multi-screen insights digital video grows; representing a nominal share of total video time

Multi-Screen Insights

Digital Video Grows; Representing a Nominal

Share Of Total Video Time

Multi-Screen Insights

Growth in technology drives choice…households acquired significantly more tablets (+59% v yag) and enabled smart TVs (+78% v yag)

Digital video has grown but still only comprises a nominal share among A18-49 (0:31 with digital video v. 4:40 daily with TV screen)

Same is true among all ethnic segments

Consumers spent 48% of their total media time with the TV (P18+); majority of their TV viewing is with Live TV

With digital video growth, Television still commands over 90% of total video time among key advertiser targets

Viewers continue to shift their viewing from computer video (-3,537,000) to smartphone video (+25,098,000)

Across all ethnic segments

24 million more consumers used app/web applications in 3Q14 and spent 34% more time (P2+)

Growth In Technology Drives Choice

Enabled Smart TV

Tablet Subscription VOD

Smartphone PC With Internet

Broadband Internet

DVR Game Console

DVD Player

78%

59%

19% 15% 1% 1% 1% 1%-2%

1%

13%

46%

40%

75%

81%

78%

49%

46%

81%

Penetration Levels

YOY Growth

Source: Nielsen Total Audience Report 3Q14 v year ago

Digital Video Has Grown But Still Only Represents A Nominal Share Compared to Time Spent With the TV Screen

Daily Time Spent With Digital Video v. TV Screen (Hrs:Min)

Source: Nielsen Total Audience Report 3Q14

3Q13 3Q140:20 0:31

4:40 4:33

A18-49

Digital Video TV Screen

3Q13 3Q140:17 0:28

5:01 4:54

A25-54


…and Time Spent With TV Screen Dominates Across All Multicultural Segments

Daily Time Spent With Digital Video v. TV ScreenAmong A18+ (Hrs:Min)

0:33

7:39

Black

Digital Video TV Screen0:29

4:32

Hispanic


0:35

3:24

Asian


Source: Nielsen Total Audience Report 3Q14

TV Is An Integral Part Of Consumers Daily Life…

Consumers Spend 48% of Their Total Media Time With Television Throughout The Day

Avg Time Spent Per Day (Hrs: Min) Among P18+

4:32

0:302:44

1:06

0:120:09 0:04

1:33Live TV

Watching Time-shifted TV

AM/FM Radio

Internet Usage/Computer

Game Console

DVD/Blue-Ray

Multimedia Device

Using Smartphone

Source: Nielsen Cross Platform Report 3Q14,P18+

…and Majority Of Their TV Viewing Is Spent With Live TV

Time Spent Per Day (Hrs:Min) Among P18+

3Q12

3Q13

3Q14

4:50

4:44

4:32

0:24

0:28

0:30

1:04

1:00

1:06

:0.53

1:10

1:33

2:51

2:47

2:44 Live TV

Time-shifted TV

DVD/Blu-Ray Use

Game Console Use

Internet on Comp

Smartphone Use

AM/FM Radio Lis-tening

Source: Nielsen Cross Platform Report 3Q14,P18+; usage

on each device

How Much Video Content is Consumed Across Each Device?

Watching Video On Smartphone Continues To Gain Traction But Television Still Dominates 92% Of Total Video Time

Watching Video on a Computer

Watching

TelevisionWatching Video

on a Smartphone

Monthly Time Spent (hrs:min) by Device

141:19 10:42 1:46

Source: Nielsen Total Audience Report 3Q14 v yag;Total

video= TV+comp+smartphone

P2+

P18-49

P25-54

119:33

133:56

13:48

12:40

2:07

1:42

P2+:# of Viewersv. YAG

282 Million-0.4%

144 Million-2.4%

125 Million+25.0%

…and Captures Majority Of Total Video Time Among Both Young and Old

TV Share Internet Mobileof Total Video TV Video Video

P2-11 94% 106:27 6:22 -

P1217 94% 89:13 6:17 -

P18-24 83% 91:32 16:05 3:06

P25-34 87% 112:33 14:59 2:02

P35-49 91% 136:32 12:14 1:36

P50-64 95% 177:14 9:00 1:03

P65+ 98% 211:31 4:34 0:24

Monthly Time Spent (Hrs:Min)

Source: Nielsen Cross Platform Report 3Q14; Total

video=TV; internet video and mobile video

Even Among Teens & Young Adults, Television Remains The Dominant Platform For Viewing Content

TV Share Internet Mobileof Total Video TV Video Video

T12-17 94% 89:13 6:17 n/a

M12-17 92% 86:31 7:11 n/a

F12-17 95% 92:01 5:20 n/a

A18-24 83% 91:32 16:05 3:06

M18-24 79% 84:50 19:33 3:29

F18-24 87% 98:19 12:02 2:23

Monthly Time Spent (Hrs:Min)

Source: Nielsen Cross Platform Report 3Q14; Total


What Is Driving Smartphone Video Growth?

With More Content Readily Available On Smartphones, Consumers Across All Ethnic Segments Shift Some Of Their Video Viewing From Computer To Smartphone Video

Watching Video on a Computer

Watching Video on a Smartphone

(+/-) Change In Number of Users by Device (P2+)/ Monthly

(in OOO’s)

Total Black HispanicAsian

-3,537 -184 -861 -193

25,098 2,854 4,226 1,239

Source: Nielsen Total Audience Report, 3Q14 v yag,P2+;

App/Web Usage On Smartphones Increases Considerably

Absolute Growth in Number of Users P2+ (OOO)/ Monthly

Composite Black Hispanic Asian

+23,662

+2,907 +4,101+1,224

162,798 20,811 29,581 9,494

Source: Nielsen Total Audience report 3Q14 v yag,

# of Users

…and Time Spent With App/Web On Smartphones Is High, Especially Across Ethnic Groups

% Change v. YAG in Time Spent

Black Hispanic

Asian

Source: Nielsen Total Audience Report, 3Q14 v yag.

+20% +30% +42%

Using Any App/Web On Smartphone

(P2+)/ Monthly

Time Spent Monthly/ P2+ 52:43 52:14 47:15

Composite

47:35

+34%

Increase in Viewing Options Continues To Drive Online Streaming & Mobile Video Apps Growth

Average Number: P18+

Avg Mobile Video Apps Used Avg PC Streaming Sites by brand visited

1.34.5

1.54.7

1.7

5.8

12-Aug 13-Aug 14-Aug

Source: Nielsen Total Audience report 3Q14, P18+ avg

monthly use

With All Its Growth, Digital Video Still Only Represents A Nominal Share Of Time Spent With Total Video

Share of Total Monthly Video Time Spent by Device

CH2-11 T12-17 A18-24 A25-34 A35-49 A50-64 A65+

TV 0.945 0.936 0.827 0.871 0.91 0.946 0.979

Video on Comp

0.055 0.064 0.145 0.113 0.081 0.048 0.02

Video on Smartphone

NaN NaN 0.028 0.016 0.009 0.006 0.001

TV Video on Comp Video on Smartphone

Source: Nielsen Total Audience report 3Q14, Total


How Does Video Usage Differ by Ethnicity?

More Black and Hispanic Consumers Tune To Television and Video On Smartphone While Computer Video Declines

Watching Traditional Television* v. YAG

Watching Video on Computer v. YAG

Video on Smartphone v. YAG

Black Hispanic

Gain/Loss Of Users P2+ 3Q14 v 3Q13

+824,000 +592,000

Asian

-550,000

-184,000 -861,000 -193,000

+2,854,000

+4,226,000

+1,239,000

Source: Nielsen Total Audience report 3Q14v yag

Over 90% Of Total Video Time Is Spent With The Television Across Most Ethnic Segments

Black TV Share Hispanic TV Asian TV Share Share Share

P2-11 96% 94% 91%

P1217 96% 93% 87%

P18-24 86% 81% 63%

P25-34 88% 86% 79%

P35-49 93% 91% 79%

P50-64 96% 93% 92%

P65+ 99% 98% 97%

TV Share of Total Video Time Spent Monthly

Source: Nielsen Total Audience report 3Q14, Total


multi-screen insights digital video grows; representing a nominal share of total video time

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