Value, Engagement and Trust in the era of Social Entertainment

25th May 2011

What makes entertainment social?

The key is in the sharing [] A few years ago it would have been rude to be on your laptop whilst watching a movie with friends....now it's part of that social experience

In the U.S., Technology Holds the Top Spot Over Four Years, While Entertainment Ranks Towards the Bottom
Trust in Industries among the informed publics audience U.S. 2008
1. 2. Technology Biotech/life sciences Banks Retail 78% 73% 71% 67% 64% 62% 7. 7. Health care industry Entertainment Pharmaceuticals 58% 8. Pharmaceuticals 39% 7. 8. 9. Energy 50% 1. 2. 3. 4. 5. 6. 6. Automotive

2009
Technology Biotech/life sciences Food Consumer packaged goods manufacturers Retail Health care industry 72% 60% 56% 1. 2. 3. 4. 5. 6.

2010
Technology Food Biotech Retail Consumer packaged goods manufacturers Health care industry 81% 64% 62% 61% 57% 50% 1. 2. 3.

2011
Technology Food and beverage Brewing and spirits Biotech Telecommunications Retail Automotive Consumer packaged goods OTC personal health care products 73% 54% 53% 53% 51% 51% 49% 48% 46% 43% 39%

3.
4. 5.

4.
5. 6. 7. 8. 9.

53%
47% 41%

Consumer packaged goods manufacturers

Energy
Banks

39%
36% 35% 32% 29% 27%

Pharmaceuticals
Automotive

45%
45% 41% 33% 32% 32%

8.
9.

55% 55%

10. Energy 11. Entertainment 12. Pharmaceuticals 13. Insurance 14. Financial services

9.

10. Entertainment 11. Automotive

10. Entertainment 11. Banks

38%
26% 25% 25% 22%

10. Energy 11. Insurance 12. Media companies

54%
50% 48%

12. Insurance
13. Media companies

12. Insurance
13. Media companies

15. Banks 16. Media

Results from Edelman Trust Barometer A30-45. [TRACKING] Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each of the following industries to do what is right. Again, please use a nine-point scale where one means that you DO NOT TRUST THEM AT ALL and nine means that you TRUST THEM A GREAT DEAL. (Top 4 Box) Informed publics ages 25-64 in the US

Methodology
Methodology: Custom Online Survey Target audience: Adults ages 18 - 54 Geographies: US & UK markets Sample Sizes & Field dates:
US: 517 respondents surveyed from February 22 24, 2011 UK: 504 respondents surveyed from February 24 27, 2011

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Current Behaviors

Trust in the entertainment industry has generally decreased over the past five years
How much trust in the entertainment industry in the US has changed over 5 years?
32% 28% 23% 17%

2010 Net "trust" in the UK entertainment industry

2011 Net "trust" in the US entertainment industry

*

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Q3. To what extent do you trust business in the entertainment industry to do what is right?

The internet continues as second most often turned to source of entertainment in US

US 2010 US 2011

58%

47%

32% 32%

28%

6%

TV

INTERNET

FILM
Base: US respondents (n=517) Q5. What source of entertainment do you turn to most often? [select one]

More than half in the US consider social networking sites a form of entertainment
45-54 30-44 18-29 TOTAL
56% 42% 35% 34% 46% 70% 57%

24%
12% 8% 6% 9%

Dont know
8.75%

No
33.75%

Yes
57.25%
Base: UK 2011 respondents: (n=504); US 2011 respondents: (n=517) Q18. Do you consider social networking sites to be a form of entertainment?

Respondents report spending more time with the internet and social media for their entertainment

63% 56% 49% 40% 23% 26% 30%

24%

23%

27% 16% 15%

Television

Movies

Internet

Social Media

Music

Video Games

UK

US
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Base: UK 2011 respondents: (n=504); US 2011 respondents: (n=517)

Q8. In the past year, do you believe you are spending more, less or the same amount of time with the following types of entertainment?

More time being spent across multiple devices. Audience attention is divided across screens.
Percentage of people spending More Time
59% 53%
53% 52% 49% 52% 38% 36% 26% 29% 25% 29%

Laptop

My Home / Mobile Phone Work Computer

DVR

MP3 Player

Television

UK

US
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Base: UK 2011 respondents: (n=504); US 2011 respondents: (n=517) Q9. In the past year, do you believe you are spending more, less or the same amount of time using the following devices to access media?

Consumers are interested in additional content that is connected across platforms

I would like to use my computer to access additional online content related to my entertainment
I would like to use my mobile phone or device to interact with entertainment

52%
52% 31% 29% 30% 25% 28% 30% 27% 23%

I would like to use social networks such as Facebook to interact with entertainment I would like to see entertainment provide me with the ability to interact real-time with the content I like being able to interact with entertainment such as being able to vote for my favorite contestants on reality TV

UK US

Base: UK 2011 respondents: (n=504); US 2011 respondents: (n=517) Q12. Next, wed like to ask about your preferences for interacting with entertainment. How would you indicate your level of agreement with the following statements?

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Entertainment value

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Perception of value provided by entertainment sources has dropped, but social networks remain steady
US Entertainment Sources: Providing Value % Providing Very Good or Excellent Value 40% 37% 37%

34%

32%

32%

31%

18% 14% 14%

15%

14%

Social Film Producers / Music Companies Networking Sites Movie Studios

Gaming Companies

Cable Television Providers**

2010

2011

Satellite Television Providers**

*NOTE: Data unavailable for years 2007 and 2009. Data from 2008 includes respondents ages 18-34 only. **NOTE: Data for 2008 is for TV Broadcasters/Producers Q11. Thinking about the entertainment provided by each of the following entities, do you think in general they provide excellent, very good, good, fair or poor value? Base: US respondents (n=517)

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Free or paid?

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US Entertainment spending year on year is consistent

US Entertainment Spending Per Month (Self-Reported)
25%

23% 20% 21%

16% 14% 12% 9% 6% 9% 9% 11% 12% 14%

Nothing

$1 - $10

$11 - $25

$26 - $50 2010* 2011

$51 - $75

$76 - $100

More than $100

Base: US respondents (n=517)

*NOTE: Data unavailable for years 2007-2009 Q13. In a typical month, about how much do you personally spend on purchasing entertainment?

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Personal enjoyment and visual/sound quality are even more important now than in 2010 as US purchase drivers
The hours of enjoyment the entertainment will provide

72%

76%
66% 77% 77% 85% 76% 91%

Being able to purchase the entertainment easily

Excellent visual or sound quality of the entertainment

My personal enjoyment of the entertainment

US 2010 US 2011
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Base: US respondents (n=517)

Q10. Below are some things people might take into consideration when purchasing entertainment. How important are each of the following things to you, when you are considering making an entertainment purchase extremely important, somewhat important, neither important nor unimportant, not too important or not at all important?

Being one of the first to have new entertainment has dropped dramatically in importance
The number of devices with which I can access the entertainment

58%
48% 39% 17% 55% 42% 44% 31%

Being one of the first to have new entertainment

Having unrestricted ability to share or make copies of the entertainment legally

Popularity of the entertainment

US 2010 US 2011
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Base: US respondents (n=517)

Q10. Below are some things people might take into consideration when purchasing entertainment. How important are each of the following things to you, when you are considering making an entertainment purchase extremely important, somewhat important, neither important nor unimportant, not too important or not at all important?

More US respondents are willing to view / listen to advertising to get free entertainment; but wont compromise on privacy
What are consumers willing to sacrifice for free entertainment?
Advertisement-free entertainment The ability to share the entertainment The ability to access the entertainment on multiple devices The ability to access the entertainment on the device of my choice Visual or sound quality of the entertainment Privacy of my personal information

47%

60%
43% 53% 40% 45% 29% 27% 14% 10% 13% 7% 16% 11%

None of the above

US 2010 US 2011
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Base: US respondents (n=517) Q17. Which of the following would you be willing to sacrifice in order to get your entertainment for free?

Overwhelmingly the move from free to paid/subscription models is received negatively

Impact of moving from free to paid/subscription models for entertainment
56% 49% 35%

UK

US

32%
12%

10%

3%

2%

1%

1%

Very negatively

Somewhat negatively

Neither positively nor negatively

Somewhat positively

Very positively

Base: UK 2011 respondents: (n=504); US 2011 respondents: (n=517) Q14. If your favorite media companies started requiring a paid subscription for previously free entertainment, how would this impact your feelings toward those companies?

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So what does this tell us?

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Movie studios and Network TV companies are top of mind in US Entertainment

Top of Mind Entertainment Companies (by Category)

*NOTE: Data has been optimized for visual presentation and is different from the actual frequency distribution.
Base: US respondents (n=517) Q2. When you think about the entertainment sector, which companies come to mind? Please list any companies that you can think of.

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Entertainment companies must embrace the three points of attention

Entertainment Content

Social Entertainment Technological Device Social Conversation

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