Television Spectrum in the Next Decade

Free TV is part ofevery Australian

household

Whilst there is now a wealth of media options available to Australian consumers, Free TV continues to dominate other technologies in the home. The majority of households (68 per cent) have two or more TVs.

Source: Internet and broadband figures sourced ABS June 2006. Other info sourced OzTAM’s universal estimates Jan 2006 and Free TV estimates

Household Penetration of Technology

Free TV – in every Australian household

99.7%

24.9%

84.4%77.5%

63.7%

31.8% 32.5%

0%

20%

40%

60%

80%

100%

Free TV Pay TV VCR DVD Internet GamesConsole

Broadband

New technologies are changing the media landscape, yet there is an undeniable trend towards enhancing the television viewing experience in the home.

TV penetration shows no signs of waning

Source: Digital Broadcasting Australia

Quarterly Widescreen TV Sales

Source: Ten Network - Nielsen Panorama data; Sep 2005-Aug 2006. Based on 3,968,000 respondents.

Intention To Purchase Television – Next 12 Months

42%40%

12%

22%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Plasma Television LCD Wide ScreenTelevision

Wide ScreenConventional TV

LCD Television ConventionalTelevision

TV penetration shows no signs of waning

0

400,000

800,000

1,200,000

1,600,000

2,000,000

Mar

-03

Jun-

03

Sep-0

3

Dec-0

3

Mar

-04

Jun-

04

Sep-0

4

Dec-0

4

Mar

-05

Jun-

05

Sep-0

5

Dec-0

5

Mar

-06

Jun-

06

Sep-0

6

SD HD Total Sales

Source: Penetration figure is a Free TV estimate. Sales to Sept 2006 sourced Digital Broadcasting Australia.

Free To View Digital is now in 1 in 4 homes

As at December 2006, the estimated household penetration is 25 per cent.

Free To View Digital Sales

People spent more time with Free TV in 2006 than withany other media

Television43%

Radio30%

Internet16%

Newspapers7%

Magazines4%

The latest Roy Morgan figures show consumers spend more time with television than any other media.

Source: AFR article published 20 Nov 2006 – Roy Morgan Research – share of consumers’ time spent with media 05-06

TV dominates time spent with media

Share of Time Spent with Media

The Australian Bureau of Statistics reports that watching television is Australia’s most popular leisure activity. According to OzTAM data, in 2006 Australians watched, on average, over 3 hours of television a day.

Watching TV is our favourite past-time

Source: OzTAM; 5 Capital Cities; Survey year comparisons. Total individuals including guests. Refer appendix for Regional chart

Average Hours Viewed – YOY Comparison

3:11:30 3:08:56 3:12:08 3:15:02

0:00:00

1:00:00

2:00:00

3:00:00

4:00:00

2003 2004 2005 2006

In 2006, Free TV’s average audiences increased by 0.7 per cent overall and increases were seen across all major demographics.

More people are watching Free TV in 2006

0.4%

2.7%

4.8%

6.5%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

Ppl 18-24

Ppl 25-54

Ppl 40-54

Ppl 55-64

Source: OzTAM; 5 Capital Cities Weeks 7-48 ex Easter 2006 v 2005; 2am–2am; Audience 000s

Average Audience Increases 2006