The Trust in Entertainment survey explores attitudes toward entertainment companies in the UK and US. It examines the impact trust has on behaviours such as purchase, recommendation, file downloading and sharing. 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 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 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)

1. Trust in Entertainment Companies
The the purpose Consumer Study was
in good UK, US and Germany
undertaken in order to better
United Kingdom
understand social issues, brands and
consumer involvement related to “good
causes”
Prepared by StrategyOne
April 2008
1

2. Methodology
 Objective was to explore levels of trust in the entertainment sector among 18 to 34 year
old consumers in the US, UK and Germany.
 StrategyOne conducted an online survey among 18 to 34 year old consumers in the US,
UK and Germany between 29th January – 5th February 2007.
 The sample comprised of 502 in the US, 500 in the UK, and 525 in Germany
 The margin of error (MoE) per country is +/- 4.3% at the 95% confidence level.
 The report compares results by key demographics and respondent type where
appropriate.
2

3. Trust In The Entertainment
Sector
Global Trust Barometer 2008
3

4. Entertainment is third least trusted sector/
Technology is most trusted globally
Ranked by trust
(2008 Edelman Trust Barometer) Top/bottom 4 boxes shown
A6-A17. Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each
of the following industries to do what is right. Please use a 9-point scale where one means that you “DO NOT TRUST THEM AT ALL”
and nine means that you “TRUST THEM A GREAT DEAL.” [TOP FOUR BOXES SHOWN] 35-64 Opinion Elites (18 Countries) 4

5. Trust in Entertainment Sector Varies Widely
By Country (2008 Trust Barometer)
Ranked by trust
(2008 Edelman Trust Barometer) Top/bottom 4 boxes shown
A6-A17. Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each
of the following industries to do what is right. Please use a 9-point scale where one means that you “DO NOT TRUST THEM AT ALL”
and nine means that you “TRUST THEM A GREAT DEAL.” [TOP FOUR BOXES SHOWN] 35-64 Opinion Elites (18 Countries) 5

6. Two thirds of 18-34 Consumers do not Trust
the Entertainment Sector to Do What is Right
•Overall, just over a third of respondents trust the entertainment industry to do what is right
(35%).
•Those in Germany held the highest level of trust (41%), compared to those in the UK (31%)
and the US (32%).
•Those aged 18 – 24 are more trusting of the entertainment sector across all countries
surveyed than 25-34 year olds.
Trust in the UK entertainment sector has fallen 16 percentage points since last year
•Trust in the entertainment sector among UK 18 – 34 year olds has fallen this year to 31%
from 47% in 2007. One explanation may be related to a number of public media scandals
involving BBC, ITV, GMTV, Channel 4 and FIVE in the past year.
6

7. Trust in Entertainment Industry
Those aged 18 – 24 are more trusting across all countries compared to their older counterparts..
35% Total
18 - 24
Total 40%
25 - 34
29%
31%
UK 36%
26%
32%
US 39%
25%
41%
DE 46%
36%
Q1. To what extent do you trust or distrust businesses in the entertainment industry to do
what is right? Please use a 9-point scale where one means that you “DO NOT TRUST THEM AT ALL” and
7
nine means that you “TRUST THEM A GREAT DEAL” Base: All respondents 1527

8. UK Trust in the Entertainment Sector –
2007 / 2008 - All 18 – 34 year olds
Trust in the entertainment sector among UK 18 – 34 year olds has fallen this year to 31% from 47% in 2007 - a fall of
16%
Q1. To what extent do you trust or distrust businesses in the entertainment industry to do
what is right? Please use a 9-point scale where one means that you “DO NOT TRUST THEM AT ALL” and
8
nine means that you “TRUST THEM A GREAT DEAL” Base: All UK respondents 2008: 500, 2007: 259

9. Trust in the Entertainment Sector among 25 – 34
year olds (All consumers vs. Opinion elites*)
Trust in the entertainment sector among 25 – 34 year olds in the trust barometer is generally higher than the results
from this latest digital rights survey, with the exception of Germany which shows consistent results between the two.
*From Edelman 2008 Trust Barometer
Q1. To what extent do you trust or distrust businesses in the entertainment industry to do
what is right? Please use a 9-point scale where one means that you “DO NOT TRUST THEM AT ALL” and
9
nine means that you “TRUST THEM A GREAT DEAL” Base: All respondents 25 - 34

10. Entertainment Companies And Value
For Money
10

11. Perceived Value for Money Influences How
Entertainment Companies are Viewed and
Trusted
US consumers think entertainment companies provide the best value for money – perceiving all types of
companies as better value compared to those in the UK and Germany. Germans rated all companies as
providing considerably less value for money compared to those in the US and the UK.
11

12. Value for Money Summary
- Trusters vs. distrusters-
The majority of entertainment trusters see value in the different types of companies within the entertainment industry,
while the majority of distrusters do not see value.
Q3. To what extent do you think the following types of entertainment companies
provide good or bad value for money? All respondents 1527 12

13. Value for Money Summary
- Total good value -
US consumers perceive all types of entertainment companies as providing better value for money than those in the
UK and Germany. German consumers see significantly less value in entertainment companies.
Q3. To what extent do you think the following types of entertainment companies
provide good or bad value for money? All respondents 1527 13

14. The Consequences Of Distrust
14

15. The Consequences of Distrust are High
• Distrust by young consumers in entertainment has undesirable consequences of not buying
(57%), spreading of negative word of mouth (51%) or refusing to invest in them (49%).
• German consumers – while having the greatest level of trust in the entertainment industry, are the
most likely to take negative action when they don’t trust companies (especially in terms of refusing to
buy – 68%, or invest – 67%).
15

16. The Consequences Of Distrust
Distrust in the entertainment sector can result in decreased sales, negative word of mouth and a barrier to dialogue.
Q4. When you think about entertainment companies that you do not
trust, which of the following actions are you more inclined to take in
16
relation to those companies Base: All respondents 1527

17. Illegal Downloading Behaviour
17

18. Illegal Downloading of Entertainment
Prevalent
• Those in the UK tend to be the most illegally active when it comes to online entertainment, being the
most
likely to have downloaded content illegally (25%), ripped copies without paying (24%) and shared files
illegally (18%).
• Germans display the least likelihood to engage in illegal activities online, with the majority (73%)
indicating
they have not done any of these activities (compared to 63% in the US and 59% in the UK).
18

19. Illegal Downloading Behaviour
One quarter of young British consumers are illegally downloading online entertainment content. In contrast, three
quarters of German youths say they have not carried out any illegal activities.
Q5. Have you already done any of the following actions regarding internet
downloading? Base: All respondents 1527 19

20. Impact Of Price Reduction On
Illegal Download Behaviour
20

21. Many still Unwilling to Pay for Content;
However, Price Reductions Would Encourage
More Use of Legal Alternatives
• Overall –a price reduction would have a positive impact upon the industry – with over half (54%) indicating
this
would encourage them to buy content online rather than download illegally. However, a third
(32%) said they are not willing to pay for downloaded content at all (this peaks in the US – 38%).
• Those in Germany would be the most likely to take advantage of price reductions by purchasing online
material
from the actual sites (60%), closely followed by those in the UK (56%). Those in the US were the most likely to
indicate that they are not affected by prices as they are not prepared to pay for downloaded material (39%).
21

22. Impact Of Price Reduction On Download
Behaviour
Those in Germany would be the most likely to take advantage of price reductions by purchasing online material
from the actual sites (60%), closely followed by those in the UK (56%). Respondents in the US were the most likely to
indicate that they are not affected by prices as they are not prepared to pay for downloaded material (39%).
Q6 - Which of the following would you be most likely to do if entertainment
companies reduced the prices for downloading films, TV series, music and games
22
over the internet? Base: All respondents 1527

23. Final thoughts on 18 – 34 year old entertainment
consumers…
 Least trusting of entertainment industry – and trust fallen 16% from 2007
levels
UK  On average less than half perceive entertainment companies as providing
good value for money
 Most active participation in illegal download behaviour
 Similar levels of trust in the entertainment industry as the UK
US  Highest perceptions of entertainment companies providing value for
money
 Most likely to be unaffected by price reductions as four in ten unwilling to
pay for downloaded material
 Most trusting of entertainment industry
DE  Lowest perceptions of the entertainment industry providing value for money
 Most likely to take negative action as a result of distrust but least likely to
download illegally
23