Executive Insights Media & Entertainment Analysis Penetration of subscription OTT services is significantly higher for Millennials across all life stages than for Non-millennials Millennials across all life stages have Household penetration of subscription OTT video services significantly higher adoption of online Percent video subscription services: 38% for Millennials pre-family and 32% for 50 Millennials with kids vs. 15% for Non- millennials. 40 16% of Millennials, with and without kids, expect to increase their spend on subscription OTT services in the 30 next 12 months (vs. 6% for Non- millennials). 20 10 0 Total Millennials Students Flat sharing Getting your Young families Young families Non-millennials at home own place (<25 years) (25 - 34) Millennials by life stage What are the key reasons Note: Q: Which of the following TV services do you use at home, or for your personal use? Option - “Subscription online video streaming services (e.g., Netflix, Amazon Prime Instant Video, Now TV, etc.)” for subscribing to OTT services? t Source: L.E.K. Perennial Millennial Survey Perennial Millennials: Pay TV Under Threat?