Value and Engagement in the Era of Social Entertainment and Second Screens

Methodology

Research targets Nationally representative survey of adults (Ages 18+)

Geographies UK and US

Field Dates April 12 - April 15, 2012

Sample sizes Total n=2,022 (UK n=1,012; US n=1,010)

Margin of Error Total sample +2.18% (in 95 out of 100 cases); Country sample +3.08% (in 95 out of 100 cases)

Setting the scene – 6 years of DERT research

Valuing Entertainment

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Appreciation of Value at a Three-Year High

Value is up across all of the entertainment sources in 2012, following 2011’s low.

Q8. Thinking about the entertainment provided by each of the following entities, how much value do you think they provide, in general? Base: All respondents (n2022)

2011 2012

Social networking sites

Film producers/ Movie studios

Music companies Gaming companies

Cable television providers

Satellite television providers

Series1

34%

18%14% 13% 13% 14%

40%36%

32% 32% 30% 30%

Entertainment Everywhere

Frequent Sources of Entertainment

*NOTE: 2011 and 2012 Internet/Web data was calculated using the sum of data points for Internet – news/information, Internet – download/stream movies, Social network, Online streaming music service, and Video game on social network for comparison with 2010 data. 2012 also includes Internet - download/ stream TV shows

Q4. What source of entertainment do you turn to most often? Base: All respondents (n2022)

TV and the internet remain the most used sources of entertainment year-over-year, while cinema/movie viewership continues to decline

2010 2011 20120%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60% 57%

49%

58%

30%

24% 27%

12%

7%

1%

2010 2011 2012

TV

Internet / Web*

Cinema / Movies

2010 2011 20120%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60% 58%

47%45%

32% 32% 34%

28%

6%3%

2010 2011 2012

TV

Internet / Web*

Cinema / Movies

Video Content: Watching Outside of the Box

Laptop computer Desktop computer Gaming console Mobile phone Using a HDMI cable to connect my lap-

top to my television

Tablet (e.g. an iPad) Online-streaming equipped television

54%

30%

18% 18%14%

10% 9%

Q6. Other than television, which devices are you using to watch entertainment programs? Base: All respondents (n2022)

Content on Devices Other than Television

Though the TV is still the center of the home, audiences are watching entertainment programming and content on other devices other than TV.

Video Content: Watching Outside of the Box

Laptop computer Desktop computer Gaming console Mobile phone Using a HDMI cable to connect my lap-

top to my television

Tablet (e.g. an iPad) Online-streaming equipped television

51%

40%

24%20%

12% 14%9%

Q6. Other than television, which devices are you using to watch entertainment programs? Base: All respondents (n2022)

Content on Devices Other than Television

Though the TV is still the center of the home, audiences are watching entertainment programming and content on other devices other than TV.

What do consumers care about?

Q7. Below are some things people might take into consideration when purchasing entertainment. How important are each of the following things to you, when you are considering making an entertainment purchase ? Base: UK respondents (n1012)

2010 2011 2012

Purchase Drivers% Extremely/Somewhat Important

Enjoyment and Quality Come First. Followed by ease of purchase and ability to access immediately.

Being able to access the entertainment immediately

Being able to purchase the entertainment easily

The hours of enjoyment the entertainment will provide

Excellent visual or sound quality of the entertainment

My personal enjoyment of the entertainment

74%

75%

80%

86%

90%

73%

76%

78%

87%

89%

59%

59%

65%

67%

70%

Being one of the first to have new entertainment

Having unrestricted ability to share or make copies of the entertainment legally

Popularity of the entertainment

The number of devices with which I can access the entertainment

23%

33%

41%

45%

14%

34%

29%

47%

43%

48%

44%

53%

Q7. Below are some things people might take into consideration when purchasing entertainment. How important are each of the following things to you, when you are considering making an entertainment purchase ? Base: All respondents (n2022)

2010 2011 2012

Popularity of the content and being the first to have it, rises in importance this year.

Purchase Drivers% Extremely/Somewhat Important

None

Privacy of my personal information

Visual or sound quality of the entertainment

The ability to access the entertainment on the device of my choice

The ability to access the entertainment on multiple devices

The ability to share the entertainment

Advertisement-free entertainment

15%

8%

9%

18%

34%

41%

48%

Q10. Which of the following would you be willing to sacrifice in order to get your entertainment for free? Base: UK respondents (n1012)

2012

Willingness to Sacrifice for Free Entertainment

UK respondents are willing to sacrifice sharing to get free entertainment; but won’t compromise on privacy

The Power of Me: Social networks and Influence

Facebook: The entertainment soap box

50%

15% 14%5% 2%

58%

27%

15% 12%5%

Sites Used to Discuss Entertainment Content

Q15. Which social media sites do you use to discuss entertainment content that you have watched or listened to?Base: All respondents who use any social media sites (n1837)

Over ¾ of Americans and Britons say they have used Facebook, with the majority saying it is the forum for them to discuss entertainment content

None of the above

“Check-in” to an app or website (e.g. GetGlue, Zeebox)

“Tweet” about it on Twitter

Send an internet link about it to friends/ family

Share a link about it on a social network site

“Like” it on Facebook

Search for more information

Tell a family member

Tell a friend

11%

7%

11%

22%

29%

38%

34%

63%

63%

12%

3%

11%

17%

23%

29%

33%

66%

68%

Liking Content: Not just a status updateWhen enjoying entertainment, Britons are more likely to tell friends and family. Influence isn’t just restricted to social networks. Americans are more internet-focused and will spread their feedback online

Q12. Which of the following do you do if you enjoy a piece of entertainment content (e.g. television program, movie, music video, song, playlist, etc.)? Base: All respondents (n2022)

Actions Taken if Enjoy Entertainment

will take action if they enjoy a piece of entertainment

88%

Q15. Which social media sites do you use to discuss entertainment content that you have watched or listened to? Base: All respondents who use any social media sites (n1837)

50%

Use Facebook to Discuss Entertainment Content:

58%

None of the above

“Check-in” to an app or website (e.g. GetGlue, Zeebox)

Write a negative review or comment about it on an online website (e.g. Rotten Tomatoes, etc.)

Share a link about it on a social network site

“Tweet” about it on Twitter

Comment about it on Facebook

Tell a family member

Tell a friend

26%

7%

12%

12%

12%

25%

49%

49%

26%

3%

6%

9%

10%

21%

53%

56%

Disliking content: Americans more active When not enjoying entertainment, the majority of Britons are more likely to tell friends and family - again showing the importance of real-world conversations. Americans still more likely to leave criticism online

Q12. Which of the following do you do if you enjoy a piece of entertainment content (e.g. television program, movie, music video, song, playlist, etc.)?Base: All respondents (n2022)

Actions Taken if Don’t Enjoy Entertainment

will take action if they enjoy a piece of entertainment

74%

Before During After

The Conversation Curve

Audiences are much more likely to comment about entertainment content after they have watched, listened or played. Brands should consider how to amplify and sustain this curve.

Q19. Which types of content are you likely to comment about on a social media networks (like Twitter or Facebook) before you have viewed/listened to it, while you are viewing/listening to it and after you have viewed/listened to it? Base: All respondents who use any social media sites (n1837)

Likelihood of commenting on a social network

Before I have viewed/listened to it

DuringI am viewing/listening to it

After I have viewed/listened to it

16% 16%

34%

I would like to use my mobile phone or device to interact with entertainment

I like being able to interact with entertainment such as being able to vote for my favorite contestants on reality TV or music talent shows

I would like to use social networks such as Facebook or Twitter to interact with entertainment

I would like to see entertainment provide me with the ability to interact real-time with the content

I would like to use my computer to access additional online content related to my entertainment

29%

31%

31%

33%

47%

29%

23%

25%

30%

52%

The biggest shift in preferences is being able to use social networks to interact with entertainment

Q9. Please indicate your level of agreement with the following statements?Base: UK respondents (n1012)

Preferences for Interacting with Entertainment% Strongly/Somewhat Agree

2011 2012

8%+

3%+

6%+

Change from 2011

Incentivising audiences on social networks

Don't know

Offer interactions with celebrity talent

Direct you to their company website

Offer sales on their merchandise

Conduct contests to win free stuff (clothes, vacations, etc.)

Give you free merchandise if you comment about them

27%

15%

17%

26%

42%

49%

30%

13%

15%

21%

40%

47%

Q16. What could entertainment companies do on social media sites that would encourage you to watch their entertainment content? Base: All respondents who use any social media sites (n1837)

Encouraging Viewership of Content on Social Media Sites

UK/US Average

Audiences would like free merchandise in order to encourage them to watch content. But if the content is available for free, how can a business model that supplements content with free merchandise survive? What is the cost of free?

US more likely to feel positive about recommendations Britons are more likely to find brand recommendations on a

social network invasive, whereas Americans would appreciate the recommendation

Don't know

Feel positively towards the brand/ company

Feel negatively towards the brand/ company

Watch/ listen to the content

Appreciate the recommendation

Find this invasive

21%

21%

11%

32%

32%

26%

17%

11%

15%

24%

26%

39%

Q17. How would you feel if a brand or company got in touch with you on a social network and recommended entertainment content based on their understanding of your likes and dislikes? Base: All respondents who use any social media sites (n1837)

Brands Recommending Entertainment Content

Automated services do not replace the voice of the individualConsistent with British opinions and recent stories about the decline in use of Facebook auto—sharing apps – British people do not like automated recommendations or sharing features.

67%52%

20%

21%

13%27%

Q18. If social networks could automatically notify your friends about content you are consuming how likely would you be to use this feature?Base: All respondents who use any social media sites (n1837)

Likelihood to Use Automatic Notifications

Likely

Unlikely

Neither likely nor unlikely

What does this mean for brands?

The Key Themes of the MEValue is UpValue is at three year high, in the study. According to the trade body, the Digital Entertainment Group, U.S. consumers spent $4.5 billion (£2.7 billion) on home entertainment in the first quarter of 2012, an increase of 2.5% from a year ago.

Shift in Frequent Sources of EntertainmentTelevision and the Internet remain the most utilized sources of entertainment year-over-year. However, audiences are increasingly turning to other devices to watch entertainment. Over half of survey respondents turn to their laptop to watch entertainment.

Social Opportunities Peak in the Conversation Curve 50% of consumers use Facebook to comment or discuss entertainment content. Most conversations peak after an audience has watched, listened or played, not before or during – consider how best to engage with your audience online.

Enjoyment and Quality Come FirstThis year, personal enjoyment and visual and sound quality remain the top purchase drivers of entertainment. But won’t compromise on privacy when it comes to getting their entertainment for free.

Technology Can’t Dictate Taste Audiences do not like automatic notifications that share what content they have watched/listened/played with their social graph. Audiences wary of receiving automatic notifications from brands. Personalization and tone of voice must cut through the noise.

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#socialent

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