THE CONNECTED EFFECT CHANGING AN ENTIRE INDUSTRY SCOTT L BROWN SVP, TECHNOLOGY & STRATEGIC RELATIONS

IS YOUR SMARTPHONE MORE IMPORTANT THAN YOUR WALLET? How many have your phone on …

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 3 …THEN HERE ARE ALL THE THINGS YOU CAN DO CONSUMER IMAGE IS ILLUSTRATIVE EXAMPLE ONLY

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 4 THE INTERNET AND THE CLOUD No acceptable consumer device today comes without always on connectivity

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 5 INDUSTRY TRANSFORMERS 1946, ENIAC (the world’s first computer) could perform 385 multiplications per sec versus the iPhone 4 perform at 2,000,000,000 instructions per secENIAC

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 66 CONNECTED DEVICES are outpacing the global population 7 BN IN 2013 IF THIS TREND CONTINUES... SOURCE: GSMA, FEBRUARY 2012

Copyright ©2012 The Nielsen Company. Confidential and proprietary BN 7 CONNECTED DEVICES are outpacing the global population BY 2020 SOURCE: ORACLE/CISCO

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 8 MOBILE IS THE “CONSTANT COMPANION” % of total time by day part Source: Nielsen People Meter, Nielsen Netview, Nielsen Mobile Mediaview, July 2012 Distribution of Adult Time Spent/Platform by Hour in the U.S. 51% of online usage occurs during the working hours of 9am to 5pm 53% of TV usage occurs during prime time Mobile usage is relatively flat during throughout waking hours

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 9 GROWTH AND TRANSITION TO MOBILE IS REAL

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 10 NIELSEN MEASUREMENT – EVOLVING Becoming a Text Book Use Case Is Not Our Goal Miami Peoria Chicago Reno Statistical and projectable Opt-in Panels

The New Model For Measurement Statistical and projectable Opt-in Panels Volume and Breath of Internet Exposure & GRP’s, Reach & Frequency Impressions Ratings

TV Originated Content Native Digital Content ONE ENCODING PROCESS COMPARABLE RATING TV Ratings Digital Ratings Cross Platform ONE CLIENT-SIDE IMPLEMENTATION BIG DATA ENABLED MEASUREMENT GOLD STANDARD PROCESS Census Measurement for Digital Platforms

Digital Measurement Changes Changed definition of TV Household so that broadband is now a measurable source Introduced OCR online video ad impressions via tags and received MRC accreditation – Facebook aggregate demos – Experian consumer classification data X-Platform from NPR and OCR Digital Program Ratings to launch in September for online program impressions Digital ads with Nielsen tag NPM panel Online Ratings TV ads with Nielsen Audio Watermark

Tablets and Mobile New mobile SDK that applies identifiers/metadata to content ID3 tag and watermarks Players to be enabled with Nielsen app that captures metadata for crediting Census based approach Reporting commences Sept 2014 Embedded Nielsen SDK

CES 2014 LAS VEGAS

Advanced Display Technology 4K (Ultra HD) OLED Getting Connected Beyond TV Advances and the Industrial Internet 4 th Screen and Health Internet of Things Cloud Service, NFC, Bluetooth Smart, MEMS Wearable Technology and Virtual Reality Dolby game changer TV control and new interfaces Connected homes and home automation Mobile everything Topics

4K – The Likely Theme of 2014 CES 105 inch 21 x 9 Curved Screens from LG and Samsung 3840 x 2160 pixels and top line sets are 5120 x 2160

DISPLAY INNOVATION – 4K 4k or Ultra HD Price point at $5k Very little 4K content available Bandwidth intense 4 times the resolution of 1080P WiFi motion- and-voice-control Web browser, app and 3D Cloud supported Display Technology LG Samsung Sony Hisense Sharp Toshiba DevelopmentsConsumer AcceptanceManufacturers

DISPLAY INNOVATION - OLED Organic Light Emitting Diode (OLED) OLED is 1080P and content ready Expensive Deep blacks, rich color 0.16” thick, fast response rate WiFi, motion- and-voice-control Web browser and apps Cloud supported Display Technology LG Samsung Sony Hisense DevelopmentsConsumer AcceptanceManufacturers

DISPLAY INNOVATION – OLED & 4K OLED & 4K Price – No price point Very little 4K content available and it requires a great deal of bandwidth for transport 4 times 1080P or 2160P, vivid colors Optimal picture res available WiFi “connected”, motion-and- voice-Web Cloud supported Sony Panasonic Display Technology DevelopmentsConsumer AcceptanceManufacturers

DISPLAY INNOVATION – Connected HDTV LCD, LED & Plasma Online and brick and mortar sales have been solid Chinese lower priced products entering the market and eroding several points of margin P display resolution 2.Best bargain 3.Add on kits WiFi kits 4.Some cloud support and 3D 5.Plasma dying out (again) Display Technology All DevelopmentsConsumer AcceptanceManufacturers

Dolby HDR Technology Concentrating on Contrast Ratio and Color Dolby new HDR technology (high dynamic range video improvement) … may improve video as much as 4K and OLED Should be on display at LG booth

Display Technology Market Realities Goodbye Panasonic – exiting the Plasma business while offering the three highest ranked TV sets in terms of performance. The “enemy of the best …” Sony a pioneer in display technology and 4K but struggling with a 40% reduction in 2013 revenues Sharp – the leader in ultra large LED … may be sold off or acquired by a fellow OEM The flat panel business as a whole was flat in 2013 per the CEA and is typically a 2-3% margin business based on volume Samsung and LG are the leaders today. Tomorrow will be ….

Connectivity Bluetooth – resurrected and now highly energy efficient for transport NFC – easy simple data transfer technology MEMS – miniature sensors - revolutionary microelectromechanical systems HDMI 2.0 – don’t buy 4K without it

Wearable Technology Apple iWatch started much of the hype Watch will mate with your smartphone Health business enabled by Bluetooh Smart and Nike Fuelbands and Fitbit have become household names

Technology Everywhere Wearable HD Camera Keychain HD Camera

Control Over TV TTV Gesture/Voice/Retinal Control Or Use a Smartphone or Tablet TV with Camera and Facial Recognition

Consumer Interfaces Expand Vuzix Smart Glasses M100 Connects users to the cloud with color display, GPS, and camera Google Android O/S Linked to smartphone Google Glass Virtual display of content Internet-connected glasses and digital information is displayed in front of your eyes Human Interface Growth Via The Smartphone

Virtual Reality Becomes Real Virtual Reality - Occulous Rift and full 3D user effect Singular experience but a gamers paradise

Tablets – Personal Screens Low cost tablet producers are flooding the market and driving prices down Digital content sales and rental becoming more relevant than the hardware Likely to become a loss leader for the sake of digital sales and apps

Tablet & Desktop Convertible Increasingly consumers want to have a choice with O/S and seek a value add with multi-use devices Dual boot O/S – Android and Windows Convertible – desktop to laptop Some with detachable keyboard and touch display as a tablet PC’s continue under pressure with growth only in the business sector

Flexible Phone Display Youm - bendable OLED screen uses thin plastic instead of glass Curved displays will be a hot item in 2014

Phablet (phone and tablet) Huawei Ascent Mate 6.1 inch Pixel density of 361ppi 1.8 GHz quad-core processor 4000mAh battery 9.6mm thick body Phone/Tablet Functions Co-joined

Samsung Galaxy Playpad Handles phones 4 to 6.3 inches with Jellybean O/S and up

Ultra Books In, Netbooks Out The device type that Intel and Microsoft hope to see re-establish the PC market. Lightweight, touch enabled and a powerhouse

Connected Home Reality

Home Automation - Wifi Bridge & Bulbs Home automation with remote control lights and locks DIY security systems Controlling WiFi lights and effects via your smartphone or tablet

Self Driving Cars and the 4 th Screen A tangible safety improvement that will save lives – collision avoidance Cars loaded with terrain guidance and radar systems that do work Ford C-MAX Solar Energi Concept

Auto and Entertainment CEA forecasts anticipate that sales of factory-installed vehicle technologies will grow by about 20 percent in 2014 to reach $11 billion The 2014 CES show, auto accounts for 10% of the floor display Google becoming a major player, Gracenote, many more The smartphone and vehicle mirroring will be key

CES 2014 – Measuring Mobile Is A Must Hi-Quality Mobile & Home Display Technology Machine Intelligence & Big Data Predictive Modelling Robotics Hybrid and Convertible Devices Virtual Reality Wearable Computing

So In Closing Which Picture Can You Relate To? The Good Old Days The 80’s Dreamer The Charming Rogue

Thanks for the Applause!