WHERE ARE THE 2018 [Egg?iqFull Report Qin?GlosshOuse NZ (ivy Introduction • • • • • New Zealand On Air (NZ On Air) supports and funds audio and visual public media content for New Zealand audiences. It does so through the platform neutral NZ Media Fund which has four streams; scripted, factual, music, and platforms. Given the platform neutrality of this fund and the need to efficiently and effectively reach both mass and targeted audiences, it is essential NZ On Air have an accurate understanding of the current and evolving behaviour of NZ audiences. To this end NZ On Air conduct the research study Where Are The Audiences? every two years. The 2014 benchmark study established a point in time view of audience behaviour. The 2016 study identified how audience behaviour had shifted over time. This document presents the findings of the 2018 study and documents how far the trends revealed in 2016 have moved and identify any new trends evident in NZ audience behaviour. Since the 2016 study the media environment has continued to evolve. Key changes include: − Ongoing PUTs declines − Anecdotally at least, falling SKY TV subscription and growth of NZ based SVOD services − New TV channels (eg. Bravo, HGTV, Viceland, Jones! Too) and the closure of others (eg. FOUR, TVNZ Kidzone, The Zone) • The 2018 Where Are The Audiences? study aims to hold a mirror up to New Zealand and its people and: − Inform NZ On Air’s content and platform strategy as well as specific content proposals − Continue to position NZ On Air as a thought and knowledge leader with stakeholders including Government, broadcasters and platform owners, content producers, and journalists. − Maintain NZ On Air’s platform neutral approach to funding and support, and base decisions on objective, single source, multi-media audience information. Glasshouse Consulting May 2018 SLIDE 2 Research Approach • • • • The first priority in the design and conduct of the 2018 study was to ensure valid and robust comparisons could be made to the previous two studies. Therefore the overall approach, timing of the study, sampling and respondent definition, question flow and most wording, and post-weighting factors were kept consistent with the 2014 and 2016 studies. This included asking respondents about their behaviour “yesterday” within specific time periods between 6am and midnight. This technique enables the creation of accurate, survey based measures of actual behaviour by grounding responses in behaviour that is fresh in respondents’ minds and within specific parts of an actual day. A total sample of n=1,414 was developed, with representative samples created for each day of the week (n=200 per day) so that results can be extrapolated to a “typical” day. The total sample has a maximum margin for error of +/-2.6%. Glasshouse Consulting May 2018 SLIDE 3 Research Approach • • • As in 2014 and 2016, a mixed methodology of telephone and online interviewing was used. N=1,002 interviews were completed by telephone using random digit dialling, and n=412 interviews were completed online using Consumer Link’s Flybuys research panel. The online interviews were conducted among consumers without access to a home landline. − The 2013 Census showed that 15% of people live in homes without a landline, however this incidence will have undoubtedly grown since 2013. Nielsen CMI data was used to estimate the 2018 incidence at 35% (it was estimated as 25% in 2016). › • In 2013 Nielsen CMI estimated non-landline penetration at 25% (compared to 15% in the Census). In 2016 Nielsen estimated this incidence at 45%. Given the previous over-estimate compared to the 2013 Census result, we factored the 2018 estimate down to 35%. Interviewing was conducted between April 16 and May 13. Fieldwork was conducted at the same time of year as the 2016 study, and timed for after the Commonwealth Games which could have abnormally influenced audience behaviour during that two week period. • Respondents were defined as all New Zealanders aged 15 and over. • Regional sample stratification, and minimum quotas for males, 15-24 year olds and ethnicity were implemented. • The total sample was post-weighted by the following factors to ensure it was representative of the 15+ NZ population; − Access to a landline, gender, age, ethnicity. Glasshouse Consulting May 2018 SLIDE 4 Research Scope • • • • The study investigated the media consumed “yesterday”, for how long, and which channels, stations and sites were used. These questions measured the daily behaviour of the main broadcast, print, online and music media. The bulk of this report examines daily audience behaviour. Respondents were also asked about their involvement with looking for extra online material relating to a TV show, using captioning and audio description, and music sources and discovery. The study also captures the weekly reach of all media, including less frequently used media not covered by the daily measures, so as to provide a single point of comparison of all media included in this study. The first chart in the Summary section examines this overall comparison of all media based on weekly reach. Two key aspects were not included in this study or previous studies; − Device used to consume media. (Ownership and access to devices was collected.) − Simultaneous media consumption. • Apart from changes to specific channels, sites and stations to ensure accuracy, other changes were made to the survey since 2016 to reflect the changing media landscape. These included; − Measuring podcast consumption for the first time. − Removal of specific questions relating to webseries as these are now measured as a type of online video (see next point) − Measuring types of video watched online on sites such as YouTube and Facebook • The results in this study will not exactly match data from sources such as TV ratings, radio surveys, or online analytics as the methodologies are different. However this study does provide a unique, single source comparison across all media. Glasshouse Consulting May 2018 SLIDE 5 :?QGiOsshL?mse NZ 93,51, Weekly reach is the benchmark for all media covered in this study. On a weekly basis, traditional media continue to deliver the biggest audiences and these are stable since 2016 as audiences on a FTA platform increase and pay TV platform audiences decline. SVOD again shows the biggest growth, particularly NZ SVOD. Spotify and online video show the next biggest growth since 2016. WEEKLY REACH OF ALL MEDIA % OF ALL NZERS 2014 2016 2018 95% 86% 82% 83% 78% 78% Total (net) Linear TV Live New Zealand Radio Online video (e.g. YouTube, Facebook) 49% Newspaper (including online) Total (net) SVOD 12% 35% TV (via FTA platform) TV (via Pay TV platform) NZ SVOD (e.g. Netflix, Lightbox) Music (iPod, CDs) Listen to music on YouTube Magazine (including online) Q 64% 72% 78% 74% 67% 62% 53% 47% 54% 68% 60% 52% Not measured in 2014 26% 48% 53% 47% 38% 47% 46% 53% 51% 45% 69% NZ Ondemand Overseas SVOD (Eg. Netflix, Hulu) Listen to music on Spotify Listen to podcasts Online NZ radio Online international radio Listen to music on iHeartRadio Streamed, downloaded, torrented TV shows Look for extra material online about TV shows Used VPN to watch shows on overseas website Downloaded songs/albums for free 29% 40% 44% 12% 23% 32% 11% 21% 32% Not measured in 2016 Not measured in 2016 21% 12% 18% 18% 8% 8% 9% 5% 6% 9% 7% 11% 8% 5% 6% 6% 3% 6% 5% 4% 4% 5% Apart from this opening chart and following summary this report mainly examines daily media consumption. However the consumption of some media must be measured on a weekly basis due to less frequent usage. Therefore weekly reach provides the best comparison of all media measured in this study. txt/txt Indicates significant change at 95% c.i. We’d like you now to think about what you do over a typical week. Please tell me about how many days per week you would usually do each of the following. Base: All respondents: (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 7 Summary of weekly reach. The weekly audiences of traditional broadcast media are stable and continue to deliver the biggest audiences. However the gap to online media continues to close as online video and SVOD (especially NZ SVOD) grow significantly. • These trends show a continuation of the trends identified in the 2016 Where Are The Audiences? study. − Linear TV (82%) and broadcast radio (78%) continue to deliver the biggest New Zealand audiences each week, and these audiences are stable since 2016. − However within linear TV a significant trend is apparent of declining audiences on a pay TV platform while audiences on a FTA platform have grown significantly since 2016. • The main change in audience behaviour is the continued rapid growth of SVOD and online video on sites like YouTube and Facebook. − The weekly reach of SVOD has nearly doubled since 2016 to reaching more than six in ten New Zealanders each week (62%). This has been mainly driven by the rapid expansion of audiences using NZ SVOD services with weekly reach of this media also doubling to nearly one in two New Zealanders (48%). − Online video has grown to overtake the weekly audience of newspapers. • The way New Zealanders listen to music also continues to change rapidly as the weekly reach of physical formats falls significantly (47%), and music streaming continues to grow. − Listening to music on YouTube remains the most popular online source (46%), but this has not increased since 2016. − Growth in music streaming has been driven mainly by growth in Spotify which now reaches one in three New Zealanders (32%) each week, and to a lesser extent iHeartRadio which now reaches one in ten New Zealanders each week (9%). • Not all online media continues to grow however. Weekly audiences are more stable for: − − − − − Listening to music on YouTube Ondemand viewing Online NZ radio and online international radio Use of unauthorised platforms (Eg. streaming, downloading, torrenting TV shows, or downloading songs/albums for free) Looking for extra online material about a TV show Glasshouse Consulting May 2018 SLIDE 8 The majority of this report examines the behaviour of New Zealand audiences on a daily basis and how that is changing over time. The chart below summarises the daily reach of the main media New Zealanders engage with. DAILY REACH OF ALL MEDIA % OF ALL NZERS 2014 2016 2018 Total (net) Linear TV 73% 66% 67% 59% 55% Live New Zealand Radio 30% Online video (Eg. YouTube, Facebook) Newspaper (including online) TV (via Pay TV platform) 23% Music online/streamed (Eg. YouTube, Spotify) Total (net) SVOD 6% 23% TV (via FTA platform) NZ SVOD (Eg. Netflix, Lightbox) 17% Music (iPod, CDs) Magazine (including online) Overseas SVOD (Eg. Netflix, Hulu) Online NZ radio Listened to a podcast Online international radio 6% 45% 52% 52% 49% 41% 58% 49% 39% 33% 39% 37% 35% 34% 37% 30% 27% 20% NZ Ondemand 83% 38% 12% 18% 19% 23% 20% 19% 14% 16% 6% 7% 9% 7% 4% 4% 4% Note: TV viewing includes live & time shifted viewing, in and out of home. txt/txt Indicates significant change at 95% c.i. BASE: All respondents: (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 9 Summary of daily reach. The daily behaviour of New Zealand audiences is broadly similar to weekly reach, with some important differences. • Linear TV and broadcast radio continue to attract the biggest audiences each day but, unlike on a weekly basis, these continue to decline in size over time. This dynamic suggests a declining frequency of tune in for both media. − Linear TV’s decline is driven by fewer viewers watching on a pay TV platform while viewing on a FTA platform is stable if not growing. This study shows SKY TV penetration at 39% of all NZ homes. • • • The daily online video audience on sites like YouTube and Facebook continues to grow and has overtaken newspapers to reach the third biggest audience each day. Overall music streaming has continued to grow and now reaches four in ten New Zealanders each day, the fifth highest daily audience, while physical formats continue to shrink, reaching two in ten New Zealanders each day. However the strongest growth in audience size continues to be SVOD which now reaches more than a third of New Zealanders each day. This study shows total SVOD penetration at 54% of all NZ homes. − The growth of daily SVOD audiences has been driven by the continued growth of NZ SVOD services which now reach one in three New Zealanders each day compared to about one in six watching overseas SVOD services. Daily reach of NZ SVOD is now dominated by NZ Netflix (27%). • Music streaming also continues to grow rapidly and now reaches the fifth biggest daily audience of New Zealanders (39%). − This growth has come at the expense of music on physical formats which has decreased further to one in five New Zealanders (20%). • As with weekly reach, the daily audiences of Ondemand and online radio are stable since 2016. Glasshouse Consulting May 2018 SLIDE 10 While trends identified in 2016 continue and there have been significant changes in audience behaviour, the rate of change has slowed since 2016. • In particular the growth rate in audience size of many online media has been significantly lower since 2016 compared to between 2014 and 2016. This is summarised below: − Online video: 50% growth (2014-2016) to 16% growth since 2016 − Music streaming: 43% growth (2014-2016) to 18% growth since 2016 − Total SVOD: 283% growth (2014-2016) to 61% growth since 2016 (Overseas SVOD: 133% growth (2014-2016) to 14%) − Ondemand: 50% growth (2014-2016) to 6% growth since 2016 Note: NZ SVOD not available in 2014 so no growth rate comparisons are possible. NZ SVOD growth was 76% 2016 to 2018 • The decline of traditional broadcast media however has continued at the same rate: − Linear TV: 12% decline (2014-2016) to 10% decline since 2016 − Broadcast radio: 12% decline (2014-2016) to 7% decline since 2016 − The exception is linear TV on a FTA platform which shows a 9% increase since 2016. • To understand the slowing of growth of online media it is important to note there been fewer new developments in the last two years that would help maintain the previous rate of change. Developments 2014 -2016 Developments 2016-2018 PUTs declines PUTS declines NZ launch of Netflix, Lightbox, Neon, NZ On Screen Closure of FOUR, TVNZ Kidzone, The Zone Launch of TVNZ Duke, The Zone, Jones!, Discovery Turbo, Garage Launch of Bravo, HGTV, Viceland, Jones! Too Restrictions put in place on VPN use after broadcasters challenged “Global Mode” services from ISPs Closure of Igloo Launch of Apple Music Launch of FreeviewPlus, Chromecast Launch of NZME’s Watchme Glasshouse Consulting May 2018 SLIDE 11 Summary of time spent. New Zealanders continue to dedicate the most time each day to traditional broadcast media by a considerable margin and this has declined very little over time. While time spent using online media continues to grow rapidly, it continues to be significantly lower than linear TV and radio. • New Zealanders continue to spend over two and a half hours watching linear TV each day, and over an hour and a half listening to radio each day. − This has not changed significantly overall since 2014. − Viewers of linear TV via a pay TV platform are spending slightly less time watching since 2016, but still dedicate 92 minutes to this activity. − Viewers of linear TV via FTA platform have shown a slight increase in time spent viewing since 2016 to 64 minutes per day. • The ongoing pattern of declining reach and stable time spent viewing suggests it is lighter viewers and listeners who continue to drop out of daily audiences of traditional media. • SVOD is the online media to which New Zealanders dedicate the most time – up to 62 minutes per day. • Time spent viewing online video has increased to 49 minutes since 2016, as has listening to streamed music. • • The lengths of time quoted above are based on all New Zealanders, including those who do not engage in each media. Looking at only those who engage with each media does not change the above conclusions as linear TV still attracts the most time (nearly four hours among users), and SVOD shows its ability to deliver a highly engaged audience with users of this media spending 3 hours each day watching this content. Glasshouse Consulting May 2018 SLIDE 12 Despite declining rates of change, there are two main dynamics evident in audience behaviour trends. CHANGES IN VIDEO MEDIA AUDIENCES • • • • There is an ongoing decline in the daily reach of linear TV, driven by a decline in penetration of SKY TV and declining daily reach of viewing linear TV on a pay TV platform. This is countered by an ongoing increase in the daily reach of SVOD (driven by NZ SVOD services and, as will be shown, particularly NZ Netflix) and online video (driven mainly by YouTube but also Facebook). However it would not be accurate to suggest a direct substitution is occurring as it is typically lighter viewers who are dropping out of linear TV. Therefore online video and SVOD reach may be increasing rapidly but time spent viewing is not increasing at a similar rate as the viewers these media are attracting remain lighter viewers. Analysis also shows this group are typically younger viewers (Ie. under 40). • Therefore engagement with linear TV remains strong albeit on a reducing base. • Note also that the growth rates in daily reach of online video and SVOD have slowed since 2016. • However the growth of NZ SVOD services and the adoption of NZ Netflix in particular is one of the biggest changes in behaviour since 2016. − − − − − 54% of homes now have access to SVOD of some kind 49% of homes have access to Netflix (NZ or overseas) 30% of homes have access to an NZ SVOD service 27% of New Zealanders watch NZ Netflix during a typical day 19% of homes have access to Lightbox, but daily reach of Lightbox is 5%. Glasshouse Consulting May 2018 SLIDE 13 Despite declining rates of change, there are two main dynamics evident in audience behaviour trends. CHANGES IN MUSIC AUDIENCES • • • • New Zealanders are rapidly changing the way they listen to music with the daily reach of physical formats halving since 2014 and music streaming nearly doubling. This change in behaviour is more representative of a direct substitution of one media for another as time spent listening to physical formats is also falling while time spent listening to streamed music continues to grow. Analysis also shows that it is younger New Zealanders (Ie. under 40) who are dropping out most rapidly from the physical formats of music with older New Zealanders more stable. This therefore represents a sea change in music consumption in the present day as well as into the future. Note however that radio audiences are more stable in terms of reach and time spent viewing, including among younger audiences. Glasshouse Consulting May 2018 SLIDE 14 The biggest daily audience concentrations on single channels, stations or sites are on TVNZ 1, YouTube, Facebook, NZ Netflix, Three, Spotify and TVNZ 2. Since 2016 RNZ National has dipped below 10% daily reach, and Stuff and NZ Herald have increased. MOST POPULAR CHANNELS, SITES & STATIONS (ABOVE 10% REACH ) % OF ALL NZERS 2014 2016 2018 48% 40% 43% TVNZ 1 YouTube (for online video) Facebook (for online video) Netflix in NZ Not measured in 2014 35% Not measured in 2014 28% 32% Not measured in 2014 14% 27% Three Spotify 25% Not measured in 2014 14% TVNZ 2 YouTube (for music) TVNZ Ondemand Prime Stuff (for online video) NZ Herald (for online video) SKY Sport 1, 2, 3, 4, 5, or ESPN Q 7% 10% 13% 15% 12% 12% Not measured in 2014 9% 12% Not measured in 2014 11% 14% 12% 10% 35% 31% 23% 27% 22% 20% 20% 19% 6% 42% These rankings and the trends over time reinforce the two dynamics evident in behaviour overall; a decline in traditional broadcast channels and stations, and a rise in YouTube, Facebook, NZ Netflix and Spotify. No other single channels, sites or stations reach more than one in ten New Zealanders each day. txt/txt Indicates significant change at 95% c.i. Which of the following did you use yesterday? Base: All respondents: (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 15 The ongoing trends impacting media consumption overall result in significant impacts on the use of specific channels, sites and stations. TV Channels • • • There have been slight but consistent declines in the daily reach of most TV channels, and no SKY TV channel shows increased reach since 2016. SKY Movies channels show the biggest decline since 2016, whereas SKY Sport channels are more stable. TV ads continue to be the most effective means of informing New Zealanders about new TV shows. However word of mouth (friends and family, social media) again increases in influence at the expense of newspapers and magazines. Ondemand sites • • While the overall reach of Ondemand has remained stable since 2016, the daily reach of TVNZ Ondemand has increased. This coincides with the first significant change in the way New Zealanders use Ondemand with a significant increase in the proportion who use Ondemand as a content source (up to 32%) as opposed to catching up (51%). − This trend is being led by younger New Zealanders and particularly 15-24 year olds. SVOD services • • NZ Netflix now reaches 27% of New Zealanders each day, up from 14% in 2016. Lightbox (5%) and NZ On Screen (5%) also show significant increases in daily reach and are now equally as popular as Netflix from overseas. Glasshouse Consulting May 2018 SLIDE 16 The ongoing trends impacting media consumption overall result in significant impacts on the use of specific channels, sites and stations. Online video sites • YouTube or Vimeo has increased its daily reach significantly again since 2016 (47%), ahead of Facebook (32%). • NZ Herald and Stuff are next most popular (11%), with NZ Herald showing a significant increase since 2016. • User generated clips (68%) are the most popular type of video to watch, followed by news content (45%). Radio stations • • • Broadcast radio listening is more stable overall and at a specific station level. RNZ National continues to be the most popular single station (9%), but the daily reach of this station has fallen significantly since 2016 (13%). Despite the growth of music streaming, the stability of radio audiences means this, and word of mouth from friends and family, remain the main ways in which New Zealanders find new music. Music Streaming services • Spotify (23% daily reach) has grown significantly since 2016 and overtaken YouTube (19%) as the most popular site for listening to music on a daily basis. Glasshouse Consulting May 2018 SLIDE 17 The generation gap between New Zealanders aged under 40 and those over 45 is the dominant influence on audience behaviour. Other differentiating factors have become less influential and less consistent across all media. However the generation gap has also closed slightly since 2016. • The 2014 study identified the variables that differentiated daily media consumption: − Primary; Age/life stage − Secondary; Ethnicity and Technology − Other; Gender, Region, and Socio-economic level • In 2016 the variables that differentiated daily media consumption consolidated into: − Primary; Age/life stage − Other; Technology and Region • • • • In 2018 age/life stage is the dominant differentiator of media consumption. While for some media ethnicity and socio-economic factors also play a role, these are a lesser influence than age/life stage and are not a consistent influence for all media. The regional differences evident in 2016 between Auckland and the South Island in particular have significantly reduced and are not a key differentiator in 2018. Access to technology continues to play a role in media consumption but as the penetration of this technology expands it plays a lesser role in differentiating behaviour. It is also linked closely to age/life stage. Glasshouse Consulting May 2018 SLIDE 18 The generation gap remains strong and behaviour differs significantly between those above and below 40-45 years of age. Above this age traditional media dominates and below this age online media is typically more popular. However as the next chart summarises, the generation gap in online media has closed since 2016. DAILY REACH OF ALL THE MEDIA % OF OLDER AND YOUNGER NZERS 15-39 45+ 49% Total (net) Linear TV 47% Live New Zealand Radio Online video (Eg. YouTube, Facebook) 32% 26% Newspaper (including online) Music online/streamed (Eg. YouTube, Spotify) Total (net) SVOD NZ SVOD (Eg. Netflix, Lightbox) Music (iPod, CDs) NZ Ondemand Magazine (including online) Overseas SVOD (Eg. Netflix, Hulu) Online NZ radio Podcasts Online international radio Q 18% 20% 21% 22% 14% 9% 28% 25% 8% 10% 7% 11% 5% 5% 3% 61% 55% 16% 23% 80% 74% 67% 52% 41% Note: TV viewing includes live & time shifted viewing, in and out of home. We’d like to ask you about the different types of entertainment you used yesterday. For each of the following types of entertainment, I’d like you to tell me if you did that activity for 5 minutes of more during the time period I read out. It doesn’t matter if you were also doing something else at the time. Base: All respondents: (15-39 n=577; 45+ n=690) Glasshouse Consulting May 2018 SLIDE 19 While the generation gap for some traditional media has widened since 2016 as more younger New Zealanders drop out, for many online media the generation gap has closed as more older New Zealanders adopt these media. • • There is now a bigger generation gap in consumption of linear TV, newspapers and magazines as more younger New Zealanders stop using these media each day and older New Zealand audiences remain stable. However there is a lesser generation gap than was evident in 2016 in terms of the daily audiences of online video, music streaming, SVOD, Ondemand and online radio as more older New Zealanders engage with these media each day. − In fact the growth in audience size of these online media has been driven more by New Zealanders aged 45 or more since 2016 than by younger New Zealanders. • • In other words the profile of online media audiences has broadened since 2016 while traditional media audiences continue to get older. The generation gap in the way New Zealanders listen to music has also closed, however this is a result of younger New Zealanders dropping rapidly out of physical formats since 2016 while older New Zealanders continue to listen to these in similar proportions. Glasshouse Consulting May 2018 SLIDE 20 Access to technology is an intrinsic driver of the generation gap in audience behaviour, but again this gap has closed a little since 2016. • TVs and PCs/laptops continue to be the most common devices but smartphones have now overtaken radios. • The biggest growth in technology access since 2016 have been: − − − − − − • • Smartphones Netflix UFB Smart TVs connected to the Internet Chromecast Lightbox Younger New Zealanders continue to have greater access to technology that enables consumption of online media than older New Zealanders – particularly smartphones, Netflix, UFB, smart TVs connected to the Internet, Chromecast and Lightbox. However older New Zealanders have adopted Netflix, UFB, Chromecast and tablets faster than younger New Zealanders in the last two years, enabling over 45 year olds to close the generation gap in terms of media consumption. − Note that not all older New Zealanders are adopting new technology; those aged 60-65 and over remain significantly less likely to be changing their behaviour or access to technology. • There has been a significant fall in the penetration of SKY TV since 2016. There is now a significant trend in the data showing that higher socio-economic homes are more likely to have access to SKY TV. This is a new trend since 2016. − Given the decline in reach of SKY Movies channels since 2016, this trend suggests lower socio-economic New Zealanders are making the decision to drop SKY TV or at least SKY Movies for financial reasons. Glasshouse Consulting May 2018 SLIDE 21 Other differentiating factors on audience behaviour. SOCIO-ECONOMIC LEVEL • There is a socio-economic influence on some media consumption and on access to some types of technology. − The unemployed are more likely to use free media choices such as linear TV, Ondemand and streamed music. − High income earners are more likely to have access to key technology such as: SKY TV, a PVR, a tablet, a smart TV connected to the Internet, UFB, Netflix, and Chromecast. ETHNICITY • Ethnicity also influences some media consumption – particularly among Asian New Zealanders; − New Zealanders of Asian descent are more likely to watch online video and listen to streamed music − This group are less likely to watch linear TV, watch Ondemand, watch NZ SVOD, listen to the radio, or listen to podcasts. Glasshouse Consulting May 2018 SLIDE 22 Overall use of unauthorised platforms continues to grow only slowly, and frequency of engaging remains stable and infrequent. • • • • • Slightly more than one in two New Zealanders (54%) have never engaged in any activity involving unauthorised platforms, and this is only slightly lower than it was in 2014. Downloading songs or albums for free is the activity with which the most New Zealanders have ever engaged (34% ever done). This is followed by streaming, downloading or torrenting TV shows (29% ever done). The frequency of engaging with these activities is unchanged and low. The weekly reach of these activities ranges between just 5% and 8% of all New Zealanders. The weekly reach of these activities among younger New Zealanders also remains low with between 7% and 14% of 15-34 year olds engaging each week. Glasshouse Consulting May 2018 SLIDE 23 Combining extra content online with linear TV extends engagement with TV shows for slightly more than one in four consumers. • There continues to be slow growth in the size of the audience engaging with extra content online. − Since 2014 there has been a small but significant increase in the number of New Zealanders who have ever engaged in this activity from 22% to 27%. − This behaviour is most common among 15-29 year olds. • However there has been no significant increase in frequency of engaging with extra content over time – with 6% of all New Zealanders doing so at least once per week. Glasshouse Consulting May 2018 SLIDE 24 Use of captioning has grown significantly since 2014, while audio description remains stable. There are a wide variety of reasons for using captioning beyond being deaf or hard of hearing. • One in five New Zealanders (21%) ever use captioning while watching TV in 2018, compared to one in ten in 2014. − The group who are most likely to do so are Asian New Zealanders (47%). • • New Zealanders use captioning for many different reasons, of which being hard of hearing or deaf is just one. Difficult accents, language difficulties and not disturbing others in the room drive significantly more New Zealanders to use captioning than hearing difficulties do. 3% of New Zealanders ever use audio description while watching TV and this has not changed since 2014. Glasshouse Consulting May 2018 SLIDE 25 uzo Qy Linear TV (66%) and radio (55%) continue to attract the biggest daily audiences. However the audience sizes of nearly all traditional media continue to decline while audiences of nearly all online media increase. However there is also some stability with TV via a FTA platform, Ondemand, magazines, overseas SVOD services and online radio unchanged since 2016. DAILY REACH OF ALL MEDIA % OF ALL NZERS 2014 2016 2018 Total (net) Linear TV Live New Zealand Radio 30% Online video (Eg. YouTube, Facebook) Newspaper (including online) TV (via Pay TV platform 23% Music online/streamed (Eg. YouTube, Spotify) Total (net) SVOD 6% 23% TV (via FTA platform) NZ SVOD (Eg. Netflix, Lightbox) 17% Music (iPod, CDs) Magazine (including online) Overseas SVOD (Eg. Netflix, Hulu) Online NZ radio Listened to a podcast Online international radio 6% 45% 52% 52% 49% 41% 58% 49% 39% 33% 39% 37% 35% 34% 37% 30% 27% 20% NZ Ondemand Q 73% 66% 67% 59% 55% 12% 18% 19% 23% 20% 19% 14% 16% 6% 7% 9% 38% 83% The 2018 trends show a continuation of the trends identified in 2016. The biggest declines are: • Linear TV – down 10% › Due to an ongoing decline in pay TV platform viewing (down 20%) › This is off-set by a slight increase in viewing on a FTA platform (up 9%) • Music on CD, iPod, vinyl – down 26% The biggest increases are: • Total SVOD – up 61% › Due to a 76% increase in NZ SVOD services • Online video – up 16% • Music streaming – up 18% Not measured in 2016 7% 4% 4% 4% Note: TV viewing includes live & time shifted viewing, in and out of home. txt/txt Indicates significant change at 95% c.i. We’d like to ask you about the different types of entertainment you used yesterday. For each of the following types of entertainment, I’d like you to tell me if you did that activity for 5 minutes of more during the time period I read out. It doesn’t matter if you were also doing something else at the time. Base: All respondents: (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 27 While the trends identified in 2016 continue, rates of change of many media have slowed since 2016. In particular the growth of many digital media - online video, music streaming, total SVOD and Ondemand - have slowed significantly. RATES OF CHANGE IN DAILY REACH % OF ALL NZERS % change 2014 - 16 % change 2016 - 18 Linear TV Live Radio -12% -10% -12% -7% Online Video Newspaper TV (Pay TV platform) 16% 50% -6% -16% -16% -20% Music streaming 18% 43% Total SVOD -3% TV (FTA platform) 9% Not measured in 2014 NZ SVOD Music (Eg. on CDs) 76% -29% -26% Ondemand Magazine 283% 61% 6% 50% -13% -5% Overseas SVOD Online NZ radio Base: All respondents (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) 14% 17% 29% 133% Glasshouse Consulting May 2018 SLIDE 28 Radio continues to start many New Zealanders’ days, and linear TV still takes over after 6pm. Online video now matches the reach of TV until 6pm. NZ SVOD peaks between 6pm and 8.30pm but has a more consistent reach through the day than most media and is one of the few media other than TV to increase its reach after 6pm. REACH OF MEDIA OVER THE DAY % OF ALL NZERS 80% There has been little change in the pattern of consumption of these media types over the day compared to 2016. The only significant changes are a decrease in newspaper consumption in the morning and an increase in online video consumption between 9am and 6pm. 70% 60% 53% 50% 40% 28% 30% 20% 20% 17% 13% 10% 12% 6% 0% 6am - 9am Q Total Linear TV Live NZ Radio Online video (YouTube, Facebook) Music streamed (YouTube, Spotify) Music (iPod, CDs) Newspaper (including online) NZ SVOD 9am - 6pm 6pm - 8.30 pm 8.30pm 10.30pm 10.30pm midnight We’d like to ask you about the different types of entertainment you used yesterday. For each of the following types of entertainment, I’d like you to tell me if you did that activity for 5 minutes of more during the time period I read out. It doesn’t matter if you were also doing something else at the time. Base: All respondents (2016; n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 29 Other media rarely reach more than 10% of New Zealanders at any point in the day. Ondemand is one of the few media to increase its reach after 6pm. REACH OF MEDIA OVER THE DAY % OF ALL NZERS 80% 70% There has been no significant change to the pattern of consumption of these media types over the day compared to 2016. 60% 50% 40% 30% Magazine (including online) NZ Ondemand 20% Overseas SVOD Online NZ Radio 10% Online International Radio 0% 6am - 9am Q 9am - 6pm 6pm - 8.30 pm 8.30pm 10.30pm 10.30pm midnight We’d like to ask you about the different types of entertainment you used yesterday. For each of the following types of entertainment, I’d like you to tell me if you did that activity for 5 minutes of more during the time period I read out. It doesn’t matter if you were also doing something else at the time. Base: All respondents (2016; n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 30 New Zealanders continue to spend the most time with traditional broadcast media by a considerable margin, and this has declined only a little since 2014. In fact time spent viewing FTA TV has increased over time. However there have been large increases in time spent listening to streamed music, online video and SVOD content. TIME SPENT CONSUMING MEDIA AVERAGE MINUTES PER DAY AMONG ALL NEW ZEALANDERS 2014 2016 2018 Total (net) Linear TV Live New Zealand Radio 97 97 18 Online video (Eg. YouTube, Facebook) 40 49 TV (via pay TV platform) 23 Music online/streamed (Eg. YouTube, Spotify) 92 34 6 Total (net) SVOD 49 39 TV (via free to air platform) NZ SVOD (Eg. Netflix, Lightbox) Not measured in 2014 22 Music (iPod, CDs) 9 NZ Ondemand 6 Overseas SVOD (Eg. Netflix, Hulu) Online NZ radio Podcast 5 9 9 19 29 42 43 19 21 17 20 Not measured in 2014 Not measured in 2016 Online international radio Q 62 54 59 64 6 4 3 4 107 162 161 156 108 103 Given that daily reach of TV and radio has declined significantly, these results showing only slight declines in time spent each day suggests the audiences these media have lost tend to be lighter viewers and listeners. Note: in this chart average total minutes are based on all New Zealanders and includes those who did not do each activity (i.e. zero minutes). Media ranked in order of daily reach. Between (TIME PERIOD) about how long did you (activity) for? Base: All respondents: (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 31 Among users of each media, linear TV attracts the most time per day and this has increased since 2016 as has live NZ radio. There have been slight increases in time spent watching online video and SVOD among users, and a larger increase in time spent listening to streamed music. TIME SPENT CONSUMING MEDIA AVERAGE MINUTES PER DAY AMONG USERS OF EACH MEDIA 2014 2016 2018 175 Total (net) Linear TV 160 163 Live New Zealand Radio Online video (Eg. YouTube, Facebook) 61 185 94 100 188 TV (via pay TV platform) 100 112 Music online/streamed (Eg. YouTube, Spotify) 107 Total (net) SVOD NZ SVOD (Eg. Netflix, Lightbox) Not measured in 2014 Music (iPod, CDs) 97 74 NZ Ondemand 83 Online NZ radio Online international radio Q Not measured in 2014 Not measured in 2016 114 108 107 115 107 Overseas SVOD (Eg. Netflix, Hulu) Podcast 143 153 TV (via free to air platform) 87 79 115 110 99 107 141 150 134 141 219 226 180 184 170 169 211 223 The increase in time spent consuming mainstream broadcast media among users confirms the theory that lighter viewers and listeners are dropping out of these media. Note: in this chart average total minutes are based only on people who engage with each media (i.e. excludes zero minutes). Media ranked in order of daily reach. Between (TIME PERIOD) about how long did you (activity) for? Base: All who used each media yesterday Glasshouse Consulting May 2018 SLIDE 32 Changing video media behaviour: The daily reach of linear TV is falling due to declining viewers watching via a pay TV platform, and the size of the audiences watching SVOD and online video continues to grow DAILY REACH AND TIME SPENT CHANGES IN VIDEO MEDIA BEHAVIOUR 180% 160% 140% 211 TOTAL SVOD ONLINE VIDEO 250 223 mins 200 188 mins 180 184 mins 120% DAILY REACH % 150 100% 107 mins 80% 94 100 mins 100 60% 40% 58% 49% 20% 61 mins 39% 0% 2014 2016 2018 6% 23% 2014 2016 37% 45% 52% 50 30% 0 2018 2014 2016 TIME SPENT VIEWING AMONG USERS (Minutes) WATCHING TV ON PAY TV PLATFORM 200% 2018 The daily reach of linear TV via a pay TV platform has fallen significantly as SVOD and online video has increased. However time spent viewing among viewers on a pay TV platform continues to increase as lighter viewers drop out. Therefore while the reach of SVOD and online video increases this is not translating into a proportionate increase in time spent viewing of these media as the viewers these media are attracting remain lighter viewers. Subsequent charts show it is younger New Zealanders who are dropping out of linear TV. Q Base: (Reach) All respondents: (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) (Time Spent Viewing): All users of each media Glasshouse Consulting May 2018 SLIDE 33 Changing music listening behaviour: The rapid change in the way New Zealanders listen to music continues. DAILY REACH AND TIME SPENT CHANGES IN MUSIC LISTENING BEHAVIOUR 200% 180% 160% MUSIC ON CDs 200 STREAMED MUSIC 140% DAILY REACH % 120% 143 mins 100% 114 mins 80% 108 97 mins 60% 100 mins 112 150 100 40% 50 38% 20% 27% 0% 2014 2016 20% 23% 2018 2014 33% 39% 0 2016 TIME SPENT VIEWING AMONG USERS (Minutes) 250 2018 The way New Zealanders listen to music has switched since 2014 with twice as many now listening to streamed music each day as physical formats and spending more time doing so. Subsequent charts show this is due to more older New Zealanders adopting streaming while younger New Zealanders drop rapidly out of physical formats. Q Base: (Reach) All respondents: (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) (Time Spent Viewing): All users of each media Glasshouse Consulting May 2018 SLIDE 34 Media synergies: there are several media which are often used by the same people on the same day: Ondemand and TV, music streaming and online video, music on CD/iPod and radio, newspaper and radio. REPERTOIRE OF DAILY MEDIA % OF ALL NZERS Media watched yesterday (row %’s) Linear TV NZ SVOD Ondemand Music Streaming LINEAR TV ONDEMAND - NZ SVOD 12% 37% 56% 18% - 32% 15% 34% 14% Music CD/iPod 47% 13% Newspaper 46% 11% ONLINE VIDEO 29% 14% RADIO 27% 16% 45% 21% 34% 49% 25% 33% 27% 20% MUSIC STREAMING 63% 46% 33% 27% - 42% 48% 33% 22% Example of how to read table: Of those who watched Ondemand yesterday, 56% also watched linear TV that day. Base: All respondents (2018: n=1,414) Glasshouse Consulting May 2018 SLIDE 35 ??Giosshcuse NZ The main differentiating factor influencing media consumption continues to be age/life stage (Ie. the generation gap), and other factors are now less strong and not consistently influential across all media. • In 2014 there were several differentiators of media consumption: − Primary differentiator; age/life stage − Secondary differentiators; ethnicity and technology − Other differentiators; gender, region, and socio-economic level • In 2016 these consolidated to: − Primary differentiator; age/life stage − Secondary differentiator; technology − Other differentiator; region • • • • • In 2018 age/life stage is the dominant differentiator of media consumption. While for some media ethnicity and socio-economic factors also play a role, these are a lesser influence than age/life stage and are not a consistent influence for all media. The regional differences evident in 2016 between Auckland and the South Island in particular have significantly reduced and are not a key differentiator in 2018. Access to technology continues to play a role in media consumption but as the penetration of this technology expands it plays a lesser role in driving behaviour. It is also linked closely to age/life stage. A full breakdown of daily media consumption and access to devices and technology by different demographic groups is contained in the Appendix. Glasshouse Consulting May 2018 SLIDE 37 The generation gap remains strong and behaviour differs significantly between those above and below 40-45 years of age. Above 45 traditional media (TV, radio, newspapers) dominates and below 40 online media (online video, streamed music, SVOD) is typically more popular. However as the next chart shows, the generation gap in online media has closed since 2016. DAILY REACH OF ALL THE MEDIA % OF OLDER AND YOUNGER NZERS 15-39 45+ 49% Total (net) Linear TV 47% Live New Zealand Radio Online video (Eg. YouTube, Facebook) 32% 26% Newspaper (including online) Music online/streamed (Eg. YouTube, Spotify) Total (net) SVOD NZ SVOD (Eg. Netflix, Lightbox) Music (iPod, CDs) NZ Ondemand Magazine (including online) Overseas SVOD (Eg. Netflix, Hulu) Online NZ radio Podcasts Online international radio Q 18% 20% 21% 22% 14% 9% 28% 25% 8% 10% 7% 11% 5% 5% 3% 61% 55% 16% 23% 80% 52% 41% 74% 67% • Among 15-39s, one in two still watch TV or listen to the radio each day, but online video, music streaming and SVOD have overtaken or are equally popular as both these traditional media. • 15-39s consume all online media significantly more than 45+ year olds. • Among 45+ year olds traditional media is still dominant, but the gap in reach to online media has closed as more older New Zealanders adopt these media. Note: TV viewing includes live & time shifted viewing, in and out of home. We’d like to ask you about the different types of entertainment you used yesterday. For each of the following types of entertainment, I’d like you to tell me if you did that activity for 5 minutes of more during the time period I read out. It doesn’t matter if you were also doing something else at the time. Base: All respondents: (15-39 n=577; 45+ n=690) Glasshouse Consulting May 2018 SLIDE 38 The generation gap has increased for linear TV, newspapers and magazine as younger audiences continue to drop out of these media. But the generation gap has closed for online video, music streaming, SVOD, Ondemand and online radio as more older New Zealanders adopt these. The generation gap for music on physical formats has also closed as younger New Zealanders stop listening to this format. CHANGES IN DAILY REACH BETWEEN YOUNGER AND OLDER NZERS – 2016 TO 2018 15 – 39 yrs 45+ yrs -22% Total Linear TV -1% -6% -8% Live NZ Radio Online video Newspaper -24% -11% Music Streaming Total SVOD 3% 45% 14% 33% 37% 46% NZ SVOD Music (CDs, iPod) Ondemand Magazine -50% -12% -36% Overseas SVOD Online International Radio Base: All respondents (2016 - n=1,404; 2018 – n=1,414) -17% 157% 11% 27% 8% 4% 0% Online NZ Radio 130% 60% 40% 50% Glasshouse Consulting May 2018 SLIDE 39 Other differentiators of media consumption SOCIO-ECONOMIC LEVEL: • There is a socio-economic influence on some media consumption and on access to some types of technology. − The unemployed are more likely to enjoy free media choices such as linear TV, Ondemand and streamed music. − High income earners are more likely to have access to key technology such as: SKY TV, a PVR, a tablet, a smart TV connected to the Internet, UFB, Netflix, or Chromecast. ETHNICITY • Ethnicity also plays a role in influencing some media consumption – particularly among Asian New Zealanders; − New Zealanders of Asian descent are more likely to watch online video and listen to streamed music. − They are less likely to watch linear TV, watch Ondemand, watch NZ SVOD, listen to the radio, or listen to podcasts. • A full breakdown of daily media consumption and access to devices and technology by different demographic groups is contained in the Appendix. Glasshouse Consulting May 2018 SLIDE 40 More than one in two New Zealanders have access to SVOD at home (54%) and this changes their media behaviour. In an SVOD home, online video (63%) is the most popular media, narrowly, over linear TV (61%) and Total SVOD (58%). This pattern is very similar to 2016, except the growth of NZ SVOD which now achieves 50% daily reach in these homes. DAILY REACH OF ALL MEDIA IN SVOD AND NON-SVOD HOMES % OF ALL NZERS SVOD Homes 2018 OVERALL 61% 66% Total (net) Linear TV 56% 55% Live New Zealand Radio Online video (Eg. YouTube, Facebook) 52% 39% 41% Newspaper (including online) TV (via pay TV platform) 36% 39% Music online/streamed (Eg. YouTube, Spotify) 39% Total (net) SVOD 37% TV (via free to air platform) 35% 37% NZ SVOD (Eg. Netflix, Lightbox) Music (iPod, CDs) NZ Ondemand Magazine (including online) Overseas SVOD (Eg. Netflix, Hulu) Q 63% 30% 20% 20% 23% 19% 16% 19% 16% 24% 51% 58% 50% • In 2016 SVOD users consumed nearly all media more than average New Zealanders. However this trend has changed in 2018 reinforcing the hypothesis that more lighter media consumers have taken up SVOD in the last two years. • SVOD consumption is now heavily weighted to NZ SVOD services whereas in 2016 it was more evenly split between NZ and overseas services. Note: TV viewing includes live & time shifted viewing, in and out of home. We’d like to ask you about the different types of entertainment you used yesterday. For each of the following types of entertainment, I’d like you to tell me if you did that activity for 5 minutes of more during the time period I read out. It doesn’t matter if you were also doing something else at the time. Base: All respondents: (2018 n=1,414; SVOD home n=790) Glasshouse Consulting May 2018 SLIDE 41 uzo .g-blossh: As a result of the decline in reach of linear TV overall, there have been slight but consistent declines in the daily reach of many TV channels, and no SKY TV channel shows increased reach since 2016. SKY Movies channels show the biggest decline, while Duke shows an increase. TVNZ 1, Three, and TVNZ 2 continue to be in the top 10 most popular channels, sites or stations. DAILY REACH OF TV CHANNELS % OF ALL NZERS 2014 2016 2018 TVNZ 1 Three TVNZ 2 Prime SKY Sport 1, 2, 3, 4, 5 or ESPN Choice TV 48% 40% 43% 35% 31% 25% 27% 22% 20% 15% 12% 12% 14% 12% 10% 4% 6% 5% Not measured in 2014 DUKE 1% The Living Channel 4% 4% 3% 3% UK TV Māori TV SKY Movies Premiere/Greats/Extra… National Geographic Food TV Crime & Investigation SKY News/CNN/Fox/BBC The History Channel Not measured in 2014 Bravo Not measured in 2016 Discovery 3% 6% 5% 3% The Edge SKY Kids Channels 5% 4% 3% 1% 2% 3% 7% 6% 2% 3% 2% 2% 2% 1% 2% 2% 2% 2% 2% 3% 2% 3% 2% 2% Not measured in 2014 Not measured in 2016 2% 2% 2% 2% BBC Knowledge 1% 2% 1% Not measured in 2014 Discovery Turbo 1% SOHO Comedy Central Jones Animal Planet The Box Vibe E! Other TV channel 1% 2% 2% 1% 2% 2% 1% 1% 1% 1% 1% 1% 1% 3% 2% 1% 2% 1% 1% 1% 1% 1% 8% 9% 9% txt/txt Indicates significant change at 95% c.i. Q Thinking about yesterday overall, which of the following TV channels did you watch? Base: All respondents: (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 43 TV ads are stable as the most common source of information about NZ made TV shows, although there has again been significant growth in word of mouth (friends & family, and especially social media) and Ondemand sites. The influence of newspapers and magazines continues to fall, with the EPG steady. HOW PEOPLE BECOME AWARE OF NZ MADE TV SHOWS % OF ALL NZERS 2014 2016 2018 61% 61% 62% TV ads for programmes 29% Friends and family Surfing through channels 17% Social media like Facebook The onscreen programme guide / EPG 12% TV sites such as TVNZ Ondemand and 3NOW Other source Don't know 34% 41% 37% 34% 29% 26% 30% 28% Newspapers & magazines like TV Guide Websites other than social media and TV sites 43% 47% 38% 47% 42% 20% 25% 9% 14% 13% 4% 3% 4% 5% 7% 6% txt/txt Indicates significant change at 95% c.i. Q In which of the following ways do you usually become aware of New Zealand made TV shows? Base: (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 44 The daily reach of Ondemand overall (19%) has not increased significantly since 2016, however TVNZ Ondemand daily reach has increased suggesting that current users have increased their use. This is reinforced by the significant change in the way Ondemand is used, with a significant increase in the audience using it as a content source rather than for catch up. DAILY REACH OF NZ ONDEMAND SITES % OF ALL NZERS 2014 2016 2018 WHY USED ONDEMAND YESTERDAY % OF ALL ONDEMAND USERS 2014 2016 2018 7% 10% 13% 4% 3NOW/Three Ondemand 5% 5% 2% SKY Ondemand/SKY Go 5% 4% TVNZ Ondemand Māori TV Ondemand The change in the way Ondemand is being used is driven by younger New Zealanders. In fact among 15-24 year olds there are slightly more who use Ondemand as a source of content as opposed to catching up. 65% 61% 51% Catch up with all or part of a show you had missed on TV Watch a show that you usually watch online and not on TV 2% Both Prime Ondemand 1% 1% 18% 22% 32% 18% 16% 17% Base: All NZ Ondemand users (2014 – n=166; 2016 n-248; 2018 – n=269) Did not watch Ondemand 88% 82% 81% Ondemand reach (19% overall ) is highest among: • Females (22%) • 15-49s (23%) • Young without kids (25%) • Māori (30%), Pacific Island (24%) txt/txt Indicates significant change at 95% c.i. Q Thinking about yesterday overall, which of the following websites did you watch? Thinking about when you used TVNZ, 3NOW, Prime or SKY Ondemand yesterday, did you use it to…? Base: All respondents: (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 45 The daily reach of SVOD has grown significantly again since 2016 – more than a third of New Zealanders (37%) watch each day. Growth in the last two years has been driven by the growth of NZ Netflix and to a lesser extent Lightbox and NZ On Screen. Netflix NZ is now the 4th most popular single channel, site or station each day. DAILY REACH OF SVOD SERVICES % OF ALL NZERS 2016 2018 14% Netflix in NZ Lightbox 2% 5% Netflix from overseas 5% 5% NZ On Screen 1% 4% Neon Amazon Prime Vodafone TV BBC iPlayer Another site 1% 2% 1% 27% • 54% of NZers have access to SVOD overall. • 30% of NZers now watch a NZ SVOD service each day, compared to 17% in 2016. • 16% of NZers watch an overseas SVOD service each day, compared to 14% in 2016. • Most likely to use Netflix NZ: − 15-34s (44%) 1% 1% › Students (46%) › Flatting (40%) − Double income couples, no kids (41%) − Families (33%) − 4+ people homes (36%) 6% 4% txt/txt Indicates significant change at 95% c.i. Q Thinking about yesterday overall, which of the following websites/services did you use to watch TV shows? Base: All respondents: (2016 - n=1,404; 2018 – n=1,414) New question in 2016. Glasshouse Consulting May 2018 SLIDE 46 YouTube and Facebook continue to dominate New Zealanders’ choice of online video sites, with YouTube and NZ Herald showing significant growth in daily reach since 2016. DAILY REACH OF ONLINE VIDEO SITES % OF ALL NZERS 2016 2018 35% YouTube or Vimeo 28% 32% Facebook 9% 12% Stuff 6% NZ Herald Buzzfeed 2% 2% Radio NZ 1% 2% Newsroom 1% Spinoff 1% Wireless 1% Another site 42% 11% 3% 4% The profiles of the two most popular sites are very similar except the difference in males and females, and also ethnicity. Most likely to view YouTube/Vimeo: • Males (49%) • 15-39s (66%) − Students (74%); Flatting (53%) • Families (55%) • Auckland (49%) • 3+ people homes (55%) • Blue collar workers (49%) • Asian (63%) • Pacific Island (50%) Most likely to view Facebook: • Females (35%) - Home-maker (49%) • 15-39s (50%) − Students (48%); Flatting (53%) • Families (40%) • 3+ people homes (43%) • Māori (43%) • Pacific Island (42%) New question in 2016. txt/txt Indicates significant change at 95% c.i. Q Thinking about yesterday overall, which of the following websites did you use to watch video? Base: All respondents: (2016 - n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 47 User generated clips are by far the most popular type of video to watch online, followed by news content. This varies a little by which site is being viewed. On YouTube (71% of viewers) and Facebook (76%) user generated content is most popular, while on Stuff (82%) and NZ Herald (90%) more viewers are watching news content. TYPES OF ONLINE VIDEO WATCHED % OF NZERS WHO WATCH ONLINE VIDEO Short clips made by other users of that site 68% News content 45% Live stream 15% Webseries (short series made for online viewing) 15% Interactive documentary Virtual reality or augmented reality content Other type Video Type YouTube/ Vimeo Facebook Stuff NZ Herald User generated 71% 76% 69% 61% News content 42% 53% 82% 90% 8% 5% % of users of each site 18% New question in 2018. Q Which of the following types of video did you watch on these sites? Base: All Who watch online video (2018 – n=736) Glasshouse Consulting May 2018 SLIDE 48 As in 2016, there has been little significant change in the daily reach of radio stations. The exception is the decline in daily reach of RNZ National. Since 2014 there has also been a decline in audience fragmentation on radio with “other station” declining significantly. DAILY REACH OF ALL RADIO STATIONS % OF ALL NZERS 2014 2016 2018 Newstalk ZB The Edge ZM 8% 7% 8% Hauraki iHeartRadio 10% 8% 7% Radio Live 8% 7% 6% Magic More FM 4% 6% 5% The Rock 5% 5% 5% Radio New Zealand Concert The Breeze 3% 5% 5% Rhema Classic Hits/The Hits Mai FM Sound Q 12% 13% 9% RNZ National 6% 5% 4% Flava Radio Sport 3% 5% 4% 3% 4% 4% George FM 3% 3% 3% 2% 2% 3% 4% 3% 2% 2% 1% 2% 2% 1% 2% 2% 1% 1% 2% 2% 3% 1% 1% 1% 1% Other • Age is, not surprisingly, the biggest differentiator of station choice. • There are also some differences by gender: − Males are more likely to listen to RNZ National (11%). − Females are more likely to tune into The Edge (8%) and ZM (8%). 14% 12% 10% “Other” station shows a significant decline since 2014. txt/txt Indicates significant change at 95% c.i. Thinking about yesterday overall what New Zealand radio stations did you listen to either on radio or online? Base: All respondents: (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 49 The use of Spotify has increased significantly since 2016 and it is now more popular than YouTube for listening to music. Other sites have not increased significantly since 2016. DAILY REACH OF MUSIC SITES % OF ALL NZERS 2016 2018 13% Spotify 23% 20% 19% YouTube or Vimeo Apple Music 5% 4% Soundcloud 2% 2% Another site 2% 3% The profiles of Spotify and YouTube users are slightly different with Spotify users being younger and more affluent. Most likely to use Spotify: • 15-34s (45%) and especially 15-24s (54%) − students (58%); flatting (38%) • Higher income earners ($80k+ 26%) • 4+ people homes (36%) • Māori (28%) • Asian (29%) Most likely to use YouTube: • 15-39s (33%) − students (37%) • Families (26%) • Unemployed (41%) • 3+ person homes (27%) • Māori (26%) • Pacific (40%) • Asian (30%) txt/txt Indicates significant change at 95% c.i. Q Thinking about yesterday overall, which of the following websites did you use to watch video? Base: All respondents: (2016 - n=1,404; 2018 – n=1,414) New question in 2016. Glasshouse Consulting May 2018 SLIDE 50 Where are the hard to find audiences? DAILY REACH ALL 15-24s DAILY REACH ALL ASIAN NEW ZEALANDERS YouTube (video) 68% YouTube (video) 63% Facebook (video) 54% Facebook (video) 32% Spotify 54% YouTube (music) 30% Spotify 29% Netflix in NZ 47% YouTube (music) 36% TVNZ 2 24% TVNZ 1 23% TVNZ Ondemand 19% Three 18% The Edge 14% TVNZ 1 26% TVNZ 2 23% Netflix in NZ 23% Three NZ Herald (online video) 15% 11% The Edge 9% Mai FM 8% ZM 11% Stuff (online video) 8% Mai FM 10% TVNZ Ondemand 7% Q Base: 15-24s (n=264); Asian (n=170) Glasshouse Consulting May 2018 SLIDE 51 Where are the hard to find audiences? DAILY REACH ALL MĀORI NEW ZEALANDERS DAILY REACH ALL PACIFIC ISLAND NEW ZEALANDERS YouTube (video) 43% YouTube (video) Facebook (video) 43% TVNZ 1 42% Facebook (video) 42% YouTube (music) 40% TVNZ 1 38% Netflix in NZ 32% Spotify 28% Three 26% YouTube (music) 50% Netflix in NZ 34% 26% Three 32% TVNZ 2 25% TVNZ 2 30% TVNZ Ondemand 23% Spotify 18% Mai FM 17% TVNZ Ondemand 16% SKY Sport 15% NZ Herald (online video) 12% Stuff (online video) 12% Prime 11% SKY Sport 11% Māori TV Ondemand 11% Māori TV 10% Mai FM 9% Prime SKY Ondemand/SKY… NZ Herald (online video) 10% 10% 10% Q Base: Māori (n=202); Pacific (n=68) Glasshouse Consulting May 2018 SLIDE 52 "123.41, While there has been a rapid shift to listening to streamed music from physical formats, there has been no significant change in how New Zealanders find new music. Radio and word of mouth remain the most common sources. However the influence of streamed music has increased gradually since 2014, while newspapers and magazines have declined. SOURCES OF AWARENESS OF NEW MUSIC % OF ALL NZERS 2014 2016 2018 NZ radio stations broadcast on radio or online Friends or family Streaming services (Eg. YouTube, Spotify, SoundCloud, iTunes) Music TV stations Live performances Newspapers & magazines In shops Websites such as podcasts, music review sites, blogs, gig guides Overseas radio stations online Some other way None, don't often hear new music Q 60% 61% 60% 58% 60% 60% 36% 47% 50% 25% 23% 21% 18% 20% 19% 25% 23% 19% 14% 18% 16% 11% 8% 11% 6% 5% 5% 3% 8% 6% 10% 10% 10% Given the growth in use of Spotify it is perhaps surprising there hasn’t been corresponding growth in this media as a source of new music. In which of the following ways, if any, do you usually find out about new music? Base: All respondents: (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 54 More than 80% of New Zealanders have now listened to music online. Growth since 2016 has been driven mainly by Spotify and to a lesser extent iHeartRadio, though YouTube remains the most popular site. About one in six New Zealanders (17%) listen to music on Spotify or YouTube every day. EVER USE TO LISTEN TO MUSIC % OF ALL NZERS 2014 2016 2018 60% 66% 70% YouTube/Vimeo 23% Spotify 11% 18% 25% iHeartRadio Apple Music 23% 22% 12% 16% 18% SoundCloud Rova Not measured in 2014 Not measured in 2016 Amazon Music Unlimited Not measured in 2014 Not measured in 2016 Tidal Not measured in 2014 Not measured in 2016 Other None of these 40% 52% WEEKLY REACH % OF ALL NZERS Spotify iHeartRadio Apple Music SoundCloud Rova 6% 1% 1% 4% 9% 6% 31% 23% 17% 38% 47% 46% YouTube/Vimeo 12% 21% 32% 5% 6% 9% 17% every day 17% every day 9% 8% 5% 5% 4% Not measured in 2014 Not measured in 2016 3% Tidal = 0% Amazon Music = 0% While nearly all New Zealanders have now listened to music online, not surprisingly the heaviest users are the younger generation. • Just 2% of 15-39s have never listened to music online. • 46% of 15-24 year olds listen to Spotify every day • 34% of 15-24 year olds listen to music on YouTube every day. • 49% of 65+ year olds have never listened to music online txt/txt Indicates significant change at 95% c.i. Q Which of the following have you ever listened to music on?; Q13d: About how often do you listen to…? Base: All respondents: (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 55 . bless . "2 There have again been slight increases in the number of people who have ever used unauthorised platforms, and compared to 2014 there has now been a small but significant increase in the proportion who have ever engaged in these activities. However there has been no increase in the frequency of these activities. EVER USED UNAUTHORISED PLATFORMS % OF ALL NZERS WEEKLY REACH OF UNAUTHORISED PLATFORMS % OF ALL NZERS 2014 2016 2018 29% Downloaded songs or albums for free from the internet Streamed, downloaded or torrented TV shows from an overseas site Used a VPN so you can watch shows on an overseas website like Netflix or BBC iPlayer or Hulu Downloaded songs or albums for free from the internet 30% 34% 18% Streamed, downloaded or torrented TV shows from an overseas site 25% 29% 8% Used a VPN so you can watch shows on an overseas website like Netflix or BBC iPlayer or Hulu 12% 13% 63% Never done any of these 58% 54% Q 4% 4% 5% 7% 11% 8% 3% 6% 5% Incidence of ever engaging in these activities is highest among: • 15-34 year olds • males Which of the following have you ever done? About how often would you…? Base: All respondents: (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 57 There has been no significant change over time in the incidence or frequency of using unauthorised platforms among 15-34 year olds. EVER USED UNAUTHORISED PLATFORMS % OF ALL 15-34s WEEKLY REACH OF UNAUTHORISED PLATFORMS % OF ALL 15-34s 2014 2016 2018 53% Downloaded songs or albums for free from the internet 50% 52% 38% Streamed, downloaded or torrented TV shows from an overseas site Used a VPN so you can watch shows on an overseas website like Netflix or BBC iPlayer or Hulu 48% 47% 17% 20% 21% Downloaded songs or albums for free from the internet Streamed, downloaded or torrented TV shows from an overseas site Used a VPN so you can watch shows on an overseas website like Netflix or BBC iPlayer or Hulu 11% 8% 8% 16% 23% 14% 6% 10% 7% 31% Never done any of these 31% 32% Q Which of the following have you ever done? About how often would you…? Base: All 15-34s: (2014 - n=425; 2016 - n=460; 2018 – n=458) Glasshouse Consulting May 2018 SLIDE 58 ?GIosshouse {My There has been a gradual increase in the incidence of New Zealanders ever looking for extra online material for a TV show – with a significant increase between 2014 and 2018. This behaviour continues to be driven by younger New Zealanders. EVER LOOKED FOR EXTRA MATERIAL ONLINE % OF ALL NZERS Looked for extra material online Have not looked for extra material 2014 2016 22% 78% 2018 27% 25% 75% 73% Age is the main differentiator of involvement with this activity: • 15-29s (35%) are more likely to have ever looked for extra material, including; − Students (37%) − Flatting (40%) This profile has not changed since 2016. Q Some TV shows have extra material available to watch or read online. This material might include short videos not shown on TV, background to characters in the show, or actors’ biographies. Have you ever looked for extra material about a TV show online? Base: All respondents: (2014 - n=1,400; 2016 - n=1,404) Glasshouse Consulting May 2018 SLIDE 60 There has been no significant change in the frequency or weekly reach of looking for extra online material for TV shows. Approximately one in two engage with this content once a month or more. FREQUENCY OF LOOKING FOR EXTRA MATERIAL ONLINE % OF PEOPLE WHO HAVE EVER LOOKED FOR EXTRA MATERIAL 2014 2016 2018 Once or twice only Once a year or less Once every 6 months 8% 15% 11% 5% 3% 6% 13% 10% 10% Once every 2 or 3 months 18% 18% 18% 35% 30% 34% Once or twice a month Once a week or more 21% 23% 20% There are no significant trends identifying New Zealanders who are more or less likely to engage more frequently with extra online material – and this includes among younger New Zealanders. Equates to 6% weekly reach overall. Compared to 6% in 2016. txt/txt Indicates significant change at 95% c.i. Q About how often would you search for extra material about a TV show? Base: All who have ever looked for extra material (2014 - n=309; 2016 - n=356; 2018 – n=383) Glasshouse Consulting May 2018 SLIDE 61 bless "2 About one in five New Zealanders ever use captioning and 3% ever use audio description when watching TV. Use of captioning has increased again since 2016, though the increase this time is not quite statistically significant. EVER USE CAPTIONING OR AUDIO DESCRIPTION WHILE WATCHING TV % OF ALL NZERS 2014 2016 2018 11% Captioning 17% 21% 2% Audio Description 3% 3% The group most likely to use captioning are people of Asian ethnicity (47%). However other groups who show a higher incidence of use are: • 15-24s (33%) and students (32%) • Families (28%) and 3+ person homes (26%) • Aucklanders (27%) txt/txt Indicates significant change at 95% c.i. Q Do you ever use audio description while you are watching TV? By audio description we mean the voice-over service that describes what is happening visually on the TV. Do you ever use captioning while you are watching TV? By captioning we mean English subtitles so you can read what people are saying if you are having trouble hearing them. Base: All respondents: (2014 – n=1,400; 2016 - n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 63 New Zealanders use captioning for many different reasons, of which being hard of hearing or deaf is just one. Accents, language difficulties or not disturbing others in the room also drive significant amounts of usage of captioning. REASONS FOR USING CAPTIONING % OF ALL USERS Difficult to understand accents on some shows 20% Hard of hearing/have trouble hearing what is said on TV 19% Watching TV on mute so you don't disturb other people in the room 8% Watching TV late at night 9% English is not your first language/language difficulties 24% 22% 15% 10% 12% 6% Deaf 2% 3% Some other reason 30% 4% Main reason Another reason New question in 2018 Q Which of the following best describes the reasons why you use the captioning service when watching TV? And which one of these is your main reason for using the captioning service when watching TV? Base: All users of captioning (n=304) Glasshouse Consulting May 2018 SLIDE 64 N20 9kgloss {my TVs and PCs/laptops are unchanged as the most common devices, but smartphones have overtaken radios. All SVOD services have increased significantly as have smart TVs and devices like Chromecast, giving more people access to online media on their TV screen. DEVICES AND SERVICES PERSONALLY OWN OR HAVE ACCESS TO % OF ALL NZERS 2014 2016 2018 93% 84% 88% Working TV PC or laptop for personal use 64% Smartphone UFB 76% 82% FreeviewPlus/MyFreeviewPlus Lightbox Games console through which you watch Ondemand Not measured in 2014 24% 49% Not measured in 2014 31% SKY TV Smart TV connected to Internet Chromecast 46% 53% 57% Tablet such as an iPad Netflix 82% 81% 83% 86% 77% 78% Working radio 43% 39% 21% 31% 39% 57% 50% 48% 40% 36% PVR (MySKY, MyFreeview) NZ Netflix is now in 49% of NZ homes and achieves a daily reach of 27%. However Lightbox is in 19% of NZ homes but only achieves a daily reach of 5%. Apple TV Neon Vodafone TV Not measured in 2014 17% 28% Not measured in 2014 16% 20% Not measured in 2014 6% 19% Not measured in 2014 16% 17% Not measured in 2014 11% 10% Not measured in 2014 4% 7% Not measured in 2014 Not measured in 2016 4% txt/txt Indicates significant change at 95% c.i. Q Which of the following, if any, do you personally own or have daily access to? Base: All respondents: (2014 - n=1,400; 2016 - n=1,404; 2018 – n=1,414) Glasshouse Consulting May 2018 SLIDE 66 There are some large technological divides between different parts of the NZ population and this influences media consumption. • • The primary differentiator of who is more or less likely to own or have access to different technologies is again age and life stage. However the divide between generations in terms of access to technology is not as clear cut as in media consumption because factors such as socio-economic level impact on access. › The chart on the next page summarises the differences between under 40 and over 45 year olds. − Younger New Zealanders are more likely to own or have daily access to smartphones, tablets, smart TVs connected to the internet, UFB, Netflix, and Chromecast. − Older New Zealanders are more likely to own or have daily access to a working TV, radio, SKY TV, and PVR. − Overall the gap between older and younger New Zealanders in terms of access to technology has closed slightly since 2016 as more older New Zealanders adopt digital technology. • There are also some secondary differentiators: − Socio-economic level › New Zealanders from higher socio-economic levels are more likely to own or have daily access to; SKY TV, smartphones, tablets, PVR, smart TV connected to the internet, UFB, and Chromecast. The skew towards higher socio-economic homes having greater access to SKY TV is a new trend since 2016 and reflects lower socio-economic groups being more likely to stop subscribing to SKY TV. − Ethnicity › • This reflects the difference in Asian New Zealanders’ access to technology. This group are more likely to own or have access to smartphones, tablets, smart TV connected to the internet, UFB, Netflix, and Chromecast. Note there are few significant differences between males and females in terms of access to technology. Glasshouse Consulting May 2018 SLIDE 67 The differences in access to technology between younger and older New Zealanders enables greater consumption of digital media among younger age groups. However older New Zealanders have adopted some technology faster than younger groups in the last two years – particularly smartphones, tablets, UFB, Netflix and Chromecast - enabling them to close the generation gap in terms of online media consumption. DEVICES AND SERVICES PERSONALLY OWN OR HAVE ACCESS TO 15-39s VS. 45+ YEAR OLDS % OF ALL NZERS 15 – 39 yrs 45+ yrs 84% Working TV PC or laptop for personal use 79% Smartphone 72% 72% Working radio 56% 57% Tablet such as an iPad Netflix 34% UFB 38% 32% SKY TV Smart TV connected to Internet PVR (MySKY, TiVo, MyFreeview) Chromecast Lightbox Apple TV Neon Q 22% 24% 16% 13% 35% 35% 37% 34% 92% 89% 94% 84% 66% 49% 46% 44% 8% 9% 5% Which of the following, if any, do you personally own or have daily access to? Base: All respondents: (15-39s n=577; 45+ year olds n=690) Glasshouse Consulting May 2018 SLIDE 68 APPENDIX 2018 NZ (by What is the daily profile of consumers of different media? MEDIA LESS LIKELY TO ENGAGE MORE LIKELY TO ENGAGE Linear TV • 15-39 year olds (45%) − students (50%) − flatting (40%) • Double income couples, no kids (48%) • Pre-school families (44%) • 4+ person homes (57%) • Asian (49%) • SVOD homes (61%) • Netflix homes (60%) • 45+ year olds (81%) − retirees (87%) − empty nesters (80%) • 1-2 person homes (74%) • Unemployed (74%) • Sky TV homes (85%) • PVR homes (84%) Ondemand • 55+ year olds (12%) − retirees (11%) − Older, no kids at home (13%) • Asian (9%) • • • • • • • NZ SVOD • 45+ year olds (18%) − 60+ year olds (12%) − empty nesters (21%) − older, living alone (15%) − Retiree (13%) − Single person homes (20%) • Lower income earners (under $50k = 23%) • Asian (24%) • 15-44 year olds (41%) − 15-29s (45%) − students (47%) − flatting (41%) • Double income couples, no kids (49%) • Chromecast (40%) • Smart TV connected to internet (41%) 66% daily reach overall 19% daily reach overall 30% daily reach overall Base: Female (22%) Double income, no kids couples (29%) Unemployed (33%) Māori (30%) UFB (23%) Smart TV connected to internet (23%) Games console - can view Ondemand (30%) Glasshouse Consulting May 2018 SLIDE 70 What is the daily profile of consumers of different media? MEDIA LESS LIKELY TO ENGAGE MORE LIKELY TO ENGAGE Online Video • Females (49%) • 45+ year olds (32%) − 60+ year olds (22%) − retirees (19%) − empty nesters (29%) − older, living alone (25%) − 1-2 person homes (35%) • Males (56%) • 15-44 year olds (72%) − 15-24s (78%) − students (81%) − flatting (74%) • Young singles or couples, no kids (67%) • Families (64%) − 4+ people homes (69%) • Home-makers (60%) • Blue collar workers (61%) • Asian (68%) • Pacific Island (61%) • Aucklanders (59%) • Smartphone (58%) • UFB (59%) • Smart TV connected to internet (60%) • Chromecast (65%) • SVOD homes (63%) Radio • 15-29 year olds (44%) − students (41%) • Home-makers (46%) • Unemployed (40%) • Young singles or couples, no kids (45%) • Asian (46%) • 65+ year olds (66%) − empty nesters and older singles (61%) − retirees (62%) • Upper white collar workers (61%) • SKY TV homes (61%) Online NZ Radio • 60+ year olds (6%) − retirees (6%) • 30-44 year olds (13%) • High income earners ($80k+ = 11%) • Young singles or couples, no kids (16%) 52% daily reach overall 55% daily reach overall 9% daily reach overall Base: Glasshouse Consulting May 2018 SLIDE 71 What is the daily profile of consumers of different media? MEDIA LESS LIKELY TO ENGAGE MORE LIKELY TO ENGAGE Music Streaming • 50+ year olds (12%) − 65+ year olds (9%) − retirees (7%) − empty nesters and older singles (12%) • 1-2 person homes (21%) • 15-39 year olds (67%) − 15-24s (76%) − students (83%) − flatting (63%) • 4+ people homes (57%) • Young singles and couples, no kids (58%) • Families with kids aged 6 or more (57%) • Unemployed (51%) • Asian (56%) • Pacific Islanders (49%) • Māori (47%) • Smartphone (44%) • UFB (47%) • Chromecast (52%) • Smart TV connected to internet (45%) • SVOD homes (51%) • Games console – can view Ondemand (63%) Music on CDs/iPod • No consistent significant trends. Equal appeal across all groups. • No consistent significant trends. Equal appeal across all groups. 39% daily reach overall 20% daily reach overall Podcasts 7% daily reach overall Base: • • • • 35+ year olds (5%) Pacific Island (3%) Māori (5%) Asian (5%) • 15-34s (13%) − students (12%) − Young singles or couples, no kids (12%) Glasshouse Consulting May 2018 SLIDE 72 As with media consumption overall, the 2016 audience profiles of the main FTA channels are most strongly differentiated by age/life stage. There are also consistent but non-significant skew towards more females watching TVNZ 1, Three and TVNZ 2. TVNZ 1 (43% overall) LESS LIKELY TO WATCH − students (24%) − flatting (20%) • Double income couples, no kids (29%) • Families with school-aged kids (22%) • Aucklanders (39%) • Asian (26%) LESS LIKELY TO WATCH MORE LIKELY TO WATCH • 50+ (63%) • 15-39s (25%) Three (25% overall) − retirees (73%) − empty nesters and older singles (62%) − 1-2 person homes (53%) • 15-24s (18%) − students (18%) − flatting ( 17%) Three continues to have the broadest appeal of the main FTA channels. PRIME (12% overall) TVNZ 2 (20% overall) • 60+ year olds (12%) − retirees (12%) − empty nesters and older couples (14%) • Higher income earners ($120k+ = 17%) Base: • 45-59s (36%) • PVR homes (37%) • Mid-income earners ($20$50k = 55%) • South Islanders (48%) • SKY TV homes (54%) LESS LIKELY TO WATCH LESS LIKELY TO WATCH MORE LIKELY TO WATCH • • • • • 3+ person homes (23%) Home-makers (35%) Young singles, no kids (33%) Solo parents (36%) Unemployed (38%) MORE LIKELY TO WATCH 15-39s (6%) Students (4%) 4+ people homes (5%) Families with pre-school kids (3%) • Asian (5%) • • • • MORE LIKELY TO WATCH • 45+ (18%) − retirees (22%) − Empty nesters and older singles (20%) − 1 person homes (19%) Glasshouse Consulting May 2018 SLIDE 73 Consumption of unauthorised media continues to be driven by younger New Zealanders, especially 15-29s. There has been little significant change in these trends since 2016. MEDIA LESS LIKELY TO ENGAGE MORE LIKELY TO ENGAGE Download songs or albums for free • 50+ year olds (12%) − retirees (13%) − empty nesters & older singles (20%) − 1 person homes (19%) • 15-29 year olds (54%) − students (53%) − flatters (51%) • 4+ people homes (44%) • Chromecast (49%) • Females (25%) • 50+ year olds (11%) − retirees (6%) − empty nesters & older singles (11%) • Pacific Island (21%) • Males (32%) • 15-39 year olds (45%) − students (38%) − flatting (54%) • Double income couples, no kids (61%) • High income earners ($120k+ = 37%) • 3+ people homes (36%) • Asian (34%) • UFB (36%) • Chromecast (38%) • SVOD home (36%) • 60+ year olds (4%) − retirees (3%) − empty nesters & older singles (5%) − 1 person homes (5%) • 15-29 year olds (22%) − students (24%) − flatters (22%) • Double income couples, no kids (28%) • 4+ person homes (19%) • Chromecast (24%) 34% ever done overall Stream, torrent, or download TV shows 29% ever done overall Use VPN to watch shows on an overseas website 13% ever done overall Base: Glasshouse Consulting May 2018 SLIDE 74 What is the profile of users of key technology? MEDIA LESS LIKELY TO OWN/ACCESS Working TV • • • • Radio 78% overall • 30-44s (69%) − flatting (64%) • Single & double income couples, no kids (66%) • Home-makers (67%) • Families with pre-school kids (69%) • Asian (64%) • Pacific Island (72%) • 65+ year olds (89%) − retirees (87%) − empty nesters & older singles ( 85%) • South Islanders (82%) • SKY TV homes (85%) SKY TV • 25-39 year olds (29%) − flatting (18%) • Single & double income young couples, no kids (17%) • Home-makers (30%) • Asian ( 19%) • 55+ year olds (50%) − empty nesters (51%) − retirees (49%) • Families with kids 15+ (48%) • Higher income earners ($80k+ = 47%) • Māori (50%) • Pacific Island (53%) • PVR homes (70%) PVR 36% • 30-39s (31%) − flatting (22%) • Young singles & couples, no kids (22%) • Low income earners (up to $20k = 25%) • 1 person homes (24%) • Asian (21%) • • • • • • 88% overall 39% overall Base: Flatting (70%) Young single, no kids (81%) Lowest income earners (up to $20k = 80%) Asian (71%) MORE LIKELY TO OWN/ACCESS • • • • • Retirees (92%) Empty nesters & older singles (92%) Unemployed (92%) Māori (92%) Pacific Island (92%) 55-64 year olds (45%) High income earners ($80k+ = 46%) Upper white collar workers (43%) Families with kids 15+ (49%) 3+ person homes (41%) Pacific Island (45%) Glasshouse Consulting May 2018 SLIDE 75 What is the profile of users of key technology? MEDIA LESS LIKELY TO OWN/ACCESS MORE LIKELY TO OWN/ACCESS Smartphone • 65+ year olds (57%) − retirees (55%) − empty nesters & older singles (71%) − single person homes (68%) • 15-39 year olds (94%) − students (96%) • Double income young couples, no kids (93%) • Mid-high income earners ($50k+ = 91%) • Upper white collar workers (89%) • 3+ person homes (89%) • Asian (90%) Tablet 57% overall • 15-24s (48%) − flatting (48%) − students (49%) • Young singles and couples, no kids (47%) • Retirees (50%) • Older singles (47%) • Unemployed (42%) • Low income earners (up to $30k = 40%) • • • • • 35-49 year olds (65%) Upper white collar workers (71%) High income earners ($80k+ = 66%) Pre-school families (70%) Asian (63%) Smart TV connected to internet • 65+ year olds (27%) − retirees (26%) − older singles (24%) − single person homes (26%) • Low income earners (up to $30k = 25%) • Flatting (16%) • Solo parents (31%) • • • • • Males (42%) 25-39 year olds (46%) Upper white collar employees (48%) High income earners ($80k+ = 50%) Families of all types (46%) − 3+ person homes (45%) Asian (48%) Aucklanders (45%) Own tablet (48%) PVR homes (50%) UFB (54%) Chromecast (52%) SVOD homes (52%) 82% overall 39% overall Base: • • • • • • • Glasshouse Consulting May 2018 SLIDE 76 What is the profile of users of key technology? MEDIA LESS LIKELY TO OWN/ACCESS MORE LIKELY TO OWN/ACCESS UFB 43% overall • 65+ year olds (29%) • 15-24 year olds (52%) − retirees (28%) − empty nesters & older singles (34%) − Single person homes (28%) • Home-makers (27%) • Low income earners (up to $30k = 29%) • Solo parents (30%) Netflix 49% overall Chromecast 28% overall Base: − students (53%) − flatting (52%) • High income earners ($120k+ = 55%) • Families with kids 15+ (57%) − 3+ person homes (49%) • • • • PVR homes (54%) Smart TV connected to internet (60%) Chromecast (57%) SVOD homes (525) • 60+ (23%) • 15-34s (69%) • Low income earners (up to $50k = 35%) • • • • • • • • • • • Females (25%) • 65+ year olds (17%) • Males (31%) • 15-29s (36%) − retirees (21%) − empty nesters & older singles (29%) − single person homes (26%) − retirees (16%) − older singles (14%) − single person homes (16%) − students (63%) − flatting (65%) − 3+ person homes (59%) Double income young couples, no kids (68%) Families with kids 15+ (63%) Mid-high income earners ($50k+ = 59%) Employed (54%) Māori (55%) Pacific Island (56%) PVR homes (58%) UFB (62%) Smart TV connected to internet (68%) Chromecast (71%) − students (36%) − flatting (39%) • • • • • • Upper white collar employees (33%) High income earners ($80k+ = 34%) Young singles & couples, no kids (36%) PVR homes (35%) UFB (37%) SVOD homes (40%) Glasshouse Consulting May 2018 SLIDE 77