Lichtenberg+Focus+Group+Report

Lichtenberg L.

TO: Proximity Video Team FROM: Lucas Lichtenberg SUBJECT: Video Focus Group Report DATE: March 23, 2010

Here is my report on a focus group I ran with five college age males about their opinions on watching premium content. I asked 5 questions developed by our team to try and figure out how they were watching their premium content. Most of the participants relied strictly on cable or other streaming sites while another had experience with streaming Netflix straight through their XBOX 360.


 * Focus Group Rationale** **& Questions**

Premium video content is increasingly being delivered through the Internet, giving Gen-Y many different was to access TV shows and movies. As a result broadcast TV audiences are being fragmented and the movie industry can no longer assume that box office revenues alone will pay for the production of new movies. The rationale for our focus group sessions is to determine how Gen-Y currently watches premium video and which broadband technologies they prefer. This information will allow us to advise Proximity clients on how best to target Gen-Y using ads associated with premium content.


 * Setting and Participants**

The 45 minute session was held in Coastal Carolina at David's brother's house over Spring Break on Tuesday March 16, 2010. The male participants were:
 * David, 21, a Towson Univ. junior business major
 * Joe, 21, a Towson Univ. junior economics major
 * Alex, 20, a Towson Univ. sophomore economics major
 * Kyle, 21, a Towson Univ. Senior accounting major
 * Brian, 19, a Coastal Carolina sophomore Communications major

We covered the following topics during the session:
 * Session Topics**

__Primetime showing__ All participants said that the most important TV show for them to watch live was sporting events. David said " It's fun to watch sports because it's social and you have no clue about how the game will end or the amazing plays that happen." All participants also said that they liked to watch certain TV shows in primetime because it's brand new and the entire world has not seen yet. Joe and Kyle both said that since they got their DVR they have been programming the TV to record their favorite shows so that they can skip commercials and watch it whenever they want. Kyle has been streaming premium content online straight through his computer but prefers the DVR more. Kyle said " I would switch to a streaming service if it was free, no commercials, and convenient because it is more private and you can pause and play as you please."

__Premium content and preferred services__ All participants have cable in their homes that they watch daily but streaming online and Netflix were big for two of the members. Joe, Alex, and David prefer Verizon cable broadcasting and periodically stream video off the internet. Kyle, prefers streaming the video through his laptop so that he can sit in his bed and watch movies. Kyle says, " the site atdhe.net will show live TV shows and sporting events making the use of cable for me almost useless." Brian likes to watch the bulk of his premium content through Netflix which is run through his XBOX 360. Brian said " Netflix is awesome because you can get movies directly to your screen with minimum costs and no wait. This upgrade has made Netflix very popular in my household and is preferred rather than the Playstation 3 due to the slow connection and constant lag of the Playstation 3 and the user friendly interface on the XBOX 360. Joe and Alex said that Verizon was their favorite out of all the cable providers that they have encountered because it has an easy interface. David explained that the reason he would rather have Direct TV would be for the football package that they provide 5 months out of the year. All of the participants did report that renting movies through RedBox was popular due to the high costs that the cable providers charge per movie and the exclusiveness of certain movies.

__Size and quality of screen__ As expected, HD and 50 inch plasma screens were preferred when watching videos. All participants said that going out to movies happens about once every two months due to the high prices charged. Waiting for new releases didn't have much of an effect on them but if there was an exciting new thriller in the cinema they would be first in line at the ticket booth. Kyle added " even though the quality on my computer doesn't match the size and quality of regular TV's, it doesn't deter me from watching videos on my laptop."


 * Findings**

The session revealed that the male participants
 * will watch sports live because it means the most to them.
 * are concerned about price rather than convenience.
 * favorite way to rent movies is by RedBox and Netflix

These findings should be compared with the results from our other sessions with all male participants. Live Sports will be the future of cable since watching live TV through your computer is free and convenient. Cable will be purchased to view the news and sporting events. TV shows will be streamed and movies will be bought through Netflix and RedBox, to make the price lower and the more convenient. DVR has made the incentive to watch a TV show live not as important since users can record and save shows to the memory on their cable box. Netflix now provides instant access to 1000's of movies and TV shows that users select using their XBOX 360 or Playstation 3. This upgrade from the classic mail service to the instant access has turned more people to Netflix due to the accessibility. We should consider conducting follow-up interviews to determine if our clients need to take special measures to address the technology advancements and parameters of the entire video industry.