STUFF WE WATCH UNDERSTANDING CANADIAN VIDEO CONSUMPTION HABITS There isn’t a week that goes by where we aren’t chatting about the latest TV show that we watched with our family, our friends, or our colleagues. Video surrounds us – whether we sit down to binge the latest series that Netflix has dropped or we casually watch a video clip on our phones – we can’t get away. We wanted to understand the complexities of Canadians video habits WE and the evolution of these habits over 2020. With so much content available at our fingertips, we wanted to determine where and what video content Canadians watch. We have seen audiences proliferate as more video content platforms launch in Canada. However, this LOVE doesn’t necessarily mean that we are walking away from tried & true platforms like traditional TV. Canadians spend just as much time with live TV as we do with streaming subscription platforms. By using a single source panel to tell us how viewing happens at a VIDEO respondent level, this allows us to gain a full picture of video viewing across platforms and content. We also wanted to challenge our own industry in how we think and talk about video platforms. These platforms give us what we want to watch but Canadians don’t actually know how they watch video. WE WATCH WHAT? OTT IS DOMINATED TRADITIONAL CABLE IS WE EXPECT TO BY NETFLIX ALIVE & WELLL MAINTAIN BUDGETS Among OTT platforms, Netflix Over two-thirds of If Netflix were to increase the remains king as the Canadians still have access cost of their service by $2, streaming subscription to traditional cable. more than half of current service with the highest Netflix users would be fine awareness and per capita While viewing has declined, with the change. We expect usage. Still – just over half of live TV viewing is equivalent to maintain our current Canadians have access to to that of OTT viewing. entertainment budgets – not Netflix, followed by Amazon necessarily adding any new Prime Video and Disney+. Two-thirds of TV subscribers services or cutting any don’t plan on cutting the subscriptions. Very few cord. Canadians mentioned making a change to their current subscriptions. 68% Cable TV 2/3 OF CANADIANS 70% SUBSCRIBE TO 60% Subscription/ Streaming Video Services ONLINE VIDEO, 64% SUBSCRIPTION/ 62% Online Video STREAMING VIDEO 63% SERVICES, AND 23% Online TV CABLE TV 24% 10% Pirated Video/ TV Programming 10% Q1 Q2 “Do you currently subscribe or access any of the following services?”? Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 Based on online TV viewers LIVE TV AND STREAMING ARE OUR TOP 2 VIDEO SOURCES 25% 24% 22% 22% Q1 Q2 16% 15% 14% 14% 11% 9% 9% 9% 6% 5% Live TV Recorded TV VOD Streaming Online TV Pirated Video Online Video Video CABLE PROVIDER WEB-BASED “What percentage of video do you consume across the below channels in a given week?” Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 OF CANADIANS KNOW 2 WHAT VIDEO-ON-DEMAND ! IS THROUGH THEIR CABLE 3 TV PROVIDER Q: Do you know what video on-demand is through your cable TV? Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 OF CURRENT CABLE 2 SUBSCRIBERS HAVE NO ! CURRENT PLANS ON 3 CUTTING THE CORD “Could you see yourself cancelling your cable completely and only viewing via apps and subscription services?” Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 Exclusive Movies on Stremaing Services 50% True Crime/ Documentaries 41% CANADIANS ARE First Run Movies from THeatres 37% LOOKING FOR Made for TV Movies 36% MOVIES AND TO WATCH TRUE CRIME/ Sitcoms 33% DOCUMENTARIES Sports 29% Cartoons 26% Scripted Dramas 26% Reality TV 25% News 24% Q: What type of content are you looking to pay for in a video service? Comedy Skits 23% 66% FEWER CANADIANS 49% BINGED WATCHED A SHOW IN Q2 Q2 Q1 “In the past month, have you binged watched a TV program? This is considered watching 3 or more episodes of a single program in one sitting.” Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 TOP SHOWS BINGED #1 #2 #3 #4 #5 MODERN GREY’S OZARK FRIENDS THE OFFICE FAMILY ANATOMY “Where did you watch this TV program and what program was it?” Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 CANADIANS LIKE GETTING RECOMMENDATIONS FROM FRIENDS AND FAMILY WHEN FINDING NEW SHOWS 49% 40% 29% 23% 22% Getting a I heard a lot of Saw an ad/ Promoted on the Had an recommendation positive buzz and Promotion on TV main page of a actor/actress that I from friends and wanted to check it for a new TV show streaming platform wanted to watch family out Q: How do you pick your next show to watch? Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 HALF OF 56% 2-5 SHOWS A WEEK CANADIANS WATCH 21% 6-10 SHOWS A WEEK BETWEEN 2-5 SHOWS A 12% 1 SHOW A WEEK WEEK 12% 11 OR MORE SHOWS A WEEK “Do you currently subscribe or access any of these services?” Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 SECTION SUBSCRIPTION 1 STREAMING SERVICES THERE IS A SMALL INCREASE IN THE AMOUNT OF PEOPLE WHO HAVE SUBSCRIPTION SERVICES 70% 51% ENGLISH FRENCH CANADIANS CANADIANS Q: Do you access or subscribe to a streaming video services (i.e Netflix, Crave)? Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 % of Canadians aware of the platform NETFLIX 99% AMAZON PRIME VIDEO 95% DISNEY+ 94% CANADIAN CRAVE 89% YOUTUBE PREMIUM 89% SUBSCRIPTIONS APPLE TV+ 87% ARE BEHIND GLOBALTV 77% CBS ALL ACCESS 63% GLOBAL SPORTSNET NOW 59% PLATFORMS TSN DIRECT 57% CBC GEM 57% HAYU 46% CLUB ILLICO 84% AMONG FRENCH CANADIANS* 45% STACKTV 45% “What video subscription does your household pay for and which ones do you have access to but someone else pays for?” [Based on total Canadians] DAZN 42% Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 2 OF NETFLIX USERS !3 PAY FOR ACCESS “What video subscription does your household pay for and which ones do you have access to but someone else pays for?” [Based on Netflix users] Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 AVERAGE NUMBER OF STREAMING SUBSCRIPTION SERVICES 1.9 A HOUSEHOLD HAS “What video subscription does your household pay for and which ones do you have access to but someone else pays for?” [Based on total Canadians] Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 % of Canadians who access the platform NETFLIX 52% AMAZON PRIME VIDEO 25% DISNEY+ 17% NETFLIX IS CRAVE 13% KING BUT APPLE TV+ 8% YOUTUBE PREMIUM 8% DISNEY+ HAS SPORTSNET NOW 5% CAUSED CBS ALL ACCESS 4% TSN DIRECT 4% MORE CBC GEM 4% DISRUPTION DAZN 4% CLUB ILLICO 9% AMONG FRENCH CANADIANS* 3% STACKTV 3% HAYU 2% “What video subscription does your household pay for and which ones do you have access to but someone else pays for?” [Based on total Canadians] Source: Mindshare’s Stuff We Watch Proprietary Study, Q1 2020 % of Canadians who access the platform NETFLIX 54% AMAZON PRIME VIDEO 30% DISNEY+ 19% NETFLIX IS GLOBAL TV 13% KING BUT CRAVE 12% YOUTUBE PREMIUM 11% AMAZON APPLE TV+ 10% PRIME VIDEO SPORTSNET NOW 7% TSN DIRECT 7% IS CATCHING CBC GEM 7% UP DAZN 6% CBS ALL ACCESS 6% CLUB ILLICO 12% AMONG FRENCH CANADIANS* 6% STACKTV 4% “What video subscription does your household pay for and which ones do you have access to but someone else pays for?” HAYU [Based on total Canadians] 3% Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 CANADIANS ARE AWARE OF PLATFORMS BUT DON’T ACCESS AT HOME NETFLIX PRIME VIDEO DISNEY+ AWARE AWAREAWARE AWAREAWARE 99% 95% 94% USE CONSIDERUSE CONSIDERUSE 54% 30% 19% “What video subscription does your household pay for and which ones do you have access to but someone else pays for?” [Based on capita] Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 CANADIANS ARE AWARE OF PLATFORMS BUT DON’T ACCESS AT HOME CRAVE APPLE TV+ CLUB ILLICO* AWARE AWAREAWARE AWAREAWARE 89% 87% 84% USE CONSIDERUSE CONSIDERUSE 12% 10% 12% “What video subscription does your household pay for and which ones do you have access to but someone else pays for?” [Based on capita] *Club Illico is based on French Canadians only. Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 IN Q2 WE WERE LOOKING TO ADD PLATFROMS WITH OUR FAVORITE VIDEOS In Q2 subscribers went back to adding mainstream DISNEY+ PRIME VIDEO CRAVE subscription platforms to 20% 19% 13% their suite of services. Disney+ saw a large jump in Q2, Canadians want platforms with all their favourite films and TV shows. YT PREMIUM DAZN APPLE TV+ 11% 9% 9% “Are there any video subscription services that you are planning or thinking of adding in the coming year?” [Based on total OTT users] Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 63% Hulu 61% HULU IS THE MOST 36% HBO Max 43% COMMON STREAMING 12% Quibi 17% SERVICE, BUT HBO MAX AND 7% Peacock 12% QUIBI ARE ON 28% THE RISE IN Q2 Haven't heard of any of them 29% Q1 Q2 “Have you heard of any of the following services?” Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 CITYTV IS USED CityTV/CityTV.com 45% WEEKLY BY 45% OF CANADIANS AND GLOBAL TV CTVGo/CTV.ca 33% AND CTV HAVE JUST OVER 30% OF CANADIANS Global/GlobalTV.com 31% USING THEM WEEKLY CBC/CBC Gem or CBC.ca 8% “What online TV websites do you use at least once a week?” Source: Mindshare’s Stuff We Watch Proprietary Study, Q2 2020 Based on the number pf people who said they watched online TV SECTION TRADITIONAL TV 2 VIEWING CANADIANS ARE STILL 66% 67% ON CABLE 27% 27% 10% 10% 3% 2% CABLE FIBRE SATELITTE OFF-AIR “You mentioned that you have access to cable TV.