1

Exploring Evolving Trends in Viewership

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Bigger screen is Big Kahuna…

TV Viewing Share-of-clock

(Adults 18+)

Regularly scheduled

TV70%

DVR13%

Sum of all other devices (17%)

TV viewing adults are spending 70% of their time watching

regularly scheduled television

In addition, 76% prefer regularly scheduled

television on a TV set.

Q35. Please indicate the percentage of the total time you spend watching TV programming content on each device, service or platform.

Q36. Regardless of what video viewing devices you currently have, how do you prefer to watch TV programs?

3

Viewing loyalty is still alive and well

o 83% of viewers reported making a special effort to watch at least one program in primetime the previous night.

o 38% report appointment viewing 4 or more programs.

o 28% of these viewers say the number of shows they appointment view has increased in the last 2 years.

Q9. Do you have any PT shows you make special effort to watch?

Q10. How many PT shows do you make special effort to watch?

Q11. Has the number of shows increased or decreased in P12M?

4

Top alternative platforms to view television/movies

o DVR at 36%o On the computer via Internet at 26%o VOD at 21%o On the computer via DVD or files at 20%o Next generation gaming console at 11%o On the TV from the Internet at 10%o Cell phone / portable media device at 6%

Q29a. Do you currently watch TV shows and/or movies using the following devices, services or platforms?

5

25%

57%

18%

Watching more, less or about thesame on 'regularly scheduled

television on a TV set'

Less

About the same

More

Fewer than one-in-five cross platform users are watching less regularly scheduled TV

Q34. Compared to 6 months ago, have you been watching TV shows on these devices, services or platforms more, less or about the same?

Among Cross Platform Device Users:

6

Online Viewing Enhances TV Engagement + Loyalty

38%

26%

To catch up on missedepisodes

To watch past episodesin succession

Online viewing is often used as additional means to watch their shows

Q21. What are some of the reasons why you would choose to watch a TV show online?

7

Impact of Cable On Demand

and DVRs

8

On Demand Introduces Viewers to New Programming

• Almost two-thirds use On Demand to look for new programs and movies.

• Makes them more likely to try new programs.

• Broadens their viewing to include new genres.

8

9

On Demand Driving Viewers to Linear Programming?

9

Base (Have OD and currently use it):(OD Only/OD and DVR) (339/333)Q.46 - Have you ever watched a program On-Demand that you don't normally watch and then sought that program out on the channel that regularly airs the program?

On Demand Linear TV

OD+DVR: 47%

On Demand-only: 34%

10

On Demand and DVRs Increase TV Viewing and Enjoyment

DVRs:

• Have increased their enjoyment of television.

• DVR users say they spend more time watching TV because of their DVRs.

On Demand:

• Has increased the enjoyment of television

• On Demand households report they watch more programs as a results of on Demand.

On Demand + DVR

• Increase both viewing time and enjoyment

10

11

Standard Technology Adoption CurveStandard Technology Adoption Curve

Consumer Segmentation

Extreme Extreme TechiesTechies

13%13%

Modern Media Modern Media MavensMavens

6%6%

TrendsettersTrendsetters4%4%

TV Seeking TV Seeking EnthusiastsEnthusiasts

17%17%On-the-Go On-the-Go TimeshiftersTimeshifters

7%7%TV Devoted Online TV Devoted Online

SocializersSocializers7%7%

Entertainments Entertainments IndifferentsIndifferents

32%32%

All-Around All-Around TraditionalistsTraditionalists

13%13%

12

Standard Technology Adoption CurveStandard Technology Adoption Curve

Defining “Next Generation”

Extreme Extreme TechiesTechies

13%13%

Modern Media Modern Media MavensMavens

6%6%

TrendsettersTrendsetters4%4%

TV Seeking TV Seeking EnthusiastsEnthusiasts

16%16%

On-the-Go On-the-Go TimeshiftersTimeshifters

7%7% TV Devoted Online TV Devoted Online SocializersSocializers

7%7%

Entertainments Entertainments IndifferentsIndifferents

32%32%

All-Around All-Around TraditionalistsTraditionalists

13%13%

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Focusing on the 3DTV Experience

Discover a realistic view of consumer perceptions of 3DTV.

Partnered with:

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Focusing on the 3DTV Experience

First comprehensive study including exposure to 3DTV content in both qualitative focus groups and a full

quantitative survey

15

TV City

16

TV City

17

3D Experience

18

3D Experience

19

3D Experience

20

21

3DTV Study Objectives

• Gauge consumer awareness and familiarity with 3DTV

• Uncover what 3DTV features and genres appeal to and attract consumers

• Understand the full 3DTV experience from consumers’ perspectives, including the weaknesses or realities

• Discover how 3DTV will impact technology adoption and consumer behavior

22

Content Tested

• Situation Comedy

• Non-fiction

• Sports

• Live Events – Concerts

• Movies

• Videogames

23

24

25

Technology Challenges

• Active (TV) vs passive (polarized) theatrical

• Formats vary: 3 files (left eye, right eye, audio

• Players not compatible

• Glasses not compatible

26

27

Focusing on the 3DTV Experience

Not Quite Ready for Prime Time…But Getting There!