Cool Off With Premium Video Content: How Viewers are Beating The Heat During Summer Months

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1 Cool Off With Premium Video Content: How Viewers are Beating The Heat During Summer Months

2 Contents Summer Video Viewing 4 Reach 5-7 Days tuned-in 8 Summer Streaming 9-11 Summer Binging 12 Time spent by month 13 Put levels by month 14 Viewership by day 15 Timeshifted TV viewing Time spent by ethnicity by season 18 Summer s Biggest Screen 19 Box Office Sales 20 Cinema Reach 21 Composition Hot Summer Programming on Second Screen 24 Summer programming slate TV content online 29-30

3 Overview The summer television doldrums vanished when Ad-Supported TV turned up the heat on originals in the warm-weather months. Summer is now filled with a wealth of premium, original television content. With over 23 hours of television watched a week, summer TV usage remains on par with the rest of the year. Although streaming usage peaks in the summer, linear TV remains viewers primary video source drawing over 10 million viewers a night. An early look at Summer 2017 programming reveals a strong slate of original, buzz worthy programs. As in past seasons, we expect all this hype to extend to the second screen with Ad-Supported TV brands dominating top online genres. Not only are viewers catching up with their favorite TV programs but they are cooling off in their local movie theater. Movie attendance peaks in the summer as everyone (especially Millennials) wants to see the next blockbuster on the big screen.

4 Summer Video Viewing Consumption Trends

5 TV Delivers Over 280 Million Viewers in the Summer Far More Than Any Other Viewing Platform Total Day Reach (OOO) Among A2+: 3Q16 TV Radio 263, ,783 App/web Smartphone Internet on PC Video Smartphone 175, , ,319 Video on PC DVD/Blue-Ray Multimedia Devices Game Console 117, ,061 92,816 88,452 Source: Nielsen Comparable Metrics, 3Q16

6 As Temperatures Rise, TV s Reach Increases Total Day Reach % Summer 16 v. Winter P 2-11 P P P P P Winter Summer Source: Nielsen Npower; reach%, 6/6-9/11/16 (Summer) & 1/2/17-4/2/17 (Winter)

7 Especially in Primetime Primetime Reach% Summer 16 v. Winter P 2-11 P P P P P Winter Summer Source: Nielsen Npower; reach%, 6/6-9/11/16 (Summer) & 1/2/17-4/2/17 (Winter)

8 Viewers Tuned-In To TV More Often This Past Summer Average Days Tuned In to TV During Summer 16 v. YAG Summer'15 Summer' P 2-11 P P P P P Source: Nielsen Npower timeperiod; average days tuned;6/16-9/11/16 v YAG

9 and Part of TV s Summertime Strength Can Be Attributed to Streaming 85% have some sort of Summer Streaming List with the shows/series they want to watch this summer 56% say they are MORE excited about the shows/series they re streaming on vacation this summer than previous summers 61% have more shows/series on their Summer Streaming List than previous summers 67% agree with statement because I ve been streaming shows/series, I m reading fewer books than previous summers Source: Miner & Co. Studio Summer Streaming

10 Summer Is a Popular Time For Viewers To Catch Up On Broadcast & Cable Content Through Their SVOD Service Online Video Content Enjoyed Most By SVOD Service NETFLIX HULU AMAZON No Specific Set / Other 14% Movies 16% Original TV Series 25% Network TV Shows 45% No Specific Set / Other Movies10% 10% Original TV Series 12% Network TV Shows 68% No Specific Set / Other 20% Movies 41% Network TV Shows 22% Original TV Series 17% Broadcast & Cable TV shows are the most enjoyed by SVOD watchers *Netflix has approximately 70 series that they consider original programming, as well as more than 50 other titles that include films, documentaries, specials and stand-up specials. Amazon has not been as aggressive in producing original content but it does have approximately 20 series. Source: SNL Kagan January U.S. Netflix subscribers 1,283; U.S. Hulu subscribers 421; U.S. Amazon Prime subscribers 835. Question: Which following types of video content do you most enjoy viewing from the service. Select only one. (millennials)

11 Summer Binging Leads To Viewers Craving Even More TV Content 87% are watching or plan to watch 3 or more episodes of show/series in one viewing this summer. Binge-viewers crave MORE TV content 2X Frequent binge-viewers are MORE likely than infrequent binge-viewers to let commercials play 43% Of frequent binge-viewers now watch MORE TV because of binge-viewing 4X Frequent binge-viewers are MORE likely than infrequent viewers to say they will upgrade their cable/satellite/telco subscription in next few years Source: Miner & Co. Studio Binge Watching is our new favorite addiction

12 As a Result, Some Networks are Changing The Way They Develop & Release New Shows & Commercials to Adapt To New TV Viewing Habits Turner added original, serialized shows like The Alienist & Good Behavior Source: fortune.com/ /how Network TV Figured Out Binge-Watching

13 Summer Streaming Does Not Effect Linear TV Viewing Time Spent Remains On Par With Cooler Months April 16 March 17 Time Spent (Hours/week: Total Day) P18-49 P25-54 Viewers Spend an Average of 23 Hours a Week with TV in the Summer April May June July Aug Sept Oct Nov Dec Jan Feb March Source: Nielsen Npower; 4/16-3/17 by month; hours per week.

14 Summer Ratings Remain Strong Especially Among Young Adults April 16 March 17 Total Day Put Levels P18-49 P25-54 P18-24 April May June July Aug Sept Oct Nov Dec Jan Feb March Source: Nielsen Npower; Put; 4/16-3/17 by month; total day.

15 Night After Night, TV Delivers Over 10 Million Viewers Primetime Viewership (OOO) By Day Sun Mon Tues Wed Thurs Fri Sat P ,278 20,111 18,976 18,628 16,904 14,707 15,590 P ,223 21,973 20,859 20,667 18,703 16,492 17,552 Key Days For Retail & Movie advertisers Source: Nielsen Npower time period Live+7 data; ad-supported cable v. English broadcast= 11 nets impressions; 06/06/ /11/2016 v. year ago.

16 There is No Vacation For TV As The Vast Majority of Viewers Are Watching Their Summer Programming Live % Live v. Timeshifted TV Viewing (Summer 16) Live Total Day Timeshifted Live Primetime Timeshifted 18% 18% 16% 21% 21% 18% 82% 82% 84% 79% 79% 82% P18-49 P25-54 P18-24 P18-49 P25-54 P18-24 Source: Nielsen Npower; base=dvr HH; 05/31/ /06/2016

17 With Slightly More Live Viewing Occurring During the Summer Season % Live v. Timeshifted TV Viewing: P18-49 (Summer 16 v. Winter 17) Primetime Winter' 17 Summer'16 77% 79% 23% 21% Live Timeshifted Source: Nielsen Npower; base=dvr HHs; 05/31/ /06/2016 v. 01/02/ /02/2017

18 Across Ethnicities, Consistent TV Viewing Season After Season Time Spent With TV Among A18-49 by Season (Hours/week Total Day) Winter Spring Summer Fall N.H.* White N.H.* Black Hispanic Asian Source: Nielsen Npower; 12/1/16-2/28/17 v. 3/1-5/31/16 v. 6/1-8/31/16 v. 9/1-11/30/16; total day; hours per week; PUT A18-49 N.H*.= non-hispanic

19 Summer s Biggest Screen

20 Not Only Are Viewers Catching Up With Their Favorite TV Programming, Blockbuster Movies Are Driving Consumers To The Theaters Box Office Sales $4,058,023,698 $4,451,927,467 Summer 2014 Summer 2016 ource: Box Office Mojo

21 During the Summer Season Cinema s Reach Increases Cinema Unique Reach By Demo August 2016 v. February 2016 A18-34 A18-49 A25-54 Feb 16 24,670 39,325 32,788 Aug 16 26,065 42,152 36,547 YoY % Change +6% +7% +11% Source: Nielsen Media Impact, 2/16 vs. 8/16 for cinema unique reach.

22 During Summer s Peak Month, Cinema Delivers over 128 Million P2+ Impressions Of Which 50% Are Millennials August 2016 Impressions P % P % P % P % Source: Nielsen Cinema Audience Report, August 2016; out of base of P2-64

23 and Millennials Watch a Wide Variety of Movies: Accounting For Nearly Two- Thirds of R, Almost Half of PG-13 Rated Audience and Over One-Third of PG PG Cinema Audience Comp By Rating PG-13 R 29.6 % 37.5 % 59.8 % 36.0 % 5.3% 24.2 % 48.1 % 3.5% 5.8% 2.7% 31.5 % 4.7% P2-11 P12-17 P18-34 P35-64 P2-11 P12-17 P18-34 P35-64 P2-11 P12-17 P18-34 P35-64 Source: Nielsen Cinema Audience Report, August 2016; out of base of P2-64

24 Hot Summer Programming on the Second Screen

25 A Wealth of Quality, Premium TV Content Is Driving Viewing Throughout the Year Including Summer 76% Believe There Are More Good TV Series Now Than There Were Before Streaming TV has Made Summer More Enjoyable Most Stating I m bored less often and my friends and I always have TV shows to talk about 86% say Broadcast Networks are very or somewhat reliable as sources for finding great TV shows 87% say Cable Networks are very or somewhat reliable as sources for finding great TV shows 86% say Streaming Services are very or somewhat reliable as sources for finding great TV shows Source: Miner & Co. Studio Summer of Peak TV: The Viewers Perspective; Online survey fielded July 1 st - July 6 th, 2016 among 801 TV viewers between ages of

26 Although Official Summer Programming Slates Have Yet To Be Released, 2017 Summer Is Looking Strong Preview of Summer 17 Schedule As of 4/21/17 More to be Announced Source:

27 and New Summer Programs Are Generating A Lot of Buzz Source:

28 The Breadth of Ad-Supported TV Content is Unprecedented Cable and Broadcast: Summer 2017 Ad-Supported TV Content Exceeds SVOD s by Far SVOD: Summer 2017 Source:

29 Not Wanting to Miss Out On Quality Programming, Viewing on Mobile Devices Increases During the Summer Time Spent With Ad-Supported TV On Computer/Mobile Platforms ( Total Minutes) ( June 16 v. Feb 16) Feb 16 June 16 Absolute Diff P2+ 1,721,533 min 1,749,217 min +27,684 min Absolute Diff P ,005,573 min 1,151,033 min +145,460 min Source: VAB analysis of comscore total unduplicated data (mediametrix, multiplatform). Ad-Supported Television Brands represents all measured Ad-Supported Cable nets, MVPDs and Broadcast Television FOX, CBS, NBC, ABC, ion and CW. Mobile platform= internet on computer, tablet, smartphone.

30 In Fact, TV Brands Dominate The Top Online Genres in the Summer Top 5 Rank by Internet Genre: August 2016 A18-49 Sports Sports Comedy TV Entertainment - Black General News Political News NBCSN Resignation Media NBCU CNN CNN Politics ESPN Cracked Xfinity ABC News Politico MLB Comedy Central CBS CBS News MSNBC Bleacher Report Ebaums World A&E Buzzfeed FOX News Politics CBS Sports Electus Digital GSN FOX News Voice of America Home Weather TV Entertainment Kids Food Hearst The Weather Channel NBCU Food Network Disney Entertainment HGTV Accuweather GSN AllRecipes Roblox.com Houzz Weatherbug ABC Bon Appetit PBS Kids Hobby Lobby Internet Brands Home & Garden Yahoo Weather Pelmorex Media Inc. Weather CBS Xfinity MSN Food & Drink BlogHer Food Nickelodeon Cartoon Network SOURCE: VAB ANALYSIS OF MULTI-PLATFORM COMSCORE DATA, AUGUST 2016 (RANKING BASED ON SOURCE: VAB TOTAL ANALYSIS MINUTES OF MULTI-PLATFORM VIEWED ) COMSCORE DATA, AUGUST 2016 (RANKING BASED ON TOTAL MINUTES VIEWED )

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