A confederation of 10 provinces Two founding European ancestries - England and France - hence two official languages and two parallel media structures Multi-cultural community, with some of the highest concentrations of ethnic diversity in the world Welcome to Canada! Bienvenue au Canada!

33 million people 40 TV markets 13.3 million TV households Source: CDN - BBM Canada – Jan ‘11 The Canadian Market

$14.1 billion total advertising market $3.3 billion is TV $99 - per capita TV ad spend Source: TVB Canada – Net Advertising Volume 2010 Total Advertising Revenue

Top TV Markets in North America number of people aged 2+  Toronto is the 5th largest market in North America Source: Canadian- BBM Canada Fall 2010,US-Nielsen Media Research, January 2011, Population estimates in millions

Top 10 Canadian TV Markets Source: BBM Canada Fall 2010

Dramatic Population Concentration The top 10 markets represent 75% of the total population This concentrated population distribution has lead to exclusively market-specific television planning and execution  National ratings are not utilized as they would not accurately reflect Top 10 vs. minor market deliveries  Given the importance of each major market, it is imperative to ensure delivery of planned support levels in each e.g. Toronto represents almost 22% of Canada’s total population Source: BBM Canada Fall 2010

Canadian Advertising Revenue Growth 2003 vs TV+9.2% Newspaper+3.5% Radio+3.3% Out-of-home+15.9% Internet+22.5% Source: TVB Canada, Net Ad Volume – CRTC/CNA/NMR/IAB Total Dollars ($)

Share of Canadian TV viewing Conventional/Broadcast vs. Specialty/Cable What We Watch Source: BBM Canada 2011 Viewers 2+, Mo-Su 2a-2a, 2011

Canadians’ Exposure to Ads on U.S. Stations In spite of almost 12.5% share of total Canadian viewing to U.S. stations, exposure to U.S.-placed ads is small  While much of the programming airing on Canadian stations is of U.S. origin, cable and satellite companies are required by law to substitute American broadcasts with Canadian signals (programs and commercial) when both stations are airing the same program/episode simultaneously (i.e. Simulcast)  Implemented to protect Canadian advertisers’ interests by ensuring that Canadians watch Canadian commercials  Not surprisingly, Canadian broadcasters strive to maximize simulcast opportunities Source: BBM Canada 2010

Canadian Television Viewing Patterns Average per capita viewing - Adults Television-watching hours per week Source: BBM Canada Aug-May * Different measurement systems cannot be directly compared. Canadians are watching more television today than they did 10 years ago

Average per Capita Weekly Viewing Hours (by demographic group) Source: BBM National PPM, September 2011

Television Technology Adoption 99% penetration of Canadian households 92% of homes have either cable or satellite 73% are digital 33% are HD-equipped Source:CDN – BBM Canada – Jan ’11 Media Stats – June ’ Media Technology Monitor (MTM)