1. VOD - The wild west of audience measurement ACB Conference - 7 th July 2009

3. In May 2009, The Inbetweeners was viewed 2.5 million times Making it our fastest downloaded PC VOD programme Source – C4 Business Objects May 2009

4. Tearing up the research rule book and putting VOD into context Source – BARB and Business Objects. The Inbetweeners – Series 2 Average

5. The reality is Inbetweeners is C4’s best example of an extreme VOD “outlier” Channel 4’s top 10 progs in MayOn-line views in May Shameless651,000 Desperate Housewives601,000 Embarrassing Bodies301,000 Madeline was here: Cutting Edge 46,000 Come Dine With Me554,000 Ramsay’s Kitchen Nightmares266,000 The Secret Millionaire 76,000 Kirstie’s Homemade Home 93,000 Hollyoaks782,000 Gok’s Fashion Fix202,000 Top 3 PC VOD = Drama Bottom 3 PC VOD = Factual Source – C4 Business Objects May 2009

6. General insights about VOD behaviour based on actual data Research needs to be sensitive to the genre mix and preferred viewing environment On demand viewing is driven by a set of key genres Drama, comedy, entertaining factual

7. Importance of Drama 31% of PC VOD downloads in May 2009 were drama 34% of TV VOD transactions in May 2009 were drama BARB data shows that drama is the most time shifted genre in homes with a PVR –38% of drama viewing is timeshifted –Increased proportion year on year Source – BARB and Business Objects.

8. Source – BARB Sky + homes, individuals, all day % Drama is the most time shifted genre in Sky+ homes and continues to increase

9. General insights about VOD behaviour based on actual data Research needs to be sensitive to the genre mix and preferred viewing environment On demand viewing is driven by a set of key genres Drama, comedy, entertaining factual Programming is skewed toward young and upmarket content, although genre plays more of an influence Consumption is driven by recency

10. Importance of Recency PVR trends -2008: 49% of time shifted viewing is VOSDAL -Over time proportion of VOSDAL is increasing -TV VOD trends -Early BARB data shows 50% of TV VOD viewing (Virgin) is within 24 hours of broadcast -72% of C4 TV VOD (Virgin) is “Catch up”

11. Source – Essential Research November 2008 On-line VOD users and the importance of recency

12. TV (Virgin) VOD users and the importance of recency Source – Essential Research November 2008

13. “Always scheduled TV first” Linear schedule “I mostly use the V Plus box I have. I think that may be why I sometimes do not need the catch up - as long as I remember to record something.” PVR “[If miss a programme] Probably watch it on Catch Up TV if it is on there. If not I would go on the internet to see if i can watch it there” Catch Up “TV Choice: when I can't find any programs to watch on normal TV and I haven't got any programs recorded on the V+” TV Choice Online VOD “If a series is missed completely, I’ll download off the internet, but that does not happen often having V+ and catch up” Viewing hierarchy for the majority of Virgin customers

14. Key Points Programmes like The Inbetweeners are excellent examples of VOD behaviour at its most extreme. The fusing of highly personal content aimed at a very specific audience The general direction of travel for VOD consumption is driven by key genres rather than particular demographics as penetration grows Recency and catch up are the main drivers of VOD consumption VOD plays a role in the mix but is substitutable with other digital technologies