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Google Fiber Google Fiber Pre-Launch Survey August 2012 © 2012 SmithGeiger LLC The Research • Objectives: o Establish a baseline of media consumption and piracy levels in KC prior to the launch of Google Fiber, including o Awareness and interest in both Google Fiber and Google TV o Projected changes in behavior if Google Fiber is adopted o In the post wave, we will assess any changes in consumption and piracy levels after Google Fiber is in homes o Note: the post wave will be conducted next year, a few months after Google Fiber launches • Details: o SmithGeiger completed comprehensive online interviews with 2,159 Kansas City residents and 1,205 St. Louis residents for a total of 3,364 respondents. o Respondents were ages 13-54, residents of the Kansas City and St. Louis markets o Demographics were managed to be representative of each market. o The average interview required approximately 18 minutes to complete. o Interviews were conducted in late June and early July, 2012. © 2012 SmithGeiger LLC 2 Key Findings • St. Louis worked well as a control market for Kansas City, with most responses a mirror image between the two markets o Similar levels of piracy, attitudes toward piracy, and interest in the concept of Google Fiber • Not surprisingly, Kansas City residents are much more familiar with Google Fiber than St. Louis (28% vs. 8%). o Much of the awareness in KC has been driven by press / PR • Overall, interest is strong in both markets once they know the concept o 57% “can’t wait” in KC, 52% in St. Louis o Interest is even higher among males 18-34 and current movie pirates • Appears there will be some shifts in HE activity after Google Fiber: o 32% in KC expect to do more illegal downloading or streaming o 39% in KC would use paid streaming subscription services more o 34% in KC would purchase/rent more online o 34% in KC would rent fewer discs, 29% would buy fewer © 2012 SmithGeiger LLC 3 Key Findings • Overall movie piracy levels are at 31% in both markets – with variations by age group: • In Kansas City, for example, we see: o Ages 13-17 – 36% movie pirates o Ages 18-24 – 47% movie pirates o Ages 25-34 – 34% movie pirates o Ages 35-44 – 24% movie pirates o Ages 45-54 – 20% movie pirates © 2012 SmithGeiger LLC 4 A look at KC and St. Louis Consumers © 2012 SmithGeiger LLC Demos nearly identical across markets Demographics Demographics Kansas City St. Louis % Female 51% 50% Average Age 34 33 % White 77% 76% Average Length of Residence 12 13 Average Years of Education 15 14 % Employed Full-Time 54% 48% Average Household Income $68,343 $63,813 % Married 43% 41% % With Children in Home 48% 48% © 2012 SmithGeiger LLC 6 Tech adoption also very similar Tech Usage 76% 24% Desktop or laptop computer that does not play Blu-ray discs 75%Standalone Blu-ray player (non-PS3) 21% Video on Demand programming66% from a cable company (VOD) 23% High Definition television (HDTV) 65% 26% 56%Video iPod or other portable video player 22% MP3 or portable audio- player (including iPod) 55% 23% 22% Desktop46% or laptop computer that plays Blu-ray discs 22% Nintendo Wii 49% Sony PS3 21% Digital video recorder (DVR) or a TiVo 44% 22% 41% 15% Internet-enabled TV 16% DVD or Blu-ray recorder 41% 43% 3D TV 5% 34% 4% Xbox 360 36% 5% Kansas City Roku box 5% Portable videogame system 29% 33% Apple TV 4% St. Louis 3% iPad, Samsung Galaxy, or other tablet 28% 2% 21% Slingbox 2% 25% 2% Wireless enabled e-book reader 26% None of these 2% S11: Which of the following do you currently own, use, or subscribe to? © 2012 SmithGeiger LLC 7 Some variance in current TV service • Digital cable has a firmer foothold in Kansas City than in St. Louis, where DirecTV is notably stronger. TV Service Digital cable 39% Kansas City 29% St. Louis 14% AT&T U-verse 18% 14% Regular or analog cable 15% 14% DirecTV 21% 11% Dish Network 12% 1% Verizon FiOS 1% 3% Other 2% 15% None of the above 12% S15: Which of the following types of television service do you currently receive? © 2012 SmithGeiger LLC 8 Media subscriptions similar as well • More than 1 in 3 in both markets use Netflix for streaming video, but most still have no regular paid streaming video or music subscription. Monthly Subscription Kansas City St. Louis 53% 55% 36% 35% 15% 13% 7% 8% 5% 6% 5% 4% Netflix streaming subscription Hulu Plus Blockbuster Total Access S12: Which of the following services do you currently have a paid subscription to? © 2012 SmithGeiger LLC 9 Internet usage similar across markets • St. Louis residents spend just slightly more time than Kansas City online. Hours Spent on the Internet per Day Average Hours Spent on the Internet Kansas City 4.7 72% St. Louis 5.3 66% Kansas City 25% St. Louis 21% 4% 6% 1% 1% 2% 1% 1% 1% Less than 1 1 to 5 6 to 10 11 to 15 16 to 20 More than 20 S18: In a typical day, how many hours would you say you spend on the internet? © 2012 SmithGeiger LLC 10 Movie consumption similar across markets • DVD and Blu-ray rentals show the highest average usage in both markets. Movie Viewing by Each Method within the Past 12 Months Averages 81% 5.0 Saw a movie in a theater In person 77% 4.5 31% 1.7 Paid to order on cable/satellite/ISP via Video-On-Demand or Pay-Per-View Via TV service 27% 1.6 58% 6.8 Rented on DVD/Blu-ray from a rental store or kiosk, such as Blockbuster or RedBox 53% 5.9 50% 3.1 Purchased a DVD/Blu-ray from a retail store or online retailer 51% 3.3 Via 26% 5.1 Rented on DVD/Blu-ray from a mail subscription service such as Netflix physical 25% 4.4 disc 20% 1.3 Purchased or been given a burned disc or other storage media 21% 1.3 8% 0.4 Purchased a bootleg DVD/Blu-ray from a street vendor 9% 0.7 - Indicates pirate items Kansas City St. Louis S21: Approximately how many movies/TV shows have you watched in each of the following within the past 12 months? © 2012 SmithGeiger LLC 11 Subscription viewing a bit higher in KC • In terms of averages, Kansas Citians are slightly more active viewers of subscription-paid movies (Netflix) on the web. Movie Viewing Via the Internet Within the Past 12 Months Averages 9.4 Watched on the internet from a monthly paid subscription service, such as Netflix Watch Instantly 33% 32% 6.8 2.0 Watched on the internet from a TV channel’s website or TV service provider’s website 22% 24% 2.2 19% 1.0 Paid to download and own from a paid downloading service, such as iTunes or Amazon downloads 16% 0.9 13% 1.0 Streamed from streaming websites like MegaVideo 12% 0.8 Via 11% 0.5 internet Paid to rent and download from a digital rental service, such as iTunes 9% 0.4 0.8 Paid to rent and stream from a digital rental service, such as Amazon Instant Video 10% 8% 0.4 1.2 Downloaded from peer-to-peer downloading services 9% 9% Kansas City St. Louis 0.9 0.6 Downloaded from downloading websites like MegaUpload 9% 9% 0.6 - Indicates pirate items S21: Approximately how many movies/TV shows have you watched in each of the following within the past 12 months? © 2012 SmithGeiger LLC 12 KC slightly higher (on average) for TV shows via VOD and Netflix by mail TV Show Viewing within the Past 12 Months Averages 9% 10% 1.5 0.7 Via TV service 19% 0.8 Purchased a DVD/Blu-ray from a retail store or online retailer 20% 0.8 15% 1.6 Rented on DVD/Blu-ray from a mail subscription service such as Netflix 13% 1.0 Via 9% 0.7 Purchased or been given a burned disc or other storage media physical 10% 0.5 disc 9% 0.5 Rented on DVD/Blu-ray from a rental store or kiosk, such as Blockbuster or RedBox 8% 0.3 6% 0.8 Purchased a bootleg DVD/Blu-ray from a street vendor 5% 0.2 - Indicates pirate items Kansas City St. Louis S21: Approximately how many movies/TV shows have you watched in each of the following within the past 12 months? © 2012 SmithGeiger LLC 13 KC also slightly higher (on average) for TV shows via online subscription • Kansas Citians have watched an average of 14 TV episodes on the internet via a monthly paid subscription service over the past year, versus 11 for St. Louis residents. TV Show Viewing Via the Internet Within the Past 12 Months Averages 42% 8.3 Watched on the internet from a TV channel’s website or TV service provider’s website 42% 6.9 14.3 Watched on the internet from a monthly paid subscription service, such as Netflix Watch Instantly 30% 28% 10.6 1.0 Paid to download and own from a paid downloading service, such as iTunes or Amazon downloads 12% 11% 0.4 2.0 Streamed from streaming websites like MegaVideo 11% 11% 1.6 Via 1.0 Downloaded from peer-to-peer downloading services 8% internet 8% 1.0 0.6 Downloaded from downloading websites like MegaUpload 7% 7% 0.7 Paid to rent and download from a digital rental service, such as iTunes 7% 0.3 6% 0.3 Paid to rent and stream from a digital rental service, such as Amazon Instant Video 7% 0.3 7% 0.4 Kansas City St.
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