Copyright © 2012 The Nielsen Company. Confidential and proprietary.October 17-19, 2012Global Client Council Series

Copyright © 2012 The Nielsen Company. Confidential and proprietary.Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Who Is Viewing What Where And For How

Long?

OMMA VideoOctober 23,

2012

Dounia Turrill

Nielsen

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Source: Nielsen, The State of The Media: The Cross-Platform Report Qtr. 2, 2012

Viewing on a Traditional TV Other Viewing (On the Internet, On a mobile phone)

Video continues its rule of US consumer’s attention

The average American watches nearly 5 hours of video each day

97.2% of which is on traditional TV

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

A Plethora of Choices

Traditional TV Households penetration continues to decline…

K2-11

TV continues to be the centerpiece

Game Console

Smart TV

DVD/BluRay Player

Over-the-Top

However, evenamong homes that are not considered traditional TV HH’s

75% own a television

TV Household: A home with at least one TV capable of tuning to at least one channel. For example, television sets that are not updated for digitally transmitted content would

not count under the current guidelines.

Source: Nielsen, The State of The Media: The Cross-Platform Report Qtr 1, 2012

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Consumers shifting away from Live TV

Average Daily Time Spent – Total Population (hh:mm)

Source: Nielsen People Meter, NetView, VideoCensus, Mobile Video Report, Mobile Connected Device Report, Gaming 360 Survey

Q2 2011 Q2 2012

Live

TV

4:20

0:03 0:010:20

DV

R

Onl

ine

Vid

eo

Sm

art

ph

on

e

Vid

eo

0:020:12

DV

D

TO

TAL

Vid

eo

th

rou

gh

G

am

e C

on

sole

s

Live

TV

4:10

0:06 0:010:21

DV

R

Onl

ine

Vid

eo

Sm

art

ph

on

e

Vid

eo

0:030:10

DV

D

Vid

eo

th

rou

gh

G

am

e C

on

sole

s

-4%+8%

-17%+63%

+55%+27%

Among users, time shifting accounts for 1:48 DAILY

“On Demand” increased 14% - Now ~16% of total video

Total video usage roughly flat year-over-year

Tab

let

Vid

eo

0:01

Tab

let

Vid

eo

0:03

+69%Modeled from survey data

Modeled from survey data

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

DVD PC w/Internet Video Game DVR Smartphone Tablet Smart TV

88%

69%

38%

24%

13%

87%

75%

43%

36%

28%

84%79%

45% 44%

56%

16%

4%

Q3 2008 Q3 2010 Q3 2012

Device adoption fuels on-demand usage

Devices Owned in TV Households

Source: Nielsen Npower for all devices except for Smartphone. Source for Smartphone: Nielsen Mobile Insights

+20% +81%+341%

+63%from Q1 +63%

from Q1

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

DVR Time-Spent by Other Devices Owned in the Home (among DVR Homes)

May 2012

Tablet Home

Non-Tablet Home

Video GameHome

Non-Video Game Home

PC w/ InternetHome

Non-PC w/

Internet Home

DVR Penetration: 64% 41% 55% 36% 51% 24%

Source: Nielsen NPower

Will consumers migrate away from the DVR to other forms of time-shifting?

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Game Consoles could be a big on-demand enabler

Note: Some homes have multiple types/brands of consoles.

Source: Nielsen NPower Q1 2012, Gaming 360 Survey 2011

PS3 users

3.5 HOURS

26%of Console time

is video

Wii users

3 HOURS

Xbox 360 users

3 HOURS

Average # of hours streamed monthly

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Game on: Quick Facts

Source: Nielsen, The State of The Media: The Cross-Platform Report Qtr 1, 2012

7th gen console penetration /consumption figures in this report represent consoles measured within the Nielsen National People Meter (NPM) sample homes

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Dramatically different behaviors across different age groups

A Week in the Life- Weekly Time Spent in Hours: Minutes

Source: Nielsen Cross Platform Report 2Q 2012

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Ranked by In-Home Streaming Behavior

Average Daily Minutes

Online Video usage Quintiles

# of Persons(000) Stream Internet+ TV

Quintile 1 29,041 19.4 59.6 230.1

Quintile 2 29,038 2.7 36.5 260.5

Quintile 3 29,042 0.9 24.6 250.3

Quintile 4 29,045 0.3 17.1 267.7

Quintile 5 29,035 0.0 9.6 265.1

Non-Streamers 92,508 0.0 1.3 238.4

Online video usage highly concentrated

Source: Nielsen Npower Q2 2012, Video Census Q2 2012, Mobile Video Report Q2 2012

83% Online Video Usageby 20% of Users

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Distribution of Time Spent – Online Video ChannelsVideo Census, June 2012

YouTube substantial portion of Online Video usage

~50%Online Video minutes are

spent on

YouTube

5%

10%

10%

16%

55%

10%

5%

4%

10%

16%

YouTube

Netflix

Hulu

Top 50 TV Broadcasters

Other Top 50 Online Publishers

Non-Top 50 Pub-lishers

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

4:50 4:49 4:474:54

5:01

5:20

Mobile Video Monthly Time Spent

Mobile Video time spent strong, audience growing

Q2 2009 Q2 2010 Q2 2011 Q2 2012

15,267

37,048

Mobile Video Audience (000’s)

+143%

Source: Nielsen Mobile Insights and Nielsen Mobile Video Report

+10%

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Co-Viewing prominent on Tablet and Smartphones

Frequency of Simultaneous Usage While Watching TV: Tablets

Tablet Owners (Q2 2012 n=3,440)

Frequency of Simultaneous Usage While Watching TV: Smartphones

Smartphone Owners (Q2 2012 n=4,950)

Source: Nielsen Q2 2012 Mobile Connected Device Report

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

1%11%

78%

11%Watching more frequently than before

Same as before

Watching less frequently than before

Do not watch it anymore

Impact of New Tablet Purchase on TelevisionPurchased a Tablet in Past 6 months Q2 2012

Source: Nielsen Connected Device Survey, Q2 2012

Looked up coupons or deals _x000d_related to a TV ad

Looked up product information _x000d_for a TV ad

Watched videos unrelated _x000d_to TV show

Checked sport scores

Looked up information related _x000d_to the TV program

Social Networking

Shopping

Used an app

Web Browsing

Checked email

24%

26%

27%

30%

35%

44%

45%

49%

52%

61%

Tablet Activities while Watching TVPurchased a Tablet in Past 6 months Q2 2012

Tablets appear to be complimentary to TV

Copyright © 2012 The Nielsen Company. Confidential and proprietary.October 17-19, 2012Global Client Council Series

Copyright © 2012 The Nielsen Company. Confidential and proprietary.Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Who Is Viewing What Where And For How

Long?

OMMA ConferenceOctober 23,

2012

Dounia Turrill

Nielsen