Study Reveals Shift as Social Networks Become "Social Entertainment"

Internet is Second Only to TV as a Frequent "Source of Entertainment"

LONDON, May 20, 2010 - Research launched today by Edelman, the world's largest independent PR
agency, shows that consumers believe social networks provide a higher value
experience compared with other forms of entertainment. Edelman's annual Trust
in the Entertainment Industry survey, now in its fourth year, also reveals
that the internet, as a source of entertainment, is second only to
television. The survey of 1,000 18-54 year olds in the United States and
United Kingdom analyses the issues that influence consumer trust in
entertainment companies.

In the US, the rise of the internet as a frequent source of entertainment
is most dramatic in the 18-34 group, rising from 27 percent in 2009 to 42
percent in 2010. In the US, 32 percent of 18-54 year olds look most
frequently to the web for entertainment (compared with 58 percent watching
TV). The internet also ranked second in the UK, with 30 percent turning to
the web most frequently, compared with 57 percent watching TV.

Social Entertainment

Seventy-three percent of 18-24 year olds in the US and 61 percent in the
UK see social networks as a form of entertainment. Fifty percent (US) and 56
percent (UK) of respondents aged 35-49 also consider social networking sites
as a form of entertainment. Despite the growth of social entertainment,
consumers do not currently identify Internet brands as entertainment
companies.

Whilst social networking sites may not yet be recognised as entertainment
companies, they are leading the way in terms of adding value to the consumer
experience of entertainment. The majority of respondents in both the UK and
US felt that social networking sites provide better value than music, gaming
and television companies.

Gail Becker, President of Edelman's Western region comments, "While not
surprising that TV tops the list, seeing the internet rank second as a source
of entertainment - evolving from its origins as a source of information - is
significant. We believe that all companies today exist in this new era that
we call social entertainment and we will continue to see its influence on how
consumers and companies engage with entertainment and with each other."

The study also reveals consumer attitudes towards the exchange of
personal information in return for free entertainment. Eighty nine percent of
those in the UK say they would not be willing to give up personal information
to access free entertainment.

Jonathan Hargreaves, Managing Director of Technology, Edelman, Europe
adds: "The study shows that consumers do value privacy but perhaps they are
not considering the personal information that they already distribute freely
via social networks. Social entertainment impacts the role of privacy - both
in how individuals behave online but also in terms of how entertainment
companies use customer information. This new era has created a shift in the
trust dynamic and businesses must consider the implications of this in order
to nurture future trust in a brand."

Additional key findings:

Freedom of Content
In the 2008 study, free content was the dominant issue. This year's study
shows it is the ability to access content across devices, not cost, that is
of significance to consumers.

    - 65 percent of US respondents think it is important that they are able
      to access their entertainment on a number of different devices

    - 59 percent of UK respondents think it is important that they are able
      to access their entertainment on a number of different devices

    - 58 percent (US) and 53 percent (UK) of consumers state they would be
      willing to pay for content if they were able to move it across devices

Spending

Spending on entertainment continues to stay strong according to this
year's results.

    - On average, US respondents spend $47 per month on entertainment
      content

    - On average, UK respondents spend GBP25 per month on entertainment
      content

    - 83 percent of US and 76 percent of UK consumers state that ease of
      purchase influences their decision to pay for content

    - In the UK consumers who think social networking is a form of
      entertainment are more likely to have spent more money on entertainment
      in the last year

Impact on Trust

    - Those that state that they trust entertainment companies are also more
      willing to pay for content

    - Quality (65 percent US and 58 percent UK) and Pricing (65 percent US
      and 58 percent UK) have the most impact on consumer trust

    - 32 percent of UK consumers and 28 percent of US consumers trust
      entertainment companies

    - Trust was at a three-year high among those aged 18-34:

              2008       2009       2010
    UK Trust: 31 percent 29 percent 34 percent
    US Trust: 32 percent 17 percent 34 percent

Additional analysis of the study can be found at:
www.thenakedpheasant.wordpress.com

For further information, please contact:

Arabella Bakker, UK Head of Marketing: +44(0)203-047-2013 /
arabella.bakker@edelman.com

Andrew Griffiths, Edelman DET: +44(0)203-047-2037 /
andrew.griffiths@edelman.com

For further information, please contact: Arabella Bakker, UK Head of Marketing: +44(0)203-047-2013 / arabella.bakker at edelman.com; Andrew Griffiths, Edelman DET: +44(0)203-047-2037 / andrew.griffiths at edelman.com