Confidential- Not for disclosure outside AT&T Broadband AT&T Broadband IPG Customer Feedback Prepared for: TV Guide Prepared by: Josh Staller John Milanski User Experience Strategy & Design Group June 18, 2015

Confidential1 In-home interviews with AT&T Digital TV customers using TV Guide with PVR, VOD, or ITV services. –25 households (most from previous focus groups) –33 participants (18 males, 15 females) –Ages ranged from 20 to 74 (average = 40.3) –Income ranged from 105K / year –Number of people in household ranged from 1 to 8 (average = 3.4) –Number of TVs ranged from 1 to 8 (average = 3.6) –Have internet access, make internet purchases, and use PPV. Study Overview TV Guide IPG

Confidential2 “I just want to watch TV” –Interest in features that do not enable TV viewing is minimal –People turn on the TV to relax, don’t want to think too much –Most people say they want an intellectual separation of TV viewing and PC activities Convenience and Control –Technologies that look most promising afford one or both of these attributes –Neither factor matters unless the technology supports and/or enhances TV viewing Always on –Low tolerance for service interruptions –TV state needs to be the default state KISS –Low tolerance for complexity “[The Pause button] is the greatest thing they ever made.” (Ed) “I just want to watch TV.” (John) Executive Summary Rules to live by

Confidential3 BehaviorSo what? Much of TV viewing behavior is intrinsically passive Interactive services must maintain TV video/audio context. There are multiple TV viewing contexts within the home Other activities determine how the TV is used (eating, babysitting, exercising, homework) Different users within the home have different levels of expertise wrt TV products and services Services should be targeted wrt expertise and field of use. There are multiple, non-standard TV products and services within the home Standardization (e.g., home networking) could stimulate the sale of new products. In many households, one person dominates, others acquiesce, wrt what to watch New technologies (e.g.,PVR) enable conflict resolution. Much of what is watched is by habit, and new shows are often chosen based on ads, or word of mouth Interface should focus on stored programs and favorite programs. Existing TV Behaviors How, where, and what they watch

Confidential4 TV Guide is valued, but can get in the way. “[TV Guide] is all at your fingertips, it’s so much easier than the paper.” (Beverly) Existing Service Behaviors Impact of TV Guide on TV Behavior TV Guide can get in the way of watching TV –Main Menu and Program Listings block video entirely on the DCT 2000 –Customers work around this by keying in channel numbers or browsing using the flip bar TV Guide brand is all-encompassing –Customers don’t readily differentiate between different applications in the user interface – they are all part of “the guide” –A poor experience in one application reflects poorly on all Focusing on ads over information reduces value –Acceptance –Customers understand that ads subsidize TV services –Indifference –Customers are ignoring the ads (don’t click on them, don’t read them, don’t buy the products) –Many customers are unaware the ads can be clicked on –Resentment –Can’t easily scan listings –Extra step to see program information (description, start/end times) –No information on time remaining, repeat –Jumping to competitor’s IPG “ I hate [TV Guide] with a passion … you can ’ t see what ’ s going on in the future which makes it difficult to use …” (Bryan)

Confidential5 TV Guide is vulnerable as designed. TV GuideA competitive IPG Program info display -Removes TV video+Preserves TV context +Flags repeats +Shows production date -Too much info on actors -Not enough detail on plot Listings info display -½ hour time span -Unclear start/stop time -Unclear mins in progress -Advertisements +Browsing via Flip Bar +By Channel, by Genre +Color coding of categories +1.5 hour time span +Precise start/stop time +Precise mins in progress Onscreen keyboard -Perceived as hard to use +Dynamic filtering +Perceived as easy to use (alpha layout) Other+Reminders +Favorites -Main Menu organization -Navigation of menu tree +Edit channel lineup Channel Listings On-Screen Keyboard Existing Service Behaviors Comparing IPG functionality

Confidential6 Conclusions In general, new interactive services –Must enable and enhance TV viewing –Must afford convenience and control –Must afford a reliable “always on” TV experience –Must be simple and easy to use –Must be well-integrated so that they don’t step on each other More specifically, PVR IPG displaced TV Guide as the primary IPG in overwhelming majority of households that we studied –Exposure to competitive product heightens awareness of TV Guide shortcomings –Although PVR clearly mattered, the reasons for switching were not due solely to PVR features Solution is not simply to tweak TV Guide –TV Guide is vulnerable as designed –Features in TV Guide that are relatively weak include Program info Listing info Onscreen keyboard Main Menu “portal” Advertisements –IPG should be completely re-designed to take full advantage of scaled video window –IPG should incorporate “best of class” features for presenting TV program listings and information