1 Introduction SURVEYDEMOGRAPHICSQ4 2017 Survey Size: 3,330Geographic Regions: United States,CanadaAge of Respondents: 18+This survey was conducted in Q4 2017 bya leading third-party survey service; TiVoanalyzed the results. TiVo conducts this surveyon a quarterly basis and publishes a reportevaluating and analyzing key trends across the pay-TV industry.The sampling enabled herein provides the company witha cross-section of the population that is a statisticalrepresentation of the general pay-TV buying populationof the United States and Canada. The margin of erroris typically 2.0%. Trends that exceed this error rate aretypically noted, and readers should exercise caution when attempting to interpret signals that are changing by values less than the margin of error. TiVo enables pay-TV providers, broadcast networks, studios, digital publishers and consumerelectronics (CE) manufacturers to power personalized search, recommendations, voice-basedconversation, carousels and sports discovery, as well as gain invaluable insights into these featuresthrough analytics. TiVo’s customers include AT&T, Charter, DIRECTV, DISH Network, Spectrum,The CW, Verizon and other leading global pay-TV providers and broadcast networks. Each quarter, TiVo seeks real consumer opinions to uncover key trends relevant to pay-TVproviders, digital publishers, broadcast networks, studios and CE manufacturers. Consumers’genuine, unbiased perspectives and feedback drive continuous improvements to TiVo’sPersonalized Content Discovery Platform, which leverages viewer behavior, dynamic metadata andvoice recognition technology to provide highly intuitive entertainment discovery. This survey has been conducted every quarter since 2012. It enables the company to track keytrends in TV viewing habits, identify consumer opinions of pay-TV providers, and monitor emergingtechnologies, streaming devices, smart home devices, over-the-top (OTT) services, TV networkapps and content discovery features (e.g., personalized recommendations). In addition to keyquarter-over-quarter (q/q), year-over-year (y/y) and long-term trends, TiVo’sQ4 2017 Online Videoand Pay-TV Trends Reportaddresses many new topics and questions, including:The most popular smart speakers, and how respondents use them.Respondents’ preferred devices for voice search, and if voice search helps them fndsomething to watch.The evolving world of sports content, and whether streaming affects viewership of sportingevents.A deep dive into sports viewers – who they are, and the viewing habits of respondents whostream sporting events. 2 RESPONDENTS WITHOUT PAY-TV SERVICEThe State of Pay-TV Did you cut cable/satellite service in the last 12 months(Only answered by respondents who do nothave a pay-TV provider) Yes No, it’s been longer than 12months since I had cable/ satellite service. No, I never had cable/ satellite service. Q4 2017Q4 2016Q3 2017 010%20%30%60%40%50% 18.9% 52.7% 28.4% +6.1% q/q, +4.6% y/y While this report focuses on how consumers interactwith offerings from their pay-TV providers, TiVo frstsought to understand the audience without pay-TVservice. In Q4 2017, 85.2% of respondents subscribeto pay-TV service. Of those without pay-TV service,18.9% cut service in the last 12 months. While thenumber of those who cut pay-TV service in the lastyear is at its lowest since Q3 2016 survey results,the answer choice, “No, it’s been longer than 12months since I had cable/satellite service” increased6.1 percentage points q/q and 4.6 points y/y. Areconsumers cutting the cord and choosing not tore-subscribe to cable because they’re not missing itTiVo will continue to track this trend for fuctuationsin these two audiences. For pay-TV providers,subscriber retention remains crucial—as subscribersonce lost may not return. Who is your current cable/satellite service provider I have cable/satellite serviceI don’t have cable/satellite service AT&T U-VERSE BELL BRIGHT HOUSE NETWORKS CABLE ONE COMCAST CORPORATION COX COMMUNICATIONS CHARTERCOMMUNICATIONS CENTURYLINK CABLEVISION SYSTEMS CORPORATIONDIRECTV DISH NETWORK EASTLINK FRONTIER GOOGLE TV INSIGHTCOMMUNICATIONS COMPANY MEDIACOM COMMUNICATIONSCORPORATION OPTIMUM RCN ROGERS COMMUNICATIONS SHAWSPECTRUM SUDDENLINK COMMUNICATIONS TELUS VERIZON VIDEOTRON WOW! COGECO CABLE SASKTEL MTS14.8%85.2% 3 The State of Pay-TV RESPONDENTS WITHOUT PAY-TV SERVICE (CONTINUED)Why do respondents cancel pay-TV service For theffth quarter in a row, respondents cancel for thefollowing top three reasons:1. “Price - Too expensive” – 86.7%. This categoryincreased 6.6% y/y, and is at its highest ratesince the start of the question in Q3 2016. 2. “I use an internet streaming service, such asNetfix, Hulu, Amazon Video, etc.” – 39.7%. Thiscategory decreased 8.6 percentage points y/y.3. “I use an antenna to get the basic channels onmy TV.” – 23%. This category decreased 4.2percentage points y/y.What factors infuenced your decision to cancel your cable/satellite service(Choose all that apply) Price / Too expensive I use an internet streaming service, such asNetfix, Hulu, Amazon Video, etc. I use an antenna to get the basic channels on my TV. I like to binge-watch an entire season of a TVseries through my streaming service. I moved/relocated, and I don’t plan to have cable/satellite service again. The bulk of my TV viewing was original series on streaming services, such as “OrangeIs the New Black,” or “House of Cards.” I share a friend/family member’s login to watch shows on their cable/satellite provider’s app. I moved in with a new roommate who already subscribes to cable/satellite service. N/A. It was not my decision to cancel cable/satellite service, and I’m not surewhy this decision was made. Q4 2017Q4 2016 020%80%40%60% 86.7% 39.7% 23% 15.9% 13% 7.7% 0.9% 0.6% 2.6% 8.5% 100% +6.6% y/y -8.6% y/y -3.5% y/y -4.2% y/y Other 。。。。。。