The Sony Channel New Channel Evaluation

The Sony channel New Channel Evaluation

Fuel for Brilliant DECISIONS

February 2013 Fuel for Brilliant DECISIONS 2

Outline

1.Introduction

2.Main Findings in Detail

i. Is there a need?

ii. Could Sony do it?

iii. Do they like it and would they watch it?

iv. Would it drive subscriptions?

3.Conclusions & Implications

Fuel for Brilliant DECISIONS Introduction

Fuel for Brilliant DECISIONS Fuel for Brilliant DECISIONS CLIENT LOGO HERE ON MASTER 4

Background and methodology

Background

SONY and FOXTEL have been in discussions regarding a channel for women. In February 2012, research was conducted to test the channel concept for propensity to watch, measure the appeal of the channel and proposed programming and identify any potential barriers to viewing and successful channel launch.

Methodology D&M Research hosted an online survey with 500 Australian women aged 25-54 years. The survey was 15 minutes long and included visual stimulus in the form of a video showing elements of the SONY channel offering. To achieve a good spread of women, quotas were placed on age and location. The sample included 50:50 Pay TV Subscribers / Non subscribers, with the data weighted back to the population proportions in the analysis. The typical respondent was a women aged 40 years, married with children, living in a Capital City with a combined household income of around $90K.

Fuel for Brilliant DECISIONS Main Findings in Detail Is there a need?

Fuel for Brilliant DECISIONS Fuel for Brilliant DECISIONS CLIENT LOGO HERE ON MASTER Types of Shows or Programs like to Watch Women claim to watch and love Dramas, Soaps and Miniseries / Movies.

100% 90% Watched Favourites 80% 70% 60% 77% 76% 72% 72% 71% 71% 69% 50% 63% 40% 30% 44% 40% 39% 35% 20% 39% 39% 31% 30% 34% 32% 32% 33% 25% 25% 10% 15% 17% 15% 6% 10% 8% 11% 2% 0% 4% 1% Mini series / Movies Drama / Drama serials Sports Other (Specify )

Based on Genre

Fuel for Brilliant DECISIONS QA1a. Which of these types of shows or programs do you watch? QA1b. And which of these types of shows or programs are your favourites? 7

Top 3 Favourites by Show Type

Just over 1 in 2 mentioned an actual Drama or Soap show in their top 3, and 1 in 3 as their most Favourite.

100% 90% Top 3 Favourite 80% 70% 60% 55% 50% 48%

40% 35% 30% 27% 26% 18% 18% 20% 15% 33% 11% 27% 8% 7% 5% 10% 4% 3% 1% 16% 13% 9% 7% 8% 6% 0% 5% 3% 2% 2% 1% 0% Net Dramas & Soaps Reality/ Celebrity Soaps/ Soap Operas Sports

Based on Shows Fuel for Brilliant DECISIONS QA2. Which television shows were your favourite 3 programs or shows in 2012? A3.8 You mentioned that you watch Soaps / Soap Operas. Which soaps did you watch in 2012?

Watching soaps Top Soaps by Country One in 4 women said they watch Soap Operas, among these:

B&B 49% of USA USA Soap Viewers = 63%

AUS Home & Away = 62% 72% of AUS Soap Viewers

UK 0.25 0.75; 100% = 17% Downton Abbey 34% of UK Soap Viewers Other = 9% N= 127 respondents who watch soaps All respondents n=502 Population = 1,145 Population = 4,520

Fuel for Brilliant DECISIONS QA3.9 You mentioned you watch Soaps/ Soap Operas. Which Soaps did you watch in 2012?

Most watched Soaps in 2012 by Country The most watched USA Soaps are The Bold and the Beautiful (49%), Days of our Lives (17%) and Revenge (13%). The most watched Australian Soaps are Home & Away (72%), Neighbours (33%) and Packed to the Rafters (18%). The most watched UK Soaps are Downton Abbey (32%), Eastenders (24%) & Coronation Street (20%).

USA Soaps Australian Soaps UK Soaps Base 83 Base 80 Base 23 Population 729 Population 722 Population 195 The Bold and the Beautiful 49% Home and Away 72% Downton Abbey 32% Days of our Lives 17% Neighbours 33% Eastenders 24% Revenge 13% Packed to the Rafters 18% Coronation Street 20% The Young and the Restless 10% Winners and Losers 4% Emmerdale 5% Bones 6% House husbands 9% Other 34% Parenthood 6% Offspring 3% Dont know 15% The Big Bang Theory 5% Underbelly 3% Dallas 4% Other 3% UK Greys Anatomy 4% Dont know 3% = 17% How I Met Your Mother 3% Days of our Lives 3% Other 11% Dont know 3% AUS = 62%

USA = 63%

N= 127 respondents who watch soaps Fuel for Brilliant DECISIONS Population = 1,145 10

Is anything missing? in 10 . . . Australian women aged 25-54 think there is something missing from the current Australian 7 television offering (71%)

Fuel for Brilliant DECISIONS QB1.11 What, if anything, do you thins is missing in the current Australian television offering?

What’s missing in the current offering?

When asked what, if anything, is missing from the current Australian offering, only 29% said ‘Nothing/Don’t know’, indicating that for 71%, something is missing.

Australian/local content 14%

Movies/Mini Series/Better movies 12%

Comedies/good comedy 8%

Drama/Drama series 7%

Variety 7%

Documentaries/Nature/History 6%

Quality programming/quality acting and writing/less cheap reality 6%

DK/Nothing 29%

0% 5% 10% 15% 20% 25% 30% 35%

Fuel for Brilliant DECISIONS 12

Is there a need? in 3

. . . Australian women aged 25-54 Almost think the current Australian television offering needs a channel that caters more 1 towards women (31%)

Fuel for Brilliant DECISIONS 13

The current Australian offer Overall, Australian Women give the current television offer for women a 6/10.

Extremely well 100% 10 5% 6% 5% 90% 10% 7% 11% 9 80% 8 20% 22% 70% 6 23% 7 Bottom 3 6 Box 60% 6 6 3-4 5 - Neither 50% 34% 5 6-7 36% 37% 40% 4 Top 3 Box 30% 3 Average 20% 2 33% 27% 10% 24% 1 0% 0 Total (N=502) Pay TV Subscribers (n=248) Non Subs (n=254) Not at all well

Fuel for Brilliant DECISIONS All respondents n=502 B2. How well do you think the current Australian television offering caters to women? 14

Who caters best – Pay TV Subscribers vs. Non Subs

Channel 7 is seen as catering best to women amongst Non subs, Lifestyle the best for Subs – who also rate it higher.

Rating Rating 7/10 7.5/10 30% 27% 25% 25% 23% 22% 20% 19%

15% 13% 12% 13% 12%

10% 9% 8% 6% 4% 5% 5% 4% 2% 2% 1% 1% 0% 0% Seven Nine Gem Arena Other

Pay TV Subscribers (n=248) Non Subs (n=254) Fuel for Brilliant DECISIONS All respondents n=502 QB3. Which television station – on either FTA or Pay TV – do you think caters best to women? QB5.15 How interested would you be in a channel dedicated just to Soaps?

Interest in channel dedicated to Soaps

Around 2 in 3 women who watch soaps are interested in a channel dedicated to Soaps, including 1 in 3 highly interested. Interest is higher amongst Pay TV Subscribers.

Extremely 100% 10 90% 16% 15% 16% 9 3% 80% 8 11% 8% 14% 70% 11% 7 7 12% Bottom 3 Box 60% 6 6 6 34% 3-4 5 - Neither 50% 29% 5 27% 6-7 40% 4 Top 3 Box Average 30% 3 20% 40% 2 34% 31% 10% 1 0% 0 Total Soap Watchers (n=127) Pay TV Subscribers (n=64) Non Subs (n=63) Not at all

N= 127 respondents who watch soaps Fuel for Brilliant DECISIONS Population = 1,145 16

Interest in a channel that focuses on family & relationships

7 in 10 women are interested in a channel that airs a variety of genres with a family and relationship focus. Among them, 4 in 10 are highly interested.

Extremely 100% 10 5% 6% 5% 90% 8% 5% 9% 9 80% 15% 8 16% 17% 70% 7 7 7 7 NETT Bottom 3 Box 60% 29% 6 3-4 31% 32% 5 - Neither 50% 5 6-7 40% 4 Top 3 Box Average 30% 3 45% 20% 39% 37% 2 10% 1 0% 0 Total (n=502) Pay TV Subscribers (n=248) Non Subs (n=254) Not at all

Fuel for Brilliant DECISIONS All respondents n=500 QB6. How interested are you in a channel that airs drama, comedies, reality, lifestyle shows, talk/chat shows and documentaries that have a family and relationship focus? QB8.17 Imagine you were asked to create a channel that catered predominantly for women. What percentage of each of these genres would you include in this channel?

What would women build?

If women could build their own TV Channel catering for women about 1/3rd of all programming would be dedicated to Drama and Soaps, Mini series and Movies.

Variety/Talent Shows; 5% Drama/Drama Serials; 12% Net Drama/Soaps/Mini Daily Style Chat or Talk; 8% series/Movies = 34% Documentaries/Nature/History; 8% Soaps/Soap Operas; 9%

Reality/Celebrity Reality; 8% Mini series / Movies; 13%

Crime/Law/Mystery; 10% Respondents were shown 10 feature genres Lifestyle; 16% as ingredients for a channel that catered Comedy; 12% predominantly for women and asked what percentage of each genre they would include if they were making the channel themselves.

Fuel for Brilliant DECISIONS All respondents n=502 Main Findings in Detail Could SONY do it?

Fuel for Brilliant DECISIONS Fuel for Brilliant DECISIONS CLIENT LOGO HERE ON MASTER 19

Spontaneous Associations with SONY – Word Cloud

There is a high free association of SONY with Quality (31%) and Televisions.

PRE-CONCEPT ASSOCIATIONS

* A ‘Word Cloud’ is a visual depiction of the responses to this question. The frequency of mention is indicated by the font size of the word Fuel for Brilliant DECISIONS QC1. Thinking now about the brand SONY. When you think about the brand SONY, what comes to mind? 20

Could SONY do a TV Channel?

Nearly 6 in 10 (57%) think SONY is capable of having a TV channel, and less than 1 in 5 (15%) disagree. PRE-CONCEPT

Total (n=502) 16% 41% 28% 9% 6% 3.5

Pay TV Subscribers (n=248) 21% 34% 30% 10% 5% 3.6

3.5 Non Subs (n=254) 15% 43% 28% 9% 6%

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

Strongly Disagree Partly Disagree Neither agree nor disagree Partly Agree Strongly Agree

Fuel for Brilliant DECISIONS All respondents n=502 QC2. Thinking about the SONY brand, regardless of whether they currently do it or not, how much do you agree or disagree that SONY could do the following in the future? Main Findings in Detail Do they like it and will they watch it?

Fuel for Brilliant DECISIONS Fuel for Brilliant DECISIONS CLIENT LOGO HERE ON MASTER 22

Visual Stimulus

Respondents were shown a 30 second video featuring a selection of content from the SONY women’s channel, accompanied by a stylised SONY logo and mood music. When the video ended, respondents were shown the 5 feature components again for 10 seconds each.

Fuel for Brilliant DECISIONS D1a.23 Based on what you have just seen, how appealing do you feel this channel is to you?

Overall appeal

The SONY channel was well received, with 3 in 4 (75%) giving a positive score, including nearly (47%) giving a top 3 box score for overall.

Very Appealing 100% 10 9% 8% 9% 90% 9 8% 7% 8% 80% 8% 8 8% 7 8% 70% 7 7 7 24% Bottom 3 Box 60% 28% 29% 6 3-4 5 - Neither 50% 5 6-7 40% 4 Top 3 Box Average 30% 3 47% 52% 20% 45% 2 10% 1 0% 0 Total (N=502) Pay TV Subscribers (n=248) Non Subs (n=254) Not at all Appealing

Fuel for Brilliant DECISIONS All respondents n=502 24

What do you like about the SONY Channel – Top 3 Box

“The variety of women's shows that differ “All the good shows on ONE channel so you greatly though are all easy shows to get don't have to go fishing around looking for glued too.” them!!”

Variety / Range General Content of Programs / / Programs / Shows 31% Shows 29%

“I like a lot of the shows mentioned (eg. “The variety of shows. I could count at grey's anatomy), and I like the sound of least 5 of the shows I particularly like.” the new shows they would like to air. I also like that there would be a channel to play the soaps I miss!”

Fuel for Brilliant DECISIONS QD1b. What, if anything, do you particularly LIKE about the channel? QD4.25 From what you have seen, which of the following personality traits do you think the SONY channel would have if it were a person?

What type of person would the SONY Channel be? For 84%, the top personality trait associated with the SONY Channel is “Loves to Entertain”. SONY also has high associations with Accessible (79%), Friendly (79%), Fun (77%) and Modern (75%).

100%

90% 84% 79% 79% 80% 77% 75% 70% 70% 70% 67% 66% 66% 65% 64% 63% 60% 60% 60% 53% 52% 52% 50% 50% 43% 43% 40%

30% 28%

20%

10%

0% Loves to entertain Modern High quality Feminine Clever wit Sexy

Fuel for Brilliant DECISIONS All respondents n=502 QD5.26 Based on what you have seen so far, which of these statements do you think would apply to the new channel?

How would you describe the SONY Channel?

The top description associated with the SONY channel is “Light entertainment – nothing too dark or heavy”. Other high associations include: Offers great TV, particularly escapist drama and comedy (68%), Fun and addictive shows and Features shows with strong, relatable female leads (66%).

100% 90% 79% 80% 68% 70% 66% 66% 65% 62% 61% 60% 60% 59% 58% 60% 55% 54% 54% 52% 52% 50% 46% 44% 43% 40% 35% 34% 32% 30% 25% 21% 20% 10% 0% Light entertainment – nothing too dark or heavy It’s not a 24 hour soap channel Humour that is clever, never crass A guilty pleasure

Fuel for Brilliant DECISIONS All respondents n=502 D3.27 And to what extent do you agree or disagree with these statements about the SONY channel?

Channel Diagnostics

Over 7 in 10 agree that they like the idea of this channel and that it would have programs they would like to watch.

Average

The channel would have programs and shows I would want to watch 76% 8% 16% 3.9

* I really like the idea of this channel 71% 13% 16% 3.9

It made me feel different about the Sony brand 63% 26% 9% 3.8

This channel would be for someone like me 65% 13% 21% 3.7

It looks really different to other channels 54% 19% 26% 3.4

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

Disagree Neither Agree

Fuel for Brilliant DECISIONS All respondents n=502 *Benchmark against best Fox Footy concept = 68% E3a.28 If this new channel became available on Free to Air TV, how likely would you be to watch it?

Likelihood to watch

8 in 10 women are likely to watch the SONY Channel if it was available, with 6 in 10 highly likely to watch.

Would definitely watch 100% 10 8% 10% 7% 5% 90% 5% 4% 9 7% 7% 80% 7%7 7 8 7 70% 7 Bottom 3 Box 22% 19% 23% 60% 6 3-4 5 - Neither 50% 5 6-7 40% 4 Top 3 Box 30% 59% 60% 59% 3 Average 20% 2 10% 1 0% 0 Total (N=502) Pay TV Subscribers (n=248) Non Subs (n=254) Not at all likely to watch

Fuel for Brilliant DECISIONS All respondents n=502 29

Preferred name in 3

. . . Prefer the name Almost2 SONY Entertainment

Fuel for Brilliant DECISIONS E1.30 Here are 9 potential names for the new SONY Channel. Please select the 3 you like the most

Preferred name

Almost 2 in 3 (65%) chose Sony Entertainment as the preferred name

100%

80%

65% 60% 60%

47%

40% 29% 27% 27%

20% 18% 16% 11%

0% Sony Entertainment Sony Entertainment Television Sony Glow Sony Stella Sony Fling

Fuel for Brilliant DECISIONS Main Findings in Detail Will it build subscriptions?

Fuel for Brilliant DECISIONS Fuel for Brilliant DECISIONS CLIENT LOGO HERE ON MASTER S7.32 Just thinking about your Pay TV Subscription how likely are you to retain your current / subscribe to Pay TV Subscription over the next 12 months?

Acquisition / Retention Propensity – Foxtel

This chart is based on the Foxtel propensity model of assessing net scores of 6-10 for Acquisition amongst Non-pay TV Subs, and 0-4 for Retention of Pay TV Subs after seeing and considering the Sony TV Channel concept.

50% Resting Propensity = prior to concept Concept Propensity = after concept

40%

30% 27.0% Resting Propensity 21.2% Concept Propensity 20%

10% 4.4% 4.3%

0% 0-4 Retention / Churn 6-10 Acquisition

All respondents n=502

Fuel for Brilliant DECISIONS S7.33 Just thinking about your Pay TV Subscription how likely are you to retain your current Pay TV Subscription over the next 12 months?