Conviva’s State of Streaming: Content Discovery Early Insights for ARF LA 7/20/21 1 © 2021 Conviva. All Rights Reserved. • Early Insights from Conviva Research • Research Methodology • Streaming Content Discovery • Social Media’s Impact • Panel Discussion + Q&A • Amy Shelby – VP, Marketing - The CW • Steven Millman – SVP, Research - Dynata Today’s • Nick Cicero – VP, Strategy - Conviva Agenda • Edwin Wong – SVP, Insights + Innovation - Vox Media 2 © 2021 Conviva. All Rights Reserved. Research Set Up Age of Participants 20.00% 18.00% State of Streaming Content Discovery 2021 16.00% • Consumers Research Conducted by Dynata and 14.00% 12.00% Conviva 10.00% Research Objectives 8.00% 6.00% • To understand the sources of information that lead to 4.00% discovery of video content on Streaming Services 2.00% • Understand the role that social media plays in content 0.00% 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75+ discovery of video content on Streaming Services Target Audiences Gender • Adults 18+, use social media, watch TV or other video content through internet streaming, watch linear TV (not streamed from the internet) Recruitment 52% 48% • Study Dates: 6/10/2021 - 6/14/2021 • Sample Size: 2,502 Consumers Male Female 3 © 2021 Conviva. All Rights Reserved. Key Findings • Content Discovery is still seen as a problem by many consumers. Sources of discovery is extremely diverse • TV Ads are the most common source of discovery as consumers look for new options • Random chance • Streaming service recommendations • In person friends/family talk/recommendations (includes social activity from friends) • Trailers, ads, posts on social platforms • For most, Social Media is not the most important source of info for discovery of new shows, however Social Media often intersects with the above discovery sources. • However, Social Media users are extremely valuable users to Streaming Services. There is a direct correlation between high social media usage and high streaming video consumption. 4 © 2021 Conviva. All Rights Reserved. Who are heavy consumers of Streaming Video? Streaming Video Consumption by Age Streaming Video Consumption by Gender 30.00% 25.00% Low (1-3 Platforms) 20.00% 15.00% Medium (4-5 Platforms) 10.00% 5.00% High (6-8 Platforms) 0.00% 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75+ 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00% High (8+ Hours) Medium (5-7 Hours) Low (0-4 Hours) Male Female 5 © 2021 Conviva. All Rights Reserved. Own Your Algorithm What are the most important sources of to Spark Serendipity streaming discovery for survey participants? Insight: It is essential for streaming I discovered it by chance services to invest in personalization algorithms to drive viewers deeper I saw an ad for it on TV into the content catalog. It was recommended by a friend or We talk about the quality of Netflix family member and TikTok's recommendation and I saw it recommended while watching curation. There’s a reason for this a streaming service success! Viewers want to be served My friends were talking about it in up new content to watch. person I read or heard a review I saw an ad for it on social media My friends were talking about it on social media 0.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%40.00% 6 © 2021 Conviva. All Rights Reserved. What are consumer perceptions of watching Own Your Algorithm entertainment content? to Spark Serendipity I often find great shows, movies and videos just by browsing 62% Insight: It is essential for streaming I’m always looking for new shows and movies to watch 58% services to invest in personalization I like to watch my favorite shows and movies again and again 54% algorithms to drive viewers deeper Watching TV shows and movies is very important to me 53% into the content catalog. I often recommend shows and movies to my friends and family members 50% There are so many shows and movies available today, it is hard to find the best ones 50% We talk about the quality of Netflix I like to talk about shows and movies with my friends 50% and TikTok's recommendation and Today’s shows and movies aren’t as good as the ones I grew up with 48% curation. There’s a reason for this I often watch the shows my family and friends like 48% success! Viewers want to be served I usually don’t plan what to watch ahead of time 43% up new content to watch. I try to get a lot of information about a show or movie before I invest time in watching 41% Watching news is more important to me than entertainment shows 39% I regularly check out websites about TV shows, movies, and actors 38% I spend more time on social media than watching shows and movies 35% I know a lot about new shows and movies 34% For me, the best thing on TV is sports 30% I would rather play video games than watch TV 24% Base: Total Respondents (n=2502) 7 © 2021 Conviva. All Rights Reserved. What are the most important sources of streaming TV Drives TV discovery by watchers of Streaming Services? I saw an ad for it on TV I discovered it by chance Insight: Still important for linear TV advertising in marketing of streaming I saw it recommended while watching a streaming service shows and platforms. It was recommended by a friend or family member My friends were talking about it in person Viewers tune in for the shows they I saw an ad for it on social media have to watch live, and gain exposure to new programs to log in My friends were talking about it on social media I saw a post from a TV network or streaming service I follow and watch. on social media It was recommended by a friend on social media TV Ads can often have the widest I read or heard a review reach, sparking discussion around I saw a cast member talk about the show/movie on TV new shows and movies, which turns It was recommended by a celebrity or influencer on social into recommendations, reviews, media social media posts, etc. It was recommended in an email from a streaming service 0% 20% 40% 60% 80% 100% 120% 140% High Agg Streaming (8+) Medium Agg Streaming (5-7) Low Agg Streaming (0-4) 8 © 2021 Conviva. All Rights Reserved. What are the most important sources of streaming discovery TV Drives TV by watchers of Streaming Services? I saw an ad for it on TV Insight: Still important for linear TV I discovered it by chance advertising in marketing of streaming I saw it recommended while watching a streaming shows and platforms. service It was recommended by a friend or family member Viewers tune in for the shows they have to watch live, and gain My friends were talking about it in person exposure to new programs to log in I saw an ad for it on social media and watch. My friends were talking about it on social media I saw a post from a TV network or streaming service I TV Ads can often have the widest follow on social media reach, sparking discussion around new shows and movies, which turns It was recommended by a friend on social media into recommendations, reviews, I read or heard a review social media posts, etc. 0% 20% 40% 60% 80% 100% 120% 140% High Agg Streaming (8+) Medium Agg Streaming (5-7) Low Agg Streaming (0-4) 9 © 2021 Conviva. All Rights Reserved. What are the most important sources of streaming discovery by watchers of Streaming Services? Recommendations I saw an ad for it on TV I discovered it by chance Insight: Responses highlight a diversity of influences and I saw it recommended while watching a streaming service demonstrate the indirect power of It was recommended by a friend or family member promotions: if they reach your friends, My friends were talking about it in person those friends might recommend the show. I saw an ad for it on social media My friends were talking about it on social media I saw a post from a TV network or streaming service I follow on social media It was recommended by a friend on social media I read or heard a review I saw a cast member talk about the show/movie on TV It was recommended by a celebrity or influencer on social media It was recommended in an email from a streaming service 0% 20% 40% 60% 80% 100% 120% 140% High Agg Streaming (8+) Medium Agg Streaming (5-7) Low Agg Streaming (0-4) 10 © 2021 Conviva. All Rights Reserved. There’s a direct relationship between social media usage and streaming video consumption In a typical week, how much time do you spend doing the following activities? - • The largest number of Watching television or other video content through Internet streaming? respondents viewing 5+ Hours None/not applicable per day are also users who report using the most social More than 8 hours/day (8) media platforms 5 to 8 hours/day (6.5) • These users are watching video everywhere they go, when 3 to 5 hours/day (4) they’re on their commute, when 1 to 3 hours/day (2) they’re at school or work, on the way home and binge streaming Less than 1 hour/day (1) at night. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Number of Aggregate High (6-8) Medium (4-5) Low (1-3) None Social Media Platforms Used: 11 © 2021 Conviva.