Mobile Media Observations, Data & Trends February 2011 Jennifer Manning The Nielsen Company Manager, Client Services

eBook Owners: Audience Profile eBook Reader Manufacturer Share Q eBook Owners – Owners of both a mobile phone and eBook reader Source: Q4 2010, Nielsen Mobile Insights 1/3 of eBook Owners possess greater than a BS or BA degree & earn 100K+

Page 3 Aside from pricing, Kindle owners are more satisfied with features than Nook owners across the board Top 2 Box Satisfaction for e-Reader Features Amazon Kindle Owners (n=120) and Nook Owners (n=98) Questions used: Q62 Thinking about your [CONNECTED DEVICE], please indicate your satisfaction with the device across the following areas. Source: September 2010 Nielsen Connected Devices Playbook

Bucketed Situational Usage of Connected Device All Connected Device Owners E-ReadersMedia PlayersSmartphones Sedentary Mobile Primary Usage Source: September 2010 Nielsen Connected Devices Playbook Questions used: Q29 Think about your [CONNECTED DEVICE Brand FROM Q4 ] usage in the past week. When you used [CONNECTED DEVICE Brand FROM Q4 ] in the past week, what percentage of the time were you.. e-Reader owners primarily use their devices at home

2.7x Source: September 2010 Nielsen Connected Devices Playbook Questions used: Q27 On average per session, how long are you usually connected to the internet when you use each of your connected devices? Although data suggests e-Readers arent heavily engaged overall

Base: Amazon Kindle (n=420), Apple iPad (n=179), Apple iPod Touch (n=160), Apple iPhone (n=160), Blackberry (n=68). Nook (n=75) Length of Time per Session when Books are Consumed on Device Regularly Access Books on the Connected Device Weekday Time Weekend Time Kindle and Nook owners spend more than 30 minutes reading books on their devices on weekdays & weekends Source: September 2010 Nielsen Connected Devices Playbook Questions used: Q46 On a weekday for each session, how long do you typically access [MEDIA CONTENT TYPE] on each of your connected devices? Q47 On a weekend for each session, how long do you typically access [MEDIA CONTENT TYPE] on each of your connected devices?

Base: Apple iPad (n=111), Amazon Kindle (n=117), Apple iPod Touch (n=79), Apple iPhone (n=118), Blackberry (n=86) Length of Time per Session when Magazines are Consumed on Device Regularly Access Magazines on the Connected Device Weekday Time Weekend Time And Kindle owners also spend a lot time consuming magazines on their device Source: September 2010 Nielsen Connected Devices Playbook Questions used: Q46 On a weekday for each session, how long do you typically access [MEDIA CONTENT TYPE] on each of your connected devices? Q47 On a weekend for each session, how long do you typically access [MEDIA CONTENT TYPE] on each of your connected devices?

Connected Device Cross Ownership Connected Device Owners (n=3,840) Netbook Owners (n=1,293), Tablet owners (n=749), e-readers (n=1,089), Portable Media Players (2,118), Portable game Player (1,678), Smartphones (2,336) Source: September 2010 Nielsen Connected Devices Playbook Questions used: Q6 Which of the following categories of connected devices do you or any one in your household currently own? e-Reader owners likely to also own Smartphone

Smartphone Penetration - Projection All Subscribers 31% of Current Mobile Subscribers Own a Smartphone; Smartphones will have majority share in 2012 Source: Q4 2010, Nielsen Mobile Insights 53% of e-Reader owners have Smartphone

e-Reader and Tablet owners over-index with iOS users Overall Smartphone Marketshare Q eBook Owners – Owners of both a mobile phone and eBook reader Source: Q4 2010, Nielsen Mobile Insights eBook Readers: Smartphone Ownership Q Tablet Owners: Smartphone Ownership Q Tablet Owners – Owners of both a mobile phone and tabley

Page 11 US Mobile Media Usage Penetration (Past 30 Days) Q Mobile media habits of e-Reader owners closely resemble those of Smartphone owners Source: Q4 2010, Nielsen Mobile Insights Media Usage is the data activity performed on mobile phone

The Kindle for iPhone & eReader apps are two of the top app within the Lifestyle/Health category Top Lifestyle/Health Apps Used in the Past 30 Days Past 30 Day App Downloader & Smartphone User (n=2,300) Source: August 2010 Nielsen App Playbook Questions used: CQ35 Which of the following Lifestyle/Health applications have you used in the last 30 days?

Questions used: CQ25 Which of the following Lifestyle/Health applications have you used in the last 30 days? Lifestyle/Health Apps Composition by Gender Past 30 Day Lifestyle/Health App Users Source: August 2010 Nielsen App Playbook Q Nielsen App Playbook The Kindle for iPhone app is more popular among female downloaders Base: Calorie Tracker (n=56), Currency (n=46), eReader (n=48), iFitness Healthcare & Fitness (n=65), Kindle for iPhone (n=68), Lose It! Healthcare & Fitness (n=77), WebMD Mobile Healthcare & Fitness (n=108)

Lifestyle/Health Apps Composition by Age Past 30 Day Lifestyle/Health App Users Source: August 2010 Nielsen App Playbook Q Nielsen App Playbook Questions used: CQ25 Which of the following Lifestyle/Health applications have you used in the last 30 days? While the eReader app is more popular with teenagers Base: Calorie Tracker (n=56), Currency (n=46), eReader (n=48), iFitness Healthcare & Fitness (n=65), Kindle for iPhone (n=68), Lose It! Healthcare & Fitness (n=77), WebMD Mobile Healthcare & Fitness (n=108)

Questions used: CQ23B How interested would you be in an application that would allow you to read books on your cell phone? Interest in an eBook App by Gender and Age Past 30 Day App Downloaders Source: August 2010 Nielsen App Playbook Base: Male (n=2,032), Female (n=2,232), Ages (n=300), Ages (n=261), Ages (n=977), Ages (n=946), Ages (n=870), Ages 55+ (n=910) In general, there is a good amount of interest for an eBook App across demographic groups

Questions used: CQ23C Would you prefer to subscribe to a service that lets you read books or would you prefer to pay per book download? Preference for eBook Billing Model Past 30 Day App Downloaders Base: Male (n=2,032), Female (n=2,232), Ages (n=300), Ages (n=261), Ages (n=977), Ages (n=946), Ages (n=870), Ages 55+ (n=910) And both males and females prefer to pay per book download Source: August 2010 Nielsen App Playbook

Close to 15% of mobile internet users have read comics or book online within the past 30 days Reading Habits of Mobile Internet Users (Last 30 Days) Q3 2010, US, 8% of Mobile Internet Users own e-Reader & 3% plan to purchase e- Reader in next 6 months Source: Q4 2010, Nielsen Mobile Insights

Newspaper readership shifting online shows that traditional media needs to adapt to the new technologies Newspaper Readership: Print vs Online Q3 2010, US, Top 2 Box Source: Q4 2010, Nielsen Mobile Insights

Magazine Content Access on an iPad As well the iPad shows that users are heavily shifting their magazine readership to their connected device % Time Allocated to Various Media for Magazine Consumption, Weekday vs. Weekend Among those who access magazines on their iPad Source: September 2010 Nielsen Connected Devices Playbook Questions used: Q48, Q49 Please indicate below the approximate percentage time you spend accessing the content type across the various devices and content forms by locating percentages on the typical weekday/weekend.