The Future of Commercial Television August, 2011

Macro Trends

The Future of Digital TV

Big Opportunities

Today’s Agenda

We’ve All Heard About The “Death Of Television”

But Rumors of Television’s Demise Are Greatly Exaggerated!

“…Americans watched more television than ever in 2010, according to the Nielsen Company. Total viewing of broadcast networks and basic cable channels rose about 1 percent for the year, to an average of 34 hours per person per week. The generation-long shift to cable from broadcast continued, but subtly, as the smallest of the big four broadcast networks, NBC, still retained more than twice as many viewers as the largest basic cable channel, USA.”

The Landscape Has Changed And Will Continue To Do So

Consumer

Media Technology

Always On(line) Time shifting Screen shifting Connected Multi-tasking

Consumers

Control

Technology

Screens Boxes Enablers

Content Ubiquity and Interactivity

Fragmentation Disintermediation New Media Companies Changing Models

Media

Democratization

What Do These Trends Mean To Us?

Personalized Everywhere Anytime Addressable Social Transactional

The Future of TV

Me TV

Current: Personalized Content in Aggregate

94MM+  Video  Views  

23MM+  Channel  Views  1.7BN+    Total  Upload  Views  

PERSONALIZED

Future: Micro-Segmentation & Targeting

From User Selected Content to Algorithm Delivered Content

PERSONALIZED

Current: From TV Screen to PC Screen

“It will never make money…”

EVERYWHERE

Future: To Every Screen

TV is Ubiquitous, Portable (and in the Cloud)

100ft 10ft 3ft 1ft

EVERYWHERE

15  Source: All data represent monthly figures based on Nielsen Fusion for audience overlap and unduplication, Nielsen Media Research (N-Power) for cable audience reach and Nielsen Netview for online audience reach. Oct '09 (most recent) Nielsen Fusion unduplication patterns applied across Jan '10 Nielsen Media Research cable monthly reach and Jan '10 Nielsen Netview online monthly reach. Unique mobile audience estimates based on Dec '09 Nielsen Mobile Total Web Report including reported mobile-online unduplication factors.; Nielsen NetRatings Jan 2010. Nielsen Mobile, June 2010; Nielsen’s NPower , Cume Analysis, Jan 2010, (Total Day M-Su 6a-6a) Persons 2+, (1 minute qualifier).; Omniture and DFP, June 2010; Apple App Store, Sep. 2010;Android Market Place, Sep. 2010; RIM App World, Sep 2010

1.8 BILLION page views per month

Every Screen: The Weather Channel

EVERYWHERE

"

85M+"consumers use "2+ platforms "of The Weather Channel

Source: Magid TWC Segmentation Study, 4Q 2010.

Every Screen: Co-Ordinated Cross-Platform Devices

EVERYWHERE

Current: Contextually Based Advertising

http://www.nds.com/solutions/dynamic_advertising.php

ANYTIME

Future: Contextually and Behaviorally Based Advertising

On Demand is Commonplace

ANYTIME

Current: Location-Based

ADDRESSABLE

Future: Data-Driven Messaging

From One Size Fits All to Tailored Messages

ADDRESSABLE

Current: Social Provides Earned Media & Increased Engagement

SOCIAL

36MM+  Likes  

600M+  Check-­‐ins  

Future: Native Social Experiences

Viewers Adding Their Own Layer of Narrative to Content

SOCIAL

Current: Smartphones

TRANSACTIONAL

Future: SmartTVs

The Rise of tCommerce

TRANSACTIONAL

Tailored Messages Ubiquitous and Portable On Demand From Mass to Micro Targeting Shared Experience T-Commerce

In Summary

Moving From Passive Viewing to Active Viewing

ROI and KPIs Sustainable Brand Experiences

Orchestrating Owned, Earned, Paid Shared Social Control

How do we Monetize?

1.  Dynamic Insertion

2.  Multi-Screen Content

3.  Social Applications

4.  T- Commerce

Big Opportunities

1. Dynamic Insertion

Increase Response: Right Message - Right User - Right Context

By 2015, Addressable Ad Spend Will Top $11.5bn in the US

NATIONAL :30

SEGMENT #1 :30

SEGMENT #3 :30

SEGMENT #2 :30

SEGMENT #4 :30

ROI  &  KPIS   SUS  BR  EX   SHARED  SOC  CON   OEP  

2. Multi-Screen Content

Provide Access to Content Across Screens/ Devices to Fit Consumer Lifestyles

ROI  &  KPIS   SUS  BR  EX   SHARED  SOC  CONT   OEP  

Glee Karaoke app lets fans sing their favorite songs from the show

Weather Channel provides information on any screen

ABC’s iPad app lets you watch – and interact – with your favorite

shows wherever you are

3. Social Applications

Create a Lean-Forward Experience Through Peripheral Comms & Content

ROI  &  KPIS   SUS  BR  EX   SHARED  SOC  CONT   OEP  

#TheGleeProject is visible throughout Oxygen broadcasts 101,055 followers of @TheGleeProject

14,000 Tweets were sent this July during the first ever presidential debate held entirely on Twitter.

4. T- Commerce

Closed Loop Integration Enables Immediate Commerce Opportunities

ROI  &  KPIS   SUS  BR  EX   SHARED  SOC  CONT   OEP  

HSN, Inc – a $3Bn retailer across TV, online, mobile, catalog & retail stores – also offers HSN Shop by Remote which is available in over 30MM homes.

Closing Thoughts

TV is not dead – it is alive and thriving TV is Digital “The Future” is already underway You can shape what’s next!

Thank You

Francis Anderson