Brazil OverviewBrazil Overview

June 2013

Our countryOur country

Population: 194,216,900

Mobile: 265 million (70M Internet access)

Internet Access: 94 million

Source: Ibope EDTV 2013 / Mídia Dados 2012 / Anatel

49% 51%

USD 2,320 USD 940USD 6,400

(Avg Familiar Income)

USD 500

Households: 59,851,544

Economic DynamicsEconomic Dynamics

PIBPIB(GDP)(GDP)

Industrial Industrial ProductionProduction

ForecastForecast

IGP-MIGP-M

* Source: Banco Central – Focus Report Jun2013

2014 World Cup held in Brazil

and Brazilian Presidential Election

2015 America's Cup held in Brazil

Major EventsMajor Events

2016 Olympic Games held in Brazil

2013Confederation Cup held in Brazil

PresidentElection

Ad MarketAd Market

Ad MarketAd Market

-5%-5% +3%+3% +18%+18%+26%+26%

+15%+15%+9%+9% +9%+9%

+13%+13% +4%+4%+18%+18%

+9%+9%

-12%-12% +28%+28% +3%+3% +61%+61% +23%+23%+42%+42% +21%+21% +26%+26%

+3%+3%+23%+23%

+18%+18%

+36%+36% +19%+19% +36%+36% +46%+46%+44%+44%

+25%+25%+28%+28% +20%+20%

+6%+6%

+12%+12%

+4%+4%

+7%+7%

+10%+10%

-%-%

Source: Projeto InterMeios – Net figures

Forecast

+11%+11%

+15%+15%

+5%+5%

Source: Projeto InterMeios

• Clients are investing on unrisky players (Open TV)– Eficiency of reach/CPM for C Social Class

• These data do not have Google and Facebook revenues. Including these players Internet goes to 11%.

Ad MarketAd Market

Pay TV MarketPay TV Market

Total TV Households*

57.9 MM57.9 MM

(96.8% of total HH)

Total TV Households*

57.9 MM57.9 MM

(96.8% of total HH)

Total Pay TV HouseholdsTotal Pay TV Households

16.9 MM16.9 MM > > 28% of penetration28% of penetration

Reach projection:Reach projection:

53.4 MM people53.4 MM people

Total Pay TV HouseholdsTotal Pay TV Households

16.9 MM16.9 MM > > 28% of penetration28% of penetration

Reach projection:Reach projection:

53.4 MM people53.4 MM people

Source: * Ibope EDTV 2013 / Anatel Apr 2013

Pay TV Share 2011 2012 2013*

•In Total TV: 9.5% 11.8% 15.3%

•In Total Pay TV: 32.5% 33.1% 33.3%

Pay TV Share 2011 2012 2013*

•In Total TV: 9.5% 11.8% 15.3%

•In Total Pay TV: 32.5% 33.1% 33.3%

Source: Ibope MW / * 2013 Jan-Jun

Strong TV ViewershipStrong TV Viewership

+7%+7% +8%+8% +10%+10% +17%+17% +18%+18% +18%+18% +31%+31% +31%+31%

Projections

+1%+1%

Household subscribers: (000)

75 MMpeople

100 MMpeople

Source: Anatel / PTS

+33%+33%

O setor de TV paga no Brasil teria cerca de 40 milhões em 2018 com uma penetração em torno de 65% dos domicílios com TV. Este quadro prevê um crescimento moderado da economia brasileira e, mais importante, a manutenção do

desemprego em níveis muito baixos com elevação da renda média do trabalhador.

O setor de TV paga no Brasil teria cerca de 40 milhões em 2018 com uma penetração em torno de 65% dos domicílios com TV. Este quadro prevê um crescimento moderado da economia brasileira e, mais importante, a manutenção do

desemprego em níveis muito baixos com elevação da renda média do trabalhador.

Pay TV - SubscribersPay TV - Subscribers

Source: Anatel (Mar2013)

Market Share by Groups(subscribers)

Subscribers by Technology

Pay TV - SubscribersPay TV - Subscribers

Source: SOA Share of Audience - Ibope MW – 8 markets Pay TV – 2008-2012 – All Day - Target: P AB 18-49 / Grouping of channels based on 2012Source: SOI Share of Investment - Ibope Monitor – 2008-2012 - Pay TV Market Investments with Estimated Discounts. SPT: Carmen/Landmark figures.

SOASOA

SOISOI

SOI/SOA Index

Globosat Turner Discovery Fox Disney HBO ESPN Viacom SPT

2008 120 131 24 107 14 65 88 50 1842009 107 134 19 128 46 77 132 40 1852010 147 108 15 89 31 43 128 90 1432011 142 106 35 98 34 36 114 58 1312012 132 118 36 87 40 32 121 61 160

Pay TV Groups - SOI X SOAPay TV Groups - SOI X SOA

Fonte: IBOPE MW – 9 maercados Pay TV

Pay TV RankingPay TV Ranking

* Excluding Sports and Kids channels