June 15, 2010

Washington, DC

African-American Media Consumption Trends

Presentation to theFederal Communications Commission’sAdvisory Committee on Diversity

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TV and the Internet are the primary sources of media for African-Americans

`

Source: BET African Americans Revealed 2009 n=2400 AAs 14-55

AFRICAN AMERICANS - % OF WEEKLY MEDIA HOURS

Access Internet(Computer)

ReadMagazine

Watch TV

Listen toRadio

Access Internet(Mobile Phone)

ReadNewspaper

17%

8%

8%26%

8%

32%

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African Americans watch more TV than other ethnicities across all demographic groups…

HHs P2+ P18-49 P25-54 P 55+ P2-11 P12-17

Source: Nielsen African American Television Viewing Report Oct-Nov 09

AVERAGE DAILY TV VIEWING (HOURS)

AAs All Others

11:13

8:01

6:34

4:01

6:31

3:52

7:06

4:08

8:56

5:41

4:39

3:36

4:33

2:57

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…and their TV usage exceeds all others every hour of the week

10%

20%

30%

40%

50%

60%

70%

6:30a 9:30a 12:30p 3:30p 6:30p 9:30p 12:30a 3:30a

TELEVISION USAGE AMONG HOUSEHOLDS(Monday – Friday)

10%

20%

30%

40%

50%

60%

70%

6:30a 9:30a 12:30p 3:30p 6:30p 9:30p 12:30a 3:30a

TELEVISION USAGE AMONG HOUSEHOLDS(Saturday – Sunday)

Source: Nielsen African American Television Viewing Report Oct-Nov 09

AAs All Others

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African-American broadcast viewing habits are similar to others, however cable viewing habits are drastically different

Top 10 Shows 1Q10 – WHITES

American Idol Fox

NCIS CBS

Dancing With The Stars ABC

The Mentalist CBS

CSI CBS

NCIS: Los Angeles CBS

Desperate Housewives ABC

Two and a Half Men CBS

Greys Anatomy ABC

Criminal Minds CBS

Top 10 Shows 1Q10 – BLACKS

American Idol Fox

Dancing With The Stars ABC

NCIS: Los Angeles CBS

CSI: Miami CBS

The Cleveland Show Fox

Family Guy Fox

Lie To Me Fox

CSI: NY CBS

NCIS CBS

60 Minutes CBS

Top 10 Shows 1Q10 – WHITES

The Closer TNT

Monk USA

Psych USA

Deadliest Catch Discovery

Top Chef Bravo

Eureka SyFy

Ghost Hunters SyFy

Law & Order SVU USA

Spongebob Nick

South Park Comedy Central

Top 10 Shows 1Q10 – BLACKS

Meet The Browns TBS

House of Payne TBS

Tiny & Toya BET

Real Housewives of Atlanta Bravo

For The Love of Ray J VH1

Sunday Best 2 BET

College Hill: South Beach BET

Hawthorne TNT

Frankie & Neffe BET

I Love Money 2 VH1

BR

OA

DC

AS

TC

AB

LE

4 common shows among top 10

No common shows among top 10

Source: CY09 Nielsen Marketbreaks (Live +7 Data) 12.29.08 - 12.27.09 (Programs <5 telecasts, Movies, and Sports Excluded)

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African American broadband adoption lags the general population, and is particularly low among vulnerable subgroups

US Broadband Adoption Rates

General Population African American

67%59%

Source: Joint Center for Political and Economic Studies Report on National Minority Broadband Adoption, Feb. 2010

African American broadband adoption

lags that of the general population

African American Subpopulation Adoption Rates

Low Income Elderly HS Dropouts

45%

36%

27%

Non-adoption is most severe in groups that would most benefit

from broadband

&Source: OBI Working Paper Series No. 1, FCC, Feb. 2010

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Relevance has proven to be a key barrier to adoption

FCCFCC

TOP REASONS FOR NON-ADOPTION OF BROADBAND

Pew FoundationPew FoundationJoint CenterJoint Center

36%

22%19%

TooExpensive

Lack ofDigital

Literacy

Lack ofRelevance

44%

13% 11%

Lack ofRelevance

Availability TooExpensive

50%

19% 17%

Lack ofRelevance

TooExpensive

Availability

Top Reasons for Non-Adoption of Broadband Among Americans

Top Reasons for Non-Adoption of the Internet Among African

Americans

Top Reasons for Non-Adoption of Broadband Among African Americans

Source: OBI Working Paper Series No. 1, FCC, Feb. 2010

Source: Joint Center Report on National Minority Broadband Adoption, Feb. 2010

Source: Pew Internet Home Broadband Adoption Study, June 2009

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However, African Americans who participate in Web 2.0 activities are more active than the general population

Source: Forrester Research Technographics Q2 2010 Online Benchmark Study (n=26,749) Web 2.0/Power Users are those proficient among the top three rungs of their Social Technographics Ladder: Critics, Conversationalists, & Critics)

AAs Whites

MONTHLY ACTIVITIES OF POWER/WEB 2.0 INDIVIDUALS

77%

74%

69%

57%

47%

41%

38%

73%

64%

51%

36%

42%

36%

33%

Update status on social networking sites

Watch video from other users

Use personal portal/content sites (e.g. My Yahoo)

Listen to or download audio/music from other users

Listen to any audio or radio on the internet

Download music (e.g. iTunes)

Watch TV episodes (full) on the internet

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African Americans consume news differently

2.10

2.50

Weekly TV News Consumption (Hours)

82% 79%77%66%

Local News Cable News

65%

47%47%

33%

Online NewsPropensity

Current Event &Political Blogs

24%

37%

Daily Newspaper Consumption

AAs watch less TV news overall… …but are more likely to watch local news & cable news

AAs are also more likely to get news from the internet… …and less likely to read the newspaper

Source: Nielsen MarketBreaks and NPower – April 2010; Pew Research Center Biennial News Consumption Survey AAs Others

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BETN's multi-platform programming strategy reflects and drives African American media consumption trends

Original AA sitcoms AA late night talk show AA reality series AA awards shows &

specials Licensed AA movies &

sitcoms

Platform: Television On-line

Integrated social networking features

Online video Webisodes Digital downloads UGC

Mobile website Mobile video Mobile voting Twitter integrations Mobile fan clubs

Key Media Trend:

BET Executions:

High consumption of ethnically-

oriented shows

Mobile

High engagement with Web 2.0

activities

Massive smart phone adoption and utilization

AFRICAN AMERICAN MEDIA CONSUMPTION TRENDS

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Our news strategy reflects the audience’s consumption patterns and leverages each platform’s strengths

TV

Video, articles and blogs

Additional information and resources

On demand content

Interactive features – polls, comments, tools

Social networking features

Links to other related sources of information

In-DepthFeatures

Briefs

WeeklyRoundups

Online Mobile

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Current ExamplesCurrent Examples

Web-only series, like “Buppies” and “Shop Talk”, compliment our online video offerings of network series and music videos

BUPPIES

• Starring Tatyana Ali

• Sponsored by P&G’s Queen Collection

Web Series Strategic RationaleWeb Series Strategic Rationale

Strong consumer demand for on-line video

Leverages our ability to promote on-air

Supports creative community’s ability to produce short-form content

Allows us to tell more stories and establish new programming franchises

Growing audience desire for control of the experience and on-demand access

Able to differentiate from typical UGC

– High quality production

– Star talent

Ad-support and sponsorship model established

SHOP TALK

• Starring Malik Yoba

• Sponsored by Gillette

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We’ve been among the most aggressive in integrating Twitter into our live programming franchises

&&

What we do… Hosts prompt audience to tweet about various

topics- Pose celebrity guests questions - Share POV and start dialogs- Control segments on show (e.g. music played, etc.)

Proactively drive trending topics every weekday Display interesting audience tweets on-air

What we did… Established #BETAwards and encouraged its

usage from the red carpet, on-stage, and on BET.com

A real-time moderated stream of awards-related comments appeared on the “Wall of Tweets” on BET.com

The best audience tweets were shown on-screen in a “Twitterific Encore”

Results…

Audience gets to impact the show they see on-air Driving current ratings increases in the show

Results… Gave audience an outlet for expression and

created a greater sense of community around the show

Unprecedented 9 out of 10 trending topics were related to BET Awards which helped drive new viewership

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For the BET Awards 2010, we are continuing to innovate with a partnership with AOL called “Fandemonium”

Artists with extremely social-networked fan bases

– Following / Friending

– UGC (e.g. mashups, covers, etc.)

– Downloads (e.g. mixtapes, ringtones, etc.)

Series of interactive artist-related challenges

…by measuring and reporting on key metrics in a competitive environment…

Leverage fans’ existing digital relationships with artists…

…and giving the artist with the most digitally engaged fans a BET Award

AOL Fandemonium Award

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Recognizing the broadband adoption challenges for the most vulnerable members of the African American community, we submitted a BTOP-SBA proposal to fund a public-private partnership to drive adoption

Multiplatform Campaign Two-year broadband awareness and adoption

campaign targeting non-adopters

Leveraging all BETN media platforms – TV, online, mobile, VOD, and in-market

Ongoing measurement component around effectiveness and results

African American “Life Portal”

Best-in-class applications, information and communities tailored to AA-specific needs

Focus on areas of critical need: health/wellness; education; and jobs/training.

Local Digital Literacy Efforts

Community outreach with Digital Connector programs in various targeted communities

Trained youth promote the adoption and use of technology within their communities

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FRAMEWORK:

Understanding the Various Populations of the AA Community

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African American Segmentation Study Background

Segmentation is a research technique that reduces numerous data points into a research design grouped on similar characteristics. In other words, it uses the concept of “Birds of a feather, flock together” to find groups of similar behavior and ideals.

An in-depth segmentation analysis was conducted among 2,407 African Americans between the ages of 14 – 55. BET Networks and Questus designed a lifestyle and interest questionnaire for panel email recruitment in 1Q 2009 to provide comprehensive details on African Americans-- Revealed.

Respondent data was weighted to demographic distributions of age, gender, income and marital status of African Americans 14-55 mirrored to reflect individual US Census statistics. Among our respondent sample, seven segments emerged based on statistical factor and clustering analysis of the following dimensions:

– • Life goals

– • Family and friends

– • Work and education

– • Entertainment

– • Health and fitness

– • Religion and spirituality

– • Community and political involvement

All data analyzed is statistically significant at the 95% confidence level.

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Strivers Conscious Sisters

Tech-Fluentials Bright Horizons

Description Adventurous, fashionable opinion leaders who have their eye on climbing the

ladder

AA parents who are conscious of culture,

religion and life lessons

Tech-proficient Global ‘culturalists’ keen on

learning, exploring and being world activists

Tech savvy students who are education & civic-

oriented; they are fashionable, trend setters and up & coming leaders

Life Stage Gen X'ers late 20s-early 40s Gen X'ers 30s-40s Gen Y/Gen X 20s-mid30s

Gen Y/Gen X teens-20s

% Segment Sizing US Pop

36% of 14-55 Pop. 22% of AA 14-55 Pop.

14% of 14-55 Pop. 10% of AA 14-55 Pop.

Source: Questus Segmentation: African Americans-- Revealed conducted 1Q09 among 2, 407 respondents age 14-55;

African Americans Revealed Segments (1/2)

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Urban Dreamers Inner Circle Elites Survivors

Description Urban young adults who are social magnets and

trendsetters – The life of the party

AA working adults who are rich in heritage and ancestry and

focused on their legacy

Teen/young adult males who are sociable and focused on

achievement via other paths than education

Life Stage Gen X'ers 20s Baby Boomers late 40s + Millennials/Gen Y late teens-20s

% Segment Sizing US Pop

7% of AA 14-55 Pop. 9% of 14-55 Pop. 2% of AA 14-55 Pop

African Americans Revealed Segments (2/2)

Source: Questus Segmentation: African Americans-- Revealed conducted 1Q09 among 2, 407 respondents age 14-55;