QuickPlay Media US Mobile TV and Video Survey 2011 Summary

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1 QuickPlay Media US Mobile TV and Video Survey 2011 Summary 190 Liberty Street, Second Floor Toronto, Ontario M6K 3L5 Canada Phone PLAY (7529)

2 Research Summary Mobile TV and Video Survey The fourth annual independent Market Tools study focusing on consumer interest and consumption of mobile TV and video content reveals some interesting trends regarding the mobile TV/video viewing habits and preferences of today s consumers. The survey was conducted via Zoomerang, an online survey services provider, and polled US- based mobile phone subscribers between the ages of 18 and 44. Key Findings Adoption of Mobile TV and/or Video Services Is Accelerating, and Usage Is Increasing 52 percent of respondents using mobile TV and/or video services have been doing so for less than one year and another 30 percent have been using these services for less than two years. (Figure 1) How long have you been a mobile TV and/or video user? More than 3 years Between 2 to 3 years 9% 9% Between 1 and 2 years Between 6 months and 1 year 30% 31% Less than 6 months 21% 0% 5% 10% 15% 25% 30% 35% Figure 1 77 percent of respondents who use their mobile operators mobile TV and/or video service agreed that they watch more TV and video on their mobile device than a year ago (Figure 2) I watch more TV and video on my mobile device than I did one year ago. Strongly disagree Disagree 4% 7% Neither agree nor disagree 11% Agree Strongly agree 37% 40% 0% 5% 10% 15% 25% 30% 35% 40% Figure 2

3 70 percent of respondents who use their mobile operators mobile TV and/or video service answered that they used it almost every day (30 percent) or at least once per week (40 percent) (Figure 3) compared to 2010 when 20 percent of respondents reported they used mobile TV and/or video services daily and 31 percent used it at least once per week. These findings indicate increasing adoption of these mobile services and greater consumption of mobile entertainment by consumers in How ozen did/do you use your mobile operator's or TV service provider's mobile TV and/or video service in an average month? % 40% Once Per Wk Daily % 0% 5% 10% 15% 25% 30% 35% 40% Figure 3 Consumers Want Social TV The integration of social media features with mobile video was of strong interest. 94 percent of respondents indicated they would be interested in viewing mobile video channels that integrate Facebook status updates and Twitter feeds with video content. (Figure 4) How interested are you in viewing mobile video channels that integrate social media such as Facebook or Twi\er? Not at all interested 6% Interested 11% Somewhat Interested 33% Very interested 50% 0% 5% 10% 15% 25% 30% 35% 40% 45% 50% Figure 4

4 73 percent of respondents would like to know which friends are viewing the same mobile video content or channels as they are; 30 percent want live Twitter interaction during programming with feeds customized to the content that they re viewing, or to see what friends are tweeting about; and 20 percent are interested in live tweets integrated within video content, such as NFL discussions, scores and news. (Figure 5) Which of these integrated social media features would interest you most, while viewing content on your mobile device? Live Tweets overlayed onto video content (ex. Twi_er NFL discussions, scores, news) Live Twi_er interac`on during programming (feeds customized to content you are viewing or to see what friends are twee`ng about) Facebook friends check in (knowing which friends are viewing same mobile video content/channels) 30% 73% 0% 10% 30% 40% 50% 60% 70% 80% Figure 5 Mobile TV/Video Challenges (Consumer) While interest in mobile TV and/or video services is strong, general awareness of available offerings continues to be an issue, with nearly 43 percent of respondents unsure if their mobile operator offers such services. This low level of awareness is expected to improve as providers continue to increase marketing promotions around these offerings. Perceived cost continues to be a top barrier to service adoption with 21 percent of consumers citing price as the number one reason they have not tried a mobile TV or video service. However, this is an improvement from 41 percent of respondents who cited price as the primary reason in 2010, which subsequently was also an improvement over the 58 percent who reported price as their top barrier in (Figure 6) If you have not tried your TV service provider s mobile TV and/or video service, what is the biggest reason why? Not enough quality content Think it will be too expensive Don t know if service is available to me Mobile phone doesn t support it 7% 14% 21% 43% 0% 5% 10% 15% 25% 30% 35% 40% 45% Figure 6

5 Where Do Survey Respondents Watch Mobile TV/Video? The most popular places to watch mobile TV and/or video are at home (34 percent), in between activities (29 percent) and while waiting in line (13 percent). At- home usage saw the greatest changes with 29 percent of respondents in 2010 which may reflect the proliferation and use of ipads and other tablet devices in the home. (Figure 7) Where do you most ozen watch mobile TV and/ or videos? While visi`ng with friends or family While traveling (i.e. on an airplane) While in transit (i.e. on the subway, bus or other public transport) At school At work At home In between ac`vi`es While wai`ng in line 1% 4% 0% 9% 10% 13% 34% 29% 0% 5% 10% 15% 25% 30% 35% Figure 7 What Are Survey Respondents Watching? The most popular types of content that respondents watch on mobile TV and/or video services are sports (44 percent), TV episodes (26 percent) and news (20 percent), followed by movies (9 percent). (Figure 8) What category of video/tv programming do you watch most frequently on your mobile device? Other, please specify 1% Movies (e.g. Incep`on, The Social Network, Toy Story 3, etc ) TV Episodes (e.g. Glee, The Office, Survivor, etc ) News (e.g. CNN, MSNBC, etc ) 9% 26% Sports (e.g. MLB, NFL, NHL, etc ) 44% 0% 5% 10% 15% 25% 30% 35% 40% 45% Figure 8 Mobile TV/Video Challenges (Provider) 20 percent of respondents report that they have obtained TV programming or movies to view on their mobile device from a company other than their TV service provider or mobile operator, pointing to a broader set of competitive alternatives that these companies face in (Figure 9)

6 Have you obtained content such as movies or TV episodes for viewing on your mobile device through a source other than your TV service provider or mobile service operator (e.g. Nealix, Hulu, YouTube, etc )? No 80% Yes 0% 10% 30% 40% 50% 60% 70% 80% Figure 9 Building on the threat of alternative entertainment sources for TV service providers and mobile operators, 54 percent of respondents have no preference regarding from where they get their mobile TV or video service while 30 percent would choose their TV service provider and 13 percent would choose their mobile operator. (Figure 10) [Question 21] I would prefer to get my mobile TV and/or video service from the following source: Other 3% No preference 54% Mobile operator 13% TV service provider 30% 0% 10% 30% 40% 50% 60% Figure 10 The immediate popularity and advanced capabilities of ipads and similar tablet devices led to significant adoption in 2010, with 11 percent of respondents having purchased one.

7 Of this group of respondents, 68 percent have watched a TV program or full- length movie, and 52 percent watched more than 31 minutes of uninterrupted programming on the device. This provides further evidence that ipad and tablet owners are heavy users of entertainment services. (Figure 11) [Question 34] What is the greatest amount of uninterrupted fme that you have spent watching a TV program or full- length movie on an ipad or similar tablet device? 39% 13% 3% 8% 13% 24% Less than 5 minutes 6 to 10 minutes 11 to 20 minutes 21 to 30 minutes 31 to 60 minutes More than 60 minutes Figure percent of respondents prefer to get movies via a subscription service vs. a pay- per- movie model (21 percent) (Figure 12). For TV programs much of the same holds true with 31 percent of respondents preferring a subscription service and 16 percent preferring pay- per- episode. However, 50 percent of respondents do not have a preference on payment options for accessing TV programs. (Figure 13) When it comes to payment opfons for accessing Movies on your mobile device, which do you prefer? No preference 25% Purchase for download onto mobile device 11% Pay- per- episode (pay for each movie) 21% Subscrip`on service (e.g. unlimited movies for a set monthly fee) 44% 0% 5% 10% 15% 25% 30% 35% 40% 45% Figure 12

8 When it comes to payment opfons for accessing TV programs on your mobile device, which do you prefer? No preference 50% Pay- per- season (set fee to access all episodes of a program for an en`re TV season) 4% Pay- per- episode (pay for each individual TV program) 16% Subscrip`on service (e.g. unlimited TV programs for set monthly fee) 31% 0% 5% 10% 15% 25% 30% 35% 40% 45% 50% Figure 13 The Multi- Screen Entertainment Experience Is of Increasing Interest 48 percent of respondents said that they are interested in multi- screen capabilities that allow them to seamlessly switch between multiple devices, such as PCs, tablets and smartphones, when watching programs or movies. (Figure 14) How interested are you in a mulf- screen video service that lets you move from watching a program or movie on one device such as a laptop, pause it, and then seamlessly resume viewing it from where you lez off on another device such as your smart phone? Not at all interested Neutral Somewhat interested Interested Very interested 15% 14% 19% 33% 0% 5% 10% 15% 25% 30% 35% Figure 14 # # #

9 About QuickPlay Media QuickPlay Media is the leading provider of solutions for the distribution of premium video to portable wireless devices. Successfully used by the world s largest communications and media companies, QuickPlay s OpenVideo platform provides the most secure and flexible way for companies to deliver engaging multi- screen entertainment experiences. QuickPlay is headquartered in Toronto, with sales offices in London and throughout the US. For more information, please visit or on Facebook at Interested parties can also follow QuickPlay Media on Twitter

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