FTI - The Effect of Tablets on US Content Consumption …/media/Files/us-files/insights/white-papers/...SEPTEMBER 2011 THE EFFECT OF TABLETS ON US CONTENT CONSUMPTION A Guide to FTI’s

!!

SEPTEMBER 2011

THE EFFECT OF TABLETS ON US

CONTENT CONSUMPTION

A Guide to FTI’s 2011 Mobile Device and Digital Content

Consumption Survey

BY: NEIL BENEDICT, BRUCE BENSON, ROGER SCADRON AND LUKE SCHAEFFER

!"#$%&&#'($)&$!*+,#(-$).$/).(#.($/).-012(3).$4$!*+,#$)&$/).(#.(-$

1

!

!"#$%#$&'

Introduction ..................................................................................................... 2!Implications for Digital Strategies ................................................................ 3!Summary and Major Findings ....................................................................... 5!

Engagement: Who Uses What? ............................................................ 7!Digital Substitution ............................................................................... 10!Willingness to Pay (for content) ........................................................... 12!

Summary of Findings by Type of Media .................................................... 13!Newspapers ......................................................................................... 13!Magazines ........................................................................................... 15!Television ............................................................................................. 16!Movies ................................................................................................. 18!Music ................................................................................................... 20!

!!

! !

!"#$%&&#'($)&$!*+,#(-$).$/).(#.($/).-012(3).$4$5.(6)70'(3).$

2

Introduction

!

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

"#$!%5&.)!#*<#-*<#5%!,'*5*,8-!*+.*,85*($!5'$+.%!*?48,5*+<!?$.*8!,/?48+*$%!8,'/%%!5#$!+$:%484$'1!?8<8C*+$1!5$-$(*%*/+1!?/5*/+!4*,5&'$!8+.!?&%*,!%$,5/'%B!D#*-$!5#$'$!8'$!/5#$'!%5&.*$%!/+!'$%4/+.$+5%E!.*<*58-!$+<8<$?$+51!F"GE%!%5&.)!&+*H&$-)!;/,&%$%!/+!.*;A;$'$+,$%!*+!,/+%&?45*/+!4855$'+%!>$5:$$+!58>-$5!8+.!+/+A58>-$5!&%$'%B!"#$%$!;*+.*+<%!4/*+5!5/!%$($'8-!@$)!,/+%*.$'85*/+%!;/'!5#$!.*<*58-!?$.*8!%5'85$<*$%!/;!,/+5$+5!4&>-*%#A$'%!8+.!4'/.&,$'%B!

D$!%/&<#5!5/!.$5$'?*+$!5#$!;/--/:*+<=!

• D/#)1!7/#2#!8+.!/(7!(6.#)!*+.*(*.&8-%!&%$!?/>*-$!.$(*,$%B!

• D/&.!.4-#*!(6!,#$%&!*+.*(*.&8-%!8'$!8,,$%%*+<!/+!5#$*'!?/>*-$!.$(*,$%1!8+.!5#$*'!:*--*+<+$%%!5/!48)!;/'!5#85!,/+5$+5B!

• D#85!$%66#2#)'#*!5#$'$!8'$!*+!&%8<$!04!&1#!&)$!%)'(,#!12(+-*C!'(+).241!8+.!5)4$%!/;!$#5%'#*B!

• D#85!*?48,5!./$%!5#$!$I*%5$+,$!/;!.*<*58-!8-5$'+85*($%!#8($!/+!.$?8+.!;/'!,/+A($+5*/+8-!?$.*8!;/'?85%B!

• D#85!.*;;$'$+,$%!*+!?$.*8!,/+%&?45*/+!>$5:$$+!58>-$5!8+.!+/+A58>-$5!&%$'%1!8+.!5#$*'!:*--*+<+$%%!5/!48)!;/'!,/+5$+5B!

J8'5!G!/;!5#*%!:#*5$!484$'!4'$%$+5%!8!%&??8')!/;!/&'!%&'($)!;*+.*+<%B!J8'5!GG!4'/(*.$%!8!.$58*-$.!8+8-)%*%!>)!?$.*8!%$<?$+5B!"#$!'$8.$'!?8)!:*%#!5/!%@*4!5/!%$<?$+5%!/;!*+5$'A$%5B!

KKKKKKKK!

"#./($(3(14!8!!!"#$!.858!:8%!,/--$,5$.!5#'/&<#!8+!/+-*+$!%&'($)!,/+.&,5$.!>$5:$$+!L8)!MN1!M300!8+.!O&+$!M1!M300B!P!5/58-!/;!012N0!*+.*(*.&8-%!'$%4/+.$.!5/!5#$!%&'($)!Q013MR!*+!5#$!67!8+.!20N!*+!5#$!69SB!

!"#$%&%'()*&+,-(%.%&,/&)0++.1./-.%&0/&-,/2%(34'0,/&45''.1/%&6.'7../&'568.'&5/)&/,/2'568.'&(%.1%9&7:0-:&4,0/'&',&%.;.158&<.*&-,/%0).15'0,/%&+,1&':.&)0=0'58&3.)05&%'15'.=0.%&,+&-,/'./'&4(680%:.1%&5/)&41,2)(-.1%&51,(/)&':.&=8,6.>

512,3'*(3).-$&)6$8393(*,$:(6*(#93#-$

3

Implications for Digital Strategies "#$!/>T$,5*($!/;!5#*%!%5&.)!*%!5/!4'/(*.$!8+!&+.$'%58+.*+<!/;!,/+5$+5!,/+%&?45*/+!8+.!.*;;$'$+,$%!>$5:$$+!58>-$5!8+.!+/+A58>-$5!&%$'%!%/!5#85!4&>-*%#$'%!8+.!4'/A.&,$'%!,8+!.$($-/4!%&,,$%%;&-!.*<*58-!?$.*8!%5'85$<*$%!;/'!5#$!)$8'%!8#$8.B!!!

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

D#*-$!?/%5!.*<*58-!,/+5$+5!,/+%&?$'%!8'$!'$%*%58+5!5/!48)!;/'!8,,$%%1!5#$'$!8'$!8-%/!?8+)!:#/!$I4'$%%!8!:*--*+<+$%%!5/!48)!;/'!,$'58*+!'*,#!/'!&+*H&$!/+-*+$!;$85&'$%!8+.!;/'!,$'58*+!#8'.!,/4)!8+.!$-$,5'/+*,!,/?>*+85*/+%!/'!V>&+.-$%BW!P+.!5#$%$!'$A%4/+.$+5%!X!*+,-&.*+<!8!<'/:*+<!+&?>$'!/;!58>-$5!&%$'%!X!,/+%&?$!,/+5$+5!?/'$!8+.!,/+%&?$!,/+5$+5!.*;;$'$+5-)!5#8+!./!+/+A58>-$5!&%$'%B!Y-$8'-)!*5!*%!5#$%$!,/+A%&?$'%!8'/&+.!:#*,#!.*<*58-!%5'85$<*$%!%#/&-.!>$!58'<$5$.B!

Z&'!%5&.)!4'/(*.$%!%4$,*;*,!*+%*<#5%!8>/&5!>$#8(*/'%!8?/+<!,$'58*+!<'/&4%!5#85!?8)!>$!&%$.!5/!5#$!%5'85$<*,!8.(8+58<$!/;!,/+5$+5!/:+$'%!-//@*+<!5/!*+,'$8%$!.*<*58-!'$($+&$%B!D$!#*<#-*<#5!8!;$:!>$-/:1!>&5!?/'$!8'$!,/+58*+$.!*+!5#$!>/.)!/;!5#$!'$A4/'5B!

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

"&1&F%)#*!X!F$:!'$%4/+.$+5%!#8($!)$5!5/!48)!;/'!/+-*+$!?8<8C*+$!,/+5$+5B!!"#85!%8*.1![[\!/;!:/?$+!#8($!+/5!,#8+<$.!5#$*'!?8<8C*+$!4&',#8%*+<!>$#8(*/'!>$,8&%$!/;!#8(*+<!8,,$%%!5/!,/+5$+5!/+-*+$B!!Z;!5#$%$1!2N\!8'$!>$5:$$+!5#$!8<$%!/;!M2!X!NN!8+.![_\!$8'+!>$5:$$+!^M2@!8+.!^RN@B!P%!:*5#!+$:%1!5#$)!*+.*,85$!5#85!8!,/?4$--*+<1!,&'85$.!58>-$5A;/'?855$.!.*<*58-!?8<8C*+$!:/&-.!*+.&,$!?8+)!5/!48)!;/'!.*<*58-!,/+5$+5B!!

;#3#5%*%()!X!D#*-$!5#$!8(8*-8>*-*5)!/;!.*<*58-!8-5$'+85*($%!#8%!,8&%$.!"`!%&>A%,'*>$'%!5/!'$.&,$!/'!,8+,$-!5#$*'!%&>%,'*45*/+%1!0[\!/;!'$%4/+.$+5%!%8*.!5#$!#8($!!"#$%&'%()5#$!,8>-$!%&>%,'*45*/+!>$,8&%$!/;!$I4/%&'$!5/!/+-*+$!8-5$'+85*($%B!"8>-$5!&%$'%!/;!8--!8<$%!8'$!%*<+*;*,8+5-)!?/'$!-*@$-)!5/!&4<'8.$!5#$*'!,8>-$!/'!%85$--*5$!%&>A%,'*45*/+%!5#8+!8'$!/5#$'%1!8+.!%/?$!/;!5#/%$!&%$'%!$($+!?/'$=!!a3\!/;!58>-$5!&%$'%!8<$%!0_!X!MN!8+.!a0\!/;!58>-$5!&%$'!5#85!$8'+!>$5:$$+!^033@!A!^0N]@!&4<'8.$.!5#$*'!"`!/'!785$--*5$!"`!%&>%,'*45*/+%!8%!8!'$%&-5!/;!>$*+<!8>-$!5/!8,,$%%!*+,'$8%$.!4'/<'8??*+<!/+-*+$B!"`!(*$:$'%!8-%/!#8($!'$.&,$.!5#$*'!b`b!4&',#8%*+<!8+.!'$+58-!

!"#$%&+,-(%&0%&,/&-,/2%(3.1%&7:,&(%.&,/80/.&5--.%%&5%&5&-,348.3./'&',&'15)02'0,/58&3.)05&5/)&7:,&.?41.%%&5&70880/=/.%%&',&45*&+,1&+.5'(1.%&5/)&-,/'./'>&&#'&0%&51,(/)&':.%.&=1,(4%&,+&3.)05&-,/%(3.1%&7:,&(%.&'568.'%&@5/)&%351'4:,/.%&',,A&':5'&410/'&4(680%:0/=&5/)&./'.1'50/3./'&-,/'./'&-,345/0.%&-5/&6(08)&70//0/=&,/80/.&%'15'.=0.%>

512,3'*(3).-$&)6$8393(*,$:(6*(#93#-$

4

>$#8(*/'%!,/+%*.$'8>-)!>$,8&%$!/;!/+-*+$!8-5$'+85*($%B!"8>-$5!&%$'%!#8($!./+$!5#*%!?/'$!8<<'$%%*($-)!5#8+!+/+A58>-$5!&%$'%1!>&5!5#$)!8'$!8-%/!?/'$!:*--*+<!5/!48)!;/'!/+-*+$!%#/:%!8+.!,/+%&?$!/+-*+$!%#/:%!?/'$!;'$H&$+5-)B!

"(5%#*!A!Y/+%&?$'%!%$$?!8!-*55-$!-$%%!$+5#&%*8%5*,!8>/&5!(*$:*+<!?/(*$%!/+-*+$!(%B!5#'/&<#!5'8.*5*/+8-!?$5#/.%B!D#*-$!.*;**5*8-!%&>%5*5&5*/+!#8%!8-%/!8;;$,5$.!5#$*'!b`b!>&)*+<!8+.!'$+58-!>$#8(*/'%1!-$%%!5#$*'!#8%!>$$+!-$%%!'$.&,5*/+!*+!b`b!?/(*$!,/+%&?45*/+!5#8+!*+!"`B!G+!/5#$'1!:/'.%1!,/+%&?$'%!%$$?!?/'$!'$8.)!5/!$+<8<$!:*5#!"`!%#/:%!.*<*58--)!5#8+!?/(*$%B!F/'!>/5#!"`!8+.!?/(*$%1!5#$!58>-$5!'$A4-8,$%!5#$!-845/4!8%!5#$!%$,/+.!?/%5!4/4&-8'!.$(*,$!;/'!(*$:*+<!(*.$/!,/+5$+51!:#$+!8!,/+%&?$'!/:+%!8!58>-$5B!Y/+%&?$'%!8-%/!,-8*?!5#$)!:/&-.!48)!;/'!?/'$!.*<*58-!?/(*$!Q8+.!"`S!(*$:*+<!*;!5#$)!#8.!8,,$%%!5/!?/'$!+$:!'$-$8%$!,/+5$+5!8+.!:/&-.!48)!5/!8(/*.!,/??$',*8-%B!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !

"+*%'!A!L8+)!/;!/&'!'$%4/+.$+5%!,-8*?$.!5#85!5#$)!:/&-.!;8(/'!8+!&+-*?A*5$.!%5'$8?*+<!%$'(*,$!/'!8!./:+A-/8.!5/!/:+!%$'(*,$!5#85!4'/(*.$.!8!-8'<$!+&?>$'!/;!./:+-/8.%!;/'!8!?/+5#-)!;$$B!G+!8..*5*/+!5#$)!*+.*,85$.!5#85!:#*-$!5#$*'!;8(/'$.!.$(*,$!*%!5#$*'!LJa!4-8)$'!Q&%&8--)!8+!*J8.!/'!*J#/+$S1!5#$)!,-8*?!8!,'/%%A.$(*,$!/;A;$'*+<!:/&-.!,8&%$!5#$?!5/!48)!?/'$!;/'!.*<*58-!?&%*,!8,,$%%B!c?$'<*+<!,'/%%A.$(*,$!/;;$'*+<%!-*@$!74/5*;)1!5#$!%5'$8?*+<!?&%*,!%$'(*,$1!8'$!$I4$'*$+,*+<!.'8?85*,!&4A58@$!'85$%!:*5#!67!,/+%&?$'%B!"#*%!%$$?%!5/!'85*;)!5#$!,/+%&?$'%E!,-8*?!5#$)!:8+5!&+-*?*5$.!%5'$8?*+<!8+.!8,,$%%!8,'/%%!5#$*'!.$(*,$%B!P44-$E%!*Y-/&.!%$'(*,$!*%!8-%/!%5'*(*+<!5/!<*($!,/+%&?$'%!,'/%%A4-85;/'?!;&+,5*/+8-*5)!;/'!%/+<%!5#$)!/:+1!>&5!5#*%!%$'(*,$!./$%!+/5!:/'@!/+!P+.'/*.!.$(*,$%B!!

! !

:011*6;$*.7$<*=)6$>3.73.9-$

5

Summary and Major Findings "#$!48<$%!5#85!;/--/:!%&??8'*C$!@$)!;*+.*+<%!;'/?!F"GE%!?$.*8!%&'($)!;/'!67!'$%4/+.A$+5%!/+-)B!!D$!;*'%5!.*%,&%%!.*<*58-!$+<8<$?$+51!.*<*58-!%&>%5*5&5*/+!8+.!:*--*+<+$%%!5/!48)!Q;/'!,/+5$+5S!*+!>'/8.!5$'?%1!8+.!5#$+!.*%,&%%!@$)!;*+.*+<%!>)!?$.*8!5)4$B!!!

G)1&1#,#).HA*&1#!

• G+!<$+$'8-1!58>-$5!&%$'%!,/+%&?$!?/'$!.*<*58-!?$.*8!5#8+!./!+/+A58>-$5!&%$'%B!

• 7?8'54#/+$%!8'$!&%$.!4'*?8'*-)!8%!,/??&+*,85*/+!.$(*,$%1!8+.!58>-$5%!8'$!&%$.!4'*?8'*-)!8%!?$.*8!8,,$%%!.$(*,$%B!!

• "#$'$!8'$!*?4/'58+5!.*;;$'$+,$%!8?/+<!8<$!<'/&4%!'$<8'.*+<!:#85!,/+5$+5!*%!4'$A;$''$.!8+.!#/:!*5!*%!8,,$%%$.B!!

o "#$!)/&+<$%5!8<$!<'/&4!,/+%&?$%!+$:%!,/+5$+5!/+-*+$!+$8'-)!8%!?&,#!8%!8--!5#$!/5#$'!8<$!<'/&4%!X!8--!>$5:$$+![2\!8+.!R2\!/;!'$%4/+.$+5%1!

o !7&'4'*%*+<-)1!5#$'$!*%!8-%/!#*<#!&%$!/;!%/,*8-!+$5:/'@%!>)!5#/%$!*+!/-.$'!8<$!<'/&4%B!!

o Z5#$':*%$1!)/&+<$'!'$%4/+.$+5%!,/+%&?$!?/'$!,/+5$+5!/+-*+$!5#8+!./!/-.$'!.$?/%B!

• G+!8..*5*/+1!%/,*8-!+$5:/'@*+<!%*5$%!8'$!8,,$%%$.!$I5$+%*($-)!/+!%?8'54#/+$%!Q8+.!-845/4%S!*+.*,85*+<!5#85!%?8'54#/+$%!5$+.!5/!>$!&%$.!4'*?8'*-)!8%!,/??&+*,85*/+%!.$(*,$%B!G+!,/+5'8%51!58>-$5%!8'$!&%$.!?&,#!-$%%!;/'!%/,*8-!?$.*8!8,,$%%!8+.!'$-8A5*($-)!?/'$!5/!,/+%&?$!?$.*8B!

• "8>-$5%!844$8'!5/!>$!.*%,/($')!.$(*,$%!;/'!(*.$/!,/+5$+5!/+-*+$B!

• "$-$(*%*/+!,/+5$+5!*%!,/+%&?$.!/+-*+$!>)!?/'$!'$%4/+.$+5%!5#8+!*%!?/(*$!,/+5$+5!%&<<$%5*+<!5#85!%#/'5$'A;/'?!,/+5$+5!*%!?/'$!'$8.*-)!,/+%&?$.!/+!%?8--$'!%,'$$+%B!!"#$!5$+.$+,)!?8)!8-%/!4/*+5!5/!5#$!<'$85$'!8(8*-8>*-*5)!/;!;'$$!5$-$(*%*/+!,/+5$+5!/+-*+$!5#8+!;'$$!?/(*$%B!

>%1%.&3!@+0*.%.+.%()!

• d/5#!58>-$5!8+.!+/+A58>-$5!&%$'%!%#/:!%5'/+<!:*--*+<+$%%!5/!%&>%5*5&5$!.*<*58-!;/'!,/+($+5*/+8-!?$.*8!:#$+!5#$)!#8($!/+-*+$!8-5$'+85*($%!8(8*-8>-$B!

• "8>-$5!&%8<$!5)4*,8--)!%&>%5*5&5$%!;/'!,/+($+5*/+8-!,/+5$+5!,/+%&?45*/+!8,'/%%!8--!4'*+5!8+.!$+5$'58*+?$+5!,/+5$+5!;/'?%1!$I,$45!;/'!%&>%,'*45*/+!"`1!:#$'$!*5!,/?A4-$?$+5%!Q*+,'$8%$%S!&%8<$B!

• d$5:$$+!/+$A5#*'.!5/!/+$A#8-;!/;!'$%4/+.$+5%!'$4/'5!'$.&,*+<!/'!%5/44*+<!5#$*'!&%$!/;!,/+($+5*/+8-!?$.*8!:#$+!4'/(*.$.!/+-*+$!8-5$'+85*($%1!5#/&<#!5#$!8?/&+5!/;!%&>%5*5&5*/+!(8'*$%!>)!8<$!8+.!Q/;!,/&'%$S!>)!5)4$!/;!?$.*8B!

• J$'#84%!8!%*+<&-8'!$I,$45*/+1!%&>%,'*45*/+!"`!%4$+.*+<!*+,'$8%$%!:*5#!58>-$5!&%A8<$B!

D%33%)1)#**!.(!I&4!6(2!>%1%.&3!J().#).!

• "#$!8(8*-8>*-*5)!/;!/+-*+$!8-5$'+85*($%!'$%&-5%!*+!5#$!'$.&,5*/+!/;!5'8.*5*/+8-!&%8<$!*+!?/%5!%$,5/'%!/;!4'*+5!8+.!$+5$'58*+?$+5B!

&"568.'&(%.1%&-,/2%(3.&3,1.&-,/'./'&':5/&),&/,/2'568.'&(%.1%>&B,7.;.19&53,/=&,(1&1.2%4,/)./'%9&6,':&'568.'&5/)&/,/2'568.'&(%.1%&%:,7&%'1,/=&70880/=/.%%&',&%(6%'0'('.&-,/2;./'0,/58&3.)05&7:./&':.*&:5;.&,/80/.&58'.1/5'0;.%>

:011*6;$*.7$<*=)6$>3.73.9-$

6

• "#$'$!*%!8-?/%5!+/!:*--*+<+$%%!5/!48)!?/'$!;/'!/+-*+$!,/+5$+5!5#8+!;/'!5'8.*5*/+8-!;/'?85!,/+5$+51!&+-$%%!/+-*+$!*%!>&+.-$.!:*5#!4'*+5!/'!5'8.*5*/+8-!;/'?85!,/+5$+5B!

• U/:$($'1!8!%*<+*;*,8+5!+&?>$'!/;!,/+%&?$'%!%8*.!5#$)!:/&-.!48)!;/'!.*<*58-!,/+A5$+5!*;!%4$,*;*,!;$85&'$%!:$'$!8(8*-8>-$B!!F8(/'$.!;$85&'$%!8,'/%%!?$.*8!5)4$%!*+A,-&.$=!

o Y&%5/?!,/+5$+5!8+.!844%!!o e&8-*5)!<'84#*,%!8+.!4#/5/<'84#%!Q;/'!4'*+5!?$.*8S!o Y/??$',*8-!;'$$!,/+5$+5!Q;/'!"`!8+.!?/(*$!(*$:$'%S!o P>*-*5)!5/!%#8'$!,/+5$+5!8,'/%%!.$(*,$%!85!8+)5*?$!Q;/'!?&%*,!8+.!;/'!"`!

8+.!?/(*$SB!

I2%).!"#$%&!KE#7*-&-#2*!?!"&1&F%)#*L!

• P-?/%5!#8-;!/;!8--!'$%4/+.$+5%!+$*5#$'!%&>%,'*>$!5/!+/'!4&',#8%$!*+.*(*.&8-!,/4*$%!/;!+$:%484$'%B!

• U/:$($'1!5#/%$!:#/!Q%5*--S!,/+%&?$!#8'.!,/4)!($'%*/+%!8'$!?&,#!?/'$!-*@$-)!5/!48)!;/'!5#$!.*<*58-!($'%*/+!/;!8!+$:%484$'!/'!?8<8C*+$B!

o d&+.-*+<!.*<*58-!:*5#!4'*+5!.'*($%!8+!*+,'$8%$.!:*--*+<+$%%!5/!48)!;/'!,/+A5$+5!8?/+<!8!?$8+*+<;&-!4/'5*/+!/;!'$8.$'%1!8+.!

o P%!*+.*,85$.!8>/($1!4'/(*.*+<!&+*H&$!/'!$I,-&%*($!+$:%!f!4'*+5!,/+5$+5!*+!8!'*,#!;/'?85!*+,'$8%$%!'$%4/+.$+5%E!:*--*+<+$%%!5/!48)!;/'!.*<*58-B!

G).#2.&%),#).!K;#3#5%*%()C!"(.%()!I%'.+2#*!&)$!"+*%'L!

• "#$!/($':#$-?*+<!4'$;$'$+,$!8?/+<!'$%4/+.$+5%!*%!5/!:85,#!$4*%/.*,!"`!8+.!?/(*$%!/+!8!5$-$(*%*/+!%$5!'85#$'!5#8+!/+!8+)!/5#$'!.$(*,$B!

o G+!;8,51!/+-)!0\!/;!'$%4/+.$+5%!-*%5$.!8!%?8'54#/+$!8%!8!4'$;$''$.!.$(*,$!;/'!:85,#*+<!"`SB!

• P,,$%%!5/!/+-*+$!,/+5$+5!Q4'*+,*48--)!/+!8!58>-$5S!-$8.%!5/!*+,'$8%$.!48*.!,/+%&?4A5*/+!/;!%&>%,'*45*/+!5$-$(*%*/+!Q,8>-$!/'!%85$--*5$S1!%&<<$%5*+<!5#$!58>-$5!%$'($%!8%!8!,/+5$+5!.*%,/($')!.$(*,$B!

• Z+-*+$!8,,$%%!5/!(*.$/!,/+5$+5!:*--!,/+5*+&$!5/!%&>%5*5&5$!*+A%5/'$!4&',#8%$%!f!'$+58-%1!8+.!$($+!*+A5#$85'$!(*%*5%B!

• g/&+<$'!,/+%&?$'%!%#/:!*+,'$8%$.!:*--*+<+$%%!5/!48)!;/'!/+-*+$!,/+5$+5!'$-85*($!5/!5#/%$!*+!/-.$'!8<$!<'/&4%1!4'/(*.$.!5#$!/+-*+$!,/+5$+5!;&-;*--%!5#$!8+)5*?$1!8+)A:#$'$!(8-&$!4'/4/%*5*/+B!

• D#*-$!./:+-/8.*+<!?&%*,!*%!%5'/+<-)!4'$;$''$.!5/!%5'$8?*+<1!8!<'$85$'!*+5$'$%5!*+!%5'$8?*+<!8?/+<!%?8'5A4#/+$!8+.!58>-$5!&%$'%!?8)!4/*+5!5/!8!<'/:*+<!.$?8+.!;/'!%5'$8?*+<!8%!%?8'5A4#/+$%!8+.!58>-$5%!*+,'$8%$!5#$*'!4'$(8-$+,$B!

D#)!58>-$5!&%$'!>$#8(*/'!*%!.*;;$'$+5!*%!.*;;*,&-5!5/!%8)!:*5#/&5!;&'5#$'!%5&.)B!!G%!5#$!.*;A;$'$+,$!8!'$%&-5!/;!.$(*,$%!8+.!844%!5#85!$+8>-$!&%$'%!5/!$+T/)!8!,/+($+*$+51!#*<#!H&8-A*5)!&%$'!$I4$'*$+,$!8+)5*?$A8+):#$'$h!!Z'!8'$!$8'-)!8./45$'%!*+#$'$+5-)!?/'$!$+A<8<$.!*+!?$.*81!,/+%&?*+<!?/'$!8+.!48)*+<!?/'$h!!P5!5#*%!4/*+5!*+!58>-$5!8./45*/+1!:$!%&%4$,5!8!>*5!/;!>/5#!;8,5/'%!?8)!>$!85!:/'@B!!

! !

:011*6;$*.7$<*=)6$>3.73.9-$4$%.9*9#1#.($

7

Engagement: Who Uses What? "#$'$!8'$!*?4/'58+5!.*;;$'$+,$%!8?/+<!8<$!<'/&4%!*+!:#85!,/+5$+5!*%!4'$;$''$.!8+.!#/:!*5!*%!8,,$%%$.B!!F'/?!5#$!-8'<$'!<'/&4!/;!'$%4/+.$+5%!Q:#*,#!*+,-&.$%!58>-$5!8+.!+/+!58>-$5!&%$'%!*+!>/5#!5#$!67!8+.!5#$!69S!5#$'$!*%!%&'4'*%*+<-)!?/'$!,/+%&?45*/+!/;!+$:%!>)!5#/%$!*+!)/&+<$'!8<$!<'/&4%!8+.!&%$!/;!%/,*8-!+$5:/'@%!>)!5#/%$!*+!/-.$'!8<$!<'/&4%B!!!

P%!%#/:+!*+ F*<&'$!0!>$-/:1!+$:%1!%/,*8-!+$5:/'@*+<!8+.!?&%*,!8'$!5#$!?/%5!:*.$-)!,/+%&?$.!.*<*58-!?$.*8!8?/+<!'$%4/+.$+5%!*+!>/5#!,/&+5'*$%1!5#/&<#!69!'$%4/+.$+5%!,/+%&?$!;$:$'!?/(*$%!8+.!4-8)!-$%%!.*<*58-!<8?$%!5#8+!5#$*'!67!,/&+5$'48'5%B!!

!

!

!

!

!

!

!

!

!

c+<8<$?$+5!:*5#!$8,#!5)4$!/;!?$.*8!.*;;$'%!%*<+*;*,8+5-)!>)!8<$!<'/&4B!P!%&??8')!/;!$+<8<$?$+5!>)!8<$!*%!%#/:+!*+!F*<&'$!MB!

!

!

!

!

!

!

!

!

!

!

!

!

!

!

!

!

!

!

&CD,33,/&70%),3E&35*&/,'&1.-,=/0F.&':.&53,(/'&,+&/.7%&-,/%(3.)&6*&*,(/=.1&5=.&=1,(4%9&,1&':.&./2=5=.3./'&0/&%,-058&/.'7,1<%9&.40%,)0-&"G9&5/)&3(%0-&,+&,8).1&5=.&=1,(4%>

74.1 % 77.1 %

62.4 %

50.3 % 46.1 %40.7 % 38.4 %

32.5 %

Figure 1 - Digital Media Usage

Newspapers TV Show Episodes Magazines

Social Networks Games Sports

Music Movies None

67%77%76%75%71%

18-2425-3435-4445-5455+

89%90%78%70%

60%

18-2425-3435-4445-5455+

75%58%

49%42%35%

18-2425-3435-4445-5455+

81%75%68%

49%41%

18-2425-3435-4445-5455+

59%48%42%

30%28%

18-2425-3435-4445-5455+

39%47%

35%36%32%

18-2425-3435-4445-5455+

59%51%50%

35%38%

18-2425-3435-4445-5455+

!"#$%#$&#$&#

!%#

18-2425-3435-4445-5455+

'#'#'#&#&#

18-2425-3435-4445-5455+

Figure 2 - Media Engagement

:011*6;$*.7$<*=)6$>3.73.9-$4$%.9*9#1#.($

8

"#$'$!8'$!%$($'8-!*?4/'58+5!58@$A8:8)%!8?*.!5#$!8''8)!/;!+&?>$'%!*+!F*<&'$!M!8>/($B!7/?$!/;!5#$!@$)!/+$%!*+,-&.$=!

0B >%1%.&3!,#$%&!%*!'()*+,#$!04!4(+)1!&)$!(3$!X!D#*-$!V,/??/+!:*%./?W!8%%&?$%!5#85!.*<*58-!,/+5$+5!*%!&%$.!?/'$!>)!5#$!)/&+<$'!'$%4/+.$+51!5#$!'$%4/+%$%!%#/:!5#85!?/'$!5#8+![R\!/;!'$%4/+.$+5%!*+!8--!8<$!<'/&4%!8,,$%%!+$:%!8+.!+$:%484$'%!/+-*+$1!?/'$!5#8+![3\!/;!8--!8<$%!8,,$%%!%/,*8-!+$5:/'@%1!8+.!?/'$!5#8+!a2\!/;!/-.$'!.$?/%!Q22i!)$8'%!/-.S!8,,$%%1!$4*%/.*,!"`1!?&%*,!8+.!$($+!<8?$%!Qa_\!*+!67S!/+-*+$B!

MB E#7*-&-#2*!X!P<$!./$%+E5!?855$'B!d$5:$$+![R\!A!_2\!/;!8--!'$%4/+.$+5%!8,'/%%!8--!8<$!<'/&4%!8+.!*+!>/5#!5#$!67!8+.!69!'$8.!+$:%!8+.!+$:%484$'%!/+-*+$B!

aB G-%*($%'!.#3#5%*%()!&)$!"+*%'!X!`$')!#*<#!4$',$+58<$%!QafN!/'!?/'$S!/;!)/&+<!'$A%4/+.$+5%!8,,$%%!5#$%$!?$.*8!/+-*+$1!>&5!,-/%$!5/!0fM!/;!5#$!/-.$'!.$?/%!,/+A%&?$!5#$?B!

NB "&1&F%)#*!X!7&'4'*%*+<-)!;$:!'$%4/+.$+5%!,/+%&?$!?8<8C*+$!,/+5$+5!/+-*+$1!:*5#!-*?*5$.!.*;;$'$+,$%!8?/+<!8<$!<'/&4%B!!!

2B "(5%#*!X!P'$!(*$:$.!-$%%!5#8+!5$-$(*%*/+!/+-*+$1!4/5$+5*8--)!*+.*,85*+<!8!4'$;$'$+,$!;/'!%#/'5$'!;/'?!,/+5$+5!/+!5#$!,&''$+5!>8%$!/;!*+5$'+$5!,/++$,5$.!.$(*,$%!Q4'*A?8'*-)!JY%!8+.!-845/4%SB!!!

G+!<$+$'8-!58>-$5!&%$'%!,/+%&?$!?/'$!,/+5$+5!5#8+!./!+/+A58>-$5!&%$'%!8%!%#/:+!*+!F*<A&'$%!a!8+.!N >$-/:B!

"8>-$5!&%$'%!8'$!?/'$!-*@$-)!5/!%&>%,'*>$!5/!/+$!/'!?/'$!+$:%484$'!8+.!?8<8C*+$!4&>A-*,85*/+%B!!"8>-$5!&%$'%!8-%/!*+.*,85$!?/'$!;'$H&$+5!(*$:*+<!/;!?/(*$%!8+.!"`!%#/:%!/+-*+$B!!!

Figure 3 - Online Consumption of Newspapers and Magazines

Figure 4 - Online Consumption of Movies and TV

5% 9%13% 13%

18%19%

5% 8%

12% 26%

0%10%20%30%40%50%

Newspapers Magazines Newspapers Magazines

None but willing 1 2 or more

Non-Tablet Users Tablet Users

11% 10% 6% 4%40% 29% 47% 40%

29%17%

28% 23%

0%20%40%60%80%

100%

Movies TV Shows Movies TV Shows

Never but willing Less than once per monthMore than once per month


:011*6;$*.7$<*=)6$>3.73.9-$4$:)'3*,$?#(@)6A-$

9

Social Networks P%!%#/:+!8>/($1!'$%4/+.$+5%!$+<8<$!?/'$!:*5#!%/,*8-!+$5:/'@%!5#8+!:*5#!8+)!/5#$'!;/'?!/;!.*<*58-!,/+5$+5B!!j$%4/+.$+5%!%4$+.!>$5:$$+!aBR!A!2BN!#/&'%!4$'!:$$@!$+<8<$.!*+!%/,*8-!?$.*8!QF*<&'$!2SB!7?8'54#/+$%!8+.!-845/4%!8'$!?/%5!#$8(*-)!&%$.1!>&5!'$%4/+.A$+5%!:*5#!58>-$5%!8-%/!%4$+.!/($'!aBR!#/&'%!4$'!:$$@!&%*+<!%/,*8-!+$5:/'@*+<!%*5$%B!

!

!

!

!

!

!

!

!

!

!

D#*-$!$+<8<$?$+5!:*5#!%/,*8-!+$5:/'@%!(8'*$%!>)!8<$1!*5!./$%!+/5!.'/4!/;;!:*5#!8<$!8%!H&*,@-)!8%!?8+)!#8($!5#/&<#5B!j$%4/+.$+5%!*+!/-.$'!8<$!<'/&4%!Q8<$%!N2!i!)$8'%S!&%$!%/,*8-!+$5:/'@%!;/'!0BR!X!2B3!#/&'%!4$'!:$$@B!!G+!,/+5'8%5!8+.!+/5!%&'4'*%*+<-)1!0_AMN!)$8'!/-.%!%4$+.!8-?/%5!5:*,$!8%!?8+)!#/&'%!Q_BN!#/&'%S!8%!5#/%$!%4$+5!>)!/-.$'!'$A%4/+.$+5%B!!G?4/'58+5-)!8+5*,*485*+<!;&5&'$!.$(*,$!&%8<$!5'$+.%1!%?8'54#/+$%!8+.!-84A5/4%!8'$!&%$.!8-?/%5!5:*,$!8%!?&,#!>)!0_AMN!)$8'!/-.%!;/'!%/,*8-!+$5:/'@*+<!8%!8'$!58>A-$5%!QF*<&'$![SB!

!!!!!!!!!!!!!!

!

c+<8<$?$+5!4855$'+%!5#85!.$?/+%5'85$!5#$!$I5$+%*($!&%$!/;!%/,*8-!+$5:/'@*+<!/+!%?8'54#/+$%!*+.*,85$!5#85!%?8'54#/+$%!8'$!&%$.!4'*?8'*-)!8%!,/??&+*,85*/+%!.$(*,$%!Q>/5#!5$I5!8+.!($'>8-SB!!!

!

Figure 5 – Hours Spent Per Week on Social Networks

Figure 6 – Hours Spent Per Week on Social Networks by Age and Device

&

H,-058&/.'7,1<0/=&%0'.%&51.&5--.%%.)&.?'./%0;.8*&,/&%351'4:,/.%&@5/)&854',4%A&%(44,1'0/=&':.&-,/-8(%0,/&':5'&%351'4:,/.%&51.&(%.)&41035108*&5%&-,33(/0-5'0,/%&).;0-.%9&7:.1.5%&'568.'%&51.&(%.)&3(-:&8.%%&+,1&%,-058&3.)05&5--.%%9&5/)&51.&(%.)&41035108*&5%&3.)05&).;0-.%>

4.45.2

8.6 8.4

1.7

3.5

1.73.2

0.0

2.0

4.0

6.0

8.0

10.0

Tablet Desktop Smartphone Laptop

18-24 25-34 35-44 45-54 55+

3.74.2

5.3 5.4

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Tablet Desktop Smartphone Laptop

:011*6;$*.7$<*=)6$>3.73.9-$4$8393(*,$:0+-(3(0(3).$

10

Digital Substitution "#$!%5&.)!855$?45$.!5/!.$5$'?*+$!:#$+!8+.!*;!.*<*58-!?$.*8!:8%!8!%&>%5*5&5$!/'!8!,/?4-$?$+5!;/'!5'8.*5*/+8-!QV#8'.!,/4)WS!?$.*81!8+.!*5!;/,&%$.!$I5$+%*($-)!/+!5#$!4'/A4$+%*5)!/;!'$%4/+.$+5%!$*5#$'!5/!'$.&,$!/'!5/!%5/4!5#$!&%$!/;!,/+($+5*/+8-!?$.*8!:#$+!/+-*+$!8-5$'+85*($%!8'$!8(8*-8>-$B!!

"#$!%5&.)!*+.*,85$%!5#85!/+-*+$!&%8<$!&%&8--)!8,5%!8%!8!%&>%5*5&5$!;/'!,/+($+5*/+8-!,/+A5$+5!,/+%&?45*/+!8,'/%%!8--!4'*+5!8+.!$+5$'58*+?$+5!,/+5$+5!;/'?%1!$I,$45!;/'!%&>A%,'*45*/+!"`B!!Z($'!0fa!5/!+$8'-)!23\!/;!'$%4/+.$+5%!Q.$4$+.$+5!/+!5#$!?$.*8S!%585$.!5#$)!#8($!%5/44$.!/'!'$.&,$.!,/+%&?45*/+!/;!5'8.*5*/+8-!;/'?85!,/+5$+5!>$,8&%$!5#$)!#8($!8,,$%%!5/!/+-*+$!,/+5$+5B!"`1!#/:$($'1!?8)!>$!5#$!%/-$!;/'?!/;!?$.*8!;/'!:#*,#!/+-*+$!8,,$%%!8,5%!8%!8!,/?4-$?$+5B!P5!-$8%5!8?/+<!58>-$5A&%$'%1!/+-*+$!8,,$%%!-$8.%!?/'$!'$%4/+.$+5%!5/!*+,'$8%$!5#$*'!%&>%,'*45*/+%!5#8+!5#/%$!:#/!%5/4!/'!.$,'$8%$!5#$*'!%&>%,'*45*/+%B!

7&,#!'$%&-5%!8'$!%#/:+!*+!F*<&'$!R!>$-/:B!P?*.!.*<*58-!%&>%5*5&5*/+!*+!8--!/5#$'!?$.*8!;/'?%1!:#$+!4'$%$+5$.!:*5#!/+-*+$!,/+5$+5!8-5$'+85*($%1!0[\!/;!'$%4/+.$+5%!$I#*>*5!8!5$+.$+,)!5/!&4<'8.$!5#$*'!%&>%,'*45*/+%!/;!,/+($+5*/+8-!"`B!"#$!'$8%/+!;/'!5#$!&4A<'8.$!:8%!+/5!H&$'*$.1!>&5!*%!-*@$-)!8!'$%&-5!/;!'$%4/+.$+5%!:8+5*+<!5/!:85,#!$4*%/.*,!%$'*$%!/+!,/+($+5*/+8-!"`!5/!:#*,#!5#$)!:$'$!4'$(*/&%-)!$I4/%$.!/+-*+$B!"#*%!844$8'%!5/!%&<<$%5!5#85!/+-*+$!&%8<$!,/?4-$?$+5%!5'8.*5*/+8-!"`!&%8<$B!!

!

!!!!

!!!!!!!!

!!

!!!!!!!!!!!P%!%#/:+!*+!F*<&'$!_1!58>-$5A&%$'%!5$+.!5/!%&>%5*5&5$!/+-*+$!,/+5$+5!,/+%&?45*/+!;/'!5'8.*5*/+8-!;/'?85!,/+%&?45*/+1!$I,$45!8<8*+!*+!5#$!,8%$!/;!"`!%&>%,'*45*/+%B!D#*-$!5#$!4'$%$+,$!/;!.*<*58-!8-5$'+85*($%!./$%!'$.&,$!,/+($+5*/+8-!?$.*8!4&',#8%$%1!5#$!8?/&+5!/;!%&>%5*5&5*/+!(8'*$%!>)!8<$!8+.!.$?/<'84#*,!<'/&4B!G+!,/+5'8%51!.*<*58-!,/+5$+5!8(8*-8A>*-*5)!?8)!4'/?/5$!,/+($+5*/+8-!5$-$(*%*/+!&4-*;5!8?/+<!58>-$5!&%$'%B!!

Figure 7 – Substitution of Traditional Media for Online Alternatives

&

I:08.&':.&41.%./-.&,+&)0=0'58&58'.1/52'0;.%&-5//06580F.%&-,/;./'0,/58&3.)05&4(1-:5%.%9&':.&53,(/'&,+&%(6%'0'(2'0,/&;510.%&6*&5=.&5/)&).3,=154:0-&=1,(4>&#/&-,/'15%'9&)0=0'58&-,/'./'&5;50856080'*&35*&41,3,'.&-,/;./2'0,/58&'.8.;0%0,/&(4280+'&53,/=&'568.'&(%.1%>

Figure 8 - Online Alternatives by Tablet / Non-Tablet Users

Non-Tablet UsersTablet Users

----Motion Pictures---- --------Television--------

37%47%

30%38% 36% 38% 37%

21%

2% 1% 4% 4% 8%3% 4%

16%

Stopped or reduced purchases/subscriptions

Increased purchases/subscriptions

40%

51%

38%44% 45% 48% 45%

20%

2% 3% 6% 6% 8% 5% 6%

24%



37%

47%

29%

37% 35% 36% 36%

21%

2% 1% 4% 4%8%

3% 4%

15%



:011*6;$*.7$<*=)6$>3.73.9-$4$8393(*,$:0+-(3(0(3).$

11

b*<*58-!%&>%5*5&5*/+!.*;;$'%!>)!?$.*8!5)4$!8+.!8?/+<!.$?/<'84#*,!<'/&4%!8%!%#/:+!*+!F*<&'$!] >$-/:B!!• U8'.!,/4)!+$:%484$'%!8'$!5#$!?/%5!%&>%5*5&5$.!/;!8--!?$.*8!8?/+<!8--!8<$!<'/&4%!

:*5#!NR\!/;!8--!/+-*+$!&%$'%!#8(*+<!%5/44$.!/'!'$.&,$.!5#$*'!#8'.!,/4)!,/+%&?4A5*/+B!!Z+-)!5#$!/-.$%5!8<$!<'/&4!Q22iS!#8%!8!+/58>-)!-/:$'!'85$!/;!%&>%5*5&5*/+!Qa]\SB!!

!!

!!!!!!!!!!!!!!!

!!!!!!!!!!!!

• 7&>%5*5&5*/+!/;!/+-*+$!;/'!4#)%*,8-!b`b!'$+58-%!/'!4&',#8%$%!Q:#$5#$'!L/(*$%!/'!"`!7#/:%S!*%!#*<#$%5!8?/+<!5#$!)/&+<$%5!8<$!<'/&4%!Q0_AaN!)$8'!/-.%SB!!g$5!*5!844$8'%!5#85!5#85!%&>%5*5&5*/+!*%!-/:$%5!8?/+<!5#$!a2ANN!.$?/<'84#*,1!4$'#84%!<*($+!5#$!#*<#$'!-*@$-*#//.!/;!;8?*-*$%!:*5#!)/&+<$'!,#*-.'$+!*+!5#85!8<$!,85$</')B!o Z5#$'!5)4$%!/;!?$.*8!8-%/!$I4$'*$+,$!%&>%5*5&5*/+!8,'/%%!8<$!<'/&4%1!5#/&<#!*+!

.*;;$'$+5!4$',$+58<$%B!P44'/I*?85$-)!a[\!A!a_\!/;!'$%4/+.$+5%!.$?/+%5'85$!'$.&,5*/+!/'!%&>%5*5&5*/+!/;!?8<8C*+$!4&',#8%$%1!b`b!?/5*/+!4*,5&'$!'$+58-%!8+.!4&',#8%$%1!8+.!"`!%#/:!b`b!'$+58-%!8+.!4&',#8%$%!:#$+!4'/(*.$.!/+-*+$!8-5$'+85*($%B!

o "#/&<#!5/!8!-$%%$'!$I5$+5!Qa3\S1!5#$'$!*%!8!5$+.$+,)!8,'/%%!8--!8<$!<'/&4%!5/!.$A,'$8%$!4&',#8%$!/;!?/(*$!5*,@$5%!:#$+!'$%4/+.$+5%!8-%/!8,,$%%!/+-*+$!8-5$'+8A5*($%B!

• k$+$'8--)1!8%!5#$!4/4&-85*/+!%8?4-$!8<$%1!*5!5$+.%!5/!%&>%5*5&5$!#8'.!,/4)!-$%%B!!

&

J.%40'.&5/&5/'0452':*&',&45*0/=&+,1&-,/'./'9&7:./&5%<.)&7:5'&-,/'./'&':.*&7.1.&3,%'&70880/=&',&45*&+,19&1.%4,/)./'%&%:,7.)&%,3.7:5'&3,1.&+8.?06080'*&0+&41,;0).)&.?-8(%0;.&-,/'./'&5/)&61.5<20/=&,1&1.=(851&/.7%&;05&%'1.5380/.)&544%>

Figure 9 - Substitution of Traditional Media for Online Alternatives

Non-Tablet UsersTablet Users

Reduced or Cancelled Subscription

Upgraded TV Subscription

45%

65%

40%40% 45%

55%50%

20%

36%42%

39% 42% 42%33%

39%

7%

0%

10%

20%

30%

40%

50%

60%

70%

18-24 25-34 35-44 45-54 55+

30%

22%

26%

19%

24%

14%

14%

12%

16%

18%

18-24

25-34

35-44

45-54

55+

Tablet Users

Non-Tablet Users

35%42%

25%

55%

44% 42% 43%

28%

40% 39%

29%

43%

32% 33% 34%

12%

0%

10%

20%

30%

40%

50%

60%

18-24 25-34 35-44 45-54 55+

:011*6;$*.7$<*=)6$>3.73.9-$4$B3,,3.9.#--$()$C*;$

12

Willingness to Pay (for content) !!

L$.*8!$I$,&5*($%!8'$!,/''$,5!5/!>$!,/+,$'+$.!8>/&5!5#$!$;;$,5%!/;!.*<*58-!%&>%5*5&5*/+!8+.!8>/&5!5#$!'*%@!/;!4'*,$!,/?4'$%%*/+!*+!.*<*58-!QF*<&'$!03SB!!7&'($)!'$%4/+.$+5%!8,'/%%!8--!8<$!<'/&4%!.$?/+%5'85$!8!<$+$'8-!.$%*'$!5/!48)!-$%%!/'!5#$!%8?$!;/'!/+-*+$!8,,$%%B!!

!F"G!>$-*$($%!5#$%$!'$%4/+%$%!8'$!%#84$.!>)!$I4$'*$+,$!5/A.85$!:*5#!4'*,*+<!;/'!/+-*+$!($'%*/+%!/;!5#$%$!?$.*81!48'5*,&-8'-)!;/'!4'*+5!Q+$:%48A4$'%!8+.!?8<8C*+$%S1!:#$'$!5#$!/+-*+$!($'%*/+%!#8($!/;5$+!>$$+!;'$$B!

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• Z+-*+$!8,,$%%!5/!+$:%484$'%!Q%/?$!%&>%,'*>$'%S!• Y/??$',*8-!;'$$!,/+5$+5!;/'!"`!8+.!?/(*$%!!• P>*-*5)!5/!%#8'$!8,'/%%!.$(*,$%!;8(/'$.!;/'!?&%*,B!

j$%4/+%$%!8>/&5!:*--*+<+$%%!5/!48)!.*.!+/5!,#8+<$!?85$'*8--)!8?/+<!'$%4/+.$+5%!:#/!&%$.!58>-$5%!/'!+/5B!U/:$($'1!:*--*+<+$%%!5/!48)!./$%!(8')!>)!8<$!8+.!*+,/?$!-$($-B!

3%

8%

5%

4%

31%

38%

50%

43%

66%

55%

46%

53%

0% 50% 100%

Online Magazine

Online News Access

Streaming Movie

Downloaded Movie

More The Same Less

Figure 10 - Willingness to Pay for Online Access

Figure 11 - Willingness to pay for print / online bundling

22%

15%

18%

21%

13%

26%

18%

40%

48%

49%

49%

47%

37%

47%

38%

37%

33%

30%

40%

36%

36%

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

18-24

25-34

35-44

45-54

55+

All Tablet Users

Total Users

Yes No Maybe

:011*6;$*.7$<*=)6$>3.73.9-$4$>3.73.9-$+;$!;2#$)&$<#73*$D$?#@-2*2#6-$

13

Summary of Findings by Type of Media Newspapers Z+-*+$!8,,$%%!#8%!%&>%5*5&5$.!4'*+5!+$:%484$'%!85!8!#*<#$'!'85$!8+.!?/'$!'84*.-)!5#8+!8+)!/5#$'!?$.*8B!7*+,$!5#$!4/4&-8'*C85*/+!/;!5#$!G+5$'+$5!*+!5#$!$8'-)!0]]3%1!+$:%48A4$'!48*.!,*',&-85*/+!#8%!>$$+!*+!%$($'$!.$,-*+$1!8+.!48*.!,*',&-85*/+!*+!5#$!67!5/.8)!*%!8%!-/:!8%!*5!:8%!*+!0]2N1!$($+!5#/&<#!5#$!67!4/4&-85*/+!*%!?/'$!5#8+!./&>-$!:#85!*5!:8%!5#$+B!!P!@$)!.'*($'!/;!5#*%!*%!5#85!?&,#!/;!5#$!/+-*+$!8,,$%%!5/!+$:%484$'%!#8%!#*%A5/'*,8--)!>$$+!;'$$B!

"#$!%5&.)!%#/:$.!5#85!23\!/;!'$%4/+.$+5%!+$*5#$'!%&>%,'*>$.!5/!+/'!4&',#8%$.!*+.*A(*.&8-!,/4*$%!/;!+$:%484$'%1!8+.!5#85!5#$!*+,-*+85*/+!5/!4&',#8%$!#8'.!,/4)!+$:%48A4$'%!,/''$-85$.!!.*'$,5-)!:*5#!8<$l!5#$!)/&+<$'!5#$!8<$!<'/&4!5#$!-$%%!5#$!5$+.$+,)!5/!4&',#8%$!#8'.!,/4)!+$:%484$'!QF*<&'$!0M).!

!!!

"#$!;*+.*+<%!'$4'$%$+5!+/!V+$:W!+$:%!'$<8'.*+<!:#/!*%!$+<8<$.!'$8.*+<!#8'.!,/4)!+$:%484$'%B!!D#85!V*%W!+$:1!#/:$($'1!8'$!5#$!'$%4/+%$%!'$<8'.*+<!:*--*+<+$%%!5/!48)!;/'!/+-*+$!+$:%484$'%1!8+.!:#85!;$85&'$%!'$%4/+.$+5%!8'$!:*--*+<!5/!48)!;/'B!!

D#*-$!RN\!/;!'$%4/+.$+5%!%8)!5#$)!'$8.!+$:%!/+-*+$1!/+-)!M0\!48)!;/'!5#85!/+-*+$!8,,$%%1!8+.!8+/5#$'!R\!:#/!./!+/5!,&''$+5-)!48)!%585$!5#$)!:/&-.!>$!:*--*+<!5/!48)!;/'!*5B!d&5!%58&+,#!/+-*+$!+/+A48)$'%!:#$'$!8%@$.!%4$,*;*,8--)!:#85!;$85&'$%!5#$)!?*<#5!>$!:*--*+<!5/!48)!;/'1!2a\!/;!58>-$5!&%$'%!8+.!a2\!/;!+/+A58>-$5!&%$'%!*+.*,85$!5#85!5#$)!,/&-.!>$!*+.&,$.!5/!48)!;/'!V%/?$W!;$85&'$%B!!

F/'!$I8?4-$1!2a\!/;!0_AMN!

Figure 12 – Acquiring Hard Copy Newspapers

&

&":.&)5'5&%(==.%'%&':5'&/.7%454.1%&%:,(8)&,++.1&5&-,3260/.)&410/'&K&)0=0'58&%(6%-104'0,/9&5/)&'51=.'&'568.'&1.2%4,/)./'%&0/&':.&451'0-(8518*270880/=&5=.&15/=.%&',&,++.1&+.5'(1.%&034,1'5/'&',&'568.'&(%.1%>

52%

30%

23%

16%

13%

55+

45-54

35-44

25-34

18-24

13%

20%

19%

23%

21%

55+

45-54

35-44

25-34

18-24

31%

44%

54%

60%

63%

55+

45-54

35-44

25-34

18-24

50%

3%

19%

27%

0% 20% 40% 60%

Neither

Both Subscribe to and purchase individually

Purchase individually

Subscribe toSubscribe Purchase Individually Neither

:011*6;$*.7$<*=)6$>3.73.9-$4$>3.73.9-$+;$!;2#$)&$<#73*$D$?#@-2*2#6-$

14

)$8'!/-.%!8+.!N2A2N!)$8'!/-.%!*+.*,85$!5#85!5#$)!?*<#5!48)!;/'!8!.*<*58-!8+.!4'*+5!,/?>/!%&>%,'*45*/+!*;!>&+.-$.!5/<$5#$'B!

"#*%!<'/&4!8-%/!$I4'$%%$%!8!.$%*'$!;/'!&+*H&$!;$85&'$!%$5%!8+.!?/>*-$!844%B!L/%5!%$$?!8-'$8.)!5/!>$!4'*+5!>&)$'%B!"#*%!<'/&4!8+.!5#$!<'/&4!:#/!8'$!:*--*+<!5/!48)!;/'!4'*+5!8+.!/+-*+$!>&+.-$%!8'$!4'/>8>-)!5#$!-/:$%5A#8+<*+<!;'&*5!;/'!;&5&'$!/+-*+$!>&)$'%B! P-5#/&<#!'$%4/+.$+5%!8'$!$I5'$?$-)!.*%*+,-*+$.!5/!48)!;/'!4'*+5$.!,/+5$+51!5#$)!%#/:$.!%/?$:#85!?/'$!4'/4$+%*5)!5/!>&)!*;!4'/(*.$.!5#$!;/--/:*+<!;$85&'$%=!• cI,-&%*($!,/+5$+51!!• d'$8@*+<!8+.!'$<&-8'!+$:%1!8+.f/'!• m$:%!V844%WB!!

!P%!%#/:+!>$-/:!*+!F*<&'$!0a!58>-$5!&%$'%!#8($!8!.*;;$'$+5!%$5!/;!4'$;$'$+,$%!:#$+!*5!,/?$%!5/!:#85!;$85&'$%!5#$)!?*<#5!>$!:*--*+<!5/!48)!;/'B!D#*-$!$I,-&%*($!,/+5$+5!*%!5#$!5/4!4'$;$'$+,$!;/'!58>-$5!8+.!+/+A58>-$5!&%$'%1!4'*/'*5*$%!.*;;$'!%*<+*;*,8+5-)!>$5:$$+!5#$!<'/&4%!/+!/5#$'!;$85&'$%B!!

&

"568.'&(%.1%&:5;.&5&)0++.1./'&%.'&,+&4102,10'0.%&+1,3&/,/2'568.'&(%.1%&7:./&0'&-,3.%&',&7:5'&410/'&+.5'(1.%&':.*&30=:'&6.&70880/=&',&45*&+,1>

Tablet Users Non-Tablet Users1. Exclusive Content Exclusive Content

2. Custom Content Custom Content

3. App App

4. High Quality Photos Breaking news

5. Breaking news Industry-specific

6. Regular news Local news

7. Weather Weather

8. Exclusive Video Exclusive Video

9. Local Content High-quality video

10. Industry-specific Regular news

11. Sports In-dept editorial

12. Book / movie reviews Sports

13. In-depth editorial Book / Movie review

14. Opinions / Features Opinions / features

15. Other Other

More like an app!

Figure 13 – Features Worth Paying For

47%2%6%7%10%10%15%12%13%14%15%17%21%21%21%24%

65%2%4%6%5%5%6%9%8%8%8%9%8%10%13%15%

0% 10% 20% 30% 40% 50% 60% 70%

No, I wouldn't pay at all

Other

Opinions and features

Local content

Book or movie reviews

Sports news

In-depth editorials

Breaking news alerts

Weather

Regular news

Exclusive video footage

Industry-specif ic information

High-quality color photos

Streamlined apps with useful !

Customized content geared to !

Exclusive content


:011*6;$*.7$<*=)6$>3.73.9-$4$>3.73.9-$+;$!;2#$)&$<#73*$D$<*9*E3.#-$

15

Magazines G+!,/+5'8%5!5/!5#$!/+-)!23\!/;!'$%4/+.$+5%!:#/!4&',#8%$!#8'.!,/4)!+$:%484$'%1!R3\!/;!'$%4/+.$+5%!*+.*,85$!5#85!5#$)!8,H&*'$!#8'.,/4)!?8<8C*+$%!8+.!2[\!#8($!%&>%,'*4A5*/+%!Q02\!>/5#!%&>%,'*>$!8+.!4&',#8%$!*+.*(*.&8--)SB!!

!!!!!!!!!!!!!!!!!!!6+-*@$!+$:%484$'%1!:#$'$!4&',#8%$'%!.*;;$'!>)!8<$1!?8<8C*+$!>&)*+<!Q:#*,#!,8+!?/'$!$8%*-)!58'<$5!%4$,*;*,!?8'@$5%f%&>%,'*>$'%S!./$%!+/5!.*;;$'!.'8?85*,8--)!>)!8<$!<'/&41!*+,-&.*+<!5#/%$!:#/!./!+/5!>&)!8+)!?8<8C*+$%B!

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

Figure 14 – Acquiring Hard Copy Magazines

&

L0;./&':.&56080'*&,+&35=5F0/.%&',&).80;2.1&5/&5''15-'0;.9&-(215'.)&.?4.10./-.&5/)&-80-<2':1,(=:&+(/-'0,/580'*9&5/)&':.&.?4.-'.)&0/2-1.5%.&0/&'568.'&4./.'15'0,/9&7.&6.280.;.&':5'&35=52F0/.%&35*&%..&03241,;.)&,/80/.&1.;.2/(.&,44,1'(/0'0.%&0/&':.&+('(1.>&

30%

15%

13%

41%

0% 20% 40% 60%

Neither

Both Subscribe to and purchase individually

Purchase individually

Subscribe to

53%

36%

42%

40%

33%

55+

45-54

35-44

25-34

18-24

11%

11%

13%

16%

17%

55+

45-54

35-44

25-34

18-24

24%

35%

29%

31%

33%

55+

45-54

35-44

25-34

18-24

13%

17%

16%

14%

16%

55+

45-54

35-44

25-34

18-24

Subscribe

Purchase Individually Neither

Both Subscribe and Purch.

:011*6;$*.7$<*=)6$>3.73.9-$4$>3.73.9-$+;$!;2#$)&$<#73*$D$!#,#F3-3).$

16

Television Z($':#$-?*+<-)1!'$%4/+.$+5%!8,'/%%!8<$!<'/&4%!%5*--!4'$;$'!(*$:*+<!5$-$(*%*/+!/+1!:$--1!8!5$-$(*%*/+!QF*<&'$!02SB!!P%!;/'!%?8'54#/+$%1!/+-)!0\!/;!'$%4/+.$+5%!4'$;$''$.!5/!:85,#!"`!/+!5#$%$!.$(*,$%B!7&,#!-/:!'$%4/+%$%!8'<&$!8<8*+%5!5#$!$;;/'5%!/;!%/?$!,/?48+*$%!5/!>'*+<!?/>*-$1!.*<*A58-!5$-$(*%*/+!5/!5#$%$!%?8'54#/+$%1!%*+,$!*5!*%!,-$8'-)!5#$!.$(*,$!/;!-8%5!'$%/'5!;/'!"`!(*$:*+<B!!!!!!!!!!!!!!!

!!

!23\!/;!'$%4/+.$+5%!*+.*,85$!5#85!5#$)!:85,#!"`!/+-*+$B!Z;!5#$%$!M2\!*+.*,85$!5#85!5#$)!,&''$+5-)!48)!;/'!/+-*+$!(*$:A*+<B!P+!8..*5*/+8-!M3\!/;!'$A%4/+.$+5%!*+.*,85$!8!:*--*+<A+$%%!5/!48)!;/'!,$'58*+!,/+A5$+5!;$85&'$%!*+,-&.*+<!,/?A?$',*8-!;'$$!,/+5$+5!/'!8+)A5*?$f8+):#$'$!(*$:*+<B!G+!5/58-1!N2\!/;!'$%4/+.$+5%!8-'$8.)!48)!;/'!/+A-*+$!8,,$%%!5/!"`!/'!,/&-.!>$!*+.&,$.!5/!./!%/!:*5#!5#$!V'*<#5W!;$8A5&'$%B!

!P?/+<!58>-$5!&%$'%!8+.!+/+!58>-$5!&%$'%!8-*@$1!5#/%$!;$8A5&'$%!:/'5#!48)*+<!;/'!*+A,-&.$!,/??$',*8-!;'$$!(*$:A

*+<1!8+)5*?$f8+):#$'$!(*$:*+<!8+.!,/+5$+5!+/5!8(8*-8>-$!$-%$:#$'$!QF*<&'$!16SB!!!

Figure 15 – Preferred TV Viewing Devices

&

M83,%'&:58+&,+&1.2%4,/%)./'%&2&NOP&2&581.5)*&45*&+,1&,/80/.&5--.%%&',&"G&,1&7,(8)&6.&70880/=&',&45*&+,1&,/80/.&5--.%%&0+&41,;0).)&':.&C10=:'E&+.52'(1.%>&

&

M/&,;.17:.830/=&35Q,10'*&,+&1.2%4,/)./'%&41.+.11.)&',&75'-:&41,=153%&,/&':.01&"G&%.'%>&&R/8*&SP&0/)0-5'.)&%351'24:,/.%&51.&':.01&41.+.11.)&).2;0-.&+,1&75'-:0/=&"G&

1%

1%

1%

9%

12%

9%

67%

3%

1%

1%

0%

11%

21%

62%

0% 20% 40% 60% 80%

Other

Don’t know

Smartphone

Tablet

Desktop

Laptop

TV Set


TV Set

63%

68%

58%

67%

57%

55+

45-54

35-44

25-34

18-24

:011*6;$*.7$<*=)6$>3.73.9-$4$>3.73.9-$+;$!;2#$)&$<#73*$D$!#,#F3-3).$

17

L/'$!*+5$'$%5*+<!)$51!MN\!/;!58>-$5!&%$'%!8+.!02\!/;!+/+A58>-$5!&%$'%!8,5&8--)!&4<'8.A$.!5#$*'!"`!%&>%,'*45*/+%!>$,8&%$!5#$)!#8($!8,,$%%$.!"`!,/+5$+5!/+-*+$B!!G+!5#*%!:8)1!5#$!58>-$5!#8%!8,5$.!8%!8!.*%,/($')!5//-!5/!,/?4-$A?$+51!+/5!%&>%5*5&5$1!,/+A($+5*/+8-!&%8<$B!

"$-$(*%*/+!?8)!>$!5#$!/+-)!;/'?!/;!?$.*8!;/'!:#*,#!/+-*+$!8,,$%%!*%!8!,/?4-$A?$+51!8+.!5#85!./$%!+/5!;8,$!+$5!(*$:$'!-/%%$%!8%!8!'$%&-5!/;!5#$!8(8*-8>*-*5)!/;!.*<*58-!8-5$'+85*($%B!"#/&<#!+/5!

H&$'*$.!*+!5#$!%5&.)1!5#$!&4-*;5!?8)!>$!8!'$%&-5!/;!'$%4/+.$+5%!:8+5*+<!5/!:85,#!$4*A%/.*,!%$'*$%!/+!,/+($+5*/+8-!"`!5/!:#*,#!5#$)!:$'$!4'$(*/&%-)!$I4/%$.!/+-*+$B!!

P44'/I*?85$-)!03\!?/'$!58>-$5!&%$'%!&4<'8.$.!5#$*'!%&>%,'*45*/+%!5#8+!.*.!+/+A58>-$5!&%$'%B!!"#$'$!:$'$!+/!%*<+*;*,8+5!.*;;$'$+,$%!*+!&4<'8.$!>$#8(*/'!'$-85$.!5/!*+,/?$!/'!<$+.$'!QF*<&'$!0RSB!!

!!!!!!!!!!!!!

!!!!NR\!/;!58>-$5!&%$'%!8+.!a[\!/;!+/+!58>-$5!&%$'%!'$.&,$.!/'!%5/44$.!>&)*+<!/'!'$+5*+<!b`b%!/;!"`!4'/<'8??*+<!QF*<&'$!0]SB!!!


Figure 17 – TV Subscription Changes Because of Online Alternatives

Figure 18 – Subscription Upgraders by Age

Figure 19 – Change in DVD Purchase & Rental of TV Shows

&& &

& & && & &

& && & && & &

& & &&

24%

12%7%

56%

15% 13%8%

64%

0%10%20%30%40%50%60%70%

Upgraded subscription

Reduced subscription

Cancelled subscription

Made no changes

Tablet Users Non-Tablet Users

24%

19%

26%

22%

30%

55+

45-54

35-44

25-34

18-24

18%

16%

12%

14%

14%

55+

45-54

35-44

25-34

18-24

5%

48% 47%

3%

36%

61%

0%10%20%30%40%50%60%70%

Increased Stopped or reduced

No Changes


6%

45% 49%

4%

36%

61%

0%10%20%30%40%50%60%70%

Increased Stopped or reduced

No Changes


!"#

$%#&&#

!"#

"'#

!(# ()#

$*#

!"#$%#$& $'($&)*&#"$&(+(),(-,%&%,*%.'%/%

!"00%/!)(,12/%%&+)%.)#3

(#4$)0%& +)%.)#3 #"5&)&."6,7#8$&9(4&($&(,,

!!"

#$"

!$"

%&"

'&" '!"

&("

#%"

!"#$%#$& $'($&)*&#"$&(+(),(-,%&%,*%.'%/%

!"00%/!)(,12/%%&+)%.)#3

(#4$)0%& +)%.)#3 #"5&)&."6,7#8$&9(4&($&(,,

:;1<= <>1?= ?>1== =>1>= >>@

Tablet Users

Non-Tablet Users

Purchases Rental

p

p

p

g


:011*6;$*.7$<*=)6$>3.73.9-$4$>3.73.9-$+;$!;2#$)&$<#73*$D$<)F3#-$

18

Movies P%!:*5#!5$-$(*%*/+!(*$:*+<1!5#$!"`!%$5!*%!/($':#$-?*+<-)!5#$!4'$;$''$.!.$(*,$!;/'!:85,#*+<!?/(*$%!85!#/?$B!!

!!!!!!!!!!!!

!!

!P?/+<!5#/%$!:#/!48)!5/!:85,#!?/(*$%!/+-*+$1!58>-$5!&%$'%!8+.!+/+A58>-$5!&%$'%!48)!;/'!/+-*+$!?/(*$!,/+5$+5!:*5#!%*?*-8'!;'$H&$+,)!QF*<&'$!M0SB!

!

!

!

!

!

!

!

!

!

!

!

D#$+!8%@$.!:#85!;$85&'$%!:/&-.!*+.&,$!'$%4/+.$+5%!5/!48)!;/'!/+-*+$!?/(*$%1!5#$!;$85&'$!?/%5!:/'5#!48)*+<!;/'!*%!8,,$%%!5/!?/(*$%!:#*-$!%5*--!*+!5#$85$'%B!!P44'/I*?85$-)!0fN!5/!0fa!/;!'$%4/+.$+5%!:/&-.!>$!?/'$!:*--*+<!5/!48)!;/'!8,,$%%!5/!?/(*$%!+/5!8(8*-A8>-$!$-%$:#$'$!8+.!?/(*$%!:*5#!$I5'8!;$85&'$%B!"#$!;*+.*+<!?8)!*+.*,85$!5#85!5#$'$!*%!8!4/5$+5*8-!/44/'5&+*5)!5/!?8@$!8!<'$85$'!%:85#!/;!-*>'8')!,/+5$+5!8(8*-8>-$!/+A.$?8+.!5#'/&<#!+$:!/+-*+$!.*%5'*>&5*/+!48'5+$'%!Q>$)/+.!T&%5!m$5;-*I!8+.!U&-&SB!!Z+-)!8!($')!%?8--!4$',$+58<$!/;!)/&+<!'$%4/+.$+5%!:/&-.!+/5!>$!:*--*+<!5/!48)!85!8--!;/'!/+-*+$!"`!,/+5$+5B!

!

Figure 20 – Preferred Movie Viewing Devices

Figure 21 – Frequency of Paid Online Movie Viewing

&

& .)&).2& & ;0.&;0.72& & & G&%.'9&5%&

& & & ,)0-&"G&&

2%

1%

2%

7%

18%

69%

4%

1%

1%

0%

28%

66%

0% 20% 40% 60% 80%

Other

Don’t know

Smartphone

Tablet

PCs

TV Set


47%

24%

28%

54%

17%

29%

0% 20% 40% 60%

Infrequently/Never

Sometimes

Often/Regularly


:011*6;$*.7$<*=)6$>3.73.9-$4$>3.73.9-$+;$!;2#$)&$<#73*$D$<)F3#-$

19

Z;!5#$!'$%4/+.$+5%!:#/!%8*.!5#$)!:/&-.!+/5!48)!;/'!?/(*$%!85!8--1!'$%4/+.$+5%!/($'!22!-$8.!5#*%!,85$</')B!j$%*%58+,$!5/!48)*+<!8-%/!%$$?%!5/!*+,'$8%$!:*5#!8<$B!!

L/'$!5#8+!#8-;!/;!'$%4/+.$+5%!#8($!+/5!,#8+<$.!5#$*'!>$#8(*/'!'$<8'.*+<!4&',#8%$%!8+.!'$+58-%!/;!?/(*$%!8%!8!'$%&-5!/;!#8(*+<!/+-*+$!8,,$%%!QF*<&'$!MaSB!!U/:$($'=!

• P!%*<+*;*,8+5!4/'5*/+!/;!'$%4/+.$+5%1!a3\1!!,-8*?$.!5#$)!%5/44$.!/'!'$.&,$.!5#$*'!5#$85$'!</*+<!!!

• a_\!%5/44$.!/'!'$.&,$.!b`b!4&',#8%A$%1!8+.!!

• aR\!%5/44$.!/'!'$.&,$.!?/(*$!'$+58-%B!!!

!!!!!!!!!!!!!!!!!!!!

!


Figure 23 – Changes in Movie Engagement Because of Online Access

&

& %&1.)(-.&& .3./'&& & .1&3,;0.&

& &=1.5'.1&& 5/&),&

&(%.1%&& &:5;.&

& /80/.&582

65%58% 56%

8%12% 12%

22%26% 25%

4% 4%8%

0%

10%

20%

30%

40%

50%

60%

70%

Theater Going DVD Purchases DVD Rentals

No Change Stopped Reduced Increased

45%

35%

55%

10%

27%

3%

42%

52%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Movies that are not available elsewhere

Movie has extra features

Access while movie is still in the theater


18-24 25-34 35-44 45-54 55+

33%

21%

69%

19%22%

10%

40%

50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Movies that are not available elsewhere

Movie has extra features

Access while movie is still in the theater


18-24 25-34 35-44 45-54 55+

Tablet Users

Non-Tablet Users

:011*6;$*.7$<*=)6$>3.73.9-$4$>3.73.9-$+;$!;2#$)&$<#73*$D$<0-3'$

20

Music !

)L&%*,!:8%!8?/+<!5#$!;*'%5!?$.*8!>&%*+$%%$%!5/!>$!%$'*/&%-)!.*%'&45$.!>)!5#$!*+5$'+$5!8+.!.*<*58-!%&>%5*5&5*/+1!:*5#!4'/-*;$'85*/+!/;!LJa!4-8)$'%!8+.!5#$+!:*5#!5#$!%&..$+!844$8'8+,$!/;!m84%5$'!8+.!/5#$'!JMJ!?&%*,!%#8'*+<!:$>%*5$%B!P,,/'.*+<!5/!F/''$%5$'!j$%$8',#1!;'/?!0]]]1!5#$!)$8'!m84%5$'!%58'5$.1!5/!M33]1!6B7B!?&%*,!%8-$%!8+.!-*,$+%*+<!4-&+<$.!;'/?!^0NB[!>*--*/+!5/!^[Ba!>*--*/+B!

!!

D#*-$!./:+-/8.%!8'$!5#$!4'$;$''$.!8,,$%%!?$5#/.!QF*<&'$!MNS1!*5!*%!:/'5#!+/5*+<!5#85!%?8'5A4#/+$!&%$'%!8+.!58>-$5!&%$'%!#8($!8!#*<#$'!4'$;$'$+,$!;/'!%5'$8?*+<B!!"#*%!*%!48'5*,&-8'-)!*+5$'$%5*+<!:#$+!,/+%*.$'$.!*+!,/+T&+,5*/+!:*5#!*+,'$8%*+<!8./45*/+!/;!%?8'5A4#/+$%!8+.!58>-$5%1!8+.!:*5#!5#$!#*<#!:*--*+<+$%%!5/!48)!;/'!&+-*?*5$.!%5'$8?%!QF*<&'$!M2S1!48'5*,&-8'-)!8?/+<!5#$!)/&+<$%5!.$?/%B!

!"#$!?8T/'*5)!/;!-*%5$+$'%!4'$;$'!>$*+<!8>-$!5/!%#8'$!?&%*,!8,'/%%!.$(*,$%!5#$)!/:+B!"#$!%&'($)!8-%/!;/&+.!)/&+<$'!-*%5$+$'%!4'$;$'!4-8+%!:*5#!-8'<$!+&?>$'%!/;!%5'$8?%!/'!./:+A-/8.%B!!!

.

!!!!!!!!

Figure 24 – Device & Access Preference for Electronic Music

Figure 25 – Features Worth Paying For (by Age)

75%

83%

83%

73%

25%

17%

17%

27%

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

Tablet

Desktop Computer

Laptop Computer

Smartphone

Digital Streaming (through a subscription)Downloading (to own a digital f ile)

61%

33%

54%

62%

32%

44%

62%

28%

40%

52%

27%

47%

55%

22%28%

Music that can be easily shared across devices

A large number of downloads per month for only monthly subscription

Unlimited number of songs streamed for one monthly

subscription

18-24 25-34 35-44 45-54 55+

G+)0($>!5$

21

About FTI – Critical Thinking at the Critical Time !

!!B#[email protected]#)1./*!

!!

!!

United StatesAnnapolis Atlanta Baltimore Bethesda Boston Brentwood Charlotte Chicago ClevelandDallas Denver Detroit Houston Indianapolis King of Prussia Los Angeles MiamiMorristownNashville New York OaklandPhiladelphia Phoenix Pittsburgh Rockville Roseland Saddle Brook Salt Lake City San FranciscoSanta Barbara Seattle TucsonWalnut CreekWashington, D.C.WayneWest Palm Beach

ArgentinaBuenos Aires

AustraliaMelbournePerthSydney

BahrainManama

BelgiumBrussels

BrazilSão Paulo

CanadaTorontoVancouver

ChinaBeijingGuangzhouHong KongShanghai

ColombiaBogotá

FranceParis

GermanyFrankfurtMunich

IndiaNew Delhi

IrelandDublin

JapanTokyo

MexicoMexico City

PanamaPanama City

PhilippinesManila

RussiaMoscow

Singapore

South AfricaCape TownJohannesburg

SpainMadrid

United Arab EmiratesAbu DhabiDubai

United KingdomEpsomLondonManchesterNorthamptonStirling

Insight

Analysis

Data

nsight th management teams and stakeholders to evaluate, develop

lement corporate strategies that will improve top - and bottom - ults and increase enterprise value.

in-depth business plan reviews; operations, IT and network as-nts; synergy analyses, merger integration, performance im-ent, valuations and restructurings.

h Analysis

-specific analysis for communication, media and technology ses to shape metrics-driven strategic direction and improve op-l performance.

mic analysis from macro-level business and regulatory trends to vel subscriber and customer economics, such as customer ac-

n NPV, box office conversion of P&A spending and other indus-ific metrics.

p complex financial projections and business case models for investors and companies to identify key drivers of a business, e risks and upside opportunities, and run sensitivity analysis to

e potential business performance. etailed benchmarking databases with financial, operational and

unt statistics as well as M&A synergy benchmarks to each busi- alysis.

riven Decission-making

ages to pixels and terabytes to sound bites, FTI delves into data hat capture historical trends and describe actual performance.

G+)0($>!5$

22

!>&.&8>2%5#)!<)8>#-./!M)&34*%*!

!!!!!!!!!!!!!

!!!>%1%.&3!;2&)*6(2,&.%()!

!

!!!!

• Optimize CPM & sell-through

• Optimize sales efficiency

• Determine digital / print offers

• Segment customers to optimize revenues

• Optimize website engagement

• Upgrade mobile sites

• Design & integrate mobile into editorial work flows

• Digital ops to select & integrate mobile technologies and

• mobile apps Content / Digital Ops Web

SalesSub-scriptions

To stabilize and thrive, digital media companies must value their unique content, become more effective at eaching multi-media audiences based on highly creative sales, and create a “runway” for aggressive digital evenue growth: all this while right-sizing their expense base.

Resh

apin

g th

e O

pera

tiona

l M

odel

Reshaping the Customer Experience

Firms with a focus on strategy or operational Improvement

Firms with a focus on Marketing & Creative

The economic impact of digital disruption is growing Digital Transformation requires a unique skill-set

G+)0($>!5$

23

!@#3#'.!G).#2.&%),#).!<)$+*.24!J3%#).*!!

!!!!!!!!

!@#3#'.!"#$%&!<)$+*.24!J3%#).*!

!!!!!!!!!!!!!!

• AMC Theatres• Blockbuster Entertainment• Clear Channel Communications• Discovery Zone• Edwards Theatres• EMI – Capital Records• General Cinemas• HiT Entertainment• Jamba! Music Service • Midway Games

• Marvel Entertainment• Mobix Interactive• Musicland• NBC Vivendi• Recording Industry Association

of America • Regal Cinemas• RHI Entertainment • Sesame Street• SESAC• Sony Pictures

• Sony Music (/BMG)• The Terminator 4• Tower Records• USA Network• United Artist Theatres• Viacom (Rhapsody Music

Service)• Walt Disney Company• WestStar Cinemas (Mann)• Yari Film Group

G+)0($>!5$

24

M0(+.!./#!M+./(2*!!!

!

m$*-!d$+$.*,5!#8%!/($'!M3!)$8'%!$I4$'*$+,$!*+!%$+*/'!?8'@$5*+<1!>'8+.*+<!8+.!<$+A$'8-!?8+8<$?$+5!4/%*5*/+%!85!,/?48+*$%!%&,#!8%!P?$'*5'8.$1!PY!m*$-%$+1!Y*5*>8+@1!9'8;5!Qk$+$'8-!F//.%S!8+.!6+*-$($'B!G+!8..*5*/+!5/!#*%!$I4$'*$+,$!*+!-8'<$!,/'4/'8A5*/+%1!#$!#8%!,'$85$.!8+.!<'/:+!#*%!/:+!%&,,$%%;&-!,/?48+*$%B!

G+!M33a!#$!;/&+.$.!P;;-&$+5!b)+8?*,%1!nnY1!8!-$8.*+<!,&%5/?!?8'@$5*+<!'$%$8',#!;*'?!5#85!#$-4%!;*+8+,*8-!%$'(*,$%!/'<8+*C85*/+%!8+.!-&I&')!<//.%!,/?48+*$%!&+.$'A%58+.!5#$!.)+8?*,%!/;!5#$*'!?/%5!8;;-&$+5!,&%5/?$'%B!G+!b$,$?>$'!M33R!Fb!8,AH&*'$.!5#$!8%%$5%!/;!P;;-&$+5!b)+8?*,%!8+.!4&5!m$*-!*+!,#8'<$!/;!FbE%!/+-*+$!'$A%$8',#!,848>*-*5*$%B!

!

d'&,$!d$+%/+!*%!8!%$+*/'!?8+8<*+<!.*'$,5/'!*+!F"GE%!c,/+/?*,!Y/+%&-5*+<!4'8,5*,$!8+.!*%!5#$!<-/>8-!-$8.$'!/;!F"GE%!c+5$'58*+?$+5!8+.!L$.*8!J'8,5*,$B!U$!#8%!?/'$!5#8+!M3!)$8'%!/;!4'/;$%%*/+8-!$I4$'*$+,$!*+!8--!8%4$,5%!/;!?$.*8!8+.!5$,#+/-/<)B!U$!#8%!,/+%&-5$.!*+!8!>'/8.!'8+<$!/;!8'$8%1!*+,-&.*+<!%5'85$<)!8+.!?8'@$5!4-8++*+<1!$,/+/?*,!8+8-)%*%1!/4$'85*/+8-!$;;$,5*($+$%%1!*+5$--$,5&8-!4'/4$'5)!?8+8<$?$+5!8+.!G"!4'$48'$.+$%%B!!

L'B!d$+%/+!*%!8!'$,/<+*C$.!$I4$'5!*+!?$.*8!8+.!8.($'5*%*+<!8+.!#8%!#$-4$.!%/?$!/;!5#$!:/'-.E%!-$8.*+<!,/?48+*$%!8,#*$($!5#$*'!%5'85$<*,!</8-%1!*+,-&.*+<!7/+)!L&%*,1!L*,'/%/;51!d$'5$-%?8++1!`*8,/?1!g/&+<!o!j&>*,8?1!Z<*-()1!U8'4$'!Y/--*+%1!mdY!8+.!J$8'%/+B!L'B!d$+%/+!#8%!-$.!/($'!M33!4'/T$,5%!:*5#!,-*$+5%!8+.!8%!8!?$.*8!$I$,&A5*($!>/5#!*+!5#$!67!8+.!/($'%$8%B!"#$%$!4'/T$,5%!#8($!;/,&%$.!/+!%5'85$<*,!4-8++*+<1!'$($+&$!/45*?*C85*/+1!/4$'85*/+8-!$;;$,5*($+$%%!8+.!,/%5!,/+58*+?$+51!*+5$'+$5!.*%A5'*>&5*/+!8+.!-8'<$A%,8-$!G"!4'/T$,5!?8+8<$?$+5B!!

!

j/<$'!7,8.'/+!*%!8!L8+8<*+<!b*'$,5/'!*+!5#$!Y/??&+*,85*/+%1!L$.*8!8+.!c+5$'A58*+?$+5!4'8,5*,$!8+.!#8%!?/'$!5#8+!M2!)$8'%!/;!*+.&%5')!$I4$'*$+,$B!L'B!7,8.'/+!#8%!%*<+*;*,8+5!$I4$'*$+,$!:/'@*+<!:*5#!5$-$(*%*/+!8+.!?/5*/+!4*,5&'$!4'/.&,5*/+!8+.!.*%5'*>&5*/+!,/?48+*$%!8+.!?&%*,!,/?48+*$%!*+,-&.*+<!jUG!c+5$'58*+?$+51!c,#/!d'*.<$!c+5$'58*+?$+51!7/+)!L&%*,!8+.!cLG!QY84*58-!j$,/'.%S!8?/+<!/5#$'%1!8+.!:8%!8-%/!%$--$'!/;!5#$!'*<#5%!5/!*%$+!"&,-$).&/0&,!-")*12!!!

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

!

!

!

!

!

!

G+)0($>!5$

25

n&@$!7,#8$;;$'!*%!8!%$+*/'!?8+8<*+<!.*'$,5/'!*+!F"GE%!Y/'4/'85$!F*+8+,$!4'8,5*,$B!L'B!7,#8$;;$'!#8%!/($'!0[!)$8'%!$I4$'*$+,$!*+!5#$!,/??&+*,85*/+%1!?$.*81!$+5$'58*+A?$+51!5$,#+/-/<)!8+.!>&%*+$%%!%$'(*,$%!*+.&%5'*$%!8+.!-$8.%!F"GE%!$+5$'58*+?$+5!*+.&%5')!4'8,5*,$!:*5#*+!Y/'4/'85$!F*+8+,$B!U*%!:/'@!,/($'%!,/'4/'85$!;*+8+,$1!4$'A;/'?8+,$!*?4'/($?$+51!LoP!8.(*%/')1!4'*(85$!,84*58-!;*+8+,*+<1!%5'85$<)!8+.!>&%*A+$%%!4-8+!.$($-/4?$+51!>&%*+$%%!'$,/($')!8+.!'$%5'&,5&'*+<1!.&$!.*-*<$+,$1!8+.!(8-&85*/+B!!

L'B!7,#8$;;$'!#8%!:/'@$.!:*5#!5$-$,/?!%$'(*,$!4'/(*.$'%!8,'/%%!8--!%$,5/'%l!?$.*8!8+.!$+5$'58*+?$+5!>&%*+$%%$%!*+,-&.*+<!,8>-$1!?8<8C*+$%1!+$:%484$'%1!.*'$,5/'*$%1!5$-$(*%*/+!8+.!'8.*/!>'/8.,8%5*+<1!;*-?!4'/.&,5*/+!8+.!.*%5'*>&5*/+1!+$:!?$.*8!$+A5$'58*+?$+5!8+.!,/??$',*8-!4'*+5*+<l!5$,#+/-/<)!>&%*+$%%$%!*+,-&.*+<!%$?*,/+.&,A5/'%1!+$5:/'@!#8'.:8'$!8+.!%/;5:8'$1!$+5$'4'*%$!%/;5:8'$1!(*.$/!,/+;$'$+,*+<1!+$5:/'@!%5/'8<$l!8%!:$--!8%!5'8.*5*/+8-!?8+&;8,5&'*+<1!8+.!%$'(*,$%!,/?48+*$%B!!

!!!!!!!

! !

G+)0($>!5$

26

!

Table of Figures !Figure 1 - Digital Media Usage ....................................................................................................................................... 7!Figure 2 - Media Engagement ........................................................................................................................................ 7!Figure 3 - Online Consumption of Newspapers and Magazines ..................................................................................... 8!Figure 4 - Online Consumption of Movies and TV .......................................................................................................... 8!Figure 5 – Hours Spent Per Week on Social Networks .................................................................................................. 9!Figure 6 – Hours Spent Per Week on Social Networks by Age and Device ................................................................... 9!Figure 7 – Substitution of Traditional Media for Online Alternatives ............................................................................. 10!Figure 8 - Online Alternatives by Tablet / Non-Tablet Users ........................................................................................ 10!Figure 9 - Substitution of Traditional Media for Online Alternatives .............................................................................. 11!Figure 10 - Willingness to Pay for Online Access ......................................................................................................... 12!Figure 11 - Willingness to pay for print / online bundling .............................................................................................. 12!Figure 12 – Acquiring Hard Copy Newspapers ............................................................................................................. 13!Figure 13 – Features Worth Paying For ........................................................................................................................ 14!Figure 14 – Acquiring Hard Copy Magazines ............................................................................................................... 15!Figure 15 – Preferred TV Viewing Devices ................................................................................................................... 16!Figure 16 – Features Worth Paying For ........................................................................................................................ 17!Figure 17 – TV Subscription Changes Because of Online Alternatives ........................................................................ 17!Figure 18 – Subscription Upgraders by Age ................................................................................................................. 17!Figure 19 – Change in DVD Purchase & Rental of TV Shows ..................................................................................... 17!Figure 20 – Preferred Movie Viewing Devices .............................................................................................................. 18!Figure 21 – Frequency of Paid Online Movie Viewing .................................................................................................. 18!Figure 22 – Features Worth Paying For ........................................................................................................................ 19!Figure 23 – Changes in Movie Engagement Because of Online Access ...................................................................... 19!Figure 24 – Device & Access Preference for Electronic Music ..................................................................................... 20!Figure 25 – Features Worth Paying For (by Age) ......................................................................................................... 20!Figure 26 – Methods of Newspaper Access ................................................................... Error! Bookmark not defined.!Figure 27 – Newspaper Purchasing (by Age) ................................................................. Error! Bookmark not defined.!Figure 28 – Willingness to Pay for Online News (by Age) – Respondents Who Currently Pay for News ............... Error! Bookmark not defined.!Figure 29 – Willingness to Pay for Online News (by Age) – Respondents Who Currently Do Not Pay for News .. Error! Bookmark not defined.!Figure 30 – Features Worth Paying For .......................................................................... Error! Bookmark not defined.!Figure 31 – Willingness to Pay for Combo Print + Digital (by Age) ................................. Error! Bookmark not defined.!Figure 32 – Acquiring Hardcopy Magazines ................................................................... Error! Bookmark not defined.!Figure 33 – US Digital Magazine Consumption .............................................................. Error! Bookmark not defined.!Figure 34 – Reductions in Magazine Purchases in Light of Digital Alternatives ............. Error! Bookmark not defined.!Figure 35 – Willingness to Pay for Online Magazine Content (by Age) .......................... Error! Bookmark not defined.!Figure 36 – Preferred TV Viewing Device ....................................................................... Error! Bookmark not defined.!Figure 37 – Tablet Users’ Willingness to Pay for Online TV ........................................... Error! Bookmark not defined.!Figure 38 – Frequency of Paying for Online TV (by Age) ............................................... Error! Bookmark not defined.!Figure 39 – Willingness to Pay for Online TV (by Age) – Respondents who do not pay for Online TV Error! Bookmark not defined.!Figure 40 – Features That Would Induce Paying for Online TV – Respondents who do not Pay for Online TV .... Error! Bookmark not defined.!Figure 41 – Features Worth Paying For by Age ............................................................. Error! Bookmark not defined.!Figure 42 – Change in DVD Purchase or Rental of TV Shows ....................................... Error! Bookmark not defined.!Figure 43 - TV Subscription Changes Because of Online Alternatives ........................... Error! Bookmark not defined.!Figure 44 – TV Subscription Changes Because of Online Alternatives .......................... Error! Bookmark not defined.!Figure 45 – Age of Subscription Upgraders .................................................................... Error! Bookmark not defined.!Figure 46 – Subscription Modifications and Gender ....................................................... Error! Bookmark not defined.!Figure 47 – Preferred Movie Viewing Devices ................................................................ Error! Bookmark not defined.!Figure 48 – Frequency of Paid Online Movie Viewing .................................................... Error! Bookmark not defined.!Figure 49 – Willingness to Pay for Online (by Age) ........................................................ Error! Bookmark not defined.!Figure 50 – Movie Features Worth Paying For (Respondents who do not Pay for Online Content) ... Error! Bookmark not defined.!Figure 51 – Movie Feature Worth Paying For (by Age) .................................................. Error! Bookmark not defined.!Figure 52 – Currently Purchase or Rent DVDs ............................................................... Error! Bookmark not defined.!Figure 53 – Changes in Movie Engagement Due to Online Access ............................... Error! Bookmark not defined.!Figure 54 – Traits of Respondents Who Stopped or Reduced Movie Engagement ....... Error! Bookmark not defined.!Figure 55 – Preferred Method of Listening to Music ....................................................... Error! Bookmark not defined.!

G+)0($>!5$

27

Figure 56 - Device and Access Preference For Electronic Music ................................... Error! Bookmark not defined.!Figure 57 - Device Preference for Listening to Music (by Tablet/Non-Tablet Users) ...... Error! Bookmark not defined.!Figure 58 - Features Worth Paying For .......................................................................... Error! Bookmark not defined.!Figure 59 - Features Worth Paying For (by Age) ............................................................ Error! Bookmark not defined.!!

Documents

FTI - The Effect of Tablets on US Content Consumption …/media/Files/us-files/insights/white-papers/...SEPTEMBER 2011 THE EFFECT OF TABLETS ON US CONTENT CONSUMPTION A Guide to FTI’s