ThinkNow Media How Streaming Services & Gaming Are Disrupting Traditional Media Consumption Habits 2018 Report 1
ThinkNow Media What is it? ThinkNow Media is a nationwide survey that looks at Americans media habits and attitudes. The study looks at Americans as a whole and by key race/ethnic segments. Methodology Survey Method Online via ThinkNow Research s Omnibus Study Field Timing April, 2018 Regional Coverage National Screening Criteria 18-64 years of age Base Sizes 303 Hispanics 515 Hispanics 1,311 Total 258 Non-Hispanic Whites 258 African- Americans 280 Asian- Americans 2
Who We Are An authority on creating and managing research products that help clients gather insights about rapidly changing consumer segments. Conduct online, behavioral, in-person and telephone research. Research experience specifically in the Hispanic, African American, Asian and Total markets. Experience in hard-to reach demographic sub-groups. Only full-service market research company that owns & operates an inhouse Hispanic panel. Servicing Fortune 500 clients, ad agencies, nonprofits and other market research companies. 3
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Summary of key findings Use of Cable TV has declined significantly, with on-demand and streaming services gaining in preference Live TV watching has declined significantly; everyone contributing to this decline No one is benefiting significantly from the decline in Live TV watching Netflix gained the most (driven by Boomers), but it s a nominal increase. More are watching Netflix than live TV, but Live TV s most often conversion rate is stronger (i.e., 64% of those who watch Live TV say it is the method they use most often, compared to 43% for Netflix.) African Americans stand out across several metrics among the ones using less cable TV and more Netflix, highest interest increase in exclusively streaming; binge-watching more than others. 5
Digital cable is still the most popular type of TV service, but it s now nearly on par with Satellite TV after experiencing a significant decline in the past year. Cable TV also declined significantly and is now on par with Fiber Optic TV. Type of TV Service Received at Home 2017 vs 2018 38% 2017 2018 29% 28% 26% 24% 19% 17% 17% 9% 10% Digital Cable (more channels than Cable TV) Satellite TV Fiber Optic TV (Verizon FiOS, AT&T U-verse) Cable TV (non-digital) Broadcast (antenna) only M1. What type of TV service do you receive in your home? Arrows indicate statistically significant difference (95% confidence) 6
Digital cable and Satellite TV lead as the most popular TV services received at home. These services lead across all ethnic segments, except Asians, who are as likely to receive Satellite TV as other services. Digital Cable declined across all segments, except Asians. Cable TV declined across all. Type of TV Service Received at Home by Ethnicity Total Market Hispanics (A) Whites (B) African-Americans (C) Asians (D) Percentage Point Change Since April 17-9 -10-10 -10-1 -2 +1-2 -1-3 -2-2 0-2 0-7 -10-6 -8-9 +1 +3 +2-5 +2 29% 28% 31% 31% 28% D 26% 27% 28% D 26% D 14% 20% 17% 16% 16% 17% 14% 14% 18% 18% 17% 10% 13% C 10% 7% 15% C Digital Cable (more channels than Cable TV) Satellite TV Fiber Optic TV (Verizon FiOS, AT&T U-verse) Cable TV (non-digital) Broadcast (antenna) only M1. What type of TV service do you receive in your home? 7
Live network TV is losing ground as the most often choice for watching TV programming. The gap versus Netflix, which ranks second to live TV, is significantly narrower (6 points in 2018 versus 23 points in 2017.) Methods of Watching TV 2017 vs 2018 All Methods Most Often Method 2017 68% 2017 45% -20-14 2018 48% 2018 31% Live TV/Network TV 2017 58% 2017 22% 2018 61% +3 2018 26% +4 M2. What are all the ways that you watch TV programming? M3. How do you watch TV programming most often? Total Market (n=1,311) 8
As of April 2018, live TV continues to top the list of how TV programming is watched most often. However, that lead is narrow as on demand watching continues to gain ground. Netflix ranks second to live TV and has a wide lead over other options, particularly DVR and YouTube. Hispanic is the only segment who reports favoring Netflix over live TV the result of a significant decline in watching live TV and a significant increase in watching Netflix. Most Often Method of Watching TV by Ethnicity Change versus 2017 Hispanics (A) Whites (B) African- Americans (C) Asian- Americans (D) Live/when the show airs on network TV 31% -14 27% 32% 32% 32% Netflix 26% +4 35%BCD 25% 24% 21% Recorded via a DVR 11% +1 9% 13% 8% 8% YouTube 10% +1 11% 8% 15%B 19%AB Amazon Prime 4% 0 3% 5% 2% 6% Hulu 4% +1 3% 5% 5% 3% Roku 3% +1 3% 3% 4% 3% DVD (rented or purchased) 2% _1 1% 2% 2% 1% M3. How do you watch TV programming most often? 9
Changes in the decline of live TV as the most often TV watching method is driven by African Americans and Hispanics, followed by Whites. These segments also lead the increase in Netflix usage. Most Often Method of Watching TV 2017 vs 2018 (Percentage Point Change from 2017 to 2018) Hispanics Whites African-Americans Asian-Americans 17 points 13 points 22 points 6 points Live TV/Network TV 11 points 3 points 7 points 2 points M3. How do you watch TV programming most often? 10
Streaming services like Netflix, YouTube and Amazon Prime are becoming just as popular as live TV. In 2018, significantly more Hispanics watch Netflix and fewer watch live on network TV than the previous year. All Methods of Watching TV Programs by Ethnicity Change versus 2017 Hispanics (A) Whites (B) African- Americans (C) Asian- Americans (D) Netflix 61% +3 71%BCD 59% 63% 55% Live/when the show airs on network TV YouTube 48% 45% -20 43% 50% 47% 49% -5 53%B 38% 56%B 58%B Amazon Prime DVD (Rented or purchased) Recorded via a DVR Hulu 33% 30% 27% 24% +2 32% 34% 29% 39%AC -4 27%D 35%ACD 22% 21% -11 22% 29%D 27%D 17% -3 28%D 23% 29%D 17% Roku 16% +4 16% 16% 14% 15% Apple TV Google TV 7% 5% -4 8% 7% 7% 7% -3 8% 5% 6% 6% M2. What are all the ways that you watch TV programming? 11
The popularity of TV streaming service is driven by Millennials. Significantly fewer Gen X and Boomers watch TV programs when the show airs on network TV. All Methods of Watching TV Programs by Age Millennials 18-34 (X) Gen X 35-54 (Y) Boomers 55-64 (Z) Live/when the show airs on network TV 35% 53%X 63%X Netflix 75%YZ 56% 45% YouTube 61%YZ 40%Z 23% Amazon Prime 38%Y 36%Y 20% Hulu 36%YZ 21%Z 11% DVD (Rented or purchased) 32% 32% 24% Recorded via a DVR 23% 31% 26% Roku 16% 18% 12% Apple TV 11%YZ 5% 4% PlayStation Vue 6%Z 4%Z 1% Google TV 6%Z 7%Z 1% M2. What are all the ways that you watch TV programming? Millennials (n=597), Gen X (n=476), Boomers (n=238) 12
While everyone seems to be contributing to the decline in use of Live TV, Boomers are driving Netflix s increase. YouTube s decline is driven by Whites and Millennials. All Methods of Watching TV Programs by Age and Ethnicity, 2017 vs. 2018 (Percentage Points Change from 2017 to 2018) Millennials 18-34 Gen X 35-54 Boomers 55-64 Live/when the show airs on network TV -16-22 -21 Netflix -2 +2 +13 YouTube -9-5 -1 Hispanics Whites African- Americans Asian- Americans Live/when the show airs on network TV -21-19 -26-6 Netflix +10 +9 +8 +6 YouTube -3-9 +6-1 M2. What are all the ways that you watch TV programming? Millennials (n=597), Gen X (n=476), Boomers (n=238) 13
Binge viewers prefer to watch an average of 3 back-to-back programs. African Americans tend to watch more, with one-third reporting they watch at least 5 episodes in one sitting; Hispanics follow. Average Number of Shows Would Prefer to Watch in one Viewing 4.2 3.4 3.7 3.1 3.0 Total Market Hispanics (A) Whites (B) African-Americans (C) Asians (D) % who watch 5+ episodes in one viewing 18% 22% 14% 33%BD 12% M5. Ideally, about how many episodes of your favorite show would you prefer to see in one viewing? 14
Binge viewers are watching fewer episodes in one viewing, except for African Americans. Average Number of Shows Would Prefer to Watch in one Viewing 2017 2018 3.7 3.8 3.4 3.7 3.6 3.1 3.9 4.2 3.5 3.0 Total Market Hispanics (A) Whites (B) African-Americans (C) Asians (D) M5. Ideally, about how many episodes of your favorite show would you prefer to see in one viewing? 15
Many report that they have binge-watched at some point. More Asians are binge-watching now than a year ago. % Who Have Watched Entire Season of Favorite Show Over a Weekend or Week Total Market Hispanics (A) Whites (B) African-Americans (C) Asians (D) Percentage Point Change Since April 17-2 -3-6 +5 +7 +1 +5-1 0 +8 54% 57% 50% 66% ABD 50% 69% 78% BD 65% 76% B 69% Watched entire season in one weekend Watched entire season in one week M1. What type of TV service do you receive in your home? 16
By 2020, 4 out of 10 consumers will be streaming most or all their TV shows online. African Americans, however, are adopting at a slower rate than other segments How Likely to Watch TV in Near Future by Ethnicity Exclusively/Mostly Online/Streaming 39% 43%C 40%C 31% 47%C Exclusively online/streaming 12% 10% 13% 12% 12% Mostly online/streaming 27% 33% 27% C C 19% 35% C Equally 24% 28% B 21% 30% B 26% Mostly on cable/satellite 19% 18% 20% 18% 14% Exclusively on cable/satellite 17% 10% A 19% 21% AD 13% Total Market Hispanics (A) Whites (B) African Americans (C) Asians (D) M8. Thinking about the near future (2-3 years from now), how do you see yourself watching TV programming? 17
Interest in watching TV programing online or streaming has increased in the past year. African Americans report the highest increase, with the proportion who expects to watch exclusively online/streaming increasing to levels on par with everyone else. How Likely to Watch TV in Near Future by Ethnicity Exclusively/Mostly Online/Streaming 39% +7 43%C +10 40%C +7 31% +7 47%C +8 Percentage points change versus year ago Exclusively online/streaming 12% +4 10% +2 13% +4 12% +9 12% +4 Mostly online/streaming 27% 33% 27% C C 19% 35% C Equally 24% 28% B 21% 30% B 26% Mostly on cable/satellite 19% 18% 20% 18% 14% Exclusively on cable/satellite 17% 10% A 19% 21% AD 13% Total Market Hispanics (A) Whites (B) African Americans (C) Asians (D) M8. Thinking about the near future (2-3 years from now), how do you see yourself watching TV programming? 18
More people perceive TV watching online/streaming as the future of television; cost seems less of barrier to watching via this format. Fewer report variety of programming as a reason for selecting a TV watching format, suggesting that there is consistency of offering across formats. Spanish-language programming is not a driver to selecting cable/satellite TV. TV Programs Watching Preference Reasons Why Prefer Online/Streaming Reasons Why Prefer Cable/Satellite I can watch programs on my own schedule Less expensive than cable/satellite I can watch back-to-back episodes of the same program 51% 50% 66% 65% 74% 62% I am used to it/no need to change More variety of programming than online 38% 24% 62% 55% It's the future of TV Certain shows I like are only available online I prefer it for my children 7% 6% 39% 47% 37% 24% 2017 2018 Sports programming not available online Spanish-language programming 18% 14% 16% 4% M8a & M8b. What are the reasons why you see yourself watching mostly or only cable/satellite versus online streaming? Among those who said online/streaming (n=536), Among those who said cable/satellite (n=422) 19
4 out of 10 Americans play a video game on a mobile device. Gaming consoles and computers are on par with each other, and trail behind mobile devices by about 10 points. About one in five use their game console for other forms of entertainment such as movies or TV programming. Video Game Related Activities Done in Past 12 Months Hispanics (A) Whites (B) African- Americans (C) Asian- Americans (D) Played a video game on a mobile device 43% 47% 42% 43% 44% Played a video game on a console video gaming system Played a video game on a laptop or desktop computer 30% 33% 39% 28% 40% 34% 30% 29% 34% 35% Used a gaming console to stream other forms of entertainment Watch others play online games live Watch recorded videos of others playing video games Played a video game in an arcade 19% 17% 15% 15% 24% 19% 18% 18% 19% 16% 21% 17% 15% 15% 17% 19% 15% 15% 13% 14% Attend live events to watch others play video games 4% 5% 3% 7% 5% None of the above 33% 29% 36% 28% 31% M9. Which of the following video-game related activities have you done in the past 12 months? 20
Mobile devices continue to be the most popular way to play a video game, with a wider lead over consoles and computers, which experienced a significant decline. Overall, video game related activities declined significantly in the past year. Video Game Related Activities Done in Past 12 Months 2017 2018 Played a video game on a mobile device 46% 43% Percentage Point Difference (2017 to 2018) -3 Played a video game on a console video gaming system Played a video game on a laptop or desktop computer 39% 41% 33% 30% -6-11 Driven by non-hispanic Whites, followed by Hispanics and African Americans Used a gaming console to stream other forms of entertainment Watch others play online games live Watch recorded videos of others playing video games 25% 20% 19% 19% 17% 15% -6-3 -4 Driven by non-hispanic Whites. In contrast, Hispanics report a 5point increase. Played a video game in an arcade 17% 15% -2 Attend live events to watch others play video games 10% 4% None of the above 24% 33% -6 +9 Driven by non-hispanic Whites and African Americans M9. Which of the following video-game related activities have you done in the past 12 months? Arrows indicate statistically significant difference (95% confidence) 21
The use of multiple devices at one time continues to be very common. No change versus 2017 in the proportion who use multiple devices daily or more often. Asians continue to be the least likely to use multiple devices at once. Frequency of Using Multiple Devices at a Time Daily or more 63% 66%D 64% 63% 55% Several times a day About once a day 47% 52% D 46% 51% D 37% A few times a week About once a week I rarely do this Never 16% 13% 3% 11% 9% 14% 13% 4% 12% 5% 18% 12% 13% 15% 4% 2% 3% 11% 9% 19% ABC 10% 10% Total Market Hispanics (A) Whites (B) African Americans (C) 18% 16% 6% A Asians (D) M10. How often do you use/view more than one device at a time? 22
Demographics 23
Sample Profile Hispanics (A) Whites (B) African-Americans (C) Asian-Americans (D) Base size 515 258 258 280 Female 49% 50% 52% 53% Age Millennials 26% 51% 16% 7% Gen X 14% 68% 12% 6% Boomers 11% 71% 13% 5% % Married 42% 49% 28% 52% % with one ore more children 41% 28% 35% 32% %Employment 59% 63% 56% 60% % College Graduate or More 35% 44% 28% 64% % Foreign Born 40% 6% 6% 59% % Parent Foreign Born 76% 19% 19% 88% Median Annual HH Income $46K $64K $38K $84K M10. How often do you use/view more than one device at a time? 24