1 Market indicators: Quantitative analysis of movie programming on pay-television channels n u m b e r 156 February of Year XIV
2 number February of Year XIV Rua Sergipe, 401/Conj Higienópolis São Paulo (SP) Brasil Phone/Fax: Executive Director Otavio Jardanovski Executive Manager Claudia Tornelli Zegaib Sales Manager João Soares de Carvalho Executive Assistant Caren Dias Preface This issue of PTS presents a quantitative survey of the movies exhibited by Brazilian pay-television channels, using averages for the three-month period from December/2009, January and February/2010. Among other items, the tables and analysis cover the number of movies screened, the number of premieres, country of origin and year of production for channels that screened movies in the period. The purpose of the analysis is to identify the characteristics of the channels surveyed and detect changes or trends in their programming. In the Market Research section PTS goes on publishing the findings of of the 16th survey conducted in partnership with Ibope. This issue focuses on the reasons cited by respondents for not subscribing to pay TV. The study also analyzes the intentions of non-subscribers and whether they would consider paying for the service worthwhile in order to have a better picture when watching free-to-air channels. Contents 3 12 Market indicators Market survey This report is published by PTS Pesquisas de Mercado Ltda. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission in writing of PTS Pesquisas de Mercado Ltda.Infringement of copyright will be prosecuted.
3 03 Quantitative analysis of movie programming by pay-television channels Updating the data published in issue no. 153, PTS presents a new quantitative survey of movie channels using a sample for the three months from December/2009, January, February/2010. Once again the aim is to provide information that will be useful to operators, programmers and media buyers in comparing the different channels and identifying trends on the basis of a common set of criteria. Quantitative data alone are not sufficient, of course, to establish a rank order or determine the value of a channel. Subscriber perceptions, channel images, recall and audience research, and measures of movie quality are equally important factors which PTS intend to set out to cover in future surveys. Methodology - The survey focused on channels delivered by affiliates of the Net and TVA systems whose movies were listed in the respective programming guides for December/09, January and February/2010. Only featurelength films were covered. Series were excluded. The main source of information was the Net programming guides and press kits distributed by programmers. Data collected were tabulated and cross-referenced to obtain the number of movies screened, the number of premieres, the number of repeats, year of production, breakdown by genre etc. PTS assumes the channels effectively screened the movies listed in the respective programming guides. Percentage of programming allocated to movies (average percentage of December/09 - February/10) 100% 90% 99% 97% 95% 93% 90% 90% 88% 88% 84% 82% 81% 79% 80% 70% 69% 60% 50% 53% 46% 40% 30% 36% 34% 30% 30% 25% 24% 21% 18% 16% 15% 20% 10% 0% 11% 10% 7% 2% 2% 1% TLI TCL THD TCP TPP TCA CIN MGP* HBO MXP HBP TNT HBF MGM CBR FOX TCM FX Channels UNI A&E FLI WAR AXN TV5 P&A SCI FUT GNT VH1 ANP SNY The amount of programming time allocated to movies by each channel was calculated using the number of movies shown (including repeat screenings), their duration, and the total number of hours the channel was on air during the three-month period. The figure clearly shows two groups: dedicated channels, in which movies accounted for 53% to 99%% of total air time (Telecines Light, Cult, HD, Premium, Pipoca, Action, Cinemax, Megapix, HBO, Maxprime, HBO Plus, TNT, HBO Family and MGM); and channels that deliver series, shows etc. as well as movies, which accounted for 1% - 46% of total air time ( Canal Brasil, Fox, TCM, FX, Universal Channel, A&E, Fox Life, Warner, AXN, TV5 Monde, People and Arts, Sci-Fi, Futura, GNT, VH1, Animal Planet and Sony). (*) Megapix average refers to two months - December/09 and February/10.
4 04 Quantitative analysis of movie programming by pay-television channels SNY ANP VH1 SCI GNT P&A AXN FUT TV5 FLI FX A&E UNI WAR HBF MGM FOX TCM HBP CBR HBO MXP CIN TNT TPP THD MGP* TCP TCL TCA TLI Average number of different titles screened (December/09 - February/10) VH1 SNY TCA TLI FUT TCM TNT GNT TCL MGP WAR TPP TCP THD CBR A&E FOX TV5 AXN P&A ANP CIN UNI FX FLI MXP HBO HBP MGM SCI HBF Average number of repeat screenings per channel (December/09 - February/10) 1,2 1,3 1,3 1,4 1,4 1,5 1,5 1,6 1,6 1,7 1,7 1,8 1,8 1,8 1,9 2,0 2,0 2,1 2,3 2,4 2,4 2,5 2,5 2,6 2,6 2,7 2,9 3,2 3, ,2 5,5 The first figure shows the average number of different titles aired by each channel. Telecine Light tops the list with 304 different titles on average. The next figure shows the average number of times each movie was aired during the period in question. HBO Family tops with five times airing each movie. Futura, Telecines Light, Action, Sony and VH1 screened virtually no repeats. (*) Megapix average refers to two months - December/09 and February/10.
5 05 Quantitative analysis of movie programming by pay-television channels Number of premieres (December/09 - February/10) Average number of premiere repeats per channel (December/09 - February/10) , , ,1 2,7 2,6 2,5 2,4 2,3 2,1 1,9 1,8 1,8 1,8 0 0 MGP* CIN TCL TLI TCP TCA HBP Channels HBO HBF THD TPP MXP CBR HBF HBP HBO MXP TPP THD CBR Channels TCP CIN TCL TLI TCA MPX Premieres were defined as movies never screened before by the channel in question; most had never been shown by any pay-tv channel in Brazil. The first figure shows that Megapix screened more premieres than any other channel, with an average of 65 in the period. The second figure shows HBO Family with the largest average number of premiere repeats, followed by HBO Plus. (*) Megapix average refers to two months - December/09 and February/10.
7 07 Breakdown by country A&E USA ,4% England 7 4,8% Brazil 6 4,1% Fr/En/USA 3 2,1% Other 8 5,5% Animal Planet USA 9 100,0% AXN USA 78 85,7% England 5 5,5% Germany 2 2,2% En/USA 2 2,2% Other 4 40,0% Total % Total 9 100% Total % Canal Brasil Brazil ,6% France 4 1,2% USA 4 1,2% Cinemax USA ,4% France 25 5,6% Germany 18 4,0% Brazil 17 3,8% Other 90 20,2% FOX USA ,4% England 8 3,6% USA/Germ 3 1,3% Canada 2 0,9% Other 15 6,7% Total % Total % Total % Fox Life USA 87 79,1% England 4 3,6% En/US 3 2,7% Argentina 2 1,8% Other 12 10,9% Futura USA 22 22,9% France 18 18,8% Irland 8 8,3% Brazil 6 6,3% Other 42 43,8% FX USA ,5% FR/En/US 3 2,1% USA/Germ 3 2,1% Brazil 1 0,7% Other 5 3,5% Total % Total ,0% Total %
8 08 Breakdown by country GNT USA 37 59,7% Canada 12 19,4% France 3 4,8% Germany 2 3,2% Other 8 12,9% HBO USA 317 3,7% England 13 1,1% Australia 4 0,8% Brazil 3 4,8% Other 17 4,8% HBO Family USA ,9% England 14 3,9% Canada 7 2,0% Australia 5 1,4% Other 17 4,8% Total % Total % Total % HBO Plus USA ,4% England 19 6,1% Australia 6 1,9% Spain 5 1,6% Other 22 7,0% Maxprime USA ,9% England 8 2,1% South Korea 7 1,8% Japan 6 1,6% Other 18 4,7% Megapix USA ,4% England 20 4,5% France 18 4,1% Germany 13 2,9% Other 71 16,1% Total % Total % Total % People & Arts USA 59 76,6% Brazil 9 11,7% En/Fr/Ger/Ir/USA 3 3,9% USA/Germ 3 3,9% Other 3 3,9% Sci-Fi USA 35 97,2% Canada 1 2,8% Sony USA 7 77,8% England 1 11,1% En/Fr/Ger/Ir/USA 1 11,1% Total % Total % Total 9 100%
9 09 Breakdown by country TCM USA ,5% England 16 5,9% Italy 2 0,7% Other 5 1,8% Telecine Action USA ,4% France 35 4,0% Canada 31 3,5% England 25 2,9% Other ,2% Telecine Cult USA ,3% France 57 7,7% England 54 7,3% Germany 24 3,2% Other ,5% Total % Total % Total % Telecine HD USA ,3% England 34 5,2% Brazil 15 2,3% France 15 2,3% Other 46 7,0% Telecine Light USA ,9% Canada 48 3,3% England 46 3,1% France 28 1,9% Other ,8% Telecine Pipoca USA ,2% England 35 5,4% Brazil 22 3,4% Canada 21 3,2% Other 76 11,7% Total % Total ,0% Total % Telecine Premium USA ,9% England 34 5,1% Brazil 29 4,3% Canada 28 4,2% Other 70 10,5% TNT USA ,2% England 10 1,7% USA/Germ 7 1,2% USA/England 7 1,2% Other 17 2,8% TV5 Monde France 39 38,2% France/Belgium 6 5,9% France/Argelia 1 1,0% Other 56 54,9% Total % Total % Total %
10 10 Breakdown by country Universal Channel USA ,9% En/Fr/Al/Ir/USA 3 2,1% New Zeland 2 1,4% Engl/France 1 0,7% VH1 USA 20 83,3% England 1 4,2% En/Fr/Ger/Ir/USA 1 4,2% USA/Fr/Em 1 4,2% USA/Eng 1 4,2% Warner USA ,6% England 4 2,7% Australia 1 0,7% France 1 0,7% Other 2 1,4% Total ,0% Total % Total % The tables show a high concentration of movies produced in the United States, which accounted for between 1,2% - 100%. The exceptions were TV5 Monde (most of movies produced in French ) and Canal Brazil (virtually only brazilian movies).
12 MARKET SURVEY Monthly charge continues to hinder growth of subscriber base Class C accounts for 52% of respondents who intend to subscribe. 12 PTS continues to publish the findings of the 16th survey profiling paytelevision subscribers in the main metropolitan areas of Brazil, conducted in partnership with IBOPE. This issue focuses on the reasons cited by respondents for not subscribing to pay TV. The study also analyzes the intentions of non-subscribers and whether they would consider paying for the service worthwhile in order to have a better picture when watching free-to-air channels. Methodology: The survey consisted of personal interviews based on structured questionnaires with open-end and closedend questions. Data were collected in the period January 19-February 2, 2009, in 11 major metropolitan areas: Brasília, Belo Horizonte, Campinas, Curitiba, Florianópolis, Fortaleza, Porto Alegre, Recife, Rio de Janeiro, Salvador, and São Paulo. The sample comprised 17,215 individuals, with pay-tv subscribers accounting for 2,353 or 13.6% of the total, proportionately distributed among the metropolitan areas surveyed. As in previous surveys, socioeconomic categories A, B, C and D/E were covered according to the Brazilian classification. This time class A accounted for 3% of the interviews, B for 30%, C for 47%, and D/E for 20%. Levels of educational attainment were in line with the averages for the Brazilian population, with 37% having completed secondary school or holding a university degree. The sample was balanced in terms of age groups: 20% were aged 10-19, 22% were years old, 18% were aged 30-39, 16% were years old, and 24% were aged 50 or over. Women accounted for 53% of the sample. For pay-tv subscribers interviewed only, the socioeconomic breakdown was as follows: 71% A/B, 27% C, and 2% D/E. Respondents broke down as follows by the service provider to which they subscribed: Net 55%, Sky 26%, TVA 7%, Telefonica 4%, other 8%. Classes A and B accounted for the largest proportion of the service providers subscriber bases, with D/E accounting for at most 2%. Conclusions: As noted in previous surveys, the reason most frequently cited for not subscribing to pay TV has traditionally been the high price of the monthly subscription fee. This continues to be the case among both ex-subscribers (47%) and respondents who have never subscribed (42%). The second most frequently cited reason is the impossibility of incurring an additional expense for those who have never subscribed (22%) or, for ex-subscribers, the fact that they do not watch a lot of TV (20%). As for whether they intend to subscribe, the proportion of those who respond in the affirmative has increased since the last survey. It was about 18% in the 15th round and in this latest round (16th) it is 24%. A breakdown by social class shows class C accounting for 52% of those who say they intend to subscribe and class B for 32%. These same classes previously accounted for 46% and 30% respectively. The proportion who say they would subscribe solely for better picture reception when watching free-to-air channels remains relatively small, with some 30% saying they are not interested. Among those who are, a majority are prepared to pay R$10 (now about US$5.50).
13 MARKET SURVEY 13 Main reason for not subscribing to pay-tv 1st option 50% 40% 30% Ex- subscriber Never been a subscriber 20% 10% 0% High monthly fee Not watch a lot of TV Impossibility of incurring an additional expense Other reason Most part of programming is not interesting Installation problems Prefer to rent DVDs Do not want more channels Inicial expensive to install the service DK/NR Base: 8446 interviews
14 MARKET SURVEY 14 Intention about pay-tv service within following six months Non-subscriber Among those who intend to subscribe 60% 50% 40% 16ª study 15ª study 60% 50% 40% 16ª study 15ª study 30% 30% 20% 20% 10% 10% 0% Intend to subscribe Do not know if will subscribe Do not intend to subscribe NR 0% Class A Class B Class C Class DE Base: 15ª round interviews; 16ª round interviews.. Base: 15ª round interviews; 16ª round interviews.
15 MARKET SURVEY 15 Interest in subscribing just for better picture reception when watching free-to-air channels 80% 70% 60% 50% 40% 30% 20% 10% 0% Subscriber Former subscriber Have never been a subscriber Yes No DK/NR How much would you pay for this service? (among those who have interesting) R$ 30,01 - R$ 35,00 6% R$ 25,01 - R$ 30,00 9% R$ 20,01 - R$ 25,00 8% Over R$35,00 15% R$15,01 - R$ 20,00 14% Up to R$ 10,00 36% R$ 10,01 - R$ 15,00 12% Base: Subscriber interviews; ex subscriber interviews; Have never been a subscriber interviews. Source of charts: IBOPE/PTS Base: 3990 interviews
16 number February of Year XIV Rua Sergipe, 401/Conj Higienópolis São Paulo (SP) Brasil Phone/Fax:
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