1. Radio and the Internet

2. Australian market  95% of Australians listen to the radio each week  Commercial radio commands 80% of the radio audience in Australia  TSL is over 18hrs 42mins per week (average)  Even longer in older demographics  Radio enjoys a 9% revenue share of the total pie  Double digit revenue growth year on year for the last 3+ years  95% of Australians listen to the radio each week  Commercial radio commands 80% of the radio audience in Australia  TSL is over 18hrs 42mins per week (average)  Even longer in older demographics  Radio enjoys a 9% revenue share of the total pie  Double digit revenue growth year on year for the last 3+ years Source: Nielsen Media Research, Radio Advisor, Survey 1-8 2005, Mon-Sun 5.30am-12MN, All people 10+

3. Australian media pie – 2005 CEASA Source: Commercial Economic Advisory Service (CEASA), Advertising Expenditure in Main Media, Jan-Dec 2005

4.  Commercial radio audience is growing, despite wide range of technology choices and competition for consumers time  Commercial radio had an 8% higher number of listeners in 2005 than in 2000  During breakfast, over 6.7 million people tuned into metropolitan commercial radio stations in 2005  Breakfast radio reach has remained steady at 21% over the past 5 years while breakfast TV reach has declined form 8% to 4% over the same time period  People spend on average 2hrs 38mins with commercial radio each day  Commercial radio audience is growing, despite wide range of technology choices and competition for consumers time  Commercial radio had an 8% higher number of listeners in 2005 than in 2000  During breakfast, over 6.7 million people tuned into metropolitan commercial radio stations in 2005  Breakfast radio reach has remained steady at 21% over the past 5 years while breakfast TV reach has declined form 8% to 4% over the same time period  People spend on average 2hrs 38mins with commercial radio each day Australian commercial radio today Source: Nielsen Media Research, Radio Advisor, Survey 1-8 2005 v 2004, Mon-Sun 5.30am-12MN and Mon-Fri 5.30am-9am, All people 10+ Source: Nielsen Media Research, Radio Advisor, Survey 1-8 2005, Mon-Sun 5.30am-12MN, All people 10+ Source: Nielsen Media Research, Radio Advisor, Survey 1-8 2005 v 2000, Mon-Sun 5.30am-12MN, All people 10+

5. Australian Radio Landscape  Radio remains a main media of choice among Australians  Over 50 million radio sets in Australia  Each household has on average 5.1 radios  99% of all cars have a radio  Radio still delivers  Real people providing entertainment and interaction  Sense of accompaniment  Up to date news and information  Opportunity to hear new music, discover new artists, keep up to date with charts  Personality, personal endorsement and affiliation  Radio remains a main media of choice among Australians  Over 50 million radio sets in Australia  Each household has on average 5.1 radios  99% of all cars have a radio  Radio still delivers  Real people providing entertainment and interaction  Sense of accompaniment  Up to date news and information  Opportunity to hear new music, discover new artists, keep up to date with charts  Personality, personal endorsement and affiliation Source: All Australian Listening Report, 2000

6. An online world - USA  A converging media world focuses on content based services that are engaging and on demand  Consumer attention and time is limited  Multi-mode, multi-device, multi-tasking  Trend towards mobile, personal technology  Information on consumer is key  A converging media world focuses on content based services that are engaging and on demand  Consumer attention and time is limited  Multi-mode, multi-device, multi-tasking  Trend towards mobile, personal technology  Information on consumer is key Source: The iPod Generation, The Knowledge Agency, 2004 Source: Price Waterhouse Coopers, The Rise of Lifestyle Media, Achieving Success in the Digital Era 2006

7. An online world - USA  Media consumers are demanding, unique and engaged:  Tailored advertising, promotions, and other relevant, valuable information  Access and manipulate content and services  More content and greater control  ‘On-demand’ technologies  Media consumers are demanding, unique and engaged:  Tailored advertising, promotions, and other relevant, valuable information  Access and manipulate content and services  More content and greater control  ‘On-demand’ technologies Source: The iPod Generation, The Knowledge Agency, 2004 Source: Price Waterhouse Coopers, The Rise of Lifestyle Media, Achieving Success in the Digital Era 2006

8.  Current operators have brand advantage, access to consumers at a mass level and rich content  Must help consumers maximise their limited time and attention to create a rich, personalized, and social media environment  Put consumers in control  Collect more accurate and scalable data about what they are doing, watching, and creating  Create platforms that connect with media seekers  Must get to know consumers intimately by engaging them in continual dialog  Knowledge will enable media companies to meet consumer needs and discover new revenue streams  Current operators have brand advantage, access to consumers at a mass level and rich content  Must help consumers maximise their limited time and attention to create a rich, personalized, and social media environment  Put consumers in control  Collect more accurate and scalable data about what they are doing, watching, and creating  Create platforms that connect with media seekers  Must get to know consumers intimately by engaging them in continual dialog  Knowledge will enable media companies to meet consumer needs and discover new revenue streams Source: Price Waterhouse Coopers, The Rise of Lifestyle Media, Achieving Success in the Digital Era Leverage brands to connect with consumers - USA

9. Media Outlook 2006 – 2010 - Australia  Radio continued to perform strongly in 2005, with growth of 6.6% in an increasingly competitive market  Rising listening times, new radio stations, and a strong overall ad market helped drive growth  Globally, radio revenue will increase from AUD$58.5 billion in 2005 to an estimated $77.1 billion in 2010, average 5.7% growth  In Australia, it is anticipated that commercial radio revenue will grow to AUD$1.1 billion in 2010, average 4.3% growth  Long time spent listening, new radio stations, and innovative content will help drive radio industry in Australia  Increased household penetration of Internet  Transition from dial-up to broadband and high speed internet  79.4% of households will have internet access by 2010  Radio continued to perform strongly in 2005, with growth of 6.6% in an increasingly competitive market  Rising listening times, new radio stations, and a strong overall ad market helped drive growth  Globally, radio revenue will increase from AUD$58.5 billion in 2005 to an estimated $77.1 billion in 2010, average 5.7% growth  In Australia, it is anticipated that commercial radio revenue will grow to AUD$1.1 billion in 2010, average 4.3% growth  Long time spent listening, new radio stations, and innovative content will help drive radio industry in Australia  Increased household penetration of Internet  Transition from dial-up to broadband and high speed internet  79.4% of households will have internet access by 2010 Source: PWC, Australia Entertainment & Media Outlook, 2006-2010

10.  Research conducted through Colmar Brunton Media Solutions shows strong demand for more information about new music and that listeners support a move to digital technology :  67% said commercial radio is their primary source of hearing new music  79% said they listen to commercial radio every week  75% would be very or quite interested in purchasing a digital radio priced within their budget (up from 68% in a similar survey undertaken in 2004)  84% of people 18-24 yrs said they would be very or quite interested in purchasing a digital radio priced within their budget (up from 80% in a similar survey undertaken in 2004)  Research conducted through Colmar Brunton Media Solutions shows strong demand for more information about new music and that listeners support a move to digital technology :  67% said commercial radio is their primary source of hearing new music  79% said they listen to commercial radio every week  75% would be very or quite interested in purchasing a digital radio priced within their budget (up from 68% in a similar survey undertaken in 2004)  84% of people 18-24 yrs said they would be very or quite interested in purchasing a digital radio priced within their budget (up from 80% in a similar survey undertaken in 2004) New Technology and Innovation - Australia Source: Colmar Brunton Media Solutions, Omnibus Study, February 2006

11. Where do they hear new music? - Australia Source: Colmar Brunton Media Solutions, Omnibus Study, February 2006

12.  Radio and online are the only media predicted to grow audience and revenue  Complementary rational & emotional benefits  Both ‘social connectivity’ media  Combined usage enhance brand interactions  67% have listened to radio when online  At any given time, 20% of users are listening to radio  57% checked something online after hearing it on radio  39% in response to an advertisement  Commercial Radio Australia is planning a radio and online effectiveness research study in development now  Due for release 2007  Radio and online are the only media predicted to grow audience and revenue  Complementary rational & emotional benefits  Both ‘social connectivity’ media  Combined usage enhance brand interactions  67% have listened to radio when online  At any given time, 20% of users are listening to radio  57% checked something online after hearing it on radio  39% in response to an advertisement  Commercial Radio Australia is planning a radio and online effectiveness research study in development now  Due for release 2007 Source: Using Radio with online – How radio and online combine to fulfll brand interactions IAB UK 2005 Radio and internet in combination - UK

13. Source: The Rise of Lifestyle Media: Achieving Success in the Digital Convergence Era, PWC 2006 People spend time with radio and internet - USA

14. Radio and internet usage - Australia  44% of people always listen to the radio on the way to work  58% of full time workers always listen to the radio on the way to work  33% of people who always listen to the radio on the way to work access the Internet weekday mornings  40% of people 25-39yrs and 36% of people 40-54yrs who always listen to the radio on the way to work access the Internet weekday mornings  20% of employers listen to the radio and access the Internet weekday mornings  44% of people always listen to the radio on the way to work  58% of full time workers always listen to the radio on the way to work  33% of people who always listen to the radio on the way to work access the Internet weekday mornings  40% of people 25-39yrs and 36% of people 40-54yrs who always listen to the radio on the way to work access the Internet weekday mornings  20% of employers listen to the radio and access the Internet weekday mornings Source: Nielsen Media Research, Panorama, Survey 5 2006 (July 2005 – June 2006), All People 14+

15. Radio and internet usage - Australia  Of all commercial radio listeners:  28% access the internet weekday mornings  27% access the internet weekday afternoons and early evening  26% access the internet weekday evenings  53% of people 18-24yrs listen to the radio and access the Internet weekday evenings  Of all commercial radio listeners:  28% access the internet weekday mornings  27% access the internet weekday afternoons and early evening  26% access the internet weekday evenings  53% of people 18-24yrs listen to the radio and access the Internet weekday evenings Source: Nielsen Media Research, Panorama, Survey 5 2006 (July 2005 – June 2006), All People 14+

16. Radio and internet usage  42% of commercial radio listeners access the internet daily  Of all commercial radio listeners  45% search for information on products online  33% search for information on a company online The Internet has not had as negative effect on radio listenership as it has with other media -  17% of people 10-17yrs listen to the radio online  Since the Internet..  14% of people say they watch TV less often  10% of people say they read print newspapers and magazines less often  Only 8% of people say they listen to the radio less often  42% of commercial radio listeners access the internet daily  Of all commercial radio listeners  45% search for information on products online  33% search for information on a company online The Internet has not had as negative effect on radio listenership as it has with other media -  17% of people 10-17yrs listen to the radio online  Since the Internet..  14% of people say they watch TV less often  10% of people say they read print newspapers and magazines less often  Only 8% of people say they listen to the radio less often Source: Nielsen Media Research, Panorama, Survey 5 2006 (July 2005 – June 2006), All People 14+

17. Advertising Effectiveness Study - Australia  Commercial radio was proven to increase web hits for clients with a URL call to action in their creative  Radio creative alone featured a website call to action  Web hits in the test market where radio was present jumped over 60% post launch of the media activity  Commercial radio was proven to increase web hits for clients with a URL call to action in their creative  Radio creative alone featured a website call to action  Web hits in the test market where radio was present jumped over 60% post launch of the media activity Source: Radio’s Advantage, Advertising Effectiveness Study, Commercial Radio Australia, 2006 61%

18. Industry Brand Campaign Case Study - Australia  An example of the power of radio and online in combination  Web visits to commercialradio.com.au increase up to 60% on the day of new brand campaign commercial launches  Commercials feature a call to action on air  An example of the power of radio and online in combination  Web visits to commercialradio.com.au increase up to 60% on the day of new brand campaign commercial launches  Commercials feature a call to action on air Source: Commercial Radio Australia, Brand Campaign, 2005- 2006

19. Internet take up - Australia  Broadband subscribers per 100 inhabitants, by technology, December 2005 (Australia)  DSL 10.8%, Cable 2.6% Other 0.4% Total13.8%  Subscribers 2.7mil  14% broadband internet penetration in Australia  Broadband subscribers per 100 inhabitants, 2001-2005 (Australia)  2001 0.9%  2002 1.8%  2003 3.5%  2004 7.7%  2005 13.8%  Broadband subscribers per 100 inhabitants, by technology, December 2005 (Australia)  DSL 10.8%, Cable 2.6% Other 0.4% Total13.8%  Subscribers 2.7mil  14% broadband internet penetration in Australia  Broadband subscribers per 100 inhabitants, 2001-2005 (Australia)  2001 0.9%  2002 1.8%  2003 3.5%  2004 7.7%  2005 13.8% Source: OECD Broadband Statistic, April 11, 2006 update

20. People listen to radio for company and to hear new music - USA Source: Clark Chapman Q: Which is the most important reason for listening to your radio?  iPods for control over music choices  Radio for company and new music

21. Reaching different situations and occasions - USA Source: Clark Chapman Q: When do you tend to listen to your Radio?  Radio continues to be a valuable accompaniment to daily life  Reaching more situations and occasions

22. Variety, Spontaneity & Human Company - USA Source: Clark Chapman Q: Reason for choosing radio?  Consumers using iPods and radio in different ways and at different times, enabling them to fulfil very different roles in modern lifestyles  60% said 'hearing a band on the radio' was their prompt to loading new content onto their iPods, making radio like a shop window for new music and content

23. Radio in good shape - USA  Radio well positioned to address intense competition for consumers’ attention  Radio and the internet are the only media predicted to grow revenue  Radio has demonstrated its ability to constantly evolve and reinvent itself as a fresh medium to its listeners by positioning itself alongside new technologies  Recency and portability of radio plays a strong complimentary role to other media  Listeners can receive messages and interact through multiple channels  SMS/Telephone, pod casting, online  An integrated, multi-media strategy utilising radio engages consumers on multiple levels for further reach and frequency and maximum return on investment for a campaign  Radio well positioned to address intense competition for consumers’ attention  Radio and the internet are the only media predicted to grow revenue  Radio has demonstrated its ability to constantly evolve and reinvent itself as a fresh medium to its listeners by positioning itself alongside new technologies  Recency and portability of radio plays a strong complimentary role to other media  Listeners can receive messages and interact through multiple channels  SMS/Telephone, pod casting, online  An integrated, multi-media strategy utilising radio engages consumers on multiple levels for further reach and frequency and maximum return on investment for a campaign Source: The iPod Generation, The Knowledge Agency, 2004

24. What research is available? Panorama  Single source lifestyle, attitudinal & product/media usage survey 10 x per year  MP3 device questions currently part of 6 month database  Nielsen Media Research Panorama Survey #3, 6mth database, 14+, SMBAP:  “Do you own an MP3 device?”  “Do you intend to purchase an MP3 device in the next 12 months?”  “How much time do you spend with your MP3 device each week?”  “Have you downloaded a podcast?” Panorama  Single source lifestyle, attitudinal & product/media usage survey 10 x per year  MP3 device questions currently part of 6 month database  Nielsen Media Research Panorama Survey #3, 6mth database, 14+, SMBAP:  “Do you own an MP3 device?”  “Do you intend to purchase an MP3 device in the next 12 months?”  “How much time do you spend with your MP3 device each week?”  “Have you downloaded a podcast?”

25. What research is available?  Colmar Brunton Media Solutions Omnibus Study, February 2006 www.commercialradio.com.au  The iPod Generation, The Knowledge Agency, 2004 www.ofcom.org.uk  Price Waterhouse Coopers, The Rise of Lifestyle Media, Achieving Success in the Digital Era 2006 www.pwc.com  Price Waterhouse Coopers, Australia Entertainment & Media Outlook, 2006-2010 www.pwcglobal.com/au/  Colmar Brunton Media Solutions Omnibus Study, February 2006 www.commercialradio.com.au  The iPod Generation, The Knowledge Agency, 2004 www.ofcom.org.uk  Price Waterhouse Coopers, The Rise of Lifestyle Media, Achieving Success in the Digital Era 2006 www.pwc.com  Price Waterhouse Coopers, Australia Entertainment & Media Outlook, 2006-2010 www.pwcglobal.com/au/

26. What research is available?  Using Radio with online – How radio and online combine to fulfll brand interactions IAB UK 2005 www.iabuk.net  Radio’s Advantage, Advertising Effectiveness Study, Commercial Radio Australia, 2006 www.commercialradio.com.au  OECD Broadband Statistic 2006 update www.oecd.org  Using Radio with online – How radio and online combine to fulfll brand interactions IAB UK 2005 www.iabuk.net  Radio’s Advantage, Advertising Effectiveness Study, Commercial Radio Australia, 2006 www.commercialradio.com.au  OECD Broadband Statistic 2006 update www.oecd.org

27. Common Terminology  Podcast  The method of distributing multimedia files, such as audio or video programs, over the Internet for playback on mobile devices and personal computers  Download  Receiving electronic data from a remote system  MP3 File  An audio compression technology that compresses CD-quality sound while retaining most of the original quality  MP3 files are played via media player software in the computer or on handheld players  MP3 Player  Digital music player that supports the MP3 format  Podcast  The method of distributing multimedia files, such as audio or video programs, over the Internet for playback on mobile devices and personal computers  Download  Receiving electronic data from a remote system  MP3 File  An audio compression technology that compresses CD-quality sound while retaining most of the original quality  MP3 files are played via media player software in the computer or on handheld players  MP3 Player  Digital music player that supports the MP3 format Source: Wikipedia and Computing Dictionary