1. Scott L. Brown Vice President Of Marketing & Technology TVB Media Technology Panel New Technology and Measurement Challenges

2. Converging Mediums Traditional television  Passive - viewer impressions  Creates mass awareness Internet  Interactive – click streams  Facilitates targeted sale completion Interactive television (ITV)  TV – powerful mass medium  Internet – powerful information source  Effectiveness as a measure

3. New Terms Stickiness Click through rates Frequency Session Behavioral profiling Cost per click Walled gardens Enhanced TV Individualized TV

4. Technology Impact PCTV Personal Video Recorders Digital Television Convergence Streaming Internet Interactive TV Ecommerce PPV, NVOD, VOD

5. Broadcast Networks Cable Networks Syndicators Stations Microsoft GI S/A Zenith Sun JavaTV Geocast OpenTV ReplayTV TiVo Panasonic Sony New Model and New Players For Television Equipment Manufacturers Software, Platforms & Processes Content Providers

6. Consumer Impact Viewer as a programmer Dynamic video server in the home Ratings – Program, Commercial … ? Back channel – rich data opportunity Interactive TV - Targeted marketing, transaction based, response oriented All in one devices

7. The Road Ahead Is Filled With Change Filled With Change

8. Analog TV DBS Advanced Set Tops PVR’s Digital Set Tops PCTV DTVInteractivity Nielsen Measurement Solutions HardwareApplications SoftwareApplications

9. Drivers For A New System 1.TV content becoming more complex 2.Further fragmentation with new sources 3.Interactivity growth in stair-step fashion 4.CE manufacturers impact TV marketplace Primary - Apply codes to television content Backup - Utilize signatures/fingerprints Backup - Utilize signatures/fingerprints Secondary - Software engines/applications Our Approach

10. First DTV Measurement Approach Advanced NMR-built device for MKII and A/P  Audio correlation, PSIP reader  Digital data packet reader  Device is in system testing Sample Audio Correlate Avail. Audio Sources ID Channel Feed PCTV tuner

11. A/P Measurement Techniques Broadcast Networks Cable Networks Syndicators Stations Applying codes to television content at distribution Video Codes Audio Codes Every program carries an identifying code

12. Strategic Relationships Nielsen technology relationships  DirecTV  Echostar  ReplayTV  TiVo  Metabyte  ACTV  And more …. Primary measurement Definitive agreements

13. Software Measurement Engines API development Porting to CE devices Advanced capability set New data elements New reporting elements Utilizing CE relationships for: 1) Advanced television 2) Internet 3) ITV 4) Digital Set tops

14. A/P Passive Measurement Utilizing Fingerprint information for television content - Audio Signature – zero-crossing algorithm - Video Signature – pixel contrast sampling Additional crediting method Physical architecture useful for verification and reporting of coverage

15. A/P Distribution Audio/Video Encode Broadcast/Cable Net 198 09/11/97 12:32:04 New A/P Meter New Monitoring Site 198 09/11/99 12:32:04 Station or Cable System Satellite Uplink

16. Near Future – Interactive DTV

17. Exciting New Stuff! The TV Lab Convergence Panel Extended Home TBA

18. Is Commercial Television At An End? “The New Technology from TiVo and ReplayTV provides the ultimate in television convenience. It will also spy on you, destroy prime time and shatter the power of the mass market.”NYT 8/13/2000 “OR NOT” NMR 8/17/2000 NationalTV Lab

19. Convergence Panel Separate 200 home/500 person PM equipped panel with NetRatings measurement  100+ homes already installed  Measure TV and internet usage  Identifies cross marketing opportunities  Early gauge for building media plans

20. Extended Home Measure offline TV usage in primary dwelling and vacation home or college housing  Sample of 24 total homes  Learn about opportunities, variables, and barriers

21. Transitional Strategy Nielsen as the bedrock Information for new programming, new marketing, new technologies Brand power – content kings reaching for new opportunities, new revenue streams, etc. Partnering & alliances

22. NMR Vision New Media Panels Interactive Panels Data Aggregation Assess impact and uses of new technology Define potential new business models/currencies Validate data captured by new tech players Partnerships Value added new media services