111 PTPA May 2009 Programming in Digital Era David J. LeRoy Chad Davis With commentary from Craig Reed Multicasting in a 4 Screen World.

PTPA May 2009111

Programming in Digital Era

David J. LeRoyChad Davis

With commentary fromCraig Reed

Multicasting in a 4 Screen World

PTPA May 2009222

Things That Do Not Change

The pubTV audience today is like the audience of 50 years ago!

Cume or reach Rating or GRPs Mechanics of Dayparts

Page 3 Confidential & ProprietaryCopyright © 2007 The Nielsen Company

Median Age of Prime Time TV Viewers1

0

10 11

21

39 4

4

44 4

8

48

48 50 5

3 58

58

58 61 63

63 6

6

2

12

22

32

42

52

62

72

NIC

K

TO

ON

DS

NY

MT

V

DIS

C

ES

PN

FO

X A

ffili

ate

s

AB

C A

ffili

ate

s

NB

C A

ffili

ate

s

NG

C

HIS

T

CB

S A

ffili

ate

s

CN

BC

HL

N

MS

NB

C

PB

S A

ffili

ate

s

CN

N

HA

LL

FO

XN

C

Source: NPM Sample, May, 2007

Page 4 Confidential & ProprietaryCopyright © 2007 The Nielsen Company

Stations & Channels

1950 3.8 N/A

1976 7.7 N/A

1980 9.0 N/A

1985 11.0 18.8

1990 11.7 33.2

1995 13.0 41.1

2000 13.5 61.4

2004 16.4 92.6

2005 16.3 96.4

2006 17.5 104.2

2007 16.1 118.6

BroadcastStations

AllChannels

AverageChannelsTuned

AverageChannelsReceivable

118.6

132.3

Total U.S.

Cable +ADS

16.0 17.4

B’Cast Only

16.3

4.3• Copyright 2008 Nielsen Media Research

Page 5 Confidential & ProprietaryCopyright © 2007 The Nielsen Company

Average Hours of TV Usage Per Week

57:3757:3957:1756:0752:35

50:00 48:2950:42

46:0643:42

1975 1980 1985 1990 1995 2000 2004 2005 2006 2007

Seasonal Swings

Winter (Jan-Feb) vs. Annual

Summer (Jul-Aug) vs. Annual

+13

-15

+12

-10

+11

-7

+7

-6

+8

-5

+6

-4

Audimeter National People Meter

% D

iffe

ren

ce

• Copyright 2008 Nielsen Media Research

+5

-3

Annual

+5

-3

Total Day

+5

-3

+4

-2

PTPA May 2009666

Myths from Chicken Littles

Cable will eat our lunch Digital Video Recorders will

let people program us out of existence

Internet will finish us off OMG Mobile is going too…

PTPA May 2009777

Case Study: DVRs

The revolution that never happened People can view more original episodes

of their favorite programming Big help for Pubcasters since DVRs help

build loyalty and GRPs Even helps in pledge… playback right

away Time shifting still affected by dayparts

Page 8 Confidential & Proprietary Copyright © 2008 The Nielsen Company

DVR Playback by hour – P18-49

1.0% 1.

5% 2.0% 2.

5% 2.8% 2.9% 3.1% 3.

4%

3.5% 3.6% 4.

0%

4.7%

5.8%

7.5%

9.6%

11.6

%

10.7

%

7.5%

4.9%

3.0%

1.9%

1.6%

0.9%

0.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

6:00

AM

7:00

AM

8:00

AM

9:00

AM

10:0

0 A

M

11:0

0 A

M

12:0

0 P

M

1:00

PM

2:00

PM

3:00

PM

4:00

PM

5:00

PM

6:00

PM

7:00

PM

8:00

PM

9:00

PM

10:0

0 P

M

11:0

0 P

M

12:0

0 A

M

1:00

AM

2:00

AM

3:00

AM

4:00

AM

5:00

AM

0

5

10

15

20

25

30

35

40

45

DVR Playback

Live PUT

Live+DVR Playback

Live +7 PUT

Percentage of DVR Playback November 2008 sweep

Page 9 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Distribution of Playback in Prime – P18-49

0%

20%

40%

60%

80%

100%

Live + 1hour

Live + 2hours

Live + 3hours

Live +SD

Live + 1day

Live + 2days

Live + 3days

Live + 4days

Live + 5days

Live + 6days

8PM

9PM

10PM

ABC, CBS, CW FOX and NBC

November 2008 sweep

Video Consumer Mapping Study Council for Research Excellence 10•

Measuring Video Is Becoming A Multi-Platform, Multi-Place Challenge

10

Video Consumer Mapping Study Council for Research Excellence 11•

The Observational Method

11

Video

PTPA May 2009121212

Here is the Epiphany

Look at the most used media by 18-24 year olds… Live TV

The Internet has replaced radio as the 2nd most used medium

Boomers are the tipping point of Internet Use and Live TV

Video Consumer Mapping Study Council for Research Excellence 13•

Except for those 45-54, 4-screen totals all add to 8½ hrs +/-2%

Except for those 45-54, 4-screen totals all add to 8½ hrs +/-2%

Live TV: 309minPlayback via DVR: 15minDVD or VCR: 23minConsole games: 7min

Web: 49min

Email: 37min

IM: 8min

Software: 46min

Computer video: 2min

Mobile talk: 17minMobile text: 2min

Mobile web: 1minMobile other (e.g. camera, etc): 0.5minMobile video: 0.1min

Environmental /Other video: 4minIn-Cinema movie: 2min

GPS navigation: 2min

1st scre

en

2st scre

en

3rd

scre

en

4th s

cre

en

1st screen 2nd screen 3rd 4th

8½ hrs

8½ hrs

8½ hrs – 2%

8½ hrs + 1%

9½ hrs+ 1%

8½ hrs

It is widely recognized that those 65+ are heavy users of Live TVIt is widely recognized that those 65+ are heavy users of Live TV

Among those 55+ time with email declines substantially and IM disappearsAmong those 55+ time with email declines substantially and IM disappears

DVR playback is highest among those under 55DVR playback is highest among those under 55 Those 45-54 use TV like those older but computer like those youngerThose 45-54 use TV like those older but computer like those younger

Web use is highest for those under 45Web use is highest for those under 45

DVD use is highest among the 18-34DVD use is highest among the 18-34 Computer and environmental video small and mainly among those under 25Computer and environmental video small and mainly among those under 25

How Consumers Accumulated Their Screen TimeAverage Daily Minutes, Core Sample, N=752 observed days, Spring and Fall 2008

All participants, including non-users of various media, including concurrent media exposure

By age group

Total 1st screen: 353minTotal 2nd screen: 143min Total 3rd screen: 20min

Total 4th screen: 8min

Mobile is mostly about talking, but with 12 mins texting for those 18-24Mobile is mostly about talking, but with 12 mins texting for those 18-24

1st screen 2nd screen 3rd 4th

8hrs 31mins

8hrs 32mins

8hrs 18mins

8hrs 33mins

9hrs 34mins

8hrs 30mins

How Consumers Accumulated Their Screen TimeAverage Daily Minutes, Core Sample, N=752 observed days, Spring and Fall 2008

All participants, including non-users of various media, including concurrent media exposure

By age group

Live TV: 309minPlayback via DVR: 15minDVD or VCR: 23minConsole games: 7min

Web: 49min

Email: 37min

IM: 8min

Software: 46min

Computer video: 2min

Mobile talk: 17minMobile text: 2min

Mobile web: 1minMobile other (e.g. camera, etc): 0.5minMobile video: 0.1min

Environmental /Other video: 4minIn-Cinema movie: 2min

GPS navigation: 2min

1st scre

en

2st scre

en

3rd

scre

en

4th s

cre

enTotal 1st screen: 353min

Total 2nd screen: 143min Total 3rd screen: 20min

Total 4th screen: 8min

PTPA May 2009141414

Multitasking or CME (Concurrent Media Exposure)

CME with TV is 19% CME with Internet 44% CME by age cohort is the

same for 18-64! About 28% And 16% for 65+

PTPA May 2009151515

Key Take Aways

Observational methodology has shown self reported media use is unreliable. People underreport their use of TV and radio by about a

third People greatly over report their use of the Internet and

Phone.

Linear media use is the prevalent use of TV Everybody young and old uses about the

same amount of media each day.. Hence dayparts determine media behavior

PTPA May 2009161616

Expanded Daypart Determinism

PTPA May 2009171717

Not one paradigm shift but two

Programming for many screens

Programming for many digital channels

PTPA May 2009181818

PTPA May 2009191919

PTPA May 2009202020

PTPA May 2009212121

PTPA May 2009222222

PTPA May 2009232323

PTPA May 2009242424

PTPA May 2009252525

PTPA May 2009262626

The NPS Prime Time Schedule

Is built for turnover not flow… Nature into Masterpiece Antiques Road Show into American Whatever Nova into Frontline

Why drive away your audience? Cume In the digital environment why not schedule to

maximize GRPs by using your digital channels?

We already know it works! Overlap stations and duopoly stations are successful.

Almost all viewing is still linear and CME! 90%

PTPA May 2009272727

What Kind of Digital Channels Do You Want? TRAC Field Surveys

Idaho Utah DC

2nd Variety

41% 48% 41%

Drama Comedy

23% 24% 28%

High Def Only

20% 13% 20%

Many Std Def Chns

11% 15% 11%

PTPA May 2009282828

How it all works at a station

Who programs what?

Is there a theory about how to program the platforms?

Non-linear builds what audiences?

Linear still reigns

PTPA May 2009292929

Programming Across Platforms

Get out of the silos Platform agnostic Know the medium Know the audience Get the numbers

PTPA May 2009303030

fin

(Chad’s Part Followed)