Why Niche Cable? Passionate, Quality Audience Viewers are enthusiastic and engaged

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2 Why Niche Cable? Niche Cable refers to the long tail, specialized networks with audiences under the average Cable cume reach. While some marketers may question the need to go beyond the largest 10 or 15 networks when putting together a TV schedule, Niche Cable offers benefits that complement a plan and drive value. Superior Targetability The ability to target enthusiast audiences with premium content, when they are in a receptive mindset, and in a brand safe environment Passionate, Quality Audience Viewers are enthusiastic and engaged Reach Driver Niche networks offer exceptional incremental reach opportunities and are often the largest enthusiast voice among media channels Impact & Value The passion consumers have for the content delivers value for advertisers as viewers are likely to engage with the brand messaging they see within it So, let s take a closer look at how these niche networks continue to be relevant and impactful 2

3 Defining Niche Cable We classified a network as niche if its audience was below the average cable network cume reach. The average cable cume reach was determined by averaging the cume reach of all Nielsen daily measured cable networks Larger Networks 45,941M Average Cume Reach, P2+ Niche Networks (44 networks) (53 networks) Source: Nielsen Npower R&F Time Period Report, Persons 2+, Playback Time Period: Live +7 Days (+168 hours) TV Linear with VOD, Measurement Interval: 7/ / Data is inclusive of all measured daily cable networks, with the exception of Outdoor Channel, World Fishing Network, and Sportsman Channel. 3

4 Superior Targetability The ability to target enthusiast audiences with premium content, when they are in a receptive mindset, and in a brand safe environment 4

5 Cable s Niche Networks Offer A Diverse Mix Of Programming, Allowing Marketers To Target A Variety of Enthusiast Groups Sports Film Kids/Family Entertainment News Music Home & Food Science General Entertainment 1

6 Not So Niche These Networks Fill A Need By Providing Specialized, Curated Content To The Large Enthusiast Groups Who Thirst For It Sports Last year, Million people watched college or professional sports on TV baseball, basketball, football, golf or tennis The number of Americans playing tennis increased by 24% vs. 10 years ago Film 1.3 Billion movie theatre tickets were sold last year Over 210 million Americans are self-described movie lovers Family/Kids Entertainment The unparalleled influence of Teens over the family pursestrings totals $600 billion/year In just a few years, nearly 4 in 10 consumers will be from Gen Z Music Home & Food News Science/Nature 94% of the top 250 YouTube videos are music 56 Million people went to at least 1 concert within the last year 55 Million people like to cook for fun 24 Million people enjoyed a home décor project within the last year Each week, over 1 billion hours are spent consuming news content across videoenabled devices - an increase of 21% vs YA Jobs in the STEM field have grown by 11% in the last 8 years 55 million people have visited a zoo, museum or aquarium in the last year Source: Sports - Nielsen Npower R&F Program Report, Persons 18+, Playback Time Period: Live +7 Days (+168 hours) TV Linear with VOD, Measurement Interval: 1/1/16-12/31/16, Statista, number of Americans playing tennis, 06-16; Film - Box Office Mojo; Media Post, 12/14/17, NCM Engages "Super-Fans" with Fantasy Movie League ; Family/Kids Vision Critical The Everything Guide To Generation Z, Multichannel Merchant 5 ways retailers can reach Gen Z; Music GfK MRI 2016 doublebase and SocialBlade (July 2017); Home & Food GfK MRI 2016 doublebase; News 2016 data & Includes news content viewed on TV ( National Broadcast TV News, Local Broadcast TV News, National Cable TV News ), PC ( PC News ) & Smartphones ( Smartphone News ) and reflects all activity done, not just video viewing; Science & Nature - GfK MRI 2016 double base- and Bureau of Labor Statistics, Forbes August

7 Passionate, Quality Audience Viewers are enthusiastic and engaged 7

8 The Niche Cable Audience Is Affluent, Educated, & Professional M/F Split Female: 51% (99) Men: 49% (101) Ethnicity White: 76% (102) Black: 15% (113) Hispanic: 12% (79) Asian: 2% (77) Other: 7% (78) Age 18-24: 11% (103) 25-34: 15% (93) 35-44: 16% (98) 45-64: 37% (102) 65+: 20% (101) Marital Status Never Married: 25% (98) Married: 56% (103) Engaged: 4% (99) Children in HH Any: 39% (100) 2+: 22% (98) Home Ownership Own: 72% (105) Rent: 2% (89) Employment Employed: 60% (100) Not Employed: 40% (100) Student: 3% (103) Retired: 21% (103) Education High School Graduate: 30% (99) Some College: 20% (107) Bachelor s Degree Only: 19% (103) Master s +: 10% (98) Occupation Professional/Technical: 13% (99) Sales: 7% (103) Office/Administrative: 7% (105) MGMT/Business/Financial Ops: 11% (107) Construction / Maintenance: 5% (93) Other: 17% (97) Geographic Skew Lives in A County: 41% (99) Lives in B County: 30% (102) Lives in C County: 14% (96) Lives in D County: 15% (104) Household Income Under $25K: 14% (78) $25K-$75K: 39% (97) $75K-$100K: 14% (108) $100K-$150K: 18% (111) $150K-$250K: 12% (117) $250K+: 4% (118) Affluence Indicators Spent Over $6K on Foreign Vacations in the Last Year Spent Over $5K on Domestic Vacations in the Last Year Spent Over $200 on Fine Dining in the Past Month Spent $1,500+ on Big Ticket Household Furnishings in the Last Year $500K+ Value of Owned Home Index - Niche Cable vs. Total TV Viewer Source: GfK 2016 MRI Doublebase; % niche network viewers; Index (in parenthesis) Niche Cable Viewer vs. Total TV Viewer; Total TV Viewer Defined as Media Usage Scores- TV Total [# of ½ Hours Viewed in a Week Range (1-999)] in MRI. 8

9 Audiences Have Embraced Niche Cable Content Niche programming is among their most viewed content & is an important part of their lives, from social causes to events Viewership has increased by 2.5x since 2015 & it has been the most-watched business news channel for the last year The Tennis Channel has coverage of all four Grand Slams: Australian Open, French Open, Wimbledon, US Open Viceland s viral nightly hit Desus & Mero, which is averaging 555K viewers a week, hosts guests like Rachel Maddow and Sean Diddy Combs The Oprah Winfrey Network is the #1 cable network in prime among Black women Over 65,000 people attend the Cooking Channel & Food Network s annual South Beach Wine & Food Festival UPtv has brought attention to bullying by creating PSAs & educating with an anti-bullying campaign Source: Fox Business Network- AdWeek, October 2017; Tennis Channel- BusinessWire, May 2015; Viceland-Washington Post, July 2017; OWN- Shadow and Act, April 2017; Cooking Channel- PR Newswire, April

10 Niche Cable Viewers Spend Nearly 7x More Time Watching Than They Did 10 Years Ago While the number of measured niche cable networks more than doubled over the last 10 years (driving up total time spent viewing), the time spent increased by nearly 7x, demonstrating the vibrancy of the content Total Monthly Minutes Watching Niche Cable Content P Billion 35 Billion Number of Niche Cable Networks Measured: Source: Nielsen Npower R&F Time Period Report, Persons 2+, Playback Time Period: Live +7 Days (+168 hours) TV Linear with VOD, Measurement Interval: 7/1/07-7/31/07 vs. 7/1/17-7/31/17. Network set reflects the identified 2017 niche cable networks, however not all were measured in the 2007 time period. 10

11 Niche Cable Viewers Spend More Time Watching Their Programming Than They Do Consuming Similar Content On Popular Digital Platforms Total Audience (Monthly Minutes per Visitor) on Top Enthusiast Platforms Music LGBTQ Home Cooking Sports Beauty / Lifestyle Family / Kids Film News / Finance #1 LGBTQ Site #1 Home Site #1 Food Site #5 Sports Site #1 Beauty Site #3 Kids Site #1 Film Site #1 Finance Site #3 Music Site Niche Cable Network Average Sources: TV data Nielsen NPower, Total Audience 2+, Total Day; July 2017, 241 Billion minutes based upon P2+ cume total minutes for the defined Niche Cable networks herewith; Niche Cable Network Average minutes per month based upon AA Average Minutes for the defined Niche Cable networks. Digital Data - comscore MediaMetrix Multi-Platform, Total Audience = Desktop P2+ & Mobile P18+. Site rank based on Total Unique Users July 2017, Sports: #1-4 sites are TV Brands; Kids: #1-Roblox.com, #2-Disney; Music: #1-Pandora, #2-Spotify; Data reflects Average Time Spent per Visitor on those sites. 11

12 Niche Cable Programming Captivates Consumers And Satisfies Their Innate Curiosity Resulting In 87% Live Viewing Specialized cable content allows viewers to immediately indulge their wide variety of interests & passions - and inspires new ones. While most TV is watched live, live viewing for niche cable is greater, especially for Millennials. Television Primetime Viewing: % Live vs. Time-Shifted 13% 15% 17% 21% 19% 26% 87% 85% 83% 79% 81% 74% Total Pop Millennials Total Niche Cable Total Pop Millennials Total Ad-Supported Cable Total Pop Broadcast TV Millennials Source: Nielsen NPower R&F Time Period Report, Primetime, Live vs. Live+7, Niche Networks, ad-supported cable TV, broadcast TV, 7/1/2017 7/31/2017. P2+ & P18-34 (Millennials). Cable networks are those niche networks defined within, on slide 5. 12

13 And So It Is No Surprise That, Contrary To Popular Belief, HH Subscriptions For Niche Cable Networks Are Holding Steady Much has been made of the consumer s desire for Skinny Bundles (reducing the number of networks in efforts to streamline costs and complexity), however household subscriptions for niche cable networks has remained largely unchanged 10% 5% 0% -5% +3% % Change in HH subs for Niche Cable networks -1% flat In fact, looking ahead, subscriptions are not predicted to decline -10% 2014 vs vs vs Source: 2017 SNL Kagan, Total HH Subscriber count US Cable Networks (data dated July 2017); Niche network set as defined on slide 5. 13

14 Viewers Thirst For More Niche Content Off Screen, As Well The average likes for a niche cable network page increased 62% vs. 3 years ago, indicating the vibrancy of the programming, and passion of viewers over time Average # of Facebook Likes for a Niche Cable Network page 1,600,000 1,518,348 1,400,000 1,200,000 1,000, , , , , , Source: Network list reflects the identified 2017 niche cable networks, with the exception of the following 8 for which historical 2014 data wasn t available - Baby First TV, BeINSport, Discovery Family Channel, Discovery Life Channel, Pop, RFD TV, UP, Viceland; 2017 data sourced in September 2017; 2014 sourced from historical analysis. 14

15 Reach Driver Niche networks offer exceptional incremental reach opportunities and are often the largest enthusiast voice among media channels 15

16 Across A Variety Of Enthusiast Targets, Niche Cable Offers Greater Reach Than Top Ad Tech Sites Or Publications Reach of Niche Cable and Top Enthusiast Properties Cooking Cooking Channel Delish.com (#3) Food & Wine Magazine 934,971 18,639,492 30,751,000 Sports Fox Sports 2 SBNation.com (#5) Sports Illustrated 2,700,000 13,206,000 27,310,000 Home DIY network CountryLiving.com(#1) Better Homes & Gardens 11,006,000 7,600,000 31,035,000 LGBTQ LOGO Advocate.com (#1) Out Magazine 2,481, ,000 19,669,000 Family/Kids Nick Jr. Roblox.com (#1) Family Fun Magazine 2,100,000 31,062,000 41,037,000 Film Sundance TV RottenTomatoes.com (#3) Entertainment Weekly 1,500,000 11,748,000 37,117,000 Sources: Nielsen NPower Live+7, Total Day, P2+, 7/1/17-7/31/17, Linear with VOD; comscore MediaMetrix Multi-platform, July 2017 Total Unique Visitors, Desktop 2+ Mobile 18+, Note, Cooking: #1-Allrecipes, #2-Food Network; Sports: #1-4 are TV Brands; Film: #1 site IMDB, #2 site Fandango owned by NBCUniversal. 16

17 HLN FOX Business The Young Turks USA TODAY The New York Times The Guardian CBC News Cooking Channel First We Feast Food Wishes emmymadeinhapan Allrecipes Rosanna Pansino P2+ monthly cume reach P2+ monthly cume reach Think YouTube Enthusiast Channels Offer More Reach & Engagement? Niche Cable Networks Outperform Across a Variety of Genres VAB analyzed the channels listed within the Google Preferred network the self-described top 5% of YouTube s inventory across a variety of content verticals. Within each vertical, the top 5 channels (by audience reach) were compared to the niche Cable network(s) of that genre. Niche Cable offers significantly larger audiences (reach) and time spent (engagement). Niche Cable Network Google Preferred YouTube channel News Cooking 14.3B Minutes 224.7M Minutes 2.8B Minutes 151.3M Minutes 50,000,000 30,000,000 40,000,000 30,000,000 20,000,000 20,000,000 10,000,000 10,000, Source: Google Preferred channel list: (data as of 11/13/17) TV data - Nielsen Npower R&F Time Period Report, Persons 2+, Playback Time Period: Live +7 Days (+168 hours) TV Linear with VOD, Measurement Interval: 7/ / , Time Spent per Month YT channel data - comscore, VideoMetrix Multi-Platform, September 2017, Reach = Total Audience, Video Type Content; Time Spent = Total Minutes per Month; TV-content channels were excluded from this exercise (e.g. YouTube) 17

18 Fox Sports 2 NFL Network GoPro Camera RM Videos Braille Skateboarding Ride Channel Thrasher Magazine Science Nat Geo Wild TED Talks Talltanic Pictures The King of Random AsapSCIENCE Seeker P2+ monthly cume reach P2+ monthly cume reach Think YouTube Enthusiast Channels Offer More Reach & Engagement? Niche Cable Networks Outperform Across a Variety of Genres VAB analyzed the channels listed within the Google Preferred network the top 5% of YouTube s inventory across a variety of content verticals. Within each vertical, the top 5 channels (by audience reach) were compared to the niche Cable network(s) of that genre. Niche Cable offers significantly larger audiences (reach) and time spent (engagement). Niche Cable Network YouTube channel Sports Science 14.2B Minutes 55.4M Minutes 13B Minutes 306.3M Minutes 30,000,000 50,000,000 20,000,000 40,000,000 30,000,000 10,000,000 20,000,000 10,000, Source: Google Preferred channel list: (data as of 11/13/17) TV data - Nielsen Npower R&F Time Period Report, Persons 2+, Playback Time Period: Live +7 Days (+168 hours) TV Linear with VOD, Measurement Interval: 7/ / , Time Spent per Month YT channel data - comscore, VideoMetrix Multi-Platform, September 2017, Reach = Total Audience, Video Type Content; Time Spent = Total Minutes per Month; TV-content channels were excluded from this exercise (e.g. YouTube) 18

19 Niche Cable Fills The Gap Of Those Not Watching The Large Cable Network In The Genre Relying upon the major Cable network to cover off each genre often means leaving audience on the table Incremental Reach Opportunity 73% 53% 36% 36% 34% 27% 21% 27% of the Niche Cable film audience isn t watching FX of the Niche Cable family/kids entertainment audience isn t watching of the Niche Cable news audience isn t watching of the Niche Cable music audience isn t watching of the Niche Cable science/nature/tech audience isn t watching of the Niche Cable home improvement audience isn t watching of the Niche Cable food audience isn t watching of the Niche Cable sports audience isn t watching ESPN Source: GfK MRI duplication analysis Doublebase; Niche audience segment designations as per slide 5 19

20 In Addition, With Moderate Audience Duplication Among Niche Networks, There Is Strong Opportunity To Build Incremental Audience While audience duplication varies among the networks, a weighted average based on audience size demonstrates that networks within a genre often have unique viewers. This offers advertisers incremental reach as networks are added to a plan. % Network Audience Duplication Within The Genre Sports: 27% Film: 22% Kids Entertainment: 25% News: 15% Music: 28% Home & Food: 30% Science: 25% For example, on average, only 28% of the viewers of one music network are watching another music network Source: GfK MRI duplication analysis doublebase; Duplication weighted to audience size for each network within the genre 2

21 In Fact, A Media Plan That Includes Niche Cable Will Often Drive More Reach Than A Plan Utilizing Only The Large Cable Network Of The Genre At the same budget, a hybrid plan that includes a mix of large & niche cable delivered 20% more reach and 30% more impressions than a plan with only the large network in each genre Genre Hybrid Plan (Large + Niche Networks) Sports News Food/Home Family/Kids Large Sports Cable Network + Large News Cable Network + Large Food Cable Network + Large Family Cable Network + General Entertainment Large Entertainment Network + Source: Media Impact; 2016 A25-54 Cable :30 CPP estimates reflect daypart mix of 50% Prime, 10% Early Morning, 10% Day, 10% Late Fringe, 20% Weekend; Large Cable Enthusiast Network must have at least double the average audience of a niche cable network 21

22 Niche Networks Share of Impressions on Cable Have Grown Considerably in the Past 10 Years Indicating Their Vibrancy While the number of measured niche cable networks more than doubled over the last 10 years (driving up total available impressions), the increase in the share of niche cable impressions slightly outpaced it % Share of Total Ad-Supported Available Impressions (C3) vs % 22% 91% 78% '06-'07 Large Cable Networks '16-'17 Niche Networks Number of Niche Cable Networks Measured: Source: Nielsen Ad Intel, Persons 2+, C3 IMPs, Total Day, Q Q vs. Q Q Time Period Based on Broadcast Calendar. Niche Cable Network set reflects the identified 2017 niche cable networks, however not all were measured in the 2007 time period. 22

23 Impact & Value The passion consumers have for the content delivers value for advertisers as viewers are likely to engage with the brand messaging they see within it 23

24 Niche Networks Hold Appeal For A Variety of Advertisers Seeking Premium Content, Audience Targeting, And Incremental Reach Advertisers span categories, brand lifestages, target audiences, and business models Insurance/Financial Telecom Restaurants Beverages Retail Pharmaceutical Automotive Goods & Services Electronics Food Source: Nielsen Ad*Intel Chart reflects an abbreviated list of select advertisers by category. 24

25 Niche Cable Punches Above Its Weight In Its Ability To Stir Conversation and Action For Brands and Advertisers ispot data reveals that niche cable drives consumers to talk about the advertising. Niche networks show significantly more searches & social action (comments, likes, shares) relative to the investment made. This is true across a variety of advertisers. Niche Cable Impact Index = % social & search activity attributed to niche cable networks / % spend on niche cable networks (of advertiser s total social/search activity attributed to cable) (of advertiser s total cable spend) Niche Cable Impact Index (Actions outpaced investment by 243%) Niche Cable Impact Index A flat index indicates spend is equal to social/search activity. The greater the index, the more social/search activity relative to spend. Source: Nielsen Ad Intel, National Cable TV Spend, 1/1/ /31/2016; Digital actions based on ispot.tv and reflects TV commercial-related searches (Google, Bing, Yahoo!), social actions (posts, likes, shares and comments related to TV ads on Facebook, Twitter, YouTube, ispot.tv). Digital actions are correlated to TV ad airing data. 25

26 Why Niche Cable? Superior Targetability Niche cable offers marketers the opportunity to target specific and active enthusiast audiences via the specialized content that they crave Passionate, Quality Audience Viewers are enthusiastic and engaged, spending over 240 Billion minutes with the programming each month Reach Driver Niche cable builds incremental reach by adding in unique audiences and often serves as the authoritative enthusiast voice Plan Impact & Value Niche cable audiences make significantly more advertising-related searches & social actions (comments, likes, shares) relative to the ad investment made 26

27 Related VAB Reports 27

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