Why does authentication matter?!

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2 Why does authentication matter?! The more screens you use to watch, the more value you get from your pay TV subscription Among those who watch on a TV only, 48% say that TV service providers are an excellent or good value.! TV#+#4#devices# TV#+#3#devices# TV#+#2#devices# 71%! 62%! 88%! Viewers who watch TV on any additional device feel the value of their TV service provider is significantly higher.! TV#+#1##device# TV#only# 59%! 48%! 2!

3 Why does authentication matter?! But even so, many possible viewers are lost in the process. Go somewhere else! 41%! Watch something totally different from another source! Look for same/ similar program somewhere else! 26%! 15%! Enter your information! 48%! Don t enter info but choose from limited free shows! 12%! Q3J: If in the future, if you came to a website or downloaded an app, and it asked you to provide your TV subscriber information in order to access TV programs, would you most likely...?! 3!

4 Goals of this research! Measure how much consumers are, or "aren t, authenticating! Evaluate process (compared to expectations and to other kinds of online transactions)! Identify which TV service providers do authentication the best! Identify most common barriers to authenticating! What changes can be made that WILL MATTER:! Will impact behavior! ARE PRACTICAL:! They re realistic to act upon! Prioritize specific things that content and TV service providers can do to make consumers authenticate more 4!

5 We surveyed 600 TV consumers! Ages 16 to 54 At least 5 hours of TV per week Broadband access at home U.S. census balanced Viewers across a variety of platforms and devices Data collection completed in October !

6 Perceptions! Overall perceptions and impact of the process! HUB ENTERTAINMENT RESEARCH INC. 6!

7 Almost half of consumers feel that getting TV content online requires too much effort! Less involved than it needs to be! 5%! Much more! 16%! MORE INVOLVED THAN NECESSARY! 43%! As involved as it needs to be! 52%! 27%! A little more! Q3F: Would you say the process of logging in to watch TV programs online is...?! 7!

8 Nearly half (43%) feel that getting TV content online is more involved than it needs to be.! And about the same number say they have opted not to authenticate in the past:! YES! 46%! Have you ever been asked for info, but then not entered it?! NO! 54%! This is most likely to have happened when authenticating through their TV service provider; and most often for reasons of convenience.! Q7F: Have you ever been asked for information, but not entered it?! Q7G: Which TV service providers or networks has this happened with?! 8!

9 These lost occasions matter, particularly in a world where consumers have so many options! More than half (55%) said that they didn t go back and enter their information later! The process seemed too time-consuming! 28%! I couldn t remember my password! 24%! I didn t have my user information handy! 22%! Did you go back I decided to use YES! a different method of watching the programs from that source! 21%! and enter your NO! It was asking for too much information! 18%! The process seemed 45%! information too difficult! 18%! 55%! eventually?! I was worried I would get spammed/receive solicitations! 16%! I was worried about the security of my user information! 16%! The device I was using made it difficult to type! 14%! It didn t recognize my password even though it s right! 14%! Didn t understand how to enter the information! 5%! Any other reason! 4%! Q7K: Did you go back and enter your login information eventually, or not?! 9!

10 And they also contribute to the use of pirate sites! More than half of those who use pirate sites say that authentication has at least something to do why they use them! Nothing to do with it! 23%! Hardly anything! 21%! A lot to do! 25%! A little to do! 30%! Something to do with it! 55%! Q7N: Would you say the fact that many online sites require you to login to watch TV has.! 10!

11 Even doing away with authentication completely wouldn t eliminate piracy! About a third of those who pirate TV shows say that doing away with authentication would have no impact on how much they use those sites! Have no impact! 37%! Stop completely! 29%! Cut down! 35%! Q7O: If TV provider sites never asked for login information to access their programs, do you think that would! 11!

12 But there s evidence that an improved login process would reduce it! There s a clear relationship between greater satisfaction with the login process and lower likelihood to pirate TV content! LOGIN SATISFACTION! (on zero to 10 scale)! USE PIRATE SITES FOR TV! (once a month or more)! LOWEST! (0-6)! 27%! MIDDLE! (7-8)! 22%! TOP! (9-10)! 18%! Q6F: How satisfied are you with the process of logging in to watch TV online?! Q3A: Please tell us which of these sources you have used to watch TV online.! 12!

13 TV in Context! Perceptions and performance relative to others! HUB ENTERTAINMENT RESEARCH INC. 13!

14 The idea of security is important to people in general! People found value in all of the possible scenarios we tested! ESSENTIAL( ESSENTIAL(OR( IMPORTANT( A service where you login occasionally to guard against an unauthorized person accessing your account! 34%! 75%! A service where you login once on each device you use, but only once for each device! 30%! 69%! A service where you login every time in order to make sure your information is safe! 29%! 64%! The ability to pay for access to content, either online or through an app, from premium networks without having to subscribe to that network through your cable or satellite provider! 25%! 63%! A service where you login once and have access every other time, and for any possible device, without having to login again! 24%! 62%! A service where you login and you can only use the service inside your home, to make sure the account is not being accessed by an unauthorized person outside your home! 29%! 60%! Q7W: Tell us if you would consider each of the following to be! 14!

15 However, when it comes to TV they re less likely to feel that this compromise is for their benefit! Consumers (0)! Who(benefits(more(from(authen;ca;on?( Companies (10)! Streaming Subscription! Basic Cable! Network! TV Service Provider! Premium Network! 3# 3.5# 4# 4.5# 5# 5.5# 6# 6.5# 4.9! 5.6! 5.8! 6.1! Credit card account! 3.3! Online ! 3.6! Online shopping! 4.0! 4.5! 4.7! Paywall news! site:! 5.7! Bank account! 3.2! Mobile phone account! 3.5! Q7R: How would you answer these questions for other types of online services that ask you to login with user information?! 4.5! 15!

16 The Best Process! Fast and Consistent! HUB ENTERTAINMENT RESEARCH INC. 16!

17 A more consistent experience may be one of the easier levers for TV service providers to pull! Impact of Greater Authentication Consistency on Service Interest! Less interested 4%! No difference! 36%! A lot more interested! 28%! A little more interested! 32%! More interested! 60%! Q7V1: If most apps for TV worked the same way gave you the same level of access to content, had similar controls, and had a similar look and feel how would this impact your interest in using them?! 17!

18 Changes to how authentication works would have the biggest impact on adoption! Especially changes that make the login process faster (or just needed less often)! Greater clarity around what s available and what s free (vs. what s not)! And greater consistency across TV service providers! MECHANICS( Only having to enter your information once and that information is remembered every time! 46%! Entering a minimal amount of information! 43%! Having just one password that you can use across all online 33%! services! Having a better understanding of exactly what shows or movies you d gain access to (and would not be able to get without entering your information)! VALUE( PROPOSITION( 31%!! Getting a stronger feeling that when you re entering information, you re accessing exclusive content that other people can t get! 26%! Having more consistency across providers, as far as how the applications for watching TV online look and work! 23%! Having a better idea about why TV shows and movies are available earlier on some platforms than others! 23%! If some sites didn t also offer some shows for free without having to enter your account information 22%! Q7V: Would any of the following make you more likely to enter your user information in the future?! 18!

19 Authentication Deep Dive! Elements of the Experience! HUB ENTERTAINMENT RESEARCH INC. 19!

20 Consumers perceive TVE from premium networks and service providers to require most frequent logging in! Premium network app! TV service provider app! 22%! 21%! 62%! 68%! Hulu Plus site! 15%! 54%! Premium network site! 29%! 52%! TV service provider site! 39%! 48%! Hulu Plus on TV! Hulu Plus app! 12%! 2%! 45%! 41%! Netflix site! 21%! 33%! Netflix app! 2%! 31%! Basic cable network app! 11%! 23%! Netflix on TV! Basic cable network site! 9%! 8%! 13%! 10%! Asked last time! Asked every time! Q6C: The last time you watched, were you asked to login with account information?! Q6D Which best describes your experience whenever you login to watch programs online from SOURCE! 20!

21 Which appears to correlate with lower levels of satisfaction with the login process.! Consumers give the highest scores to basic cable and Netflix, and consistently more negative scores to premium networks and TV service providers! Satisfaction with Login Process! 41%# 18%! 40%# 22%! 39%# 35%! 36%# 25%! 28%# 40%! 27%# 24%! 27%# 35%! 26%# 42%! 24%# 33%! 24%# 45%! 23%# 48%! 22%# 30%! Basic cable network site! Netflix app! Netflix on Netflix site! TV! Basic cable network app! Hulu Plus site! Hulu Plus app! Hulu Plus on TV! 0-6 (Dissatisfied)! 9-10 (Satisfied)! Premium network app! Premium network site! TV service provider app! TV service provider site! Q6F: How satisfied are you with the process of logging in to watch TV online from [SEGMENT/ NETWORK], using [DEVICE/CONNECTION]?! 21!

22 The other side of the authentication coin! The easiest to use platforms are also the ones with the greatest rate of credential sharing! 16%! Source of Login Information! 13%! 12%! 12%! From the account of a friend that lives somewhere else! 5%! 3%! 4%! 9%! 2%! 8%! 6%! 6%! 6%! From the account of a family member who lives somewhere else! 5%! 5%! 7%! 4%! 0%! 0%! 0%! 0%! 0%! 0%! 0%! Hulu Plus on TV! Premium network site! Hulu Plus site! Basic cable network app! Netflix on TV! Netflix app! Premium network app! Basic cable network site! Hulu Plus app! Netflix site! TV service provider site! TV service provider app! Q6K: When you ve entered a username and password, was that information from an account you personally pay for or did you login with information you got from someone else?! 22!

23 What s the Impact?! Does Authentication Influence Overall Viewer Perceptions?! HUB ENTERTAINMENT RESEARCH INC. 23!

24 Before asking any questions about authentication, we first asked consumers to rate their overall viewing experience! Netflix, along with apps from basic and premium cable networks, offer the most positive experience to consumers generally! Satisfaction with Overall Viewing Experience (Mean rating, 0-10)! Netflix app! Netflix site! Netflix on TV! Basic network app! Premium network app! Basic network site! Hulu Plus site! Premium network site! TV service provider site! Hulu Plus app! Hulu Plus on TV! TV service provider app! 8.1! 8.0! 8.0! 8.0! 7.8! 7.6! 7.4! 7.4! 7.2! 7.2! 6.9! 6.7! Q5B: First, how satisfied are you with the overall experience of watching TV online from [SEGMENT/ NETWORK]?! 24!

25 Naturally, a number of factors go into a quality viewing experience! But given that perceptions of the login experience correlate strongly with the overall experience, authentication ease clearly seems to be one of those factors! Satisfaction with Overall Viewing Experience vs. Login Satisfaction (Mean rating, 0-10)! Netflix app! Netflix site! Netflix on TV! Basic network app! Premium network app! Basic network site! Hulu Plus site! Premium network site! Provider site! Hulu Plus app! Hulu Plus on TV! TV service provider app! Overall#Viewing#Experience# Login#SaEsfacEon# 8.1! 7.6# 8.0! 7.6# 8.0! 7.5# 8.0! 7.1# 7.8! 7.4# 7.6! 7.9# 7.4! 7.2# 7.4! 6.5# 7.2! 7.3# 7.2! 7.3# 6.9! 7# 6.7! 6.1# Overall Correlation:!.62*! Q5B How satisfied are you with overall viewing experience. Q6F: How satisfied are you with the process of logging in?! *Correlation coefficient measures strength of the relationship between two variables: -1.0 (perfect negative) to +1.0 (perfect positive)! 25!

26 Conclusions and Implications! HUB ENTERTAINMENT RESEARCH INC. 26!

27 So how do our assumptions hold up?! The only way to stop piracy is to give away content for free! Authenticating for TV is similar to other kinds of authentication! Content is so valuable that people will keep trying if they encounter problems! People will game the system if they re able to! A more consistent delivery of TVE will drive adoption! More transparency will drive more TVE adoption! Traditional TV service providers lag behind Netflix in ease of use! It s important to design authentication for particular devices! IT S NOT:! Some people will pirate no matter what. But a more consistent, less intrusive authentication process would make a dent! NOT REALLY:! It s less clear and more difficult than most and the benefit is less obvious! NOT TRUE:! Roughly half have at some point decided not to authenticate when asked and more than half of those never tried again! IT DEPENDS:! Most people don t share account info. And even those who do tend to keep account info in the family! TRUE:! Consumers say so directly 60% say a more consistent experience would make them more interested! TRUE:! One-third say a better understanding of available content would lead to more TV service provider use! TRUE:! Netflix is seen as much easier when it comes to authentication.! TRUE:! What is easy on some interfaces can be tedious on other very common devices (e.g., Xbox or Playstation)! 27!

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