SUBSCRIPTION TV The Plot Just Got Interesting…

STV Introduction 30% of The Australian Population spend more than 60% of their time watching STV. Current STV share of viewing in ALL Metro Homes is 21% and ALL Sydney Metro Home is 25%.* STV audience is growing Churn at record lows due to the introduction of The Digital Network launch of lower basic Foxtel Digital Package at $36.95 Increased share of viewing driven by exclusive content, both locally produced and international content. (Aust STV Share of viewing is amongst the highest in the world) Source: OzTAM, Nat Metro STV, 31/12/2006 – 31/03/2007, Total People S-S , share to all*

Source: OzTAM Establishment Survey Q Subscription TV Coverage Nearly one in every 3 (30%) Australians have STV Subscription TV has over 5.9 million potential viewers

OZTAM Panels People Meter Coverage STV viewing is reported within The Metro & Regional Panels. STV is also reported in its own panel that isolates STV HHs. (This panel delivers Total Viewer 000s for STV programming) FTA Channels are monitored but not measured in STV 000s Growth. ATR 4,800* HOMES 1,000 Subscription TV (640 Metro & 360 Regional) 3,000 Metro (750 Syd, 700 Mel, 600 Bri, 475 Ade, 475 Pth) 1,950 Regional (520 QLD, 430 N-NSW, 380 S- NSW, 430 VIC, 190 TAS) *Unduplicated – as there is some overlap across the Metro & Regional panels. Regional Subscription TV data available from #State by state penetration will be reflective of Metro & Regional Television coverage areas

Total Subscription TV Homes is approx 1.93m. 83% of subscribers live on The Eastern Seaboard. 27% of Subscribers live in Sydney and 20% in Melbourne. Metro audiences deliver approx 70% of impacts and Regional 30%. Digital homes now make up over 96% of total Foxtel & Austar Homes. 100% of Foxtel homes are digital. 37% of people that live in Sydney have STV. (100 National TARPS will delivery approx 113 TARPS in Sydney Metro) Source: NMR Panorama Jan – Dec ,000 STV HHs Who & Where are our STV subscribers? 1.13m STV HHs 591,000 STV HHs

Source – OzTAM All Metro Homes, All Regional Homes, 22/04/07 – 23/04/2007, S-S , Total People, Potential. 30% of All People across Australia have Subscription TV! 38% of People in Sydney have Subscription TV! Penetration (%) Subscription TV Penetration by Market Where do STV Subscribers Live?

27% of STV Subscribers live in Sydney 83% of STV Subscribers live in the Eastern states Source – NMR Panorama. January - December 2006, penetration %, Based on Total People 14+ Where do STV subscribers Live? Geographic Profile of Subscribers Penetration (%)

7,9 &10 5-City Metro Audience Decline past 11 years (all people) Source: 7, 9 & 10 5 City Metro ALL-TV Audience Share (Excl spill & other TV) All People – – Calendar Years 1995 – 2006., 2007 Jan-Mar 19.8 ALL-TV Share Point Loss

The Australian Landscape Seven, Nine, Ten, STV Share of All-TV (Excl. Spill) All People ( ) Source: ACNielsen (Calendar Year Su-Sa ), OzTam (Calendar year Su-Sa ) 2007 Jan - Mar, Share of All-TV Excl Spillage & Other. SBS & ABC Share lines not shown.

Audience Growth YOY (%) Source: OzTAM, All Metro Homes, Wks v 2006 (excluding Comm Games Wks in 2006), S-S , Projections, % Change, Share to All. Share (%) 13% Audience Growth – Total People STV’s Metro audience grew by over 13% in ‘07 v ‘06. STV was the only network besides SBS to increase its audience. In 2007 STV has attracted 21.4% of all viewing, and is currently the number 2 network.

STV - Greater Cut Through Less Commercial Content Source: FTA and W comparison of a Desperate Housewives episode, does not include channel or station promos Source: - W, 12/02/ :34-21:30; Xtreme Information – 7 Sydney, 13/02/2006, 20:30-21:30 On average, approximately 50% less commercial content Love My Way – FOX8 Desperate Housewives – Seven Episode Comparison vs

NMR Panorama, Jan – Dec 06. All raw counts 50+, indexed on Subscribers v Non-subscribers. ‘Renovation spend P12Mths Average week entertainment spend = spend on combined entertainment & leisure for example dining out, movies, retail shopping, sports gambling etc. Brand Savvy : Statement is ‘Strongly Agree’ car $$ 82% more likely to spend $50K+ on the next car 44% more likely to buy a car in N3M high tech 41% more likely to be quick to try new technology more entertainment more than twice as likely to spend $200+ p/wk on entertainment home appliances 27% more likely to purchase a home entertainment unit >$1500 communicators 40% more likely to have 3+ mobile phones in the home home focused 54% more likely to have spent $50K+ on renovations brand savvy 23% more likely to pay extra for brands children 50% more likely to have a food/ clothing purchase influenced by kids spenders twice as likely to spend $200+ per week on groceries STV - People Who Consume More drink alcohol 24% more likely to go out for a drink weekly

? Conclusion… So why would any advertiser under-invest or make a fta-only buy that concentrates media weight in non-stv households?