entertainment trends research kurt scherf vice president, principal analyst
TRANSCRIPT
Entertainment Trends Research
Kurt Scherf
Vice President, Principal Analyst
Slide 2
AttributionAuthor: Kurt ScherfExecutive Editor: Brett SappingtonPublished by Parks Associates© February 2009 Parks AssociatesDallas, Texas 75230
All rights reserved. No part of this report may be reproduced, in any form or by any means, without permission in writing from the publisher.
Printed in the United States of America
DisclaimerParks Associates has made every reasonable effort to ensure that all information in this
report is correct. We assume no responsibility for any inadvertent errors.
Analyst: KS 2/4/09Exec Edit: BLS 2/4/09BD: RS 2/4/09
Attribution & Disclaimer
Slide 3
Slide Deck Outline
Slides 4-6: TV 2.0: Study Goals and Methodology
Slides 7-18: Baseline Numbers: Entertainment Users
Slides 19-28: Changes in Video Behavior
Slides 29-43: Analysis of Changes in Video Behavior
Slides 44-49: Consumer Interest in VoD Enhancements
Slides 50-54: Consumer Interest in BD-Live Features
Slide 4
TV 2.0: Study Goals and Methodology
Slide 5
TV 2.0: The Consumer Perspective Survey Methodology
• TV 2.0: The Consumer Perspective survey fielded in July 2008 to a total of 2,729 heads-of-household in the United States and 1,161 in Canada.
• Respondents were from a panel recruited by a third-party vendor and interviewed via the Internet.
• All qualified respondents had equal or greater input in household decision making, are over age 18, and have broadband access at home.
• The demographic composition of the U.S. sample is based upon Parks Associates’ National Technology Scan and matches the demographics of U.S. households with broadband service.
• The base sample of 2,729 respondents (U.S.) and 1,161 (Canada) has a
+/- 2% and +/- 3% margin of variance, respectively, at a 95% confidence level.
Slide 6
TV 2.0: The Consumer PerspectiveQuestionnaire Overview
• Section 200: Household Services
• Section 300: Internet Services
• Section 400: Product Ownership
• Section 500: Entertainment Habits
• Section 600: Television Services
• Section 700: New TV Features
Slide 7
Baseline Numbers: Entertainment Users
Slide 8
Video Entertainment Habits
Video Viewing Habits (Q3/08)"How many times per month do you complete the following activities?"
(Among broadband HHs surveyed, n=2,729, +2%)
14%
18%
49%
38%
43%
2%
2%
3%
12%
9%
9%
7%
0% 10% 20% 30% 40% 50% 60% 70%
Watch rented DVD televisionseries
Watch purchased DVDtelevision series
Watch movies at atheatre/cinema
Watch Rented DVD movies
Watch Purchased DVDmovies
% Performing Activity at Least Monthly
1-4 times/month
5-8 times/month
9+ times/month
Source: TV 2.0: The Consumer PerspectiveSample base: 2,729 broadband HHs in the U.S., ±2%© 2008 Parks Associates:
Surprisingly, respondents with children at home go to the cinema more than those without children. Two factors may explain why.
1) Senior adults (who do not typically have children at home) go to the cinema less frequently than their younger peers.
2) A significant number of respondents will have children old enough to temporarily care for themselves and allow the parents to go to the cinema.
Surprisingly, respondents with children at home go to the cinema more than those without children. Two factors may explain why.
1) Senior adults (who do not typically have children at home) go to the cinema less frequently than their younger peers.
2) A significant number of respondents will have children old enough to temporarily care for themselves and allow the parents to go to the cinema.
Slide 9
Establishing a Baseline: Premium TV Subscribers
Premium Video Service (Q3/08) "Which of the following do you have with your TV service?"
(Among BB HHs subscribing to video service, n=2,443, +2%)
8%
17%
25%
37%
39%
0% 10% 20% 30% 40% 50%
Additional packages ofspecified cultural
programming
Additional package ofsports channels
Additional package ofother premiumprogramming
High-definition TVchannels
Premium channels
% Subscribing to Premium Video ServiceSource: TV 2.0: The Consumer PerspectiveSample base: 2,729 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
The adoption of premium services generally correlates with income; i.e., those with higher incomes are more likely to have these services than those with lower incomes.
The adoption of premium services generally correlates with income; i.e., those with higher incomes are more likely to have these services than those with lower incomes.
Slide 10
Establishing a Baseline: TV and Movie Rental Sources
Consumers renting DVDs from retail rental stores may soon be a minority thanks to the growing popularity of alternatives. Respondents age 25-34 are more likely to use movies-by-mail services than those in other age groups.
Consumers renting DVDs from retail rental stores may soon be a minority thanks to the growing popularity of alternatives. Respondents age 25-34 are more likely to use movies-by-mail services than those in other age groups.
TV & Movie Rental Sources (Q3/08)"How does your HH get rented movies or television series on DVD?"
(Among BB HHs renting movies/TV programs, n=1,648, ±2%)
12%
14%
27%
58%
0% 10% 20% 30% 40% 50% 60% 70% 80%
A Kiosk at a retail store
Blockbuster Total Accesssubscription
Netflix subscription
Rental stores (Blockbuster)
% of Respondents
Source: TV 2.0: The Consumer PerspectiveSample base: 2,729 broadband HHs in the U.S., ±2%© 2008 Parks Associates:
Slide 11
Netflix and Blockbuster Subscribers** Blockbuster’s sub count is an estimate
Millions of Subscribers:Netflix and Blockbuster Online Rental Services
(Millions of Subscribers)
0
5
10
15
Su
bs
cri
be
rs (
#M
)
Blockbuster (#M) 0.00 0.00 0.00 0.750 1.20 1.50 3.10 3.20
Netflix (#M) 0.456 0.857 1.49 2.61 4.18 5.66 7.48 9.39
2001 2002 2003 2004 2005 2006 2007 2008
Sources : Company financial reports
Slide 12
Online Video Trends
Nearly one-half of respondents age 18-24 download full-length movies from the Internet.
Conversely, only 5% of respondents age 55+ have ever done so.
Nearly one-half of respondents age 18-24 download full-length movies from the Internet.
Conversely, only 5% of respondents age 55+ have ever done so.
Monthly Broadband Users of Premium Internet Video(U.S. Adult Home Broadband Users)
15.1
2.20.745 0.465
26.6
3.8
1.3 0.816
0
10
20
30
Watch TV Shows (#M) Pay for TV ShowDownloads (#M)
Rent Movies (#M) Download Movies (#M)
Nu
mb
er
of
U.S
. Ad
ult
s (
#M
)
20072008
Source : TV 2.0: The Consumer PerspectiveSample base: 2,729 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
Slide 13
Expenditures for Online Video
Expenditure on Online Video (Q3/08)"How much money do you spend each month (on average)
for the following Internet services?"(Among BB HHs engaging in specified activities)
16%
22%
36%
$22
$17$15
0%
10%
20%
30%
40%
50%
Streaming/downloadingmovies
(n=857, ±4%)
Streaming/downloadingTV shows
(n=1,061, ±3%)
Streaming/downloadingother video content
(n=2,437, ±2%)
% P
ayin
g f
or
Vid
eo C
on
ten
t
$-
$5
$10
$15
$20
$25
$30
$35
$40
Av
g. M
on
thly
Ex
pe
nd
itu
re a
mo
ng
Sp
en
de
rs
Source: TV 2.0: The Consumer PerspectiveSample base: 2,729 broadband HHs in the U.S., ±2%© 2008 Parks Associates:
Regardless of their age, a substantial portion of respondents do not pay to download/ stream movies. Those age 25-34 are the most likely to pay while those age 55+ are the least likely to pay.
Regardless of their age, a substantial portion of respondents do not pay to download/ stream movies. Those age 25-34 are the most likely to pay while those age 55+ are the least likely to pay.
Slide 14
Where is Online Video Being Viewed?
Devices Used for Watching Internet Video (Q3/08)"How do you watch Internet video? On a..."
(Among BB HHs downloading/streaming online video content, n= 2,454, ±2%)
5%
11%
12%
13%
31%
65%
0% 20% 40% 60% 80%
Portable multimediaplayer
Desktop PC at work
Laptop/notebook whileaway from home & work
TV
Home laptop computer
Home desktop computer
% Watching Online Video Content on...Source : TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S., ±2%© 2008 Parks Associates:
There exists a direct correlation between age and computer/TV/PMP viewing habits. Younger consumers are much more likely to view content on a PMP or TV than are older consumers.
There exists a direct correlation between age and computer/TV/PMP viewing habits. Younger consumers are much more likely to view content on a PMP or TV than are older consumers.
Slide 15
How Interested are Consumers in “Over-the-Top” Set-top Boxes?
Appeal of Video-on-Demand Devices (Q3/08)"Products such as the Apple TV and VUDU provide a video-on-demand experience...
How appealing is this type of product on a 1-7 scale?" (Among broadband HHs surveyed, n=2,729, +2%)
Not appealing (Rating of 1-2),
44%
Neutral (Rating of 3-5), 42%
Very appealing (Rating of 6-7),
15%
Source: TV 2.0: The Consumer PerspectiveSample base: 2,729 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
Few consumers find over-the-top, VoD devices appealing. However among those planning to subscribe to a pay-TV service, nearly two-thirds rate the idea a 5+ (i.e., at least somewhat appealing). Such devices will find a market opportunity as familiarity spreads.
Few consumers find over-the-top, VoD devices appealing. However among those planning to subscribe to a pay-TV service, nearly two-thirds rate the idea a 5+ (i.e., at least somewhat appealing). Such devices will find a market opportunity as familiarity spreads.
Slide 16
Willingness to Spend on an “OTT” STB
Interest in Video-on-Demand Device (Q3/08)"Would you be interested in an alternative video-on-demand
device at a retail cost of… ?"(Among broadband HHs surveyed, n=2,729, +2%)
11%13%
29%
18%
$1,741
$1,626
$1,517
$1,583
0%
5%
10%
15%
20%
25%
30%
35%
$250 $200 $150 $100
% o
f B
B H
Hs
Inte
res
ted
in P
urc
ha
sin
g
a V
oD
de
vic
e b
y C
ho
os
ing
"Y
ES
"
$1,400
$1,450
$1,500
$1,550
$1,600
$1,650
$1,700
$1,750
$1,800
Imp
lied
Re
ve
nu
e A
mo
un
t (U
S$
M)
Source: TV 2.0: The Consumer PerspectiveSample base: 2,729 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
Factoring price points with interest levels suggests that OTT VoD devices will garner the most revenue if they are priced at $100 or less.
Today, demand is concentrated among consumers age 18-34.
Factoring price points with interest levels suggests that OTT VoD devices will garner the most revenue if they are priced at $100 or less.
Today, demand is concentrated among consumers age 18-34.
Slide 17
Important Features for an “OTT” STB
Important Features for VoD Box (Q3/08) "What would be the TWO MOST IMPORTANT FEATURES of
an alternative VoD box?" (Among broadband HHs surveyed, n=2,729, +2%)
42%
3%
5%
6%
6%
9%
9%
12%
12%
14%
35%
0% 20% 40% 60% 80%
No features would increase my interest
Ability to watch UGC video
Ability to listen to music stored on PCs
Ability to view photos stored on PCs
Offering adult-oriented content
A larger section of HD primetime TV offerings
Ability to watch TV shows available online
Ability to purchase a movieon the day it was released on DVD
The larger selection of high-def. movies
Ability to rent a movieon the day it was released on DVD
Ability to watch a movie on the dayit was released in the theaters
% Considering Features Important
Source: TV 2.0: The Consumer PerspectiveSample base: 2,729 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
Early release of movie titles will clearly be the strongest driver for OTT VoD device adoption. Predictably, early release is particularly important to respondents with children in the home. It is also relatively important to consumers age 18-34.
Early release of movie titles will clearly be the strongest driver for OTT VoD device adoption. Predictably, early release is particularly important to respondents with children in the home. It is also relatively important to consumers age 18-34.
Slide 18
What are Consumers Willing to Pay to Get Content at an “OTT” STB?
Consumers are willing to pay a premium, on average, in order to see films sooner. However, many respondents reported a willingness to pay exorbitant amounts (>$100). These respondents must be assumed to be either outliers or commercial pirates hoping to profit from early release of the film. Once they are removed, average amounts remain at a premium, albeit a smaller one.
Consumers are willing to pay a premium, on average, in order to see films sooner. However, many respondents reported a willingness to pay exorbitant amounts (>$100). These respondents must be assumed to be either outliers or commercial pirates hoping to profit from early release of the film. Once they are removed, average amounts remain at a premium, albeit a smaller one.
Willingness to Pay for Movie Features (Q3/07) "The movie options that you selected may cost more than a typical movie
experience. What would you be willing to pay for the following movie features?" (Among BB HHs Selecting Specified Feature)
$21
$30
$30
$9
$15
$16
$- $10 $20 $30 $40
Ability to rent a movie thesame it came out on DVD
(n=391, ±5%)
Ability to watch a moviethe same day it came out
in the theater(n=958, ±3%)
Ability to purchase amovie the same day it
came out on DVD(n=315, ±5%)
Average Amount Willing to Pay
Avg. Cost Excluding those responding above $100
Avg. Cost among all Respondents
Source: TV 2.0: The Consumer PerspectiveSample base: 2,729 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
Slide 19
Changes in Video Behavior
Slide 20
Notes on Changes in Video Behavior
• Economic factors are dampening cinema attendance.
– Respondents with an income under $100k are more likely than those with higher incomes to report that their cinema attendance has dropped in the past two years.
• Movie downloading is popular among young broadband users for a variety of reasons.
– Nearly one-half of respondents age 18-24 download full-length movies from the Internet.
– Those age 18-34 download nearly 4 movies per month, on average.
– Among those age 18-24, downloading & streaming movies:
• 53% do so because the movies are free
• 44% feel it is more convenient than alternatives
• 40% feel the selection online is better.
Slide 21
Summary: What Entertainment Trends are Gaining and Which are Losing Ground?
Changes in Viewing Habits: U.S. (Q3/08)"How would you characterize the frequency at which the following
activities are taking place today compared to 2 years ago?"(Among broadband HHs surveyed, n=2,729, ±2%)
35%
25%
23%
23%
29%
18%
17%
16%
10%
52%
61%
61%
56%
43%
53%
52%
52%
52%
13%
14%
21%
28%
29%
31%
32%
37%
17%
0% 20% 40% 60% 80% 100%
Watching movies at a theater/cinema
Watching rented DVD television series
Watching purchased DVD television series
Watching purchased movies
Watching rented movies
Watching primetime television shows
Watching movies on VoD
Watching subscription VoD (HBO)
Watching free VoD
% Breakdown
Decreased Stayed the Same Increased
Source : TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S., ±2%© 2008 Parks Associates:
Cinema viewing is taking the hardest hit in terms of reduced video viewing. Respondents with moderate incomes (under $100K) are more likely to report decreased viewing, presumably due to economic factors.*
Consumers age 25-34 also appear to be polarizing into high and low viewing groups. 42% said viewing was decreasing while 19% said viewing was increasing. Both figures are above the overall average.
*In the past 2 years, cinema tickets have increase $0.50 on average per the National Association of Theater Owners.
Cinema viewing is taking the hardest hit in terms of reduced video viewing. Respondents with moderate incomes (under $100K) are more likely to report decreased viewing, presumably due to economic factors.*
Consumers age 25-34 also appear to be polarizing into high and low viewing groups. 42% said viewing was decreasing while 19% said viewing was increasing. Both figures are above the overall average.
*In the past 2 years, cinema tickets have increase $0.50 on average per the National Association of Theater Owners.
Slide 22
VoD Use Notes
• VoD is very important to households with children.
– Households with 2+ children are more likely than other HHs to watch VoD, feel VoD features are important, and say their VoD use is increasing.
– Nearly 50% of respondents with 3+ children at home say they would watch more VoD if the titles were available on the same day as the theatrical release.
– Early release of VoD titles is particularly likely to trigger rentals by respondents with 2+ children at home.
Slide 23
Changes in VoD Habits
VoD usage is increasing in general, particularly so among HHs with 2+ children. More eyeballs at home translates into more usage.
VoD usage is increasing in general, particularly so among HHs with 2+ children. More eyeballs at home translates into more usage.
Changes in Video-on-Demand Service Usage (Q3/08)"How would you characterize the frequency at which the following household activities are
taking place today compared to two years ago?"(Among digital video service subscribers, n=2,028, +2%)
24%
24%
29%
38%
40%
41%
12%
13%
8%
26%
23%
22%
0% 20% 40% 60% 80% 100%
Watching subscriptionon-demand channels
Watching pay-per-viewservices
Watching any othervideo on demand
channel
% Breakdown
Increased Stayed the Same Decreased Not applicable
Source : TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
Slide 24
Premium VoD Use is Growing:Percentage of Digital Cable Subscribers
Monthly Use of Premium VoD/PPV - MoviesU.S. Digital Cable Subscribers
(Percentage of U.S. Digital Cable Subscribers, %)
21%
28%
37%
0%
10%
20%
30%
40%
Q4 2004 Q1 2007 Q3 2008
Pe
rce
nta
ge
of
Dig
ita
l Ca
ble
Su
bs
cri
be
rs (
%)
Sources : Global Digital Living I and II; TV 2.0: The Consumer Perspective© 2008 Parks Associates
Slide 25
VoD is the Biggest Variable in Determining Customer Satisfaction
Satisfaction with Digital Cable Service (Q3/08)(Percentage of U.S. broadband respondents rating satisfaction as a 6-7 on a 7-point
scale, where "7" means "extremely satisfied", n=2,720, ±2%)
40%44%
74%
37%
0%
25%
50%
75%
100%
All Digital CableSubscribers
(n=1,292, ±3%)
Monthly VoD Users(n=644, ±4%)
Weekly VoD Users(n=238, ±6%)
Non-VoD Users(n=627, ±4%)
Pe
rce
nta
ge
of
Re
sp
on
de
nts
(%
)
Source : TV 2.0: The Consumer PerspectiveSample base: Broadband HHs, n=2,720 ±2%© 2008 Parks Associates
Slide 26
What Value Does VoD Add to TV Services?
Value of Video-on-Demand Services (Q3/08) "On a 1-7 scale... how valuable do you consider each of the following on-demand
channels as part of your TV overall service ? (Among BB HHs watching programs using specified VoD service)
38%41% 43%
0%
20%
40%
60%
On-demand movies(n=1045, ±3%)
Any other video on demandchannel
(n=1,010, ±3%)
Subscription on-demandchannels
(n=745, ±4%)
% R
atin
g V
oD
Ser
vice
Val
uab
le
(i.e
. 6-7
on
a 1
-7 s
cale
wit
h 7
= E
xtre
mel
y V
alu
able
)
Source : TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
Slide 27
Compare Satisfaction of VoD Users to Subscribers to HD Services
Satisfaction with Video Service by Service Type (Q3/08) "Please rate your satisfaction with your current television service using a 1-7 scale"
(Among HD video service subscribers with specified video service type)
45%
48%
49%
61%
62%
0%
-6%
-4%
-3%
-1%
-20% 0% 20% 40% 60% 80%
Digital CATV service(n=616, ±4%)
Basic cable service only(n=23, ±20%)
All HD subscribers(n=910, ±3%)
Satellite TV service(n=280, ±6%)
IPTV service(n=37, ±16%)
% of HD Subscribers
Low satisfaction(Ratings of 1s & 2s)
High satisfactionlevel (Ratings of 6s& 7s)
Source: TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
74% of active VoD users are highly satisfied
74% of active VoD users are highly satisfied
Slide 28
Compare Satisfaction of VoD Users to Subscribers of Additional Video Packages
Satisfaction with Current Video Service by Premium Video Service Subscribers (Q3/08)
"Please rate your satisfaction with your current television service using a 1-7 scale.(Among BB HHs subscribing to specified premium video service)
47%
49%
50%
51%
51%
-5%
-4%
-5%
-4%
-4%
-10% 10% 30% 50% 70%
Premium channels (n=950, ±3%)
High def. TV service (n=910, ±3%)
Additional package of sports(n=418, ±4%)
Additional packages of otherpremium programming (n=606, ±5%)
Additional packages of specified cultural programming (n=190, ±7%)
% of Premium Video Service Subscribers
High satisfaction(Rating of 6-7)
Low satisfaction(Ratings of 1-2)
Source : TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
74% of active VoD users are highly satisfied
74% of active VoD users are highly satisfied
Slide 29
Analysis of Changes in Video Behavior
Slide 30
Notes on Video Changes Analysis, I
Parks Associates analyzed the variables that would possibly impact a reported decrease of video and entertainment habits
– The analysis examined how video and entertainment habits may be decreasing as a result of consumers trading time from established to newer entertainment habits
– The analysis first reviewed reported changes / increases among video and entertainment habits (i.e., examining whether consumers are trading time from one habit for another habit):
• Increase in watching rented movies (n=775, ±4%)
• Increase in watching purchased movies (n=575, ±4%)
• Increase in watching movies at a theater/cinema (n=343, ±5%)
• Increase in watching rented DVD television series (n=395, ±5%)
• Increase in watching purchased DVD television services (n=456, ±5%)
• Increase in watching primetime television shows (n=783, ±4%)
• Increase in watching subscription VoD (HBO) (n=480, ±4%)
• Increase in watching movies on VoD (n=481, ±4%)
• Increase in watching free VoD (n=587, ±4%)
Slide 31
Notes on Video Changes Analysis, II
Parks Associates analyzed the variables that would possibly impact a reported decrease of video and entertainment habits
– The analysis also examined how video and entertainment habits may be decreasing as a result of consumers adopting new digital consumer electronics products and using digital media services:
• Own DVR (n=1,091, ±3%)
• Own high-definition TV (n=1,400, ±3%)
• Own home theater system (n=969, ±3%)
• Own Xbox 360/PlayStation3 (n=530, ±4%)
• Own Media Center PC (n=1,568, ±2%)
• Own Blu-ray player (n=167, ±8%)
• Netflix/Blockbuster TOTAL ACCESS subscriber (n=640, ±4%)
• Watch online movies at least monthly (n=508, ±4%)
• Watch online TV at least monthly (n=640, ±4%)
• Xbox LIVE monthly user (n=108, ±9%)
Slide 32
Key Takeaways from the Analysis, I
• Seeing movies in the theater/cinema is most impacted by trade-offs with new entertainment experiences, particularly increases in the frequency of:– Movie rentals;– Primetime television viewing;– Watching movies on VoD; and– Watching free VoD.
• Buying DVD movies is most impacted by:– Increases in the frequency of primetime television viewing; and– Having a subscription to Netflix or Blockbuster TOTAL ACCESS; and
• Renting DVD movies is most impacted by:– Increases in the frequency of primetime television viewing; and
• Digital products are not the problem.– Increases in video consumption across the board are more likely with the
introduction of Xbox 360s and PlayStation 3’s.– Among digital products, DVR/TiVo is the only device that shows a statistically
significant, negative impact on the frequency of seeing movies in the theater.
Slide 33
Key Takeaways from the Analysis, II
• Online video’s impact is negligible.– We can find no evidence to support the theory that online video is causing churn
from traditional entertainment activities. It appears to be more of a complement for consumers already heavily engaged in video habits.
• Age is a strong determinant in both increases and decreases in activities.– As could be expected, older age groups start to move entertainment inside the
home, reflecting decreases in watching movies in the theater.
– VoD becomes an important component of entertainment habits for consumers in the 24-35 age range, reflecting marriage and the starting of families.
Slide 34
Video/Entertainment Habits on the Decrease:Watching Movies in the Theater/Cinema
Group of Consumers Percentage Noting Decrease
All respondents (n=2,720, ±2%) 35%Increase in watching rented movies (n=775, ±4%) 39%Increase in watching purchased movies (n=575, ±4%) 33%Increase in watching movies at a theater/cinema (n=343, ±5%) n/aIncrease in watching rented DVD television series (n=395, ±5%) 38%Increase in watching purchased DVD television services (n=456, ±5%) 34%Increase in watching primetime television shows (n=783, ±4%) 44%Increase in watching subscription VoD (HBO) (n=480, ±4%) 38%Increase in watching movies on VoD (n=481, ±4%) 39%Increase in watching free VoD (n=587, ±4%) 41%
Group of Consumers Percentage Noting Decrease
All respondents (n=2,720, ±2%) 35%Own DVR (n=1,091, ±3%) 36%Own high-definition TV (n=1,400, ±3%) 35%Own home theater system (n=969, ±3%) 33%Own Xbox 360/PlayStation3 (n=530, ±4%) 34%Own Media Center PC (n=1,568, ±2%) 34%Own Blu-ray player (n=167, ±8%) 20%Netflix/Blockbuster TOTAL ACCESS subscriber (n=640, ±4%) 35%Watch online movies at least monthly (n=508, ±4%) 32%Watch online TV at least monthly (n=640, ±4%) 33%Xbox LIVE monthly user (n=108, ±9%) 27%
By Ownership of Digital Products and Use of Digital Services
Watching Movies in the Cinema/Theater
Source : TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S., ±2%
By Increases in Other Entertainment Activities
Decreases in Entertainment Activities:
© 2008 Parks Associates
Variables that came out as statistically significant in generating a decrease in watching movies in the theater/cinema are:
• Increase in watching rented movies (n=775, ±4%)
• Increase in watching primetime television shows (n=783, ±4%)
• Increase in watching movies on VoD (n=481, ±4%)
• Increase in watching free VoD (n=587, ±4%)
Ownership of digital products and use of digital media services do not provide statistically significant variances.
Age is a significant factor in the the frequency of watching movies in the theater. Younger consumers (age 18-24) are more likely to report an increase, whereas consumers age 25-34 are more likely to report a decrease.
Variables that came out as statistically significant in generating a decrease in watching movies in the theater/cinema are:
• Increase in watching rented movies (n=775, ±4%)
• Increase in watching primetime television shows (n=783, ±4%)
• Increase in watching movies on VoD (n=481, ±4%)
• Increase in watching free VoD (n=587, ±4%)
Ownership of digital products and use of digital media services do not provide statistically significant variances.
Age is a significant factor in the the frequency of watching movies in the theater. Younger consumers (age 18-24) are more likely to report an increase, whereas consumers age 25-34 are more likely to report a decrease.
Slide 35
Video/Entertainment Habits on the Decrease:Watching Rented DVD Television Series
Variables that came out as statistically significant in generating a decrease in watching rented DVD television series are:
• Ownership of a Media Center PC
Variables that came out as statistically significant in generating a decrease in watching rented DVD television series are:
• Ownership of a Media Center PC
Group of Consumers Percentage Noting Decrease
All respondents (n=2,720, ±2%) 25%Increase in watching rented movies (n=775, ±4%) 14%Increase in watching purchased movies (n=575, ±4%) 19%Increase in watching movies at a theater/cinema (n=343, ±5%) 18%Increase in watching rented DVD television series (n=395, ±5%) n/aIncrease in watching purchased DVD television services (n=456, ±5%) 13%Increase in watching primetime television shows (n=783, ±4%) 25%Increase in watching subscription VoD (HBO) (n=480, ±4%) 22%Increase in watching movies on VoD (n=481, ±4%) 21%Increase in watching free VoD (n=587, ±4%) 25%
Group of Consumers Percentage Noting Decrease
All respondents (n=2,720, ±2%) 25%Own DVR (n=1,091, ±3%) 23%Own high-definition TV (n=1,400, ±3%) 25%Own home theater system (n=969, ±3%) 25%Own Xbox 360/PlayStation3 (n=530, ±4%) 23%Own Media Center PC (n=1,568, ±2%) 26%Own Blu-ray player (n=167, ±8%) 16%Netflix/Blockbuster TOTAL ACCESS subscriber (n=640, ±4%) 18%Watch online movies at least monthly (n=508, ±4%) 24%Watch online TV at least monthly (n=640, ±4%) 24%Xbox LIVE monthly user (n=108, ±9%) 18%
Decreases in Entertainment Activities:
© 2008 Parks Associates
By Ownership of Digital Products and Use of Digital Services
Watching Rented DVD Television Series
Source : TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S., ±2%
By Increases in Other Entertainment Activities
Slide 36
Video/Entertainment Habits on the Decrease:Watching Purchased DVD Television Series
Variables that came out as statistically significant in generating a decrease in watching purchased DVD television series are:
• Ownership of a Media Center PC (and this is a very minor increase)
The use of mail-order movie rental services (Netflix) and the use of Xbox LIVE are two variables that are statistically correlated to increases in the frequency of watching purchased DVD television series.
Variables that came out as statistically significant in generating a decrease in watching purchased DVD television series are:
• Ownership of a Media Center PC (and this is a very minor increase)
The use of mail-order movie rental services (Netflix) and the use of Xbox LIVE are two variables that are statistically correlated to increases in the frequency of watching purchased DVD television series.
Group of Consumers Percentage Noting Decrease
All respondents (n=2,720, ±2%) 23%Increase in watching rented movies (n=775, ±4%) 18%Increase in watching purchased movies (n=575, ±4%) 12%Increase in watching movies at a theater/cinema (n=343, ±5%) 16%Increase in watching rented DVD television series (n=395, ±5%) 8%Increase in watching purchased DVD television services (n=456, ±5%) n/aIncrease in watching primetime television shows (n=783, ±4%) 21%Increase in watching subscription VoD (HBO) (n=480, ±4%) 20%Increase in watching movies on VoD (n=481, ±4%) 20%Increase in watching free VoD (n=587, ±4%) 22%
Group of Consumers Percentage Noting Decrease
All respondents (n=2,720, ±2%) 23%Own DVR (n=1,091, ±3%) 22%Own high-definition TV (n=1,400, ±3%) 23%Own home theater system (n=969, ±3%) 23%Own Xbox 360/PlayStation3 (n=530, ±4%) 20%Own Media Center PC (n=1,568, ±2%) 24%Own Blu-ray player (n=167, ±8%) 15%Netflix/Blockbuster TOTAL ACCESS subscriber (n=640, ±4%) 19%Watch online movies at least monthly (n=508, ±4%) 22%Watch online TV at least monthly (n=640, ±4%) 23%Xbox LIVE monthly user (n=108, ±9%) 12%
Decreases in Entertainment Activities:
© 2008 Parks Associates
By Ownership of Digital Products and Use of Digital Services
Watching Purchased DVD Television Series
Source : TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S., ±2%
By Increases in Other Entertainment Activities
Slide 37
Video/Entertainment Habits on the Decrease:Watching Purchased Movies
Variables that came out as statistically significant in generating a decrease in watching purchased movies are:
• Consumers reporting an increase in watching primetime television shows.
• Use of movie rental services such as Netflix.
• The presence of a Media Center PC in the household.
Younger consumers (18-35) are significantly more likely to report an increase in the frequency in which they are watching purchased movies.
Variables that came out as statistically significant in generating a decrease in watching purchased movies are:
• Consumers reporting an increase in watching primetime television shows.
• Use of movie rental services such as Netflix.
• The presence of a Media Center PC in the household.
Younger consumers (18-35) are significantly more likely to report an increase in the frequency in which they are watching purchased movies.
Group of Consumers Percentage Noting Decrease
All respondents (n=2,720, ±2%) 23%Increase in watching rented movies (n=775, ±4%) 18%Increase in watching purchased movies (n=575, ±4%) n/aIncrease in watching movies at a theater/cinema (n=343, ±5%) 15%Increase in watching rented DVD television series (n=395, ±5%) 19%Increase in watching purchased DVD television services (n=456, ±5%) 11%Increase in watching primetime television shows (n=783, ±4%) 25%Increase in watching subscription VoD (HBO) (n=480, ±4%) 19%Increase in watching movies on VoD (n=481, ±4%) 20%Increase in watching free VoD (n=587, ±4%) 19%
Group of Consumers Percentage Noting Decrease
All respondents (n=2,720, ±2%) 23%Own DVR (n=1,091, ±3%) 22%Own high-definition TV (n=1,400, ±3%) 24%Own home theater system (n=969, ±3%) 22%Own Xbox 360/PlayStation3 (n=530, ±4%) 20%Own Media Center PC (n=1,568, ±2%) 24%Own Blu-ray player (n=167, ±8%) 15%Netflix/Blockbuster TOTAL ACCESS subscriber (n=640, ±4%) 25%Watch online movies at least monthly (n=508, ±4%) 19%Watch online TV at least monthly (n=640, ±4%) 22%Xbox LIVE monthly user (n=108, ±9%) 15%
Decreases in Entertainment Activities:
© 2008 Parks Associates
By Ownership of Digital Products and Use of Digital Services
Watching Purchased Movies
Source : TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S., ±2%
By Increases in Other Entertainment Activities
Slide 38
Video/Entertainment Habits on the Decrease:Watching Rented Movies
Variables that came out as statistically significant in generating a decrease in watching rented movies are:
• Consumers reporting an increase in watching primetime television shows.
• The presence of a Media Center PC in the household.
As in the case with movie purchases, the frequency with which consumers report an increase in watching rented movies is most notable among younger consumers, particularly the 18-24 (39%) and 25-34 (40%) age ranges. Importantly, 28% of the total sample reported an increase in the frequency of watching rented movies.
Variables that came out as statistically significant in generating a decrease in watching rented movies are:
• Consumers reporting an increase in watching primetime television shows.
• The presence of a Media Center PC in the household.
As in the case with movie purchases, the frequency with which consumers report an increase in watching rented movies is most notable among younger consumers, particularly the 18-24 (39%) and 25-34 (40%) age ranges. Importantly, 28% of the total sample reported an increase in the frequency of watching rented movies.
Group of Consumers Percentage Noting Decrease
All respondents (n=2,720, ±2%) 29%Increase in watching rented movies (n=775, ±4%) n/aIncrease in watching purchased movies (n=575, ±4%) 24%Increase in watching movies at a theater/cinema (n=343, ±5%) 18%Increase in watching rented DVD television series (n=395, ±5%) 11%Increase in watching purchased DVD television services (n=456, ±5%) 26%Increase in watching primetime television shows (n=783, ±4%) 32%Increase in watching subscription VoD (HBO) (n=480, ±4%) 26%Increase in watching movies on VoD (n=481, ±4%) 28%Increase in watching free VoD (n=587, ±4%) 30%
Group of Consumers Percentage Noting Decrease
All respondents (n=2,720, ±2%) 29%Own DVR (n=1,091, ±3%) 27%Own high-definition TV (n=1,400, ±3%) 28%Own home theater system (n=969, ±3%) 26%Own Xbox 360/PlayStation3 (n=530, ±4%) 25%Own Media Center PC (n=1,568, ±2%) 29%Own Blu-ray player (n=167, ±8%) 19%Netflix/Blockbuster TOTAL ACCESS subscriber (n=640, ±4%) 9%Watch online movies at least monthly (n=508, ±4%) 21%Watch online TV at least monthly (n=640, ±4%) 25%Xbox LIVE monthly user (n=108, ±9%) 23%
Decreases in Entertainment Activities:
© 2008 Parks Associates
By Ownership of Digital Products and Use of Digital Services
Watching Rented Movies
Source : TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S., ±2%
By Increases in Other Entertainment Activities
Slide 39
Video/Entertainment Habits on the Decrease:Watching Primetime Television Shows
The only variable that is statistically significant in its impact on the decrease in watching primetime television viewing is gender. Twenty percent of males indicate that they are watching less primetime television.
The only variable that is statistically significant in its impact on the decrease in watching primetime television viewing is gender. Twenty percent of males indicate that they are watching less primetime television.
Group of Consumers Percentage Noting Decrease
All respondents (n=2,720, ±2%) 18%Increase in watching rented movies (n=775, ±4%) 16%Increase in watching purchased movies (n=575, ±4%) 17%Increase in watching movies at a theater/cinema (n=343, ±5%) 17%Increase in watching rented DVD television series (n=395, ±5%) 16%Increase in watching purchased DVD television services (n=456, ±5%) 18%Increase in watching primetime television shows (n=783, ±4%) 12%Increase in watching subscription VoD (HBO) (n=480, ±4%) 16%Increase in watching movies on VoD (n=481, ±4%) 15%Increase in watching free VoD (n=587, ±4%) 15%
Group of Consumers Percentage Noting Decrease
All respondents (n=2,720, ±2%) 18%Own DVR (n=1,091, ±3%) 16%Own high-definition TV (n=1,400, ±3%) 17%Own home theater system (n=969, ±3%) 17%Own Xbox 360/PlayStation3 (n=530, ±4%) 16%Own Media Center PC (n=1,568, ±2%) 18%Own Blu-ray player (n=167, ±8%) 12%Netflix/Blockbuster TOTAL ACCESS subscriber (n=640, ±4%) 16%Watch online movies at least monthly (n=508, ±4%) 15%Watch online TV at least monthly (n=640, ±4%) 15%Xbox LIVE monthly user (n=108, ±9%) 8%
Decreases in Entertainment Activities:
© 2008 Parks Associates
By Ownership of Digital Products and Use of Digital Services
Watching Primetime Television Shows
Source : TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S., ±2%
By Increases in Other Entertainment Activities
Slide 40
Video/Entertainment Habits on the Decrease:Watching Primetime Television Shows
Even amongst the most avid online video viewers – consumers who are actually paying for online video – there is not a decrease in the frequency at which they reportedly watch primetime television. Of course, we believe that consumers are shifting their viewing from the TV to the PC, which will impact ad revenue models long-term as online viewing becomes a substitute in some respects for TV viewing.
Even amongst the most avid online video viewers – consumers who are actually paying for online video – there is not a decrease in the frequency at which they reportedly watch primetime television. Of course, we believe that consumers are shifting their viewing from the TV to the PC, which will impact ad revenue models long-term as online viewing becomes a substitute in some respects for TV viewing.
Is Internet Video Decreasing the Primetime TV Audience?
(Q3/08)"How would you characterize the frequency at which you are watching primetime
television shows compared to two years ago?"(Percentage of U.S. Home Broadband Users)
29%36%
53%46%
18% 18%
0%
25%
50%
75%
100%
All Respondents Surveyed (n=2,720, ±2%) Monthly Paying Internet Video Users (n=544,±4%)
Pe
rce
nta
ge
of
Re
sp
on
de
nts
(%
) Watching More Primetime TV (%)
Watching about the Same Primetime TV (%)
Watching Less Primetime TV (%)
Source : TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
Slide 41
Video/Entertainment Habits on the Decrease:Watching VoD Movies
Consumers’ age is a significant variable in both increases and decreases in the frequency of watching VoD movies. The youngest consumers surveyed (age 18-24) are the most likely to report a decrease.
As for increases, consumers age 25-34 are more likely than other age groups to report watching more VoD movies.
Households with digital cable are more likely than non-digital cable households to report an increase in watching VoD movies, confirming the trend that we have seen from the cable MSOs that VoD is starting to become a much more significant component of their businesses.
Consumers’ age is a significant variable in both increases and decreases in the frequency of watching VoD movies. The youngest consumers surveyed (age 18-24) are the most likely to report a decrease.
As for increases, consumers age 25-34 are more likely than other age groups to report watching more VoD movies.
Households with digital cable are more likely than non-digital cable households to report an increase in watching VoD movies, confirming the trend that we have seen from the cable MSOs that VoD is starting to become a much more significant component of their businesses.
Group of Consumers Percentage Noting Decrease
All respondents (n=2,020, ±2%) 17%Increase in watching rented movies (n=775, ±4%) 10%Increase in watching purchased movies (n=575, ±4%) 9%Increase in watching movies at a theater/cinema (n=343, ±5%) 10%Increase in watching rented DVD television series (n=395, ±5%) 7%Increase in watching purchased DVD television services (n=456, ±5%) 6%Increase in watching primetime television shows (n=783, ±4%) 11%Increase in watching subscription VoD (HBO) (n=480, ±4%) 6%Increase in watching movies on VoD (n=481, ±4%) n/aIncrease in watching free VoD (n=587, ±4%) 8%
Group of Consumers Percentage Noting Decrease
All respondents (n=2,020, ±2%) 17%Own DVR (n=1,010, ±3%) 12%Own high-definition TV (n=1,185, ±3%) 14%Own home theater system (n=832, ±3%) 12%Own Xbox 360/PlayStation3 (n=435, ±5%) 13%Own Media Center PC (n=1,223, ±3%) 13%Own Blu-ray player (n=145, ±8%) 9%Netflix/Blockbuster TOTAL ACCESS subscriber (n=491, ±4%) 13%Watch online movies at least monthly (n=380, ±5%) 14%Watch online TV at least monthly (n=479, ±4%) 14%Xbox LIVE monthly user (n=89*, ±10%) 13%
Decreases in Entertainment Activities:
© 2008 Parks Associates
By Ownership of Digital Products and Use of Digital Services
Watching VoD Movies
Source : TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S., ±2%
By Increases in Other Entertainment Activities
Slide 42
Video/Entertainment Habits on the Decrease:Watching Subscription VoD
Age is again a determinant in how the frequency of watching subscription VoD programming has changed. There are no age ranges where statistically significant evidence of a decrease can be found. However, the 25-34 age range is significant for showing an increase. On either side of this age range, both the 18-24 and the 35-44 age ranges both show slightly higher percentages of consumers who report an increase.
Age is again a determinant in how the frequency of watching subscription VoD programming has changed. There are no age ranges where statistically significant evidence of a decrease can be found. However, the 25-34 age range is significant for showing an increase. On either side of this age range, both the 18-24 and the 35-44 age ranges both show slightly higher percentages of consumers who report an increase.
Group of Consumers Percentage Noting Decrease
All respondents (n=2,020, ±2%) 16%Increase in watching rented movies (n=775, ±4%) 10%Increase in watching purchased movies (n=575, ±4%) 6%Increase in watching movies at a theater/cinema (n=343, ±5%) 8%Increase in watching rented DVD television series (n=395, ±5%) 8%Increase in watching purchased DVD television services (n=456, ±5%) 6%Increase in watching primetime television shows (n=783, ±4%) 10%Increase in watching subscription VoD (HBO) (n=480, ±4%) n/aIncrease in watching movies on VoD (n=481, ±4%) 5%Increase in watching free VoD (n=587, ±4%) 7%
Group of Consumers Percentage Noting Decrease
All respondents (n=2,020, ±2%) 16%Own DVR (n=1,010, ±3%) 12%Own high-definition TV (n=1,185, ±3%) 12%Own home theater system (n=832, ±3%) 12%Own Xbox 360/PlayStation3 (n=435, ±5%) 11%Own Media Center PC (n=1,223, ±3%) 12%Own Blu-ray player (n=145, ±8%) 6%Netflix/Blockbuster TOTAL ACCESS subscriber (n=491, ±4%) 13%Watch online movies at least monthly (n=380, ±5%) 11%Watch online TV at least monthly (n=479, ±4%) 11%Xbox LIVE monthly user (n=89*, ±10%) 9%
Decreases in Entertainment Activities:
© 2008 Parks Associates
By Ownership of Digital Products and Use of Digital Services
Watching Subscription VoD
Source : TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S., ±2%
By Increases in Other Entertainment Activities
Slide 43
Video/Entertainment Habits on the Decrease:Watching Free VoD
Among the crosstabs and analyses examined, no variables jump out as statistically significant in determining a decrease in activity. However, increases are noted for:
• Consumers age 25-34;
• Lower-income consumers; and
• Digital cable subscribers.
Among the crosstabs and analyses examined, no variables jump out as statistically significant in determining a decrease in activity. However, increases are noted for:
• Consumers age 25-34;
• Lower-income consumers; and
• Digital cable subscribers.
Group of Consumers Percentage Noting Decrease
All respondents (n=2,020, ±2%) 10%Increase in watching rented movies (n=775, ±4%) 6%Increase in watching purchased movies (n=575, ±4%) 4%Increase in watching movies at a theater/cinema (n=343, ±5%) 4%Increase in watching rented DVD television series (n=395, ±5%) 5%Increase in watching purchased DVD television services (n=456, ±5%) 4%Increase in watching primetime television shows (n=783, ±4%) 6%Increase in watching subscription VoD (HBO) (n=480, ±4%) 1%Increase in watching movies on VoD (n=481, ±4%) 1%Increase in watching free VoD (n=587, ±4%) n/a
Group of Consumers Percentage Noting Decrease
All respondents (n=2,020, ±2%) 10%Own DVR (n=1,010, ±3%) 8%Own high-definition TV (n=1,185, ±3%) 9%Own home theater system (n=832, ±3%) 8%Own Xbox 360/PlayStation3 (n=435, ±5%) 6%Own Media Center PC (n=1,223, ±3%) 8%Own Blu-ray player (n=145, ±8%) 6%Netflix/Blockbuster TOTAL ACCESS subscriber (n=491, ±4%) 8%Watch online movies at least monthly (n=380, ±5%) 8%Watch online TV at least monthly (n=479, ±4%) 8%Xbox LIVE monthly user (n=89*, ±10%) 4%
Decreases in Entertainment Activities:
© 2008 Parks Associates
By Ownership of Digital Products and Use of Digital Services
Watching Free VoD
Source : TV 2.0: The Consumer PerspectiveSample base: 2,720 broadband HHs in the U.S., ±2%
By Increases in Other Entertainment Activities
Slide 44
Consumer Interest in VoD Enhancements
Slide 45
Top VoD Enhancements
Value of New VoD Enhancements (Q3/08) "How would you rate the following enhancements of VoD movies for increasing the
likelihood that you would watch them?" (Among digital video subscribers, n=2,028, +2%)
20%
22%
23%
24%
36%
0% 10% 20% 30% 40% 50%
Ability to rent movies on the day they are available topurchase on DVD
Extended time for viewing rented videos
The movie costs at $1 less with 1-3 minutes of ads
Ability to purchase & then burn movies to a DVD
Ability to rent movies for a fee on the same date it comesout in a theater
% Rating Features Valuable (i.e. 6-7 on a 1-7 scale, with 7=Definitely Would Watch More Often)
Source: TV 2.0: The Consumer PerspectiveSample base: 2,729 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
Nearly 50% of respondents with 3+ children at home say they would watch more VoD if the titles were available on the same day as the theatrical release. This compares to just 30% of those without children at home.
Nearly 50% of respondents with 3+ children at home say they would watch more VoD if the titles were available on the same day as the theatrical release. This compares to just 30% of those without children at home.
Slide 46
Next VoD Enhancements
Value of New VoD Enhancements, cont. (Q3/08) "How would you rate the following enhancements of VoD movies for increasing the
likelihood that you would watch them?" (Among digital video subscribers, n=2,028, +2%)
15%
15%
19%
20%
0% 10% 20% 30% 40% 50%
Ability to purchase & downloadmovies to PC hard drive
Availability of extra features with movies(e.g. director's cuts)
Ability to purchase movies for viewing on TV but aDVD copy is also mailed to you
More titles in HD format
% Rating Features Valuable (i.e. 6-7 on a 1-7 scale, with 7=Definitely Would Watch More Often)
Source: TV 2.0: The Consumer PerspectiveSample base: 2,729 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
Younger respondents are generally more likely to say viewing would increase if new features were added.
Younger respondents are generally more likely to say viewing would increase if new features were added.
Slide 47
Willingness to Rent VoD Movies with Features for $4.99/$5.99
Willingness to Rent VoD Movies with Features for $4.99-$5.99 (Q3/08)
8%
12%
12%
16%
0% 10% 20% 30%
VoD movies with director'scut
VoD movies in HD format
VoD movies for anextended period of time
VoD movies available onthe same day as the DVD
release
% Renting VoD Movies with FeaturesSource: TV 2.0: The Consumer PerspectiveSample base: 2,729 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
"If a regular video-on-demand movie is available for $2.99-$3.99, would you be willing to rent... for $4.99-$5.99?"
(Among digital video subscribers, n=2,028, +2%)
Younger respondents are more willing to rent VoD movies if new features are offered.
Early release of VoD titles is particularly likely to trigger rentals by respondents with 2+ children at home.
Younger respondents are more willing to rent VoD movies if new features are offered.
Early release of VoD titles is particularly likely to trigger rentals by respondents with 2+ children at home.
Slide 48
(Among respondents saying day & date VoD releasewould increase their usage, n=939, +3%)
Willingness to Rent a Day & Date VoD Movie for $20
(Q3/08)"If a regular adult ticket price for a movie playing at a theater is $10, would you be willing to rent a VoD movie of the same kind for $20?"
Yes, 20%
No, 67%
I’m not sure, 13%
Source: TV 2.0: The Consumer PerspectiveSample base: 2,729 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
Younger respondents are more willing to purchase day & date VoD movies than older respondents.
Younger respondents are more willing to purchase day & date VoD movies than older respondents.
Willingness to Rent a Day & Date VoD Movie for $20
Slide 49
Willingness to Purchase TV Season via VoD
Willingness to Purchase TV Season via VoD (Q3/08)"If an entire season of a TV show is available for a video-on-demand download... "
(Among digital video service subscribers, n=2,028, +2%)
18%
25%
29%
0% 10% 20% 30% 40% 50%
Download the entireseason of TV shows viaVoD at the same price as
retail
Download the entireseason of TV shows via
VoD at a discount, but theshows include 5+ minutes
of ads
Download the entireseason of TV shows via
VoD at a discount, but theshows include 1-2 minutes
of ads
% Willing to purchase a TV Season on VoDSource: TV 2.0: The Consumer PerspectiveSample base: 2,729 broadband HHs in the U.S. , ±2%© 2008 Parks Associates:
Interest among lower income HHs (<$50K) does not disproportionately increase when discounted VoD titles are offered.
Interest among lower income HHs (<$50K) does not disproportionately increase when discounted VoD titles are offered.
Slide 50
Consumer Interest in BD-Live Features
Slide 51
Appeal of BD-Live Features
U.S.: Appeal of Blu-ray Player Features "Q414a. If you were purchasing a Blu-ray high definition player,
how appealing are the following features?"(Among BB HHs, n=796, +4%)
14%
17%
17%
21%
22%
26%
35%
0% 20% 40% 60% 80% 100%
Virtual 'viewing party'
Access to content on Internet
Access to personal contentuploaded to sharing websites
Previews
Access to content on PCs
Music On-Demand Library
VOD Library
% Finding Feature Strongly Appealing (i.e. 6-7 on a 1-7 scale)
Source: Digital Media Evolution-Survey 11/15/08Sample: n=2,447 broadband HHs in the U.S. ; ±2%© 2008 Parks Associates
The PC/Internet access features hold relatively strong appeal among those age 18-24. The virtual viewing party feature appeals to those age 25-34 in particular.
The PC/Internet access features hold relatively strong appeal among those age 18-24. The virtual viewing party feature appeals to those age 25-34 in particular.
Slide 52
Appeal of BD Interactive Disc Features
U.S.: Appeal of Blu-ray Disc Features "Q415. How appealing are the following capabilities for Blu-ray, high definition DVD discs?"
(Among BB HHs, n=796, +4%)
9%
10%
13%
14%
15%
15%
15%
18%
20%
20%
29%
0% 20% 40% 60% 80% 100%
Fan chat rooms
Rate favorite scenes that have been shared
Online store with related merchandise
Related multi-player games
Download related content (pictures, ring-tones, clips, etc.)
Picture-in-picture commentary
Share favorite scenes with others
Movie info
Digital copies of a movie
Preview info
Electronic movie rental via player
% Finding Feature Strongly Appealing (i.e. 6-7 on a 1-7 scale)
Source: Digital Media Evolution-Survey 11/15/08Sample: n=2,447 broadband HHs in the U.S. ; ±2%© 2008 Parks Associates
Respondents age 25-34 generally express more interest in these features, except for the season preview feature. That particular feature appeals more to those age 18-24.
Respondents age 25-34 generally express more interest in these features, except for the season preview feature. That particular feature appeals more to those age 18-24.
Slide 53
Ranking the Top BD Interactive Disc Features
Access to movie rentals dominates by 4X any other feature in rankings.
Access to movie rentals dominates by 4X any other feature in rankings.
U.S.: Most Desired Blu-ray Disc Features "Q416. Please rank the following features... "
(Among BB HHs, n=796; +4%)
5%
3%
6%
6%
7%
5%
21%
7%
9%
2%
4%
2%
3%
4%
4%
5%
4%
7%
5%
5%
8%
5%
6%
5%
4%
0% 20% 40% 60% 80% 100%
Fan chat rooms
Rate favorite scenes that have been shared
Online store with related merchandise
Share favorite scenes with others
Download related content (pictures, ring-tones, clips, etc.)
Related multi-player games
Picture-in-picture commentary
Movie info
Digital copies of a movie
Preview info
Electronic movie rental via player
% Ranking Feature
Most Desired
2nd Most Desired
3rd Most Desired
Source: Digital Media Evolution-Survey 11/15/08Sample: n=2,447 broadband HHs in the U.S. ; ±2%© 2008 Parks Associates
Slide 54
Willingness to Pay for BD-Live-enabled Player
U.S.: Value of Blu-ray Player Features "Q416a. Assuming that the Blu-Ray HD Player you want to purchase is about $400...how
much extra you are willing to pay to get the (desired) features"(Among BB HHs, n=796; +4%)
41%
7% 7% 6%
4% 2% 2% 2% 2% 3% 3% 2% 2% 1% 1% 1% 1% 1% 1% 1%
7%
0% 0% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
0%
20%
40%
60%
80%
100%
0$
5$
10
$1
5$
20
$2
5$
30
$3
5$
40
$4
5$
50
$5
5$
60
$6
5$
70
$7
5$
80
$8
5$
90
$9
5$
10
0$
10
5$
11
0$
11
5$
12
0$
12
5$
13
0$
13
5$
14
0$
14
5$
15
0$
15
5$
16
0$
16
5$
17
0$
17
5$
19
0$
20
0
Amount Respondent is Willing to Pay
% o
f R
es
po
nd
en
ts
Source: Digital Media Evolution-Survey 11/15/08Sample: n=2,447 broadband HHs in the U.S. ; ±2%© 2008 Parks Associates
Of the tested features, electronic movie rental has, by far, the strongest relation to a willingness to pay more.*
Respondents will pay around $50 (on average) for new features.
Respondents age 18-34 and those with a HH income above $100K will pay more than other respondents.**
*Based upon a regression analysis of willingness to pay & feature appeal.
** At a 99% confidence level.
Of the tested features, electronic movie rental has, by far, the strongest relation to a willingness to pay more.*
Respondents will pay around $50 (on average) for new features.
Respondents age 18-34 and those with a HH income above $100K will pay more than other respondents.**
*Based upon a regression analysis of willingness to pay & feature appeal.
** At a 99% confidence level.