1 PVR 2014 PVR Use Television Bureau of Canada September 2014

2 PVR Penetration Despite the fact that PVRs are now in the majority of Canadian households, they have not become the commercial killing machines reported by the media and feared by advertisers and broadcasters. PVRs put that power in the hands of viewers, but viewers are not exercising that power. PVR’s are predominantly used for their primary function, and that is as a receiver/tuner for digital television. The vast majority of time spent watching television is live (as opposed to playback), and viewers may only fast forward through commercials when recorded television is viewed in playback. The research presented here highlights the fact that even in playback viewers are watching commercials.

3 PVR Penetration Source: Numeris While PVR penetration has grown rapidly, PVR use measured by PPM television meters has remained relatively low. At the time PPMs were launched in 2009, PVR penetration was at just 15.8% of households, and only 3% of all time spent watching television was in playback. Even in PVR households, time spent in playback was low at just 9% of time spent. Fast forward to June 2014, PVR penetration has grown to 53.4% but time spent watching recorded television in playback mode is still very low at just 6% on a per capita basis and 11% in PVR households. While penetration has grown substantially, usage has not. Advertisers and broadcasters can breathe easier knowing that 92%+ of time all spent watching TV is live and therefore immune to the dreaded fast forward button.

4 PVR Penetration Despite reaching critical mass, PVR usage has not changed dramatically Source: Numeris Establishment Survey; Numeris PPM Playback data

5 PVR Usage Source: Numeris; InfoSys+TV PPM; Broadcast Year; Total Canada; Total TV; M-Su 2a-2a; All locations; AvHrsWk(Cap); PB = Playback While penetration has grown substantially, usage has not. Advertisers and broadcasters can breathe easier knowing that 92%+ of time all spent watching TV is live and therefore immune to the dreaded fast forward button.

6 PVR Penetration Source: BBM Analytics o/a NLogic BBM Analytics o/a NLogic asked viewers who do watch recorded television and use the fast forward button about their behaviour when it comes to commercial content. They found that even in playback commercials were breaking through. More than half of the Adults surveyed say they will stop to watch commercials of interest, and that grew to two thirds among Millennials. And when they don’t stop to watch the commercials, three quarters of Adults say that they are aware of the advertisers in the commercials they are fast forwarding.

7 PVR Use Commercials break through Source: BBM Analytics o/a Nlogic OmniVU September 2014

8 PVR Use Commercials break through Source: BBM Analytics o/a Nlogic OmniVU September 2014

9 For more information please visit tvb.ca.