CTAM Canada 2018 Video Consumption Research Broadcaster Forum - PowerPoint PPT Presentation

CTAM Canada 2018 Video Consumption Research Broadcaster Forum – November 13 th , 2018 Presented by Charlton Insights

Short-form content rises through the golden age of television

Research Approach Online survey Total sample: Quotas for age, Representative Focus is with n=3168 (margin of gender and of the entire consumption of respondents error + 1.7%, 19 times region were Canadian both long-form out of 20) aged 18+ established to population, (>5 minutes) and achieve a including non-TV short-form (<5 representative subscribers minutes) video sample content

Key Changes in 2018 vs. 2017 Canadians more likely to… Canadians less likely to… • • Be satisfied with their current TV package (among Subscribe to TV service (76%) subscribers), (61%) • Say “must have” genres: • Watch video content via • News and Information • On Demand (with TV subscription) • Sports • Streaming onto a computer • Factual entertainment • Streaming on a smartphone • Nature & science • Downloading onto a computer • Lifestyle, or family • Subscribe to Netflix or use CraveTV, Amazon Prime Video • Have used TV Everywhere service (among those aware)

While total time spent watching long-form (>5 minutes) video content is on the rise among total Canadians, it has not recovered among 18-34 year olds Total Canadians 18+ Canadians 18-34 35 35 Total = 33.2 when including short-form 29.0 28.8 28.4 28.4 30 30 Total = 27.9 when 26.9 26.6 Avg. Hours/Week (inc. 0) Avg. Hours/Week (inc. 0) including short-form 25 25 21.3 20.4 20 20 15 15 10 10 Short-form content viewing Short-form 5 5 content viewing 0 0 2015 2016 2017 2018 2015 2016 2017 2018 Total long-form hours/week Via TV subscription Via streaming Other long-form method

Including short-form content (<5 minutes in length) , Canadians watch an average of 33.2 hours of video content every week 17.7 hours/week via TV subscription ○ During scheduled time (12.1) ○ PVR/DVR (4.6) ○ On Demand (1.1) 4.8 hours/week short-form ○ YouTube (2.2) ○ Facebook (1.3) ○ Instagram (0.4) ○ …6 other sites/apps 8.4 hours/week via streaming 2.3 hours/week other long-form ○ Onto computer (3.4) ○ Onto TV set (3.1) ○ Downloaded onto computer (1.1) ○ Onto smartphone (1.1) ○ DVD/Blu-Ray (0.9) ○ Onto tablet (0.8) ○ Downloaded onto tablet (0.3)

18-34 year olds spend less time watching content overall at 27.9 hours/week , but more time streaming and with short-form content 6.9 hours/week via TV subscription ○ During scheduled time (3.9) ○ PVR/DVR (2.0) ○ On Demand (1.0) 7.5 hours/week short-form ○ YouTube (3.3) ○ Facebook (1.6) ○ Instagram (1.1) ○ Snapchat (0.6) ○ Twitter (0.3) ○ …4 other sites/apps 11.0 hours/week via streaming ○ Onto computer (4.1) 2.5 hours/week other long-form ○ Onto TV set (3.7) ○ Downloaded onto computer (1.2) ○ Onto smartphone (2.3) ○ DVD/Blu-Ray (0.9) ○ Onto tablet (1.0) ○ Downloaded onto tablet (0.4)

Netflix remains the most popular OTT service by a wide margin, although CraveTV and Amazon Prime Video are working their way up the charts Total Canadians 18+ Canadians 18-34 Subscribe to… Subscribe to… 53 74 Any (NET) Any (NET) Netflix 50 Netflix 71 Club Illico* 18 Club Illico* 24 CraveTV 10 Amazon Prime Video 14 Amazon Prime Video 9 CraveTV 14 CBC TV 9 CBC TV 9 Sportsnet NOW 5 YouTube Kids 8 TSN Direct 5 YouTube Prime 7 4 6 YouTube Prime CBS All Access YouTube Kids 4 Sportsnet NOW 6 Tou.tv Extra* 3 TSN Direct 6 RDS Direct* 3 DAZN 5 CBS All Access 3 Tou.tv Extra* 3 Britbox 2 Britbox 3 DAZN 2 RDS Direct* 2 % % *Asked in Quebec only

18-34 year olds are beginning to turn away from TV for news & sports content Avg. 6.6 hrs/week Avg. 7.0 hrs/week Access via… Access via… Watching/ reading about 28 32 Watching on TV on social media Watching/ reading about Watching on TV 19 20 on social media Watching/ reading about Watching/ reading about 18 15 online online Watching/ reading about Watching/ reading about 12 11 on mobile app on mobile app Listening to on radio 12 Listening to on radio 11 Reading in physical 6 Listening to on podcasts 6 newspaper/ magazine Reading in physical Listening to on podcasts 5 5 newspaper/ magazine % %

o Ability to change/update your channel package through your set-top box o Wireless set-top box o PVR/Whole Home PVR o Ability to restart shows o Access to streaming service subscriptions on set-top box o Internet-only TV service o Personal profile o Ability to download PVR/VOD content onto a device to watch offline o 4K/HDR content A MaxDiff exercise was o Access to your TV subscription through other media devices o Access to live TV content while away from home conducted to assess the o Voice remote/voice search o Out-of-home PVR access (cloud PVR) resonance of potential TV o Access to VOD content while away from home subscription features

The most appealing TV subscription features vary by demographic subgroups Total Canadians 18-34 year olds Non-TV Subscribers 18+ 18+ Ability to change/ update your Access to streaming service Ability to update your package 48 42 46 channel package through your subscriptions on set-top box through your set-top box set-top box Ability to change/ update your Access to streaming Wireless set-top box 45 channel package through your 39 44 subscriptions on set-top box set-top box PVR/Whole Home PVR 42 Wireless set-top box 38 Internet-only TV service 41 Ability to restart shows 39 PVR/Whole Home PVR 36 Wireless set-top box 40 Access to streaming service 37 Ability to restart shows 35 Ability to restart shows 35 subscriptions on set-top box

In simulated 5-item packages of the potential TV subscription features tested, the following would provide at least six in ten Canadians with their first choice Top Optimizations of Only Five Features (% Reach = % for Whom 1 st Choice Feature is Included in Package) Ability to change package through Access to streaming subscription on set-top 68% Wireless set-top box PVR/Whole Home PVR Ability to restart shows set-top box box Ability to change package through 65% Wireless set-top box PVR/Whole Home PVR Ability to restart shows Internet-only TV service set-top box Ability to change package through Access to streaming subscription on 64% Wireless set-top box PVR/Whole Home PVR Internet-only TV service set-top box set-top box Ability to change package through Access to streaming subscription on 64% PVR/Whole Home PVR Ability to restart shows Internet-only TV service set-top box set-top box Ability to change package through 63% Wireless set-top box PVR/Whole Home PVR Ability to restart shows 4K/HDR content set-top box Ability to change package through Access to streaming subscription on 62% Wireless set-top box PVR/Whole Home PVR 4K/HDR content set-top box set-top box Ability to change package through Access to streaming subscription on 62% PVR/Whole Home PVR Ability to restart shows 4K/HDR content set-top box set-top box Ability to change package through Access to streaming subscription on 61% Wireless set-top box Ability to restart shows Internet-only TV service set-top box set-top box Ability to change package through 61% Wireless set-top box PVR/Whole Home PVR Ability to restart shows Personal profile set-top box Access to streaming subscription on 61% Wireless set-top box PVR/Whole Home PVR Ability to restart shows Internet-only TV service set-top box Ability to change package through Access to streaming subscription on 60% Wireless set-top box PVR/Whole Home PVR Personal profile set-top box set-top box Ability to change package through Access to live TV content while outside of 60% Wireless set-top box PVR/Whole Home PVR Ability to restart shows set-top box your home Ability to change package through Access to streaming subscription on 60% PVR/Whole Home PVR Ability to restart shows Personal profile set-top box set-top box Ability to change package through Ability to download PVR/VOD content to 60% Wireless set-top box PVR/Whole Home PVR Ability to restart shows set-top box watch offline