1 ThinkNow Media How Streaming Services & Gaming Is Disrupting Traditional Media Consumption Habits Report 2017 2 ThinkNow Media Survey Method Field Timing 303 Hispanics 512 Hispanics 1,261 Total Base Sizes Online via ThinkNow Researchs Omnibus Study Regional Coverage National Screening Criteria 261 Non-Hispanic Whites 262 African-Americans 226 Asian-Americans 18-64 years of age March, 2017 Methodology What is it? ThinkNow Media is a nationwide survey that looks at Americans media habits and attitudes. The study looks at Americans as a whole and by key race/ethnic segments. 3 Who We Are An authority on creating and managing research products that help clients gather insights about rapidly changing consumer segments. Conduct online, behavorial, in-person and telephone research. Research experience specifically in the Hispanic, African American, Asian and Total markets. Experience in hard-to reach demographic sub-groups. Only full-service market research company that owns & operates an in-house Hispanic panel. Servicing Fortune 500 clients, ad agencies, non-profits and other market research companies. 4 Our Services QUANTITATIVE QUALITATIVE MIXED MODE infothinknowresearch 818-843-0220 thinknowresearch ONLINE MARKET RESEARCH COMMUNITIES CONCEPT AND COPY TESTING ADVERTISING EFFECTIVENESS BEHAVIORIAL TRACKING WEBSITE USABILITY STUDIES OMNIBUS SURVEYS ATTITUDES & USAGE BRAND TRACKING PRODUCT TESTING ONLINE & OFFLINE QUALITATIVE ONLINE PANEL INTERCEPTS PHONE 5 Research Results 6 Digital cable is the most popular type of TV service, followed by satellite. 38% 28% 24% 19% 9% 38% 26% 24% 16% 10% 38% 30% 24% 20% 8% 41% 27% 26% 18% 12% 32% 17% 26% 16% 13% Digital Cable (more channels thanCable TV)Satellite TV Cable TV (non-digital) Fiber Optic TV (Verizon FiOS,AT&T U-verse)Broadcast (antenna) onlyType of TV Service Received at Home Total Market Hispanics Whites African American AsiansQ13. What type of TV service do you receive in your home? Total Market (n=1,261), Hispanics (n=512), Whites (n=261), African Americans (n=262), Asians (n=226) indicates statistically significant difference vs. total market at the 95% confidence level 7 African-Americans are the most likely to watch TV this way while Asians are the least likely. Asians also over-index on YouTube. 45% 22% 8% 10% 2% 5% 3% Live/when the show airs on network TVNetflixYouTubeRecorded via a DVRDVD (Rented or purchased)Amazon PrimeHuluHow Watch TV Most Often Q. How do you watch TV programming most often? Total Market (n=1,261), Hispanics (n=512), Whites (n=261), African Americans (n=262), Asians (n=226) indicates statistically significant difference vs. total market at the 95% confidence level Fewer than half of Americans say their primary way of watching programming is live network TV Hispanics Whites African-Americans Asian-Americans 44% 45% 54% 38% 24% 22% 17% 19% 11% 6% 9% 19% 8% 11% 10% 8% 2% 2% 2% 2% 3% 6% 2% 5% 6% 2% 1% 5% Total Market 8 Hispanics Whites African-Americans Asian-Americans 64% 69% 73% 55% 61% 59% 55% 49% 56% 47% 50% 59% 31% 42% 37% 24% 29% 38% 32% 19% 26% 33% 28% 33% 25% 29% 25% 20% 11% 13% 11% 12% 10% 12% 8% 7% 7% 9% 7% 5% 4% 8% 5% 3% Netflix is especially popular among Hispanics. YouTube takes the advantage among Asian Americans 68% 58% 50% 38% 34% 31% 27% 12% 11% 8% 6% Live/when the show airs on network TVNetflixYouTubeRecorded via a DVRDVD (Rented or purchased)Amazon PrimeHuluRokuApple TVGoogle TVSlingTVAll Methods of Watching TV Programs Q. What are the all ways that you watch TV programming? Total Market (n=1,261), Hispanics (n=512), Whites (n=261), African Americans (n=262), Asians (n=226) indicates statistically significant difference vs. total market at the 95% confidence level Streaming services like Netflix and YouTube are becoming just as popular as live TV Total Market 9 Older viewers are more likely to watch live TV programs All Methods of Watching TV Programs: Total Market by Age Q. How do you watch TV programming most often? Total Market (n=1,261), Males (n=609), Females (n=652), 18-34 age (n=568), 35-54 age (n=501), 55-64 age (n=192) Letters indicates statistically significant difference at the 95% confidence level The popularity of TV streaming services is driven mostly by Millennials 18-34 (C) 35-54 (D) 55-64 (E) Live/when the show airs on network TV 51% 75%C 84%C Netflix 77%DE 54%E 32% YouTube 70%DE 45%E 22% Amazon Prime 38%E 30%E 19% Hulu 36%E 27%E 12% Apple TV 17%DE 10%E 4% Google TV 12%E 8% 4% SlingTV 9%E 5% 3% Roku 12% 11% 15% 10 56% 68% 60% 73% 56% 66% 61% 76% 43% 61% Watched an entire season in one weekend Watched an entire season over the span of one weekTotal Market Hispanics Whites African American AsiansHispanics and African-Americans are most likely to binge watch; Asian-Americans are the least likely to. Most adults say they have binge-watched at some point Total Market (n=1,261), Hispanics (n=512), Whites (n=261), African Americans (n=262), Asians (n=226) indicates statistically significant difference vs. total market at the 95% confidence level Q. Have you ever watched an entire season of one of your shows. In one weekend or over the span of one week? Have Watched Entire Season Over a Weekend/Week 11 This is fairly consistent across the segments. Binge viewers prefer to watch an average of nearly 4 back-to-back programs Total Market (n=1,261), Hispanics (n=512), Whites (n=261), African Americans (n=262), Asians (n=226) indicates statistically significant difference vs. total market at the 95% confidence level 3.7 3.8 3.6 3.9 3.5 MeanTotal Market Hispanics Whites African American AsiansQ. Ideally, about how many episodes of your favorite show would you prefer to see in one viewing Average Number of Shows Would Prefer to Watch 12 32% 33% 33% 24% 39% How Likely to Watch TV in Near Future Q. Thinking about the near future (2-3) years from now, how do you see yourself watching TV programming? Total Market (n=1261), Hispanics (n=512), Whites (n=261), African Americans (n=262), Asians (n=226) indicates statistically significant difference vs. total market at the 95% confidence level Exclusively/Mostly Online/Streaming By 2020, nearly 1/3 of consumers will be streaming most or all of their TV shows African Americans, however, are adopting at a slower rate than other segments 20% 17% 21% 24% 14% 22% 21% 22% 22% 19% 26% 28% 24% 30% 27% 25% 26% 24% 20% 32% 8% 8% 9% 3% 8% Total Market Hispanics Whites AfricanAmericansAsian AmericansExclusively online/streamingMostly online/streamingEquallyMostly on cable/satelliteExclusively on cable/satellite 13 32% 26% 39% 42% 27% 27% Total Males (A) Females (B) 18-34 (C) 35-54 (D) 55+-64 (E)Will Be Streaming TV Programs Mostly/Exclusively in Near Future Total Market by Gender and Age Q. Thinking about the near future (2-3) years from now, how do you see yourself watching TV programming? A Younger viewers are the most likely group to stream exclusively in the future More females see themselves streaming mostly/exclusively compared to males. DE Exclusively/Mostly Online/Streaming Total Market: Males (n=609), Females (n=652), 18-34 age (n=568), 35-54 age (n=501), 55-64 age (n=192) Letters indicates statistically significant difference at the 95% confidence level 14 62% 38% 18% 16% I am used to it/No need to changeMore variety of programming thanonlineSports programming not availableonlineSpanish-language programming74% 66% 51% 39% 37% 7% Less expensive than cable/satelliteI can watch programs on my ownscheduleI can watch back-to-back episodes ofthe same programIt's the future of TVCertain shows I like are only availableonlineI prefer it for my childrenLower cost and ability to watch programs on your own schedule are the primary reasons for switching to streaming For those who prefer cable/satellite, its mostly about comfort. Prefer Cable/Satellite Prefer Online/Streaming Q. What are the all reasons why you see yourself watching mostly or only cable/satellite versus online streaming? Among those who said cable/satellite (n=509), Among those who said online/streaming (n=408) indicates statistically significant difference vs. total market at the 95% confidence level Preferences 15 Frequency of Using Multiple Devices at a Time 8% 5% 8% 7% 8% 12% 10% 12% 10% 15% 2% 4% 2% 4% 2% 15% 15% 15% 14% 15% 15% 16% 14% 16% 20% 48% 50% 48% 50% 40% Total Market Hispanics Whites African Amercian AsiansSeveral times a dayAbout once a dayA few times a weekAbout once a weekI rarely do thisNeverS S Q. How often do you use/view more than one device at a time? Total Market (n=1261), Hispanics (n=512), Whites (n=261), African American (n=262), Asians (n=226) indicates statistically significant difference vs. total market at the 95% confidence level 63% 66% 63% 66% 60% Daily or more The use of multiple devices at one time is quite common This is consistent across segments 16 Hispanics Whites African-Americans Asian-Americans 46% 46% 48% 36% 38% 42% 42% 39% 40% 40% 41% 28% 20% 28% 22% 15% 23% 19% 22% 22% 21% 18% 17% 18% 17% 18% 14% 13% 11% 11% 10% 6% 23% 25% 20% 31% In general, Asian-Americans are the least prone to play video games. 46% 41% 39% 25% 20% 19% 17% 10% 24% Video Game Related Activities Q. Which of the following video-game related activities have you done in the past 12 months? Total Market (n=1,261), Hispanics (n=512), Whites (n=261), African Americans (n=262), Asians (n=226) indicates statistically significant difference vs. total market at the 95% confidence level Nearly half have played a video game on their mobile device Total Market Played a video game on a mobile device such as a cellphone or tablet Played a video game on a laptop or desktop computer Played a video game on a console video gaming system (e.g., PlayStation, X-Box, Wii, etc.) Used a gaming console to stream other forms of entertainment such as movies or TV programs Watch others play online games live Watch recorded videos of others playing video games Played a video game in an arcade Attend live events to watch others play video games None of the above 17 Males (A) Females (B) 18-34 (C) 35-44 (D) 55-64 (E) Played a video game on a mobile device such as a cellphone or tablet 42% 50% 56%E 46%E 24% Played a video game on a laptop or desktop computer 42% 40% 48%E 39% 33% Played a video game on a console video gaming system (e.g., PlayStation, X-Box, Wii, etc.) 41% 37% 59%DE 35%E 13% Used a gaming console to stream other forms of entertainment such as movies or TV programs 25% 25% 41%DE 20%E 7% Watch others play online games live 24% 16% 32%DE 16%E 8% Watch recorded videos of others playing video games 24%B 13% 32%DE 14%E 3% Played a video game in an arcade 22%B 13% 26%DE 15%E 5% Attend live events to watch others play video games 15%B 6% 19%DE 8%E 1% None of the above 22% 27% 8% 24% 55%CD Gamers tend to be in the 18-34 age group. Video Game Related Activities Total Market by Gender & Age Q. Which of the following video-game related activities have you done in the past 12 months? Directionally more females reported playing video games on a mobile device compared to males Total Market: Males (n=609), Females (n=652), 18-34 age (n=568), 35-54 age (n=501), 55-64 age (n=192) Letters indicates statistically significant difference at the 95% confidence level 18 Demographics 19 Hispanics n=512 White n=261 African-American n=262 Asian n=226 Hispanics n=512 White n=261 African-American n=262 Asian n=226 Male 51% 50% 48% 47% Born in the U.S. 60% 93% 91% 38% Female 49% 50% 52% 53% Moved here 40% 7% 9% 62% Age Household Income 18 to 34 46% 34% 41% 39% Under $40,000 (Net) 43% 27% 47% 23% 35 to 64 54% 66% 59% 61% $40K $79K (Net) 33% 29% 29% 26% Mean age 37 42 39 39 $80K plus (Net) 21% 36% 18% 42% Median income ($000) $45 $68 $40 $75 Census Region Northeast 15% 19% 17% 21% Educational Attainment Midwest 9% 26% 17% 12% Not high school graduate 4% 4% 5% 2% South 37% 35% 57% 23% High school grad/GED 18% 15% 22% 8% West 40% 20% 9% 44% Some college/AA/Trade 42% 35% 41% 28% BA/BS or higher 36% 46% 32% 62% Sample Profile 20 Sample Profile Metric Hispanics n=512 Language Spoken at Home Spanish only 10% Spanish mostly 27% Spanish and English equally 34% English mostly 15% English only 14% Country of Origin Mexican or Mexican-American 64% Puerto Rican 12% Cuban 6% Dominican 3% Central American 6% South American 12% Acculturation Less Acculturated 20% Bicultural 55% More Acculturated 25%