Contents. DVR Penetration Ethnic Penetration...4. DVR v. Non-DVR Time Spent With DVR Time Spent By Demo...9

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2 DVR Penetration... 3 Ethnic Penetration...4 DVR v. Non-DVR Contents Time Spent With DVR... 8 Time Spent By Demo...9 Time Spent By Ethnicity Playback by Hour Playback by Genre Live % v. Playback Playback by Source DVR Usage by Local Market Playback Days 4-7 v

3 DVR PENETRATION Half Of TV Households Do Not Own A DVR Total U.S. DVR Penetration 2% 41. Non-DVR HH 48.3%.8% 44.2% 48.4% 49.7% % 51 DVR HH 51.7% Source: Nielsen June of each year. SKIP TO DVR INSIGHTS 3

4 ETHNIC DVR PENETRATION In Ethnic Homes, DVR Penetration Has Grown Slightly In The Past Year But More Than Half Still Do Not Own One DVR penetration is up 7% in Hispanic Homes v. YAG / DVR penetration is up 10% in Black Homes v. YAG Total U.S. DVR Penetration By Ethnicity Hispanic Black % 34.8% 36.1% 38.1% 45.1% 48.6% 42.2% 44.2% 42.0% 42.5% 39.5% 41.1% Source: Nielsen June of each year. SKIP TO DVR INSIGHTS 4

5 DVR V. NON-DVR DVR Homes Consume 20% More Television; Greater Opportunity for Advertisers To Communicate Their Message At Scale Time Spent Per Week With TV DVR v. Non-DVR HH Total Day Non-DVR DVR 52:34 62:03 +19% Primetime Non-DVR DVR 11:16 13:35 +20% Source: VAB Analysis of Nielsen NPower Live+7 HUT/PUT;time spent of dvr v non-dvr hh; Prime=M-Sa 8-11&Su 7-11p; M-Su 6a-6a; 9/21/ /24/2016 SKIP TO DVR INSIGHTS 5

6 AFFLUENT DVR V. NON-DVR This is Especially True Among Affluent Homes; DVR Homes Are Heavier Consumers Of TV Than Non-DVR Homes Affluent $100K+ HH: Time Spent Per Week With TV (DVR v. Non-DVR HH) Total Day Primetime Non- DVR HH 37:24 9:29 DVR HH 51:01 12:31 % Diff +37% +33% Source: VAB Analysis of Nielsen NPower Live+7 HUT/PUT;time spent of affluent (HH w/$100k+) dvr v non-dvr hh; Prime=M-Sa 8-11&Su 7-11p; M-Su 6a-6a; 9/21/ /24/2016 SKIP TO DVR INSIGHTS 6

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8 TIME SPENT WITH DVR Time Spent With DVR-Timeshifted TV Is Down, Hitting Its Lowest Level in the Past Three Years Time Spent With DVR/Time-shifted TV/Monthly (Hrs:min) 1Q14 1Q15 1Q16 24:56 25:16 22:52 27:23 27:39 25:21 22:45 20:59 25:38 24:57 22:12 27:43 27:39 25:10 17:27 P2+ P18+ P18-34 P18-49 Source: Nielsen Total Audience Report 1Q16 P25-54 SKIP TO DVR INSIGHTS 8

9 TIME SPENT BY DEMO Viewing Decline Is Driven By Both Ends of the Age Spectrum Especially Young Adults Who Have Experienced Double Digit Declines With Time-shifted TV Time Spent With DVR/Time-shifted TV/Monthly (Hrs:min) K2-11 T12-17 P18-24 P25-34 P35-49 P50-64 P65+ Q :48 11:01 12:29 20:27 26:59 29:20 28:41 Q :16 13:23 15:16 24:26 28:52 31:20 30:41 % Diff -20% -17% -19% -16% -7% -6% -7% Nielsen Total Audience Report 1Q16 SKIP TO DVR INSIGHTS 9

10 TIME SPENT BY ETHNICITY Same Story Across All Ethnicities As DVR/ Timeshifted Viewing Is Down Significantly % Change in Time Spent With DVR/Time-shifted TV/Monthly (1Q16 v. 1Q15) P2+ K2-11 T12-17 P18-24 P25-34 P35-49 P50-64 P65+ Black -13% -18% -15% -13% -21% -11% -1% -25% Hispanic -16% -24% -22% -25% -13% -5% -17% -27% Asian -14% -29% -39% -53% -13% -12% -3% -10% Source: Nielsen Total Audience Report 1Q16 SKIP TO DVR INSIGHTS 10

11 TIME SPENT In General, Younger Viewers Spend Less Time With DVR-Timeshifted TV Than Their Older Cohorts Time Spent With DVR/Time-shifted TV/Monthly (Hrs:min): 1Q16 Composite Hispanic Black 28:52 31:20 30:41 26:32 26:33 24:26 21:13 21:38 18:16 17:44 19:00 19:59 19:03 13:07 14:09 13:23 10:32 12:01 15:16 11:42 14:23 CH2-11 P12-17 P18-24 P25-34 P35-49 P50-64 Source: Nielsen Total Audience Report 1Q16 P65+ SKIP TO DVR INSIGHTS 11

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13 PLAYBACK BY HOUR Timeshifting Occurs Mainly During Primetime and Extends Into Late Night Share of Avg Minutes Viewed in DVR Playback by Hour: A % 10% 10% Majority of Timeshifting Occurs During 8p-12M 9% 7% 1% 1% 2% 2% 3% 3% 3% 3% 4% 4% 4% 4% 5% 6% 5% 3% 2% 1% 1% 6-7A 7-8A 8-9A 9-10A 10-11A 11A-12P 12-1P 1-2P 2-3P 3-4P 4-5P 5-6P 6-7P 7-8P 8-9P 9-10P 10-11P 11P-12A 12-1A 1-2A 2-3A 3-4A 4-5A 5-6A Source: VAB Analysis of Nielsen NPower; base= DVR; viewing source=dvr playback; 9/21/ /24/2016 SKIP TO DVR INSIGHTS 13

14 PLAYBACK BY GENRE General Drama & Participation Variety Are The Most Timeshifted Genres Live+7 v. Live Prime Ratings By Program Genre Total U.S. P18-49 Program Type Live Live+7 (+/-) PARTICIPATION VARIETY GENERAL DRAMA AWARD CEREMONIES GENERAL VARIETY CONVERSATIONS, COLLOQUIES Hispanic P18-49 Black P18-49 Program Type Live Live+7 (+/-) AWARD CEREMONIES PARTICIPATION VARIETY GENERAL DRAMA GENERAL VARIETY CONVERSATIONS, COLLOQUIES Program Type Live Live+7 (+/-) GENERAL DRAMA AWARD CEREMONIES POPULAR MUSIC PARTICIPATION VARIETY GENERAL VARIETY Source: Nielsen, primetime; 9/21/15-7/24/16; participation variety= includes reality programs such as Bachelor and Amazing Race, etc SKIP TO DVR INSIGHTS 14

15 LIVE % V. PLAYBACK 77% of TV Viewing Is Spent With Live TV In Primetime Ideal For Time Sensitive Marketing Campaigns % Live v. Playback Minutes P18-49 Total Day Primetime DVR Playback 20% DVR Playback 23% Live TV 80% Live TV 77% Source: Nielsen, Base=DVR HHs; 9/21/15-7/24/16 SKIP TO DVR INSIGHTS 15

16 LIVE % V. PLAYBACK Time-shifting Represents Less Than A Quarter Of Total TV Viewing Across The Age Spectrum Even Lower Among % Live v. Playback Minutes: Primetime 79% 80% 82% 76% 76% 79% 75% 79% 21% 20% 18% 24% 24% 21% 25% 21% P2-11 P12-17 P18-24 P25-34 P35-49 P50+ F18-49 M18-49 Playback Live Minutes Source: Nielsen, Base=DVR HHs; 9/21/15-7/24/16 SKIP TO DVR INSIGHTS 16

17 LIVE % V. PLAYBACK In Affluent Homes, Which Tend To Spend More On Products & Services, Live TV is The Norm Comprising More Than Three-Quarters of Their Total TV Time % Live v. Playback Minutes in HHI $100K+: Primetime 75% 74% 75% 77% 83% 75% 74% 77% 25% 26% 25% 23% 17% 25% 26% 23% P18-49 P25-54 P2-11 P12-17 P18-24 P25-34 P35-49 P50+ Playback Live Minutes Source: Nielsen, Base=DVR HHs; 9/21/15-7/24/16 SKIP TO DVR INSIGHTS 17

18 LIVE % V. PLAYBACK Looking By Ethnicity: Live TV is More Prominent Comprising Over 80% of Total TV Time % Live Minutes With The TV By Demo: Prime Black Hispanic P % 81% P % 82% P % 80% P % 82% P % 81% P % 80% P % 82% P50+ 87% 85% F % 79% M % 84% Source: Nielsen, Base=DVR HHs; 9/21/15-7/24/16 SKIP TO DVR INSIGHTS 18

19 PLAYBACK BY SOURCE Breaking Down To Source: Less Than a Quarter of Ad-Supported Cable s Programming Is Timeshifted % Live v. Playback Minutes by Source For P18-49: Primetime Ad-Supported Cable Broadcast Total Day 15% 85% Total Day 24% 76% Primetime 25% 75% Primetime 46% 54% Playback Live Minutes Source: Nielsen, Base=DVR HHs; 9/21/15-7/24/16; English bdcst SKIP TO DVR INSIGHTS 19

20 PLAYBACK BY SOURCE Among Affluent Homes, Majority of Ad-Supported Cable s Programming Is Viewed Live % Live v. Playback Minutes in HHI $100K+: Primetime Ad-Supported Cable Broadcast 53% 54% 75% 75% 81% 63% 25% 25% 19% 47% 46% 37% P18-49 P25-54 P18-24 P18-49 P25-54 P18-24 Playback Live Minutes Source: Nielsen, Base=DVR HHs; 9/21/15-7/24/16 SKIP TO DVR INSIGHTS 20

21 PLAYBACK BY SOURCE Overall, Convenience is A Top Motive For Time-shifting Programs; Only 29% of Millennials Cite Ad Skipping as Their Primary Reason Watch when convenient 58% 60% See missed episodes 38% 37% Skip Ads 29% 37% Can pause or rewind 33% 34% Millennials All Respondents Takes less time to watch 29% 33% 35% Not avail during live airing 29% Can watch back-to-back 19% 24% Source: HUB Entertainment research 3/15; Survey of 1210 tv consumers who watch at least 5 hours of tv /week and have broadband home access; What do you consider to be the biggest benefits of watching episodes of a current show at a later time? SKIP TO DVR INSIGHTS 21

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23 DVR USAGE BY LOCAL MARKET Down To The Local Market Level, Majority of Viewing Is With Live TV Average Daily Time Spent in LPM Markets Cleveland 4:44 0:57 0:11 Pittsburgh 4:43 0:47 0:08 Detroit 4:28 0:54 0:14 Baltimore 4:35 0:04 0:16 Atlanta 4:15 0:57 0:16 St. Louis 4:14 0:56 0:15 Charlotte 4:08 0:49 0:21 Philadelphia 4:23 0:36 0:15 New York 4:04 0:39 0:18 Tampa 4:12 0:37 0:11 Orlando 3:49 0:05 0:14 Dallas 3:33 0:48 0:22 Houston 3:48 0:04 0:15 Phoenix 3:32 0:56 0:15 Chicago 3:34 0:53 0:11 Washington, D.C. 3:36 0:37 0:02 Sacramento 3:28 0:54 0:01 Boston 3:38 0:41 0:12 Portland 3:26 0:44 0:13 Minneapolis Denver 3:19 3:01 0:41 0:46 0:02 0:21 Live TV Miami Seattle 3:27 3:01 0:39 0:29 0:14 0:16 Watching Time-Shifted TV Los Angeles 2:53 0:41 0:18 San Francisco 2:42 0:37 0:14 Using Multimedia Device Source: NLTV Feb 2016, Average Daily Time Spent HH:MM, P25-54, Live PUT, XPLT, Multimedia Device (Apple TV, Roku, Chromecast, etc) Nielsen Local Watch Report, April 2016 SKIP TO DVR INSIGHTS 23

24 DVR USAGE BY LOCAL MARKET and Time Spent with Live TV is Greater in Set-Meter Markets Average Daily Time Spent in Set-Meter Markets Birmingham Memphis Knoxville Louisville Norfolk Nashville Tulsa Greenville 5:56 5:05 5:41 5:45 5:29 5:23 5:19 6:27 0:52 0:53 0:06 0:45 0:11 0:48 0:13 0:44 0:11 0:55 0:11 0:50 0:17 0:48 0:20 0:11 Greensboro 5:16 0:54 0:16 Richmond 5:31 0:46 0:09 New Orleans Jacksonville Columbus, OH Oklahoma City Raleigh Buffalo Dayton Cincinatti Indianapolis Hartford Las Vegas Providence West Palm Beach 5:20 5:19 5:00 5:19 5:05 4:57 4:58 4:58 4:51 4:04 4:28 4:36 4:03 0:44 0:48 0:54 0:45 0:48 0:54 0:13 0:47 0:16 0:43 0:15 0:52 0:11 0:47 0:18 0:55 0:11 0:43 0:13 0:44 0:11 0:16 0:10 0:18 0:08 0:15 Live TV Watching Time-Shifted TV Milwaukee FT. Meyers 4:27 4:25 0:43 0:40 0:12 0:16 Using Multimedia Device Kansas City Albuquerque San Antonio Austin San Diego Salt Lake City 2:44 3:55 3:14 3:01 4:17 4:25 0:37 0:41 0:43 0:18 0:42 0:21 0:09 0:54 0:37 0:17 0:10 0:16 Source: NLTV Feb 2016, Average Daily Time Spent HH:MM, P25-54, Live PUT, XPLT, Multimedia Device (Apple TV, Roku, Chromecast, etc) Nielsen Local Watch Report, April 2016 SKIP TO DVR INSIGHTS 24

25 DVR USAGE BY LOCAL MARKET Locally, Hispanic Viewing with Timeshifted TV Is Minuscule Hispanic A25-54 Average Daily Time Spent 0:25 0:34 0:17 0:22 0:14 0:24 0:09 0:46 0:06 0:35 0:09 0:26 0:11 0:29 0:14 0:29 0:12 0:27 0:13 75% 0:16 3:56 3:59 3:50 3:20 3:15 3:18 3:11 3:01 2:59 2:58 25% Denver New York Phoenix Sacramento Chicago Houston Dallas Los Angeles San Francisco Miami Live TV Watching Time-Shifted TV Using a Multimedia Device Source: NLTV Feb 2016, Hispanic, Average Daily Time Spent HH:MM, P25-54, Live PUT, XPLT, Multimedia Device (Apple TV, Roku, Chromecast, etc) Nielsen Local Watch Report, April 2016 SKIP TO DVR INSIGHTS 25

26 DVR USAGE BY LOCAL MARKET and Live TV Viewing is Even More Prominent Among Blacks, Locally Black A25-54 Average Daily Time Spent 0:12 0:50 0:14 0:39 0:46 0:41 0:11 0:46 0:17 0:58 0:09 0:39 0:12 0:51 0:11 0:31 0:11 1:02 0:13 0:36 75% 6:43 6:17 5:39 6:06 5:37 5:57 5:37 5:19 4:47 4:48 25% Detroit Philadelphia Dallas New York Atlanta Houston Chicago Washington, D.C. Los Angeles Miami Live TV Watching Time-Shifted TV Using a Multimedia Device Source: NLTV Feb 2016, Black, Average Daily Time Spent HH:MM, P25-54, Live PUT, XPLT, Multimedia Device (Apple TV, Roku, Chromecast, etc) Nielsen Local Watch Report, April 2016 SKIP TO DVR INSIGHTS 26

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28 PLAYBACK DAYS 4-7 V. 1-3 About 15% Of Playback Occurs in Days 4-7 Playback Day 1-3 v 4-7 Minutes : Primetime Ad-Supported Cable Broadcast DVR Playback: P18-49 P18-24 Days 1-3: 88% 89% Days 4-7: 12% 11% P18-49 P % 85% 16% 15% Source: Nielsen; 9/21/ /24/2016; Prime; Share of avg minute viewed; Bdcst 6 SKIP TO DVR INSIGHTS 28

29 PLAYBACK DAYS 4-7 V. 1-3 Getting Credit for Playback in Days 4-7 Increases Ratings; Can Vary By Specific Programming Widely Ratings by Stream: Primetime P18-49 P25-54 Live Ad-Supported Cable Live Live Days 4-7 Playback +2% +2% Live English Broadcast Live Live Days 4-7 Playback +4% +4% Source: Nielsen; 9/21/ /24/2016; Prime; Bdcst 6 SKIP TO DVR INSIGHTS 29

30 PLAYBACK DAYS 4-7 V. 1-3 This is True Across The Age Spectrum, Especially For Broadcast Programming Ratings by Stream: Primetime Ad-Supported Cable P2-11 P12-17 P18-24 P25-34 P35-49 P50+ Live Live Days 4-7 Playback +1% +2% +1% +2% +2% +1% English Broadcast Live Live Days 4-7 Playback +3% +4% +3% +4% +5% 3% Source: Nielsen; 9/21/ /24/2016; Prime; Bdcst 6 SKIP TO DVR INSIGHTS 30

31 PLAYBACK DAYS 4-7 V. 1-3 In Fact, Broadcast s Top Programs Have Significant Playback In Days 4-7 Top 20 Broadcast A18-49 Programs % of Playback in Days 4-7/ Primetime A18-49 Rank Program Name % in Playback Days 4-7 A18-49 Rank Program Name % in Playback Days EMPIRE 17% 11 MODERN FAMILY 22% 2 BIG BANG THEORY, THE 16% 12 VOICE-TUE 15% 3 X-FILES 22% 13 NCIS 19% 4 OT, THE 0% 14 AMERICAN IDOL-WEDNESDAY 14% 5 GREY S ANATOMY 16% 15 BACHELOR, THE 12% 6 SCANDAL 15% 16 SURVIVOR 11% 7 VOICE 11% 17 BLACKLIST 19% 8 HOW TO GET AWAY W/MURDER 16% 18 AMERICA S GOT TALENT-WED 20% 9 AMERICA S GOT TALENT-TUE 16% 19 AMERICAN IDOL-THURSDAY 18% 10 BLINDSPOT 20% 20 QUANTICO 18% 75% of Programs Wield An Above Broadcast s Average of 15% Playback in Days 4-7 Source: Nielsen; 9/21/ /24/2016; Prime; Bdcst 6; Excludes sports and specials SKIP TO DVR INSIGHTS 31

32 PLAYBACK DAYS 4-7 V. 1-3 Broadcast Programs Exhibit More Viewing Outside the C3 Window % of Playback in Days 4-7/ Primetime English Broadcast Ad-Supported Cable % of Playback # of Share of in Days 4-7 Programs Total 21+% 54 21% 11-20% % 0-10% 63 24% Total % % of Playback # of Share of in Days 4-7 Programs Total 21+% % 11-20% % 0-10% 2,159 66% Total 3, % Source: Nielsen; 9/21/ /24/2016; Prime; pgms with three or more telecasts SKIP TO DVR INSIGHTS 32

33 CONTACT US For More Information Visit Us Online TheVAB.com Follow Like us: facebook.com/videoadvertisingbureau Sean Cunningham President & CEO Danielle DeLauro SVP Strategic Sales Insights Jason Wiese VP Strategic Insights Evelyn Skurkovich VP Strategic Research & Insights

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