FAST FACTS –TV AND NETFLIX VIEWING NZ, UK AND CANADA

F A S T F A C T S – T V A N D N E T F L I X V I E W I N G

N Z , U K A N D C A N A D A

We’re aware of the market's interest in subscription video services and their potential impact on television viewing behaviour.

We think there’s a few myths out there, so to help advertisers and agencies understand what’s happening we’ve created this handy document focusing predominantly on Netflix. In here, you’ll find some key facts about Netflix and TV viewers in New Zealand, as well as the UK and Canada.

NZ SUMMARY: HOW MANY AND WHO ARE NETFLIX SUBSCRIBERS?

• Let’s take a brief look at Netflix subscribers, who they are and, on the following page, their viewing behaviour …

• Just over 680,000 of New Zealand's 1.8m households subscribe to Netflix which means that approximately 1.7 million adults have access to Netflix at home (4 in 10 people aged 18 and over)

• Over half of people with Netflix are aged under 35; Millennials (18-34) account for 36% of users and children aged 10-17 make up another 17%

Source: NZ Nielsen CMI (Q4 17 – Q3 18). Base: AP10+ *TV = Free-to-Air TV or Paid TV (via set-top box)

NZ SUMMARY : NETFLIX SUBSCRIBERS ALSO WATCH TV*

• Netflix subscribers are more likely to be aged under 54, 28% more likely to be 18-34, and predominantly living in a Metropolitan area

• They are very heavy consumers of video content – and this is not at the exclusion of TV*

• 18-34 year old Netflix subscribers are more likely than those without Netflix to have watched TV* in the last week, day or multiple times in the last 24 hours

• 25-54 year-olds with Netflix are just as likely to have watched TV* than non-subscribers

• And, overall 7 out of 10 Netflix subscribers have watched TV* in a typical day

Source: NZ Nielsen CMI (Q4 17 – Q3 18). Base: AP10+ How often watched TV last week/24 hours

*TV = Free-to-Air TV or Paid TV (via set-top box)

MORE THAN HALF OF NETFLIX

SUBSCRIBERS AGED 18-34 WATCHED TV*

IN THE LAST 24 HOURS

Source: NZ Nielsen CMI (Q4 17 – Q3 18). Base: AP 18-34 *TV = Free-to-Air TV or Paid TV (via set-top box)

NZ: 18-34 YEAR OLD NETFLIX SUBSCRIBERS MORE LIKELY TO WATCH TV* THAN NON-SUBSCRIBERS

31%

56%

69%

25%

47%

63%

Multiple Times Last 24 hrs At least once in the last 24 hours At least once in the last week

Engagement with TV*

Netflix subscribers 18-34 Non-Netflix subscribers 18-34

Source: NZ Nielsen CMI (Q4 17 – Q3 18). Base: AP 18-34 How often watched TV last week/24 hours *TV = Free-to-Air TV or Paid TV (via set-top box)

7 OUT OF 10 NETFLIX SUBSCRIBERS

(25-54) WATCHED TV*

AT LEAST ONCE IN THE LAST 24 HOURS

Source: NZ Nielsen CMI (Q4 17 – Q3 18). Base: AP 25-54 *TV = Free-to-Air TV or Paid TV (via set-top box)

NZ: NETFLIX SUBSCRIBERS AGED 25-54 JUST AS LIKELY TO WATCH TV* AS NON-SUBSCRIBERS

43%

69%

79%

42%

66%

78%

Multiple Times Last 24 hrs At least once in the last 24 hours At least once in the last week

Engagement with TV*

Netflix subscribers 25-54 Non-Netflix subscribers 25-54

Source: NZ Nielsen CMI (Q4 17 – Q3 18). Base: AP25 - 54 How often watched TV in the last week/24 hours. *TV = Free-to-Air TV or Paid TV (via set-top box)

UK FINDINGS

9

UK ANALYSIS - DAILY VIDEO VIEWING

• Thinkbox recently released some findings based on minutes viewed per day by Netflix viewers in the UK. This quintile analysis splits Netflix viewers into the top 20% (heavy) through to light viewers. It compares minutes spent per day by these groups (plus non-Netflix viewers and All Adults) watching Netflix, BVOD (Broadcaster Video on Demand) and TV on a TV Set.

• The analysis shows that even for the heaviest users Netflix is not replacing TV-on-TV set and BVOD*. It reports that only the heaviest Netflix viewers (20%) watch more Netflix than Broadcast TV, while other viewers watch more TV than Netflix

Source: thinkbox UK - IPA Touchpoints 2018, *BVOD = Broadcaster Video on Demand.

More info from thinkbox UK available here

IN THE UK, NETFLIX’S BIGGEST FANS ALSO WATCH BROADCAST TV

Source: thinkbox UK - IPA Touchpoints 2018, BVOD = Broadcaster Video on Demand.

For more information on the UK TV market, including this slide, click here

8%

10%

21%

42%

62%

5%

5%

10%

11%

7%

7%

5%

87%

95%

86%

79%

72%

52%

32%

230

246

153

178

185

173

257

All adults

Non-Netflix viewers

Lightest Netflix viewers

Fourth 20%

Third 20%

Second 20%

Heaviest 20% Netflix viewers

Netflix BVOD TV on TV set

DAILY VIDEO VIEWING AMONGST NETFLIX VIEWERS, (MINS PER DAY)

CANADIAN FINDINGS

12

CANADIAN ANALYSIS – SCREEN TIME REPORT

• ThinkTV Canada’s Screen time report analyses average weekly time spent on TV, Netflix, YouTube, Facebook and other social media platforms.

• The report provides this analysis by All Adults 18+ as well as other age and gender splits, and shows:

• Adults 18+ are spending a significantly higher amount of time in an average week watching TV than other platforms – 25 hours, which is 16 times more than Netflix.

• Adults 18-34 are spending 13.6 hours a week watching TV, equating to 5 times more than Netflix

Source: ThinkTV Canada – link to full report here

Source: ThinkTV Canada –detailed sourcing in chart above – link to full report here

IN CANADA, TIME SPENT WITH TV LEADS THE WAY

… AND TV LEADS THE WAY FOR 18 -34 YEAR OLDS IN CANADA TOO

Source: ThinkTV Canada –detailed sourcing in chart above – link to full report here

S O M E F I N A L T H O U G H T S … .

Netflix users – particularly the younger ones - are even more likely to watch TV than non-subscribers

And remember, some eyeballs may be spending time on Netflix, but your brand can’t … TV remains the ultimate, unbeatable, brand-building advertising platform

For more information visit thinktv.co.nz or contact Amanda@thinktv.co.nz