Created by Tania Yuki and Andres Palmiter Blurring the Landscape: How TV is Merging Digital and Traditional Media

2 © comScore, Inc. Proprietary and Confidential. Cross Media, what does that mean?

3 © comScore, Inc. Proprietary and Confidential. Agenda – Meet the new TV audience  Changing the angle of vision: Cross platform as connected channels, and behaviors  Cord cutting and connected devices

4 © comScore, Inc. Proprietary and Confidential. How the new TV audience tunes in: by platform

5 © comScore, Inc. Proprietary and Confidential. Platform viewing by age:

6 © comScore, Inc. Proprietary and Confidential. This is not a platform war: Drama 42% Q24. For each type of show, please select whether you prefer to see it Online or on TV. Base sizes: Both TV/Online= 502 News/ Information 51% Reality TV 45% TV Online Comedy 43% No preference Sports 51% Celebrity/ Entertainment 47% Lifestyle/ Home 51%

7 © comScore, Inc. Proprietary and Confidential. The balancing act, instead, is between: Freedom in space and time vs timeliness and quality Overall viewing experience 65% View the show as soon as it is released 71% Picture Quality 77% Interference from commercials – 64% Watch the show on my own time – 79% Watch the show wherever I want – 80% Ability to stop and play the show when I want – 73% Overall convenience – 65% Sound Quality 75% Q23. We would now like to compare the viewing of original shows Online and on TV. For each attribute below, please select whether Online or TV is better. Base sizes: Both TV/Online= 502 Online TV Ability to easily find what I want to watch – 63% Ability to discover programs that are relevant to me – 61%

8 © comScore, Inc. Proprietary and Confidential. TV Only viewers compared with Cross Platform Viewers

9 © comScore, Inc. Proprietary and Confidential. Missed episodes and convenience – not ad avoidance – were the main reasons for watching TV online among Cross Platform viewers Q12. What are the reasons why you like to watch Original TV shows online? Check all that apply. Base sizes: Total=617 Online Only= 115 Both TV/Online= 502

10 © comScore, Inc. Proprietary and Confidential. For DVR/TiVo viewers, time shifting was for main motive… for online and VOD viewers, watching on one’s own schedule was the key motive Q6. What are the main reasons why you watch Video On Demand and DVR/TiVo and Online? Check all that apply. Reasons for watching VOD or DVR/TiVO or Online Base sizes: Total= 1007 TV Only= 527 Online Only= 97 Both TV/Online= 383 A A ABAB

11 © comScore, Inc. Proprietary and Confidential. How the audiences for original TV programming tune in: live vs time shifted Which one of the following best describes how you typically watch original TV series?

12 © comScore, Inc. Proprietary and Confidential. What this looks like across age groups: Which one of the following best describes how you typically watch original TV series?

13 © comScore, Inc. Proprietary and Confidential. Base size: Total= 2054 Q5. What percent of the time do you use the following methods to watch original TV series? Live and time shifted viewing by time spent

14 © comScore, Inc. Proprietary and Confidential. Ways of viewing are also changing…and can drive discovery mid season

15 © comScore, Inc. Proprietary and Confidential.  The new TV audience – Changing the angle of vision: Cross platform as connected channels, and behaviors  Cord cutting and connected devices

16 © comScore, Inc. Proprietary and Confidential. "Numerous small things connected together generate enormous power." Kevin Kelly Q25. Through which of the following methods did you hear about your favorite original TV show? Check all that apply. Base sizes: Total= 2053 TV Only= 1456 Online Only= 115 Both TV/Online= 502 Sources for hearing about TV shows

17 © comScore, Inc. Proprietary and Confidential. Online discovery can even drive TV viewing Q28. After you first watched your favorite show online, did you continue to watch it online or on TV, or both? Channel used to continue watching shows that were first discovered Online Base sizes: Total= 760 TV Only= 255 Online Only= 103 Both TV/Online= 402

18 © comScore, Inc. Proprietary and Confidential. Online discovery is impactful for all kinds of viewers -whether they watch online or not Q27. If you had not seen your favorite show online first, do you think you would have discovered that show on TV? Total Yes, I would have discovered it on TV, if I had not first seen it online 67% No, I would not have discovered it on TV and prob. missed the show 33% TV Only [A] 80%20% Online Only [B] 47%53% Both TV/Online [C] 64%36% Question posed: If you had not seen your favorite show online first, do you think you would have discovered that show on TV? Base sizes: Total= 760 TV Only= 255 Online Only= 103 Both TV/Online= 402

19 © comScore, Inc. Proprietary and Confidential.  The new TV audience  The financial benefits of cross platform – Cord cutting and connected devices

20 © comScore, Inc. Proprietary and Confidential. Devices. Which, if any, of these devices do you own ? Base sizes: Total= 2053 TV Only= 1456 Online Only= 115 Both TV/Online= 502 Which, if any, of these devices do you own ? Connected Devices – a growing demographic

21 © comScore, Inc. Proprietary and Confidential. Devices. Which, if any, of these devices do you own ? Base sizes: Total= 2053 TV Only= 1456 Online Only= 115 Both TV/Online= 502 Which, if any, of these devices do you own ? Connected Devices – a growing demographic

22 © comScore, Inc. Proprietary and Confidential. Connected Devices – still subscribe to premium channels Base sizes: Total= 2053 TV Only= 1456 Online Only= 115 Both TV/Online= 502 Which of the following premium channels do you subscribe to? Devices. Which, if any, of these devices do you own ? PremChannel. Which of the following premium channels do you subscribe to ?

23 © comScore, Inc. Proprietary and Confidential. In closing  TV remains the platform of choice, but audiences are increasingly connected and platform agnostic in their discovery and behavior around original TV content  Convenience and catch-up – not ad avoidance – are the key motivators of cross platform viewing – We are leaving money on the table when it comes to advertising against original TV online  In a world with connected devices… content is still king