Research ResultsOmnibus Survey

April 2011

Research Approach

Total 1,008

Region

Atlantic Canada

Quebec

Ontario

Manitoba/Saskatchewan

Alberta

British Columbia

102

251

326

102

101

126

Field dates April 14 - 17, 2011

Margin of error +/- 3.1%, 19 times out of twenty

2

CRTC Policy on Content & Distribution

• Very broad support for current CRTC policy of availability of content across all distribution channels– Endorsed by 89%– Cuts across all regions, demographic groups

• Strength of response notable as well– “very good” policy say 43%

• 78% oppose changing the policy to allow integration– Including 46% strongly opposed– Large and strong majorities in all regions, demographic groups

3

Current Rules: Good or Bad Policy?In Canada’s regulatory system, the companies that provide telephone, wireless, satellite, Internet and cable services, are referred to as distribution companies. Companies that produce and offer TV programs, such as CTV, CBC, Global as well as specialty channels like TSN, Much Music, and the Discovery Channel are called content providers. Currently, under the rules established by the federal government, all content must be made equally available to all distributors, so that as consumers, you can watch any program you like, no matter which company you buy your TV, internet or wireless service from.

In your opinion, is this a very good policy, a good policy, a bad policy or a very bad policy?

43% 46% 5% 2%

0% 20% 40% 60% 80% 100%

National

Very good policy Good policy Bad policy Very bad policy

4

Current Rules: Good or Bad Policy?

86%

87%

89%

93%

90%

90%

90%

82%

91%

93%

84%

94%

90%

88%

89%

6%

8%

7%

6%

8%

6%

5%

10%

6%

5%

11%

3%

6%

8%

7%

0% 20% 40% 60% 80% 100%

65+

55-64

45-54

35-44

25-34

18-24

BC

AB

MB/SK

ON

QC

AC

Female

Male

National

92%

79%

92%

94%

89%

83%

91%

86%

90%

90%

93%

90%

91%

85%

89%

7%

13%

6%

4%

7%

11%

6%

9%

6%

6%

6%

7%

5%

11%

7%

0% 20% 40% 60% 80% 100%

Green

BQ

NDP

Liberal

Conservative

French

English

Rural

Urban

$100k+

$80k-$100k

$60k-$80k

$40k-$60k

<$40k

National

Good policy Bad policy

5

Vertical Integration: Support or Oppose Change?Recently, some cable and telephone companies have been buying companies that provide content. They want the regulations changed so that they can offer preferred access to the content that they now own to customers who buy their cable, satellite, internet or wireless services.

Would you strongly support, support, oppose or strongly oppose changing the rules so that distribution companies could limit access to their content in order to promote the purchase of their own cable, telephone or internet services?

4% 13% 32% 46%

0% 20% 40% 60% 80% 100%

National

Strongly support Support Oppose Strongly oppose

6

Vertical Integration: Support or Oppose Change?

17%

15%

20%

16%

15%

15%

11%

18%

17%

16%

19%

18%

16%

18%

17%

72%

78%

76%

79%

85%

82%

85%

77%

79%

78%

76%

74%

78%

78%

78%

0% 20% 40% 60% 80% 100%

65+

55-64

45-54

35-44

25-34

18-24

BC

AB

MB/SK

ON

QC

AC

Female

Male

National

24%

16%

14%

14%

20%

20%

16%

21%

15%

15%

7%

16%

19%

23%

17%

71%

81%

84%

80%

74%

75%

79%

73%

80%

83%

90%

77%

75%

72%

78%

0% 20% 40% 60% 80% 100%

Green

BQ

NDP

Liberal

Conservative

French

English

Rural

Urban

$100k+

$80k-$100k

$60k-$80k

$40k-$60k

<$40k

National

Support Oppose

7

Reaction to Vertical Integration Scenarios

• Several potential scenarios were explored in terms of what could result from vertical integration

• Each scenario found widespread consumer resistance• Consumers broadly oppose

– Having their choices curtailed– Facing extra costs for access to favourite content

8

Reaction to Integration ScenariosI’d like to read you some scenarios that could occur if the rules were changed to allow distributors to control access to content that they now own. For each, please tell me if the federal government should change the rules and allow this to happen, or should prevent this from happening?

9

Reaction to Integration ScenariosHere are some illustrations of specific examples of the kind of thing that could occur if the rules were changed to allow distribution companies to limit access to their content. In each case, please tell me if you would find this development totally acceptable, acceptable, unacceptable or totally unacceptable?

37%

37%

38%

38%

43%

39%

43%

43%

45%

41%

16%

12%

13%

11%

11%

3%

3%

2%

2%

3%

0% 20% 40% 60% 80% 100%

If Rogers, which owns the rights to broadcast NFL football games,made access to NFL games available only to subscribers to their

Cable TV, internet or wireless services

If Shaw Cable, which owns Global TV and a number of TVchannels, and thus holds the rights to popular TV shows like

House, Survivor, and Entertainment Tonight, limited access tothose programs to customers of their Internet and cable services

If Shaw Cable, which owns the Food, History, HGTV, and otherspecialty channels, restricted access to certain specialty channels

so that only subscribers to their cable or internet could get them

(QC Only) If Videotron, which is owned by the same company thatowns the TVA network, Canal Nouvelles, and Canal Evasion, made

those channels available only to customers of Videotron's cableTV, internet or wireless services

If Bell Canada, who owns the rights to broadcast NHL games,made streaming coverage of NHL games only available to people

who buy Bell's wireless, satellite TV or internet services

Totally unacceptable Unacceptable Acceptable Totally acceptable

10

Surrounding Attitudes

• While about half support the idea of laissez faire policy approach in principle

• Much larger numbers feel, in this situation, that consumers need protection from effect of integration

• Most assume prices will rise, choices will be reduced• 86% see federal duty to protect consumers and ensure

equal access, at same price, to content they like

11

Surrounding AttitudesPlease tell me if you strongly agree, agree, disagree or strongly disagree with each of the following statements.

13%

24%

26%

30%

39%

44%

38%

37%

41%

48%

47%

44%

30%

29%

20%

12%

10%

7%

15%

6%

8%

4%

1%

3%

0% 20% 40% 60% 80% 100%

Government should promote a free market, and let companiesoffer whatever combination of content and distribution services

they choose to invest in

There is too little choice and competition as it is, when it comesto TV services

If the government allows content and distribution to become tiedtogether, eventually there will be less competition, less choices

and higher prices

I would be drawn to any company that decides to stand up andfight against allowing distributors to control access to their

content

The government has a duty to protect consumers and ensurethat everyone has equal access, at the same price, to the

content they like

I hope someone stands up for consumers and fights hardagainst allowing distributors to control access to their content

Strongly agree Agree Disagree Strongly disagree

12

Ottawa’s Duty: Equal Access to Content

87%

88%

86%

85%

87%

89%

87%

80%

90%

86%

88%

91%

89%

85%

87%

9%

11%

12%

12%

12%

11%

12%

17%

9%

11%

10%

8%

8%

14%

11%

0% 20% 40% 60% 80% 100%

65+

55-64

45-54

35-44

25-34

18-24

BC

AB

MB/SK

ON

QC

AC

Female

Male

National

94%

97%

85%

90%

82%

88%

86%

86%

87%

85%

92%

85%

90%

89%

87%

4%

3%

13%

9%

16%

10%

11%

11%

11%

13%

7%

13%

8%

9%

11%

0% 20% 40% 60% 80% 100%

Green

BQ

NDP

Liberal

Conservative

French

English

Rural

Urban

$100k+

$80k-$100k

$60k-$80k

$40k-$60k

<$40k

National

Agree Disagree

The government has a duty to protect consumers and ensure that everyone has equal access, at the same price, to the content they like.

13

Attitudinal Statements

60%

66%

68%

68%

77%

68%

74%

72%

68%

73%

54%

69%

68%

67%

68%

30%

31%

27%

28%

21%

30%

22%

24%

26%

22%

42%

25%

26%

30%

28%

0% 20% 40% 60% 80% 100%

65+

55-64

45-54

35-44

25-34

18-24

BC

AB

MB/SK

ON

QC

AC

Female

Male

National

72%

71%

69%

68%

69%

52%

72%

68%

68%

73%

75%

74%

64%

58%

68%

24%

26%

27%

27%

27%

43%

23%

27%

28%

23%

24%

21%

33%

37%

28%

0% 20% 40% 60% 80% 100%

Green

BQ

NDP

Liberal

Conservative

French

English

Rural

Urban

$100k+

$80k-$100k

$60k-$80k

$40k-$60k

<$40k

National

Agree Disagree

If the government allows content and distribution to become tied together, eventually there will be less competition, less choices and higher prices.

14

Potential for Market Disruption

• Half of these interviewed say they would switch suppliers in order to have access to the programs they like best

• Churning behaviour would be widespread in all market segments, even heavier with people over the age of 35

• Few scenarios we have ever tested that have similar potential to create sweeping disruption

15

Potential Switching Behaviour(RESPONDENTS WERE ASKED TO NAME FAVOURITE PROGRAMS) If you could no longer get those programs, except by switching from [your current provider] to a major competitor, which would you be more likely to do: stay with your current provider or switch in order to get access to the programs you like?

37% 54% 8%

0% 20% 40% 60% 80% 100%

National

Stay with your current provider Switch to a major competitor DK/NR

16

Switching Behaviour

36%

32%

34%

30%

48%

49%

29%

40%

37%

43%

32%

36%

38%

37%

37%

53%

58%

59%

61%

46%

42%

55%

52%

50%

50%

63%

58%

53%

56%

54%

0% 20% 40% 60% 80% 100%

65+

55-64

45-54

35-44

25-34

18-24

BC

AB

MB/SK

ON

QC

AC

Female

Male

National

47%

28%

37%

42%

31%

30%

39%

34%

38%

32%

40%

43%

32%

44%

37%

48%

70%

55%

50%

61%

65%

51%

59%

53%

57%

55%

53%

61%

50%

54%

0% 20% 40% 60% 80% 100%

Green

BQ

NDP

Liberal

Conservative

French

English

Rural

Urban

$100k+

$80k-$100k

$60k-$80k

$40k-$60k

<$40k

National

Stay with current provider Switch to major competitor

17

Conclusions

• Very broad support for current CRTC policy• 78% oppose changing the rules to allow integration

– Including 46% strongly opposed

• Belief that consumers would be victims, not advantaged• Desire for government to protect consumers is strong• At the same time, if integration is allowed:

– Consumers acknowledge how disruptive this would be– Many would consider churning relationships

18

Sample DetailsOmnibus Survey

April 2011

Primary Service Provider - TVPlease tell me which company is your primary service provider for TV service in your home.

9%

10%

6%

9%

13%

13%

17%

16%

4%

0% 5% 10% 15% 20% 25%

Don't have service

Other

Cogeco

Star Choice / Shaw Direct

ShawLook TV

Videotron

Rogers

Bell

TELUS

20

Primary Service Provider – Cellular/WirelessPlease tell me which company is your primary service provider for cellular or wireless phones for your personal use.

16%

9%

1%

1%

2%

4%

4%

22%

21%

18%

0% 5% 10% 15% 20% 25%

Don't have service

Other

Koodo

Solo

Videotron

Virgin

Fido

Rogers

Bell

TELUS

21

Primary Service Provider – InternetPlease tell me which company is your primary service provider for Internet service at home.

9%

18%

5%

11%

12%

15%

19%

9%

0% 5% 10% 15% 20% 25%

Don't have service

Other

Cogeco

ShawAOL

Videotron

Rogers

Bell

TELUS

22

Smart PhoneDo you have a smart phone or tablet such as an iPad or similar device?

27% 73%

0% 20% 40% 60% 80% 100%

National

Yes No

(AMONG THOSE WITH A SMART PHONE) Do you watch streaming video from the Internet on your smart phone or tablet?

32% 67%

0% 20% 40% 60% 80% 100%

National

Yes No

23