AirPods automatic output switching
I just purchased AirPods a couple weeks ago and while they have worked perfectly for the most part, I'm having some difficulty switching between my devices.
Based on the keynote video for the AirPods, I was led to believe that their output would change based on what device you were currently using (i.e. if you were listening to music on your phone and then you started watching a video on your laptop, the music would pause and you would hear the video through the AirPods). However, in order to use the AirPods on my laptop I have to open bluetooth settings and connect them manually, and vice versa when I want to use them with my iPhone again.
I am signed in on iCloud, have handoff turned on, and have the latest operating systems installed on both my laptop and phone, so is there something else I'm forgetting? Or did I simply misunderstand the features advertised in the video?
The laptop is a mid-2014 MBP w/ retina display 13" and the phone is an iPhone 6s.
I've been searching around on forums for days now and I haven't been able to find a definitive answer so any help would be much appreciated. I apologize for the lengthy post.
iPhone 6s, iOS 10.2, AirPods