Timeshifting In 2013. Important Note To Our Members: The following deck was developed to give you an overview of DVR users and to demonstrate the effects.

Timeshifting In 2013

Important Note To Our Members:

• The following deck was developed to give you an overview

of DVR users and to demonstrate the effects of Time-

Shifting on television viewing.

• This document was not written as a full presentation –

please pick and choose the slide (s) that work for your

individual needs.

• These slides were created on a white background so they

can easily be inserted into your current presentation

• Please view the presentation in slideshow mode as there

may be animation

Timeshifting in 2013

• Today, half of the TV homes have a DVR but penetration is starting to slow

• Higher income homes are more likely to have DVRs

• Time spent with timeshifted programming continues to grow but is still only a fraction of overall TV time

• Only a fraction of Cable’s programming gets timeshifted while practically half of Broadcasts’ is viewed in Playback mode.

• Participation Variety and Drama are the most timeshifted genres.

Today Practically Half Of Homes Have a DVR; With Growth Rate Starting To Slow

% of U.S. TV HHs

Source: Nielsen; March of each year.

2009 2010 2011 2012 2013

47.7%

DVR Households Are Becoming More & More Multi-DVR Homes

74.7%

21.3%

2.7% 0.9% 0.3%

70.6%

23.1%

4.2% 1.7% 0.3%

1 DVR 2 DVRs 3 DVRS 4 DVRS 5+ DVRS

March 2007 March 2013

Source: Nielsen; Percent of DVR HH only – not total HHs.

Percent Of Homes with Multiple DVRs

Penetration Growth Among 2+ DVRs

Higher Income Homes Are More Likely To Own A DVR

DVR Penetration By Income(v. YAG)

Source: Nielsen, State Of Media report. 12/13 v. yag

Less Than $30K

25% (+13%)

$30-50K $75-100K

$100K+

$50-75K

41% (+9%)

68% (+6%)

52% (+9%)

60% (+11%)

DVR Penetration Among African American & Hispanic Households Has Grown Substantially

Source: Nielsen.

March ’07 March ’13Hispanic 9.9% 38.5%

African American 11.9% 40.6%

DVR Penetration %

Time Spent…

Time Spent With Timeshifted Programming Continues To Grow But Is Still Only A Fraction Of Total TV Time

Source: Nielsen, Cross Platform Report.

Monthly Time Spent In Hrs:Min Per User 2+

4Q11 4Q12 % Diff

Watching Timeshifted TV 11:44 12:38 +8%

Watching TV 153:19 156:24 +2%

Across The Board, DVR Playback Accounts For A Small Portion Of Total TV Viewing

Monthly Time Spent In Hrs:Min

CH2-11

T1217

A18-24

A25-34

A35-49

A50-64

A65+

Watching TV in the home*

112:39

98:26 111:20

136:10

157:07

198:23

220:55

Watching Timeshifted TV (all homes)

9:25 7:26 7:49 15:38 15:57 15:26 10:28

Source: Nielsen, 4Q12 Cross Platform Report. *Includes live viewing + DVR playback.

DVR Playback Has Experienced Its Greatest Gains With The Older Consumers 50+

Monthly Time Spent Watching Timeshifted TV In Hrs:Min

Source: Nielsen, Cross Platform Report.

4Q11 4Q12 % Diff

CH2-11 8:50 9:25 9%

T12-17 6:54 7:26 11%

A18-24 7:55 7:49 -1%

A25-34 15:08 15:38 2%

A35-49 15:00 15:57 4%

A50-64 14:03 15:26 9%

A65+ 8:36 10:28 23%

Ethnic Breakdown: Hispanics Time Spent With DVR Playback Has Grown Considerably As Well

Black Hispanic Asian

Watching TV in the home% Diff v YAG

215:02+3%

131:08+3%

99:30+4%

Watching Timeshifted TV% Diff v YAG

9:45+10%

8:21+16%

9:06+12%

Monthly Time Spent In Hrs:Min By Ethnicity Per User 2+

Source: Nielsen, Cross Platform Report. *Includes live viewing + DVR playback.

Of Those Who Time-Shift,

Half Watch Commercials

DVR Usage…

Live Minutes, 81%

Playback, 19%

On A Total Day Basis, 8 Out Of 10 Programs Are Viewed “Live”

% Spent With Playback v. Live Minutes: Total DayP18-49 March ‘13

Source: Nielsen, Base=DVR HHs.

81% 77%

19% 23%

Jan '06 March '13

Live Minutes Playback

In Prime, More Than Three Quarters Is Viewed “Live”

% Live v. Playback Minutes: PrimetimeP18-49 March ‘13

Source: Nielsen, Base=DVR HHs.

17% 18% 25% 23% 19%

83% 82% 75% 77% 81%

P12-17 P18-24 P25-34 P35-49 P50+

Playback Live Minutes

Time Spent With “Live” Programming Is Consistent Across The Board

% Live v. Playback Minutes: PrimetimeMarch ‘13

Source: Nielsen, Base=DVR HHs.

Diving Deeper Into Programming…

76%

56%

24%

44%

Ad-Supp Cable Broadcast

Live Minutes Playback

Source: Nielsen, Base=DVR HHs.: March 13

P18-49 % Time-Shifting In Prime By Source(base=DVR hhs)

Less Than A Quarter Of Cable’s Programming Is Time-Shifted

Among Both Young And Old, Only A Fraction Of Cable’s Programming Is Time-Shifted

% Time Spent With Time-Shifted Programming in Prime

Source: Nielsen, Base=DVR HHs.; % of minutes; March 13

Ad-Supp Cable BroadcastA18-49 24% 44%

A25-54 24% 42%

A12-17 18% 39%

A18-24 21% 44%

A25-34 27% 49%

A35-49 23% 42%

A50+ 17% 32%

In Fact, Broadcasts’ Highest Rated Programming Tends To Be The Most Time-Shifted

Top 15 Most Time-Shifted Broadcast Programs Primetime: March 2013

Base: DVR HH

Source: Nielsen’s Npower; Prime=M-Sa 8-11p & Su 7pm. Base= DVR HHs;; Broadcast 6A18-49 total U.S. Live+7rank (greater or equal to 2 t/c).

Playback Only A18-49 RankRank Originator Program Name A18-49 AA % (Total U.S.)

1 CBS BIG BANG THEORY, THE 6.75 12 FOX FOLLOWING, THE 4.51 73 FOX NEW GIRL 4.08 134 ABC GREY'S ANATOMY 3.41 125 ABC ONCE UPON A TIME 3.31 166 CBS TWO AND A HALF MEN 3.11 27 FOX GLEE 3.02 158 CBS PERSON OF INTEREST 2.93 69 CBS NCIS 2.93 810 CBS SURVIVOR: CARAMOAN 2.72 1811 ABC BACHELOR, THE 2.69 912 NBC GRIMM 2.68 3713 FOX FAMILY GUY 2.64 514 ABC REVENGE 2.58 3115 FOX HELL'S KITCHEN 2.56 26

Program Type Determines the Degree Of DVR Playback

Participation Variety & General Dramas Tend To Be The The Most Time Shifted In Primetime

A18-49 Live+7 v. Live Absolute Change By Genre In Prime(Base: DVR HHs)

Source: Nielsen;3/13; primetime;

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0.32 0.300.17 0.16

0.09 0.050.19

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The Future…Enhanced TV Services

Enhanced TV Services Offered By Your Cable Provider: Offering A Variation On the DVRVarious MSO’s offer the following services in select markets. These services arefree with Digital Cable:

Start Over – Provides you with the power to restart and watch a program from the beginning. With Start Over, the fast-forwarding function will be turned off. Shows airing can be restarted multiple times within their normal broadcast time. For example, if a program airs from 7 to 7:30, you will be able to restart it at any time during that half hour until 7:29 and 59 seconds.

And while you’re watching a Start Over show, you can:REWIND the show while it's playing PAUSE it for up to 5 minutes RESUME: change the channel then come back within 5 minutes to where you left off inyour Start Over program (as long as the show is still in it's original broadcast window).

Note: Start Over may not be available in all areas.

Look Back - Allows you to view shows that have already aired up to 3 days later! Look Back is available on select shows from participating networks