Over a three month period, ReelzChannel viewers showed consistent

Research StudyMeasuring ReelzChannel Impact on

Transactional On-Demand Movie Buy Rates

and Viewer Behavior with Premium Channels

Summer 2009

Over a three month period, ReelzChannel viewers showed consistent

and dramatically higher overall consumption of transactionalon-demand movies. Buy rates among ReelzChannel viewersaveraged 45.9% higher than among non-viewers.

On-demand movies promoted and recommended on ReelzChannelshowed buy rates that were 44% higher among ReelzChannelviewers versus non-viewers.

June’s “Guaranteed Movie Recommendation” performed at a buyrate that was 84.1% higher among ReelzChannel viewers versusnon-viewers.

Premium channels are used by ReelzChannel viewers at a rate 45.4%

higher versus non-viewers.

In this study, ReelzChannel viewership ranked 20th among 42 popular

digital networks.

Executive Summary

Test System: Charter Los AngelesBasic Subscribers: 274,000Time Frame: June, July, August 2009

ReelzChannel Viewers as % of System Subscribers:

JUNE JULY AUGUST 6.9% 6.5% 4.4%

• On a monthly basis, between 4.4% and 6.9% of all basic system subscribers tuned into ReelzChannel; the three month average was 5.9%. The tune-in percentage was more than double when calculated against only the digital basic package where ReelzChannel is carried.

• Definition of a viewer: A viewer had to watch ReelzChannel for at least 6 consecutive minutes at some point during the month. This is the same benchmark used by Nielsen Research in determining household network ratings nationwide.

ReelzChannel Viewership

Source: Rentrak-ReelzChannel Research June/July/August 2009

Percentage of Subscribers OrderingTransactional On Demand Movies:

Non RC Viewers RC Viewers Difference

June 12.3% 18.8% +53.3%

July 12.0% 17.5% +46.1%

August 11.9% 16.5% +38.5%

• ReelzChannel viewers ordered transactional on-demand movies at a buy rate between 38.5% and 53.3% higher than non-ReelzChannel viewers.

• Over the three month period, ReelzChannel viewers ordered transactional on-demand movies at an average buy rate 45.9% higher than non-viewers.

Viewers Buying On Demand Movies


Performance of ReelzChannel Recommended On-Demand Movies:


June 2.9% 3.8% +33%

July 1.2% 1.9% +52%

August .68% .99% +47%

• On-demand titles promoted and recommended by ReelzChannel performed at buy rates between 33% and 52% higher among ReelzChannel viewers.

• Over the three month period, ReelzChannel viewers purchased our promoted and recommended titles at a buy rate averaging 44% higher than non-viewers.

• Examples of promoted titles during this period: Quantum of Solace, Gran Torino, Slumdog Millionaire, Twilight, Madagascar 2, Benjamin Button, Doubt, He’s Just Not That Into You, The Reader, New in Town.

Recommended Titles Performance


Our on-air promotion – the Guaranteed Movie Recommendation (GMR) – seeksto drive more on-demand movie sampling and viewing through the simpleconcept of a money-back guarantee on movies viewers don’t like.

In June, the GMR was “Gran Torino,” starring Clint Eastwood. Below isbuy rate performance data:


1.89% 3.48% +84%

• The GMR movie buy rate was 84% higher among ReelzChannel viewers versus non-viewers.

• The GMR will return on a quarterly basis in 2010.

Guaranteed Movie Recommendation


Usage of premium channels comparison between ReelzChannel viewers andnon-ReelzChannel viewers for the month of July 2009:


Base 254,412 17,564

Premium 153,110 15,372

% Premium 87.52% 60.18% +45.4%

• Usage of premium channels among ReelzChannel viewers was 45.4% higher than among non-ReelzChannel viewers.

• Definition of a viewer: A viewer had to watch one of the above mentioned channels for at least 30 consecutive minutes during the month.

• Premium channels surveyed: HBO, Showtime, Starz, plexes of each.

Premium Channel Usage


ReelzChannel Viewership Ranking Among Popular Digital Networks:

% Subs Viewing1. National Geographic 23.242. MTV2 16.403. G4 16.344. Lifetime Movie Network 14.045. Hallmark 13.146. Womens Entertainment 12.787. History International 11.768. Style Network 10.999. Versus 9.7510. Noggin 9.6011. The N 8.8512. Nicktoons 8.4213. Discovery Health 8.3614. Biography Channel 8.3015. Military Channel 7.7616. Boomerang 7.3917. Fuse 7.1418. Sundance Channel 6.8719. MTV Hits 6.8320. ReelzChannel 6.4621. Investigation Discovery 6.44

ReelzChannel Compared to Other Channels


22. TV Land 6.3523. MTV Jams 6.3224. BBC America 6.1825. TV 1 5.4326. DIY 4.7927. Planet Green 4.7628. VH1 Classic 3.9529. VH1 Soul 3.8830. BET J 3.8031. Fine Living 3.6432. Fuel TV 3.5733. Independent Film 3.4634. Discovery Kids 2.7535. MTV U 2.7236. Discovery en Espanol 2.3237. Wealth TV 2.2038. ImaginAsian TV 1.7739. Bloomberg TV 1.7340. ABC News Now 1.7241. CMT Pure Country 1.3742. Fox Business News 1.08

ReelzChannel viewers are valuable subscribers who generate highlevels of on-demand revenue for distributors.

Distributors carrying ReelzChannel receive significant additionalpromotion for featured on-demand and premium titles against anaudience eager to view those titles.

ReelzChannel provides viewers who are interested in movies withthe information and promotion to drive them to order more movies.

ReelzChannel viewers use premium channels much more often than non-viewers, making them higher revenue subscribers who are less prone to churn.

ReelzChannel viewership ranks highly among popular digital cablechannels.

For more information:contact John deGarmo at 505.212.8750 or [email protected]

For Your Consideration

Over a three month period, ReelzChannel viewers showed consistent

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