Demand for an Apple TV Set Threatens to Seriously Disrupt Established Players Says a new Research Report

Demand for an Apple TV Set Threatens to Seriously Disrupt Established Players Says a new Research Report

"Can Apple do to the TV market what it did to mobile?" KAE and Toluna says an Apple TV set has the potential to be a huge hit with consumers

LONDON, April 17, 2012/PRNewswire/ --

KAE a leading strategic marketing and research consultancy and Toluna, a global
pioneer in online polls, surveys and opinions have teamed up to release a major new study
illustrating how large manufacturers could lose out if Apple launches a physical TV set.

Overall, the study highlighted that 25% of consumers in the US find the idea appealing
and would buy it once it becomes commercially available - compared to 30% in the UK.
Consumers that already own at least one Apple device are more likely to buy an Apple TV
set, 2 in 5 (US 38% - UK 43%) find the idea appealing and would purchase should the
product become available.

Lee Powney, Chief Commercial Officer at KAE said: "The huge potential of an Apple TV
set, although impressive, should not be seen in isolation. Such a move would be an
incredibly powerful extension of the iOS platform, accessed via a more compelling device
option than Apple's current offering (Apple TV). It would create new monetisation
opportunities for developers and accessory manufacturers by bringing the Apple experience
further into the home. This would strengthen both the ecosystem and the benefits that
consumers derive from owning many differing Apple devices. Will Apple do this? The
pressure to maintain the lion's share of preference from ecosystem members and create
additional device-to-device interaction benefits for consumers means it should do this,
and must do this."

Sony, Samsung and LG are the market-leading brands most likely to suffer should Apple
decide to launch its mooted Apple TV concept. In the UK, a sizeable 38% of current Sony TV
owners and 36% of Samsung TV owners claimed they find the idea of an Apple TV appealing
and would buy one. In the US, the brand most at risk from the concept is LG, where 3 in 10
(31%) of owners would be likely to convert should an Apple TV become available.

Approximately 3 in 5 US consumers questioned who were very likely to buy the TV said
they trust Apple to produce a high quality TV set (59%), a sentiment echoed by UK
consumers (62%). Design also features highly in respondents' reasons to purchase with over
half of all those likely to buy claiming that Apple's reputation in ground-breaking design
would no doubt also be used in TV (52% in US and 58% in the UK).

MD of KAE, David Rankin,: "Although this wave of research looked only at the USA and
UK, we believe that the greatest revenue opportunities in 2013-15 for an Apple TV set are
clustered in the 'home territories' of Apple's TV competitors - i.e. Japan, Korea and
China. We're excited at the prospect of measuring that potential and the impact that
success will have on Apple's share price."

Consumers were asked which features they felt an Apple TV set would be equipped with:
The top anticipated feature for potential customers of the unconfirmed Apple TV set is
similar for both countries, which is the ability to connect to the internet (73% in the US
& 75% in the UK). The other top features selected by potential US customers were running
apps on TV (44%) and the ability to synchronise automatically with other Apple devices
(41%). For the UK market the other two main features expected were the ability to
synchronise automatically with other Apple devices (47%) and for the device to be 3D
enabled (41%).

This survey is the latest in a series by KAE conducted to assess Apple's potential to
extend into new categories. To view previous research please visit
http://tinyurl.com/84uozly

NOTES TO EDITORS

About the research

The nationally representative KAE Toluna survey was conducted across the US and the
UK, with a total sample size of 5,892 (2,921 respondents from the US and 2,971 respondents
from the UK).

The article's based on the opinions of those who currently have a TV at home - 5,747
(UK - 2,891; US - 2,856).

The profile of those consumers who find it appealing and would buy an Apple TV set
comprised men and women aged 25-44, living in city centres or city suburban areas, with an
average monthly income of between GBP1500-GBP2999 in the UK; and men and women aged 25-44,
earning on average over $5000 monthly in the US.

About KAE

KAE has been providing clients with an innovative, empirically supported advantage for
the last 40 years. We are focused on working with our clients to provide them with key
market insights and strategic advice on the full gambit of marketing issues, from
evaluating potential markets through a rigorous, hands-on process, to working with you to
develop strategies to better maximise market opportunities

About Toluna

Leading online panel community pioneer Toluna combines its online market research
panel with industry-leading technology, enabling organisations to generate valuable
customer insight by surveying their target audience quickly and efficiently.

It runs the popular social voting community, toluna.com [http://toluna.com ], which
collects more than one million poll votes and opinions a day across 42 countries. Toluna
has offices in the UK, US, Canada, France, The Netherlands, Romania, Germany, Spain,
India, Australia, Japan and Hong Kong.

For more information, visit http://www.toluna-group.com.

Source: KAE

PRESS ENQUIRIES: For press enquiries, please contact Victoria Usher on +44(0)7971-129104/01892-785070 or via email at victoria@gingermaymarketing.com.; KAE: Ana Cristea, +44(0)20-7960-3300, Ana.Cristea@kae.com

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