The State of Video Entertainment in the U.S.

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CONFIDENTIAL AND PROPRIETARY © 2013 by Frank N. Magid Associates, Inc. Any duplication, reproduction or usage of this document or any portion thereof without the written consent of the firm is prohibited. The State of Video Entertainment in the U.S.

Transcript of The State of Video Entertainment in the U.S.

Page 1: The State of Video Entertainment in the U.S.

CONFIDENTIAL AND PROPRIETARY © 2013 by Frank N. Magid Associates, Inc. Any duplication, reproduction or usage of this document or any portion thereof without the written consent of the firm is prohibited.

The State of Video Entertainment in the U.S.

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Who We Are: Frank N. Magid Associates, Inc. is a leading research-based consulting firm with expertise in media, communications and entertainment.

Fifty Years and Counting: Since our first engagement with a local television station 50 years ago, we have been at the forefront of innovation in the media, entertainment and communications industries.

Coverage of Multiple Media Platforms: We boast robust practices across all media platforms including print, broadcast and cable television, the Web, gaming and wireless.

Exceptionally Qualified Team: Our team possesses PhDs and Master’s degrees in statistics, marketing, media, engineering, journalism, anthropology, sociology, strategic communications and business, including analysts with advanced capabilities in qualitative and quantitative research methodologies.

Experienced Strategic Consultants: Our strategic consultants include past operators in the print, television, Web, gaming and mobile industries.

Global Coverage: Our team of 150 professionals operates out of offices in Minneapolis, New York, Los Angeles, San Francisco, Chicago, Atlanta, Dallas and Cedar Rapids. Magid’s global network of partners extends across 44 countries to support our portfolio of international clients.

Magid Pedigree

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Magid is renowned for its work in the media and entertainment industry, with both traditional and emerging players. We help develop and launch new products and services and work with clients to re-imagine their businesses, furthering content, marketing, distribution, advertising sales, programming, promotion, and branding efforts.

Internet Games Print Media Mobile Cable MSOs TV & Cable Networks

About Magid

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Magid’s 2016 Video Entertainment Study

• Frank N. Magid Associates conducted an online quantitative survey with 1,600 U.S. online consumers ages 8 and older

• The study was conducted March 4 - 14, 2016• Topics include TV related device ownership, use and future

adoption, current and future use of paid content sources for TV shows and movies and attitudes regarding specific brands.

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Home and Mobile Video

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75%

17%9%

3%

69%

25%

11% 7%

79%

42%

13% 13%

201320152016

The Rise of Smart TVs

Q.1 How many working TV sets do you have in your home? Q.12 Which of the following best describes devices you have built-in or connected to any TV set in your home, or devices that you plan to acquire?

HDTV Smart TV 3D TV 4K TV

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7Q.2 Which company provides your television service?

Pay TV Subscriptions Remain Steady

Total Pay TV Cable Satellite Telco TV No pay TV

87%

49%

29%15% 13%

89%

47%

25% 21%11%

89%

44%

25% 24%11%

2013 2015 2016

4% pay for services from multiple providers

Currently pay for each service(Based on total mention)

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8Q.31 How likely are you to cancel your television service from [pipe: Q4] in the next six months?

1 - Not at all likely

2

3

4

5 - Extremely likely

47%

16%

19%

10%

7%

47%

17%

18%

10%

7%

2015, N=1,216

Cord Cutting Is A Reality For A Small Set of Pay TV Subscribers; Millennials Most Likely

Of these, 4 in 10 plan to go without pay TV at all after canceling, equivalent to 14% of all households.

Among those who have pay TV and use streaming devices, this proportion reaches 18%.

Likelihood To Cancel Current Pay TV Service In Next Six Months

(Based on current subscribers) 56% of potential cord cutters cite OTT as a reason to cut the cord.

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Connected TV: Streaming Video To Your TV

Q.20.1 Which of the following do you connect to a TV in order to watch TV shows and movies streaming from the Internet on a TV screen? Select all that apply.

None of these

TiVo

A computer connected to the TV

A Blu-ray disc player

A smart TV

Internet streaming device

A video game console

41%

4%

22%

18%

16%

20%

30%

26%

3%

17%

22%

26%

31%

33%

20162015

Methods Used For Streaming Video To A TV

74%

Connect a TV to the Internet for streaming - up from 59%

in 2015

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Millennial And Plural Generations Streaming Content To Digital Devices. Your Smartphone Is A TV

Q.12.3 Considering all of the following sources you may use to view any type of video content, in a typical week, what percentage of all your video viewing is done using each of the following?

31%

14%10% 10% 8% 11% 10%

6%

29%

13% 11% 12% 9% 12% 10%4%

39%

17%10% 10% 8% 6% 7% 3%

55%

15%8% 5% 8%

4% 3% 2%

Plurals Millennials Xers Boomers

Proportion of Video Viewing Time Spent With Each Platform(Based on total mention)

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Almost 50% Of Mobile Owners/Users Are Watching Video At Least Once A Day On A Smartphone; Skew 18-34, Slightly More Male, And More DiverseHow often do you watch video on the following devices?

(Among Total, daily+ shown)

Magid Mobile Study - 2016: Total N=2500. Q110: How often do you watch video?

Smartphone Computer Tablet Connected/Smart TV

Console

46%

39%

30%

18%

13%

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Netflix Is The Dominant TV Show/Movie Source Overall YouTube Is Not Just About Short-form/UGC

Q.15.4 From which of the following free streaming services do you EVER watch full-length TV shows or movies from the Internet, on any screen (television, computer, or tablet screen)? Select all that apply.

None of these

Vessel

Torrent site

Showtime Anytime

TBS.com

CNN.com or CNN video apps

WatchESPN

Fox.com

Google Play

Crackle

ABC.com

YouTube

32%2%1%3%4%4%5%6%6%7%8%8%8%9%10%11%11%12%13%15%

19%20%

40%

Paid Sources Ever Used For TV Show Or Movie Streaming

None of these

Seeso

Noggin

XFINITY Streampix

Crunchyroll

CinemaNow

CBS All Access

Apple TV

Hulu Plus

Netflix

25%1%2%2%3%3%4%4%5%5%5%5%6%7%9%

16%20%

34%58%

Free Sources Ever Used For TV Show Or Movie Streaming

The TV show and movie industries have convinced consumers that the best way to enjoy long-form content online is through a paid subscription, the only content category to successfully

do so.

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13Q.12.6 How often do you think you will de each of the following six months form now, compared to how much you do this now?

Binge Viewing – The New Video Viewing Standard

Watch SVOD original series

Stream TV shows and movies over the Internet

when I am traveling

Purchase digital versions of movies that I own "in the

cloud"

Watch Live

5%

4%

6%

9%

9%

12%

4%

5%

6%

8%

9%

9%

10%

9%

43%

51%

51%

49%

52%

49%

61%

31%

26%

24%

21%

19%

19%

16%

16%

13%

11%

11%

11%

9%

10%

Much less often than I'm using now Somewhat less The same amount Somewhat moreMuch more often than I'm using now

Momentum Of Watching Video By Viewing Type(among those who watch in each of the following ways)

% of respondents watch this

way79%

85%

68%

61%

62%

57%

95%

Momentum

30%

24%

15%

9%

8%

3%

12%

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Half Of Consumers Would Subscribe To At Least One Network Branded SVOD ServiceFew would drop existing SVOD subscriptions

Q.48 Regardless of the monthly subscription price, to which of the following video streaming services would you be interested in subscribing? Q.49 Now please assume that the monthly subscription for each network streaming service is $4.99 per month. To which of the following network streaming services that interest you are you likely to subscribe? Q.50 Please select the responses that best reflect the steps you would take in order to afford a subscription to a network streaming service?

None of thesetruTVTCM

ABC FreeformThe CW

F/XTBS

Cartoon NetworkDisney

Comedy CentralSyfyTNT

ESPNDiscovery

NBCFoxCBSABC

47%5%6%

6%7%6%

10%11%10%11%9%

15%13%

10%12%13%14%

34%11%12%12%14%15%16%16%18%18%19%20%22%22%23%24%27%28%

Interested Without Price PointInterested If It's $4.99/month

Interest In Video Streaming Sources

None of these

Cancel my DVR service

Cancel another streaming service subscription

Cancel a premium channel

Cancel my pay TV service

Cut back on something else not mentioned here

Would not change any of my other subscriptions

10%

9%

10%

15%

21%

26%

36%

What Steps Would You Take To Afford This?(among those interested in one or more of the services

to the left)

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15Q.71 In which of the following ways do you prefer watching TV shows, and movies streaming from the Internet on each of the following screens?

Majority of Streamers Now Prefer Paid Model For TV/Movie Viewing

2016

2015

2013

44%

45%

50%

40%

37%

32%

16%

18%

19%

For free, with 15- to 30-second commercials integrated into the contentFor a monthly subscription fee, without commercials integrated into the content

Ways In Which TV Show And Movie Streamers Prefer To “Pay” For Long-Form Content On A Connected TV(Based on those who watch TV Shows or Movies from the Internet)

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16Q.71 In which of the following ways do you prefer watching TV shows, and movies streaming from the Internet on each of the following screens?

On a tablet screen

On a smartphone or iPod Touch

On a laptop or computer screen

Streaming on a Connected TV

61%

60%

56%

52%

27%

26%

30%

34%

12%

14%

14%

14%

Millennials Most Likely To Pay For Long Form ContentOn Any Screen

On a tablet screen

On a smartphone or iPod Touch

On a laptop or computer screen

Streaming on a Connected TV

51%

51%

48%

39%

33%

34%

36%

44%

16%

16%

16%

17%

For free, with 15- to 30-second commercials integrated into the contentFor a monthly subscription fee, without commercials integrated into the contentFor a fee for each video, program, or movie I watch, without commercials integrated into the content

Ways In Which TV Show And Movie Streamers Prefer To “Pay” For Long-Form Content(Based on those who watch TV Shows and Movies from the Internet, N=912 and N=857)

On a laptop or computer screen

On a smartphone or iPod Touch

On a tablet screen

Streaming on a Connected TV

56%

53%

52%

43%

31%

31%

31%

41%

14%

16%

17%

16%

Millennials, N=474

Xers, N=226

Boomers, N=258

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YouTube

Facebook

Netflix Instant Streaming online

Instagram

Twitter

Snapchat

Periscope

85%

63%

45%

38%

28%

27%

8%

Majority Of Those That Watch Mobile Video Are Watching On YouTube or Facebook

Which of the following sources do you ever use to watch video on your smartphone?

YouTube

Facebook

Netflix Instant Streaming online

Instagram

Twitter

Snapchat

Periscope

85%

62%

57%

34%

28%

21%

8%

Which of the following sources do you ever use to watch video on your tablet?

Magid Mobile Study - 2016: Tablet video viewers Total N=1279; Smartphone video viewers Total N=1358. Q11.2A: Which of the following sources do you ever use to watch video on your tablet? Select all that apply. Q30.4: Which of the following sources do you ever use to watch video on your smartphone? Select all that apply.

*Netflix included for comparison as top SVOD

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Facebook Messenger

Snapchat

WhatsApp

Google Hangouts

Vine

Kik

59%

26%

18%

17%

10%

10%

Smartphone Owners/Users

Video-Based Messaging Services - Especially Snapchat - Have Become A Major Social Platform

Which of the following messaging services or apps do you currently use?

Smartphone owners/users Total N=2307; GoPro Owners/Users N=425; Potential Subscribers N=277. Q38A: Which of the following messaging services or apps do you currently use? Select all that apply.

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Virtual Reality

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20Q.80 How familiar are you with the concept of virtual reality (VR)? Q.81 Are you aware of at-home virtual reality technology?

Among All Consumers, A Third Have Heard of VR But Only One Quarter Are Familiar

11%

16%

22%

15%

35%

5-Very familiar4321-Not at all familiar

Familiarity with Virtual Reality (VR)Asked of total sample, N=1,600

38%

47%

15%

YesNo

Are you aware of at-home virtual reality technology?

Asked of total sample, N=1,600

VR is the domain of MillennialsProportion who are 20 – 39:Aware of VR – 40%Familiar with VR – 47%Very familiar with VR – 49%

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34%

16%

21%

15%

14%1-Not at all in-ter-ested

2

3

4

5-Very in-terested

Movies And TV Shows Generate The Highest Interest Among Both Interested and UninterestedTravel Is Strong Non-Traditional Category Beating Games Among Total Pop

Q.84 How interested are you in at-home virtual reality experiences? Q.85 What kind of content would you be interested in experiencing through virtual reality? Select all that apply. Q.86 Virtual reality viewing can feature many types of genres and experiences. Knowing that the following virtual reality viewing experiences will be available, which ones might make you interested in trying virtual reality? Select all that apply.

Interest In at-home VR Experiences

Asked of total sample, N=1,600

VR Content That Would Be InterestingBased on those at least somewhat

interested, 3 – 5N=800

OtherOffice work

Event replaysShort-form video clips

Training for jobs/other activitiesEmail

Vehicular/Adventure SimulationsBoard games

Social NetworkingVideo calls

Smartphone/tablet gamesLive events

Console/PC gamesMusic videos

SportsVirtual travel

TV ShowsMovies

2%10%14%15%

19%19%22%23%25%28%

32%31%34%35%

32%37%

43%56%

50% are at least somewhat interested

50% are at not interested

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6 months 12 months 2 years

8 – 19 years old

20 – 39 years old

40 – 51 years old

51 – 70 years old

70+ years old

Nearly 4 In 10 Under 40 Expect To Acquire VR Headsets In The Next 2 Years

Q.89 How likely are you to buy a new virtual reality headset for use with your mobile device. Please select the response that best fits.

Overall about 25% of homes could have these devices by the end of 2017

0 25% 50% 75%

39%

28%

16%

6%

37%

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Action-Cameras

23

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Among Those Aware Of Action Cameras, Most Have Watched Video Created On Them As Well = Huge Market Of Viewers

Have you ever watched video created on an action-camera? Have you ever watched video created on a GoPro?

Magid Mobile Study - 2016: Among those that have heard of or are unsure if they have heard of action-cameras – N=1987. Q54.1: Have you ever watched video created on an action-camera? Q54.1A: Have you ever watched video created on a GoPro?

Yes No Not sure

62%

26%

12%

61%

26%

13%

Watched video from action-cameraWatched video from a GoPro 75% of American Consumers

Have Heard of Action-Cameras

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GoPro

Sony

Nikon

Panasonic

Garmin

17%

14%

14%

11%

11%

GoPro Most Owned/Used Action-Camera Device Brand Among Respondents

Do you personally own or use any action-camera devices from the following brands?

Magid Mobile Study - 2016: Total N=2500. Q54..2: Do you personally own or use any action-camera devices from the following brands?

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Esports

26

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F35-64

F18-34

F8-17

M35-64

M18-34

M8-17

35-64

18-34

8-17

Female

Male

53%

31%

17%

51%

31%

18%

52%

31%

17%

50%

50%

51%

40%

9%

24%

61%

15%

31%

55%

14%

27%

73%

eSports viewersTotal Mention

18% Of Gamers Have Watched eSports In The Last 12 Months

Magid Media Futures 2015: Base: Gamers N=1667; Total mention N=2,400; eSports Viewers N=294; 127.2 Text displayed above; QC. How old are you? QH Which of the following best describes your racial background?

Age Breakout

CaucasianHispanic

/Latino

AfricanAmerica

nAsian Avg. HH Income:

>$75,000

Total Mention

63% 17% 13% 5% 33%

eSports viewers

58% 21% 9% 10% 49%

18%

79%

YesNoNot sure

“In the past 12 months, have you watched any eSports programming online or attended any eSports events? eSports is the name for competitive gaming. This could include organized competitions in the forms of leagues and tournaments for real-time strategy, massively-multiplayer online or fighting games to name a few.”(Among all gamers)

Up from 2014: 12%2013: 9%China 2013: 42%

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Thank You For Your Attention

Mike VorhausPresident, Magid [email protected]

Contact Us!

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