SHIFTS IN VIEWING THE CROSS-PL ATFORM REPORT SEPTEMBER 2014

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THE CROSS-PLATFORM SERIES | Q2 2014

SHIFTS IN

VIEWING

THE CROSS-PLATFORM REPORT

SEPTEMBER 2014

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With much talk of an evolving media landscape, the acceleration

in device adoption and delivery platforms and shifts in viewing patterns,

we sometimes forget to let the numbers speak for themselves.

Today we are challenged with an important transition in how media

is consumed. We know that traditional television viewing on a TV screen

is down, especially for younger viewers, but we also know that overall

media consumption is up and growing, driven by an impressive growth in

digital video viewing. With this in mind, we should be looking at the

consumer’s relationship to media in a different way. Letting the numbers

speak for themselves we see that viewers of all ages, ethnicities and races

are opting to shift some of their viewing.

THIS CONTINUING SHIFT SHOULD

BE EMBRACED AS AN OPPORTUNITY.

IT’S NOT ABOUT WINNERS AND LOSERS,

IT’S ABOUT THE OPPORTUNITY TO

ITERATE AND REDEFINE THE RULES

OF THE GAME.

Driven by younger viewers initially but embraced by older viewers

increasingly, consumers are device and platform agnostic looking for quality,

professionally produced long form programs to connect with at home

or on the go.

Today, content is delivered and consumed through competing delivery

platforms, networks and screens. Never before have we seen this

level of fragmentation and yet, the sum total of media consumed is

growing. In fact, year over year among the younger 18-34

demo media consumption has grown four percent overall, two

percent among Hispanics, eight percent among Blacks, and ten percent

among Asians.

WELCOME

DOUNIA TURRILL SVP INSIGHTS, NIELSEN

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3

D O U N I A

This change is primarily driven by the growth in digital both on computers

and mobile devices, led by an outstanding growth in digital video viewing

on these devices. We are seeing year over year overall growth in digital use

of sixteen percent among persons 18-34 with fifty-three percent growth

in digital video viewing. Yet, it’s not just a young versus “older” story. This

impressive growth in digital is even more marked among 35-49 year olds

and among 50-64 year olds.

Technology has enabled increased choice and consumers have become

accustomed to controlling the wide array of content at their fingertips.

At the core of it all is the consumer experience in interacting and accessing

that content. Some people will want their content live on their TV screen

delivered via a traditional or broadband enabled connection, some will

want to watch it at a different time, while others will increasingly look for

it on the go and on demand on their mobile devices. With smartphones

topping seventy percent penetration and tablets inching toward the fifty

percent mark, the growth in digital consumption can only increase.

This represents a unique opportunity for video producers, TV networks,

studios and pure-play digital video players alike, who can leverage

the different platforms to deliver their content. We will continue to see

differences in the type and quantity of media consumed by different

age groups as well as by race and ethnicity on different platforms. Yet,

the overarching data suggests that the growth of media consumption

is and will continue to be in digital for all consumers. We can surmise

that having tasted the freedom of choice the American consumer will not

go back to old ways.

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A LOOK ACROSS MULTICULTURAL SEGMENTS: DAILY TIME SPENT

HOW THE

VIEWING

LANDSCAPE IS

CHANGING

MEDIA TIME IS INCREASING FUELED BY DIGITAL GROWTH

2

4

6

8

-2%

-1%

-2%

+53%

+60%

+80%

18-34 35-49 50-64 Q2 2014 Q2 2013

DIGITAL VIDEO

Q2 2014 Q2 2013

TV SCREEN

HOURS

PER

DAY

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5

THE CROSS-PLATFORM REPORT | Q2 2014

BLACK

5

TV SCREEN

6 HRS 12 MINUTES 6 HRS 07 MINUTES 6 HRS 21 MINUTES

TV SCREEN

9 HRS 25 MINUTES 9 HRS 22 MINUTES 9 HRS 01 MINUTE

DIGITAL VIDEO

48 MINUTES 27 MINUTES 23 MINUTES

DIGITAL VIDEO

25 MINUTES 20 MINUTES 14 MINUTES Q2 2014 Q2 2012 Q2 2013 Q2 2012 Q2 2013 Q2 2014

18-34

35-49

50-64

TOTAL U.S.

TV SCREEN

4 HRS 57 MINUTES 5 HRS 01 MINUTE 5 HRS 05 MINUTES

TV SCREEN

DIGITAL VIDEO

18-34

35-49

50-64

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TV SCREEN

DIGITAL VIDEO

HISPANIC

ASIAN

TV SCREEN

2 HRS 51 MINUTES 2 HRS 52 MINUTES 3 HRS 01 MINUTE

TV SCREEN

DIGITAL VIDEO

18-34

35-49

Q2 2014 Q2 2012 Q2 2013 Q2 2012 Q2 2013 Q2 2014

18-34

35-49

50-64

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7

AN EVOLVING MEDIA LANDSCAPE

WHAT’S DRIVING

GROWTH

AND CHANGE

MULTIMEDIA DEVICE

12%

TABLET

39%

HD TV

87%

DVD PLAYER

82%

DVR

49%

GAME CONSOLE

46%

SATELLITE

30%

ENABLED SMART TV

11%

BROADCAST ONLY

10%

BROADBAND ONLY

2%

SMARTPHONE

72%

ONE SET

15%

TWO SETS

27%

THREE SETS

25%

FOUR OR MORE

34%

TV

96%

TELCO

11%

DIGITAL CABLE

54%

PC WITH INTERNET

81%

Digital Video TV Screen

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A CLOSER

LOOK AT

THE DATA

EXHIBIT 1 - AVERAGE TIME SPENT PER ADULT 18+ PER DAY

WATCHING TIME-SHIFTED TV

USING DVD/BLU-RAY DEVICE

USING A GAME CONSOLE

USING INTERNET ON A COMPUTER

USING A SMARTPHONE

LISTENING TO AM/FM RADIO

USING A MULTIMEDIA DEVICE

0:31

4:36

1:07

1:25

2:45

0:03

0:11

0:09

0:27

4:48

1:01

1:04

2:48

0:09

4:45

1:03

0:48

2:52

0:09

0:25

LIVE TV

Q2 2014

Q2 2012

Q2 2013

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9

TABLE 1 – A WEEK IN THE LIFE; BASED OFF THE TOTAL US POPULATION

WEEKLY TIME SPENT IN HOURS : MINUTES –BY AGE DEMOGRAPHIC

K

2-11

12-17

T

18-24

A

25-34

A

35-49

A

50-64

A

65+

A

2+

P

18+

A

BLACK

2+

HISP.

2+

ASIAN

2+

On Traditional TV 22:07

18:58

19:01

24:24

30:17

40:22

47:27

30:50

33:35

44:57

26:07

16:42

Watching

Time-Shifted TV

2:18

1:50

1:43

3:11

3:45

3:55

3:14

3:04

3:20

2:49

2:08

1:56

Using a DVD/

Blu-Ray Device

1:46

1:00

0:49

1:20

1:05

0:58

0:36

1:05

0:58

1:13

1:01

0:46

Using a Game

Console

2:41

3:55

3:12

2:21

0:58

0:19

0:06

1:36

1:10

1:49

1:43

0:55

Using a

Multimedia

Device

0:25

0:18

0:29

0:33

0:26

0:14

0:12

0:22

0:12

0:14

1:00

Using the

Internet

on a Computer

0:23

0:43

4:54

6:25

7:46

5:37

2:50

4:34

5:42

4:52

3:15

4:38

Watching Video

on Internet

0:20

0:26

1:58

2:02

1:49

1:06

0:21

1:11

1:25

1:32

1:02

1:27

Using any App/

Web

on a Smartphone

n/a

9:21

9:40

8:29

5:11

1:13

n/a

6:36

9:51

9:26

8:03

Watching Video

on a Smartphone

n/a

0:26

0:17

0:12

0:05

-

n/a

0:11

0:22

0:21

0:16

Listening to

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COMPOSITE BLACK HISPANIC ASIAN Q2 14 Q2 13 Q2 14 Q2 13 Q2 14 Q2 13 Q2 14 Q2 13

On Traditional TV 284,425 282,657 37,518 36,870 48,551 47,207 15,052 15,676 Watching Time-shifted TV 175,215 167,109 22,415 20,161 24,686 22,210 8,136 8,221 Using a DVD/Blu-Ray Device 140,142 141,496 16,328 16,464 23,137 22,960 6,913 7,321 Using a Game Console 94,456 94,019 11,820 11,669 17,518 17,436 5,483 5,505 Using a Multimedia Device 23,425 n/a 1,538 n/a 2,953 n/a 3,022 n/a Using the Internet on a Computer 196,849 203,932 24,701 24,359 26,439 27,127 7,798 7,385 Watching Video on Internet 145,469 149,813 18,436 17,805 19,061 20,052 6,247 5,903 Using any App/Web on a Smartphone 157,092 132,235 19,824 16,994 28,772 24,491 9,221 8,027 Watching Video on a Smartphone 114,372 96,929 15,994 14,040 23,191 20,144 6,944 6,175 Listening to AM/FM Radio 258,980 257,787 33,058 32,757 42,535 42,007 n/a n/a

TABLE 3 – MONTHLY TIME SPENT BY MEDIUM

USERS 2+ IN HOURS: MINUTES

TABLE 2 – OVERALL USAGE BY MEDIUM

NUMBER OF USERS 2+ (IN 000’S) – MONTHLY REACH

COMPOSITE BLACK HISPANIC ASIAN

Q2 14 Q2 13 Q2 14 Q2 13 Q2 14 Q2 13 Q2 14 Q2 13

On Traditional TV 142:38 146:37 206:03 206:47 117:58 121:28 83:02 86:37 Watching Time-shifted TV 14:13 12:35 12:54 9:23 9:39 8:45 9:38 9:00 Using a DVD/Blu-Ray Device 5:00 5:10 5:35 6:05 4:38 4:54 3:51 4:20 Using a Game Console 7:24 6:27 8:21 7:22 7:44 7:12 4:35 4:46 Using a Multimedia Device 1:42 n/a 0:55 n/a 1:02 n/a 5:00 n/a Using the Internet on a Computer 30:07 27:21 33:23 28:37 26:26 22:46 43:54 35:13 Watching Video on Internet 10:35 6:28 13:59 9:00 11:43 8:17 17:14 12:23 Using any App/Web on a Smartphone 43:31 32:48 52:40 38:36 49:09 38:54 42:43 32:48 Watching Video on a Smartphone 1:41 1:09 2:30 1:30 2:20 1:45 1:53 1:25 Listening to AM/FM Radio 59:19 60:59 61:42 63:22 58:45 60:07 n/a n/a

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11

TABLE 4 – MONTHLY TIME SPENT BY MEDIUM IN HOURS: MINUTES

AMONG COMPOSITE

TABLE 4A – MONTHLY TIME SPENT BY MEDIUM IN HOURS: MINUTES

AMONG BLACKS

K 2-11 T 12-17 A 18-24 A 25-34 A 35-49 A 50-64 A 65+ P 2+ On Traditional TV 102:54 86:39 96:53 117:20 138:27 180:56 211:55 142:38 Watching Time-shifted TV 10:40 8:21 8:43 15:19 17:08 17:33 14:28 14:13 Using a DVD/Blu-Ray Device 8:12 4:33 4:09 6:25 4:58 4:21 2:39 5:00 Using a Game Console 12:31 17:52 16:17 11:17 4:24 1:27 0:28 7:24 Using a Multimedia Device 1:57 1:22 2:27 2:41 1:57 1:04 0:53 1:42 Using the Internet on a Computer 4:49 6:47 31:43 35:36 39:21 32:53 22:26 30:07 Watching Video on Internet 6:16 6:20 17:01 15:02 12:06 8:32 3:45 10:35 Using any App/Web on a Smartphone n/a n/a 50:51 50:28 46:53 34:05 25:54 43:31 Watching Video on a Smartphone n/a n/a 2:48 1:56 1:29 1:03 0:26 1:41 Listening to AM/FM Radio n/a 36:05 50:53 54:33 64:05 69:25 61:33 59:19

K 2-11 T 12-17 A 18-24 A 25-34 A 35-49 A 50-64 A 65+ P 2+ On Traditional TV 147:52 147:41 152:54 178:09 209:06 276:46 312:57 206:03 Watching Time-shifted TV 9:48 9:16 10:08 15:08 16:04 15:05 10:51 12:54 Using a DVD/Blu-Ray Device 6:30 3:27 3:37 8:49 5:02 7:15 2:11 5:35 Using a Game Console 11:48 17:53 14:24 12:51 4:39 1:31 0:50 8:21 Using a Multimedia Device 0:44 0:43 0:50 1:33 1:28 0:35 0:08 0:55 Using the Internet on a Computer 6:24 7:06 42:48 40:06 40:12 33:55 22:05 33:23 Watching Video on Internet 6:16 5:43 26:55 16:44 13:25 11:20 6:12 13:59 Using any App/Web on a Smartphone n/a n/a 57:48 65:55 55:40 42:35 - 52:40 Watching Video on a Smartphone n/a n/a 4:00 3:01 2:01 1:46 - 2:30 Listening to AM/FM Radio n/a 39:50 50:18 55:47 66:02 76:04 69:47 61:42

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TABLE 4B – MONTHLY TIME SPENT BY MEDIUM IN HOURS: MINUTES

AMONG HISPANICS

TABLE 4C – MONTHLY TIME SPENT BY MEDIUM IN HOURS: MINUTES

AMONG ASIANS

K 2-11 T 12-17 A 18-24 A 25-34 A 35-49 A 50-64 A 65+ P 2+ On Traditional TV 106:55 79:09 87:45 106:37 119:54 153:50 217:13 117:58 Watching Time-shifted TV 9:56 6:38 6:37 10:26 10:25 11:18 11:30 9:39 Using a DVD/Blu-Ray Device 7:13 4:27 3:51 4:35 4:25 3:13 2:33 4:38 Using a Game Console 10:27 18:10 12:51 8:04 3:18 1:07 0:35 7:44 Using a Multimedia Device 1:20 1:19 1:09 1:06 1:04 0:23 0:28 1:02 Using the Internet on a Computer 3:46 6:42 27:49 32:09 37:12 29:47 20:30 26:26 Watching Video on Internet 6:44 6:10 17:19 13:45 11:55 11:54 3:39 11:43 Using any App/Web on a Smartphone n/a n/a 49:45 56:08 50:09 32:26 31:33 49:09 Watching Video on a Smartphone n/a n/a 3:11 2:33 1:59 0:51 - 2:20 Listening to AM/FM Radio n/a 37:14 51:27 58:27 66:50 69:21 62:17 58:45

K 2-11 T 12-17 A 18-24 A 25-34 A 35-49 A 50-64 A 65+ P 2+ On Traditional TV 57:39 55:03 47:07 76:07 74:12 104:15 157:44 83:02 Watching Time-shifted TV 7:57 8:12 5:48 11:08 11:18 9:57 9:40 9:38 Using a DVD/Blu-Ray Device 7:38 2:35 1:47 3:41 3:51 3:16 2:51 3:51 Using a Game Console 7:31 7:46 10:13 6:00 3:13 1:21 0:18 4:35 Using a Multimedia Device 3:21 3:13 3:22 6:52 5:09 5:13 6:28 5:00 Using the Internet on a Computer 4:53 13:19 58:29 49:39 54:17 34:27 20:46 43:54 Watching Video on Internet 4:44 13:15 24:20 24:20 14:13 13:54 5:04 17:14 Using any App/Web on a Smartphone n/a n/a 44:24 42:45 45:52 - - 42:43 Watching Video on a Smartphone n/a n/a 2:15 1:40 2:00 - - 1:53

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13

STREAMING

QUINTILE

# OF

PERSONS

(000)

STREAM

INTERNET

TV

Stream 1 24,794 23.8 57.2 238.6 Stream 2 24,794 2.8 31.3 252.9 Stream 3 24,810 0.8 18.5 255.9 Stream 4 24,779 0.2 12.8 246.5 Stream 5 24,798 0.0 7.9 237.5 Non Streamers 120,838 0.0 1.1 231.1 All 244,813 2.8 13.5 238.9 COMPOSITE

( AVERAGE DAILY MINUTES )

TABLE 5 – CROSS-PLATFORM HOMES RANKED BY IN-HOME STREAMING BEHAVIOR

# OF

PERSONS

(000)

STREAM

INTERNET

TV

2,676 26.9 54.3 329.8 2,670 3.5 27.4 370.2 2,688 1.0 16.6 342.6 2,664 0.3 12.4 353.5 2,676 0.0 8.0 349.4 13,162 0.0 0.6 315.3 26,537 3.3 12.4 332.5

( AVERAGE DAILY MINUTES ) BLACK

STREAMING

QUINTILE

# OF

PERSONS

(000)

STREAM

INTERNET

TV

Stream 1 3,174 23.1 43.6 193.3 Stream 2 3,185 2.8 18.3 194.5 Stream 3 3,180 0.8 10.6 195.3 Stream 4 3,169 0.2 8.0 202.9 Stream 5 3,181 0.0 6.1 192.7 Non Streamers 19,520 0.0 0.7 195.9 All 35,408 2.5 8.2 195.8 HISPANIC

# OF

PERSONS

(000)

STREAM

INTERNET

TV

1,444 36.5 56.1 111.9 1,440 4.6 31.1 127.9 1,438 1.2 19.1 110.9 1,443 0.3 14.0 147.0 1,439 0.0 10.6 153.0 8,261 0.0 0.7 148.5 15,465 4.1 12.8 139.8

( AVERAGE DAILY MINUTES ) ASIAN

(14)

INTERNET

QUINTILE

# OF

PERSONS

(000)

STREAM

INTERNET

TV

Internet 1 33,970 12.8 71.0 295.4 Internet 2 33,984 4.5 17.5 251.1 Internet 3 33,977 2.1 5.9 229.8 Internet 4 33,983 0.6 1.6 219.3 Internet 5 33,966 0.2 0.2 226.5 Non Internet Users 74,932 0.0 0.0 225.6 All 244,813 2.8 13.5 238.9

COMPOSITE

TABLE 5 – CROSS-PLATFORM HOMES RANKED BY IN-HOME INTERNET BEHAVIOR

# OF

PERSONS

(000)

STREAM

INTERNET

TV

3,525 14.6 66.5 418.6 3,510 6.7 16.9 345.0 3,517 1.9 6.1 330.3 3,517 0.7 1.7 297.4 3,525 0.2 0.3 343.9 8,943 0.0 0.0 302.5 26,537 3.3 12.4 332.5

( AVERAGE DAILY MINUTES ) BLACK

INTERNET

QUINTILE

# OF

PERSONS

(000)

STREAM

INTERNET

TV

Internet 1 4,410 13.9 50.6 228.1 Internet 2 4,408 3.9 10.2 188.1 Internet 3 4,411 1.0 3.2 173.1 Internet 4 4,405 0.5 1.0 180.8 Internet 5 4,413 0.1 0.2 194.8 Non Internet Users 13,360 0.0 0.0 200.4 All 35,408 2.5 8.2 195.8

HISPANIC

# OF

PERSONS

(000)

STREAM

INTERNET

TV

1,990 19.2 70.7 124.9 1,984 8.9 20.0 116.9 1,981 1.5 5.9 159.6 1,988 1.0 1.3 126.7 1,986 0.2 0.2 158.7 5,536 0.2 0.0 144.5 15,465 4.1 12.8 139.8

( AVERAGE DAILY MINUTES ) ASIAN

(15)

15

TELEVISION

QUINTILE

# OF

PERSONS

(000)

STREAM

INTERNET

TV

Television 1 48,332 2.7 20.5 614.2 Television 2 48,333 2.3 14.7 298.1 Television 3 48,335 2.2 11.9 177.3 Television 4 48,331 2.1 9.4 92.9 Television 5 48,337 4.3 10.8 21.6 Non Television Viewers 3,145 9.2 19.0 0.0 All 244,813 2.8 13.5 238.9 COMPOSITE

TABLE 5 – CROSS-PLATFORM HOMES RANKED BY IN-HOME TELEVISION VIEWING BEHAVIOR

# OF

PERSONS

(000)

STREAM

INTERNET

TV

5,266 3.1 20.1 793.3 5,265 3.1 12.0 423.1 5,261 3.3 12.7 259.5 5,264 3.1 9.1 147.6 5,262 3.5 8.3 41.9 218 7.3 6.1 0.0 26,537 3.3 12.4 332.5

( AVERAGE DAILY MINUTES ) BLACK

TELEVISION

QUINTILE

# OF

PERSONS

(000)

STREAM

INTERNET

TV

Television 1 7,011 2.7 12.0 465.8 Television 2 7,016 2.1 8.7 247.0 Television 3 6,999 1.7 7.3 157.2 Television 4 7,009 1.8 5.7 89.2 Television 5 7,011 3.8 7.4 25.1 Non Television Viewers 362 6.6 7.9 0.0 All 35,408 2.5 8.2 195.8 HISPANIC

# OF

PERSONS

(000)

STREAM

INTERNET

TV

3,012 2.7 12.7 414.0 3,014 1.8 9.6 175.4 3,001 3.3 13.9 87.7 3,009 4.0 10.7 33.9 3,007 7.5 14.9 5.2 423 11.3 26.6 0.0 15,465 4.1 12.8 139.8

( AVERAGE DAILY MINUTES ) ASIAN

(16)

TABLE 6 – SMARTPHONE VIDEO VIEWING QUINTILES

BASED ON ADULTS 18+ USAGE OF VIDEO ON APPS/WEB

SMARTPHONE QUINTILES

# OF PERSONS (000)

TPP (HH:MM:SS)

# OF PERSONS (000)

TPP (HH:MM:SS)

Smartphone 1 22,858 6:42:37 19,349 4:36:03 Smartphone 2 22,867 1:10:44 19,411 0:46:48 Smartphone 3 22,890 0:25:15 19,388 0:17:03 Smartphone 4 22,863 0:08:02 19,377 0:05:20 Smartphone 5 22,891 0:01:09 19,404 0:00:45 All 114,369 1:41:30 96,930 1:09:06

TABLE 7 - TELEVISION DISTRIBUTION SOURCES

NUMBER OF HOUSEHOLDS (IN 000’S)

Q2

2014

Q2

2013

Q2

2014

Q2

2013

Q2

2014

Q2

2013

Q2

2014

Q2

2013

Broadcast Only 12,023 10,947 1,999 1,804 2,835 2,512 663 617 Wired Cable (No Telco) 54,119 56,621 7,522 7,667 5,716 6,377 2,044 2,099 Telco 12,399 10,857 1,625 1,403 1,425 1,163 653 618 Satellite 34,417 35,243 3,612 3,725 5,465 5,314 752 951 Broadband Only 2,068 n/a 142 n/a 204 n/a 201 n/a

BLACK HISPANIC ASIAN

COMPOSITE

Q2 2013 Q2 2014

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17

TABLE 8 – CABLE/SATELLITE HOMES WITH INTERNET STATUS

Q2

2014

Q2

2013

Q2

2014

Q2

2013

Q2

2014

Q2

2013

Q2

2014

Q2

2013

Broadcast Only and

Broadband Access 6,120 5,306 637 513 893 820 506 461 Broadcast Only and No Internet/

Narrowband Access 6,274 5,904 1,305 1,252 1,800 1,569 135 130 Cable Plus and Broadband Access 80,546 78,511 8,354 8,006 8,932 8,607 3,397 3,305 Cable Plus and No Internet /

Narrowband Access 20,102 21,783 4,092 4,466 3,478 3,614 215 255

BLACK HISPANIC ASIAN

COMPOSITE

TABLE 9 – DEVICES IN TV HOUSEHOLDS

Q2

2014

Q2

2013

Q2

2014

Q2

2013

Q2

2014

Q2

2013

Q2

2014

Q2

2013

DVD/Blu-Ray Player 93,707 94,587 11,381 11,460 12,064 12,110 3,074 3,237 DVR 55,713 52,977 5,884 5,567 5,968 5,574 1,786 1,881 High Definition TV 100,684 93,514 12,156 11,076 13,694 12,703 3,998 3,872 Video Game Console 51,470 50,250 6,476 6,123 8,044 7,936 2,242 2,229 Tablet 42,064 27,049 4,213 2,559 5,224 2,907 2,191 1,729 Enabled Smart TV 11,688 6,193 1,057 530 1,728 769 914 485

BLACK HISPANIC ASIAN

(18)

EXHIBIT 2 – MOBILE DEVICE PENETRATION BY ETHNICITY

SMARTPHONE FEATURE PHONE

TOTAL

29%

71%

WHITE

32%

68%

BLACK

22%

78%

HISPANIC

21%

79%

18%

82%

ASIAN

TABLE 10 - TELEVISION DISTRIBUTION SOURCES BY ETHNICITY

PERCENTAGE OF HOUSEHOLDS

MARKET BREAK

COMPOSITE

WHITE

BLACK

HISPANIC

ASIAN

Broadcast Only

10%

9%

12%

16%

15%

Wired Cable (No Telco)

46%

47%

50%

38%

47%

Telco

11%

12%

10%

16%

Satellite

30%

31%

25%

35%

18%

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19

SOURCING &

METHODOLOGIES

GLOSSARY

TV HOUSEHOLD: Nielsen defines a TV household as a home with at least one operable TV/monitor with the ability to deliver video via traditional means of antennae, cable STB or Satellite receiver and /or with a broadband connection.

TRADITIONAL TV: Watching live or time-shifted content on a television set. WIRED CABLE: Traditional cable delivered through wires to your home.

TELCO: A paid TV subscription delivered fiber-optically via a traditional telephony provider. SATELLITE: A paid TV subscription where the signal is distributed to an orbiting satellite. The amplified signal is then re-transmitted to the home and received via a dish. (Sometimes also referred to as “dish”).

BROADBAND ACCESS: A paid, high-speed Internet access delivered via DSL, Cable Internet through cable provider, Fiber-Optic Service, U-Verse, Satellite Internet, Data Card (aircard that connects to a cellular phone network) or PC tethered to cell phone (cellular phone network).

NARROWBAND ACCESS: A household that accesses the Internet via a telephone line (often referred to as dial up).

BROADCAST ONLY: A mode of television content delivery that does not involve satellite transmission or cables (ie—a paid service). Also commonly referred to as “Over-the-air.”

BROADBAND ONLY: A household with at least one operable TV/monitor that receives video exclusively through a broadband internet connection instead of traditional means (over the air, wired cable, telco, satellite).

AM/FM RADIO: Listening to programming from AM/FM radio stations or network programming.

MULTIMEDIA DEVICE: Viewing on an Apple TV, Boxee, Roku, Google Chromecast, or other internet connected device through the television. This does not include DVD / Blu-Ray Devices, Game Consoles, or Computers.

ENABLE SMART TV: A household with at least one television set that is capable and enabled to access the internet.

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TELEVISION METHODOLOGY

On Traditional TV includes Live usage plus any playback viewing within the measurement period. Time-shifted TV is playback primarily on a DVR but includes playback from VOD, DVD recorders, server based DVR’s and services like Start Over.

On Traditional TV reach includes those viewing at least one minute within the

measurement period. This includes Live viewing plus any playback within the measurement period. Second Quarter 2014 Television data is based on the following measurement interval: 03/31/14-06/29/14. As of February 2011, DVR Playback has been incorporated into the Persons Using Television (PUT) Statistic.

Metrics for Using a DVD/Blu-Ray Device and Using a Game Console are based on when these devices are in use for any purpose, not just for accessing media content. For example, Using a Game Console will also include time when the game console is being used to play video games.

ONLINE METHODOLOGY

In July 2011 an improved hybrid methodology was introduced in Nielsen’s NetView and VideoCensus product. This methodology combines a census level accounting of page views and video streams where Nielsen measurement tags have been deployed in order to project audience and behavior to the full universe of all Internet users. For VideoCensus, the portion of the total video streams calibrated by census data, previously allocated to Home/ Work computers, are now allocated to other devices and locations such as smartphones and viewing outside of home and work. This change affects both “Watching Video on the Internet” and “Using the Internet” figures. Beginning in Q1 2012, Cross-Platform metrics are derived from the new hybrid panel. Year over year trends are available beginning in Q3 2012. Data should not be trended to previous quarters’ published editions.

Hours:minutes for Internet and video use are based on the universe of persons who used the Internet/watched online video. All Internet figures are weekly or monthly averages over the course of the quarter. All “Using the Internet on a Computer” metrics are derived from Nielsen NetView product, while all “Watching Video on the Internet” metrics are derived from Nielsen VideoCensus product. “Watching Video on the Internet” is a subset of “Using the Internet on a Computer.”

Due to the release of the Chrome browser v.19 in May 2012, some Nielsen Netview data for a small number of sites that have extensive use of HTTPS is under reported for May and June 2012. A solution has been implemented for July 2012 reporting. This affects “Using the Internet on a Computer” during this time.

YouTube Partner reporting became available through Nielsen VideoCensus featuring May 2012 data. YouTube Partner data is reported as individual channels under the YouTube brand in Nielsen VideoCensus. Data for each YouTube partner is aggregated across two entity levels, the broadest as Nielsen VideoCensus channel entity and the more granular being Nielsen VideoCensus client-defined entity. This affects the “Watching Video on Internet” during this time.

Due to a processing error, YouTube brand-level stream and duration metrics were inflated from May 2012 – May 2013 which impacted “Watching Video on Internet”. The current report contains the corrected metrics for the prior year data in the year over year comparisons. However, because of an additional processing issue that occurred in Q2 2012 (above note), the Q2 2012 data could not be restated and is based on the originally released data points.

As of January 2014, two factors led to an increase in “Watching Video on the Internet”. Secure or “https” streaming of videos was added into reporting for entities such as Facebook. Additionally, YouTube mobile streams became included within the hybrid reporting.

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RADIO METHODOLOGY

AM/FM RADIO METHODOLOGY: Audience estimates for 48 large markets are based on a panel of people who carry a portable device called PPM that passively detects exposure to content that contains inaudible codes embedded within the program content. Audience estimates from the balance of markets and counties in the US are based on surveys of people who record their listening in a written diary for a week.

The estimates in this report are based on RADAR and the National Regional Database. RADAR reports national network radio ratings covering the US using both PPM and Diary measurement and it is based on a rolling one-year average of nearly 400,000 respondents aged 12+ per year.

Monthly Radio Estimates: Nielsen’s Measurement Science group used statistical modeling techniques to estimate the total cume audience to radio in a four week period, as compared to the total cume audience to radio in an average week. The methodology utilized PPM panel data, and essentially measured how many people who were not exposed to radio in a single week might typically be exposed to radio over a consecutive four week period. A radio cume growth factor was then determined and applied to radio listening on a national basis. NOTES: Listening to HD radio broadcasts, Internet streams of AM/FM radio stations and Satellite Radio is included the Persons Using Radio estimates in this report where the tuning meets our reporting and crediting requirements.

MOBILE METHODOLOGY

Nielsen’s Electronic Mobile Measurement (EMM) is an observational, user-centric approach that uses passive metering technology on smartphones to track device and application usage on an opt-in convenience panel. Results are then reported out through Nielsen Mobile NetView 3.0. There are approximately 5,000 panelists in the US across both iOS and Android smartphone devices, and this method provides a holistic view of all activity on a smartphone as the behavior is being tracked without interruption.

A number of steps are taken after the data collection process to ensure the reported data is representative of the mobile population. Weighting controls are applied across five characteristics (gender, age, income, race, and ethnicity) while independent enumeration studies are carried out on a continuous basis to provide the most current estimates of the mobile population (aka Universe Estimation). This mobile population is drawn from a combination of Mobile Insights, as well as surveying the National People Meter (NPM) panel that is the industry standard and currency for TV Ratings.

Figures reported in Nielsen’s Mobile NetView 3.0 include those individuals who are P18+ who have used an iOS or Android smartphone device in the US during Q2 of 2014. In particular:

“Using any App/Web on a Smartphone” refers to consuming mobile media content through a web browser or via a mobile app. It does not include other types of activity such as making/receiving phone calls, sending SMS/MMS messages etc, which has been excluded for this report.

“Watching Video on a Smartphone” is a subset of “Using any App/Web on a Smartphone” and refers to those individuals who visit a website or use a mobile app specifically designed to watch video content.

Due to this methodology change from survey based data to EMM as of the Qtr 4 2013 report, data should not be trended to previous quarters’ published editions. The current report contains the revised metrics for the prior year data in the year over year comparisons.

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SOURCING

TABLES 1, 2, 3, 4 - A WEEK IN THE LIFE, OVERALL

USAGE BY MEDIUM, MONTHLY TIME SPENT BY

MEDIUM IN HOURS:MINUTES USERS 2+, MONTHLY

TIME SPENT BY MEDIUM IN HOURS: MINUTES

Source: Traditional TV, Time-shifted TV, DVD, Game Consoles, Multimedia Devices 03/31/14-06/29/14 via Nielsen NPOWER/NPM Panel, Online 04/01/14-06/30/14 via Nielsen Netview and Nielsen VideoCensus, Mobile 04/01/14-06/30/14 via Nielsen Electronic Mobile Measurement, Radio 03/28/13-03/26/14 via RADAR 121.

Table 1 is based on the total US population whether or not they have the technology. Tables 2-4 are based on users of each medium.

Electronic Mobile Measurement is based on P18+. Radio RADAR 121 data is based on P12+. Therefore, P2+ would be based on P18+ for Smartphone and P12+ for Radio.

TABLE 5 – CROSS-PLATFORM HOMES RANKED BY

IN-HOME BEHAVIOR

Source: 04/01/14-06/30/14 via Nielsen NPOWER/Cross-Platform Homes Panel for P2+. Internet and Streaming based on home PC only.

TABLE 6 – SMARTPHONE VIDEO VIEWING QUINTILE

Source: 04/01/14-06/30/14 via Electronic Mobile Measurement for P18+. Smartphone video viewing quintiles are grouped based on users’ time per person per month watching video on a Smartphone. It refers to those individuals who visit a website or use a mobile app specifically designed to watch video content.

TABLE 7, 8, 9–TELEVISION DISTRIBUTION SOURCES,

CABLE/SATELLITE HOMES WITH INTERNET STATUS,

DEVICES IN TV HOUSEHOLDS

Source: Based on the Universe Estimates for the 15th of each month within the quarter via Nielsen NPOWER/NPM Panel.

TABLE 10 - TELEVISION DISTRIBUTION SOURCES -

PERCENTAGE OF HOUSEHOLDS

Source: Based on the scaled installed counts for 03/31/14-06/29/14 via Nielsen NPOWER/NPM Panel.

EXHIBIT 1 – AVERAGE TIME SPENT PER ADULT 18+ PER

DAY

Source: Live TV, Time-shifted TV, DVD, Game Consoles, Multimedia Devices 03/31/14-06/29/14 via Nielsen NPOWER/NPM Panel, Online 04/01/14-06/30/14 via Nielsen Netview, Mobile 04/01/14-06/30/14 via Electronic Mobile Measurement, Radio 03/28/13-03/26/14 via RADAR 121.

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ABOUT NIELSEN

Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands.

For more information, visit www.nielsen.com.

Copyright © 2014 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and service names are trademarks or registered trademarks of their respective companies. 13/7429

EXHIBIT 2 – MOBILE DEVICE PENETRATION

BY ETHNICITY

Source: Mobile 04/01/14-06/30/14 via Nielsen Mobile Insights.

Note: - represents insufficient sample size while n/a represents data unavailability.

PAGES 4-7

Digital Video: Video content viewed on a computer or mobile device. Includes “Watching Video on the Internet” and “Watching Video on a Smartphone.”

TV Screen: Viewing on a TV screen originating from the television or any device connected to the television. This would include when these devices are in use for any purpose, not just for accessing media content. Includes “On Traditional TV,” “Using a DVD / Blu-Ray Device,” “Using a Game Console,” and “Using a Multimedia Device.”

DAILY TIME SPENT –

Source: Traditional TV, DVD, Game Consoles, Multimedia Devices 03/31/14-06/29/14, 04/01/13-06/30/13, 03/26/12-06/24/12 via Nielsen NPOWER/NPM Panel; Online 04/01/14-06/30/14, 04/01/13-06/30/13, 04/01/12-06/30/12 via Nielsen VideoCensus; Mobile – 04/01/14-06/30/14, 04/01/13-06/30/13, 04/01/12-06/30/12 via Nielsen Electronic Mobile Measurement

Based on users of each medium. DEVICE PENETRATION –

Source: Smartphone P13+ May 2014 via Nielsen Mobile Insights, Smart TV and Multimedia Devices HHLD May 2014 via Nielsen Custom data, Overall TV May 2014 via Total and TV HHLD Universe Estimates, Other devices HHLD May 2014 based on the scaled installed counts via Nielsen NPOWER/NPM Panel.

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