Research Results

1. Research Results Omnibus Survey April 2011

2. Research Approach

3. 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

4. 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?

5. Current Rules:Good or Bad Policy?

6. 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?

7. Vertical Integration:Support or Oppose Change?

8. 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

9. Reaction to Integration Scenarios I’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?

10. Reaction to Integration Scenarios Here 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?

11. 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

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

13. Ottawa’s Duty: Equal Access to Content The government has a duty to protect consumers and ensure that everyone has equal access, at the same price, to the content they like.

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

15. 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

16. 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?

17. Switching Behaviour

18. 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

19. Sample Details Omnibus Survey April 2011

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

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

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

23. Smart Phone Do you have a smart phone or tablet such as an iPad or similar device? (AMONG THOSE WITH A SMART PHONE) Do you watch streaming video from the Internet on your smart phone or tablet?