We explore what consumer preferences are towards OTT streaming services, how tolerant viewers are to ads and factors that contribute to subscriber churn - by Cindy Chan, Head of Greater China, YouGov

1. HONG KONG VIDEO STREAMING FORUM
8 March 2018
brought to you by Brightcove

2. AGENDA
9:35 AM – 10:00 AM
Market Research: Insights into OTT Subscription, Ads &
the Churning Point
Cindy Chan, Head of Greater China, YouGov
10:00 AM – 10:20 AM
The Future of TV & Online Advertising
Greg Armshaw, Head of Media, Asia, Brightcove
10:30 AM – 11:00 AM
Brand Safety, Ad Fraud & Viewability
Amy Ho, Business Development Director, Integral Ad Science
11:00 AM – 11:30 AM
Panel of all Speakers & Questions from the Audience
11:30 AM – 12:00 PM
End & Networking Sessions

3. CINDY CHAN
Head of Greater China
YouGov

4. Video Streaming Forum 2018
Insights into OTT Subscriptions, Ads and Churn
Cindy Chan, Head of Greater China, YouGov
March 8th, 2018

5. Slide 5
INTRODUCTION

6. Is a global
technology driven
consumer insights
company
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Our core offering of opinion data
is derived from our highly
participative panel of 5 million
people worldwide who provide
us with live, continuous streams
of data.

7. We manage a
community of
5+ million
panelists worldwide,
and we keep them
engaged through a
wide range of topics
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8. Slide 8
What will we
cover today?
We wanted to learn more about consumer
usage, perceptions and ad tolerance as
it relates to online video streaming
services in Hong Kong…
… so we asked our panel

9. Slide 9
Our Approach
Market Hong Kong
Sample Size 1,116
Field Work Dates Feb 6th – Feb 14th 2018
Audience Online representative sample
Methodology Online panel

10. Slide 10
Our Approach
What we asked our panelists about:
Viewing
Consumption
Habits
Usage &
Consideration
Barriers to
Usage
Motivators to
Usage
Payment
Preference &
Ad Tolerance

11. Slide 11
THE RESULTS
TV & Movie Consumption Habits

12. Slide 12
Time Spent on TV Shows / Movies
On average, how many hours a week do you spend watching TV shows/movies?
5.4%
33.9%
25.4%
16.4%
8.5%
10.4%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Less than 1
hour
1 to 5 hours 6 to 10 hours 11 to 15 hours 16 to 20 hours More than 20
hours
Most consumers in Hong
Kong (33.9%) watch
between 1-5 hours of
TV/Movies per week,
followed by 25.4% who
watch between 6-10
hours per week.
Asked to ALL respondents | n=1,116

13. Slide 13
Time Spent on TV Shows / Movies
On average, how many hours a week do you watch TV shows and/or movies? BY AGE
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
18 - 29 30 - 44 45 +
Less than 1 hour 1 to 5 hours 6 to 10 hours 11 to 15 hours 16 to 20 hours More than 20 hours
Older demographics in
Hong Kong, particularly
those who are 45+, are
more likely to spend 11
hours or more per
week watching TV or
Movies
Asked to ALL respondents | n=1,116

14. Slide 14
Types of TV Shows/ Movies
When it comes to watching TV/Movies, which genres do you watch most often?
Male Female
18-29 30-44 45+ 18-29 30-44 45+
Comedy Comedy Action Drama Comedy Drama
Drama Action Sci-Fi Comedy Drama Comedy
Sci-Fi Drama News Sci-Fi Romance News
Action Sports Comedy Romance News Action
Age
Asked to ALL respondents | n=1,116
Notably, genre
preferences are
much more
constant for
females in Hong
Kong, while the
top 3 genres for
males tend to be
more variable as
they grow older

15. Slide 15
THE RESULTS
OTT Usage & Consideration

16. Slide 16
Usage of OTT Video Service
Do you currently subscribe to a paid OTT video service?
27.6%
17.9%
50.4%
4.1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Yes, I currently subscribe No, I don’t subscribe but I
have in the past
No, I don’t subscribe and I
have never in the past
I’m not sure
Users
Lapsers
Never Users
Adoption of OTT in
Hong Kong is low,
with only 27.6% of
respondents
indicating that they
currently subscribe.
18% of respondents
indicated that they
have lapsed.
Asked to ALL respondents | n=1,116

17. Slide 17
Current Subscription
You mentioned that you currently subscribe to a paid OTT video service. How many paid services do
you currently use?
56.2%
30.8%
7.5%
1.0% 1.6% 2.9%
0%
10%
20%
30%
40%
50%
60%
1 service 2 services 3 services 4 services 5 services or
more
I’m not sure
Among current
users in Hong Kong,
most (56%) only
subscribe to 1 OTT
service. While
another 31% in Hong
Kong reported
subscribing to 2
services at the same
time.
Asked to those who ARE current OTT subscribers | n=308
Current users

18. Slide 18
Consideration in the Next 3 Months
Are you considering a subscription to a paid OTT video service in the 3 months? BY USER SEGMENT
LapserNever User
6.4%
63.5%
30.1%29.5%
36.5% 34.0%
0%
10%
20%
30%
40%
50%
60%
70%
Yes No I’m not sure
Notably,
consideration is
much higher among
the lapser segment.
Suggesting that
they’re still open to
such services and
didn’t abandon due
to an overly
negative experience
Asked to those who ARE NOT current OTT subscribers | n=762
Non-User
Lapser

19. Slide 19
Consideration Among Non Current Users
You mentioned that you are considering a subscription to a paid OTT video service. How many paid services
are you considering a subscription to?
47.4%
34.7%
11.6%
1.1% 1.1%
4.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1 service 2 services 3 services 4 services 5 services or
more
I’m not sure
Among the non-users
who said they are
considering a
subscription, these
respondents were more
likely to indicate that
they’re considering up
to 2 OTT subscriptions
from different services
Asked to those who ARE NOT current OTT subscribers but ARE considerers | n=95
Non-User
Lapser

20. Slide 20
Unsubscription
Did you uninstall the app after cancelling or stopping your subscription?
Among the lapsers,
only 23% reported
actively uninstalling
the OTT service app
afer unsubscribing
Asked to those who ARE NOT current OTT subscribers but were in the past (i.e. LAPSER) | n=200
Lapser
XXX

21. Slide 21
THE RESULTS
Motivators & Barriers

22. Slide 22
Reasons for Unsubscribing
You mentioned that you don’t currently subscribe to a paid OTT video streaming service but have in the past? What was
your primary reason for unsubscribing?
23.5%
19.5%
11.5%
11.0%
9.5%
7.5%
5.5%
4.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.5%
I didn’t use it regularly enough to justify the spend
Too expensive
The content I want to watch was available on a legitimate free
I finished watching the video titles I wanted to watch
There was no other content I wanted to watch
The content I want to watch was no longer offered
Content/title selection wasn’t good enough
The content I want to watch was available on a torrent free
Too many ads
I need storage space on my phone for other apps
The sign-up experience was poor
Other (specify)
The video streaming experience was poor
I’m not sure
Among the lapser
segment, the primary
reason for
unsubscribing was that
they simply didn’t use
the platform enough to
justify the spend.
And price was also a
key factor!
Asked to those who ARE NOT current OTT subscribers but were in the past (i.e. LAPSER) | n=200
Lapser

23. Motivators to Usage
Slide 23
You mentioned that you are considering a subscription to a paid OTT video service. Which of the following is
MOST important to you in terms of why you are considering a subscription (Select one)?
33.3%
19.4%
16.7%
13.9%
8.3%
5.6%
2.8%
28.8%
20.3%
16.9%
11.9%
3.4%
1.7%
16.9%
Price
Availability of international TV/movie titles
A recommendation from a family, friend or
colleague
Overall user experience of the platform
The overall size of the content catalogue
Availability of local TV/movie titles
Availability of video content on a mobile device
LapserNever User
Among the non-users
who are considering a
subscription, price was
the single most
important factor.
Notably, the availability
of content on a mobile
device was much more
important to the lapser
segment. Suggesting
that they’re more open
to watching content on
the go.
Asked to those who ARE NOT current OTT subscribers but ARE considerers | n=95
Non-User
Lapser

24. Slide 24
Barriers to Usage
You mentioned that you are not considering a subscription to a paid OTT video service. Can you tell us what is the
primary reason?
Among those who stated
they are not considering a
subscription, most
respondents stated that
the cost of the platform
was the primary reason.
29.8%
19.8%
14.0%
11.6%
6.5%
2.3%
2.3%
2.8%
1.2%
1.4%
1.2%
Too expensive
I just don’t see the value
I don’t know
I don’t watch that much video content
I’m happy enough with my existing pay TV subscription
Lack of availability of local TV/movie titles
I’ve heard negative reviews from a family, friend or colleagues
Lack of availability of video content on a mobile device
The overall size of the content catalogue
Lack of availability of international TV/movie titles
Poor user experience of the platform
The 2nd highest reason for
not considering an OTT
subscription was that the
respondents don’t see the
value. Suggesting the
value proposition of OTT
isn’t clear.
Asked to those who ARE NOT current OTT subscribers and ARE NOT considering | n=430
Non-User
Lapser

25. Slide 25
THE RESULTS
Payment Preference & Ad Tolerance

26. Ad Tolerance
Slide 26
Generally speaking when watching video content online how many ads do you feel you can tolerate per ad break?
32.5% 33.3%
16.2%
5.7%
2.0%
4.1%
6.1%
0%
5%
10%
15%
20%
25%
30%
35%
1 ad 2 ads 3 ads 4 ads 5 or more ads No limit I’m not sure
Ad tolerance is
relatively higher in
Hong Kong compared
to other markets like
Singapore, with almost
50% of respondents
indicating that they’re
open to 2-3 ads per ad
break.
Asked to ALL respondents | n=1,116

27. Payment Preference
Slide 27
If you are going to subscribe to an online video streaming service today, what would be your preferred way to pay for it?
0%
10%
20%
30%
40%
50%
60%
70%
80%
Free - I don't mind
seeing ads
Cable / Pay TV
subscription
OTT subscription (Like
Netflix or equivalent)
Don't know - it's the
decision of my family
members
Pay per view - pay for
per content that I
consume
TV Shows Movies Sporting Events
When it comes to
preferred ways to pay for
an OTT service, most
consumers in Hong Kong
are open to a freemium
model where they are
required to watch ads.
Notably, traditional pay TV
models ranked higher for
sporting events, while
OTT subscription models
ranked higher when it
comes to watching movies.
Asked to ALL respondents | n=1,116

28. Payment Preference & Ad Tolerance
Slide 28
When it comes to watching video content on a paid OTT video service, which of the following statements most apply to
you?
23.4%
23.2%
22.8%
9.2%
9.2%
8.2%
3.9%
Prefer to pay a lower sub fee but be required to watch some ads
Prefer to pay nothing but be required to watch more ads
Prefer to pay nothing and don’t want to see ANY ads
Prefer to pay a higher sub fee and not see ANY ads at all
Want the flexibility to customize their plan
It doesn’t matter to me
I don’t know
Asked to ALL respondents | n=1,116
Similar to
Similar to

29. Slide 29
KEY TAKE-OUT

30. Key Findings
OTT adoption is relatively low in Hong Kong as only 27% of respondents reported having
an active paid subscription
Among the non-subscribers, consideration is low with only 12% of non-users indicating
that they’re actively considering a subscription in the next 3 months
Ad tolerance is generally high in Hong Kong, with most consumers indicating that they
would prefer to watch ads in exchange for free or discounted video content
Price is a key factor among Hong Kong consumers, with non-users reporting this as a key
barrier to not subscribing
Notably, consideration is relatively high among OTT lapsers, which suggests they might
come and go as they please based on the availability of video titles.
$
The value proposition for OTT services isn’t clear to non-users, as “not seeing the value”
ranked as a top reason for not considering a subscription

31. Slide 31
Thank You
Cindy Chan, Head of Greater China, YouGov
cindy.chan@yougov.com
+852 91947545
linkedin.com/in/cindy-chan-04b7bb21

32. Slide 32
APPENDIX

33. Appendix - Questionnaire
Slide 33
Q# Module Question Text
1 Viewing Consumption Habits On average, how many hours a week do you watch TV shows and/or movies?
2 Usage & Consideration Do you currently subscribe to a paid OTT video service?
3 Usage & Consideration Are you consideration a subscription to a paid OTT video service in the 3 months?
4 Motivators to Usage You mentioned that you are considering a subscription to a paid OTT video service. Which of the following is MOST important to you in terms
of why you are considering a subscription (Select one)?
5 Usage & Consideration You mentioned that you currently subscribe to a paid OTT video service. How many paid services do you currently use?
Barriers to Use You mentioned that you are not considering a subscription to a paid OTT video service. Can you tell us what is the primary reason? (Select
one)
6 Usage & Consideration You mentioned that you are considering a subscription to a paid OTT video service. How many paid services are you considering a subscription
to?
8 Payment Preference & Ad Tolerance If you are going to subscribe to an online video streaming service today, what would be your preferred way to pay for it?
9 Payment Preference & Ad Tolerance In the future, how would you like to pay for an online video streaming service?
10 Payment Preference & Ad Tolerance When it comes to watching video content on a paid OTT video service, which of the following statements most apply to you?
11 Ad Tolerance Generally speaking when watching video content online how many ads do you feel you can tolerate per ad break?
12 Barriers to Use You mentioned that you don’t currently subscribe to a paid OTT video streaming service but have in the past? What was your primary reason
for unsubscribing?
13 Usage & Consideration How do you tend to unsubscribe to an OTT service? Select which of the following actions you take to cancel or stop your subscription?