Streaming Provider Experiences During COVID-19 Pulse Survey - TMT Global Business Intelligence
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Streaming Provider Experiences During COVID-19 Pulse Survey TMT Global Business Intelligence May 4, 2020
Pulse Survey Age Household Size Methodology 18-29 20% 2.20 30-44 26% Fielded April 24-26, 2020 1,232 surveys completed 45-60 29% 0.60 > 60 25% Adults Children Under $25,000 14% $25,000-$39,999 16% $40,000-$59,999 19% $60,000-$89,999 19% $90,000-$124,999 19% $125,000 - $149,999 6% $150,000-$199,999 6% Income $200,000 or more 4% Prefer not to answer 3% Some percentages add up to 101% due to rounding © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 2
Which streaming services do you subscribe to or have Netflix has the highest access to? penetration of any Netflix 85% streaming service Amazon Prime Video 66% Hulu 48% Disney + 37% YouTube TV 17% HBO Now 13% Apple TV + 10% Amazon Prime Video and Hulu are also CBS All Access 10% widely used streaming services Showtime 9% STARZ 8% ESPN+ 7% Vudu 7% Other 5% Upstart Disney+ has had a strong launch, acquiring the 4th highest market share in Sling TV 4% its five months of operation (launched in AT&T TV Now (formerly DIRECTV NOW) 3% U.S. on Nov. 12, 2019). BritBox 1% PBS Passport 1% Philo 1% Quibi 1% Fubo TV 1% © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 3
35% rate Streaming Overall, how would you rate your streaming service Providers as Excellent provider? or Perfect Unacceptable 0.3% Only 1.4% rate Streaming Providers as Poor or Unacceptable Poor 1.1% Most respondents (55%) rate Streaming Average 9% Providers as Good or Great. Good 26% Great 29% Excellent 27% Perfect 8% © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 4
Streaming audio and How would you rate your Streaming Provider (mean rating 7-point scale) 7 video quality rates highest 6 Show/content quality also rates high from streaming customers 5 5.07 4.95 4.93 4.69 4.76 4.66 Respondents were asked to rate up to 4 three of their streaming providers on five attributes and on their overall satisfaction with them as a provider of services. 3 Subscription cost and Ease of finding what you wanted to watch are the lowest rated attributes. 2 Rating Scale 1. Unacceptable 2. Poor 1 3. Average Overall Audio and Ease of Show/content Subscription User interface 4. Good 5. Great Satisfaction video quality finding what quality cost 6. Excellent you wanted to 7. Perfect watch © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 5
# of Streaming Services you Use The typical household subscribes to 3.4 22% 22% streaming services 16% 16% 38% of households use 1 or 2 10% 8% streaming providers 6% 1 2 3 4 5 6 7 or more 24% of households subscribe to 5 or more streaming providers How much per month are you paying for all your streaming services combined? 1 $9 Consumers estimate they pay about $5.50 2 $15 # Streaming Services per streaming service per month, across 3 $17 all mixes of streaming subscriptions (including those that currently get the 4 $23 subscription at no cost) 5 $20 6 $31 7 or more $37 © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 6
People subscribe to see Why did you choose to subscribe? (joined within past 6 months) content they want Had content I wanted to see 25% Free family access oddly rates low on cost attribute It works with equipment I already had 19% Many customers joined recently (20%) because they now have more free time due to COVID-19 More free time to watch shows due to COVID-19 19% Got access from friend/family member for free 16% Free with other promotion (e.g., with Internet 13% sign-up, Amazon Prime) Great promotion/deal 9% © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 7
How much time do you spend streaming now compared to before COVID-19? We are streaming longer than before 38% 29% 29% Two-thirds (67%) say they are spending more time streaming 1.6% 2.4% Substantially less Somewhat less About the same Somewhat more Substantially more The average viewer spent 18 hours time time time time streaming in the past 7 days, or about 2.5 hours per day. 10% of viewers streamed more than 5 In the past 7 days, how much time have you spent streaming? hours per day. Under 5 hours 12% 5 to 10 hours 27% 11 to 20 hours 23% 21 to 35 hours 25% More than 35 hours 10% © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 8
Netflix viewers stream In the past 7 days, how much time have you spent watching content on … ? longest hours Netflix 10.2 YouTube TV and Hulu viewers also streamed more than one hour per day YouTube TV 8.5 Disney+ viewership commanded less than one-half the hours compared to Netflix Hulu 7.9 Amazon Prime Video 5.9 All Others 5.1 Disney + 4.8 Among streaming providers with 100 or more completed surveys © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 9
Lower income In the past 7 days, how much time have you spent watching? (by Age / Income) households stream 18 to 34 6.8 longer hours Age 35 to 44 7.3 45 to 60 6.9 Older views (60+) spend more time streaming 60 + 8.5 Under $25,000 9.4 $25,000 to $39,999 8.3 $40,000 to $59,999 7.1 Income $60,000 to $80,999 6.5 $90,000 to $124,999 6.2 $125,000 to $149,000 7.0 $150,000 to $199,999 6.1 $200,000 + 6.1 © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 10
What content have you watched most recently? Ozark and Tiger King Please write in your top 3 shows in the last month are the most-watched Ozark 8.9% shows this month Tiger King 7.1% The Office 2.8% Little Fires Everywhere 2.7% Streaming of syndicated shows such Blue Bloods 2.4% as The Office, Blue Bloods, NCIS and Greys Anatomy has also been popular NCIS 2.4% Greys Anatomy 1.9% Outlander 1.9% Ozark (6%), Tiger King (3.1%), and Little Homeland 1.8% Fires Everywhere (1.5%) were the most recommended shows; however, the top 15 All American 1.8% most-recommended shows represent less Outer Banks 1.7% than than one-quarter (23%) of all shows recommended – there is a lot of content Brooklyn 99 1.6% out there right now that people love. Better Call Saul 1.5% Criminal Minds 1.5% Jack Ryan 1.5% © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 11
Smart TV Apps are the How do you normally connect to your streaming services? most common way to (mark all that apply) stream App on my Smart TV 36% Streaming online using Online using laptop/computer 29% laptop/computer also is common App on my smartphone or tablet 25% One-quarter of respondents (25%) connect to streaming using an App on their smartphone or tablet Roku 25% Amazon Fire TV Stick/Cube 20% App on my cable TV menu 13% Apple TV 7% Chromecast/Ultra 6% Nvidia Shield TV 0.5% © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 12
Most households (35%) stream to large TV What screen do you most frequently stream to? screens (50”+) Streaming to laptops or computers 30% makes up 14% of screen viewing 27% Streaming to smartphones or tablets makes up 13% of screen viewing 9% 9% 8% 6% 6% 4% TV 36" to TV 50"to Smartphone Laptop TV larger TV under Computer Tablet 48" 60" (without than 60" 36" or laptop monitor) (with monitor) © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 13
Most people (78%) have How would you rate Audio and Video Quality? had no quality problems (mean rating 7-point scale) streaming 7 6 However, experiencing even one problem degrades the experience substantially 5 5.18 4.81 4.68 4.63 4 3 2 78% 12% 5% 4% Rating Scale 1 1. Unacceptable None 1 or 2 3 or 4 5 or more 2. Poor 3. Average 4. Good 5. Great How many problems have you had streaming content in 6. Excellent the last 7 days? 7. Perfect © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 14
Netflix provides the Streaming problems per hour watched most trouble-free streaming Netflix 0.07 Based on the total number of problems experience in the past 7 days and the Hulu 0.11 total number of hours watched in the past 7 days Amazon Prime Video 0.11 Streaming providers outside of the big 5 have more of a challenge delivering trouble-free streaming Disney + 0.12 YouTube TV 0.13 All Others 0.17 Among streaming providers with 100 or more completed surveys © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 15
Compared to before COVID-19 started, do you expect Despite financial woes, your financial situation in two months to be… few consumers will drop Streaming Providers 43% 33% 4 out of 10 consumers expect their financial situation to be worse in two months 14% 2% 7% However, very few customers (5%) expect Much worse Somewhat worse No change Somewhat better Much better to drop any of their streaming services in the next 30 days. In fact, while most Do you expect you will change the streaming services customers do not expect to change anything (84%), more customers plan to you subscribe to in the next 30 days? add a new service (11%) than drop a service. Add a new service 11% No changes 84% Drop a service 5% © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 16
Netflix is the one brand If you were only able to use one streaming service, above all which would you choose? Netflix 54% More customers would choose Netflix than all the other brands combined Amazon Prime Video 17% Hulu 13% Disney + 4% YouTube TV 4% All Other Brands 5% © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 17
J.D. Power is a leading global data & analytics and consumer intelligence company We’ve been trusted by consumers for more than 50 years to bring their voice to businesses around the world, leading to better products, services and experiences. Our cross-industry and multidisciplinary approach combines leading-edge tools and market expertise to uncover insights that increase understanding and drive business results. Please email TMTInfo@jdpa.com for more information. © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 18
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