Computing in the Cloud:Fear vs. RealityP2P and Cloud Market Conference

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We offer a full range of services for both quantitative and qualitative research.

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Our discussion today

Current use of cloud computing Future intentions Concerns about cloud computing The mobile cloud The dark cloud - Content piracy Piracy in the US vs. Great Britain Latest trends from the UK

Percentage figures in this report maynot add precisely due to rounding. 3

Data from Multiple Studies

Percentage figures in this report maynot add precisely due to rounding.

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Cloud Computing and Device Purchase IntentUS Online Survey fielded 3/1 – 3/5N=1,831 UNWEIGHTED

File Sharing and Mobile Device UsageUS Online Survey fielded 11/23/09 – 11/30/09N=2,344, Weighted to US national demos*

UK FastForward Syndicated ReportUK Online Survey fielded QuarterlyN≈2,000 per quarter, Weighted to UK national demos*

* Either general population or online population depending on activity/device

Cloud Computing is nothing new...

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Echo Boomers (18-33)

Gen X(34-45)

Baby Boomers(46-64)

Matures(65+)

Email 93% 92% 95% 95%

Banking 54% 58% 61% 64%

Video 65% 50% 37% 26%

Office 26% 17% 21% 24%

Photos 22% 19% 16% 11%

Q: Which of the following Web-based services do you currently use?

Base: March 2010 fieldwork 18+ population (1,831) - unweighted

...but not everyone realizes it

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When it comes to storing personal files people typically store them on their computer.

As a result these files need to be transferred to another machine/device if they want to access them from another location.

There is new technology, sometimes called "cloud computing" that allows files to be stored, edited or played online from any location at any point in time.

How interested are you in using this type of service for the following types of files?

People don’t think about their emails and banking info in the cloud

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Percentage Point difference between %Use, and % Interested in using Cloud Computing

Echo Boomers Gen X

Baby Boomers Matures

Email 39 42 51 66Banking 25 31 37 43Video 20 13 12 15Office 19 19 5 6Photos 29 27 18 15

Q1: Which of the following Web-based services do you currently use?

Q2: How interested are you in using this type of service for the following types of files?

Base: March 2010 fieldwork 18+ population (1,831) - unweighted

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Cloud computing is a tradeoff between accessibility and security

Over Half of Respondents Agree: - Access to files makes life much easier - Would worry about losing connectivity - Concerned about security - Would still keep offline backups

Less than Half of Respondents Agree: - Sounds too complicated - Need access to all my files at all times - I would trust files are safe - Would trust with personal information

50%

Base: March 2010 fieldwork 18+ population (1,831) - unweighted

Q: Do you agree or disagree with the following statements? 5 point scale, Strongly Agree – Strongly Disagree

Notebook Computer

Nintendo Wii

Netbook Computer

Kindle

Android Phone

Other Smartphone

iPhone

iTouch

iPad

Other tablet computer

Other eBook reader

12%

12%

10%

9%

9%

9%

8%

6%

6%

6%

6%

Interest in Cloud Computing Devices (% Definitely or Might get in next 6 mos)

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Base: March 2010 fieldwork 18+ population (1,831) - unweighted

Send / receive photos

Send / receive email

Listen to music stored on the device

Visit social networks like Facebook, Myspace, Bebo

Play games that have been bought and downloaded

Watch short videos

Stream video from YouTube

Listen to music streamed from the Internet

Watch music videos

Use Twitter

Watch full length television programs

Watch full length movies

Stream video from Hulu.com

Online gambling for money

39%23%

14%13%12%

7%7%

5%4%4%3%2%1%1%

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Mobile is where the cloud, and the device, mesh

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The analysts say…

Follow the PaaS…

Base: November 2009 f18+ mobile owning population (2,071) – nationally representative

Q. Please tell us if you do any of the following on your mobile phone. Please select all that apply

Mobile activities – highlights among younger mobile consumers

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22%

of 18-24 year olds listen to music stored on their mobile

48%

of 18-24 year olds send and receive photos on their mobile phones

16%

of 18-24 year olds use their mobile for major social networks like Facebook et al

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Base: November 2009 f18+ mobile owning population (2,071) – nationally representative

Content piracy – the dark cloud

Share music with your friends by swapping hard disk drives or USB memory sticks

Share movies or TV programs with your friends by swapping hard disk drives or USB memory sticks

Download TV programs from sites like BitTorrent, Limewire or The Pirate Bay etc.

Download games from sites like BitTorrent, Limewire or The Pirate Bay etc.

Download TV programs from sites like Rapidshare, Megaupload, Netload or Filefactory etc.

12%

11%

8%

8%

8%

6%

6%

6%

5%

5%

Tracking current filesharing & piracy

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"The bottom line is that the operators of the Pirate Bay and others like them are criminals who profit handsomely by facilitating the distribution of millions of copyrighted creative works and files protected under the law." 

-- John Malcolm, Executive Vice President and Director of Worldwide Anti-Piracy Operations for the MPAA

Base: 18+ population (2,344) – nationally representative

Q. Please look at these activities and tell us whether you do any of them.Weekly or more often/every 2 weeks/monthly/less often/never/used to but not now

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Watch videos on YouTube

Play PC games

Stream TV progs from sites like BBC iPlayer

Buy DVDs

Play console games (PS3/Wii/Xbox 360)

Stream music from social networks

Go to the movies/cinema

Buy legal music downloads

Rent DVDs

Buy games for PS3/Wii/Xbox 360

Buy PC games

Buy music from mobile manuf'r or network

50%

41%

39%

31%

30%

28%

28%

19%

19%

13%

11%

6%

47%

41%

20%

20%

27%

27%

26%

16%

36%

9%

7%

6%

USA (Nov-09)GB (Nov-09)

Overview of activity (% do at least monthly)

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Remarkable levels of consistency between GB and US entertainment activities with DVD rental and TV streaming the only strong differences

Base: November 2009 fieldwork GB 18+ population (1,959), USA 18+ population (2,344) – nationally representative samples

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Stream programs from sites like BBC iPlayer

Stream programs from sites like Hulu.com

Nintendo Wii

3G phone (excluding iPhone)

Xbox 360

Playstation 3

iPod Touch

Blu-ray player (excluding Playstation 3)

An e-Book reader

iPhone

26%

19%

12%

10%

9%

6%

4%

6%

23%

12%

13%

9%

8%

7%

3%

6%

USA (Nov-09)

GB (Nov-09)

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Ownership of devices©

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Device ownership is equally consistent, with the only major difference being a higher incidence of 3G phone ownership in GB.

Base: November 2009 fieldwork GB 18+ population (1,959), USA 18+ population (2,344) – nationally representative samples

Send / receive photos

Listen to music stored on the device

Send / receive email

Visit social networks like Facebook, Myspace, Bebo

Play games that have been bought and downloaded

Watch short videos

Stream video from YouTube

Watch music videos

Listen to music streamed from the Internet

Use Twitter

Stream video from BBC iPlayer (GB) / Hulu (US)

Watch full length television programs

Watch full length movies

Online gambling for money

40%

23%

21%

14%

12%

9%

6%

6%

6%

3%

4%

4%

3%

2%

39%

14%

23%

13%

12%

7%

7%

4%

5%

4%

1%

3%

2%

1%

USA (Nov-09)

GB (Nov-09)

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Mobile activities©

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Base: November 2009 fieldwork GB 18+ mobile owning population (1,887), USA 18+ mobile owning population (2,071) – nationally representative samples

GB mobile owners are more likely to use their device as a music player, but otherwise there is a fairly consistent pattern of mobile media usage between the two countries.

Share music with your friends by swapping hard disk drives or USB memory sticks

Download music from sites like BitTorrent, Limewire or The Pirate Bay etc.

Download movies from sites like BitTorrent, Limewire or The Pirate Bay etc.

Download TV programs from sites like BitTorrent, Limewire or The Pirate Bay etc.

Share movies or TV programs with your friends by swapping hard disk drives or USB memory sticks

Download music from sites like Rapidshare, Megaupload, Netload or Filefactory etc.

Download games from sites like BitTorrent, Limewire or The Pirate Bay etc.

Download movies from sites like Rapidshare, Megaupload, Netload or Filefactory etc.

Download TV programs from sites like Rapidshare, Megaupload, Netload or Filefactory etc.

Download games from sites like Rapidshare, Megaupload, Netload or Filefactory etc.

17%

16%

13%

13%

12%

10%

10%

9%

9%

9%

12%

11%

8%

8%

8%

6%

6%

6%

5%

5%

USA (Nov-09) UK (Nov-09)

Current filesharing & piracy©

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Base: November 2009 fieldwork GB 18+ population (1,959), USA 18+ population (2,344) – nationally representative samples

While legal entertainment behaviors and device ownership levels are fairly consistent between the two countries, this analysis shows GB consumers to be somewhat more active than their US counterparts in illegal file sharing activities.

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Share music with your friends by swapping hard disk drives or USB memory sticks

Download music from sites like BitTorrent, Limewire or The Pirate Bay etc.

Download TV programmes from sites like BitTorrent, Limewire or The Pirate Bay etc.

Share movies or TV programmes with your friends by swapping hard disk drives or USB memory sticks

Download movies from sites like BitTorrent, Limewire or The Pirate Bay etc.

Download music from sites like Rapidshare, Megaupload, Netload or Filefactory etc.

Download games from sites like BitTorrent, Limewire or The Pirate Bay etc.

Download movies from sites like Rapidshare, Megaupload, Netload or Filefactory etc.

Download TV programmes from sites like Rapidshare, Megaupload, Netload or Filefactory etc.

Download games from sites like Rapidshare, Megaupload, Netload or Filefactory etc.

18%

18%

12%

13%

13%

11%

10%

10%

10%

9%

17%

18%

13%

14%

13%

12%

11%

11%

9%

9%

17%

17%

13%

13%

13%

8%

9%

8%

8%

8%

19%

18%

14%

15%

14%

13%

12%

12%

12%

10%

17%

16%

13%

12%

13%

10%

10%

9%

9%

9%

20%

18%

16%

15%

15%

13%

12%

12%

12%

11%

Wave 6 (Feb-10)Wave 5 (Nov-09)Wave 4 (Aug-09)Wave 3 (May-09)Wave 2 (Feb-09)Wave 1 (Nov-08)

Tracking current filesharing & piracyBase: wave 1 (1,980), wave 2 (2,012), wave 3 (2,007), wave 4 (2,180), wave 5 (1,965), wave 6 (2,037)

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Overall levels of piracy are steady over past 15 months

What’s Next

Continued focus on content portability Internet enabled TVs Smartphones, Tablets, eReaders

Unthrottling Mobility – 4G Google vs. the telecoms

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Mike SaxonSVP, Harris Interactivemsaxon@harrisinteractive.com201-564-0617