Subscription Overload

User Behavior for Online Subscriptions in Latin America, U.S. and U.K

CALA Marketing Department

October 2019
2018 Survey had 4 main
questions answered…
Who is using subscription TV, movie and video
services?

What is the perfect video content bundle?

How should we deal w/consumers’ data?

Are consumers always adverse to adverts?

What else could we learn

from this type of data?
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 Female profile: employees, home activities and students

Profile of survey participants Employee

Employee
(full/partial) 27%
(full/partial) 34%

CALA USA & UK

Millennials (20s – 40s yrs.) characterized as the main sample of the research
Entrepreneur 7% Retired/
18-24 25-34 35-44 45-55 55-64 65+ Unemployed
15%
40%
House/Student
6%
35%
Retired/ House/Student
Unemployed 3% 8%
30%
Total Sample Entrepreneur 2%
25%

20%

15% Male profile: employees, retired in UK/US and entrepreneurs in CALA

10%
Employee
5% (full/partial)
24%
Employee
0% (full/partial)
38%
Argentina Brazil Chile Mexico UK US

CALA USA & UK

Entrepreneur Retired/
6% Unemployed
Retired/ 20%
Unemployed
4%
Entrepreneur
Student 2% 2%
Student 1%
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Smartphones – the main device for online content

Smartphones as the access device among millennials, TV for elderly people

4% 5% 6% 9% 8% 8%
Tablet
Latam users access to online media via Smartphones, UK/US users prefer TV
19% 21% 18% 21% 17% 19% 1%
1% 2% 3% 3% 1% 1%
Laptop/PC
3% 2% 3% 6% 11% 8%
10% 9%
AI/voice assistants
20% 9% 7%
5%
13% 11% 10% 9%
Smartphone 61% 50% Gaming consoles
41% 5% 13% 13%
24% 9%
23% Tablet
20%
47% 38% PC
14% 61% 66% 54%
TV 44% 42%
34%
21%
Laptop
18-24 25-34 35-44 45-55 55-64 65+
50% 52%
Smartphone
28% 30%
25% 22%
TV

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Around 8% of Brazilian
% of homes using SVoD as main TV service
USA

homes now use SVoD UK

as their main form of TV

Turkey
Sweden
Spain
Saudi_Arabia
Poland
Netherlands
Netflix already accounts Mexico
for 24% of Brazilian TV Japan
subscriptions …although Italy
only 5% of revenue Germany
France
Denmark
Brazil
Australia

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

% Homes using SVoD as main TV service

Source: 2018 Ampere Markets & Dataxis

5
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Video streaming surpasses penetration of paid TV
Online media service penetration by country and gender

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% • Mexico, Argentina and Brazil showed the highest penetration of
Mexico online media services
Movies/Video

Argentina
Brazil M F
• These countries also showed high penetration of young respondents
Chile 45% 55% in the research
US
UK • UK and US revealed lower online service penetration. These countries
Argentina also had a high participation in the survey of senior people
Chile
Paid TV

Brazil M F
Mexico 50% 50%
Online media service penetration
UK
US Paid TV
Mexico
Brazil 73%
Music

Chile M F
Argentina 46% 53%

UK
US
Mexico Movies/Video eGaming
Brazil
eGaming

Argentina 75% 36%

M F
Chile 50% 50%
UK
US
Brazil 33%
Argentina
48%
eSports

Chile M F
UK 52% 47%

Mexico
US eSports Music

Female Male
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 Subscription overload is high in Paid TV
In Brazil, Gaming and eSports content generates significant subscriptions
Sample: Number of subscriptions to online entertainment services by service type

Maximum 3.0
2.6 • Paid TV and “paid video” also referred as streaming video show the
2.5
2.2 2.2 major overload in subscriptions
2.2
• We assumed that several interviewees combined some OTT Video
1.5 1.4
1.3 Maximum services with traditional Paid TV (also referred as Cable TV)
1.1
1.3 1.3 Average
• Major gap between paid and free online services is seeing in Paid TV
0.8 Median
0.6
0.3 0.2 0.1 0.3 0.1 0.3 "line"
Minimum

Brazil: Number of subscriptions to online entertainment services by service type

Maximum 5.8
5.0
4.3
• Gaming and paid video streaming show the major 4.0
3.4
overload in subscriptions
2.7 Maximum
2.6 2.6
• Mayor gap between paid and free online services is 2.0 Average
1.4
seeing eSports content Median
1.0 1.1 "line"
Minimum 0.5 0.8

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 Online entertainment service challenges
Planning to switch your media/entertainment subs/services in the next 12 months? Main pain points in Brazil by age of users
2% 0%
AR GE N T I N A BR AZ I L CHILE MEXICO UK US
18-24 6% 9%
7% 21% 16%
YES 85% 79% 70% 83% 56% 54%
25-34
11% 10% Brazil
18% 35-44 Brazil 23%
28% 30% 33% 12% 12% Remember Too Many
22%
6% 45-55 passwords Subscriptions
26% 11% 9% 65+ 27%
55-64 2%
23% 21% 11% 5% 18-24
21% 5% 6%
13% 13% 55-64 65+ 43% 14%
8% 6%
11% 10% 11% 25%
4% 7% 45-55
7% 4% 5%
15% 35-44 Brazil
14% 2% 13%
1% 25-34 Multiple
2% 1% Apps/Platforms
28% 40%

Why will you do so?

52%
49%

Main pain points resulted by subscription overload by country

44%
40%

37%

37%
36%
36%

44%

46%
35%

36%
36%
30%
29%

34%

33%
32%
22%
22%

27%

25%
25%
17%

17%
17%
15%

19%
17%
13%

12%

15%
15%
11%

15%
11%

14%
10%

14%
10%

13%
11%
11%
11%

11%
11%
9%

10%
9%

10%
8%
8%

7%
6%

6%

9%
9%

7%

7%
7%
7%
5%

5%

3%
3%
2%
Argentina Brazil Chile Mexico UK US
Argentina Brazil Chile Mexico UK US
Save money +Content Customer serv.
Remember passwords Multiple apps/platforms Too many subscriptions
Personalized Less ads Recommendation
Platform & content link Preferences by platform Other
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Thank you
 Missing out on content, by respondent age
“Yes – there is still at least some content that I don’t get access to”
Total US UK Brazil

84%
78% 80%
73% 73% 73% 74% 73% 75%
71% 72%
68% 67%

56% 58%
48%

14-21 22-35 36-50 51-65 14-21 22-35 36-50 51-65 14-21 22-35 36-50 51-65 14-21 22-35 36-50 51-65
years old years old years old years old years old years old years old years old years old years old years old years old years old years old years old years old
Total US UK Brazil
% of respondents who do not have access to all TV shows/films that they want to see via their subscription services despite what their household pays.

In Brazil, 22-35 yrs. & younger indicate they have appetite for a wider range of
content, that they are not receiving from their service providers
10
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 Other advertising preferences
“I would be more open to adverts if I “I would be open to more
could customize products/industries personalized and relevant
advertised to me” adverts”
67% 73% 74%
65%
66% 67%
60% 59%

48% 49%

Total 14-21 years 22-35 years 36-50 years 51-65 years Total 14-21 years 22-35 years 36-50 years 51-65 years
old old old old old old old old

% of respondents who agree that they would be more open to seeing adverts if they % of respondents who would be open to getting more personalized and relevant adverts.
could customize the types of products and industries that were advertised to Split by respondent age
them

2/3 of consumers will be open to more adverts, as long as they are customized,
more relevant to them

11
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© 2018 – Proprietary & Confidential Information of Amdocs 2018 Consumer Survey