WHERE ARE THE AUDIENCES?

Full Report – 15-24s Introduction

New Zealand On Air’s (NZ On Air) two yearly “Where Are The Audiences?” study is an important input in understanding how to reach New Zealanders overall and harder to reach audiences in particular.

• This report summarises the results from NZ On Air’s 2018 “Where Are The Audiences?” study based on 15-24 year olds. − It compares the 2016 and 2018 results among 15-24 year olds, as well as comparing to the 2018 results among all New Zealanders.

Glasshouse Consulting May 2018 | SLIDE 2 Research Approach - Overview

• The first priority in the design and conduct of the 2018 study was to ensure valid and robust comparisons could be made to previous studies. Therefore the overall approach, timing of the study, sampling and respondent definition, question flow and most wording, and post-weighting factors were kept consistent with the 2014 and 2016 studies.

• This included asking respondents about their behaviour “yesterday” within specific time periods between 6am and midnight. This technique enables the creation of accurate, survey based measures of actual behaviour by grounding responses in behaviour that is fresh in respondents’ minds and within specific parts of an actual day.

• For the main study a total sample of n=1,414 was developed among all New Zealanders aged 15 and over, with representative samples created for each day of the week (n=200 per day) so that results can be extrapolated to a “typical” day.

• This report is based on n = 221 New Zealanders aged 15-24 who were included in the main study.

• The total sample has a maximum margin for error of +/-2.6%, and the 2018 sample of 15-24 year olds has a maximum margin for error of +/-6.6%.

Glasshouse Consulting May 2018 | SLIDE 3 Research Approach – Overall Study

• As in 2014 and 2016, a mixed methodology of telephone and online interviewing was used.

• N=1,002 interviews were completed by telephone using random digit dialling, and n=412 interviews were completed online using Consumer Link’s Flybuys research panel.

• The online interviews were conducted among consumers without access to a home landline. − The 2013 Census showed that 15% of people live in homes without a landline, however this incidence will have undoubtedly grown since 2013. Nielsen CMI data was used to estimate the 2018 incidence at 35% (it was estimated as 25% in 2016). › In 2013 Nielsen CMI estimated non-landline penetration at 25% (compared to 15% in the Census). In 2016 Nielsen estimated this incidence at 45%. Given the previous over-estimate compared to the 2013 Census result, we factored the 2018 estimate down to 35%.

• Interviewing was conducted between April 16 and May 13. Fieldwork was conducted at the same time of year as the 2016 study, and timed for after the Commonwealth Games which could have abnormally influenced audience behaviour during that two week period.

• Respondents were defined as all New Zealanders aged 15 and over.

• Regional sample stratification, and minimum quotas for males, 15-24 year olds and ethnicity were implemented.

• The total sample was post-weighted by the following factors to ensure it was representative of the 15+ NZ population; − Access to a landline, gender, age, ethnicity.

Glasshouse Consulting May 2018 | SLIDE 4 Research Scope

• The study investigated the media consumed “yesterday”, for how long, and which channels, stations and sites were used. These questions measured the daily behaviour of the main broadcast, print, online and music media. The bulk of this report examines daily audience behaviour.

• The study also captures the weekly reach of all media, including less frequently used media not covered by the daily measures, so as to provide a single point of comparison of all media included in this study. The first chart in the Summary section examines this overall comparison of all media based on weekly reach.

• Two key aspects were not included in this study or previous studies; − Device used to consume media. (Ownership and access to devices was collected.) − Simultaneous media consumption.

• Apart from changes to specific channels, sites and stations to ensure accuracy, other changes were made to the survey since 2016 to reflect the changing media landscape. These included; − Measuring podcast consumption for the first time. − Removal of specific questions relating to webseries as these are now measured as a type of online video (see next point) − Measuring types of video watched online on sites such as YouTube and Facebook

• The results in this study will not exactly match data from sources such as TV ratings, radio surveys, or online analytics as the methodologies are different. However this study does provide a unique, single source comparison across all media.

Glasshouse Consulting May 2018 | SLIDE 5 Market Context

• When examining changes since 2016 it is useful to note the main developments that have taken place during the intervening two years, and also the developments that preceded 2016.

• This information gives insight in to the stimulus for changes in audience behaviour and also the rate of change in audience behaviour.

Developments 2014 -2016 Developments 2016-2018 PUTs declines PUTS declines NZ launch of Netflix, Lightbox, Neon, NZ On Screen Closure of FOUR, TVNZ Kidzone, The Zone Launch of TVNZ Duke, The Zone, Jones!, Discovery Turbo, Garage Launch of Bravo, HGTV, Viceland, Jones! Too

Restrictions put in place on VPN use after broadcasters challenged Closure of Igloo “Global Mode” services from ISPs Launch of Apple Music Launch of FreeviewPlus, Chromecast Launch of NZME’s Watchme

Glasshouse Consulting May 2018 | SLIDE 6 OVERALL SUMMARY

Weekly Reach Daily Reach Most popular channels, sites and stations Weekly reach is the benchmark for all media covered in this study. Online video, SVOD and listening to music on Youtube deliver bigger audiences on a weekly basis among 15-24s than traditional broadcast media (TV, radio). NZ based SVOD has grown significantly since 2016 to deliver the same weekly reach as linear TV, with listening to music on Spotify only slightly behind.

WEEKLY REACH OF ALL MEDIA | % OF ALL NZERS 2018 15-24s Online video (Eg. 93% 44% 2016 15-24s 95% TV (via FTA platform) 44% 2018 All 15+ YouTube, Facebook) 72% 54% 80% 39% Total (net) SVOD 55% Music (iPod, CDs, vinyl) 60% 62% 47% 74% Streamed, downloaded, 34% Listen to music on YouTube 84% 22% 46% torrented TV shows 8% 73% 26% Live New Zealand Radio 66% Magazine (including online) 31% Apart from this 78% 45% opening chart and 69% 25% following summary Total (net) Linear TV Not measured in 2016 79% Listen to podcasts this report mainly 82% 21% examines daily 69% Downloaded songs/albums for 22% NZ SVOD (e.g. Netflix, Lightbox) 12% media 43% free 48% 5% consumption. 65% 20% Listen to music on Spotify 45% Online NZ radio 19% However the 32% 18% consumption of 15% 56% Used VPN to watch shows on some media must Overseas SVOD (Eg. Netflix, Hulu) 40% 8% 32% overseas website 5% be measured on a 53% 8% weekly basis due to TV (via Pay TV platform) 58% Listen to iHeartRadio 6% less frequent usage. 52% 9% 50% 7% Therefore weekly Newspaper (including online) 61% Online international radio 10% 9% reach provides the 67% best comparison of 46% Look for extra material online 6% Ondemand 49% 5% all media measured 44% about a TV show 6% in this study.

Q We’d like you now to think about what you do over a typical week. Please tell me about how many days per week you would usually do each of the following.

Base: All respondents: (2018 15-24s - n=221; 2016 15-24s - n=249; 2018 All 15+ – n=1,414) Glasshouse Consulting May 2018 | SLIDE 8 The majority of this report examines the behaviour of New Zealand audiences on a daily basis and how that is changing over time. The chart below summarises the daily reach of the main media New Zealanders engage with. DAILY REACH OF ALL MEDIA | % OF ALL NZERS 2018 15-24s 2016 15-24s 78% Online video (Eg. YouTube, Facebook) 84% 2018 All 15+ 52% 78% Music online/streamed (Eg. YouTube, Spotify) 72% 39% 56% Total (net) SVOD 41% 37% 46% Total (net) Linear TV 67% 66% 46% NZ SVOD (Eg. Netflix, Lightbox) 29% 30% 45% Live New Zealand Radio 45% 55% Among 15-24 year olds online 32% TV (via Pay TV platform) 46% 39% media has overtaken traditional 30% Overseas SVOD (Eg. Netflix, Hulu) 30% media in terms of audience size. 16% 25% • Online video and music TV (via FTA platform) 31% 37% streaming both reach nearly 24% NZ Ondemand 25% eight in ten 15-24 year olds 19% 21% each day. Music (iPod, CDs) 46% 20% • SVOD shows the biggest 20% Newspaper (including online) 29% growth since 2016 (56%) 41% 10% over-taking the audience of Listened to a podcast Not measured in 2016 7% declining linear TV (46%). 9% Online NZ radio 7% • Radio audiences are stable 9% 5% among 15-24 year olds. Magazine (including online) 14% 19% 5% Online international radio 5% 4%

Note: TV viewing includes live & time shifted viewing, in and out of home.

BASE: All respondents: (2018 15-24s - n=221; 2016 15-24s - n=249; 2018 All 15+ – n=1,414) Glasshouse Consulting May 2018 | SLIDE 9 Online video sites Youtube and Facebook deliver the biggest daily audiences of 15-24 year olds, followed by Spotify, NZ Netflix and Youtube (for music). TVNZ 2 and TVNZ 1 deliver the biggest daily audiences on traditional broadcast media. MOST POPULAR CHANNELS, SITES & STATIONS (ABOVE 10% REACH ) | % OF ALL NZERS 2018 15-24s 68% 2016 15-24s YouTube (for online video) 72% 2018 All 15+ 42% 54% Facebook (for online video) 57% 32% 54% Spotify 33% 23% 47% Netflix in NZ 30% 27% 36% YouTube (for music) 48% 19% 24% TVNZ 2 33% 20% 23% TVNZ 1 20% 43% 19% TVNZ Ondemand 14% 13% 18% Three 30% 25% Four more channels, sites or stations 14% reach 10% of 15-24s each day: The Edge 14% • Netflix from overseas 7% • Stuff (for online video) 11% NZ Herald (for online video) 5% • Mai FM 11% • Apple Music 11% ZM 15% 6% Q Which of the following did you use yesterday?

Base: All respondents: (2018 15-24s - n=221; 2016 15-24s - n=249; 2018 All 15+ – n=1,414) Glasshouse Consulting May 2018 | SLIDE 10 15-24 year olds demonstrate significantly different behaviour to older New Zealanders with online media dominating their choices over traditional media

• Age and life stage are the most influential differentiators of New Zealand audience behaviour, with online media most popular among younger New Zealanders and traditional media most popular among older New Zealanders.

• The main study shows that the generation gap typically occurs between the ages 40 and 45, with differences in behaviour becoming more extreme at the oldest and youngest ends of the age spectrum.

• This report therefore summarises the behaviour of the audience that is most strongly aligned to online media, and the preceding charts demonstrate the popularity of these media types.

• Given the relative new-ness of these media it follows then that this audience are also more likely to be earlier adopters of new technology and behaviour. This is demonstrated in this report by the fact that 15-24 year olds are the most likely to have changed the way they use Ondemand from a catch up service to using it as a source of content.

• However it is not possible to use 15-24 year olds current behaviour to predict the future shape of total media consumption. This is because life stage also plays a role in driving audience behaviour. Music consumption is a good example of this effect. This report shows the popularity of streaming music among this age group. However previous generations also shows us that this level of interest tends to wane as people move in to later life stages. So it may be with other media choices as 15-24s move in to new stages in life.

Glasshouse Consulting May 2018 | SLIDE 11 DAILY MEDIA CONSUMPTION Among 15-24 year olds online media has overtaken traditional media in terms of audience size. Online video and music streaming both reach nearly eight in ten 15-24 year olds each day. SVOD shows the biggest growth since 2016 (56%) over-taking the audience of declining linear TV (46%). Radio audiences are stable among 15-24 year olds. DAILY REACH OF ALL MEDIA | % OF ALL NZERS 2018 15-24s 78% 2016 15-24s Online video (Eg. YouTube, Facebook) 84% 52% 2018 All 15+ 78% Music online/streamed (Eg. YouTube, Spotify) 72% 39% 56% Total (net) SVOD 41% 37% 46% Total (net) Linear TV 67% 66% 46% NZ SVOD (Eg. Netflix, Lightbox) 29% 30% 45% The biggest declines in audience Live New Zealand Radio 45% 55% size are: 32% TV (via Pay TV platform) 46% • Linear TV – down 31% 39% 30% › Mainly due to decline in Overseas SVOD (Eg. Netflix, Hulu) 30% 16% pay TV platform viewing 25% TV (via FTA platform) 31% (down 30%), but also FTA 37% 24% platform viewing (down NZ Ondemand 25% 19% 19%) 21% • Music on physical formats – Music (iPod, CDs, vinyl) 46% 20% down an enormous 54%. 20% Newspaper (including online) 29% 41% 10% The biggest increases are: Listened to a podcast Not measured in 2016 7% • Total SVOD – up 37% 9% Online NZ radio 7% › Due to a 59% increase in 9% NZ SVOD services 5% Magazine (including online) 14% • 19% Music streaming – up 8% 5% Online international radio 5% 4% Note: TV viewing includes live & time shifted viewing, in and out of home. We’d like to ask you about the different types of entertainment you used yesterday. For each of the following types of entertainment, I’d like you to tell me if you did Q that activity for 5 minutes of more during the time period I read out. It doesn’t matter if you were also doing something else at the time.

Base: All respondents: (2018 15-24s - n=221; 2016 15-24s - n=249; 2018 All 15+ – n=1,414) Glasshouse Consulting May 2018 | SLIDE 13 Online video and streamed music draw the biggest audiences among 15-24 year olds throughout the day. Radio is third most popular until 6pm when NZ based SVOD attracts a bigger audience, only slightly ahead of linear TV.

REACH OF MEDIA OVER THE DAY | % OF ALL NZERS

80%

70%

60%

50%

40%

30% Total Linear TV Live NZ Radio 20% Online video (YouTube, Facebook) Music streamed (YouTube, Spotify) 10% NZ Ondemand Overseas SVOD 0% NZ SVOD 6am - 9am 9am - 6pm 6pm - 8.30 pm 8.30pm - 10.30pm - 10.30pm midnight

We’d like to ask you about the different types of entertainment you used yesterday. For each of the following types of entertainment, I’d like you to tell me if you did Q that activity for 5 minutes of more during the time period I read out. It doesn’t matter if you were also doing something else at the time.

Base: All respondents (2018 15-24s – n=221) Glasshouse Consulting May 2018 | SLIDE 14 Among other media only music on physical formats and newspapers attract more than 10% of 15-24 year olds at any point in the day.

REACH OF MEDIA OVER THE DAY | % OF ALL NZERS

80%

70%

60%

50%

40%

30% Magazine (including online) Music (iPod, CDs) 20% Newspaper (including online) Online NZ Radio 10% Online International Radio 0% Podcast 6am - 9am 9am - 6pm 6pm - 8.30 pm 8.30pm - 10.30pm - 10.30pm midnight

We’d like to ask you about the different types of entertainment you used yesterday. For each of the following types of entertainment, I’d like you to tell me if you did Q that activity for 5 minutes of more during the time period I read out. It doesn’t matter if you were also doing something else at the time.

Base: All respondents (2018 15-24s – n=221) Glasshouse Consulting May 2018 | SLIDE 15 While online video and streamed music attract the biggest audiences of 15-24 year olds, SVOD encourages the longest time spent – more than three hours a day among users. Among those who use each media, 15-24 year olds dedicate the second most time to watching linear TV – over two and a half hours a day. TIME SPENT CONSUMING MEDIA | AVERAGE MINUTES PER DAY AMONG USERS OF EACH MEDIA

2018 15-24s 120 Online video (Eg. YouTube, Facebook) 122 2016 15-24s 100 2018 All 15+ 155 Music online/streamed (Eg. YouTube, Spotify) 117 143 204 Total (net) SVOD 192 184 159 Total (net) Linear TV 166 226 147 NZ SVOD (Eg. Netflix, Lightbox) 135 150 117 Live New Zealand Radio 84 185 139 TV (via pay TV platform) 145 223 155 Overseas SVOD (Eg. Netflix, Hulu) 134 141 118 TV (via free to air platform) 144 169 92 NZ Ondemand 104 115 Note: in this chart average 111 total minutes are based Music (iPod, CDs) 113 97 only on people who engage 90 Podcast Not measured in 2016 with each media (i.e. 87 excludes zero minutes). 69 Online NZ radio 65 110 40 Media ranked in order of Online international radio 44 107 daily reach.

Q Between (TIME PERIOD) about how long did you (activity) for?

Base: All who used each media yesterday Glasshouse Consulting May 2018 | SLIDE 16 DAILY MEDIA CONSUMPTION BY CHANNEL, SITE & STATION Following the decline in reach of linear TV overall, the daily reach of most TV channels shows a decline since 2016 among 15-24 year olds. TVNZ 2 remains the most popular but the significant decline in the reach of Three means TVNZ 1 is now the second most popular channel among 15-24 year olds. DAILY REACH OF TV CHANNELS | % OF ALL NZERS

2018 15-24s 24% SKY Movies 2% 2016 15-24s TVNZ 2 33% 8% 2018 All 15+ 20% Premiere/Greats/Extra… 2% 23% 2% TVNZ 1 20% E! 2% 43% 2% 18% 2% Three 30% Comedy Central 6% 25% 1% 8% 2% SKY Sport 1, 2, 3, 4, 5 or ESPN 9% Maori TV 1% 10% 3% 5% 1% Prime 8% Food TV 1% 12% 2% 4% 1% Bravo Not measured in 2016 Crime & Investigation 2% 3% 2% 4% 1% The Edge Not measured in 2016 The Living Channel 1% 2% 3% 3% 1% DUKE 2% Jones 4% 1% 3% 1% SKY Kids Channels 3% BBC Knowledge 2% 1% 2% 7% Discovery 6% Other TV Channel 7% 3% 9%

Q Thinking about yesterday overall, which of the following TV channels did you watch?

Base: All respondents: (2018 15-24s - n=221; 2016 15-24s - n=249; 2018 All 15+ – n=1,414) Glasshouse Consulting May 2018 | SLIDE 18 Unlike older New Zealanders word of mouth (social media, friends and family) is the most common source of awareness of new TV shows among 15-24 year olds. TV ads and channel surfing have both fallen as linear TV viewing falls among this group.

HOW PEOPLE BECOME AWARE OF NZ MADE TV SHOWS | % OF ALL NZERS 2018 15-24s 2016 15-24s 71% 2018 All 15+ Social media like Facebook 68% 41% 62% Friends and family 61% 47% 55% TV ads for programmes 64% 62% 35% Surfing through channels 48% 42% 30% TV sites such as TVNZ Ondemand and 3NOW 26% 25% 18% The onscreen programme guide / EPG 20% 28% 15% Newspapers & magazines like TV Guide 21% 29% 13% Websites other than social media and TV sites 21% 13% 4% Other source 3% 4% 6% Don't know 4% 6%

Q In which of the following ways do you usually become aware of New Zealand made TV shows?

Base: All Respondents: (2018 15-24s - n=221; 2016 15-24s - n=249; 2018 All 15+ – n=1,414) Glasshouse Consulting May 2018 | SLIDE 19 There has been little significant growth in reach of any Ondemand site since 2016, with TVNZ Ondemand continuing to be the most popular. However there has been a significant shift in how 15-24 year olds use Ondemand with equal numbers now using it as a source of content as for catching up.

DAILY REACH OF NZ ONDEMAND SITES | % OF ALL NZERS WHY USED ONDEMAND YESTERDAY | % OF ALL ONDEMAND USERS

2018 15-24s 2018 15-24s 2016 15-24s 2016 15-24s 2018 All 15+ 2018 All 15+ 19% TVNZ Ondemand 14% 13% 41% Watch a show that you usually watch 6% 14% SKY Ondemand/SKY Go 6% online and not on TV 4% 32% 3NOW/Three Ondemand 5% 40% 8% Catch up with all or part of a show you 68% 5% had missed on TV 4% 51% Māori TV Ondemand 2% 19% 0% Both 18% Prime Ondemand 1% 17% 1% Base: All NZ Ondemand users (2018 15-24s – n=65; 2016 15-24s - n=187; 2018 – n=269)

76% Did not watch Ondemand 75% 81%

txt/txt Indicates significant change at 95% c.i. Thinking about yesterday overall, which of the following websites did you watch? Q Thinking about when you used TVNZ, 3NOW, Prime or SKY Ondemand yesterday, did you use it to…?

Base: All respondents: (2018 15-24s - n=221; 2016 15-24s - n=249; 2018 All 15+ – n=1,414) Glasshouse Consulting May 2018 | SLIDE 20 The growth of the SVOD audience overall has been driven by the growth of NZ based SVOD services and of NZ Netflix in particular which now reaches nearly one in two 15-24 year olds each day. Lightbox also shows growth since 2016 among 15-24 year olds.

DAILY REACH OF SVOD SERVICES | % OF ALL NZERS 2018 15-24s 2016 15-24s 47% 2018 All 15+ Netflix in NZ 30% 30%

10% Netflix from overseas 8% 5%

8% Lightbox 3% 5%

4% Neon 2% 2%

2% NZ On Screen 1% 4%

8% Another site 14% 4%

Thinking about yesterday overall, which of the following websites/services did you use to watch TV shows? Q New question in 2016.

Base: All respondents: (2018 15-24s - n=221; 2016 15-24s - n=249; 2018 All 15+ – n=1,414) Glasshouse Consulting May 2018 | SLIDE 21 Youtube and Facebook remain easily the most popular source of online video among 15-24 year olds. NZ Herald shows the biggest growth in online video audience since 2016 among 15-24 year olds. DAILY REACH OF ONLINE VIDEO SITES| % OF ALL NZERS

2018 15-24s 2016 15-24s 2018 All 15+ 68% YouTube or Vimeo 72% 42% 54% Facebook 57% 32% 11% NZ Herald 5% 11% 10% Stuff 11% 12% 9% Buzzfeed 9% 2% 2% Radio NZ 2% 2% 2% Vice Not measured in 2016 2% Watchme Not measured in 2016 1% Newsroom Not measured in 2016 1% 1% Spinoff Not measured in 2016 1% 7% Another site 5% 4%

Q Thinking about yesterday overall, which of the following websites did you use to watch video?

Base: All respondents: (2018 15-24s - n=221; 2016 15-24s - n=249; 2018 All 15+ – n=1,414) Glasshouse Consulting May 2018 | SLIDE 22 Given the popularity of Youtube and Facebook among 15-24 year olds it is perhaps not surprising that user generated clips are the most popular type of content over news content.

TYPES OF ONLINE VIDEO WATCHED| % OF NZERS WHO WATCH ONLINE VIDEO

2018 15-24s 80% 2018 All 15+ Short clips made by other users of that site 68%

36% News content 45%

22% Webseries 15%

15% Live stream 15%

7% Interactive documentary 8%

4% Virtual reality or augmented reality content 5%

15% Other type 18%

New question in 2018. Q Which of the following types of video did you watch on these sites?

Base: All Who watch online video (2018 15-24s – n=207; 2018 – n=736) Glasshouse Consulting May 2018 | SLIDE 23 The Edge, ZM and Mai FM continue to attract the biggest radio audiences of 15-24 year olds each day.

DAILY REACH OF ALL RADIO STATIONS | % OF ALL NZERS

2018 15-24s 14% 2% The Edge 14% 2016 15-24s 7% Sound 2% 2018 All 15+ 4% 11% ZM 15% 2% 6% RNZ National 3% 9% 10% Mai FM 9% 2% 4% Hauraki 4% 4% 3% The Rock 6% 5% 1% George FM 3% 4% 1% Flava 5% 2% 1% Magic Not measured in 2016 4% 1% The Breeze 1% 5% 1% 4% Life 1% More FM 4% 5% 1% 4% BFM 1% Classic Hits/The Hits 5% 4% 2% 3% iHeartRadio Rova Not measured in 2016 3% 3% 6% Newstalk ZB 2% Other 5% 8% 10%

Q Thinking about yesterday overall what New Zealand radio stations did you listen to either on radio or online?

Base: All respondents: (2018 15-24s - n=221; 2016 15-24s - n=249; 2018 All 15+ – n=1,414) Glasshouse Consulting May 2018 | SLIDE 24 Spotify’s reach among 15-24 year olds has grown significantly since 2016, over-taking Youtube for listening to music and reaching more than one in two of this audience each day. The audience listening to Youtube has fallen since 2016 but still reaches more than one in three 15-24s each day. DAILY REACH OF MUSIC SITES| % OF ALL NZERS 2018 15-24s 2016 15-24s 2018 All 15+ 54% Spotify 33% 23%

36% YouTube or Vimeo 48% 19%

10% Apple Music 11% 4%

7% Soundcloud 9% 2%

3% Another site 8% 3%

txt/txt Indicates significant change at 95% c.i.

Thinking about yesterday overall, which of the following websites did you use to watch video? Q New question in 2016.

Base: All respondents: (2018 15-24s - n=221; 2016 15-24s - n=249; 2018 All 15+ – n=1,414) Glasshouse Consulting May 2018 | SLIDE 25 MUSIC CONSUMPTION AND BEHAVIOUR The popularity of streamed music among 15-24 year olds means it is now the main source of new music among this audience. Friends and family are next most common. Radio however remains a source of new music for more than six in ten 15-24 year olds. SOURCES OF AWARENESS OF NEW MUSIC | % OF ALL NZERS

85% Streaming services (Eg. YouTube, Spotify, SoundCloud, iTunes) 85% 50% 2018 15-24s 72% 2016 15-24s Friends or family 79% 2018 All 15+ 60% 62% NZ radio stations broadcast on radio or online 62% 60% 21% In shops 32% 16% 20% Music TV stations 27% 21% 19% Live performances 22% 19% 13% Websites such as podcasts, music review sites, blogs, gig guides 13% 11% 7% Newspapers & magazines 11% 19% 6% Overseas radio stations online 9% 5% 10% Some other way 13% 6% 2% None, don't often hear new music 1% 10%

Q In which of the following ways, if any, do you usually find out about new music?

Base: All respondents: (2018 15-24s - n=221; 2016 15-24s - n=249; 2018 All 15+ – n=1,414) Glasshouse Consulting May 2018 | SLIDE 27 Nearly every 15-24 year old has listened to music online. Youtube continues to draw a bigger audience over the course of a week, but Spotify’s audience has grown significantly since 2016 and it now draws a bigger daily audience. This suggests Spotify has an audience that is smaller but which listens more frequently. EVER USE TO LISTEN TO MUSIC | % OF ALL NZERS WEEKLY REACH | % OF ALL NZERS

2018 15-24s 2016 15-24s 34% every 2018 All 15+ 91% 74% day YouTube/Vimeo 93% YouTube/Vimeo 84% 46% 70% 46% every 83% 65% day Spotify 75% Spotify 45% 52% 32% 42% 16% SoundCloud 43% Apple Music 15% 18% 8% 37% 11% Apple Music 32% SoundCloud 16% 22% 4% 33% 8% iHeartRadio 22% iHeartRadio 6% 25% 9% 6% 3% Rova Not measured in 2016 Rova Not measured in 2016 6% 3% 3% Tidal Not measured in 2016 1% 8% Other 11% 6% 1% None of these 2% 17%

Q Which of the following have you ever listened to music on?; Q13d: About how often do you listen to…?

Base: All respondents: (2018 15-24s - n=221; 2016 15-24s - n=249; 2018 All 15+ – n=1,414) Glasshouse Consulting May 2018 | SLIDE 28 DEVICES PERSONALLY OWN OR HAVE DAILY ACCESS TO Smartphones, PC/laptops and TVs remain the most common technologies among 15-24 year olds. The rapid growth of Netflix however makes it the fourth most common technology or media platform among 15-24 year olds – higher than UFB penetration. SKY TV penetration has fallen to one in three 15-24 year olds. DEVICES AND SERVICES PERSONALLY OWN OR HAVE ACCESS TO| % OF ALL NZERS 2018 15-24s 2016 15-24s 96% 37% 2018 All 15+ Smartphone 91% Chromecast 21% 82% 28% 92% 36% PC or laptop for personal use 88% SKY TV 46% 83% 39% 85% Games console through which you watch 35% Working TV 85% 30% 88% Ondemand 17% 75% 26% Working radio 72% Lightbox 7% 78% 19% 73% 17% Netflix 42% FreeviewPlus/MyFreeviewPlus 16% 49% 20% 52% 15% UFB 42% Apple TV 12% 43% 10% 48% 10% Tablet such as an iPad 46% Neon 5% 57% 7% 41% 2% Smart TV connected to Internet 28% Vodafone TV Not measured in 2016 39% 4% 38% PVR (MySKY, MyFreeview) 33% 36%

Q Which of the following, if any, do you personally own or have daily access to?

Base: All respondents: (2018 15-24s - n=221; 2016 15-24s - n=249; 2018 All 15+ – n=1,414) Glasshouse Consulting May 2018 | SLIDE 30