Getting with the Program TV’s Funnels, Paths & Hurdles

Discovery Viewing Funnel Research 73% Selection Fandom 50% Sharing 81% Compared to a few years ago... Viewing Funnel 73% become interested in new shows more quickly Discovery Research Selection Fandom Sharing 50% spend more time researching shows before watching 81% watch a greater variety of shows 83% are fans of more shows at the same time 61% agree that TV is a bigger part of their social life

How I HEAR ABOUT new shows Top Devices for DISCOVERY Search Trial Loyalty Sharing Friend/family in-person TV Promo Friend/family via social media/online Recommendation on a service I use Seeing it when browsing Online ad/promo Network/program website Network/program social media page Network/program app Someone I follow on social media Top Devices for DISCOVERY 77% 65% 36% Q4-1. Which are the most important ways you hear about new TV programs? n=1595 Q4-2. Which devices do you usually find out about TV programs on? n=1595 2

When I BECOME A FAN of a TV show, I… Discovery Research Selection Fandom Sharing Recommend to others in-person Invite another person to watch Recommend online or via social media Follow the show/characters/actors on social media Post about the show on social media Go to the network or show website for more info Interact with a show online (e.g. polls etc.) Use a second screen to do show-related activities Inviting to Co-View, By Age Group 47% Digital Natives (13-17) 40% Millennials (18-34) 29% Gen X (35-44) Q4-7. What do you typically do when you become a fan of a TV program? n=1595 3

Marathoning is one of my favorite ways to watch Digital Natives (13-17) Millennials (18-34) Gen X (35-44) 65% 83% 72% 82% marathon earlier seasons to catch up 74% marathon once the season is available 62% like waiting for a few episodes to air to marathon Q2-3. Which of the following statements about marathoning do you agree with? “Marathoning” means watching three (3) or more episodes of the same program in one day. (strongly agree or somewhat agree) n=1595 4

More devices and sources promote more viewing 79% agree that having more ways of accessing shows helps them try more programs 78% wouldn’t have gotten into some shows if they couldn’t watch in multiple ways Q4-8. How much do you agree or disagree with these statements about how you watch TV today compared to a few years ago? n=1595 Q2-1. We’d like to know a little bit more about your opinions on TV programs. Please indicate how strongly you agree or disagree with these statements. n=1595

56% Viewing paths from Live TV 67% 13% 13% 5% 44% 64% 28% 42% 35% DVR 56% 64% 28% 13% Stream Live TV 42% 35% 5% VOD

22% Viewing paths from Streams 65% 22% 6% 64% 30% 56% 11% Stream Live TV Stream 56% 11% 6% DVR

MANY Screens & Sources ONE Screen & Source “I strongly agree that…” I never miss my favorite TV shows It’s important to watch my favorite shows “live” I’m loyal to a few networks I wouldn’t give up pay TV because I rely on my DVR I wait until a few seasons pass before committing to a show MANY Screens & Sources ONE Screen & Source Q2-1. We’d like to know a little bit more about your opinions on TV programs. Please indicate how strongly you agree or disagree with these statements. n=1595 (“strongly agree” shown)

5 top viewing hurdles SOLUTIONS AHEAD 1 2 3 4 5 Q3-5. How often do you find yourself in the following situations when deciding what TV program(s) to watch that have caused you to either watch a different program or to watch in a different way (e.g. on another device, through a different service)? n=1595

SOLUTIONS “When the latest episode isn’t available yet, I…” Live TV TV ACTION SOURCE on Find Air Time of SAME SHOW Live TV 1 2 Find DIFF. SHOW TV Live TV DVR VOD Some other source 3 Find DIFF. SHOW 4 Some other source Wait till SAME SHOW is Available Q3-10. You are looking for the latest episode of a show, but it’s not on live TV at the moment and isn’t available On-Demand or through the network’s website yet. What would you most likely do next? n=585-612

SOLUTIONS “When I can’t find a show on a paid streaming service, I look for…” SHOW SOURCE on Network or show site/app 1 Same Different 2 Same streaming service VOD Same 3 Q3-8. You are looking for a show on a paid streaming service (e.g. Netflix, Amazon Instant Video, HuluPlus), but you can’t find it. What would you most likely do next? Please rank the follow to reflect your first option, second, etc. n=589-608

SOLUTIONS “When I can’t find a show on a free source, I look for…” 1 Live TV Same 2 Paid streaming service Same VOD Same 3 Free sources Different 4 Q3-9. You are looking for a show on free websites on the Internet (e.g. Hulu, YouTube, network or program’s website/app, unofficial sites like Sidereel), but you can’t find it. What would you most likely do next? n=576-598

PAST PRESENT FUTURE FINDING a TV show – from paper to cloud Q5-2. How does your TV viewing today differ from 5 years ago and how do you think things might be in the future (e.g., 5 years from now)? n=50 (verbatim responses)

PAST PRESENT FUTURE Watched when it aired WATCHING a TV show – from push to pull PAST PRESENT FUTURE Watched when it aired Watch WHAT I want, WHEN I want Will watch ANYTHING where, when and how I want Q5-2. How does your TV viewing today differ from 5 years ago and how do you think things might be in the future (e.g., 5 years from now)? n=50 (verbatim responses)

In the next five years, my TV viewing will change by… Viewers believe the future will offer more options and variety In the next five years, my TV viewing will change by…     Having more options for where/how/what to watch Watching a greater variety of TV programs Keeping up with more TV programs at the same time Getting better recommendations from sources/devices 84% 83% 79% 76% Q5-1. How do you think your TV viewing will change in the next 5 years? (top box only) n=1595

Thank You!