© 2015 Forrester Research, Inc. Reproduction Prohibited2 We work with business and technology leaders to develop customer-obsessed strategies that drive growth.

April 28, Call in at 10:55 a.m. Eastern time WEBINAR US Consumer Video-Viewing Insights: A Technographics ® Quarterly Data Flash Timothy Wikert, Senior Data Insights Manager

© 2015 Forrester Research, Inc. Reproduction Prohibited4 Agenda › What are we seeing in video? › Understanding consumers by video content they watch › Understanding consumers by how they watch

© 2015 Forrester Research, Inc. Reproduction Prohibited5 Consumers can watch in more ways than ever

© 2015 Forrester Research, Inc. Reproduction Prohibited6 Base: US online adults (18+) online weekly or more; Source: Forrester’s North American Consumer Technographics ® Online Benchmark Surveys, 2010 to 2014 Half of US online adults watch online TV at least weekly 12% of US online adults say they spend more time watching TV online than on a TV.

© 2015 Forrester Research, Inc. Reproduction Prohibited7 Why do consumers watch video online? Base: US online adults (18+) online weekly or more who watch online video in a typical month; Source: Forrester’s North American Consumer Technographics ® Media And Advertising Online Benchmark Recontact Survey, 2014 What Where When › To watch on my own schedule: 57% › So I can watch it anywhere: 34% › To catch up on an episode I missed of a show: 42% › To try out shows I haven’t watched before: 31% › To access shows that are only available online through a streaming service: 23% “I stream TV and movies using Netflix. I use it a lot more... because it is so much more accessible now. Now, I can watch on 3 or the 4 TVs in my house, on my Galaxy S5 and on my iPad mini.” (Female, years old)

© 2015 Forrester Research, Inc. Reproduction Prohibited8 Understanding consumers’ video habits in an audience-centric environment › Going beyond demographics › Technology lends color. › How to reach and engage with viewers

© 2015 Forrester Research, Inc. Reproduction Prohibited9 Professional content – long form Includes full-length episodes of TV shows/other TV programming. Looking at consumers by content preference Base: US online adults (18+) online weekly or more who watch video in a typical month; Source: Forrester’s North American Consumer Technographics ® Media And Advertising Online Benchmark Recontact Survey, 2014 DATA SHOWS DIFFERENT CONSUMERS GRAVITATING TO THREE TYPES OF VIDEO CONTENT Professional content – short form Includes professional/brand-centric promotional content, clips/ trailers of movies, or TV shows/other TV programming. Amateur/user-generated content Includes any non-professional video content. 76% 55% 39%

© 2015 Forrester Research, Inc. Reproduction Prohibited10 Base: US online adults (18+) online weekly or more; Source: Forrester’s North American Consumer Technographics ® Media And Advertising Online Benchmark Recontact Survey, 2014 Demographics show negligible differences Professional: long form Professional: short form User-generated content % female51%47%50% Age (mean) HH income$79,700$80,500$75,000 Parent of child under 18 in household31%33%27%

© 2015 Forrester Research, Inc. Reproduction Prohibited11 Base: US online adults (18+) online weekly or more; Source: Forrester’s North American Consumer Technographics ® Media And Advertising Online Benchmark Recontact Survey, 2014 Lifestyle and attitudes highlight greater differences

© 2015 Forrester Research, Inc. Reproduction Prohibited12 Base: US online adults (18+) online weekly or more; Source: Forrester’s North American Consumer Technographics ® Media And Advertising Online Benchmark Recontact Survey, 2014 Short-form content most evenly spans devices 75%50%11% 35%48%57% 23%41%43% 16%25%23% 11%25%33% TV Desktop Mobile Tablet Laptop Professional: long form Professional: short form User-generated content Though user generated content is accessible via multiple devices, only 16% are watching these videos on the go.

© 2015 Forrester Research, Inc. Reproduction Prohibited13 Source: Forrester’s ConsumerVoices Market Research Online Community, Q (US) Is this the demise of TV? “I prefer watching TV on my TV because the screen is larger... it’s an easier viewing experience.” -Female, years old “Right now, just about all of my TV and movie watching is done on the TV – I wouldn’t want to watch on my phone because the screen is far too small.” -Male, years old “I prefer watching TV shows on an actual TV... I stay true to how I was raised.” -Female, years old “Sometimes it just comes down to who wants to watch what and we decide who will get to watch on the larger TV. I’m also happy to stream on my tablet even if it’s smaller since it’s portable.” -Female, years old “Most of our TV watching is done on TV... Our kids watch TV shows on Netflix and videos on YouTube. We also stream House of Cards on Netflix through our PS3. -Female, years old “If someone in my family wants to watch something on TV live as it airs, then I might use the PC to stream something else.” -Female, years old “TV is too important to everyone involved for it to fail. However, TV's current structure lends itself to the efficiency and superior outcomes that consumer- focused digital disruption promises.” -James McQuivey

© 2015 Forrester Research, Inc. Reproduction Prohibited14 Base: US online adults (18+) online weekly or more; Source: Forrester’s North American Consumer Technographics ® Media And Advertising Online Benchmark Recontact Survey, 2014 Professional short-form viewers are open to targeted ads Professional: long form Professional: short form User-generated content Trust brand-sponsored content32%39%30% “Ads are a good way to learn about new products”45%53%47% “I am willing to share my personal information to receive more relevant advertising from companies” 24%29%21% “I don’t mind seeing ads in online videos in exchange for free video content” 40%44% “I don’t mind seeing ads on my cell phone”15%19%10%

Online video consumption is on the rise and content is more available than ever... Base: US online adults (18+); Source: Forrester’s North American Consumer Technographics ® Telecom And Devices Online Benchmark Recontact Survey, but only 8% of consumers have cut the TV cord.

© 2015 Forrester Research, Inc. Reproduction Prohibited16 Looking at consumers by distribution behaviors Base: US online adults (18+) online weekly or more who watch video in a typical month; Source: Forrester’s North American Consumer Technographics ® Media And Advertising Online Benchmark Recontact Survey, 2014 CONSUMERS ACCESS THEIR VIDEO MULTIPLE WAYS: On-demand – content provider Includes paid and free online video streamed from a TV network. On-demand – online provider Includes paid and free online video streamed from a web-based video service, paid video downloaded from a web-based video service, and video downloaded from file sharing sites. 47% 27% 53% On-demand – telecom provider Includes paid and free video on-demand and video recorded on a DVR. Broadcast Includes video from a TV network as it airs. 52%

© 2015 Forrester Research, Inc. Reproduction Prohibited17 Base: US online adults (18+) online weekly or more; Source: Forrester’s North American Consumer Technographics ® Media And Advertising Online Benchmark Recontact Survey, 2014 Again, demographics only provide a start Broadcast as it airs On-demand: telecom provider On-demand: content provider On-demand: online provider % female51%50%47%51% Age (mean) HH income$79,700$85,700$83,000$76,000 Parent of a child under 18 in household 29%34%35%32%

© 2015 Forrester Research, Inc. Reproduction Prohibited18 Base: US online adults (18+) online weekly or more; Source: Forrester’s North American Consumer Technographics ® Media And Advertising Online Benchmark Recontact Survey, 2014 Motivations and attitudes lend key insights Broadcast as it airs On-demand: telecom provider On-demand: content provider On-demand: online provider “I’m always willing to try or do new things” 56%60%67%62% “My family is by far the most important thing in my life” 71%77%73%70% “I put a lot of time and energy into my career” 35%42%48%40% Technology optimist63%66%73%67%

© 2015 Forrester Research, Inc. Reproduction Prohibited19 Base: US online adults (18+) online weekly or more; Source: Forrester’s North American Consumer Technographics ® Media And Advertising Online Benchmark Recontact Survey, 2014 Video from content providers is consumed across devices 93%88%38%47% 8%11%49% 5%9%32% 3%8%24%21% 3%7%16%19% TV Desktop Mobile Tablet Laptop Broadcast as it airs On-demand: telecom On-demand: content provider On-demand: online provider 24% of those who stream from a content provider watch video “on the go.”

© 2015 Forrester Research, Inc. Reproduction Prohibited20 Percentage of consumers who binge watched video in the past month, among those watching: Binge watching varies by distribution method Base: US online adults (18+) online weekly or more; Source: Forrester’s North American Consumer Technographics ® Media And Advertising Online Benchmark Recontact Survey, Online video paid to stream from web- based video service 2.Broadcast from a TV network as it airs 3.Video recorded on a DVR 1.Video recorded on a DVR 2.Online video paid to stream from web- based video service 3.Free video on- demand 1.Online video paid to stream from web- based video service 2.Video recorded on a DVR 3.Online video streamed for free from web-based video service 1.Online video paid to stream from web- based video service 2.Online video streamed for free from web-based video service 3.Video recorded on a DVR Broadcast as it airs On-demand: telecom On-demand: content provider On-demand: online provider

© 2015 Forrester Research, Inc. Reproduction Prohibited21 Base: US online adults (18+) online weekly or more; Source: Forrester’s North American Consumer Technographics ® Media And Advertising Online Benchmark Recontact Survey, 2014 If engaged, consumers will find a way to watch

© 2015 Forrester Research, Inc. Reproduction Prohibited22 Base: US online adults (18+) online weekly or more); Source: Forrester’s North American Consumer Technographics ® Media And Advertising Online Benchmark Recontact Survey, 2014 Social networks provide an opportunity to engage “How do you find out about the TV shows or movies you watch?”

© 2014 Forrester Research, Inc. Reproduction Prohibited23 What makes for an engaging video experience?

© 2015 Forrester Research, Inc. Reproduction Prohibited24 YouTube Netflix Hulu Plus TV Go HBO GO Source: Forrester Mobile Behavioral Tracking, Q and “The App Engagement Index [120206]” Forrester report The app engagement index uncovers which video apps are most engaging

© 2015 Forrester Research, Inc. Reproduction Prohibited25 TV service continues its transformation as consumers turn to video outside linear › “ With the addition of new viewing devices and an array of streaming sources, audiences are not only fragmented but empowered to pick and choose video content according to their own tastes.” -Jim Nail

© 2015 Forrester Research, Inc. Reproduction Prohibited26 Selected Forrester Research › February 9, 2015, TV’s Death Is Widely Exaggerated › January 22, 2015, Making Sense Of New Video Consumption Behavior › May 21, 2014, Time-Shifted TV Opens The Doors To Dynamic Ad Insertion And Addressability

© 2015 Forrester Research, Inc. Reproduction Prohibited27 Summary › Video content is accessed and distributed in many ways. › Demographic profiling is not enough to reach viewers. › Lifestyle, attitudes, and technology influence behaviors. › Understand how to best engage with viewers.

© 2014 Forrester Research, Inc. Reproduction Prohibited28 Additional Forrester Resources › Further data insights from Technographics Contact your data insights manager at › Forrester Interactive Dashboards Online Video Viewing Dashboard Media Consumption Dashboard › Forrester playbooks “The Marketing Mix Optimization Playbook For 2015”

Thank you forrester.com Timothy Wikert