Mobile Viewing Trends Emerging Entertainment Technology
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1 Mobile Viewing Trends Emerging Entertainment Technology New Entertainment Technology (NET) Tracker (October, November, December) Copyright Screen Engine/ASI Any duplication, reproduction or usage of this document or any portion thereof without the written consent of the firm is prohibited.
2 The Ownership/Ubiquity Of Mobile Devices Are Evident Across Generations 2 Device Ownership: Generational Perspective Younger Millennials (13-24) Older Millennials (25-34) Gen X (35-49) Boomers (50-64) Base: Mobile Devices (Net) 94% 97% 95% 89% Laptop/desktop computer 92% 91% 93% 92% Smartphone 90% 91% 91% 84% Televisions (Net) 89% 90% 87% 87% Gaming Consoles (Net) 87% 83% 76% 45% Tablet 72% 81% 77% 63% Blu-Ray Players (Net) 66% 70% 72% 64% DVR 52% 50% 57% 52% Handheld game consoles 48% 45% 38% 16% Streaming Media Devices (Net) 46% 54% 50% 40% S10. How many of each of the following devices do you have or own in your household? If you do not own a device, please enter 0 in the box next to that device.
3 Millennials Are More Likely To View Digital Content On Mobile, 3 Especially On Smartphones; Many Gen X Viewing On Tablets Devices Used To Watch Digital Movies & TV Shows 82% 83% 79% n=996 62% 69% 63% 63% 64% 62% 58% 53% 42% 51% 51% 49% 49% 45% 46% 43% 40% 38% 34% 26% 13% 41% 42% 38% 35% 35% 36% 32% 31% n=688 n=807 n=509 31% 28% 24% 18% 24% 23% 20% 16% 9% 8% 5% 1% TV Screens (Net) Laptop/desktop computer Mobile Devices (Net) Smartphone Gaming Consoles (Net) Tablet Smart Televisions (Net) Media Streaming Devices (Net) Blu-Ray Players (Net) DVR Handheld game consoles S12. You mentioned that you have or own the following devices in your household. Which devices, if any, have you ever used to download or stream a digital movie, TV show or video game? Please select all that apply.
4 Slight Increases (Q1 vs. Q4) In Viewing Digitally Through Mobile Devices & Computers 4 80% 75% Devices Used To Watch Digital Movies & TV Shows Among Total Ent. Consumers 76% 75% 76% 78% TV Screens (Net) 70% 65% 60% 60% 62% 62% 59% 57% 63% 59% Laptop/Desktop Computer Mobile Devices (Net) 55% 54% 50% 45% 40% 35% 39% 38% 45% 41% 41% 40% 43% 42% Tablet Smartphone Sig.at 90% CI Compared to Q % Q1 Q2 Q3 Q4 [N=3,266] [N=3,124] [N=3,000] [N=3,000] S12. You mentioned that you have or own the following devices in your household. Which devices, if any, have you ever used to download or stream a digital movie, TV show or video game? Please select all that apply.
5 TV Remains The Screen For Digital Content Viewing; Millennials Are Starting To Gravitate To Mobile Devices 5 Screen Used To Watch Movies & TV Shows Among Those Own the Following Devices 71% 70% 76% n=989 56% n=680 n=802 n=507 23% 16% 14% 10% 16% 10% 10% 6% 10% 6% 5% 6% 5% 5% 2% 4% TECH2_2. Which of the following is your primary device to watch movies and TV shows?
6 TV Screens Still Prominent For Viewing Content, But On A Decline; Small, But Significant Increases In Mobile & Computer As Screens 6 80% 70% 60% Device Used To Watch Movies & TV Shows Among Those Own the Following Devices 74% 71% 69% 66% Television/Projector 50% 40% 30% Sig.at 90% CI Compared to Q % 10% 0% 15% TECH2_2. Which of the following is your primary device to watch movies and TV shows? #: Question was asked only for Feb-March % 14% 9% 9% 9% 5% 5% 4% 4% 4% 5% 5% Q1 Q2 Q3 Q4 [N=2,266 # ] [N=3,110] [N=2,986] [N=2, 978] 17% 11% 6% Laptop/Desktop Computer Mobile Devices (Net) Smartphone Tablet
7 Portability And Being Personal Viewing Device (Even At Home) Are Key Drivers In Mobile Viewing Behavior 7 Reasons For Watching On Mobile Device (Among Those Who Use Mobile Device As Viewing [N=356]) Ability to watch content anywhere I go (portable) 62% Can watch it in privacy when other HE devices are in use at home 55% Can download or stream the movies and TV shows for free 39% Can stream my movies or TV shows in HD on my smartphone 30% Keeps me preoccupied when traveling/commuting to work 28% To use as a second screen device when watching movies and TV shows at home To share the content with friends/family 19% 17% TECH2_4. Which of the following, if any, are reasons why you like watching movies and TV shows on your smartphone/tablet device?
8 Mobile Have Easier Access/More Entertainment Options, Thus More Competition & Less Preference For Watching Movies & TV Shows 8 Preference For Entertainment Options On Viewing Device (Top 2 Box Summary) Among Device Users Watch movies/tv shows on a sub streaming service 33% 39% Watch TV live during the scheduled programming time 9% 29% Watch recorded movies or TV shows on DVR 4% 20% Watch a movie or TV show on disc Watch movies/tv shows on free ad-supported websites 0% N/A 13% 15% 19% Watch movies on Video-On-Demand or Pay-Per-View 6% 11% Surf the Internet 10% 21% Browse a social media site Play a videogame (on disc) 0% N/A 10% 10% 27% TV/Laptop [n=2,469] Watch a movie or TV show bought/rent digitally Watch short videos online (e.g. YouTube) 7% 9% 9% 17% Mobile [n=356] Listen to music (streaming) 8% 16% Play a game/app online or through a download 6% 18% Listen to music on CDs 4% 9% Use apps in general 4% 12% TECH2_3. If you had some free time to use your [INSERT DEVICE FROM TECH2_2], in what order would you choose the following entertainment options? (Place a 1 next to your first option, a 2 next to your second option, etc. You may rank up to 5.)
9 Mobile Users Have Higher Movie Consumption Digitally And More Likely To Use Subscription Services 9 HE Movie Activity Incidence (1+ Net) Past 6 months Among Device Users Streamed from a subscription service 78% 82% Rented DVD/BD Rental Kiosk/walk-in rental store Purchased on DVD (excl. Blu-ray) 55% 58% 52% 54% Purchased on DVD or BD Combo pack Streamed from a free ad-supported service Paid to order on VOD or Pay-Per-View 43% 42% 42% 41% 39% 50% Rented digitally excl. subscription services) Purchased on Digital (to own) Used BitTorrent or other free way to stream/download content 33% 35% 32% 36% 28% 35% TV/Laptop [n=2,469] Mobile [n=356] Rented DVD/BD through a subscription service 25% 32% Purchased on 4K Ultra HD digital (to own) 15% 20% Purchased on 4K Ultra HD disc/combo pack 4% 4% S8. To the best of your recollection, in the past 6 months, how many movies, individual TV episodes, and entire TV seasons have you bought, rented, or watched in each of the following ways? *Incidence = 1+ HE activities in the past 6 months
10 Mobile Tend To Skew Younger, Single, With Lower Incomes; Tablet Especially Female 10 Total Ent. Consumers Mobile Mobile Index (To Total) Tablet Tablet Index (To Total) Smartphone Smartphone Index (To Total) (N=3,000) (N=356) (N=159) (N=197) Males % 46% 91 40% 79 50% 101 M % 9% % 163 8% 130 M % 24% % 74 30% 135 M % 13% 60 14% 62 13% 58 Females % 55% % % 99 F % 9% 145 9% 143 9% 145 F % 26% % % 123 F % 20% 89 27% % 63 Parents (kids >18) 37% 34% 92 34% 91 35% 93 Married 44% 34% 77 35% 79 33% 75 Income ($50K+) # 45% 33% 73 39% 87 29% 64 HE Activities (P6M Movies &TV) Digital (Net) Physical (Net) Rent (Net) Purchase (Net) (Indices in GREEN are greater than or equal to 120, indices in RED are less than 80) #: base did not include those who prefer not to answer
11 TV1. In a typical week, how many hours of television shows do you watch in each of the following ways? *Traditional TV Viewing = total hours of viewing TV traditionally such as live as it airs, recorded on DVR, and on-demand through cable/satellite box *OTT TV Viewing = total hours of viewing TV over the internet such as subscription streaming services, digitally purchased, websites, etc. Larger Screen Watch Much More Traditional TV; Mobile, Especially Smartphone, Watch More OTT TV 11 TV Show Viewing (Avg. Hours) Per Week Total Ent. Consumers (N=3,000) TV/Laptop [n=2,469] Mobile [n=356] Tablet [n=159] Smartphone [n=197] Live as it airs Subscription streaming service Recorded on DVR On demand through your cable or satellite set-top On DVD or Blu-ray Disc Ad-supported websites or apps Website/app of your cable/satellite provider Website/app of a broadcast network/cable Free on Internet without ads Digitally purchased through itunes, Amazon Online subscription aggregator of TV shows (e.g Traditional TV Viewing OTT TV Viewing
12 Higher Digital Entertainment Activity Especially Among Phone 12 ; Movie & TV Show hip At High Rates On Mobile Devices Average Entertainment Hours Per Week Emerging Mobile Traditional Digital Total Ent. Consumers [N=3,000] Visiting social network sites or using apps such as Facebook and Twitter Watching digital movies (bought, rented or streamed through a subscription service) PC gaming (computer games such as The Sims, Counter Strike) Mobile gaming (such as Pokemon Go, Minecraft Pocket, Clash Royal) Mobile [n=356] Tablet [n=159] Smartphone [n=197] Streaming sports through a paid subscription, such as Watch ESPN, NFL Network or MLB.com TOTAL DIGITAL Watching movies on DVD or Blu-ray Disc Console gaming (PlayStation, Xbox or Wii consoles) Watching sports through pay TV service, live or on DVR Portable video gaming TOTAL TRADITIONAL Watching movies and TV shows on a smartphone Watching movies and TV shows on a tablet TOTAL MOBILE Watching movies or TV shows in 4K Ultra HD Watching movies or TV shows in 3D Watching movies or TV shows in virtual reality Playing videogames in virtual reality TOTAL EMERGING GEN12. Thinking about all your entertainment activities, how many hours per WEEK do you typically spend doing each of the following activities?
13 Solid Consideration for 4K UHD Overall; Mobile Still Value Picture Quality & Have Slightly Higher Ownership & Purchase Urgency 13 Interest In Purchasing 4K UHD Hardware Among Those Who Are Aware of 4K UHD But Don t Own 4K UHD Hardware 4K UHD TV 4K UHD Blu-ray Player 4K UHD Device Ownership: Next 6 months (Net) Next year 21% 21% 25% 26% 28% 22% 21% 21% 23% 22% 22% 19% Among Those Aware of 4K UHD Total Ent. Consumers [N=2,374] 4K UHD TV 4K UHD Blu-ray player 27% 17% Next 2 years or more 42% 43% 32% 35% 36% 29% TV/ Laptop [n=2,004] 28% 18% Never 12% 11% 19% 22% 21% 29% Mobile [n=252] 31% 21% 4K UHD TV Total Ent. 4K UHD TV - Laptop/TV Laptop/TV 4K UHD TV - Mobile device Mobile Consumers n=1,724 n=1,434 n=167 4K UHD Blu-ray player Total Ent. 4K UHD Blu-ray player - Laptop/TV Laptop/TV Consumers n=1,960 n=1,648 4K UHD Blu-ray player - Mobile device Mobile n=191 UHD3. Which of the following next generation 4K UHD devices does your household currently have or own? Please select all that apply. UHD5. Please indicate when, if ever, you might consider purchasing these 4K Ultra-High Definition (UHD) hardware devices. Please select one answer in each row.
14 Smartphone Head Mounted Displays Have The Highest Awareness And Usage As Well As The Most Encouraging Purchase Intent 14 VR Head-Mounted Display & Purchase Intent (Among Total Ent. Consumers [N=3,000]) Sig.at 90% CI Awareness & Usage Total Awareness Usage Samsung Gear VR 65% 14% PlayStation VR 62% 13% Oculus Rift 54% 10% Google Cardboard 46% 11% LG 360 VR 34% 8% HTC Vive powered by SteamVR 32% 6% Daydream View by Google 31% 7% Razer OSVR powered by Sensics 25% 6% Starbreeze StarVR 22% 4% VR HMD Categories: Fove 20% 5% Smartphone HMD (Net) 68% 19% Gaming Console- Connected HMD (Net) 62% 13% PC- Connected HMD (Net) 60% 16% Handheld Kits** (Net) 46% 11% VR2 Thinking only about Virtual Reality (VR) head-mounted display devices and hardware, which, if any, of the following VR head-mounted display products have you used at least once or heard of before today? *Microsoft HoloLens: Mixed reality HMD; included for comparison **Handheld Kits (Net): VR viewing kit capable of watching simple 360 VR videos Purchase Intent In the next 6 months VR5. Does your household plan to purchase any of the following virtual reality or mixed reality head-mounted display devices? A year or more Google Cardboard 17% 11% Samsung Gear VR 14% 21% PlayStation VR 14% 17% Daydream View by Google 12% 14% LG 360 VR 12% 13% Oculus Rift 9% 16% HTC Vive powered by SteamVR 8% 12% Fove 8% 10% Razer OSVR powered by Sensics 8% 12% Starbreeze StarVR 7% 12% VR HMD Categories: Smartphone HMD (Net) 21% 30% Handheld Kits** (Net) 17% 11% PC- Connected HMD (Net) 15% 25% Gaming Console- Connected HMD (Net) 14% 17%
15 Key Takeaways 18 Understanding Mobile Viewing Trends & Opportunities Millennial Influence Mobile viewing trends are strongest among Millennials who lead the way for digital growth among all generations Opportunities Mobile viewers watch more movies and TV shows OTT and are voracious entertainment consumers always looking for more content to view wherever they are Shifting Tides The TV screen is still the most preferred screen, but consumer preferences continue to shift towards mobile viewing. Portability & Personalization Consumers are shifting towards mobile for ability to watch anywhere and with a more individual experience. Emerging Technology While mobile viewers enjoy the small screen, they are also early adopters who appreciate 4K picture quality and VR immersive experiences
16 16 THANK YOU! Mark Orne Senior Vice President, Digital Entertainment Screen Engine/ASI 1925 Century Park East Suite 950 Los Angeles, CA Direct Line:
17 Study Design 17 New Entertainment Technology (NET) Tracker Online survey of N=3,000 active entertainment consumers per quarter (n=1,000 per month) Q4 = October December 2016 Representative of the U.S. online population, balanced by: Age Gender Ethnicity Active Entertainment Consumers = Entertainment activities past 6 months *Report ran Statistical Significance testing at 90% confidence interval (quarterly among total). Numbers are reported only with above standard base size acceptable for research. **Slide with the below note indicates the question(s) include statistically significant data comparison from the previous quarter at 90% CI. May request additional comparisons if needed. Significantly greater than previous quarter at 90% CI Significantly less than previous quarter at 90% CI
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