The Sony channel New Channel Evaluation February 2013
Outline 1.Introduction 2.Main Findings in Detail i. Is there a need? ii. iii. iv. Could Sony do it? Do they like it and would they watch it? Would it drive subscriptions? 3.Conclusions & Implications
Introduction CLIENT LOGO HERE ON MASTER
Background and methodology Background SONY and FOXTEL have been in discussions regarding a channel for women. In February 2012, research was conducted to test the channel concept for propensity to watch, measure the appeal of the channel and proposed programming and identify any potential barriers to viewing and successful channel launch. Methodology D&M Research hosted an online survey with 500 Australian women aged 25-54 years. The survey was 15 minutes long and included visual stimulus in the form of a video showing elements of the SONY channel offering. To achieve a good spread of women, quotas were placed on age and location. The sample included 50:50 Pay TV Subscribers / Non subscribers, with the data weighted back to the population proportions in the analysis. The typical respondent was a women aged 40 years, married with children, living in a Capital City with a combined household income of around $90K.
Main Findings in Detail Is there a need? CLIENT LOGO HERE ON MASTER
Types of Shows or Programs like to Watch Women claim to watch and love Dramas, Soaps and Miniseries / Movies. 100% 90% Watched Favourites 80% 70% 60% 77% 76% 72% 72% 71% 71% 69% 50% 63% 40% 30% 44% 40% 39% 20% 35% 34% 39% 32% 32% 33% 39% 31% 30% 10% 25% 25% 15% 17% 6% 10% 15% 8% 11% 0% 4% 2% 1% Mini series / Movies Drama / Drama serials Sports Other (Specify Based on Genre QA1a. Which of these types of shows or programs do you watch? QA1b. And which
Top 3 Favourites by Show Type Just over 1 in 2 mentioned an actual Drama or Soap show in their top 3, and 1 in 3 as their most Favourite. 100% 90% 80% 70% 60% 50% 55% 48% Top 3 Favourite 40% 35% 30% 27% 26% 18% 18% 20% 15% 33% 11% 27% 8% 7% 5% 10% 4% 3% 1% 16% 13% 9% 7% 0% 5% 8% 6% 3% 2% 2% 1% 0% Net Dramas & Soaps Reality/ Celebrity Soaps/ Soap Operas Sports Based on Shows QA2. Which television shows were your favourite 3 programs or shows in 2012?
Watching soaps One in 4 women said they watch Soap Operas, among these: Top Soaps by Country USA = 63% B&B 49% of USA Soap Viewers AUS = 62% Home & Away 72% of AUS Soap Viewers 0.25 0.75; 100% All respondents n=502 Population = 4,520 Other = 9% UK = 17% Downton Abbey 34% of UK Soap Viewers N= 127 respondents who watch soaps Population = 1,145
Most watched Soaps in 2012 by Country The most watched USA Soaps are The Bold and the Beautiful (49%), Days of our Lives (17%) and Revenge (13%). The most watched Australian Soaps are Home & Away (72%), Neighbours (33%) and Packed to the Rafters (18%). The most watched UK Soaps are Downton Abbey (32%), Eastenders (24%) & Coronation Street (20%). USA Soaps Australian Soaps UK Soaps Base 83 Base 80 Base 23 Population 729 Population 722 Population 195 The Bold and the Beautiful 4 9% Home and Away 72% Downton Abbey 3 2% Days of our Lives 1 7% Neighbours 33% Eastenders 24% Revenge 13% Packed to the Rafters 1 8% Coronation Street 20% The Young and the Restless 1 0% Winners and Losers 4% Emmerdale 5% Bones 6% House husbands 9% Other 34% Parenthood 6% Offspring 3% Dont know 15% The Big Bang Theory 5% Underbelly 3% Dallas 4% Other 3% Greys Anatomy 4% Dont know 3% How I Met Your Mother 3% Days of our Lives 3% Other 11% Dont know 3% AUS = 62% USA = 63% UK = 17% N= 127 respondents who watch soaps Population = 1,145
Is anything missing? 7. in 10.. Australian women aged 25-54 think there is something missing from the current Australian television offering (71%)
What s missing in the current offering? When asked what, if anything, is missing from the current Australian offering, only 29% said Nothing/Don t know, indicating that for 71%, something is missing. Australian/local content 14% Movies/Mini Series/Better movies 12% Comedies/good comedy 8% Drama/Drama series 7% Variety 7% Documentaries/Nature/History 6% Quality programming/quality acting and writing/less cheap reality 6% DK/Nothing 29% 0% 5% 10% 15% 20% 25% 30% 35%
Is there a need? 1. Almost in 3.. Australian women aged 25-54 think the current Australian television offering needs a channel that caters more towards women (31%)
The current Australian offer Overall, Australian Women give the current television offer for women a 6/10. Extremely well 100% 90% 5% 6% 5% 10% 7% 11% 10 9 80% 70% 60% 50% 40% 30% 22% 6 36% 20% 6 34% 23% 6 37% 8 7 6 5 4 3 Bottom 3 Box 3-4 5 - Neither 6-7 Top 3 Box Average 20% 10% 27% 33% 24% 2 1 0% Total (N=502) Pay TV Subscribers (n=248) Non Subs (n=254) 0 Not at all well All respondents n=502 B2. How well do you think the current Australian television offering caters to women?
Who caters best Pay TV Subscribers vs. Non Subs Channel 7 is seen as catering best to women amongst Non subs, Lifestyle the best for Subs who also rate it higher. 30% 25% Rating 7/10 25% Rating 7.5/10 23% 27% 22% 20% 19% 15% 12% 13% 13% 12% 10% 5% 0% 9% 8% 6% 4% 5% 4% 2% 2% 1% 1% 0% Seven Nine Gem Arena Other Pay TV Subscribers (n=248) Non Subs (n=254) All respondents n=502 QB3. Which television station on either FTA or Pay TV do you think caters best to
Interest in channel dedicated to Soaps Around 2 in 3 women who watch soaps are interested in a channel dedicated to Soaps, including 1 in 3 highly interested. Interest is higher amongst Pay TV Subscribers. Extremely 100% 90% 80% 70% 60% 50% 40% 30% 16% 15% 16% 11% 11% 6 3% 8% 7 34% 14% 29% 27% 6 12% 10 9 8 7 6 5 4 3 Bottom 3 Box 3-4 5 - Neither 6-7 Top 3 Box Average 20% 10% 34% 40% 31% 2 1 0% Total Soap Watchers (n=127) Pay TV Subscribers (n=64) Non Subs (n=63) 0 Not at all N= 127 respondents who watch soaps Population = 1,145
Interest in a channel that focuses on family & relationships 7 in 10 women are interested in a channel that airs a variety of genres with a family and relationship focus. Among them, 4 in 10 are highly interested. Extremely 100% 90% 5% 6% 5% 8% 5% 9% 10 9 80% 70% 60% 50% 40% 30% 20% 16% 7 31% 39% 15% 29% 45% 17% 7 7 32% 37% 8 7 6 5 4 3 2 NETT Bottom 3 Box 3-4 5 - Neither 6-7 Top 3 Box Average 10% 1 0% Total (n=502) Pay TV Subscribers (n=248) Non Subs (n=254) 0 Not at all All respondents n=500 QB6. How interested are you in a channel that airs drama, comedies, reality, lifestyle
What would women build? If women could build their own TV Channel catering for women about 1/3rd of all programming would be dedicated to Drama and Soaps, Mini series and Movies. Daily Style Chat or Talk; 8% Documentaries/Nature/History; 8% Variety/Talent Shows; 5% Drama/Drama Serials; 12% Soaps/Soap Operas; 9% Net Drama/Soaps/Mini series/movies = 34% Reality/Celebrity Reality; 8% Mini series / Movies; 13% Crime/Law/Mystery; 10% Comedy; 12% Lifestyle; 16% Respondents were shown 10 feature genres as ingredients for a channel that catered predominantly for women and asked what percentage of each genre they would include if they were making the channel themselves. All respondents n=502
Main Findings in Detail Could SONY do it? CLIENT LOGO HERE ON MASTER
Spontaneous Associations with SONY Word Cloud There is a high free association of SONY with Quality (31%) and Televisions. PRE-CONCEPT ASSOCIATIONS * A Word Cloud is a visual depiction of the responses to this question. The frequency of mention is indicated by the font size of the word QC1. Thinking now about the brand SONY. When you think about the brand SONY, what comes to mind?
Could SONY do a TV Channel? Nearly 6 in 10 (57%) think SONY is capable of having a TV channel, and less than 1 in 5 (15%) disagree. PRE-CONCEPT Total (n=502) 16% 41% 28% 9% 6% 3.5 Pay TV Subscribers (n=248) 21% 34% 30% 10% 5% 3.6 Non Subs (n=254) 15% 43% 28% 9% 6% 3.5 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Strongly Disagree Partly Disagree Neither agree nor disagree Partly Agree Strongly Agree All respondents n=502 QC2. Thinking about the SONY brand, regardless of whether they currently do it or not, how
Main Findings in Detail Do they like it and will they watch it? CLIENT LOGO HERE ON MASTER
Visual Stimulus Respondents were shown a 30 second video featuring a selection of content from the SONY women s channel, accompanied by a stylised SONY logo and mood music. When the video ended, respondents were shown the 5 feature components again for 10 seconds each.
Overall appeal The SONY channel was well received, with 3 in 4 (75%) giving a positive score, including nearly (47%) giving a top 3 box score for overall. Very Appealing 100% 90% 80% 70% 60% 50% 40% 30% 20% 9% 8% 9% 8% 7% 8% 8% 8% 8% 7 28% 7 24% 29% 47% 52% 45% 7 10 9 8 7 6 5 4 3 2 Bottom 3 Box 3-4 5 - Neither 6-7 Top 3 Box Average 10% 1 0% Total (N=502) Pay TV Subscribers (n=248) Non Subs (n=254) 0 Not at all Appealing All respondents n=502
What do you like about the SONY Channel Top 3 Box All the good shows on ONE channel so you don't have to go fishing around looking for them!! The variety of women's shows that differ greatly though are all easy shows to get glued too. Variety / Range of Programs / Shows 31% General Content / Programs / Shows 29% The variety of shows. I could count at least 5 of the shows I particularly like. I like a lot of the shows mentioned (eg. grey's anatomy), and I like the sound of the new shows they would like to air. I also like that there would be a channel to play the soaps I miss! QD1b. What, if anything, do you particularly LIKE about the channel?
What type of person would the SONY Channel be? For 84%, the top personality trait associated with the SONY Channel is Loves to Entertain. SONY also has high associations with Accessible (79%), Friendly (79%), Fun (77%) and Modern (75%). 100% 90% 80% 84% 79% 79% 77% 75% 70% 60% 50% 40% 70% 70% 67% 66% 66% 65% 64% 63% 60% 60% 53% 52% 52% 50% 43% 43% 30% 28% 20% 10% 0% Loves to entertain Modern High quality Feminine Clever wit Sexy All respondents n=502
How would you describe the SONY Channel? The top description associated with the SONY channel is Light entertainment nothing too dark or heavy. Other high associations include: Offers great TV, particularly escapist drama and comedy (68%), Fun and addictive shows and Features shows with strong, relatable female leads (66%). 100% 90% 79% 80% 68% 70% 66% 66% 65% 62% 61% 60% 60% 59% 58% 60% 55% 54% 54% 52% 52% 50% 46% 44% 43% 40% 30% 35% 34% 32% 25% 21% 20% 10% 0% Light entertainment nothing too dark or heavy It s not a 24 hour soap channel Humour that is clever, never crass A guilty pleasure All respondents n=502
Channel Diagnostics Over 7 in 10 agree that they like the idea of this channel and that it would have programs they would like to watch. Average The channel would have programs and shows I would want to watch 76% 8% 16% 3.9 * I really like the idea of this channel 71% 13% 16% 3.9 It made me feel different about the Sony brand 63% 26% 9% 3.8 This channel would be for someone like me 65% 13% 21% 3.7 It looks really different to other channels 54% 19% 26% 3.4 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Disagree Neither Agree All respondents n=502 *Benchmark against best Fox Footy concept = 68%
Likelihood to watch 8 in 10 women are likely to watch the SONY Channel if it was available, with 6 in 10 highly likely to watch. Would definitely watch 100% 90% 80% 70% 60% 50% 40% 30% 8% 10% 7% 5% 5% 4% 7% 7% 7% 7 7 7 22% 19% 23% 59% 60% 59% 10 9 8 7 6 5 4 3 Bottom 3 Box 3-4 5 - Neither 6-7 Top 3 Box Average 20% 2 10% 1 0% Total (N=502) Pay TV Subscribers (n=248) Non Subs (n=254) 0 Not at all likely to watch All respondents n=502
Preferred name Almost2 in 3... Prefer the name SONY Entertainment
Preferred name Almost 2 in 3 (65%) chose Sony Entertainment as the preferred name 100% 80% 60% 65% 60% 47% 40% 29% 27% 27% 20% 18% 16% 11% 0% Sony Entertainment Sony Entertainment Television Sony Glow Sony Stella Sony Fling
Main Findings in Detail Will it build subscriptions? CLIENT LOGO HERE ON MASTER
Acquisition / Retention Propensity Foxtel This chart is based on the Foxtel propensity model of assessing net scores of 6-10 for Acquisition amongst Non-pay TV Subs, and 0-4 for Retention of Pay TV Subs after seeing and considering the Sony TV Channel concept. 50% Resting Propensity = prior to concept Concept Propensity = after concept 40% 30% 20% 27.0% 21.2% Resting Propensity Concept Propensity 10% 4.4% 4.3% 0% 0-4 Retention / Churn 6-10 Acquisition All respondents n=502
More on Retention Firstly the Sony Concept impacts positively on the retention of those most vulnerable. Interestingly, mapping Resting Propensity with Concept Propensity for RETENTION, shows quite significant upward lifts for the most vulnerable i.e. all resting scores of below 6 increase. Definitely 000 s 10 9 8 7 6 5 4 6 6 5 7 7 6 7 7 8 8 9 700 600 500 400 300 Population CONCEPT PROPENSITY 3 200 Not at all 2 1 0 100 0 Resting Propensity = prior to concept Concept Propensity = after concept RESTING PROPENSITY Definitely All Pay TV Subs n=248
Where does behaviour change? But isn t behaviour more likely to occur at the extreme ends of the propensity scale? What would the net impact on subscriptions look like using a conventional Top 3, Bottom 3 Box Approach? Churn Risk Indifferent Acquire Potential 0 1 2 3 4 5 6 7 8 9 10 Churners Passive Acquirers Most likely to Churn Less likely to Churn Less likely to Acquire Most likely to Acquire
Top 3 box propensity model An alternative Top 3 (Acquisition) - Bottom 3 (Retention) model shows; A 1.2 percentage point decrease in the Retention / Churn proportion; and A 1.7 percentage point increase in the Acquisition proportion, 10% 9% 8% Net 3 percentage point increase in subscriptions (5.4 Acquire 2.4 Churn) 7% 6% 5% 4% 3% 3.2% 2.4% 3.7% 5.4% Resting Propensity Concept Propensity 2% 1% 0% 0-2 Retention / Churn 8-10 Acquisition All respondents n=502
Projected Subscriptions Using past OZTAM data as the base shows a realistic survey estimation of future subscriptions using the resting propensity (29.3%). Adding the Sony Channel to the subscription environment shows a result that is better than the baseline (31.8%). 35% PAY TV Penetration Estimates & Projections (Using Top 3 / Bottom 3) 31.8% 30% 29.6% 29.8% 30.1% 30.1% 29.9% 29.7% 29.2% 29.2% 28.8% 29.3% 25% Qtr 1 '11 Qtr 3 '11 Qtr 1 '12 Qtr 3 '12 Qtr 1 '13 Qtr 1 '14 Sony Channel Proj (Based on women only) QTR 1 2014 Prediction = QTR 1 2013 (28.8%) + (Acquire (3.7%) - Churn (3.2%) )
The Way Forward Conclusions and Implications CLIENT LOGO HERE ON MASTER
Is there a need? What s Missing 7 in 10 women think that something is missing from the current Australian TV offering. What's missing: Australian / Local Content (14%), Quality Movies / Mini Series (12%), Quality comedies (8%), Drama (7%) and Variety (7%). Catering to Women Women give a 6 out of 10 to the current efforts of TV to cater to women, including nearly 4 in 10 (37%) who rate it a 5 out of 10 or less. There is clearly plenty of room for an improved offer. Overall Channel 7 is seen as catering best to women, although Lifestyle is seen as #1 amongst Pay TV Subscribers. Is there a need? When asked almost 1 in 3 (31%) women aged 25-54 think there is need for a channel that caters more towards women. CONCLUSION: Australian women do feel that something is missing from TV, and rate the current attempts to cater to women as average at best. Subsequently many think there is room for a channel more dedicated to their gender.
Could SONY do it? SONY & TV A majority (57%) of women agree that SONY could do a TV Channel. SONY already has a strong association with QUALITY and TVs. SONY Personality Personality wise - the Sony Channel itself was seen as: Loving to entertain (84%), Accessible (79%), Friendly (79%), Fun (77%), and Modern (75%). In addition it was seen as providing: light entertainment, not too dark or heavy (79%), a great escape (68%), with fun and addictive shows (66%) and strong relatable female leads (66%) but importantly still accessible to a broader audience (60%). Could SONY do it? SONY currently is more associated with electronics and in particular TVs, but can clearly stretch into the realm of a TV channel as evidenced by its acceptance and ability to demonstrate a love of entertainment. CONCLUSION: SONY is well positioned to deliver a TV channel to the Australian female market and would benefit from its existing quality and entertainment heritage.
Would they watch it? Is it Appealing? The SONY Channel as presented has great appeal with a mean appeal score of almost 7 out of 10. Almost 1 in 2 (47%) women aged 25-54, gave the SONY Channel an appeal score of 8 or more! Do they like it? Overall the SONY Channel was really liked (71%). The SONY Channel was also seen as: having attractive programs (76%), being relevant (65%), and differentiated (54%). Will they watch? Watching propensity is high assuming availability with an average score of over 7 (where 10 is definitely watch) a majority (59%) gave a watch propensity score of over 8 out of 10. CONCLUSION: The SONY Channel as presented is well liked, has great appeal and would be watched if available.
Would it drive subscriptions? Does it Retain? Although on average a fairly flat effect on retention scores, the SONY channel does provide marked uplift in intended retention amongst those currently most vulnerable. Using a bottom 3 box approach to retention (i.e. those most likely to churn) shows a 1.2 percentage point decrease in the Retention / Churn proportion. Does is acquire? The SONY channel also has the potential to attract new subscribers. Using the top 3 box approach to acquisition (i.e. those most likely to subscribe) shows a 1.7 percentage point increase in the Acquisition proportion. Does it build Subs? Based on a calculation of Acquisitions minus Churns, shows a potential 3 percentage point increase in Subs using the top 3, bottom 3 approach. CONCLUSION: The SONY Channel as presented has potential to both Retain and Acquire subscriptions.
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