Simultaneous Consumption: What are Consumers Watching…

“A new generation of broadband mobile devices have empowered consumers to demand their media unlocked from the television set,

movie screen or printed page. The new consumer mantra is all media any time, any place and on any device.”

Frank Beacham – Media Magazine, The Future of Media 2010

Source: Nielsen - Three Screen Report - Q1 2010

HDTV to become common place among households

Smartphone penetration is estimated to reach 50% of the market by the middle of 2011…

Technology Growth…

Viewing Habits…

The amount of time watching Television is still increasing, viewerswatched two (2) more hours of TV per month in Q1 2010 than in Q1 2009.

TV is NOT dying… it’s evolving!

Viewing Habits by Demographics

The average American spends 35 hours, 34 minutes watching television and almost 4 hours using the Internet per week.

Average of just over 5 hours of TV per day…

Timeshifting, including DVR and

Video-On-Demand, is another technology which appears to be bolstering consumption. The Timeshifting audience increased by 14%, to more than nine and a half hours per month. As Timeshifting increases, the rate of commercial viewing during playback remains steady.

• On average, viewers watched 45% of commercials during Timeshifted playback in Q1 2010 compared with 43% in Q1 2009.

• Viewers are seeing Advertiser’s commercials

Simultaneous Usage• Today’s average home has quite a few screens that are used simultaneously

and multifariously. The TV set can play the main role, become background noise, or act as a first step in a further quest for information. – nearly a third of U.S. consumers report using their cell phones and/or computers

at the same time they watch TV

– While watching TV, Americans regularly admit to searching for information online, communicating via e-mail, instant messenger, and text, and even watching other video on a computer or cell phone

• This simultaneous media use activity is also on the rise. Between August, 2009 and February 2010 (just 6 short months), – 4% increase in the number of adults using a computer while watching TV

– Increase of 2% in the number of adults using their cell phone while watching TV

Source: Experian Simmons – April, 2010

Simultaneous Usage

• Intel commissioned RedShift Research to survey over 7,000 people in the U.K. during August, 2010, to ascertain their online behavior while watching television.

• They found that 45% of Brits admit to using sites such as Twitter, Facebookand MSN to discuss a television program while it is still being aired.

• Over half (57%) of those online discussions were about 'event TV' offerings such as sporting events, talent shows and end-of-series episodes.

• Unsurprisingly, women were found to chat online during television programs more than men - 51% vs. 38%.

Simultaneous Consumption: How it’s evolving…

Samsung Apps allows users to get the best of the web right from their TV screen.

Users can choose from a gallery of apps built for their TV that let you stream video, play games, view pictures and more…

Samsung Apps include:

Video: BLOCKBUSTER® (new movie releases), YouTube™ and Netflix(instantly stream TV shows and movies).

Games: Monopoly® from EA, interactive card games and more.

Lifestyle: Facebook®, Twitter™, Pandora (personalized internet radio) and more.

Sports and Information: Headlines and News from Associated Press andUSA Today.

With Sprint TV, don't miss a show, news report, movie or your favorite teams' latest games. Get 24/7 instant access to top tier entertainment on your phone —whenever you choose while on the Sprint 3G network.

Watch live broadcasts, special mobile programming and exclusive full-length, on-demand episodes.

Access your favorite channels¹ and networks within seconds — everything from news, weather and sports to children's programs, comedy, cartoons and lifestyle shows.

Matt Murphy - SVP ESPN Media Networks

QUOTED

“Mobile has become an invaluable screen to the digital consumer. To super serve sports fans, you have to provide live coverage on the go, and we are excited to be working with Sprint to provide this offering to its customers.”

More than 800 live events this year… • including the 2010 FIFA World Cup, MLB, NBA, Grand Slam tennis, college football & basketball

Highlights… The amount of time spent watching television is still increasing: viewers

watched two more hours of TV per month in Q1 2010 than in Q1 2009– On average, over 5 hours of TV per day

Average time spent simultaneously using TV and Internet in the home grew 9.8%, to 3 hours and 41 minutes per month

– Manufacturers are integrating TV and Web

The number of people who are timeshifting has grown 18% since last year, with the average user now timeshifting 9 hours and 36 minutes per month

– On average, viewers watch 45% of commercials within playback

The mobile video audience grew 51.2% year-over-year, surpassing 20 million users for the first time

– Mobile carriers now offering “live” Sports and TV programming via Smartphones

Smartphone penetration is estimated to reach 50% of the market by the middle of 2011

Simultaneous Consumption: What does the future hold…

Appendix

TV competing for eyeballs with iOS social games, networksThe television industry may have adapted well to the disruption that the Internet caused, but now it has

another entertainment force to tackle - the iPhone. Recent data from app-tracking firm Flurry suggests that

iPhone social games and networking apps have a larger audience than some of the top television shows.

by Helen Leggatt

That's right. Social games and social networking apps on Apple's operating system are now competing foreyeballs with popular television shows and sports

broadcasts - and winning. Flurry's study found that 19 million American users spend an average of 22 minutes

each day on iOS social gaming apps. That audience tops the likes of NBC's "Sunday Night Football" and is on a

par with hit shows such as ABC's "Dancing with the Stars". Even America's top rated television show, Fox's

"American Idol", leads iOS users by only four million daily viewers.

Of course, no single iOS social game attracts the audiences that the listed television programs attract - the iOS

figures represent the grand total of all the apps monitored by Flurry. "There are a lot of conclusions that can be

drawn from this phenomenal shift in audience behavior," writes VP of marketing, Peter Farago, on the Flurry

blog. "The most obvious is the impact on the advertisement industry, which has relied on the reach generatedby its prime time television slot for years. This season, while Americon Idol is busy shuffling judges, the people

have voted: iOS social games are as prime time as prime time television. Enjoy the show!“ However, recent

studies suggest that people aren't necessarily choosing television over social networking, but instead doing

both simultaneously.