Ericsson (NASDAQ:ERIC) announced the launch of its first end-to-end subscription video on demand (SVOD) content service, NuVu. The service will be marketed in close collaboration with service providers.
The service features access to some 3,000 local and international TV and film titles for a small monthly fee. Users will be able to download content directly to their smartphones or tablets at no additional data cost during off-peak network times, and access the content offline for up to 30 days after downloading.
The platform, which leverages Ericsson's over-the-top (OTT) capabilities, is designed to be integrated into the operator's customer relationship management and payment systems. A core feature of the service is the built-in ability to distribute content to consumers during off-peak periods to minimize data costs for both operator and consumer.
The service will launch initially as an Android app for smartphones, providing a personalized user interface, bookmarking and personal recommendations. Ericsson will continue to roll out the service on other platforms and operating systems.
Airtel Nigeria, with 30 million subscribers, is slated to be the first service provider to deploy NuVu. The two companies are planning to jointly launch in the first quarter of 2016.
In other Ericsson news, according to the company's annual Mobility Report, global mobile data traffic is forecast to grow ten-fold by 2021, and video is forecast to account for 70% of total mobile traffic in the same year. In many networks today, YouTube accounts for up to 70% of all video traffic, while Netflix's (NASDAQ:NFLX) share of video traffic can reach as high as 20% in markets where it is available.