Trust in the Entertainment Industry:

Consumer Behaviour in an Era

of Social Entertainment
May 2010
 Methodology
Trust in Entertainment Industry
• Fourth annual study
• This study was conducted by international research firm, StrategyOne, a subsidiary of Edelman.
• Surveys were conducted online from March 8, 2010 through March 10, 2010 using
the field services of Authentic Response, Inc.
• 552 respondents in the UK ages 18-54
• 515 respondents in the US ages 18-54
• Margin of error is +3.3% in total and +4.3% for each country in 95 out of 100 cases

Trust Barometer*
• Tenth annual study
• 4,875 people in 22 countries of which 1,800 in Europe
• Ages 25 to 64
• College-educated
• In top 25% of household income per age group in each country
• Report significant media consumption and engagement in business news and public policy
• U.S.: 500 Informed Publics (100 ages 25-34 and 400 ages 35-64)
*Data used from the 2010 Edelman Trust Barometer is noted on slide 13
 TV and Internet the Most Dominant
Entertainment Sources in the UK and US

100%
UK US
90%
All other mentions less than 10%
80%
70%
60% 57% 58%
50%
40%
30% 32% 28%
30%
20% 17% 17% 17% 14% 14% 12% 11%
10% 6% 5%
0%
TV/Television Internet/Web Radio Music/CDs Cinema/Theater Movies/Film DVD

Sources of Entertainment
In US internet surges but TV most frequent
“source of entertainment”
Sources of Entertainment – US (ages 18-34)

2010 2009
Up 15

59%
54%
42%

27% 29% 29%

20% 20% 19%
8% 9% 9% 10%
5%
 Less dramatic increase in the UK
Sources of Entertainment – UK (ages 18-34)

100%
2010 2009
90%
80%
70%
60% 52%
50% 44%
40%
30%
30% 26% 24%
19% 18%
20% 14% 12%
10% 8% 8%
NA NA NA
0%
TV/ Internet/ Music/ CDs Movies/ Cinema/ Movies Radio
Television Web Films Theater
 UK Consumers will pay for what’s most
important to them
MOST IMPORTANT LEAST IMPORTANT
81%
Personal enjoyment 51%
70% Popularity of the
entertainment
78% 44%
Hours of enjoyment
65%
Having unrestricted 49%
78% ability to share or make
Quality copies of the
67% entertainment legally 48%

76%
Ease of purchase 40%
59% Being one of the first to
have new
entertainment 43%
73%
Immediate access
59%

59% Important
Plays on multiple devices
53% Willing to pay for
 US Consumers will pay for what’s most
important to them
MOST IMPORTANT LEAST IMPORTANT
87%
Personal enjoyment 50%
76% Popularity of the
entertainment
81% 44%
Hours of enjoyment
72%
Having unrestricted 53%
86% ability to share or make
Quality copies of the
77% entertainment legally 55%

83%
Ease of purchase 41%
66% Being one of the first to
have new
entertainment 39%
80%
Immediate access
64%

65% Important
Plays on multiple devices
58% Willing to pay for
Social Networks emerge as a form of
Entertainment

100% % Yes UK US
90%
80% 73% 71%
70% 64%
61%
60% 56% 58% 56%
50%
50% 43%
40%
30%
30%
20%
10%
0%
Total Ages 18-24 Ages 25-34 Ages 35-49 Ages 50-54
 The value of Social Networking
% Who believe each provides “excellent” or “very good” value

100%
UK US
90%
80%
70%
60%
50%
40% 37%
40% 34% 32% 32%
30% 31%
30% 26% 24% 23% 23%
19%
20%
10%
0%
Social Film Music companies Gaming Cable television Satellite
networking sites producers/movie companies providers television
studios providers
What are consumers willing to sacrifice for free
entertainment?
47%
Advertisement-free entertainment
44%

43%
The ability to share the entertainment
35%

The ability to access the entertainment 40%

on multiple devices 32%

The ability to access the entertainment 29%

on the device of my choice 20%

Visual or sound quality of the 14%

entertainment 10%

13% UK US
Privacy of my personal information
11%

16%
None of the above
20%
 Top-of-mind Entertainment Companies
US UK
Film Studios/Hollywood 39% TV networks 36%
Film Studios/Hollywood 18%
TV networks 33%
Media Conglomerates 14%
Media Conglomerate 10%
Other 9%
Other 5%
Movies/theatre/plays 7%
Music/radio/recording… 3% Music/radio/recording… 5%
Television/TV shows 3% Television/TV Shows 3%
Internet sites 2% Computers/ Computers… 2%

Movies/theatre Electronic games/game… 2%

2%
Resort destinations 1%
Computers/Computer… 2%
Magazines 1%
Resort destinations 1%
Retailers 1%
Magazines 1% Mobile Providers 1%
Retailers 1% Pubs/ Clubs/ Nightclubs 1%
 Surprising reputational factors matter

Important Reputation Factors – UK US

Prices its brands fairly and competitively 58% 65%

Offers high quality products or services 58% 65%

Treats employees well 52% 61%

Is a company I can trust 52% 61%

Has transparent and honest business practices 50% 62%

Communicates frequently and honestly on the state of its business 47% 54%

Provides entertainment that can be played in multiple formats 46% 48%

Is an innovator of new products, services or ideas 44% 51%

Is a good corporate citizen 38% 55%

Has highly-regarded and widely admired top leadership 37% 49%

Is viewed as a technology leader 36% 44%

Delivers consistent financial returns to investors 34% 44%

 Trust in the Entertainment Industry:
2008 – 2010
Trust in the entertainment industry rebounded in the US over the past year

Consumers Informed Publics*

(Ages 18-34) (ages 25-34)
2008 2009 2010 2008 2009 2010
68% 68%

54% 56% 55%

39%
31% 29% 34% 32% 34%

17%

UK US UK US

* Source: 2010 Edelman Trust Barometer

UK Entertainment Spending

2009 2010
Age 18-34 spending Age 18-34 spending
compared to a year ago compared to a year ago

A lot more A lot less

A lot less money money A lot more
A little 8% money
money 6%
more 12%
12% A little less
money money
A little 18% 10%
less A little
money more
23% money
About the
About the same 29%
same amount of
amount of money
money 41%
42%
US Entertainment Spending

2009 2010
Age 18-34 spending Age 18-34 spending
compared to a year ago compared to a year ago
A lot more
A lot more money
A lot less money A little A lot less 6%
money 5%
more money
20% A little
money 9%
A little more
15% money
less money
20% 24%

A little About the

less same
money amount of About the
23% money same
36% amount of
money
41%
Consumer attitudes towards social
networks impact spend
SPEND MORE
UK
50% US Social networking
Social networking IS entertainment
40% IS entertainment
30%
20% 37%
31%
10%
0%
-10% -16%
-20%
-30%
2010. Avg Spend
-30% Trusters £26
-40% 2010. Avg Spend Distrusters £24
Trusters $49
-50%
Distrusters $43
SPEND LESS
Spend more Spend less
Consumer attitudes towards trust impacts
spend
SPEND MORE
UK
US Trust Entertainment
50% Trust Entertainment Companies
40% Companies
30%
20% 37% 44%
10%
0%
-10% -16%
-29%
-20%
2010. Avg Spend
-30% Trusters £28
-40% 2010. Avg Spend Distrusters £22
Trusters $47
-50%
Distrusters $43
SPEND LESS
Spend more Spend less
Building trust in era of
“social entertainment”
requires a mosaic approach
1. Listen with new intelligence
2. Participate in conversation
3. Create and co-create content
4. Socialize media
5. Champion open advocacy
6. Build active partnerships
7. Embrace complexity