Film Consumers in Canada September 23 rd , 2013

1. Film Consumers in CanadaSeptember 23rd, 2013

2. Canadian Consumer Research • Reaching Canadian Audiences • In the past year, Telefilm has worked with research partners and research firms to better understand Canadians, how they watch films and how they perceive the Canadian film industry. • Top line information will be introduced in this presentation, including film consumer segments identified in the Canadian market.

3. Outline • The presentation includes three sections: • Market Highlights • Perceptions of the Canadian Film Industry • Canadian Market Segments

4. Market Highlights 4

5. A New Paradigm Viewing behaviour is changing in Canada. Increased connectedness has Canadians watching content, where and when they want. Viewing is increasing: • 54% of those aged 15-17 and 38% of those aged 18-34 reported watching more films versus last year. • This was partially driven by market changes such as online platforms and the increased availability of content. • Although, particularly strong among younger age segments adoption of new online platforms has been noted across all age groups.

6. Age and Viewing Habits Age is an extremely important factor in terms of viewing habits: • The quantity of films viewed declines with age. • Younger Canadians are the heaviest consumers of films in the country. Numbers are based on consumer recall estimates and should be used for trends only. This includes viewing on all platforms of films from all countries of origin, not limited to Canadian films.

7. Key Factor in Selecting Films: Genre • Genre is the key factor in the selection process of a film. • The top genres by level of interest include: • Comedy • Action/Adventure • Drama • Mystery/Police Factors less widely considered in selecting a film, in order: • The topic, story, facts and/or the book that inspired the movie • The cast • Positive reviews in the media • The awards the film has won • The director • That the film is Quebecois / Canadian* • The origin of the film • The producer * French-speaking Quebeckers were surveyed regarding “Quebec” films. Canadian Anglophones were surveyed regarding “Canadian” films.

8. Viewing Locations and Platforms • Film viewing occurs principally in the home. Platform preference and age are also associated. • In-home viewing increases with age; most popular among those aged 55+; • Cinema visits are most frequent among younger consumers; and • Other platforms (mobile readers, tablets) are most popular among younger consumers.

9. Perceptions of the Canadian Film Industry 9

10. English Market • English-speaking Canadians tend to have mixed perceptions regarding the Canadian film industry. • English-speaking Canadians often do not recognize Canadian films, identifying many Canadian success stories as American. • Movies that are more successfully identified as Canadian tend to have specific markers that they are Canadian, for example, Goon, Trailer Park Boys the Movie and Bon Cop Bad Cop. • 43% of English-speaking Canadians said the Canadian audiovisual industry has improved over the last few years.

11. French Market • French-speakers have a more positive perception of the Canadian industry. French-speakers tend to be very aware of the successful films from Quebec including: • Bon Cop, Bad Cop • Les invasions barbares • C.R.A.Z.Y. • A majority of 60% of French-speaking respondents agreed that Quebec film has improved in the past few years.

12. Canadian Market Segments 12

13. Canadian Market Segments • Four segments of feature film consumers have been identified in the Canadian market.

14. The Casual Consumer • They represent 49% of the Canadian population, yet watch very few films. • They are educated, older and better off economically than the average Canadian consumer. • They watch very few feature films, rarely make use of viewing platforms, and very rarely stream or download movies. • This is the industry’s least-coveted target, despite the fact the segment accounts for almost half of the market (49%). • Casual consumers look elsewhere for entertainment.

15. Active at-Home • These consumers watch many movies, at-home on traditional platforms. • This segment is the oldest of those in the four segments (average age of 51, with 44% over 55). • Active at-homes—many of whom are retired—have more free time and can thus watch a higher number of movies, which they do primarily at home via traditional viewing methods (live, via PVR, movie purchases or rentals). • They rarely go out to movie theatres. • These consumers are watching an increasing number of movies, and watch a lot of TV series.

16. Connected Consumers • These consumers are younger web-based consumers watching an increasing amount of film. • This segment is quite young (average age of 40, and 47% are under 35) • They are heavy Web users—for short films and to download or stream for free. • They are consuming more and more movies. • They’re not very partial to video on demand, PVRs, or even watching DVDs they own. • While TV remains their medium of choice, they enjoy watching movies on their PC and mobile platforms to a greater degree than the average consumer.

17. Superviewers • Theseare the youngest and heaviest film consumers in Canada. They are present on all platforms. • Consumers in this segment are the youngest age group (average age of 36, with more than half under 35). • They watch all types of content, on all platforms, all the time. • They avidly use streaming and downloading and are overrepresented on all available platforms. • Thanks to the multiplicity of available platforms, Superviewers are watching more movies than ever before.

18. Thank you! For more information, contact: carolyn.pennell@telefilm.ca