O C T O B E R 5 , 2 0 1 5

A l g o r i t h m s , B r a n d s a n d C o n n e c t i o n s

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ABOUT THE STUDY

AUDIENCEAdults 18-54

HOW MANYn=2,000

ACCURACYMargin of Error=±2.2% at 95%

confidence interval

WHENData Collection Occurred

August 7–13, 2015

HOWOnline Survey

Conducted by Research Firm Edelman Berland

COUNTRIESNinth Annual StudyANNUAL

9 th

*

*Results shown are US only unless otherwise indicated

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NETWORKED ENTERTAINMENT

Digital Entertainment, Rights and Technology

Digital Entertainment and Technology

SocialEntertainment

Entertainment “Selfie-Style”

NetworkedEntertainment

Gateway to Individuals Share This Come Play and Share

Immediate Engagement

Algorithms, Brands, Connections

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TECHNOLOGY INDUSTRY LEADS IN CONSUMER TRUST

Q29 Please indicate how much you trust businesses in each of the following industries to do what is right. Please use a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” 4

79% 71% 57%

TECHNOLOGY ENTERTAINMENT MEDIA

Trust Industries to “Do What is Right”: Showing Top 4 Box (6-9 on 9 pt. Scale)

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CONSUMERS TRUST CONTENT CREATORS AND DISTRIBUTORS TO EQUALLY CREATE ENTERTAINING

CONTENT

Showing Top 4 Box (6-9 on 9 pt. Scale)Q30 Please indicate how much you trust the entertainment content created by the following sources to be entertaining – that is, the degree to which you would trust videos or other entertainment content to be entertaining if you only knew who created it. Please use a 9-

point scale where one means that you “do not trust it at all” and nine means that you “trust it a great deal.”

74% 73% 72%Online streaming video platform(Netflix, Hulu, Amazon Prime)

Traditional broadcast network(NBC, CBS, ABC, etc.)

Cable network(HBO, USA, TNT, etc.)

Trust content to be entertaining

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In just 5 years, a dramatic shift…

TOP OF MIND ENTERTAINMENT COMPANIES HAVE BEEN REDEFINED

Q3 When you think about entertainment (e.g. television, movies, internet, etc.), which companies come to mind? OPEN END

10 of top 10 Companies cited are

traditional networks/studios

#1 company Cited is an online streaming platform

2 of top 5 companies are online streaming platforms

2010 2015

7

2010 2013 20151

2

3

4

5

6

7

8

9

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THE RISE OF ONLINE STREAMING

Q3 When you think about entertainment (e.g. television, movies, internet, etc.), which companies come to mind? OPEN END

Traditional networksand studios

Online streaming platform companies

Cable channel

Cable company

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CONSUMERS ARE INUNDATED WITH CONTENT, BUT LOOKING FOR MORE…

Q12 When watching entertainment content, how often are you simultaneously using another device (e.g. television, computer, smartphone, tablet, etc.)?

Q15 / Q15a: How likely are you to use multiple devices while watching entertainment content to…? (Asked of those who use multiple devices)

93%Use multiple devices SIMULTANEOUSLY

85%Likely to multi-task using

another device to do something UNRELATED

to the content they are watching

79%Search/Google for content RELATED

to what they are watching

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MOST CONSUMERS COMFORTABLE WITH PREDICTIVE RECOMMENDATIONS FOR ENTERTAINMENT

10Q10 Please indicate how likely you would be to engage in the following activities.

Q33 And thinking about entertaining content, how comfortable are you with the idea of predictive recommendations? Please rate your response on a scale of 1-5, where 1 means “not comfortable at all,” and 5 means “extremely comfortable.”

60%

are very or somewhat likely to “provide personal information to secure more tailored recommendations online”

Only 5% are “not comfortable at all” with the idea of predictive recommendations…

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DESPITE SOME RESERVATIONS, PREDICTIVE RECOMMENDATIONS HELP CUT THROUGH THE

CLUTTER

Breach of privacy 52%

Distracting 46%

Enhance my viewing experience 80%

Provide wider exposure to a variety of content 74%

Q37 Thinking about entertaining content and the platforms you use to discover it, how much do you agree with each of the following statements when it comes to predictive recommendations? Shown: % Agree

Help me navigate and prioritize the overwhelming amount of entertainment content at my fingertips

69%

STREAMING PLATFORM RECOMMENDATIONS MORE VALUABLE THAN SOCIAL NETWORK

Q38 And which of the following uses of “predictive recommendations” are most beneficial to you? (Answer choices abbreviated) 12

43%Video Streaming

Platform

37%Music Streaming

Platform

29%Social Media

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TRUSTED BRANDS DRIVE ENTERTAINMENT SPENDING

Q9 Below are some things people might take into consideration when spending money on entertainment. How important are each of the following things to you, personally, when you are spending money on entertainment content?

Entertainment Spending Drivers: Showing Top 2 Box (Extremely / Somewhat Important)

Entertainment Spending Drivers:

Being able to access the entertainment immediately

Recommendation from a “real life” friend or family member

Positive reviews from people I know

A trusted company/brand created the actual entertainment content

Positive reviews from professional critics (in newspapers, online, on TV, etc.)

Popularity of the entertainment

Recommendation from or connection to a brand or product I like

Being one of the first to enjoy new entertainment

Being one of the first to share about my experience with the entertainment

Recommendation from a social media (i.e. YouTube) celebrity

Recommendation from a traditional celebrity

78%

70%

68%

65%

57%

55%

49%

49%

47%

42%

35%

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TRUSTED RELATIONSHIPS DRIVE VIEWS OF BRANDED CONTENT

Likely to view branded content that is…: Showing Top 2 Box

Q27 How likely would you be to watch this type of entertaining content (not obvious advertising) which each of the following characteristics? [TOP TWO BOX ON 5-POINT SCALE]

BRANDS

Company/product I use regularly and/or

a company I trust

85%

VIDEO STREAMING PLATFORMS

Video streaming platforms

78%

FRIENDS & FAMILY

Friend or family member

84%Featured by a news outlet like BuzzFeed

NEWS OUTLET

64%

Likely to view entertaining content that is created by…

16

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CONSUMERS TRUST CONTENT CREATORS, DISTRIBUTORS

AND BRANDS TO EQUALLY CREATE ENTERTAINING CONTENT

Showing Top 4 Box (6-9 on 9 pt. Scale)Q30 Please indicate how much you trust the entertainment content created by the following sources to be entertaining – that is, the degree to which you would trust videos or other entertainment

content to be entertaining if you only knew who created it. Please use a 9-point scale where one means that you “do not trust it at all” and nine means that you “trust it a great deal.”

74% 73% 72%Online streaming video platform(Netflix, Hulu, Amazon Prime)

Traditional broadcast network(NBC, CBS, ABC, etc.)

Cable network(HBO, USA, TNT, etc.)

Trust Content to be Entertaining:

Brand you buy

75%

HOW CONSUMERS DEFINE COMPELLING ENTERTAINMENT CONTENT

Q27 How likely would you be to watch this type of entertaining content (not obvious advertising) which each of the following characteristics)? [TOP TWO BOX ON 5-POINT SCALE] Branded content definition: Entertaining content (i.e. videos) produced by brands or companies that are not obvious advertisements

teaches me something new

INFORMATIVE

87%is part of

a series of videos

CONNECTED

78%fits naturally with the

company sponsoring it

AUTHENTIC

76%includes

a personal story

PERSONAL

74%

COMPELLING ENTERTAINMENT CONTENT DRIVES BUSINESS RESULTS

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Chose to buy the company’s products or services

Recommended the company to a friend, family member or colleague

Shared positive company opinions or experiences online

Paid attention to future content from the company37%

34%

29%

29%

Q28 And thinking back over the past 12 months, have you taken any of the following actions in relation to good or engaging content produced by a brand (again, that is not an obvious advertisement)?

20

“ENTERTAINMENT NETWORKED”

Most consumers comfortable with predictive recommendations for entertainment

Trusted brands drive engagement

Relationships drive results for brands

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