Multi-Screen Insights An Overview Of Digital Video’s Growth

Multi-Screen Insights Television still commands 93% of total video time – Majority of viewing is with Live TV – Young adults are spending less time with time-shifted content (-4% v. yag A18-34) – Record number of Blacks & Hispanics viewed TV in 4Q14 – Television is preferred video viewing platform among young and old (84% of total video time is spent with the TV among A18-24) More consumers are sampling video on smartphones (+20%) – True across all ethnic segments – A35-49 are spending significantly more time with mobile video (+40% v yag) – App/web usage is up 13%, driven primarily by A35+ Multimedia device usage has jumped 47% with usage highest among A18-34 – OTT penetration continues to climb – nearing 19% Video Game Usage is pretty much on par – down slightly 1% – Time spent is up 5% – Blacks and Hispanics have experienced a surge among A65+ in time spent v yag Mobile video v. TV – Television still commands practically 9 out of 10 video viewing minutes while mobile remains nominal…nearing 15% among A18-24

With The Proliferation of Various Mobile Devices, How Are Consumers Viewing Content?

Television Still Commands Half (49%) of Consumers Total Media Time On a Daily Basis Avg Time Spent Per Day (Hrs: Min) Among P18+ Source: Nielsen Cross Platform Report 4Q14,P18+

…and Majority Of Their Viewing Continues To Be With Live Television Time Spent Per Day (Hrs:Min) Among P18+ Source: Nielsen Cross Platform Report 4Q14,P18+;

Young Adults Are Spending Less Time With Time-shifted TV While Adults 65+ Are Up Considerably Source: Nielsen Total Audience Report 4Q14; % change in Monthly time time with timeshifted TV Highest Time Spent Level To Date

Drilling Down To Main Video Devices, How Much Video Content is Consumed On Each Platform?

TV Still Commands 93% of Total Video Time Watching Video on Internet Watching Television Watching Video on a Smartphone Monthly by Device 149:1410:29 1:42 Source: Nielsen Total Audience Report 4Q14 v yag;Total video= TV+comp+smartphone P2+: Time Spent Hrs:min P2+:# of Viewers v. YAG 285 Million -0.56% 146 Million -4.2% 122 Million +19.8%

In Fact, A Record Number of Blacks and Hispanics Viewed Video On The Television In 4Q14 Number of Users P2+ (OOO)/ Monthly Source: Nielsen Total Audience report 4Q14 v yag, 4Q134Q14% Change Hispanic123:25121:11-2% Black :39-5% Time Spent/ Monthly (Hrs:min)

Among Key Advertiser Targets, Television Commands Practically 9 out of 10 Total Video Minutes 89% 91% 86% TV Share Of Total Video Source: Nielsen Total Audience Report 4Q14; Total video=TV; internet video and mobile video

…and Captures Majority Of Total Video Time Among Both Young and Old 95% 94% 84% 88% 92% 95% 98% TV Share Of Total Video Source: Nielsen Total Audience Report 4Q14; Total video=TV; internet video and mobile video

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

State of Mobile Video?

More and More Consumers Continue To Sample Video On Smartphones - Up 20% Source: Nielsen Total Audience Report 4Q14

…and Spend Significantly More Time With Video On Their Phones, Especially Adults Source: Nielsen Total Audience Report 4Q14

What Is Driving Mobile’s Growth?

More & More Consumers Are Using Apps/Web On Their Smartphones; Greatest Increase Seen Among Adults 35+ Source: Nielsen Total Audience Report 4Q14

In Fact, App/Web Usage Is At Its Highest Level To Date Source: Nielsen Total Audience Report 4Q14

As Content is Being Delivered Via Various Delivery Methods, What is the State Of Over- The-Top Today?

Source: Nielsen NPM Over-The-Top Penetration Continues To Steadily Rise, Nears 19%

Usage Of Multimedia Devices Has Jumped 47%; Time Spent Has Practically Doubled Source: Nielsen Total Audience Report 4Q14l; multimedia device-usage of internet connected devices viewing source (includes apple tv, roku, google chromecast, smartphones and audio-video viewing sources (computer/latrops, tablets, karaoke, video camcorders, security/digital cameras) that are connected to home TV set Number of P2+ (OOO) Using Multimedia Device Time Spent P2+ Using Multimedia Device/Monthly

Multimedia Device Usage Averages Over 3 Hours Per Month Among P2+; Highest Among Young Adults A18-34 Source: Nielsen Total Audience Report 4Q14l; multimedia device-usage of internet connected devices viewing source (includes apple tv, roku, google chromecast, smartphones and audio-video viewing sources (computer/latrops, tablets, karaoke, video camcorders, security/digital cameras) that are connected to home TV set

Drilling Down To Ethnic Segments: Usage Has Increased Significantly, Especially Among Blacks Source: Nielsen Total Audience Report 4Q14l; multimedia device-usage of internet connected devices viewing source (includes apple tv, roku, google chromecast, smartphones and audio-video viewing sources (computer/latrops, tablets, karaoke, video camcorders, security/digital cameras) that are connected to home TV set 4Q134Q14% Change Black2,0714,125+99% Hispanic4,2535,467+29% Asian3,5715,078+42% Number of P2+ (OOO) Using Multimedia Device

…and Skews a Little Older Among Blacks & Asians – Higher Time Spent Among A25-49 Source: Nielsen Total Audience Report 4Q14l; multimedia device-usage of internet connected devices viewing source (includes apple tv, roku, google chromecast, smartphones and audio-video viewing sources (computer/latrops, tablets, karaoke, video camcorders, security/digital cameras) that are connected to home TV set Time Spent (HRS:MIN) Using Multimedia Device CH2-11T12-17A18-24A25-34A35-49A50-64A65+ Black2:192:003:134:133:311:380:56 Hispanic2:061:203:153:572:070:560:33 Asian7:474:197:5911:569:446:439:16

What About Video Game Usage?

Number of Consumers Using Video Game Consoles is Down a Slight 1% But Time Spent is Up 5% Source: Nielsen Total Audience Report 4Q14; Total video=TV; internet video and mobile video 4Q134Q14+/- # of Video Game Users97,66797,090-1% P2+ Time Spent/ Monthly7:548:19+5% P2+ (Hrs:Min)

Video Game Usage is Driven by A18-24 & A65+; Blacks & Hispanics Experienced a Considerable Uptick Among A65+ Source: Nielsen Total Audience Report 4Q14 TOTALBLACKHISPANICASIAN CH2-112%-11%-1%-8% T12-175%3%14%28% A %-14%24%-1% A %-9%11%41% A35-490%18%20%-1% A %-23%-13%64% A65+15%29%65%-41% % Change in Time Spent Monthly Using Video Game Console v. yag

Lets Put It All Into Perspective… With All The Various Mobile Devices Available Today, Television Still Commands The Lion Share Of Video Viewing…

TV Commands Practically 9 out of 10 Total Minutes of Video Viewing; Mobile Video Still Only Represents A Nominal Share Share of Total Monthly Video Time Spent by Device Source: Nielsen Total Audience report 4Q14, Total video=TV; internet video and mobile video

Drilling Down To Ethnic Segments: More Black and Hispanic Consumers Tune To Television and Video On Smartphones Watching Traditional Television* v. YAG Watching Video on Computer v. YAG Video on Smartphone v. YAG BlackHispanic Gain/Loss Of Users P2+ 4Q14 v 4Q , ,000 Asian -55, ,000 -2,123, ,000 +2,616,000 +2,214, ,000 Source: Nielsen Total Audience report 4Q14v yag

Source: Nielsen Npower for Total Day. Hut/PUT’s; nov’14-jan’15 v yag Overall, TV’s Reach Is Still at 98-99% Across The Board