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Ad Receptivity and the Ad-Supported OTT Video Viewer

October 2018

Produced by IAB Video Center of Excellence Made Possible with the Financial Support of: Objectives and Methodology

Objective:

The study aimed to both size the audience and provide demographics of U.S. video streamers watching Ad- Supported Over-the-Top (ASV OTT) video. Once ASV OTT viewers were identified, a deep dive survey further explored the video viewer segments to gain insights into their behaviors, attitudes and usage in order to help better target the ASV OTT cohort.

Methodology: Two online surveys were fielded among MARU/Matchbox’s Springboard America online panel (~250,000 U.S. members): 1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer; fielded 8/10/18. 2. Study among 1,223 consumers ages 18+ in the U.S., with age/gender quotas set to reflect viewership profiles from the omnibus study; fielded 9/25/18-9/26/18.

2 Definitions

. Ad-Supported OTT Video Viewers (ASV OTT Viewers) are defined as those who watch video… Through a streaming service I watch for and there are ads (e.g., YouTube, Pluto, Channel, , , , etc.) Through an online-based cable TV provider (e.g., Sling TV, DirecTV ) Through a streaming app that requires a cable/satellite/telco login (e.g., Discovery GO, FX app, WatchESPN, , , etc.) Through a streaming service I subscribe to for a monthly fee, and there are ads (e.g., Hulu with limited ads, CBS All Access with limited ads, etc.)

. Free Ad-Supported OTT Video Viewers (Free ASV OTT Viewers), a subset of ASV OTT, are defined as those who watch video… Through a streaming service I watch for free and there are ads (e.g., YouTube, Pluto, Roku Channel, Crackle, Vevo, Xumo, etc.)

. Subscription Video (SVOD) Viewers defined as those who watch video… Through a streaming service I subscribe to for a monthly fee, and there are no ads (e.g., , Amazon Prime, HBO Go/Now, Showtime App, etc.)

. TV Viewers are defined as those who watch… ‘Regular’ (not cable) TV to access free local channels (e.g., ABC, CBS, NBC, FOX, etc.) using an antenna or ‘over the air’ Through my cable/satellite/telco provider (e.g., live TV, DVR, VOD)

TV Only Viewers = those who only watch TV/Cable Heavy = those who watch TV/cable daily+ Light = those who watch TV/cable weekly or less

3 Key Takeaways

73% of adults 18+ who typically watch streaming OTT video say they watch ad-supported OTT video

45% of adults 18+ who typically watch streaming OTT video say they watch ad-supported OTT video most out of streaming videos

Ad-Supported OTT Video Viewers (ASV OTT) are an INCREMENTAL audience: • ASV OTT viewers do NOT typically watch linear TV (ASV OTT viewers spend less time watching cable than SVOD OTT viewers)—they are an incremental reach. • Over half are cord cutters/shavers with over one-third citing ‘better content on streaming services’ as a reason.

ASV OTT Viewers are a HIGH-VALUE audience: • Profile: Younger; with kids in household; skews male. • Similar to SVOD OTT viewers except that they skew more male. • Very different from TV only viewers: Younger; more male; diverse; with kids; higher income.

ASV OTT Viewers are an ENGAGED audience: • Roughly 1 in 3 ASV OTT Viewers say that ads on free ASV OTT services are better than TV commercials. • About 1 in 3 say ASV OTT ads are more engaging, relevant and unique than TV commercials.

4 Key Takeaways

ASV OTT Viewers watch a variety of platforms

Over 2-in-5 ASV OTT Viewers are watching more ASV OTT video than they did a year ago.

ASV OTT Viewers are receptive to ads: They are much more likely than SVOD OTT viewers to enjoy ads, find them useful, have higher engagement with them and to enjoy interacting with ads.

More ASV OTT Viewers try , are influencers and buy direct brands.

Compared to SVOD OTT Viewers and TV Only Viewers, ASV OTT Viewers are more likely to follow Social Influencer stars and they spend more on subscription purchases (e.g., meal kits or contact lenses).

5 Why Does This Matter?

ASV OTT viewers are a valuable audience who are similar in demographic to SVOD OTT viewers but reachable primarily through ASV. They are a more desirable audience than TV Only viewers.

ASV OTT viewers can be more elusive to target than TV Only or SVOD OTT Viewers but can be found on ad-supported video OTT channels, where they are watching more ASV OTT than a year ago.

Despite being the typical ad blocking demo (young, male), ASV OTT viewers are more receptive to than either SVOD OTT or TV Only viewers. What’s more, many report that they enjoy interacting with ads. In fact, ASV OTT viewers think of ads on this platform as being better.

ASV OTT viewers report that they are open to new brands, new ways of advertising and marketing and have a penchant for direct brands. This target is prime for direct brand messaging.

6 Meet the ASV OTT Viewer

7 73% of adults 18+ who typically watch streaming video say they watch ad-supported OTT video

QS1_Services. How do you typically watch TV or streaming video on your TV? 'Video' may include TV shows, movies, news clips, music videos, online original video series, etc. Omnibus., n=900 8 45% of adults 18+ who typically watch streaming video say they watch ad-supported OTT video most out of streaming videos

QS2_ServicesMost. And which of the following do you watch most often? Omnibus, n=900 9 Demographics Those who watch Ad-supported Video (ASV) OTT most skew: male; younger; diverse; and with kids

U.S. 18+ GEN. POP. WATCH ASV OTT MOST

GENDER FEMALE 49% MALE FEMALE 60% MALE

44%

36% 37%

33% AGE 18% 30%

18-34 35-54 55+ 18-34 35-54 55+

10 Gender, Age, HH Income, Marital Status, Kids in HH Omnibus, n=1,512; floating by Platform Users. Watch ASV OTT Most n=388, Demographics Those who watch Ad-supported Video (ASV) OTT most skew: male; younger; diverse; and with kids

U.S. 18+ GEN POP WATCH ASV OTT MOST

H o u s e h o l d I n c o m e 28% 34% $75k+

MARITAL STATUS PARENTS Married Have children Married Have children in household in household 50% 41% 49% 51%

Caucasian Caucasian 64% 58% ETHNICITY African-American African-American 12% 15% Hispanic Hispanic 16% 14% Asian/Other Asian/Other 8% 12%

11 Gender, Age, HH Income, Marital Status., Kids in HH Omnibus, n=1,512; Watch ASV OTT Most, n=388 Those who mostly watch ASV OTT Video most are similar to SVOD viewers except that they skew much more Male and are slightly more diverse • ASV OTT viewers are very different from TV only viewers: Younger, more male, diverse, with kids at home and higher income.

U.S. Gen Pop Watch ASV Watch SVOD TV Only OTT Most OTT Most Viewers Male 49% 60% 46% 44% Female 51% 40% 54% 56% 18-34 30% 44% 42% 10% 35-54 33% 37% 36% 28% 55+ 36% 18% 21% 61% White/Caucasian 64% 58% 60% 72% Black/African American 12% 15% 11% 11% Hispanic 16% 14% 23% 11% Asian/Other 8% 12% 6% 7% $75K+ Income 28% 34% 34% 21% Married 50% 49% 51% 51% Kids in Household 41% 51% 51% 26%

12 Gender, Age, HH Income, Marital Status, Kids in HH Omnibus, n=1,512; floating by Platform Users. Watch ASV OTT Most n=388, Watch SVOD OTT Most n =512, TV Only Viewers n=566. OTT Video Services Typically Watched

% Who Typically View OTT Video via Each Service Among U.S. Adult 18+ OTT Streamers and Among U.S. Adult 18+ OTT Streamers Who Watch ASV OTT Most

US 18+ Gen Pop ASV OTT Most Viewer 62%

54% 48% 44% 43% 41% 42% 37% 34% 29% 25%

17% 15% 16%

Ad-free Subscription Ad-supported Streaming app that Ad-supported Free Online-based cable TV Regular (not cable) TV Cable/Sat/Telco TV Service Subscription Service requires a Service provider (e.g., live TV, DVR, cable/sat/telco login VOD) (e.g., YouTube, Pluto, Roku (e.g., Sling TV, DirecTV Now) (e.g., ABC, CBS, NBC, FOX, etc.) (e.g., Netflix, Amazon Prime, HBO (e.g., Discovery GO, FX app, (e.g., Hulu with limited ads, CBS Channel, Crackle, Vevo, Xumo, etc.) using an antenna or ‘over the air’ Go/Now, Showtime App, etc.) All Access with limited ads, etc.) WatchESPN, Xfinity, Spectrum, etc.)

13 QS1_Services. How do you typically watch TV or streaming video on your TV? 'Video' may include TV shows, movies, news clips, music videos, online original video series, etc. Omnibus, n=1,512; Watch ASV OTT Most, n=388 TV and The ASV OTT Viewer

14 More than half of ASV OTT Viewers are cutting back on cable/ satellite/telco services due to cost

More ASV OTT Viewers than SVOD OTT Viewers have recently cut/shaved cable/satellite/telco service Cost remains the top reason for cord cutting

% Who Are Cord Cutters/Shavers "Cost” is the top reason for all groups

52% 47%

SHAVED 29% 19% 26%

23% 28% 15% CUT 11% ASV OTT Viewers SVOD OTT Viewers TV Only Viewers

QS7. Have you ever subscribed to a paid TV service (, Digital cable, Telco or Satellite)? QS8. Have you recently cut back on your paid TV service (Basic cable, Digital cable, Telco or Satellite)? Base: Floating by Platform Users; ASV OTT n=589, SVOD n=332, TV Only n=302. 15 Q_WhyCordCutShave. Which of the following reasons, if any, explain why you cut back or stopped your cable TV subscription? Base: Total n=540, ASV OTT Viewer n=306, SVOD Viewer n=155, TV Only Viewer n=79 The convenience of choosing from vast content supply, including TV Shows, impacts perception of “better” OTT content, leading to cord cutting/shaving

Most ASV and SVOD OTT viewers typically watch TV Shows and think the formats offer good content variety

ASV OTT SVOD Viewers OTT Viewers 72% 77% Typically watch TV Shows 79% 87% Rate the format good/excellent for variety of content Price, convenience and content impact cord cutting Reasons for cutting/cutting back on cable:

ASV OTT SVOD Viewers OTT Viewers 77% 74% ‘To save money’ 42% 29% ‘Convenience/flexibility of streaming services’ 38% 32% ‘Better content on streaming services’

QS7. Have you ever subscribed to a paid TV service (Basic cable, Digital cable, Telco or Satellite)? QS8. Have you recently cut back on your paid TV service (Basic cable, Digital cable, Telco or Satellite)? Base: Floating by Platform Users; ASV OTT n=589, SVOD n=332, TV Only n=302. Q_WhyCordCutShave. Which of the following reasons, if any, explain why you cut back or stopped your cable TV subscription? Base: Total n=540, ASV OTT Viewer n=306, SVOD Viewer n=155, TV Only Viewer n=79 16 Q11. [: Top Box] Now let’s talk about what types of video you watch. Do you typically watch: TV Shows: Current or past TV shows from Reality TV to Comedy to Drama, etc. (i.e. Big Bang Theory, Friends, , Real Housewives, Deadliest Catch, etc.) Base: ASV OTT Viewers n=589, SVOD OTT Viewer n= 332 ASV OTT Viewers are not as easily reached via TV

ASV OTT Viewers are an incremental reach: They spend less time watching cable than SVOD Viewers Hours Spent Watching Cable/Sat/Telco TV Per Week

10.4hrs 11.6hrs 14.7hrs

ASV OTT Viewers SVOD OTT Viewers TV Only Viewers

Even lower among Free ASV OTT Viewers: 10.1hrs

QS6. [TV through cable/satellite/telco provider (e.g., live TV, DVR, VOD)] How many hours a week do you watch on each of the following platforms? Base: ASV OTT Viewers n=340, SVOD Viewers n=193, TV Only Viewers n=262 17 Statistically significant differences between ASV OTT and TV Only. Statistically significant differences between SVOD OTT Viewers and TV Only And more than 2-in-5 ASV OTT Viewers are watching more on OTT platforms vs. a year ago

% Watching Each Service More Than They Did a Year Ago (Among ASV OTT Viewers)

53% 47% 46% 44% 42% 35% 32%

Ad-free Subscription Streaming app that Ad-supported Ad-supported Free Online-based cable TV Regular (not cable) TV Cable/Satellite/Telco TV Service requires a Subscription Service Service provider cable/satellite/telco login (e.g., Netflix, Amazon (e.g., Discovery GO, FX (e.g., Hulu with (e.g., YouTube, Pluto, (e.g., Sling TV, (e.g., ABC, CBS, NBC, (e.g., live TV, DVR, VOD) Prime, HBO Go/Now, app, WatchESPN, Xfinity, limited ads, CBS Roku Channel, Crackle, DirecTV Now) FOX, etc.) using an Showtime App, etc.) Spectrum, etc.) All Access with Vevo, Xumo, etc.) antenna or ‘over the air’ limited ads, etc.)

Q8. [More than a year ago] Would you say you currently watch each platform more, same or less than a year ago? 18 Base: ASV OTT Platform Users. Ad Receptivity and The ASV OTT Viewer

19 ASV OTT Viewers are more receptive to advertising

Nearly 2/3 of ASV OTT viewers don’t mind seeing ads of ASV OTT Viewers Ad Receptivity say that ads can be ASV OTT Viewers SVOD Viewers TV Only Viewers useful or enjoyable Agree | Strongly Agree 50% 34% 63% I don't mind seeing ads if I'm paying nothing 25% 53% “Some ads can be useful or enjoyable” 19% 43%

50% 28% 59% 37% I don't mind seeing ads if I'm getting to 17% 47% 24% watch content when I want 13% 34%

ASV OTT Viewers SVOD OTT Viewers TV Only Viewers 23% 56% I don't mind seeing ads if I'm paying a 18% reduced fee 43% 14% 36%

QS7. How do you feel about advertising in general?​ 20 Base: ASV OTT Viewer n=589, SVOD Viewer n=332, TV Only Viewer n=302 Q22. [NET: Top Box] How much do you agree or disagree with the following?​ Statistically significant differences between ASV and SVOD or TV Only Most ASV OTT Viewers think ads on free ASV OTT are as good or better than TV ads

Nearly 9 in 10 ASV OTT Viewers say ads on Free Ad-Supported Video are the same as or better, more relevant, more engaging and more unique than those on TV.

% Who Say That Compared to Ads on TV, Ads on Free ASV OTT are… (Among ASV OTT Viewers) Same as TV Commercials Better than TV Commericals 90% 89% 87% 87%

36% 39% 33% 34%

54% 50% 54% 53%

Just as/More Relevant Than Same/Better Than TV More Engaging Than TV More Unique Than TV TV

21 Q12a. [Overall] Compared to ads on TV, ads on Ad-supported Free Services (e.g., YouTube, Crackle, Vevo, etc.) are… Base: ASV OTT Viewers, n=342 Ad engagement is stronger among ASV OTT Viewers vs. SVOD OTT Viewers

• Nearly Half of ASV OTT viewers recall skipped ads Ad Engagement ASV OTT Viewers SVOD OTT Viewers

Agree | Strongly Agree

31% 60% When I see fewer ads, I pay more attention to them 21% 49%

22% 48% Even when I skip an ad, I remember what the ad was for 14% 32%

27% 57% I like when brands support the content I watch 19% 39%

22 Q22. [NET: Top Box] How much do you agree or disagree with the following? Base: ASV OTT Viewers n=589, SVOD Viewer n= 332 Statistically significant differences between ASV and SVOD or TV Only ASV OTT Viewers enjoy interactive ads more than SVOD Viewers

• Roughly half of ASV OTT viewers enjoy interacting with video ads, giving ad feedback or interacting with opt-in rewarded video ads Ad Interaction ASV OTT Viewers SVOD OTT Viewers

Agree | Strongly Agree

I like ads that give me the choice to interact with a sponsor (ex. taking a 29% 56% quiz, watching a longer video ad upfront) andquiz, then watchingwatch commercial a longer ...- 16% 39% free for a period of time

25% 51% I like when I'm asked for feedback on the ads Ive been shown 16% 35%

I like being able to interact with video ads (ex. taking a quiz, clicking to 23% 47% learn more about a brand) 14% 33%

23 Q22. [NET: Top Box] How much do you agree or disagree with the following?​ Base: ASV OTT Viewers n=589, SVOD Viewer n= 332 Statistically significant differences between ASV and SVOD Direct Brands and ASV OTT Viewers

24 A quarter of ASV OTT Viewers say they buy more products directly from the brand online vs. in stores ASV OTT Viewers are…

TV are very likely to try new brands/products Total SVOD ONLY Open to New Brands 52% TV Only Total VIEWER VIEWER 44% 47% 25%

learn about new products/brands/services from TV Influenced by Video 36% SVOD ONLY video ads Total VIEWER VIEWER 30% 30% 17%

say others come to them to find out about new TV 26% SVOD ONLY products/brands/services Total VIEWER VIEWER Influencers 20% 20% 7% TV often post about products, brands, or services SVOD ONLY 21% Total VIEWER VIEWER 16% 16% 6%

TV SVOD ONLY buy more products directly from the brand online Total VIEWER VIEWER Direct Brand Shoppers 25% vs. in stores (for ex. mattresses, eyeglasses) 18% 18% 4%

Q24. How likely are you to try new brands/products? [TOP BOX] Q25. Which of the following describe you? 25 Base: Total n=1223, ASV OTT Viewer n=589, SVOD Viewer n=332, TV Only Viewer n=302 Statistically significant differences between ASV OTT and SVOD OTT Viewers or TV Only or Total ASV Viewers follow internet influencers – more so than SVOD OTT viewers

More ASV OTT Viewers – particularly Free AVS OTT Viewers – engage with internet personalities TV SVOD ONLY regularly watch videos from some YouTube stars Total VIEWER VIEWER 25% 18% 17% 5%

TV SVOD ONLY follow some internet stars on social media Total VIEWER VIEWER 22% 15% 13% 3%

TV listen to video personalities who discuss products / brands / SVOD ONLY 20% Total VIEWER VIEWER services 15% 15% 4%

Q25. Which of the following describe you? 26 Base: Total n=1223, ASV OTT Viewer n=589, SVOD Viewer n=332, TV Only Viewer n=302 Statistically significant differences between ASV OTT and SVOD OTT Viewers or TV Only or Total ASV OTT Viewers spend more on direct to consumer subscription services

Mean Spend on Subscription Purchases (e.g., Pet food, Contact Lenses, Meal Kits, etc.)

$119.19

$94.46 $89.23

$51.99

Total ASV OTT Viewer SVOD Viewer TV Only Viewer

27 Q27b. [Subscription Purchases (Pet food, Contact Lenses, Meal Kits, etc.)] How much would you estimate that your household spends on the following per month? Base: Total n=1223, ASV OTT Viewer n=589, SVOD Viewer n=332, TV Only Viewer n=302 Statistically significant differences between ASV OTT and SVOD or TV Only or Total Deep Dive: Free ASV OTT Viewers

28 Deep Dive: Free ASV OTT Viewers are open to advertising

44% of free ASV OTT Viewers say that ads can be useful or enjoyable

of free ASV OTT Viewers don’t mind seeing ads if they’re paying 36% nothing

of free ASV OTT Viewers don’t mind seeing ads if they get to watch 29% content when they want

QS7. How do you feel about advertising in general? 29 Q22. [NET: Top Box] How much do you agree or disagree with the following? Base: Free ASV OTT Viewer n=277 Deep Dive: Free ASV OTT Viewers follow influencers

They are more likely to follow online personalities and be influenced by them in their purchases

Free ASV Total OTT Viewers

27% regularly watch videos from some YouTube stars 18%

23% follow some internet stars on social media 15%

listen to video personalities who discuss products / brands / 23% services 15%

*= significantly higher than Total 30 Q25. Which of the following describe you? Base: Total n=1223, Free ASV OTT Viewer n=277 Deep Dive: Nearly half of Free ASV OTT viewers are very likely to try new brands

Free ASV OTT Viewers Total

47% are very likely to try new brands / products 44%

40% learn about new products/brands/services from video ads 30%

26% say others come to them to find out about new 20% products/brands/services

19% often post about products, brands, or services 16%

24% buy more products directly from the brand online vs. in stores 18% (for ex. mattresses, eyeglasses)

Q24. How likely are you to try new brands/products? [TOP BOX] Q25. Which of the following describe you? 31 Base: Total n=1223, Free ASV OTT Viewer n=277 Thank You

IAB Maru Kristina Sruoginis Rhiannon Shane [email protected] [email protected]

32 Appendix: Additional Slides

33 Types of Video Viewed: Movies, Original Series, TV Shows watched by most

• SVOD OTT Viewers more likely to watch Movies, Original Series and TV shows • ASV OTT viewers more likely to watch Sports, UGC, Music Videos and ODV ASV OTT Viewers SVOD OTT Viewers 73% Movies 79% Original series from streaming services - Professional episodic shows usually made for Netflix, Amazon Prime or Hulu (i.e. Stranger Things, The 72% Man in the High Castle, Handmaid’s Tale, Orange is the New Black, etc.) Original series 79%

Current or past TV shows from Reality TV to Comedy to Drama, etc. TV shows 72% (i.e. Big Bang Theory, Friends, South Park, Real Housewives, 77% Deadliest Catch, etc.) 44% Sports 34%

44% News 43%

User generated content – videos made by people like you (i.e. funny 37% cat videos, cute baby videos, dance routines, viral videos, etc.) UGC 25%

35% Music videos 23% Free ad-supported, professionally produced and digitally distributed original videos (i.e. Slow Mo Guys, Smosh, Between Two Ferns, etc.) 32% Original digital video 24%

34 Q11. [NET: Top Box] Now let’s talk about what types of video you watch. Do you typically watch: Base: ASV OTT Viewers n=589, SVOD OTT Viewer n= 332 Types of Video Viewed by Free ASV OTT Viewers: TV Shows, Original Series, Movies

• Free ASV OTT Viewers much more likely to watch News, Music Videos, UGC

Free ASV OTT Viewers Current or past TV shows from Reality TV to Comedy to Drama, etc. (i.e. Big Bang Theory, Friends, South Park, Real Housewives, TV shows 75% Deadliest Catch, etc.)

Original series from streaming services - Professional episodic shows Original series 73% usually made for Netflix, Amazon Prime or Hulu (i.e. Stranger Things, The Man in the High Castle, Handmaid’s Tale, Orange is the New Black, etc.) Movies 70%

News 47%

UGC 47%

User generated content – videos made by people like you (i.e. funny cat videos, cute baby videos, dance routines, viral videos, etc.) Music videos 43%

Sports 42%

Free ad-supported, professionally produced and digitally distributed original videos (i.e. Slow Mo Guys, Smosh, Between Two Ferns, etc.) Original digital video 33%

35 Q11. [NET: Top Box] Now let’s talk about what types of video you watch. Do you typically watch: Base: Free ASV OTT Viewers n=277 Cord Nevers: ASV OTT Viewers are less likely to be cord nevers

Cord Nevers

21% 20%

13%

ASV OTT Viewers SVOD OTT Viewers TV Only Cord Nevers

36 QS7. Have you ever subscribed to a paid TV service (Basic cable, Digital cable, Telco or Satellite)? Base: ASV OTT Viewers n=589, SVOD Viewer n= 332 TV Only Viewer n=302 Co-Viewing: Most platforms are watched with others. Online cable most likely to be co-viewed; ad supported free less likely to be co-viewed.

Ratio of % Who Watching Alone : % Who Watch With Others on this Platform (Among Platform Viewers) Watch Alone Watch with Others

54% 69% 65% 67% 67% 68% 76%

46% 31% 35% 33% 33% 32% 24%

Ad-free Subscription Streaming app that Ad-supported Ad-supported Free Online-based cable TV Regular (not cable) TV Cable/Satellite/Telco TV Service requires a Subscription Service Service provider cable/satellite/telco login

(e.g., Netflix, Amazon (e.g., Discovery GO, FX (e.g., Hulu with (e.g., YouTube, Pluto, (e.g., Sling TV, (e.g., ABC, CBS, NBC, (e.g., live TV, DVR, VOD) Prime, HBO Go/Now, app, WatchESPN, Xfinity, limited ads, CBS Roku Channel, Crackle, DirecTV Now) FOX, etc.) using an Showtime App, etc.) Spectrum, etc.) All Access with Vevo, Xumo, etc.) antenna or ‘over the air’ limited ads, etc.)

Q22. How many people do you typically watch with on each platform? [I watch by myself] [I watch with others] 37 Base: OTT Platform Users. UX: Some platforms are better rated than others for the user experience

UX Ratings for Each Platform (% Who Rate it Excellent/Good Among Platform Viewers)

91% 85% 78% 78% 78% 77% 72%

Ad-free Subscription Streaming app that Ad-supported Ad-supported Free Online-based cable TV Regular (not cable) TV Cable/Satellite/Telco TV Service requires a Subscription Service Service provider cable/satellite/telco login

(e.g., Netflix, Amazon (e.g., Discovery GO, FX (e.g., Hulu with (e.g., YouTube, Pluto, (e.g., Sling TV, (e.g., ABC, CBS, NBC, (e.g., live TV, DVR, VOD) Prime, HBO Go/Now, app, WatchESPN, Xfinity, limited ads, CBS Roku Channel, Crackle, DirecTV Now) FOX, etc.) using an Showtime App, etc.) Spectrum, etc.) All Access with Vevo, Xumo, etc.) antenna or ‘over the air’ limited ads, etc.)

Q1. [NET: Top 2 Box] How do you rate the video platform(s) you use in terms of user experience? 38 Base: OTT Platform Users. Value: Some platforms are better rated than others in terms of value

Value Ratings for Each Platform (% Who Rate it Excellent/Good Among Platform Viewers)

88% 85% 84% 80% 81% 79%

59%

Ad-free Subscription Streaming app that Ad-supported Ad-supported Free Online-based cable TV Regular (not cable) TV Cable/Satellite/Telco TV Service requires a Subscription Service Service provider cable/satellite/telco login

(e.g., Netflix, Amazon (e.g., Discovery GO, FX (e.g., Hulu with (e.g., YouTube, Pluto, (e.g., Sling TV, (e.g., ABC, CBS, NBC, (e.g., live TV, DVR, VOD) Prime, HBO Go/Now, app, WatchESPN, Xfinity, limited ads, CBS Roku Channel, Crackle, DirecTV Now) FOX, etc.) using an Showtime App, etc.) Spectrum, etc.) All Access with Vevo, Xumo, etc.) antenna or ‘over the air’ limited ads, etc.)

[Q2. [NET: Top 2 Box] How do you rate the video platform(s) you use in terms of value? 39 Base: OTT Platform Users. Content Quality: Some platforms are better rated than others in terms of quality of content

Content Quality Ratings for Each Platform (% Who Rate it Excellent/Good Among Platform Viewers)

89% 83% 82% 84% 79% 76% 73%

Ad-free Subscription Streaming app that Ad-supported Ad-supported Free Online-based cable TV Regular (not cable) TV Cable/Satellite/Telco TV Service requires a Subscription Service Service provider cable/satellite/telco login

(e.g., Netflix, Amazon (e.g., Discovery GO, FX (e.g., Hulu with (e.g., YouTube, Pluto, (e.g., Sling TV, (e.g., ABC, CBS, NBC, (e.g., live TV, DVR, VOD) Prime, HBO Go/Now, app, WatchESPN, Xfinity, limited ads, CBS Roku Channel, Crackle, DirecTV Now) FOX, etc.) using an Showtime App, etc.) Spectrum, etc.) All Access with Vevo, Xumo, etc.) antenna or ‘over the air’ limited ads, etc.)

Q3. [NET: Top 2 Box] How do you rate the video platform(s) you use in terms of quality of content? 40 Base: OTT Platform Users. Variety of Content: Some platforms are better rated than others in terms of variety of content

Variety of Content Ratings for Each Platform (% Who Rate it Excellent/Good Among Platform Viewers)

87% 83% 81% 81% 81% 76% 71%

Ad-free Subscription Streaming app that Ad-supported Ad-supported Free Online-based cable TV Regular (not cable) TV Cable/Satellite/Telco TV Service requires a Subscription Service Service provider cable/satellite/telco login

(e.g., Netflix, Amazon (e.g., Discovery GO, FX (e.g., Hulu with (e.g., YouTube, Pluto, (e.g., Sling TV, (e.g., ABC, CBS, NBC, (e.g., live TV, DVR, VOD) Prime, HBO Go/Now, app, WatchESPN, Xfinity, limited ads, CBS Roku Channel, Crackle, DirecTV Now) FOX, etc.) using an Showtime App, etc.) Spectrum, etc.) All Access with Vevo, Xumo, etc.) antenna or ‘over the air’ limited ads, etc.)

Q4. [NET: Top 2 Box] How do you rate the video platform(s) you use in terms of variety of content? 41 Base: OTT Platform Users. Availability of Unique Content: Some platforms are better rated than others in terms of availability of unique content

Availability of Unique Content Ratings for Each Platform (% Who Rate it Excellent/Good Among Platform Viewers)

87% 79% 79% 79% 80% 68% 64%

Ad-free Subscription Streaming app that Ad-supported Ad-supported Free Online-based cable TV Regular (not cable) TV Cable/Satellite/Telco TV Service requires a Subscription Service Service provider cable/satellite/telco login

(e.g., Netflix, Amazon (e.g., Discovery GO, FX (e.g., Hulu with (e.g., YouTube, Pluto, (e.g., Sling TV, (e.g., ABC, CBS, NBC, (e.g., live TV, DVR, VOD) Prime, HBO Go/Now, app, WatchESPN, Xfinity, limited ads, CBS Roku Channel, Crackle, DirecTV Now) FOX, etc.) using an Showtime App, etc.) Spectrum, etc.) All Access with Vevo, Xumo, etc.) antenna or ‘over the air’ limited ads, etc.)

Q5. [NET: Top 2 Box] How do you rate the video platform(s) you use in terms of availability of unique content? 42 Base: OTT Platform Users. Ad Receptivity and the Ad-Supported OTT Video Viewer

October 2018