OTT Market Pulse Report - Insights Into Subscriber Growth Trends & Drivers In The OTT Streaming Services Market - Phoenix Marketing International

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OTT Market Pulse Report - Insights Into Subscriber Growth Trends & Drivers In The OTT Streaming Services Market - Phoenix Marketing International
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OTT Market Pulse Report
Insights Into Subscriber Growth Trends & Drivers In The OTT Streaming Services Market

                                              PROPRIETARY & CONFIDENTIAL                Proprietary & Confidential   1
OTT Market Pulse Report - Insights Into Subscriber Growth Trends & Drivers In The OTT Streaming Services Market - Phoenix Marketing International
Stay Up To Date on OTT Streaming Service
      Trends With Our Monthly Market Pulse Report
       Answering Key Questions Such As:

                                 Current State of The OTT Market –
                                 Which Services Dominate?
                                 Which Services Need to Find Their Niche?

                                 Emerging Services –
                                 Which New Services are the Latest Threats and & Why?

                                 Building Brand Equity –
                                 How do Perceptions and Satisfaction Drive Customer Growth?

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OTT Market Pulse Report - Insights Into Subscriber Growth Trends & Drivers In The OTT Streaming Services Market - Phoenix Marketing International
10%
                                                                         # of Subscriptions

      Overall State of the Market                                                                          9%                                         31%
                                                                            0         1
                                                                            2         3
                                                                            4         5+
        Multiple subscriptions are the norm in the OTT Services                                      15%
        Market – more than 34% of Households have 3 or more
        subscriptions.
                                                                                                                                                     18%
        However, there is still room to acquire new subscribers -                                           17%

        31% of Households Don’t Have an OTT Subscription.                            16%                                          10%
                                                                         18-34                      19%           35-54                                        26%
                                                                                                                           9%
        The OTT Market is Young:
                                                                               14%
         The 18-34 year old viewer is more represented in the
          Streaming Market than it is in the Linear Viewing                                              16%              18%
          Market.                                                                                                                                              18%
                                                                                     18%           16%                      19%
         Younger subscribers are using the most services.
                                                                                           3% 3%                Kids            17%
         Households with Kids Under 25 also accumulate                  55+          7%
                                                                                                                Under
                                                                                                                                                             19%

          more subscriptions.                                                                                   25 in HH
                                                                                                                          10%
                                                                                                          49%

                                                                               16%
                                                                                                                                                               15%
                                                                                                                           21%
                                                                                     21%
                                                                                                                                                         18%

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OTT Market Pulse Report - Insights Into Subscriber Growth Trends & Drivers In The OTT Streaming Services Market - Phoenix Marketing International
10%
                                                                                          # of Subscriptions

      Overall State of the Market –                                                                                  9%                                    31%
                                                                                              0   1

      Multiple Subscriptions Dominate
                                                                                              2   3
                                                                                              4   5+
                                                                                                                15%
        Netflix, followed by Amazon Prime Video are the market
        leaders, regardless of the number of subscriptions.
                                                                                                                                                          18%
                                                                                                                       17%
        Disney+ is quickly emerging as an OTT leader,
        hot on Hulu’s heels, especially among those                                                                  # of Subscriptions
        with 3+ subscriptions.                                                                          1       2             3             4                     5+

                                                                         Netflix                       53%     74%           84%          91%                     88%
                                                                         Amazon Prime Video            23%     60%           74%          70%                     83%
                                                                         Hulu                          8%      24%           45%          69%                     79%
                                                                         Disney+                       5%      16%           40%          67%                     85%
                                                                         HBO Now                       4%      7%            12%          38%                     62%
                                                                         Apple TV+                     3%      7%            18%          22%                     55%
                                                                         ESPN+                         0%      5%            14%          14%                     56%
                                                                         CBS All-Access                2%      4%            7%           16%                     47%
                                                                         Peacock                       2%      3%            7%           11%                     32%

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OTT Market Pulse Report - Insights Into Subscriber Growth Trends & Drivers In The OTT Streaming Services Market - Phoenix Marketing International
Net 6 Month Growth
                                                                                                                                                                       Net Growth Intenders –
                            Disney+                                                                                                                                    Expected Future Growth
                           Peacock
                             ESPN+
                                                                                                                                                                       (3 Month) vs. Historical
                        Apple TV+                                                                                                                                      Churn (3 Month)
                                  Hulu
                                                                                                                                                                       Disney + and Peacock stand out
      Redbox Free Live TV
                                                                                                                                                                       with vibrant future growth net of
        Redbox On Demand
                                                                                                                                                                       any early churn. CBS All Access
                              Twitch
                                                                                                                                                                       is experiencing the opposite.
                          Pluto TV
                                Mixer
                            Tubi TV
                               Netflix
                                Philo
                              Britbox
       Amazon Prime Video
                         HBO Now
                CBS All-Access

                                         -1%                0%           1%            2%             3%             4%              5%             6%

Copyright © Phoenix Marketing International 2020. All rights reserved.   Net 6 Month Growth = Plan to subscribe in next 3 months – Subscribed to but cancelled in last 3 months               Proprietary & Confidential   5
Top Additional Subscriptions Among Disney+ Subscribers
                                                                                                                                                                    Disney+
                              Netflix                                                                                                                               Top Additional Subscriptions
                                                                                                                                                                    Disney+ Subscribers are
      Amazon Prime Video
                                                                                                                                                                    actively considering additional
                                                                                                                                                                    services, particularly the newly
                                Hulu                                                                                                                                offered Peacock, niche oriented
                                                                                                                                                                    ESPN+ and Apple TV+.
                        HBO Now

                       Apple TV+

                            ESPN+

               CBS All-Access

                          Peacock

                                        0%            10%           20%     30%         40%         50%         60%          70%         80%         90%

                                                                                      Also Subscribe                  6 Month Net Growth/Churn
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                                                                          6 Month Net Growth/Churn = Plan to subscribe next 3 months – Cancelled in last 3 months
Top Additional Subscriptions Amongst Netflix Subscribers
                                                                                                                                                                    Netflix
      Amazon Prime Video                                                                                                                                            Top Additional Subscriptions
                                                                                                                                                                    Not surprisingly, Amazon Prime
                                Hulu
                                                                                                                                                                    Video and Hulu dominate for
                                                                                                                                                                    additional subscriptions among the
                          Disney +                                                                                                                                  Netflix fans. However, Netflix
                                                                                                                                                                    subscribers also seem to have an
                        HBO Now                                                                                                                                     affinity toward other services- such
                                                                                                                                                                    as Disney+, followed closely by
                                                                                                                                                                    Peacock, ESPN+ and Apple Tv+.
                       Apple TV+

                            ESPN+

               CBS All-Access

                          Peacock

                                        0%            10%           20%     30%         40%         50%         60%          70%         80%         90%

                                                                                      Also Subscribe                  6 Month Net Growth/Churn
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                                                                          6 Month Net Growth/Churn = Plan to subscribe next 3 months – Cancelled in last 3 months
Top Box Satisfaction

                                 Netflix
                                                                                                             Overall OTT Streaming
                                    Hulu                                                                     Service Satisfaction
                            Disney +                                                                          Netflix leads in terms of overall
                          HBO Now                                                                              Subscriber Satisfaction.
       Amazon Prime Video
                                                                                                              Disney + has managed to
                              Tubi TV
                                                                                                               quickly break through, rivaling
                             Peacock                                                                           Hulu and outpacing Amazon
                CBS All-Access                                                                                 Prime Video on Satisfaction.
                               Britbox
                        Apple TV +
                                Twitch
                               ESPN+
                             Pluto TV
        Redbox Free live TV
                                  Mixer
                                   Philo
        RedBox On Demand
                                            0%                10%        20%   30%   40%   50%   60%   70%

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65%                                                                                                       65%

                    60%                                                                                                       60%

                    55%                                                                                                       55%
     SATISFACTION

                                                                                                                  RECOMMEND
                    50%                                                                                                       50%

                    45%                                                                                                       45%

                    40%                                                                                                       40%

                    35%                                                                                                       35%

                    30%                                                                                                       30%

                    25%                                                                                                       25%
                       40%                 45%                     50%           55%           60%         65%                   40%   45%        50%          55%                60%             65%

                                                                         TRUST                                                                 EASE OF BUSINESS

                                                                                        Netflix has capitalized on its early entry into the market, driving strong performance across
         Perceptions &                                                                   key perception & recommendation pillars
         Recommendations:                                                               Interestingly, Hulu does well in all areas but Trust, where it lags the other lead services.

         Netflix Currently                                                              Apple TV+ poses an interesting addition to the market. Given their scores, trust from
                                                                                         Apple’s other offerings may have produced a halo effect on their streaming offering
         Leads the pack                                                                 However, Apple TV+ limited content selection may have contributed to low Likelihood To
                                                                                         Recommend

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OTT Services & Phoenix
      Brand Health Pillars
                                                                                                             Brand Health Score
                                                                                     Dependent Variables: Consideration | Trial | Price Premium | Loyalty

       Our framework acknowledges
       5 pillars that contribute to
       brand success

                                                                                                  RELEVANT
                                                                           SALIENT

                                                                                                                     VALUE

                                                                                                                                                                        MEANINGFUL
                                                                                                                                        DISTINCT
       CORE PILLARS
       Established with over 200 brands across
       20+ categories
       ADVANCED ANALYTICS                                                Knowledge              Offering          Providing         Reputation                     Connection
       The contribution of each pillar’s relevant
       component metrics have been derived
       via Structural Equation Modeling

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OTT Services and Phoenix Brand Pillars
       Netflix, Amazon Prime & Disney+ lead the way on
        the core levers of power in the OTT space.
       Amazon Prime Video is not necessarily seen as
        being Relevant. This may be due to content,
        marketing or both.
       Disney+’s tenure in this market is still short, likely
        leading to its library not yet being seen as overly
                                                                                              Reputation
        Meaningful. As familiarity grows, its library of titles          High Quality        { Meaningful }
        should help its growing reputation in this area.                  { Distinct }
      OTHER TOP PLAYERS:
       ESPN+ has a core audience, but given its sports
        niche, likely doesn’t have the broad offerings to                                          Current
        stand out among more established services and                                            { Relevant }
        meet all the needs of the OTT subscriber.
       HBO NOW is seen as an expensive service and                        Value for Money
        one that is difficult to do business with, leading                     { Value }
        respondents to not necessarily want to be
        associated with it.
       Apple TV+ is the unknown in the market. Their
        most on brand path in is through their image. But
        that alone is unlikely to drive needed market
        penetration.
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Additional Phoenix                                                  Phoenix provides a portfolio of Customer Experience, Media Research &
                                                                           Marketing Communication Solutions.
      Solutions For OTT                                                   Our Solutions will help you continue to build a successful OTT Offering &
      Streaming Services                                                   deliver an outstanding OTT Customer Experience.

    CUSTOMER EXPERIENCE                                                    MEDIA INSIGHTS                              AD SALES RESEARCH
           Phoenix Customer Experience                                       Phoenix Custom Media solutions             Phoenix Brand Effect delivers real
            Platform can be tailored to your                                   enable you to understand what will          world, in-flight ad performance
            specific needs                                                     drive viewers to your service              Understand how your OTT streaming
           Our CX Consultants can identify the                               Program & Ad Testing, Consumer              content drives audience engagement
            moments that matter, respective                                    Engagement & Brand Positioning              and advertising ROI for your
            performance vs competitive                                         Research help you align your service        advertising clients
            benchmarks, and will highlight best                                with audience needs
            in class insights

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Getting Started

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                                                                                                      13
What We Offer                                                                                                                      STATE OF THE
                                                                                                                                           OTT MARKET
        STANDARD                             Subscription to our Monthly OTT Streaming Services Market Pulse Report                       SURVEY FLOW
        REPORT
                                             Standard Report Includes:
                                              Syndicated reporting on the state of the market, plus a deep dive into subscriber flow        Qualification
                                               (growth, churn, retention) for your brand                                                    Demographics
                                              A review of subscriber perceptions, satisfaction, & recommendation across the market
                                              Topline Brand Equity review for your brand and leading brands in the market
                                                                                                                                           # OTT Services By
                                              Includes tracking for 20+ on-demand Streaming video subscription & Live Streaming              Subscriber
                                               TV services
                                             Standard Survey Includes
                                              Core Brand Attributes Battery for your brand & the Top 6 brands in the market                  Subscriber
                                              Survey Sample: N=1000 sample/month across all services A18+                                  Growth & Churn
                                              Enables us to determine overall subscription incidence & churn

                                                                                                                                        OTT Service Perceptions
                                             3 Month Subscription                                                                        & Recommendations

        EXPANDED                              Additional 500 Survey Sample/Month (A18+)
                                                                                                                                            OTT Services
        REPORT                                Additional 2-3 survey questions
                                                                                                                                            & Brand Equity
                                              Includes BrandPi Brand Equity Model

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Who is
      Phoenix Marketing International?
       We are a full-service market research firm comprised of more than
       300 professionals, launched in 1999 by seasoned research experts,
       built upon the idea of countering the challenges that end clients
       were experiencing with many of their market research providers, and
       focused on these guiding values:

                      SERVICE                                                 INNOVATION                     IMMERSION                      EFFICIENCY
       Our clients’ long tenures                                         Our teams are encouraged      We strive to serve as a true    We develop solutions for
         are a testament to our                                              to be flexible, agile,      extension of our clients’      our clients with an “all of
      proactive service approach.                                                creative, and             teams. Our in-depth          what you need, none of
      Our senior researchers are                                         entrepreneurial – qualities   industry knowledge allows        what you don’t” mindset,
        committed to their client                                         that lead to best-in-class     us to engage as a true       and we employ syndicated
       engagements, from initial                                            research solutions to       partner in the delivery of    data collection approaches
        scoping to final delivery.                                       address our clients’ needs.   actionable, business-driven     to drive down client costs
                                                                                                                insights.                 whenever possible.

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                                                                                                                                                                        15
THANK YOU
                                                                            For more information
                                                                                please visit
                                                                          phoenixmi.com/contact

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