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The TV Switching Study

Analysis of viewer’s TV services, engagement & future intentions

This wave uses April data and was published in October 2020

Copyright 2020. The NPD Group, Inc. All Rights Reserved. This presentation is proprietary and confidential and may not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD. Table of Contents

Executive Summary 4-5 3- Engagement Frequency Steps to Find Movie You Want to Watch 23 1- TV Subscriptions & Free Streaming Engagement Frequency by TV Service Type 24 Incidence of Subscribing/Using TV & Services 7 Engagement Frequency by Pay TV Provider 25 Avg. # Subscription & Free Services 8 Engagement Frequency by Premium Network 26 Subscription & streaming overlap 9 Engagement Frequency - Top 10 SVOD Services 27 Free Streaming Services Used in Past Year 10 Most Frequently Used SVOD Services & % Using More Often 28 Top 10 SVOD Services 11 Engagement Frequency – Free Streaming Services 29 Percent of Free/Trial subscribers among top 10 SVOD services 12 Most Frequently Used Free Streaming Services & % Using More Often 30 Most Common Bundle Among Top 4 SVOD Services 13 Most Common Bundle Among Top 4 SVOD Services By Age 14 4- Reasons for subscribing and increased usage Most Common Bundle Among Top 4 SVOD Services By Kids in HH 15 Top 10 Reasons for Signing up/Increased Usage (All TV Services) 32 Most Common Bundle Among Top 4 SVOD Services by TV-Connected Device 16 Top 10 Reasons for Signing up/Increased Usage (MVPDs) 33 Top 10 Reasons for Signing up/Increased Usage (vMVPDs) 34 2- SVOD & vMVPD sign-up method & device Top 10 Reasons for Signing up/Increased Usage (SVOD) 35 Sign-up Method for SVOD Services 18 SVOD Service Ranking Among Reasons for Signing up/Increased Usage 36 Sign-up Method for Top 4 SVOD Services 19 Top 10 Reasons for Starting/Increased Usage (Free Streaming Services) 37 Device Used to Sign-up for SVOD Services 20 Free Streaming Service Ranking Among Reasons for Starting/Increased Usage 38 Sign-up Method for vMVPDs 21

The NPD Group, Inc. | Proprietary and confidential 2 Table of Contents (cont.)

5- Future Interest 7- Cancellation Risk Likelihood to Subscribe/Use New TV/Video Service in Next 12 Months 40-41 Likelihood to Cancel/Stop Using TV/Video Service in Next 12 Months 55 TV Service Types Likely to Subscribe/Use in Next 12 Months 42 TV Service Types Likely to Cancel/Stop Using in Next 12 Months 56 Potential Annual Growth Rate: MVPDs/vMVPDs 43 Potential Annual Churn Rate: MVPDs/vMVPDs 57 Potential Annual Growth Rate: Top 10 SVOD Services 44 Potential Annual Churn Rate: Top 10 SVOD Services 58 Potential Annual Growth Rate: Free Streaming Services 45 Potential Annual Churn Rate: Free Streaming Services 59

6- Reason for cancelling and decreased usage Appendix Top 10 Reasons for Cancelling/Decreased Usage (All TV Services) 47 Methodology 61 Top 10 Reasons for Cancelling/Decreased Usage (MVPDs) 48 SVOD & Direct-to-Consumer App List 62 Top 10 Reasons for Cancelling/Decreased Usage (vMVPDs) 49 MVPDs, vMVPDs & Premium Network List 63 Top 10 Reasons for Cancelling/Decreased Usage Usage (SVOD) 50 Free Streaming Services & Transactional Digital List 64 SVOD Service Ranking Among Reasons for Cancelling/Decreased Usage 51 Top 10 Reasons for Stopping/Decreased Usage (Free Streaming Services) 52 Free Streaming Service Ranking Among Reasons for Stopping/Decreased Usage 53

The NPD Group, Inc. | Proprietary and confidential 3 Executive Summary

 Overall, more viewers are considering adding TV services than those citing a likelihood to cancel them. The growing array of SVOD services are poised to take advantage of this. And, free streaming is well positioned to supplement this viewing.

 The proliferation of direct-to-consumer networks such as Disney+ drove SVOD to critical mass, reaching 79 percent of viewers. The average subscriber has 4.1 services with , Prime, Disney+ and being the most common.

 The most common SVOD bundle is Netflix and . For Amazon, sign-up due to Prime membership propelled the user base and has kept potential churn risk low. However, younger viewers, those with younger children at home and those using TV- connected devices such as are more likely to subscribe to all four of the top four services; not just two.

 Amazon Prime aside, Netflix, Hulu and Disney+ generate a lot of sign-up through their own website. But, TV-connected device sign-up can’t be ignored as it accounts for an average of 42 percent of past year subscriptions among the 42 SVOD services evaluated.

 Perceptions of affordability continue to drive virtual MVPD and SVOD users to sign-up. The services that lead in this area are the top four SVOD services, Netflix, Hulu, Prime Video Disney+ as well as vMVPDs , Sling TV and YouTube TV. Perceptions of high cost continue to drive cable and satellite TV cord cutting.

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 4 Executive Summary

 Content, in particular exclusive content, is king and drives engagement. Among the top 10 SVOD services, Disney+ ranks highest for driving subscriptions and engagement through exclusive content, in particular movies.

 Free and promotional trials have become a key subscriber acquisition tool, amounting to as much as half of the subscriber base for services such as Apple TV+. This opens up significant churn risk if the programming does not continually engage the subscriber base. In fact, the services with the highest rate of customers on free trial, Apple TV+ and CBS All Access, also have the highest potential churn risk.

 Free streaming services are a supplemental viewing source as only four percent of the population use one of them and doesn’t also have a subscription video app.

 It’s the free streaming services such as The Roku Channel and Pluto TV, focusing on content expansion, that are seeing the most viewer engagement and the most increase in engagement. However, features, more than content, still top the list of reasons for engagement showing the need to continue to optimize the content mix. Aside from ad loads, the lack of exclusive content and that which is seen to be available elsewhere drives the risk in free streaming service engagement. But the prowess of free is meaningful as these services have the lowest potential churn risk among all TV services evaluated.

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 5 TV Service Subscriptions & Free Streaming

The NPD Group, Inc. | Proprietary and confidential Subscription streaming now reaches 79% of viewers, led by mature services Netflix, Amazon, and Hulu & further propelled by DTC networks such as Disney+

Incidence of Subscribing/Using TV & Video Services (% of U.S. HHs, April 2020) 79% 71% 71%

49% 39% 36% 18% 11%

Source: The TV Switching Study *Past year users, excludes YouTube Included in the SVOD () SVOD includes Netflix/Amazon/Hulu/DTC Networks/DTC Sports Channels, see appendix for app list

The NPD Group, Inc. | Proprietary and confidential 7 The average subscription and free streaming bundle has 5.8 services YouTube - Roku Channel - Pluto TV – Netflix – Prime – Hulu - Disney+

Avg. # Subscription & Free Services April 2020 – Among Each User Group

SVOD Services Used Weekly 5.8 Netflix AVOD Services Used Weekly Prime Video 4.1 Hulu YouTube Disney+ The Roku Channel 2.7 Pluto TV

Free streaming SVOD/Free streaming SVOD

Source: TV Switching Study * Callouts based on % ranking of weekly active users

The NPD Group, Inc. | Proprietary and confidential 8 Free streaming video is supplemental to subscription services viewers use Nearly all (90%) of viewers age 18-34 use subscription or free streaming service

Subscription & free streaming overlap (April 2020)

7% 17% 3% 13% 4% 30% Neither 4%

44% 5% Free streaming only 35% 38% 24% Both

46% 44% 45% 41% SVOD only

Total 18-34 35-54 55+

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 9 The Roku Channel and Pluto TV are the most commonly used free streaming services

Free Streaming Services Used in Past Year (% of U.S. Internet HHs, April 2020) LG Channels 6% 6% Free Live TV 6% Streaming Live TV 7% TV Plus 8% WatchFree ( TVs) 8% IMDbTV 12% Movies & TV 14% (free video) 14% 15% Pluto TV 16% The Roku Channel 20%

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 10 Netflix, Amazon Prime, Disney+ and Hulu are the primary streaming services viewers subscribe to, all over-index among home customers

Top 10 SVOD Services (% of U.S. Internet HHs, April 2020)

CBS All Access 8% Apple TV+ 8% ESPN+ 10% 11% HBO Now 12% Showtime 13% Hulu (On-Demand) +7%pts. 26% Disney+ +10%pts. 27% +8%pts. 49% Netflix +10%pts. 59%

%pts. increase among transactional home entertainment customers Source: The TV Switching Study Includes paid and free/promotional trials Transactional home entertainment included digital and DVD/BD

The NPD Group, Inc. | Proprietary and confidential 11 Over half of Apple TV+ subscribers access via free/trial offers Will original content be compelling enough to convert trial to paid subscribers or will viewers switch to adjacent services?

Percent of Free/Trial subscribers among top 10 SVOD services Paid Free/Trial

Apple TV+ 52% CBS All Access 42% Starz 27% Showtime 26% Disney+ 25% ESPN+ 25% HBO Now 24% Hulu 15% Amazon 8% Netflix 7%

Ranked by % in Free/Trial Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 12 Netflix is part of the four most common SVOD bundles Notably, the third most common bundle includes all of the top four SVOD services

Most Common SVOD Bundle Among Top 4 Services 14% (% of U.S. Internet HHs that subscribe to each bundle combination, April 2020) 12%

9% 8% 8% 7%

4% 3% 2% 2% 1% 1% 1% 1% 1%

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 13 Viewer’s age 18-34 are most likely to subscribe to all of the four top SVOD services while older viewers typically have only Netflix and Amazon

Most Common Bundle Among Top 4 SVOD Services By Age (% of U.S. Internet HHs that subscribe to each bundle combination, April 2020)

16% 16% 15% 12% 11% 11% 11% 11% 11% 10% 10% 10% 7% 7% 6% 5% 5% 5% 3% 4% 2% 2% 2% 1%

18-34 35-54 55+ Source: The TV Switching Study Bundles listed if >5% for any group

The NPD Group, Inc. | Proprietary and confidential 14 Viewer’s with children under age six are most likely to subscriber to all of the top four subscription streaming services

Most Common Bundle Among Top 4 SVOD Services By Kids in HH (% of U.S. Internet HHs that subscribe to each bundle combination, April 2020)

19% 17% 15% 14% 15%14% 13% 13% 12% 12% 12%12% 10% 9% 8% 8% 8% 8% 8% 6% 6% 6% 6% 5% 5% 5% 5% 4% 4% 3% 2% 2%

Under 6 years old 6-12 years old 13-17 years old HH no Kids Source: The TV Switching Study Bundles listed if >5% for any group

The NPD Group, Inc. | Proprietary and confidential 15 player users are more likely to subscribe to all four of the top services while Smart TV owners are more likely to have only Netflix & Amazon

Most Common Bundle Among Top 4 SVOD Services by TV-Connected Device (% of U.S. Internet HHs that subscribe to each bundle combination, April 2020)

Roku or Samsung Vizio LG Smart 360 Fire TV Apple TV PlayStation Roku TV Smart TV Smart TV TV or One 3 or 4 Netflix+Amazon+Hulu+Disney 15% 16% 21% 19% 15% 13% 13% 19% 17%

Netflix+Amazon 14% 15% 11% 10% 18% 16% 15% 11% 11%

Netflix+Amazon+Hulu 13% 12% 10% 9% 11% 11% 10% 10% 12%

Netflix+Disney+Amazon 12% 13% 16% 16% 13% 10% 14% 14% 14%

Netflix 8% 10% 9% 11% 10% 14% 12% 11% 13%

Amazon 7% 7% 3% 2% 6% 4% 4% 1% 2%

Netflix+Disney 5% 5% 8% 5% 5% 4% 8% 6% 6%

Netflix+Disney+Hulu 4% 2% 3% 4% 3% 4% 2% 5% 4%

Most Common Second Source: The TV Switching Study Bundles listed if >5% for any group

The NPD Group, Inc. | Proprietary and confidential 16 SVOD & vMVPD sign-up method & device

The NPD Group, Inc. | Proprietary and confidential One-quarter of SVOD sign-up’s occur on the channel’s website ISP/Video & mobile carrier sign-up account for another 27% and the Channel model 21%

Sign-up Method for SVOD Services (In Past Year; April 2020) None of these, 8% 26%: Age 18-34 Came with Prime Subscription, Channel's website, 24% 23%: Age 35-54 6% 19% Age 55+ Apple TV Channels, 5%

Roku Channels, 8% 15%: Age 18-34 20%: Age 35-54 24% Age 55+

Amazon Prime Channels, 8% Internet/Video Provider, 18%

Mobile Carrier, 9% Source: The TV Switching Study Channel's App, 15% Includes 42 SVOD services measured

The NPD Group, Inc. | Proprietary and confidential 18 Hulu, Disney and Netflix generate around 1/3 of their sign-up through their own website where Amazon gets over half through Prime subscriptions

Sign-up Method for Top 4 SVOD Services (In Past Year; April 2020)

Came with Prime Subscription 4% 3% 4% 8% 6% 6% 4% 2% Apple TV Channels 5% 9% 7% 12% 55% Roku Channels 18% 20% 18% Amazon Prime Channels

11% Mobile Carrier 13% 19% 2% 4% 9% Channel's App 2% 5% 38% Internet/Video Provider 35% 32% 8% 12% Channel's website

Hulu (On-Demand) Disney+ Netflix Amazon Prime Video

Source: The TV Switching Study Those answering none of the listed option is excluded from the chart

The NPD Group, Inc. | Proprietary and confidential 19 42% of SVOD sign-up’s occur on a TV-connected device 29% of sign-up’s occur on a computer followed by 15% using a

Device Used to Sign-up for SVOD Services (In Past Year; April 2020) Other, 8% 28%: Age 18-34 17%: Age 18-34 Tablet, 6% 28%: Age 35-54 Computer, 29% 15%: Age 35-54 35% Age 55+ 9% Age 55+

Smartphone, 15%

Apple TV, 5% Smart TV, 18% Fire TV, 5%

Xbox/PS, 6% Roku, 8% Source: The TV Switching Study Includes 42 SVOD services measured

The NPD Group, Inc. | Proprietary and confidential 20 vMVPDs generate most (51%) of their sign-up’s through their website

Sign-up Method for vMVPDs (In Past Year; April 2020)

8% 0% 7% 7% 15% 18% Mobile carrier 19% 20% 9% 23% 20% Provider's app 19% 19% 29% 13%

Internet or video service provider 59% 51% 52% 51% 41% Provider's website

vMVPD - Norm AT&T TV Now Hulu with Live TV Sling TV YouTube TV

Source: The TV Switching Study Those answering none of the listed option is excluded from the chart

The NPD Group, Inc. | Proprietary and confidential 21 Engagement Frequency

The NPD Group, Inc. | Proprietary and confidential SVOD is the primary way viewers search for the movie they want to watch 1 in 5 bail on viewing after two attempts to find the movie they wanted to watch

Steps to Find Movie You Want to Watch 82%: does not (April 2020) 36% cost more

26% 26% 22% 20% 19%

Check if it's Check if it's Check if it's Some other way Rent the DVD or Buy the DVD or Rent it from your Rent it from a Buy it from a Don't watch Find something available from available free on available on a Blu-ray Disc Blu-ray Disc pay TV provider digital movie digital movie anything else to watch SVOD services a TV channel you free streaming service service get through your video service pay TV provider 1st Step 2nd Step 3rd Step

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 23 Cable, satellite and virtual MVPDs generate the greatest daily usage through the broad mix of channels available.

Engagement Frequency by TV Service Type (April 2020)

3% 4% 6% Not in past year 13% 5% 14% 19% 15% 18% Past year 21% 23% Past 3 months

39% Past month 78% 74% 26% 41% 67% 66% Past week 26% 23% 18% Every/most days

Satellite TV Cable TV vMVPD Telecom TV SVOD Free Streaming Premium Network

Source: The TV Switching Study All based on household subscribers except free streaming which is based to past year users

The NPD Group, Inc. | Proprietary and confidential 24 YouTube TV daily engagement is at parity with the Satellite providers

Engagement Frequency by Pay TV Provider (April 2020)

4% 4% 6% 5% 3% 7% 6% 3% 5% 5% Not in past year 10% 12% 14% 14% 14% 5% 15% 13% 15% 17% 9% 17% 22% 23% Past year

Past 3 months 80% 78% 77% 77% 75% 73% 73% 71% 69% 65% 64% 53% Past month

Past week

Every/most days

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 25 HBO generates more frequent usage than the other premium TV networks, although all struggle to capture daily viewership

Engagement Frequency by Premium Network (April 2020)

Not in past year

20% Past year 21% 23% 20% 25% Past 3 months

45% Past month 36% 40% 43% 34% Past week

21% 18% 17% 15% 14% Every/most days

HBO Starz Showtime

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 26 Netflix and Hulu generate far greater engagement than any of the top SVOD services

Engagement Frequency - Top 10 SVOD Services (April 2020)

9% Not in past year 13% 18% 17% 22% 20% Past year 18% 43% 20% 24% 23% 43% Past 3 months 40% 44% 42% 39% 42% 48% Past month 29% 34% 45% Past week 37% 28% 26% 23% 21% 21% 17% 16% 15% Every/most days

Netflix Hulu (On- CBS All Disney+ Amazon HBO Now ESPN+ Apple TV+ Starz Showtime Demand) Access Prime Video

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 27 Services used the most frequently are gaining the most ground Netflix, Hulu, Disney+, CBS All Access, and Amazon Prime Video drive the greatest engagement

Most Frequently Used SVOD Services & % Using More Often 87% (April 2020) 80% 70% 68% 64% 63% 60% 58% 51% 50% 57% 48% 42% 40% 39% 38% 41% 30% 30% 26%

Netflix Hulu (On- Disney+ CBS All Access Amazon Showtime HBO Now Starz ESPN+ Apple TV+ Demand) Prime Video

% of subscribers that use at least weekly % Using More Often

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 28 Engagement frequency differs greatly by free streaming service with Vizio WatchFree, The Roku Channel and Pluto TV leading in daily engagement

Engagement Frequency – Free Streaming Services (April 2020)

Past year

Past 3 months

30% 25% 24% 24% 26% 28% Past month 23% 25% 27% 33% 30% 23% 21% 28% 27% Past week 27% 26% 23% 24% 25% 26% 18% 18% 23% 20% 17% 16% Every/most days 14% 13% 13% 13% 12% 10% 10% 10% 8% WatchFree The Roku Pluto TV TV Plus Plex Redbox Xumo Tubi Crackle Vudu (free)LG Channel IMDbTV (Vizio TVs) Channel (Samsung Streaming Free Live Movies & Plus TVs) Live TV TV TV (powered by Xumo)

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 29 The Roku Channel, Pluto TV, IMDb TV and Tubi are experiencing the greatest increase in usage

Most Frequently Used Free Streaming Services & % Using More Often (April 2020) 45% 44% 41% 41% 39% 38% 37% 36% 35% 31% 28% 28%

29% 27% 27% 25% 23% 20% 19% 18% 17% 19% 15% 16%

The Roku Pluto TV TV Plus (on WatchFree Plex Tubi Movies Xumo LG Channel Redbox Free IMDbTV Vudu (free) Crackle Channel Samsung TVs) (on Vizio TVs) Streaming & TV Plus (powered Live TV Live TV by Xumo)

% of subscribers that use at least weekly % Using More Often

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 30 Reasons for subscribing and increased usage

The NPD Group, Inc. | Proprietary and confidential Across the TV services measured, sign-up and usage are driven by the right mix of movies and TV shows available to stream on TV-connected devices

Top 10 Reasons for Signing up/Increased Usage (All TV services, April 2020)

Can watch on a smartphone or tablet 22% Affordable 22% Easy to use interface 22% Video streaming available 23% Easy to search and discover content 23% Watching more than before 25% Reliable picture quality 26% TV shows watch are available 26% Movies watch are available 26% Can watch on TV-connected device 27%

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 32 Pay TV subscriptions and increased usage are driven by an affinity for the channels, TV shows, news, weather and

Top 10 Reasons for Signing up/Increased Usage (MVPDs, April 2020)

Easy to search and discover content 23% On-demand access 23% Affordable 23% Movies watch are available 24% Watching more than before 27% Catch up on TV shows missed 27% Reliable picture quality 30% News/weather watch is available 30% TV shows watch are available 37% Channels watch are available 37%

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 33 TV Show availability is the #1 reason for vMVPD subscription & engagement In contrast to cable/satellite TV, affordability, driven by Philo, YouTube TV and Sling TV is the 2nd most cited reason. Of note, news/weather is not within the top 10 list for vMVPDs

Top 10 Reasons for Signing up/Increased Usage (vMVPDs, April 2020) Easy to search and discover content 25% Watching more than before 25% Can catch up on TV shows I missed 26% Reliable picture quality 28% 48%: Philo* Live video is available 28% 40%: YouTube TV 36% Sling TV Can watch on TV-connected device 29% Video streaming available 29% Channels watch are available 31% Affordable 32% TV shows watch are available 36% Source: The TV Switching Study *n<100, view results as directional

The NPD Group, Inc. | Proprietary and confidential 34 Affordability, available movies, TV shows, streaming on TV without and reliable picture quality drive SVOD engagement

Top 10 Reasons for Signing up/Increased Usage (SVOD, April 2020)

Can watch on smartphone or tablet 23% Easy to search and discover content 24% Video streaming available 25% Watching more than before 25% TV shows watch are available 26% Reliable picture quality 26% No ads 26% Can watch on TV-connected device 28% Movies watch are available 29% Affordable 30%

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 35 Netflix ranks within the top 3 among core content and cost attributes The top 4 SVOD services rank within the top 4 for affordability

SVOD Service Ranking Among Reasons for Signing up/Increased Usage (April 2020)

Movies watch are TV shows watch are Easy to search and Offers content not Service Rank Affordable available available discover content available another way #1 Netflix Disney+ Hulu Netflix Disney+ #2 Hulu Netflix CBS All Access HBO Now CBS All Access #3 Prime Video Prime Video Netflix Prime Video Netflix #4 Disney+ HBO Now HBO Now Hulu HBO Now #5 ESPN+ Starz Showtime Disney+ Prime Video #6 CBS All Access Showtime Prime Video ESPN+ Apple TV+ #7 Starz Hulu Disney+ CBS All Access Hulu #8 Apple TV+ Apple TV+ Starz Apple TV+ ESPN+ #9 HBO Now CBS All Access ESPN+ Showtime Showtime #10 Showtime ESPN+ Apple TV+ Starz Starz

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 36 Features, not content top the list of reasons for engagement with free streaming video services

Top 10 Reasons for Starting/Increased Usage (Free streaming services, April 2020)

No/little video buffering 19% Offers content not available another way 20% Movies watch are available 20% Reliable picture quality 24% Can watch on a smartphone or tablet 25% Easy to use interface 25% Watching more than before 26% Easy to search and discover content 27% Video streaming available 27% Can watch on TV-connected device 30%

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 37 There is no run away leader driving perceptions of free streaming video content Free Streaming Service Ranking Among Reasons for Starting/Increased Usage (April 2020)

Available content Movies watch are TV shows watch are Easy to search and Offers content not Service Rank improved/increased available available discover content available another way

#1 Redbox Free Live TV* Vudu (free video) Tubi Movies & TV Crackle Tubi Movies & TV

#2 WatchFree (Vizio TVs)* IMDbTV Pluto TV Tubi Movies & TV Redbox Free Live TV*

#3 Plex Streaming Live TV* Tubi Movies & TV Plex Streaming Live TV* Pluto TV Xumo*

#4 Vudu (free video) Plex Streaming Live TV* WatchFree (Vizio TVs)* Xumo* WatchFree (Vizio TVs)*

#5 Crackle Crackle IMDbTV IMDbTV Pluto TV

#6 IMDbTV WatchFree (Vizio TVs)* The Roku Channel The Roku Channel Plex Streaming Live TV*

#7 Xumo* The Roku Channel Xumo* Vudu (free video) Vudu (free video)

#8 Tubi Movies & TV Redbox Free Live TV* Crackle Plex Streaming Live TV* IMDbTV

#9 Samsung TV Plus* Xumo* LG Channels* WatchFree (Vizio TVs)* The Roku Channel

#10 Pluto TV Pluto TV Redbox Free Live TV* Redbox Free Live TV* Samsung TV Plus*

#11 The Roku Channel LG Channels* Vudu (free video) Samsung TV Plus* Crackle

#12 LG Channels* Samsung TV Plus* Samsung TV Plus* LG Channels* LG Channels*

Source: The TV Switching Study *n<100, view results as directional

The NPD Group, Inc. | Proprietary and confidential 38 Future Interest

The NPD Group, Inc. | Proprietary and confidential 42% of consumers are likely to start using a TV service in the next year Positive likelihood rises to 55% among consumers age 18-34

Likelihood to Subscribe/Use New TV/Video Service in Next 12 Months

Extremely, 7% Not at all, 25%

Very, 11%

55%: Age 18-34 48%: Age 35-54 27%: Age 55+

Somewhat, 24%

Not too, 33%

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 40 Free streaming and transactional video consumers are the most likely to be considering trying services within the next year

Likelihood to Subscribe/Use New TV/Video Service in Next 12 Months

9% 10% 11% 9% 8% 8% 13% 12% 13% 12% Extremely 14% 13% 12% 16% 15% 16% 19% 17% 18% 18% 23% Very 26% 26% 30% 28% 25% 29% 27% 27% 27% Somewhat

Not too

Not at all

AVOD MAU TVOD Users DVD/BD Buyers Premium Net Subs vMVPD Subs DTC Network Subs OTA Antenna Users Movie Theatre Patron Netflix/Hulu/Prime MVPD Subs Subs

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 41 Viewers are the most likely to cite a likelihood to add an SVOD service in the future, in part due to the volume of services now available

TV Service Types Likely to Subscribe/Use in Next 12 Months 23% (April 2020)

8% 8% 8% 7%

SVOD Premium network Free streaming MVPD vMVPD

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 42 Virtual MVPDs have high potential growth rates in the coming year

Potential Annual Growth Rate: MVPDs/vMVPDs (As a % of each service’s subscriber base, April 2020) 115% 86% 72% 67% 61%

17% 18% 13% 13% 9% 11% 11% 13%

Source: The TV Switching Study *n<100, view results as directional Norm includes all TV services measured, MVPDs/vMVPDs/Premium networks/SVOD/AVOD; list in appendix

The NPD Group, Inc. | Proprietary and confidential 43 The potential growth rate for Apple TV+ and CBS All Access top other SVOD services, however they also have the highest potential churn rate* Disney & WarnerMedia services have high potential growth rates Potential Annual Growth Rate: Top 10 SVOD Services 37% (As a % of each service’s subscriber base, April 2020)

23% 20% 17% 17% 13% 14% 10% 9% 8% 4% 4%

Source: The TV Switching Study Norm includes all TV services measured, MVPDs/vMVPDs/Premium networks/SVOD/AVOD; list in appendix *Potential churn rate listed on Slide 57

The NPD Group, Inc. | Proprietary and confidential 44 The potential growth rate for free streaming services comes in lower than actual recently reported figures. This is, in part, due to new growth coming from word of mouth as new users discover the services.

Potential Annual Growth Rate: Free Streaming Services (As a % of each service’s annual user base, April 2020) 26%

13% 10% 10% 10% 9% 9% 9% 9% 8% 8% 6% 7% 6% 6% 1%

Source: The TV Switching Study Norm includes all TV services measured, MVPDs/vMVPDs/Premium networks/SVOD/AVOD; list in appendix

The NPD Group, Inc. | Proprietary and confidential 45 Reason for cancelling and decreased usage

The NPD Group, Inc. | Proprietary and confidential Cost and lack of interest in content drives TV service cancellation

Top 10 Reasons for Cancelling/Decreased Usage (All TV services, April 2020)

Too many ads 11% TV series we were watching ended 11% Able to get content another way 13% More expensive than other options 13% No longer like its content 14% Replace(d) it with another service(s) 14% Other services offer better content 14% Free trial ended 14% Not watching as much as before 22% Too expensive 23%

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 47 Cost and price in relation to other services drives cable/satellite cancellation

Top 10 Reasons for Cancelling/Decreased Usage (MVPDs, April 2020) Discounted promotion ended 12% Too many ads 13% Other services offer better content 13% Able to get content another way 15% Can't subscribe only to the channels we want 17% Not watching as much as before 18% Poor customer service 20% Replace(d) it with another service(s) 21% More expensive than other options 28% Too expensive 40%

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 48 Cost and free trials ending are driving vMVPD cancellation, less so cost in relation to other options as seen with cable/satellite TV

Top 10 Reasons for Cancelling/Decreased Usage (vMVPDs, April 2020)

Channels we watch aren't available 11% No longer like its content 12% Discounted promotion ended 12% Not watching as much as before 13% Other services offer better content 15% Able to get content another way 16% Replace(d) it with another service(s) 16% More expensive than other options 18% Free trial ended 24% Too expensive 30%

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 49 Lack of use (content) is the primary challenge for SVOD services. Affordability impact SVOD far less than (v)MVPDs. Free trials ending are the second most common reason for cancellation Top 10 Reasons for Cancelling/Decreased Usage (SVOD, April 2020)

Movies we watch aren't available 12% More expensive than other options 12% Able to get content another way 13% Discounted promotion ended 13% Other services offer better content 14% TV series were watching ended 15% No longer like its content 15% Too expensive 20% Free trial ended 21% Not watching as much as before 23%

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 50 Services with the highest rate of free trial^ customers also rank the highest for cancellation due to free trials ending

SVOD Service Ranking Among Reasons for Cancelling/Decreased Usage (April 2020)

Service Rank Not watching as much Free trial ended Too expensive No longer like its content TV series watching ended

#1 Prime Video CBS All Access* HBO Now Apple TV+* HBO Now #2 Netflix Apple TV+* CBS All Access* Showtime CBS All Access* #3 Showtime Disney+ Showtime Disney+ Showtime #4 Apple TV+* Showtime Starz Netflix Netflix #5 HBO Now Starz Netflix Prime Video Starz #6 ESPN+ Hulu Apple TV+* Starz Hulu #7 Hulu ESPN+ Disney+ CBS All Access* Apple TV+* #8 Starz HBO Now Hulu Hulu Prime Video #9 Disney+ Prime Video ESPN+ HBO Now ESPN+ #10 CBS All Access* Netflix Prime Video ESPN+ Disney+

Source: The TV Switching Study *n<100, view results as directional ^ Free trial rates are on slide 11

The NPD Group, Inc. | Proprietary and confidential 51 Lack of exclusive content and the ad load impact free streaming engagement the most

Top 10 Reasons for Stopping/Decreased Usage (Free streaming services, April 2020)

Too much video buffering 12% TV shows we watch aren't available 14% Movies we watch aren't available 15% No longer like its content 15% Replace(d) it with another service(s) 16% Doesn't offer the newest content 17% Able to get content another way 17% Other services offer better content 18% Too many ads 19% Not watching as much as before 29%

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 52 Free Streaming Service Ranking Among Reasons for Stopping/Decreased Usage (April 2020)

Other services offer Able to get content Doesn’t offer the Service Rank Not watching as much Too many ads better content another way newest content #1 Pluto TV Pluto TV Tubi Movies & TV Redbox Free Live TV* Tubi Movies & TV #2 Tubi Movies & TV Vudu (free video) Crackle Tubi Movies & TV LG Channels* #3 Vudu (free video) Samsung TV Plus* Pluto TV The Roku Channel Crackle #4 Plex Streaming Live TV* Crackle The Roku Channel Pluto TV Pluto TV #5 Samsung TV Plus* Xumo* Vudu (free video) Xumo* The Roku Channel #6 Crackle Tubi Movies & TV Plex Streaming Live TV* Samsung TV Plus* Vudu (free video) #7 LG Channels* LG Channels* Xumo* LG Channels* Redbox Free Live TV* #8 Redbox Free Live TV* WatchFree (Vizio TVs)* Redbox Free Live TV* Vudu (free video) WatchFree (Vizio TVs)* #9 Xumo* IMDbTV* IMDbTV* Crackle Plex Streaming Live TV* #10 WatchFree (Vizio TVs)* Redbox Free Live TV* Samsung TV Plus* IMDbTV* Samsung TV Plus* #11 IMDbTV* Plex Streaming Live TV* LG Channels* WatchFree (Vizio TVs)* Xumo* #12 The Roku Channel The Roku Channel WatchFree (Vizio TVs)* Plex Streaming Live TV* IMDbTV* Source: The TV Switching Study *n<100, view results as directional

The NPD Group, Inc. | Proprietary and confidential 53 Cancellation Risk

The NPD Group, Inc. | Proprietary and confidential 29% of viewer are considering cancelling a TV service within the next year Potential churn is highest among viewers age 18-34

Likelihood to Cancel/Stop Using TV/Video Service in Next 12 Months

Extremely, 4% Very, 7% Not at all, 31% 40%: Age 18-34 Somewhat, 18% 29%: Age 35-54 21%: Age 55+

Not too, 39%

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 55 On the surface, the potential churn levels for SVOD & cable/satellite TV look similar, however, most have 1 pay TV service and 4 SVOD services showing churn is a greater challenge for cable

TV Service Types Likely to Cancel/Stop Using in Next 12 Months 13% (April 2020)

10%

5% 4%

2%

SVOD MVPD Premium network Free streaming vMVPD

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 56 Potential churn rates for cable and satellite TV are around twice the rate as for all TV services

Potential Annual Churn Rate: MVPDs/vMVPDs (As a % of each service’s subscriber base, April 2020) 20% 17% 16% 15% 14% 14% 14% 13% 13% 12% 12% 12% 8%

Source: The TV Switching Study *n<100, view results as directional Norm includes all TV services measured, MVPDs/vMVPDs/Premium networks/SVOD/AVOD; list in appendix

The NPD Group, Inc. | Proprietary and confidential 57 The SVOD services with the highest rate of subscribers on free trial*, Apple TV+ and CBS All Access, have the highest potential churn rates

Potential Annual Churn Rate: Top 10 SVOD Services 15% (As a % of each service’s subscriber base, April 2020) 11% 11% 10% 9% 9% 8% 8% 8% 7% 6% 5%

Source: The TV Switching Study * Free trial rates are on slide 11

The NPD Group, Inc. | Proprietary and confidential 58 Viewer propensity to stop using free streaming services is below the norm

Potential Annual Churn Rate: Free Streaming Services 8% (As a % of each service’s annual user base, April 2020) 7% 6% 5% 5% 5% 4% 4% 4% 4% 3% 3% 3% 3% 3% 3%

Source: The TV Switching Study

The NPD Group, Inc. | Proprietary and confidential 59 Appendix

The NPD Group, Inc. | Proprietary and confidential 60 Methodology

This report draws data from the semi annual TV Switching Survey. The survey was fielded to 5,014 U.S. consumers age 18 and older from diverse regions and demographical backgrounds. They reported on all of the TV services they use and which they intend to add or cancel. This survey was fielded from April 8th through April 23rd, 2020.

This analysis has an accompanying excel data dashboard which allows for segmentation among over 300 consumer groups.

The NPD Group, Inc. | Proprietary and confidential 61 SVOD & Direct-to-Consumer App List

DTC Networks DTC Networks DTC Sports SVOD

Acorn TV HBO Now Live or B/R Live Amazon Prime Vide BET+ History Vault DAZN Apple TV+ Boomerang Kid Genius ESPN+ Hulu CBS All Access Lifetime Movie Club MLB.TV Netflix Cheddar NBA League Pass Cinemax PBS Kids NFL Game Pass Now PBS Masterpiece NHL.TV Curiosity Stream Showtime PGA Tour Live DC Universe Shudder Sports Illustrated TV Destination Unknown Plus UFC Fight Pass Disney+ Starz WWE Network Now Sundance Now True Crime Files by

The NPD Group, Inc. | Proprietary and confidential MVPDs, vMVPDs & Premium Network List

MVPDs vMVPDs Premium Networks

Cable TV Paid Streaming TV Service Providers Cinemax / AT&T TV Now HBO FuboTV Showtime from Altice Hulu with Live TV Starz Philo The Movie Channel Other Cable Company Sling TV YouTube TV Satellite TV DirecTV

Telecom TV AT&T TV AT&T U-verse FiOS Other Telecom Company

The NPD Group, Inc. | Proprietary and confidential Free Streaming Services & Transactional Digital List

Free Streaming Transactional Digital

Pluto TV Amazon Video WatchFree (on Vizio TVs) AMC Theaters Video Samsung TV Plus Apple TV/iTunes Tubi Movies & TV FandangoNOW Xumo Play Movies and TV LG Channels Movies & TV Vudu (free video) PlayStation Network The Roku Channel Redbox On-demand Redbox Free Live TV Row8 Crackle VUDU YouTube YouTube IMDbTV Pay TV provider Plex Streaming Live TV

The NPD Group, Inc. | Proprietary and confidential