Value, Engagement and Trust in the era of Social Entertainment
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1 Value, Engagement and Trust in the era of Social Entertainment US and UK Findings For more information, please contact_us@edelman.com 1
2 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 2
3 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 Technology 78% 1. Technology 72% 1. Technology 81% 1. Technology 73% 2. Biotech/life sciences 73% 3. Banks 71% 4. Retail 67% 5. Consumer packaged goods manufacturers 64% 6. Automotive 62% 7. Health care industry 58% 8. Entertainment 55% 9. Pharmaceuticals 55% 2. Biotech/life sciences 60% 3. Food 56% 4. Consumer packaged goods manufacturers 53% 5. Retail 47% 6. Health care industry 41% 7. Pharmaceuticals 39% 8. Energy 39% 9. Banks 36% 10. Entertainment 35% 2. Food 64% 3. Biotech 62% 4. Retail 61% 5. Consumer packaged goods manufacturers 57% 6. Health care industry 50% 7. Energy 50% 8. Pharmaceuticals 45% 9. Automotive 45% 10. Entertainment 41% 2. Food and beverage 54% 3. Brewing and spirits 53% 4. Biotech 53% 5. Telecommunications 51% 6. Retail 51% 7. Automotive 49% Consumer packaged goods OTC personal health care products 48% 46% 10. Energy 43% 11. Entertainment 39% 12. Pharmaceuticals 38% 10. Energy 54% 11. Insurance 50% 12. Media companies 48% 11. Automotive 32% 12. Insurance 29% 13. Media companies 27% 11. Banks 33% 12. Insurance 32% 13. Media companies 32% 13. Insurance 26% 14. Financial services 25% 15. Banks 25% 16. Media 22% Results from Edelman Trust Barometer A [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 in the US 3
4 In the UK, Entertainment Ranks as 3 rd most Trusted Industry in 2011; Tech remains at the Top, Media Ranks at the Bottom Trust in Industries among the informed publics audience UK Technology 69% 1. Technology 63% 1. Technology 75% 1. Technology 73% 2. Health care industry 58% 3. Biotech/life sciences 52% 2. Health care industry 59% 3. Food 57% 2. Health care industry 70% 3. Food 60% 2. Food and beverage 67% 3. Entertainment 59% 4. Retail 56% 4. Entertainment 50% 4. Biotech/life sciences 52% 4. Retail 60% 5. Brewing and spirits 53% 5. Retail 50% 6. Pharmaceuticals 48% 7. Automotive 47% 8. Energy 47% 9. Banks 46% 10. Consumer packaged goods manufacturers 42% 11. Media companies 33% 5. Entertainment 52% 6. Automotive 48% 7. Retail 47% 8. Pharmaceuticals 46% 9. Consumer packaged goods manufacturers 41% 10. Banks 32% 11. Insurance 31% 12. Energy 30% 5. Entertainment 58% 6. Pharmaceuticals 55% 7. Automotive 54% 8. Biotech 49% 9. Consumer packaged goods manufacturers 48% 10. Energy 44% 11. Insurance 30% 12. Media companies 27% 6. Automotive 53% 7. Telecommunications 52% 8. OTC personal health care products 50% 9. Pharmaceuticals 50% 10. Biotech 44% 11. Consumer packaged goods 42% 12. Energy 34% 13. Insurance 23% 14. Media 21% 15. Financial services 20% 12. Insurance 31% 13. Media companies 24% 13. Banks 25% 16. Banks 16% Results from Edelman Trust Barometer A [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 in the UK 4
5 Methodology Methodology: Custom Online Survey Target audience: Adults ages 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,
6 Current Behaviors 6
7 The internet continues as second most often turned to source of entertainment in US US 2010 US % 47% 32% 32% 28% 6% TV INTERNET FILM Q5. What source of entertainment do you turn to most often? [select one] Base: US respondents (n=517) 7
8 The internet continues as second most often turned to source of entertainment in UK UK 2010 UK % 49% 30% 24% 12% 7% TV INTERNET FILM *NOTE: 2011 Internet/Web data was calculated using the sum of data points for Internet news/information, Internet download/stream movies, Social network, Online streaming music service, and Video game on social network for comparison with 2010 data Base: UK respondents. 2011: (n=504) respondents ages 18-54; 2010: (n=552) respondents ages Q5. What source of entertainment do you turn to most often? [select one] 8
9 More than half in the US consider social networking sites a form of entertainment TOTAL 56% 70% 57% 42% 35% 34% 46% 24% 12% 8% 6% 9% Don t know No Yes 8.75% 33.75% 57.25% Q18. Do you consider social networking sites to be a form of entertainment? Base: UK 2011 respondents: (n=504); US 2011 respondents: (n=517) 9
10 Nearly half in UK consider social networking sites a form of entertainment 9.5% 45.5% 45% 61% 59% 45% 45% 45% 45% 31% 31% 8% 10% 10% 10% Don t know No Yes Total Base: UK 2011 respondents: (n=504); US 2011 respondents: (n=517) Q18. Do you consider social networking sites to be a form of entertainment? 10
11 Respondents report spending more time with the internet and social media for their entertainment 63% 56% 49% 40% 23% 30% 26% 24% 23% 27% 16% 15% Television Movies Internet Social Media Music Video Games UK US 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? Base: UK 2011 respondents: (n=504); US 2011 respondents: (n=517) 11
12 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% 29% 29% 26% 25% Laptop My Home / Work Computer Mobile Phone DVR MP3 Player Television UK US 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? Base: UK 2011 respondents: (n=504); US 2011 respondents: (n=517) 12
13 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 52% 52% I would like to use my mobile phone or device to interact with entertainment 31% 29% 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 30% 25% 28% 30% 27% 23% UK US Q12. Next, we d like to ask about your preferences for interacting with entertainment. How would you indicate your level of agreement with the following statements? Base: UK 2011 respondents: (n=504); US 2011 respondents: (n=517) 13
14 Entertainment value 14
15 In the US, 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 Networking Sites Film Producers / Movie Studios Music Companies Gaming Companies Cable Television Providers** Satellite Television Providers** *NOTE: Data unavailable for years 2007 and Data from 2008 includes respondents ages 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) 15
16 In the UK, perception of value provided by entertainment sources has dropped, but social networks remain steady 30% 31% UK Entertainment Sources: Providing Value % Providing Very Good or Excellent Value % 24% 23% 23% 18% 19% 14% 11% 11% 13% Social Networking Sites Film Producers / Movie Studios Music Companies Gaming Companies Cable Television Providers** Satellite Television Providers** Base: UK respondents. 2011: (n=504) respondents ages 18-54; 2010: (n=552) respondents ages 18-54; 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? 16
17 Free or paid? 17
18 In the US, 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% Being able to purchase the entertainment easily 66% 77% Excellent visual or sound quality of the entertainment 77% 85% My personal enjoyment of the entertainment 76% 91% US 2010 US 2011 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? Base: US respondents (n=517) 18
19 In the UK, personal enjoyment and quality are now even more important as UK purchase drivers UK 2010 UK 2011 Being able to access the entertainment immediately The hours of enjoyment the entertainment will provide Being able to purchase the entertainment easily Excellent visual or sound quality of the entertainment My personal enjoyment of the entertainment 73% 73% 78% 78% 76% 76% 78% 87% 81% 89% Base: UK respondents. 2011: (n=504) respondents ages 18-54; 2010: (n=552) respondents ages 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? 19
20 Being one of the first to have new entertainment has dropped dramatically in importance in the US The number of devices with which I can access the entertainment 48% 58% Being one of the first to have new entertainment 17% 39% Having unrestricted ability to share or make copies of the entertainment legally 42% 55% Popularity of the entertainment 31% 44% US 2010 US 2011 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? Base: US respondents (n=517) 20
21 Being one of the first to have new entertainment has dropped dramatically in importance in the UK UK 2010 UK 2011 The number of devices with which I can access the entertainment 47% 59% Being one of the first to have new entertainment 14% 40% Having unrestricted ability to share or make copies of the entertainment legally Popularity of the entertainment 29% 34% 49% 51% Base: UK respondents. 2011: (n=504) respondents ages 18-54; 2010: (n=552) respondents ages 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? 21
22 More US respondents are willing to view / listen to advertising to get free entertainment; but won t 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 None of the above 14% 10% 13% 7% 16% 11% 29% 27% 47% 60% 43% 53% 40% 45% US 2010 US 2011 Q17. Which of the following would you be willing to sacrifice in order to get your entertainment for free? Base: US respondents (n=517) 22
23 More UK respondents are willing to sacrifice sharing to get free entertainment; but won t compromise on privacy What are consumers willing to sacrifice for free entertainment? Advertisement-free entertainment 44% 53% The ability to share the entertainment 35% 50% The ability to access the entertainment on multiple devices 32% 42% The ability to access the entertainment on the device of my 20% 25% Visual or sound quality of the entertainment 10% 10% Privacy of my personal information None of the above 11% 8% 11% 20% UK 2010 UK 2011 Base: UK respondents. 2011: (n=504) respondents ages 18-54; 2010: (n=552) respondents ages Q17. Which of the following would you be willing to sacrifice in order to get your entertainment for free? 23
24 Overwhelmingly the move from free to paid/subscription models is received negatively Impact of moving from free to paid/subscription models for entertainment UK US 49% 56% 35% 32% 12% 10% 3% 2% 1% 1% Very negatively Somewhat negatively Neither positively nor negatively Somewhat positively Very positively Q14. If your favorite media companies started requiring a paid subscription for previously free entertainment, how would this impact your feelings toward those companies? Base: UK 2011 respondents: (n=504); US 2011 respondents: (n=517) 24
25 So what does this tell us? 25
26 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. Q2. When you think about the entertainment sector, which companies come to mind? Please list any companies that you can think of. Base: US respondents (n=517) 26
27 TV broadcast companies and movie studios are top of mind in UK 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: UK respondents (n=504) Q2. When you think about the entertainment sector, which companies come to mind? Please list any companies that you can think of. 27
28 Entertainment companies must embrace the three points of attention Entertainment Content Social Entertainment Technological Device Social Conversation 28
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