Source: The NPD Group / EMA

Proprietary & Confidential

1

2007 Power User Study

EMAEntertainment Power-User

Study Highlights

May 2007The NPD Group, Inc.

Entertainment

Source: The NPD Group / EMA

Proprietary & Confidential

2

Key Findings

Among power-users usage of next generation devices indexes high compared to the traditional devices

Availability of Internet based viewing options has changed how power-users view movies and TV shows using a computer. Ad supported sites as well as social networking sites that show video clips are attracting 6 in 10 viewers. Online rentals is the most preferred way of acquiring a movie/TV show at 48%, it is also the most heavily used (average 10 days in a month). All different activities for viewing or acquiring Movie/TV shows have increased over past year.

Almost 50% of power-users listen to music using online streaming radio for average 10 days a month. Purchasing music (music CD or music DVD=35% and digital download=17%) at over 50% is clearly the most preferred way to acquire music while almost 3 in 10 prefer using free file sharing sites.

6 in 10 power-users play video games using a computer or a game system. New types of gaming ways such as multi-player online or using a cell phone to play a video game are also attracting power-users with almost 20% users in each category. Power-users are playing video games 15 days a month on their PC/Mac and 13 days a month on their game system. 70% prefer to purchase their games mainly at a store (54%) or through online sources (16%). Barring playing video games on a system all other ways of playing video games show increased consumption over last year

Power-users prefer to purchase their music and video games and rent their movie/TV show DVDs

Source: The NPD Group / EMA

Proprietary & Confidential

3

Ownership & Usage of Devices

57%

29%

26%

25%

25%

18%

18%

11%

9%

9%

6%

4%

2%

2%

25%

85%

2%

2%

3%

5%

6%

8%

10%

11%

15%

12%

16%

23%

25%

18%

26%

70%DVD Player

DVD burner in computer

Cell phone with music/video

DVR/TiVo

HDTV

Other MP3 player

Portable DVD player

iPod without video

Recordable DVD player

iPod with video

Xbox 360

Nintendo DS

Nintendo Wii

PS3

HD player for Xbox 360

HD-DVD/Blu-Ray OWN USE

Base: 1897 total respondents

Q: Do you own and/or regularly use any of the following?

Source: The NPD Group / EMA

Proprietary & Confidential

4

Change in Movie/TV Show Consumption Behavior in Past One Year

55

39

44

30

40

28

27

20

17

23

17

17

10

4

3

6

28

39

39

53

50

68

70

74

0 10 20 30 40 50 60 70 80

*Borrow DVD to rip or burn

*Download from P2P

**Watch on cell phone

*Watch on PDMP

Rent from Netflix or Blockbuster Total Access

**Download using online service

Watch on a networking site

Watch on ad supported site

Difference Between More and Less

Groups

68

64

67

40

36

22

16

11

Base: 581: Rent a movie/TV show; 234: Watch on a networking site; 242: Watch on ad supported site; * Base 100-200; ** Base <100- use only directionally

Q: Compared to a year ago are you doing this activity more often, less often or the same?

More

Less

Same

Source: The NPD Group / EMA

Proprietary & Confidential

5

Preferred Way to Acquire Movies/TV Shows

Download using a P2P service

5%

Watch on ad supported sites

(abc.com, nbc.cm)

4%

Download to a computer (online

service)6%

Watch in a theater

9%

Purchase a DVD20%

Rent from traditional/online

service48%

Other8%

Base: 903: Acquire movies/TV shows

Q: Among all the different ways shown below, if you could choose only one way to acquire movies/TV shows for yourself, which one would you prefer the most?

Source: The NPD Group / EMA

Proprietary & Confidential

6

Preferred Way to Acquire Music

Download from P2P28%

Purchase music CD/ music DVD

35%

Other6%

Purchase a digital download

17%

Borrow to burn/rip from friend/family

8%

Download to PDMP or cell

phone6%

Base: 1073: Acquire music

Q: Among all the different ways shown below, if you could choose only one way to acquire music for yourself, which one would you prefer the most?

Source: The NPD Group / EMA

Proprietary & Confidential

7

Preferred Way to Acquire Video Games

Other4%

Purchase a digital download

3%

Rent online3%

Rent at a store location

6%

Download using P2P service

9%

Purchase online16%

Purchase at a store54%

Use a subscription

5%

Base: 749: Acquire video games

Q: Among all the different ways shown below, if you could choose only one way to acquire video game for yourself, which one would you prefer the most?