London – New research by Edelman, the world’s largest independent PR agency, reveals that Trust in Entertainment companies has significantly dropped in the UK from 47% to 31% within a year among 18-34 year olds. The Edelman Trust in Entertainment survey – which explores attitudes and behaviours towards entertainment companies in the UK, US and Germany – also highlights a lack of confidence globally, with only a third of all respondents trusting the industry to do what is right. The research follows the 2008 Edelman Trust Barometer, the firm’s ninth global Trust and credibility survey published in January, which showed Entertainment to be the third least trusted sector globally among 25-64 year-old opinion elites* – beating Insurance and Media Companies (in last and penultimate place respectively). However, it is not all doom and gloom for the sector: in developing countries with a high consumption of entertainment products, such as Brazil, Mexico and India, the sector fares higher in the Trust stakes in comparison with other industries. The Trust in Entertainment survey highlights the need for Entertainment industry executives to understand what drives Trust as consumers are likely to translate their Trust – or Distrust – into direct action:
Distrust would drive 55% of UK respondents to stop buying a company’s services or products, up from 43% in 2007
Around half (51%) across all three countries would share negative opinions with others or refuse to invest (49%)
Where consumers resort to piracy and illegal downloading, this is most rife in the UK (1 in 4 respondents have downloaded content illegally) and least likely in Germany (1 in 10 respondents have downloaded content illegally) One of the key drivers of Trust determining consumer behaviour is perceived value for money. Accurate pricing of products and services is essential and the research points to the complexity of opinion held in these markets, with some strongly believing content should be free:
- Overall, a price reduction would have a positive impact on the industry with over half (54%) of all respondents indicating this would encourage them to buy content directly from sites, rather than obtain content illegally
Those in Germany would be the most likely to take advantage of price reductions and change their behaviour to legal downloads (60%), closely followed by the UK (56%)
- However, a third of all respondents across the three countries said they are unwilling to pay for any downloaded content, including films, TV series, movies and games
- This is particularly prevalent in the US where 40% of all respondents said they would not be affected by price reductions as they are not prepared to pay for downloaded content Gail Becker, President, Western Region, and Global Head of Edelman’s Digital Entertainment, Rights and Technology practice, says: “The industry is exploring a number of business models to meet consumer needs – such as the advertising-funded models prevalent in the music industry. It is positive that the research shows that pricing models can help reduce illegal downloading to some extent. As these models mature, it is crucial for Entertainment companies to communicate the number of value added services they bring to those customers that download legally. Understanding consumers’ attitudes toward Trust plays a vital role in achieving this.” Some parts of the industry are faring better than others: film producers and motion picture studios are perceived as providing the best value for money in all three markets (53%). This is followed by TV broadcasters (50%), video games (43%) and music companies (42%). Nicole Harvey, Senior Vice President who heads up Edelman’s Digital Entertainment, Rights and Technology practice in Europe, says: “There is still some work to do in helping the Entertainment industry bounce back to the same levels of Trust that other industries are experiencing and it will be important for companies find clever ways to engage their endorsers. In the Conversation Age, companies need to understand who holds their Trust. In the UK, for example, there seems to be a youthful optimism among those aged 18-24 years, who are far more trusting of the Entertainment sector (40%) than 25-34 year olds (29%).”
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Notes to Editors:
About the Trust in Entertainment survey The Trust in Entertainment survey is an annual survey in the UK. This year, it also included the US and Germany. The online survey among 18 to 34 year old consumers was conducted between 29th January – 5th February 2008. The sample comprised 502 respondents in the US, 500 in the UK, and 525 in Germany. About the Edelman Trust Barometer 2008 The 2008 Edelman Trust Barometer is the firm’s ninth global trust and credibility survey. The survey was produced by research firm StrategyOne. It consisted of thirty-minute telephone interviews conducted in October-November 2007. This year, for the first time, the survey sampled two different age groups concurrently (25-34 and 35-64). * “Opinion elites” meet the following screening criteria: – College educated – In top 25% of household income per age group in each country – Reported significant media consumption and engagement in business news and public policy. For more information and to view results, please go to Edelman Trust Barometer .
For further information, please contact:
Arabella Bakker,
Head of Marketing, Edelman UK
+44 20 7344 1527
Arabella.bakker@edelman.com