1. On-Demand vs Virtual Neighborhoods An Analysis of the Impact of On- Demand Media on Radio Listening 2005

2. Percent of U.S. Population 12+ Who Own/Use On-Demand Devices/Media Satellite TV 25% Computer DVD recorder 21% Portable DVD player 19% Stand-alone DVD recorder 16% High-definition TV (HDTV) 10% Video on Demand (watched last month) 10% MP3 audio player (other than iPod) 8% TiVo/DVR 6% iPod 6% Hand-held wireless e-mail device 3% How Much of America is On Demand Source: Borrell Associates, April 2005. As for satellite radio….it didn’t get enough response to make the chart.

3. Subscribers Aren’t Always Listeners  Only half of one percent of all adults in 87 markets representing a collective adult population of more than 137 million listen to satellite radio.  Only 571 adults (age 18+) of the 117,737 respondents said they listened to satellite radio at least once in the past seven days.  “We were surprised at how little market penetration has been achieved by satellite radio.”  The largest number of adults attracted – 76,000 – was in New York City, which is a market of more than 14 million adults. The penetration in New York City was just one half of one percent.  Satellite [radio] only pulled one percent or more of the adults in just six markets and in no market did it attract two percent. Bob Jordan, President The Media Audit, May 2005 XM and Sirius may claim over 5 million subscribers between them, but…

4. What about iPods and MP3 Players?

5. Agree or disagree: “In the future, you will continue to listen to radio as much as you do now despite increasing advancements in technology.” Vast Majority Say Time with Radio Won’t Change Despite Technology Advancements Source: Arbitron/Edison Media Research, “Internet and Multimedia 2005: The On-Demand Media Consumer.” Base – Total Population 12+

6. Source: Arbitron/Edison Media Research, “Internet and Multimedia 2005: The On-Demand Media Consumer.” Vast Majority Say Time with Radio Won’t Change Despite Technology Advancements “In the future, you will continue to listen to radio as much as you do now despite increasing advancements in technology.” % Agreeing

7. Those who use on-demand audio devices/services spend slightly less time listening to traditional radio compared to the average. Total Time Spent Listening to Traditional Radio Source: Arbitron/Edison Media Research, “Internet and Multimedia 2005: The On-Demand Media Consumer.” Base – Total Population 12+ The Impact of iPods/MP3s is Negligible

8. Those who use on-demand audio devices/services spend slightly less time listening to traditional radio compared to the average. Total Time Spent Listening to Traditional Radio Source: Arbitron/Edison Media Research, “Internet and Multimedia 2005: The On-Demand Media Consumer.” The Impact of iPods/MP3s is Negligible, Across All Ages

9. It is especially true in Los Angeles, where post-iPod/MP3 time-spent-listening to radio shows no change or increases.

10. Source: Arbitron, Fall 2001-Fall 2004, Los Angeles Metro, Monday-Sunday 6am-mid. Daily Time Spent Listening Total 2001200220032004 % Change 2001 vs. 2004 Persons 12+ 3:003:083:023:000% Teens2:062:10 2:082% Adults 18-34 3:043:133:04 0% Adults 25-54 3:083:213:10 1% Post Satellite Radio/iPod Radio Listening Trends in Los Angeles

11. Source: Arbitron, Fall 2001-Fall 2004, Los Angeles Metro, Monday-Sunday 6am-mid. Daily Time Spent Listening In Car 2001200220032004 % Change 2001 vs. 2004 Persons 12+ 1:08 1:10 3% Teens0:36 0:380:4012% Adults 18-34 1:061:08 1:106% Adults 25-54 1:16 0% Post Satellite Radio/iPod Radio Listening Trends in Los Angeles

12. Lure of New iPods/MP3 Players Wears Off  For new owners of iPods and MP3 digital music players, use is extremely high and their time spent with traditional radio plummets, especially among those under age 24. However, as time passes, their time spent with radio begins to increase.  25% of the respondents who owned digital music players more than six months are listening to traditional radio more than they were three months ago and only 8% of this group are listening less. Source: Bridge Ratings Market Study: Digital Music Players vs. Radio TSL, 3000 radio listeners in Los Angeles, Boston, Phoenix, Ventura, and Chicago, released May 2005. As is usually the case with most “new toys”, users go from lavishing attention on them, to facing the reality of the daily time constraints of living their lives.

13. Even Apple Touts Radio  The iPod is for young audiophiles who want every song they like readily available in their pocket or purse, says Bob Borchers, senior director-iPod auto integration for Apple.  Borchers says Apple does not consider satellite radio a competitor. “Sometimes you want to listen to other people’s music,” he says. “And radio is a great way to discover new music.” Source: Tom Murphy in WardsAuto.com, May 20 2005

14. The fact is… RADIO is the most possible of media in our daily lives. This is how people are spending at least 33% their media time every day. Are you using it to your best advantage? Are YOU in the Neighborhood? Source: Veronis Suhler Stevenson 2004 Communications Industry Forecast, released August 2, 2004