Conviva's State of Streaming: Content Discovery

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Conviva’s State of Streaming: Content Discovery Early Insights for ARF LA 7/20/21

• Panel Discussion + Q&A • Amy Shelby – VP, Marketing - The CW • Steven Millman – SVP, Research - Dynata Today’s • Nick Cicero – VP, Strategy - Conviva Agenda • Edwin Wong – SVP, Insights + Innovation - Vox Media

2 © 2021 Conviva. All Rights Reserved. Research Set Up Age of Participants 20.00% 18.00% State of Streaming Content Discovery 2021 16.00% • Consumers Research Conducted by Dynata and 14.00% 12.00% Conviva 10.00% Research Objectives 8.00% 6.00% • To understand the sources of information that lead to 4.00% discovery of video content on Streaming Services 2.00% • Understand the role that social media plays in content 0.00% 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75+ discovery of video content on Streaming Services

Target Audiences Gender • Adults 18+, use social media, watch TV or other video content through internet streaming, watch linear TV (not streamed from the internet)

Recruitment 52% 48% • Study Dates: 6/10/2021 - 6/14/2021 • Sample Size: 2,502 Consumers

Male Female

• Content Discovery is still seen as a problem by many consumers. Sources of discovery is extremely diverse • TV Ads are the most common source of discovery as consumers look for new options • Random chance • Streaming service recommendations • In person friends/family talk/recommendations (includes social activity from friends) • Trailers, ads, posts on social platforms • For most, Social Media is not the most important source of info for discovery of new shows, however Social Media often intersects with the above discovery sources. • However, Social Media users are extremely valuable users to Streaming Services. There is a direct correlation between high social media usage and high streaming video consumption.

Streaming Video Consumption by Age Streaming Video Consumption by Gender 30.00%

25.00% Low (1-3 Platforms)

20.00%

15.00% Medium (4-5 Platforms)

10.00%

5.00% High (6-8 Platforms)

0.00% 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75+ 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00%

High (8+ Hours) Medium (5-7 Hours) Low (0-4 Hours) Male Female

Insight: It is essential for streaming I discovered it by chance services to invest in personalization

algorithms to drive viewers deeper I saw an ad for it on TV into the content catalog. It was recommended by a friend or We talk about the quality of Netflix family member and TikTok's recommendation and I saw it recommended while watching curation. There’s a reason for this a streaming service success! Viewers want to be served My friends were talking about it in up new content to watch. person

I read or heard a review

I saw an ad for it on social media

My friends were talking about it on social media

0.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%40.00%

6 © 2021 Conviva. All Rights Reserved. What are consumer perceptions of watching Own Your Algorithm entertainment content? to Spark Serendipity I often find great shows, movies and videos just by browsing 62% Insight: It is essential for streaming I’m always looking for new shows and movies to watch 58% services to invest in personalization I like to watch my favorite shows and movies again and again 54% algorithms to drive viewers deeper Watching TV shows and movies is very important to me 53% into the content catalog. I often recommend shows and movies to my friends and family members 50% There are so many shows and movies available today, it is hard to find the best ones 50% We talk about the quality of Netflix I like to talk about shows and movies with my friends 50% and TikTok's recommendation and Today’s shows and movies aren’t as good as the ones I grew up with 48% curation. There’s a reason for this I often watch the shows my family and friends like 48% success! Viewers want to be served I usually don’t plan what to watch ahead of time 43% up new content to watch. I try to get a lot of information about a show or movie before I invest time in watching 41%

Watching news is more important to me than entertainment shows 39%

I regularly check out websites about TV shows, movies, and actors 38%

I spend more time on social media than watching shows and movies 35%

I know a lot about new shows and movies 34%

For me, the best thing on TV is sports 30%

I would rather play video games than watch TV 24%

Base: Total Respondents (n=2502)

I saw an ad for it on TV

I discovered it by chance Insight: Still important for linear TV advertising in marketing of streaming I saw it recommended while watching a streaming service

shows and platforms. It was recommended by a friend or family member

My friends were talking about it in person

Viewers tune in for the shows they I saw an ad for it on social media have to watch live, and gain exposure to new programs to log in My friends were talking about it on social media I saw a post from a TV network or streaming service I follow and watch. on social media

It was recommended by a friend on social media

TV Ads can often have the widest I read or heard a review reach, sparking discussion around I saw a cast member talk about the show/movie on TV

new shows and movies, which turns It was recommended by a celebrity or influencer on social into recommendations, reviews, media social media posts, etc. It was recommended in an email from a streaming service 0% 20% 40% 60% 80% 100% 120% 140%

High Agg Streaming (8+) Medium Agg Streaming (5-7) Low Agg Streaming (0-4)

I saw an ad for it on TV

Insight: Still important for linear TV I discovered it by chance advertising in marketing of streaming I saw it recommended while watching a streaming shows and platforms. service

It was recommended by a friend or family member Viewers tune in for the shows they have to watch live, and gain My friends were talking about it in person exposure to new programs to log in I saw an ad for it on social media and watch.

My friends were talking about it on social media

I saw a post from a TV network or streaming service I TV Ads can often have the widest follow on social media reach, sparking discussion around new shows and movies, which turns It was recommended by a friend on social media into recommendations, reviews, I read or heard a review social media posts, etc. 0% 20% 40% 60% 80% 100% 120% 140%

High Agg Streaming (8+) Medium Agg Streaming (5-7) Low Agg Streaming (0-4)

Recommendations I saw an ad for it on TV

I discovered it by chance Insight: Responses highlight a diversity of influences and I saw it recommended while watching a streaming service

demonstrate the indirect power of It was recommended by a friend or family member promotions: if they reach your friends, My friends were talking about it in person those friends might recommend the show. I saw an ad for it on social media

My friends were talking about it on social media

I saw a post from a TV network or streaming service I follow on social media

It was recommended by a friend on social media

I read or heard a review

I saw a cast member talk about the show/movie on TV

It was recommended by a celebrity or influencer on social media

It was recommended in an email from a streaming service

0% 20% 40% 60% 80% 100% 120% 140%

High Agg Streaming (8+) Medium Agg Streaming (5-7) Low Agg Streaming (0-4)

In a typical week, how much time do you spend doing the following activities? - • The largest number of Watching television or other video content through Internet streaming? respondents viewing 5+ Hours None/not applicable per day are also users who report using the most social More than 8 hours/day (8)

media platforms 5 to 8 hours/day (6.5) • These users are watching video everywhere they go, when 3 to 5 hours/day (4)

they’re on their commute, when 1 to 3 hours/day (2) they’re at school or work, on the way home and binge streaming Less than 1 hour/day (1)

at night. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Number of Aggregate High (6-8) Medium (4-5) Low (1-3) None Social Media Platforms Used:

• Social media is still the water cooler Base: Spend time social networking in a typical week n=2191 where people go to share their Looked at posts from friends 62% thoughts, reactions, engage with Liked a post 59% friends. This has been augmented by Watched at least one minute of a video 58% an influx of video Commented on a post 51% Watched a full video 50% • Posts from friends still dominant Sent a direct message to someone 49% activity, lending to discovery of Posted something on your account 43% new shows through friends and Shared a video with a friend 36% Clicked on an ad to get more information or buy 30% groups something • Video usage on social channels Looked at posts from a TV Network or TV Show 26%

has significantly grown, which can Looked at the post of a celebrity or influencer I follow 25% overlap with various other Participated in a group 23% discovery sources such as trailers, None of the above 7% influencers, videos from official Avg. number of activities 5.5 accounts

12 © 2021 Conviva. All Rights Reserved. High Consumers of Streaming Services by all Total Respondents Netflix Streaming = Larger Amazon Prime YouTube Share of Wallet Hulu Disney+ HBO Max On average participants selected 3.5 Peacock Tubi platforms. Roku Pluto TV Discovery+ AppleTV+ Paramount+ Crackle A&E AMC IMDBTV Vudu ESPN+ Sling TV CW Seed Google TV NBA League Pass Fubo Xumo Fa ndom DAZN Vix

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

13 © 2021 Conviva. All Rights Reserved. High Consumers of Streaming Services by High Social Platform Users Netflix Streaming = Larger Amazon Prime YouTube Share of Wallet Disney+ Hulu HBO Max On average participants selected 3.5 AppleTV+ Peacock platforms. Roku Discovery+ High Consumers of Streaming Video ESPN+ and High Social Media Users increase Paramount+ Pluto TV to 6.3 and 6 platforms . Google TV Tubi Insight: If your streaming service Crackle A&E isn’t one of the top 4 Platforms AMC Sling TV listed here, you need to use NBA League Pass social to engage consumers Vudu IMDBTV willing to spend more time with CW Seed Fa ndom more platforms Xumo DAZN Fubo Vix

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

Which of the following social media Which of the following social media platforms do you use in a typical week? platforms do you use in a typical week?

Snapchat Other

Twitch Twitch

LinkedIn Linkedin Snapchat

YouTube TikTok

TikTok Twitter

Instagram Instagram

YouTube Twitter

Fa cebook Fa cebook 0 0.5 1 1.5 2 2.5 3

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% High Video Content (5+ hours/day) High Linear TV (5+ hours/day) NET: 18-34 NET: 35-54 NET: 55-74 High Streaming Services (8+)

Where do 14 consumers Engagement 6 3 engage with 5 10 Facebook Streaming TV Instagram Social Media Twitter 56 YouTube Content Most? %

Facebook Instagram Twitter 20 86 Percent Video 60% 43% 7% Content

Post type with Video Carousel Video Highest avg E/R

Social Data from Conviva Social Insights "Streaming TV Platforms" Leaderboard on 16 © 2021 Conviva. All Rights Reserved. Facebook, Instagram, Twitter, YouTube. 130 Accounts. YTD 2021 Influencers continue to be a critical part of the marketing mix

Data Set-Up In the past week, which of the following social media platforms do you • Two-thirds of social media users recalled recall seeing promotional posts by influencers for a new show or movie?

recently seeing promotional posts by influencers YouTube for a new show or movie on social media and Fa cebook the same proportion recalled seeing ads from TV or streaming services, with Facebook and Instagram

YouTube being the top platforms, followed by TikTok Instagram. Twitter

• Use of influencers is VITAL – these folks are Snapchat megaphones for positive or negative and more authentic than ads LinkedIn

Twitch

None of the above

Other

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

High Social Platform Users High Streaming Consumers

Social Media Usage by Age Social Platform Usage by Gender 35.00%

30.00% Low (1-3 Platforms)

25.00%

20.00%

Medium (4-5 Platforms)

15.00%

10.00%

High (6-8 Platforms) 5.00%

0.00% 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75+ 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00%

High (6-8 Platforms) Medium (4-5 Platforms) Low (1-3 Platforms) Male Female

• Overall, the younger the age group, the higher their engagement with video content and social media. • Cross-consumption of streaming, linear TV content and social media is evident, and the results challenge the idea that one may be replacing the other. • High consumers of streaming tended to have a diverse content viewership of linear services and vice-versa. Additionally, high users of social media viewed a larger variety of both streaming and linear content.

• Word of mouth/recommendations and advertising were important elements for content discovery among both streamers and linear TV consumers. Though not at the top of the list, social media was also a relevant discovery source, especially among streamers. Social media and word of mouth were particularly significant sources of both streaming and linear discovery among consumers aged 18-34. • Trailers and previews, reviews, and ads for shows and movies were all important for consumers to decide what to watch. Almost half of streamers also found that recommendations by streaming services are usually very good, and this proportion was even higher among those aged 18-34.

• Two-thirds of social media users recalled recently seeing promotional posts by influencers for a new show or movie on social media and the same proportion recalled seeing ads from TV or streaming services, with Facebook and YouTube being the top platforms, followed by Instagram. • Targeting opportunities for content providers have great variety, with differences across age, cross-consumption of content types, social media platforms, genre preferences, and so on. In order to achieve high reach, campaigns must diversify their advertising approach.

About Conviva Conviva is the intelligence cloud for streaming media. Powered by our patented Stream Sensor™ and StreamID™, our real-time platform enables marketers, advertisers, tech ops, engineering and customer care teams to build, engage and monetize their audiences. Conviva is dedicated to supporting brands like CCTV, DAZN, Disney+, Hulu, Paramount+, Peacock, Sky, Sling TV, TED and WarnerMedia as they unlock the incredible opportunity in streaming media. Today our platform processes nearly 2 trillion streaming data events daily, supporting more than 500 million unique viewers watching 180 billion streams per year across 3.3 billion applications streaming on devices. Conviva ensures digital businesses of all sizes can stream better—every stream, every screen, every second.

to Spark Serendipity I discovered it by chance

I saw an ad for it on TV Insight: It is essential for streaming services to invest in personalization It was recommended by a friend or family member algorithms to drive viewers deeper I saw it recommended while watching a streaming service into the content catalog. My friends were talking about it in person

I read or heard a review We talk about the quality of Netflix and TikTok's recommendation and I saw an ad for it on social media curation. There’s a reason for this My friends were talking about it on social media success! Viewers want to be served It was recommended by a friend on social media I saw a post from a TV network or streaming service I follow on up new content to watch. social media

I saw a cast member talk about the show/movie on TV

It was recommended by a celebrity or influencer on social media

It was recommended in an email from a streaming service

I heard an ad for it on the radio or during a podcast

I saw an ad for it in a paper or magazine

Other

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00%