tv market update - hbbtv€¦ · bbc ‘bodyguard’ audience •catch-up drives the live audience...

© 2018 IHS Markit. All Rights Reserved.

TV Market UpdatePaul Gray, Research Director

HbbTV Symposium, Berlin, November 2018


Smart TV shipment share by region, Q2 2018

• Globally, smart featuring is now present in 70% of sets shipped in Q2 2018.

• China leads in penetration at 90% Latin America is a strong second, mandates Ginga interactivity.

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90%

100%

Japan North America Western Europe Eastern Europe China Asia Pacific Latin America Middle East andAfrica

Sh

ipm

en

t S

ha

re 2017 Q2

2017 Q3

2017 Q4

2018 Q1

2018 Q2

Smart TV Penetration Trend

Source: IHS Markit © 2018 IHS Markit


4K TV shipment share by region, Q2 2018

• 60% of shipments in Western Europe are 4K resolution.

• Japan lags somewhat, due to a preference for smaller (non-4K) screen sizes.

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Japan North America Western Europe Eastern Europe China Asia Pacific Latin America Middle East andAfrica

Sh

ipm

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re 2017 Q2

2017 Q3

2017 Q4

2018 Q1

2018 Q2

4K TV Penetration Trend



Screen size trend: Q2 2018• Western Europe closing rapidly on North America and China, despite very different home sizes.

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25

30

35

40

45

50

Japan North America WesternEurope

EasternEurope

China Asia Pacific Latin America Middle Eastand Africa

World

Sc

ree

n S

ize

(In

ch

es

)

2017 Q2

2017 Q3

2017 Q4

2018 Q1

2018 Q2

Average screen size shipments (Inches)



63% of households smart TV in 2022

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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

UHD

FHD

HD

SD

UHD%

Smart %

Western Europe TV Households

Source: IHS Markit

Ho

useh

old

s (

millio

ns)

© 2018 IHS Markit


Screen size forecast

25

30

35

40

45

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55

Japan North America WesternEurope

EasternEurope

China Asia Pacific Latin America Middle Eastand Africa

Grand Total

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ree

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ize

(In

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) 2016

2017

2018

2019

2020

2021

2022

Average screen size forecast (Inches)



Content consumption


Device ownership: UHD-positive consumers

• Surprising that Smart TV is not 100% - as all 4K TVs have Smart TV functionality!

• Clearly UHD is a halo factor even for conventional subscribers.

0%

10%

20%

30%

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70%

Smart TV ConnectedDVD/BDPlayer

PS4 Xbox 360 PS3 Xbox One/One S

Chromecast Apple Tv PS4 Pro Xbox One X

Ow

ne

rsh

ip r

ep

ort

ed

UHD content is important

UHD content is not important

Devices owned by respondents stating UHD Content important



Smart TV usage: BBC iPlayer consumption trend

• PC and mobile are gateways to increased TV screen* on-demand viewing.

• Consumers use mobile devices to try new services, transferring viewing to the TV screen for intensive consumption.

> Out-of-home usage does not compete with TV, but a new audience opportunity.

*TV screen viewing by smart TV, streaming box or games console.

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7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7

2012 2013 2014 2015 2016 2017 2018

Mil

lio

n r

eq

ue

sts

TV

PC

Mobile

BBC iPlayer TV content playbacks by device type: rolling year



120 170 220 270

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

Big

5A

ve

rag

eU

KF

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pain

Linear

PVR time-shifted

Pay TV VoD

Online long-form

Online short-form

Cross-Platform viewing time by country - 2017

Notes: Figures base set to 120 minutes for illustration

Source: IHS Markit. Reference BARB, Mediametrie, AGF, Auditel, Kantar © 2018 IHS Markit

Time spent (mins/person/day)

• Viewing shifting to on-demand, on many devices, in and out of home.

• Daily viewing time in the EU 5 relatively stable for past six years.

• Linear viewing time declined across all five.

• PVR time-shifted viewing plateau in all market

> except UK: second year of decline.

• Limited evidence of cord-cutting in Europe

• Online share of viewing time increased, average:

> + 10 minutes /person/day of online short-form content,

> + 8 minutes long-form content.

• TV providers need to be innovative to retain customers, audience shares and revenues.

Source: IHS Markit annual Cross-Platform Viewing Time report

TV viewing trends


BBC ‘Bodyguard’ audience

• Catch-up drives the live audience

• Viewers recruited via catch-up (iPlayer): joined the live audience later in series.

• On-demand driving linear viewing

• 35 million downloads of the Bodyguard on iPlayer. Box set viewing afterwards.

• Biggest total audience since 2002!

• HbbTV key technology for audience development.

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1 3 5 6

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n v

iew

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Catch-up Live

‘Bodyguard' audience; Sunday episodes

Source: IHS Markit, BARB © 2018 IHS Markit


UK & Germany: Consumer Behaviours

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• Low pricing, original/exclusive content and wide distribution of OTT services have resulted in rapid uptake, consumers taking multiple subscriptions.

• Consumers increasingly go first to OTT video providers for content.

> Figures even more alarming by age group, nearly 90% of 17-24 year olds in Germany and 66% in the UK turn to YouTube and Netflix first.

• Pay TV operators must continue to drive value amongst subscribers to retain subscriptions, revenues and viewing time.

• Households with an existing pay TV subscription more likely to have an OTT subscription.

> Overlap between Sky TV customers with Netflix doubles for 17-24 year olds compared to the average across all age groups.

• OTT video subscribers also more likely to engage with their pay TV service and regularly use additional pay TV features such as VoD and multiscreen.

Sky TV

YouTube

YouTube

Amazon

iPlayer

Netflix

Virgin TV

Sky De

Netflix

KD

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

UK

Germany

UK & Germany: First choice of video service for content

Notes: n=4,802 nationally representative internet users, survey conducted April 2018. Q. 31. On an average day, which of the

following devices and services is your first choice when looking for something to watch?


% of respondents

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UK & Germany: Devices attached to Primary TV Screen


% r

es

po

nd

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ts

Source: Connected Devices & Media Consumption, Q1 2018. N=4,802 nationally representative internet users.

tv market update - hbbtv€¦ · bbc ‘bodyguard’ audience •catch-up drives the live audience...

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