Streaming Provider Services During COVID-19 Pulse Survey

Streaming Provider Experiences During COVID-19 Pulse Survey

TMT Global Business Intelligence May 4, 2020 Pulse Survey Age Household Size

Methodology 18-29 20% 2.20

30-44 26% Fielded April 24-26, 2020 1,232 surveys completed 45-60 29% 0.60

> 60 25% Adults Children

Under $25,000 14% $25,000-$39,999 16% $40,000-$59,999 19% $60,000-$89,999 19% $90,000-$124,999 19% $125,000 - $149,999 6% $150,000-$199,999 6% Income $200,000 or more 4% Prefer not to answer 3%

Some percentages add up to 101% due to rounding © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 2 Which streaming services do you subscribe to or have Netflix has the highest access to? penetration of any Netflix 85% streaming service Amazon Prime Video 66% Hulu 48%

Disney + 37%

YouTube TV 17%

HBO Now 13%

Apple TV + 10% Amazon Prime Video and Hulu are also CBS All Access widely used streaming services 10% Showtime 9%

STARZ 8%

ESPN+ 7%

Vudu 7% Upstart Disney+ has had a strong launch, Other 5% acquiring the 4th highest market share in Sling TV 4% its five months of operation (launched in AT&T TV Now (formerly DIRECTV NOW) 3%

U.S. on Nov. 12, 2019). BritBox 1%

PBS Passport 1%

Philo 1%

Quibi 1%

Fubo TV 1%

Only 1.4% rate Streaming Providers as Poor or Unacceptable Poor 1.1%

Most respondents (55%) rate Streaming Providers as Good or Great. Average 9%

Good 26%

Great 29%

Excellent 27%

Perfect 8%

Show/content quality also rates high 5 from streaming customers 5.07 4.95 4.93 4.76 4.69 4.66

Respondents were asked to rate up to 4 three of their streaming providers on five attributes and on their overall satisfaction with them as a provider of services. 3 Subscription cost and Ease of finding what you wanted to watch are the lowest rated attributes. 2

Rating Scale 1. Unacceptable 2. Poor 1 3. Average Overall Audio and Ease of Show/content Subscription User interface 4. Good 5. Great Satisfaction video quality finding what quality cost 6. Excellent you wanted to 7. Perfect watch

38% of households use 1 or 2 10% 8% streaming providers 6%

1 2 3 4 5 6 7 or more 24% of households subscribe to 5 or more streaming providers How much per month are you paying for all your streaming services combined?

1 $9

Consumers estimate they pay about $5.50 2 $15 per streaming service per month, across 3 $17 all mixes of streaming subscriptions (including those that currently get the 4 $23 subscription at no cost) 5 $20

# Streaming Services 6 $31

7 or more $37

Had content I wanted to see 25% Free family access oddly rates low on cost attribute

It works with equipment I already had 19% Many customers joined recently (20%) because they now have more free time due to COVID-19 More free time to watch shows due to COVID-19 19%

Got access from friend/family member for free 16%

Free with other promotion (e.g., with Internet 13% sign-up, Amazon Prime)

Great promotion/deal 9%

29% 29%

Two-thirds (67%) say they are spending more time streaming 1.6% 2.4%

Substantially less Somewhat less About the same Somewhat more Substantially more The average viewer spent 18 hours time time time time streaming in the past 7 days, or about 2.5 hours per day. 10% of viewers streamed more than 5 In the past 7 days, how much time have you spent streaming? hours per day. Under 5 hours 12%

5 to 10 hours 27%

11 to 20 hours 23%

21 to 35 hours 25%

More than 35 hours 10%

Netflix 10.2

YouTube TV and Hulu viewers also streamed more than one hour per day YouTube TV 8.5

Disney+ viewership commanded less than one-half the hours compared to Netflix Hulu 7.9

Amazon Prime Video 5.9

All Others 5.1

Disney + 4.8

Among streaming providers with 100 or more completed surveys © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 9 Lower income In the past 7 days, how much time have you spent watching? (by Age / Income) households stream longer hours 18 to 34 6.8 35 to 44 7.3 Age 45 to 60 6.9 Older views (60+) spend more time streaming 60 + 8.5

Under $25,000 9.4

$25,000 to $39,999 8.3

$40,000 to $59,999 7.1

$60,000 to $80,999 6.5

Income $90,000 to $124,999 6.2

$125,000 to $149,000 7.0

$150,000 to $199,999 6.1

$200,000 + 6.1

© 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 10 What content have you watched most recently? Ozark and Tiger King Please write in your top 3 shows in the last month are the most-watched Ozark 8.9% shows this month Tiger King 7.1%

The Office 2.8%

Little Fires Everywhere 2.7%

Streaming of syndicated shows such Blue Bloods 2.4% as The Office, Blue Bloods, NCIS and Greys Anatomy has also been popular NCIS 2.4%

Greys Anatomy 1.9%

Outlander 1.9%

Ozark (6%), Tiger King (3.1%), and Little Homeland 1.8% Fires Everywhere (1.5%) were the most recommended shows; however, the top 15 All American 1.8% most-recommended shows represent less Outer Banks 1.7% than than one-quarter (23%) of all shows recommended – there is a lot of content Brooklyn 99 1.6% out there right now that people love. Better Call Saul 1.5%

Criminal Minds 1.5%

Jack Ryan 1.5%

© 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 11 Smart TV Apps are the How do you normally connect to your streaming services? most common way to (mark all that apply) stream App on my Smart TV 36%

Streaming online using Online using laptop/computer 29% laptop/computer also is common

One-quarter of respondents (25%) App on my smartphone or tablet 25% connect to streaming using an App on their smartphone or tablet Roku 25%

Amazon Fire TV Stick/Cube 20%

App on my cable TV menu 13%

Apple TV 7%

Chromecast/Ultra 6%

Nvidia Shield TV 0.5%

Streaming to laptops or computers 30% makes up 14% of screen viewing 27%

Streaming to smartphones or tablets makes up 13% of screen viewing

9% 9% 8% 6% 6% 4%

TV 36" to TV 50"to Smartphone Laptop TV larger TV under Computer Tablet 48" 60" (without than 60" 36" or laptop monitor) (with monitor)

6 However, experiencing even one problem degrades the experience substantially 5 5.18 4.81 4.68 4.63 4

78% 12% 5% 4% Rating Scale 1 1. Unacceptable None 1 or 2 3 or 4 5 or more 2. Poor 3. Average 4. Good 5. Great How many problems have you had streaming content in 6. Excellent the last 7 days? 7. Perfect

Based on the total number of problems experience in the past 7 days and the Hulu 0.11 total number of hours watched in the past 7 days

Amazon Prime Video 0.11 Streaming providers outside of the big 5 have more of a challenge delivering trouble-free streaming Disney + 0.12

YouTube TV 0.13

All Others 0.17

Among streaming providers with 100 or more completed surveys © 2020 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 15 Compared to before COVID-19 started, do you expect Despite financial woes, your financial situation in two months to be… few consumers will drop Streaming Providers 43%

33% 4 out of 10 consumers expect their financial situation to be worse in two months 14% 2% 7% However, very few customers (5%) expect Much worse Somewhat worse No change Somewhat better Much better to drop any of their streaming services in the next 30 days. In fact, while most customers do not expect to change Do you expect you will change the streaming services anything (84%), more customers plan to you subscribe to in the next 30 days? add a new service (11%) than drop a service. Add a new service 11%

No changes 84%

Drop a service 5%

Netflix 54% More customers would choose Netflix than all the other brands combined Amazon Prime Video 17%

Hulu 13%

Disney + 4%

YouTube TV 4%

All Other Brands 5%

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