OFFWith only 27 percent of Nigerian consumers streaming video, the country is yet to catch up with the global average for streaming (76 percent), as displayed in Figure 10.

As Figure 11 shows, streaming issues and download speeds are factors that affect satisfaction levels, alongside the availability of flexible data plans.

27 percent of Nigerians cite streaming issues as a key factor that influences their satisfaction when watching TV or video over the internet. 16 percent say the flexibility of their data plan is a major factor, and 15 percent state the download speed (Figure 11).

Streaming depends on the network service. At times it breaks, while other times it is smooth.”

Male, 29–40 years old

Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015. Global figures from Ericsson ConsumerLab, TV and Media study, 2014, at least weekly viewers of video/TV with broadband at home, in 23 markets Base: Viewers of TV and media, aged 18–69

Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015 Base: TV/media user on the internet, aged 18–69

Figure 10: The preferences of Nigerian consumers when watching video

Figure 11: Factors influencing satisfaction with watching TV/video over the internet

Watching Preferred Global average (watching)

Watching YouTube without buffering issues and streaming video or TV content at reduced cost is a plus. These issues prevent me from using YouTube.”


Streamed videos Downloaded videos

27%

47%

29%

42%

76%

53%

Streaming issues

Video content

Flexibility of data plan

Availability of choice and variety of content

Speed of downloading

Getting content according to viewing habits

Ease of accessing preferred content

Watching without disruptions

Availability of free content through alternative means

27%

8%

16%

7%

15%

5%

12%

3%

8%

42%Nigerian consumers who prefer to watch downloaded videos


LIMITED CHOICES

Figure 12: Share of monthly spending on selected items

Out of regular TV viewers in Nigeria, only 37 percent are satisfied with the choice and variety of available content. They prefer to choose and pay for the channels that they want. Current pay TV services offer limited customization capabilities.

Consumers feel that good-quality content on the internet is expensive. They have a low preference for paying for content separately, but might be inclined to pay for high-quality content in a bundle.

Global TV and media research has shown a decline in file sharing and illegal streaming services when easy-to-use and reasonably priced legal VOD services are available.

Analysis of monthly spending (Figure 12) shows that TV and media services, including cable and satellite

TV subscriptions, account for 27 percent of the average expenditure. Pirated media and content accounts for 16 percent of the total monthly expenditure, of which 65 percent is spent on CDs and DVDs.

The lack of fast and reliable connectivity, and also of good-quality content, as well as restrictive data charges, are major factors that drive piracy.

Subscription is preferredConsumers in Nigeria prefer to pay once and choose their content. Monthly subscriptions are the most favored option, more so than globally. 58 percent of TV and media users in Nigeria would like to pay a fixed monthly fee for on-demand TV content, compared to 44 percent globally.

I go with paid content, as the quality is always superb. With the free ones you’re sure to get low quality.”


Source: Ericsson ConsumerLab TV and media in Nigeria 2015 Base: TV/media users aged 18–69

Voice calls

Satellite TV

Pirated content

Other non-genuine sources

Mobile internet

Fixed broadband and Wi-Fi

Theater or outdoor movies

Non-genuineinternet sources

Sources like CDs/DVDs

Cable TV

16%Monthly spending on pirated content is almost equal to spending on internet connectivity

16%

14%

33%

13%

20%

6%

21%

7%

5%

65%

During this research, two new TV and video service concepts were reviewed: IPTV Triple Play and M-VOD.

IPTV Triple Play allows access to multiple services over a single connection, providing on-demand content on TV, an internet connection and an internet-based telephone. IPTV Triple Play has limited linear TV watching capability and some free-to-air channels.

M-VOD includes the ability to watch high definition VOD on mobile devices.

Consumers perceive IPTV Triple Play and M-VOD as similar on most parameters. IPTV Triple Play is considered unique as it offers a high-speed internet connection along with on-demand TV and telephone services.

Figure 13 shows that over half of respondents feel that M-VOD and IPTV are attractive concepts and are likely to subscribe.

As Figure 14 shows, 72 percent of Nigerians believe that mobile operators should provide M-VOD services, while mobile service providers and DTH operators share almost equal preference for IPTV.


new modes of delivery

Figure 13: M-VOD vs. IPTV Triple Play Figure 14: Ideal service providers for IPTV and M-VOD

IPTV Triple Play IPTV Triple PlayM-VOD M-VOD

Everyone would love to have M-VOD because you can use it anywhere, anytime.”


I like that a Wi-Fi connection would mean you could use IPTV on your PC and other devices.”


Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015Base: TV/media users aged 18–69

Source: Ericsson ConsumerLab, TV and media in Nigeria, 2015Base: TV/media users aged 18–69

Consideration Internet companies

Likeliness to subscribe

TV/video content providers

AttractivenessCable/DTH operators

Usefulness Mobile operators

Willingness to try

Smartphone/tablet manufacturers

70% 54%

67% 53%

57% 49%

56% 46%

53% 28%

67% 31%

Uniqueness Others50% 4%

44% 4%

65% 72%

57% 53%

55% 47%

52% 20%

72%Nearly three-quarters of Nigerians believe that mobile operators should provide M-VOD services

GFSA-15000146 UEN © Ericsson AB 2015

EricssonSE-126 25 Stockholm, Sweden Telephone +46 10 719 0000 www.ericsson.com

The content of this document is subject to revision withoutnotice due to continued progress in methodology, design andmanufacturing. Ericsson shall have no liability for any error ordamage of any kind resulting from the use of this document.

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tv and media nigeria 2015...tv and media in nigeria consumerlab how changing consumer needs are...

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