Global Consumer Media Usage & Exposure Forecast

Global Consumer Media Usage & Exposure Forecast 2014-18 Most Credible, Consistent, Actionable Intelligence on Time Spent with Media Report #2 of 3 in PQ Media s Global Media & Technology Forecast Series 2014 Comprehensive, In-Depth Data & Insights by Country, Sector, Platform & Social Generation Country, Platform, Channel 4 Global Regions 15 Leading Countries 3 Digital Media Platforms 21 Digital Media Channels 8 Traditional Media Platforms Usage Definitions & Segmentation Rankings by Region & Country 2008-13 Actuals 2014-18 Forecasts 2 Demographic Breakout Gender Generations igen Millennials Gen X Boomers Great Gen 15 Leading Markets Australia Brazil Canada China France Germany India Italy Japan Mexico Russia South Korea Spain United Kingdom United States

Copyright PQ Media s Global Consumer Media Usage o& Exposure Forecast 2014-18 Report #2 of 3 in Global Media & Technology Forecast Series 2014 Management Team Patrick Quinn, President/CEO (pquinn@pqmedia.com) Leo Kivijarv, Ph.D., Vice President/Research (lkivijarv@pqmedia.com) Except by express prior written permission from PQ Media LLC, no part of this work may be copied or publicly distributed, displayed or disseminated by any means of publication or communication now known or developed hereafter, including in or by any: (i) directory or compilation or other printed publication; (ii) information storage or retrieval system; (iii) electronic device, including any analog or digital visual or audiovisual device or product. PQ Media will protect and defend its copyright and all its other rights in this publication, including under the laws of copyright, misappropriation, trade secrets and unfair competition. All information and data contained in this report is obtained by PQ Media from sources that PQ Media believes to be accurate and reliable. However, errors and omissions in this report may result from human error and malfunctions in electronic conversion and transmission of textual and numeric data. As a result, PQ Media is not responsible for any potential, perceived or real negative effects, loss of revenue, loss of profits, missed forecasts or any other potential, perceived or real detrimental impacts to any individual person or business entity of any kind stemming from the use of any of the data and/or information contained in this report. Copyright PQ Media LLC 2014 All rights reserved PQ Media LLC 68 Southfield Ave 2 Stamford Landing Suite 100 Stamford, CT 06902 203.921.0368 www.linkedin.com/company/pq-media-llc https://twitter.com/pqmedia 2

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About PQ Media PQ Media is a leading provider of econometric data and strategic insights to executives in the global media, entertainment and technology industries. PQ Media employs a proprietary econometric methodology to provide clients with actionable strategic intelligence necessary to achieve their growth objectives in a fastchanging global marketplace. The PQ Medianomics research system relies on comprehensive databases, proprietary algorithmic models and exclusive industry leader panels. We track, analyze and forecast media operator revenues, end-user consumption and consumer spending across more than 100 digital, alternative and traditional media platforms and channels in leading markets worldwide. PQ MEDIA GLOBAL DIGITAL MEDIA & TECHNOLOGY RESEARCH SERIES Global Digital & Alternative Media Revenue Forecast 2014-18 Global Consumer Usage of Digital Media Forecast 2014-18 Global Consumer Spending on Digital Media Content & Technology Forecast 2014-18 PQ Media applies its proven econometric methodology and multi-channel research expertise to a new three-report annual Series to help executives in the global media, entertainment and technology industries gain a deeper understanding of the world s transforming media economies. This three-report Series provides the first holistic view of the world s media economies, focusing on digital & alternative media and profiling the 15 leading countries, including the US, which account for more than 85% of global advertising and marketing revenues. Each report in the Series provides comprehensive 5-year historical tracking and 5- year forecasts for one of the three critical and interrelated media ecosystem growth components: media operator revenues, consumer usage of digital media and consumer spending on digital content and technology worldwide. Series definitions, sectors, platforms and channels remain consistent across each Report making it easy to quickly compare growth patterns, drivers and performance in each country s advertising & marketing landscape. Previous reports include:: Global Digital Out-of-Home Media Forecast 2014-18 Brazil Media & Technology Outlook 2014 China Media & Technology Outlook 2014 Global Consumer Exposure to Digital Out-of-Home Worldwide 2014 Global Digital & Alternative Media Revenue Forecast 2013-17 Global Consumer Usage of Digital Media Forecast 2013-17 Global Consumer Spending on Digital Media Content & Technology Forecast 2013-17 PQ MEDIA ALTERNATIVE MEDIA RESEARCH SERIES Global Digital Out-of-Home Media Forecast 2013-2017 Top 100 Brands in Social Media Worldwide 2013 Global Product Placement Spending Forecast 2012-2016 Global Digital Out-of-Home Media Forecast 2012-2016 US Mobile & Social Media Forecast 2012-2016 Global Digital Out-of-Home Media Forecast 2011-2015 Global Branded Entertainment Marketing Forecast 2010-2014 Social Media Sponsorships Forecast 2010-2014 Global Digital Out-of-Home Media Forecast 2010-2014 Word-of-Mouth Marketing Forecast 2009-2013 Global Digital Out-of-Home Media Forecast 2008-2012 Political Media Buying 2008 Alternative Media Forecast 2008-2012 Branded Entertainment Forecast 2008-2012 4

About PQ Media (cont.) PQ MEDIA CLIENTS PQ Media has accurately predicted key trends, insights and outcomes that have influenced strategic plans, investment parameters and tactical approaches for some of the world s most respected media companies, media agencies, financial institutions, and research & consulting firms: Media Companies Associated Press NBC Universal News Corp Time Warner Turner Broadcasting Financial/Consulting Bain Capital Credit Suisse Deutsche Bank GE Commercial Finance JP Morgan Agencies Dentsu Havas Media Hill Holiday Kinetic Starcom Worldwide Technology/Telecom AT&T Cisco Systems Microsoft NEC Qualcomm Research/Consulting Boston Consulting Group McKinsey & Co. Millward Brown Nomura Research Institute Yano Research Institute REQUEST A NO OBLIGATION PREVIEW Success in today s fast-changing media marketplace requires timely, accurate and actionable strategic intelligence. Let PQ Media help your organization move towards a successful digital media future with a no obligation situation review. Please contact Patrick Quinn, President, at pquinn@pqmedia.com or Leo Kivijarv, VP/Research at lkivijarv@pqmedia.com. PQ Media LLC 68 Southfield Ave 2 Stamford Landing, Ste 100 Stamford, CT 06902 203.921.0368 www.facebook.com/#!/pqmedia www.linkedin.com/company/pq-media-llc https://twitter.com/pqmedia 5

Table of Contents (Tables/Charts in Italics) 2 Copyright 3 Single Seat Licensing Agreement Terms 4-5 About PQ Media 6-17 Table of Contents 18 PQ Media Methodology Statement 19-25 Definition & Segmentations 26-28 Digital Media Subscriber Tables 29-41 Global Consumer Usage of Digital Media 30 Global: Overall Consumer Usage of Digital Media Digital Media Share of Total Media Usage Digital Media vs. Traditional Media Usage 31 Global Consumer Media Usage of Digital Media by Gender 32 Global Consumer Media Usage of Digital Media by Generation 33 Global Consumer Usage of Digital Media Results 2008-13 34 Global Consumer Usage of Digital Media Forecast 2013-18 35 Market Rank by Digital Media Usage Hours Per Week Global Consumer Use of DM Rank: 2008, 2013, 2018 36 Market Rank by Growth Total Digital Media Usage Global DM Usage Growth Rank: 2013, 2008-13, 2013-18 37 Market Rank by Digital Media Share of Total Media Usage Global DM Usage Share Rank: 2008, 2013, 2018 38 Global Consumer Usage of Digital Media by Market 2013 39 Global Consumer Usage of Digital Media by Market 2018 40-65 Global Consumer Use by Digital Media Platforms 41-45 Global Consumer Use of Internet Media 42 Global Internet Media Usage & Growth Internet Media Usage Hours Per Week & Growth 2008-18 43 Global Internet Media Usage Results 2008-13 Share of Internet Media Usage by Channel 2013 44 Global Internet Media Usage Forecast 2013-18 Share of Internet Media Usage by Channels in 2018 45 Market Rank by Hours Per Week Internet Media Internet Media Usage Rank: 2008, 2013, 2018 6

Table of Contents (Tables/Charts in Italics) 46 Market Rank by Growth Internet Media Usage Internet Media Usage Growth Rank: 2013, 2008-13, 2013-18 47-52 Global Consumer Use of Mobile Media 48 Global Mobile Media Usage & Growth Mobile Media Usage Hours Per Week & Growth 2008-18 49 Global Mobile Media Usage Results 2008-13 Share of Mobile Media Usage by Channel 2013 50 Global Mobile Media Usage Forecast 2013-18 Share of Mobile Media Usage by Channels in 2018 51 Market Rank by Hours Per Week Mobile Media Mobile Media Usage Rank: 2008, 2013, 2018 52 Market Rank by Growth Mobile Media Usage Mobile Media Usage Growth Rank: 2013, 2008-13, 2013-18 53-58 Global Consumer Use of Other Digital Media 54 Global Other Digital Media Usage & Growth Other DM Usage Hours Per Week & Growth 2008-18 55 Global Other Digital Media Usage Results 2008-13 Share of Other Digital Media Usage by Channel 2013 56 Global Other Digital Media Usage Forecast 2013-18 Share of Other Digital Media Usage by Channels in 2018 57 Market Rank by Hours Per Week Other Digital Media Other Digital Media Usage Rank: 2008, 2013, 2018 58 Market Rank by Growth Other Digital Media Usage Other DM Usage Growth Rank: 2013, 2008-13, 2013-18 59-65 Consumer Use of Digital Media by Channels 60 Global Rank of DM Usage by Channel Hours Per Week 2008 Rank of Digital Media Use by Channels 2008 61 Global Rank Digital Media Usage by Channel 2008-13 CAGR Rank Global DM Usage by Channel - 2008-13 CAGR 62 Global Rank of DM Usage by Channel Hours Per Week 2013 Rank of Digital Media Use by Channels 2013 63 Global Rank Digital Media Usage by Channel 2013 Growth Rank Global DM Usage by Channel - 2013 Growth 64 Global Rank of DM Usage by Channel Hours Per Week 2018 Rank of Digital Media Use by Channels 2018 65 Global Rank Digital Media Usage by Channel 2013-18 CAGR Rank Global DM Usage by Channel - 2013-18 CAGR 7

Table of Contents (Tables/Charts in Italics) 66-184 Consumer Usage of Digital Media : 15 Leading Markets 67-98 Americas (AMER) 68 Americas Overall Consumer Use of Digital Media Region Rank Digital Media Share of Total Media Usage: AMER vs. Global 69 Americas Consumer Use of Digital Media by Gender 70 Americas Consumer Use of Digital Media by Generation 71-76 United States 72 United States Overall Consumer Use of Digital Media US Ranked Globally Digital Media Share of Total Media Usage: US vs. Global 73 United States Consumer Use of Digital Media by Gender 74 United States Consumer Use of Digital Media by Generation 75 US Consumer Use of Digital Media Results 2008-13 76 US Consumer Use of Digital Media Forecast 2013-18 8

Table of Contents (Tables/Charts in Italics) 77-82 Canada 78 Canada Overall Consumer Use of Digital Media Canada Ranked Globally Digital Media Share of Total Media Usage: Canada vs. Global 79 Canada Consumer Use of Digital Media by Gender 80 Canada Consumer Use of Digital Media by Generation 81 Canada Consumer Use of Digital Media Results 2008-13 82 Canada Consumer Use of Digital Media Forecast 2013-18 83-88 Brazil 84 Brazil Overall Consumer Use of Digital Media Brazil Ranked Globally Digital Media Share of Total Media Usage: Brazil vs. Global 85 Brazil Consumer Use of Digital Media by Gender 86 Brazil Consumer Use of Digital Media by Generation 87 Brazil Consumer Use of Digital Media Results 2008-13 88 Brazil Consumer Use of Digital Media Forecast 2013-18 9

Table of Contents (Tables/Charts in Italics) 89-94 Mexico 90 Mexico Overall Consumer Use of Digital Media Mexico Ranked Globally Digital Media Share of Total Media Usage: Mexico vs. Global 91 Mexico Consumer Use of Digital Media by Gender 92 Mexico Consumer Use of Digital Media by Generation 93 Mexico Consumer Use of Digital Media Results 2008-13 94 Mexico Consumer Use of Digital Media Forecast 2013-18 95-98 Rest of Americas (RoAM) 96 Rest of Americas Overall Consumer Use of Digital Media Digital Media Share of Total Media Usage: RoAM vs. Global 97 Rest of America Consumer Use of Digital Media by Gender 98 Rest of America Consumer Use of Digital Media by Generation 99-138 Europe (EU) 100 Europe Overall Consumer Use of Digital Media Region Rank Digital Media Share of Total Media Usage: EU vs. Global 10

Table of Contents (Tables/Charts in Italics) 101 Europe Consumer Use of Digital Media by Gender 102 Europe Consumer Use of Digital Media by Generation 103-108 United Kingdom 104 United Kingdom Overall Consumer Use of Digital Media UK Ranked Globally Digital Media Share of Total Media Usage: UK vs. Global 105 United Kingdom Consumer Use of Digital Media by Gender 106 United Kingdom Consumer Use of Digital Media by Generation 107 UK Consumer Use of Digital Media Results 2008-13 108 UK Consumer Use of Digital Media Forecast 2013-18 109-114 Germany 110 Germany Overall Consumer Use of Digital Media Germany Ranked Globally Digital Media Share of Total Media Usage: GER vs. Global 111 Germany Consumer Use of Digital Media by Gender 112 Germany Consumer Use of Digital Media by Generation 11

Table of Contents (Tables/Charts in Italics) 113 Germany Consumer Use of Digital Media Results 2008-13 114 Germany Consumer Use of Digital Media Forecast 2013-18 115-120 France 116 France Overall Consumer Use of Digital Media France Ranked Globally Digital Media Share of Total Media Usage: France vs. Global 117 France Consumer Use of Digital Media by Gender 118 France Consumer Use of Digital Media by Generation 119 France Consumer Use of Digital Media Results 2008-13 120 France Consumer Use of Digital Media Forecast 2013-18 121-126 Italy 122 Italy Overall Consumer Use of Digital Media Italy Ranked Globally Digital Media Share of Total Media Usage: Italy vs. Global 123 Italy Consumer Use of Digital Media by Gender 124 Italy Consumer Use of Digital Media by Generation 125 Italy Consumer Use of Digital Media Results 2008-13 126 Italy Consumer Use of Digital Media Forecast 2013-18 12

Table of Contents (Tables/Charts in Italics) 127-132 Spain 128 Spain Overall Consumer Use of Digital Media Spain Ranked Globally Digital Media Share of Total Media Usage: Spain vs. Global 129 Spain Consumer Use of Digital Media by Gender 130 Spain Consumer Use of Digital Media by Generation 131 Spain Consumer Use of Digital Media Results 2008-13 132 Spain Consumer Use of Digital Media Forecast 2013-18 133-138 Russia 134 Russia Overall Consumer Use of Digital Media Russia Ranked Globally Digital Media Share of Total Media Usage: Russia vs. Global 135 Russia Consumer Use of Digital Media by Gender 136 Russia Consumer Use of Digital Media by Generation 137 Russia Consumer Use of Digital Media Results 2008-13 138 Russia Consumer Use of Digital Media Forecast 2013-18 13

Table of Contents (Tables/Charts in Italics) 139-142 Rest of Europe (RoEU) 140 Rest of Europe Overall Consumer Use of Digital Media Digital Media Share of Total Media Usage: RoEU vs. Global 141 Rest of Europe Consumer Use of Digital Media by Gender 142 Rest of Europe Consumer Use of Digital Media by Generation 143-146 Middle East & Africa (ME&A) 144 Middle East & Africa Overall Consumer Use of Digital Media Region Rank Digital Media Share of Total Media Usage: ME&A vs. Global 145 Middle East & Africa Consumer Use of Digital Media by Gender 146 Mid. East & Africa Consumer Use of Digital Media by Generation 147-184 Asia Pacific (APAC) 148 Asia Pacific Overall Consumer Use of Digital Media Region Rank Digital Media Share of Total Media Usage: APAC vs. Global 149 Asia Pacific Consumer Use of Digital Media by Gender 14

Table of Contents (Tables/Charts in Italics) 150 Asia Pacific Consumer Use of Digital Media by Generation 151-156 China 152 China Overall Consumer Use of Digital Media China Ranked Globally Digital Media Share of Total Media Usage: China vs. Global 153 China Consumer Use of Digital Media by Gender 154 China Consumer Use of Digital Media by Generation 155 China Consumer Use of Digital Media Results 2008-13 156 China Consumer Use of Digital Media Forecast 2013-18 157-160 Japan 158 Japan Overall Consumer Use of Digital Media Japan Ranked Globally Digital Media Share of Total Media Usage: Japan vs. Global 159 Japan Consumer Use of Digital Media by Gender 160 Japan Consumer Use of Digital Media by Generation 161 Japan Consumer Use of Digital Media Results 2008-13 162 Japan Consumer Use of Digital Media Forecast 2013-18 15

Table of Contents (Tables/Charts in Italics) 163-166 South Korea 164 South Korea Overall Consumer Use of Digital Media South Korea Ranked Globally Digital Media Share of Total Media Usage: SK vs. Global 165 South Korea Consumer Use of Digital Media by Gender 166 South Korea Consumer Use of Digital Media by Generation 167 South Korea Consumer Use of Digital Media Results 2008-13 168 South Korea Consumer Use of Digital Media Forecast 2013-18 169-174 Australia 170 Australia Overall Consumer Use of Digital Media Australia Ranked Globally Digital Media Share of Total Media Usage: AUS vs. Global 171 Australia Consumer Use of Digital Media by Gender 172 Australia Consumer Use of Digital Media by Generation 173 Australia Consumer Use of Digital Media Results 2008-13 174 Australia Consumer Use of Digital Media Forecast 2013-18 16

Table of Contents (Tables/Charts in Italics) 175-180 India 176 India Overall Consumer Use of Digital Media India Ranked Globally Digital Media Share of Total Media Usage: India vs. Global 177 India Consumer Use of Digital Media by Gender 178 India Consumer Use of Digital Media by Generation 179 India Consumer Use of Digital Media Results 2008-13 180 India Consumer Use of Digital Media Forecast 2013-18 181-184 Rest of Asia Pacific (RoAP) 182 Rest of Asia Pacific Overall Consumer Use of Digital Media Digital Media Share of Total Media Usage: RoAP vs. Global 183 Rest of Asia Pacific Consumer Use of Digital Media by Gender 184 RoAP Consumer Use of Digital Media by Generation 17

EXECUTIVE SUMMARY Global Consumer Digital Media Usage 2013 By Country, Platform, Gender & Generation With Traditional Media Comparisons 18

Global: Consumer Usage of Digital Media Results 2008-13 Global consumer digital media usage averaged 5.79 hours per week in 2013, representing a 13.2% increase over 2012, propelled by an increase in smartphones, broadband access, computer tables, and over-the-top (OTT) video services. In comparison, traditional media usage rose only 1.3 % to 37.99 hours weekly, mainly driven by a rise in television viewing as print media usage continues to drop. Overall global media consumption increased 2.8% to 43.78 hours per week, or 6 hours, 15 minutes and 16 seconds daily. Digital media accounted for 13.2% of all media usage in 2013, up from 7.5% in 2008. Both genders posted a 13.4% increase in digital media consumption during the year, with men outpacing women in usage at 6.11 hours a week versus 5.57 hours weekly for women, or about 5 minutes a day. Meanwhile, GenX ranked first in digital media consumption among the generation, averaging 7.36 hours weekly, while the igens ranked last at 4.54 hours per week, with many having limited access to digital devices under parental supervision. The Great Gens ranked first in digital media usage growth, rising at a 15.9% rate, with all five generations posting a double-digit gain during the year. The Great Gens also ranked first in traditional media usage at 54.77 hours weekly, more than triple the 17.64 hours that igens spend with traditional media weekly. Conversely, the igens have the highest digital media consumption as a share of overall usage, reaching 20.5% more than double the Great Gen s 9.1% share. A number of factors influenced growth of global mobile usage in 2013. First, smartphone penetration shot up as telecom providers in developed markets like the US, dropped rates due to competitive pressures. Second, in many markets, certain telecom providers, such as AT&T in the US, lost exclusive rights to sell and service iphones, driving up interest across multiple operators when the latest upgrade was released during the year. Third, in emerging markets, such as Brazil and Russia, governments accelerated initiatives to upgrade the telecommunications infrastructures in advance of hosting even year sporting events, such as the Winter Olympics and FIFA World Cup. There were a number of factors that also pushed OTT video growth in 2013. First, Netflix continued its global expansion begun in Scandinavian markets the previous year, targeting larger markets like Germany. Second, Netflix and some of its competitors have begun producing original programming, prompting the trend of binge watching an entire series during a weekend when the series is first released. Third, new video-on-demand (VOD) services are being offered globally by Pay TV providers as a proactive reaction to Netflix entering their markets, particularly in Western Europe. Fourth, broadcast and cable networks are also reacting to the growing Netflix subscription base by offering original episodes on free VOD the day after airing on the network, some of which is also driven by the inclusion of advertising that can not be skipped, compared with watching the same episode that was saved on a digital video recorder (DVR). Videogame usage also generate a surge in usage in 2013, more so in the latter months when the new Xbox and PlayStation consoles were released with accompanying new software titles, although the rise was limited mainly to North American as the global release did not take place until early 2014. As a result, we expect a significant bump in videogame usage during the next few years as new titles hit the market globally, and includes an expected rise in massive multi-player online game (MMOG) extensions of the most popular franchise titles. 19

Global: Consumer Usage of Digital Media by Market 2013 Consumers in four of the world s 15 largest media economies averaged more than 15 hours per week using digital media in 2013, led by the United Kingdom at 16.87 hours, South Korea (16.58 hours), Australia (16.48 hours) and Canada (15.15 hours), with the US just missing out on the benchmark by 5 minutes (14.92). Several commonalities exist among these five markets that support the transition to digital media and heavy consumer usage of digital platforms and their media channels: high double-digit penetration rates for broadband internet access; over 50% penetration rates for smartphones; growing demand for computer tablets and ereaders; young men who are heavy console videogamers; a range of devices and options to engage with OTT video; and advanced markets for DOOH networks and signage operating at indoor and outdoor locations.. The prime example is South Korea, where broadband penetration exceeds 100% as dial-up access has not been available in nearly a decade. Conversely, emerging BRIC countries, as well as Mexico, lag the broader digital media market due to relatively weak telecommunications infrastructures, some of which have held mobile spectrum auctions within the past few years, limiting the opportunities for consumers to upgrade to 4G smartphones with faster download speeds for mobile access to social networks and video content. But low penetration rates in emerging markets, such as the BRIC nations, have translated into their governments and telecom operators scrambling to invest in technology upgrades and network expansions, in some instances plans being accelerated because the country hosted a world event, such as Winter Olympics in Russia and FIFA World Cup in Brazil in 2014. The technology upgrades, along with a growing middle class are fueling strong double-digital increases, led by Brazil at 21.1% in 2013, followed by Russia (18.5%), India (17.6%), Italy (16.4%) and Mexico (15.6%). Accordingly, the more developed global media economies have solid, but tamer growth rates, such as the US, where consumer time spent with media grew at an average weekly rate of 6.9% in 2013. While digital media s share of total media consumption favors the developed markets, the rankings are also impacted by how much a given population and the various generations therein remain loyal to traditional media. For example, Japanese consumers are the heaviest viewers of live television, logging almost five hours daily, and Brazilian consumers love telenovelas on television, with many episodes yet to be transferred to digital platforms. Thus, the market leader is South Korea, with digital media accounting for 29.3% of all media usage in 2013, followed by Australia (26.6%), United Kingdom (25.1%), United States (23.5%) and France (23.2%). The only leading global market of the top 15 that has yet to exceed a 10% share is India with 7.7% in 2013. About 70% of India s population lives in rural communities or slums within major cities, making it difficult for the government and telecom operators to provide more advanced digital technology and media services.. 20

Key Global Consumer Digital Media Usage Datasets Global (Avg. Hours per Week) CAGR CAGR Digital Media Platform 2008 2013 2008-13 2018 2013-18 Internet Media (9 Channels) Avg. Hours per Week 1.60 2.58 3.61 YoY Growth % 9.3% 10.0% 4.2% 7.0% % Share 53.5% 44.5% 37.6% Mobile Media (9 Channels) Avg. Hours per Week 0.35 1.35 2.96 YoY Growth % 24.0% 30.8% 13.4% 17.0% % Share 11.8% 23.3% 30.8% Other Digital Media (3 Channels) Avg. Hours per Week 1.04 1.86 3.03 YoY Growth % 11.8% 12.3% 7.9% 10.2% % Share 34.8% 32.2% 31.6% Total Consumer Digital Media Usage Avg. Hours per Week 3.00 5.79 9.60 Growth % 13.2% 14.0% 8.1% 10.6% Source for all charts: PQ Media Global 15% Global 40% 30% 20% 10% 0% 2008 09 10 11 12 13 14 15 16 17 2018 igen Millennials Gen X Boomers Great Gen Global Digital Media Share of Total Media Usage 100% 10% 5% 0% -5% 2009 10 11 12 13 14 15 16 17 2018 Digital Media Usage Traditional Media Usage 75% 50% 25% 0% 92.5% 86.8% 80.5% 7.5% 13.2% 19.5% 2008 2013 2018 Digital Media Share Traditional Media Share 21

Global Share of Digital Media Platforms by Channel in 2013 Share of Internet Media Usage by Channel in 2013 Share of Mobile Media Usage by Channel in 2013 Share of Other Digital Media Usage by Channel in 2013 Online Social Media Online Video Online Games Online Audio Online Search & E-Mails Online News & Information e-books, Directories & Databases e-commerce & Other Content & Data Online Periodicals & Serials Source for all charts: PQ Media Mobile Social Media Mobile Search & Texts Mobile Games Mobile Video m-commerce & Other Content & Data Mobile News & Information m-books, Directories & Databases Mobile Periodicals & Serials Mobile Audio Over-the-Top (OTT) Video Digital Out-of-Home & Satellite Radio Console, PC & Handheld Games 22

Market Rank by Digital Media Usage, Growth & Share in 2013 Average Hours Per Week 2013 Growth vs. 2012 Digital Media Share of Total Usage Market HPW Market % Growth Market % Share United Kingdom Brazil South Korea South Korea Russia Australia Australia India United Kingdom Canada Italy United States United States Mexico France France China Canada Germany Canada Italy Japan Spain Spain Italy United Kingdom Germany Spain Germany Japan Russia South Korea Russia Brazil France Mexico Mexico Japan Brazil China Australia China India United States India Source: PQ Media 23

EXECUTIVE SUMMARY PQ Media Methodology Definitions & Segmentation 24

PQ Media Methodology Statement PQ Media has used a proprietary and proven econometric methodology, PQ Medianomics, for more than a decade to track, analyze and forecast key market trends, growth drivers and outcomes in more than 100 digital, alternative and traditional media platforms and channels in every leading country worldwide. PQ Media s goal is to deliver actionable strategic intelligence to clients so they can plan more effectively and ultimately achieve their growth objectives. Our analysts monitor over 2,500 media, entertainment and technology industry data sources, which feed our SpendTrak and UsageTrak databases, providing the quantitative foundation for our proprietary algorithmic models. These models are modified based on input from our exclusive Global Opinion Leader Panel of high-level executives, as well as important shifts our analysts identify in domestic markets, including political, economic, social and technological. Consistent industry definitions and media segmentation by country permit triangulation of multichannel data, resulting in the only holistic cross-channel view of media operator revenues, consumer media usage, and consumer spending on media and technology. Specific to this Report, PQ Media s digital media usage methodology is a groundbreaking approach designed to be unique in the interest of providing our clients with the most comprehensive, consistent and actionable media consumption data available on the market. The data contained in this Report and the detailed datasets provided in the Companion Excel Workbook are unique in several key aspects: 1. This is the first media consumption research to study the entire population of end users worldwide for all ages (0+), which contrasts with the traditional focus on either 12+ or 18+ users found in most other media usage studies. This original approach allows PQ Media to distinguish between differences in digital media usage among developed and emerging countries, as well as five cultural generation segments of the current global population. This approach permitted PQM to provide a more relevant and holistic view of a rapidly changing global media ecosystem across generations of consumers; 25

PQ Media Methodology Statement 2. Our final media usage data is presented here using average hours per week, compared with daily or annually based on feedback from our Global Opinion Leader Panel. This input indicated that a weekly view is the most actionable media usage metric for the media industry because weekly data is most often used by major advertisers and marketers to plan and buy media; 3. This Report is the first research to break out internet and mobile media usage by the 21 key media channels within each digital platform, including online video, mobile search, social media, and over-the-top video viewing, among others; 4. PQ Media included at-home digital media subscriptions, such as internet access subscriptions, but also counted subscriptions from other locations in which consumer-facing media and content is also accessed, such as entertainment venues and certain businesses at particular hours of the day. This method enabled our analysts to deliver data that is consistent across all media platforms, both digital and traditional; 5. In developing the data presented here, PQ Media took into consideration the penetration rates of digital media in each of the 15 leading global markets, the strength of the technology infrastructure in each country, the domestic economic environment and its impact on digital media and technology purchases, and the media behavior patterns of different generations. 26

Definitions & Segmentation Global Consumer Digital & Traditional Media Usage: The average number of hours per week an end user views, reads, accesses, engages, interacts with or listens to digital or traditional media content, advertising or services for personal entertainment or informational purposes, or as a result of consumer brand advertising or marketing through various media platforms and channels. PQ Media s data and analysis included in this report is specific to the average total time an individual spends each week with media content developed primarily for consumer/personal use, as opposed to business/employee use. While consumption primarily occurs in the home, digital media devices have increasingly allowed consumers to access content in many other indoor and outdoor locations. PQ Media s methodology, algorithms, data collection and analysis for this Report were based on proprietary research, experiences and exclusive input from industry leaders, which resulted in a unique approach to provide our clients with the most comprehensive, consistent and actionable global media consumption datasets available. To be consistent and to accurately reflect consumer usage of digital and traditional media by platform, channel and country worldwide, several original techniques were used. For example, we included the entire population, or universe, of end users for all ages (0+) worldwide, contrasting with the 12+ or 18+ populations, or consumers of a particular medium used in other media consumption research. As a result, PQ Media was able to distinguish between media usage of developed and emerging countries, as well as among the five major cultural generations of the population. Additionally, our final data indicates consumer media usage in average hours per week, compared with daily or annually. Input from our industry leader panel revealed that this view is the most actionable media usage metric because weekly results are most often used by major advertisers and marketers to plan and buy media. PQ Media s methodology and data differ significantly from other sources that collect and publish media usage data in the following ways: using certain technologies to capture time spent with media for a day; performing simple online surveys based on usage recall; aggregating research published by other sources to create a median outcome; only counting end users of a specific media platform or channel, which often results in inflated figures for media consumption. Digital Media Usage Platforms & Channels Internet Media Usage: Consumers accessing digital content and data (C&D) that was developed using the appropriate internet browser and coding configurations, such as html. Internet media C&D is most often, but not exclusively, consumed on computers that are tethered through access connections like cable modems, DSL/T-Lines, and dial-up, or password protected networks associated with the tethered device. Additionally, a majority of internet media C&D is consumed in enclosed locations like homes, schools and businesses. It also includes any materials that are downloaded onto a PC, and then are transferred to an online devices, such music and books. ebooks, Directories & Databases: Also known as online long-form text C&D, this content is accessed and read by consumers in multiple viewings, at times related to a specific vertical, such as cooking. The C&D can be released as a one-time product, such as a book, an annual update with new & revised information, such as yellow page listings, or updated more regularly due to the vertical s seasonality, such as professional sports databases of the league s player performance to date. It also includes online downloads of long-form text C&D that is download on PCs, but transferred to a wireless device for reading. 27

Definitions & Segmentation Internet Media Usage (cont.) ecommerce & Other Online C&D: Time spent by consumers on retail websites, including any customer reviews, with online catalogs, paying bills or checking statements online, miscellaneous websites, such as online dating services, and any emails that are not produced daily or linked to a specific brand. Online Audio: Content developed for listening online, including music downloads that can be transferred to another device, such as an mp3 player; listening to songs on a PC or laptop; tuning into on online radio station, including digital extensions of terrestrial and satellite radio stations and networks; and any audio podcasts on news and information sites, such as interviews. Online Games: Consumers playing videogames, casual games and games of chance online, including the massive multi-player online game (MMOG) extensions of console, PC and handheld videogames, as well as games developed exclusively for the internet. These games can be played individually, with friends, or with multi-player functionality that includes microtransaction components that provides advantages to players for a fee. Online News & Information: Consumers reading text-formatted digital content and data that is published online in real time, usually on a daily basis, updated when necessary, and can include news, weather, sports, public interest, analysis, opinions, expert reviews, daily e-mail newsletters, and theme-related topics, such as finance, healthcare, entertainment, travel and technology. It also includes time spent by consumers reading the online archives of the articles after the subject of the story is no longer a real-time issue. Online Periodicals & Serials: Also known as online short-form text C&D, it differs from online news & information in that the content and data are specific to a vertical market (e.g., sports, women) and its consumers are aware that is usually posted online on a designated schedule, such as weekly, bi-weekly, monthly or quarterly, often corresponding with the distribution of an accompanying print product, such as a magazine, newsletter, shopper or trader. Real-time updates might be available, particularly when the target audience expects coverage of an important event in the vertical. Online Search & email: Also known as lead generation and online business-to-consumer promotions, search and email include time spent by consumers online to find products and services, contact and location information, and/or reviews of products and services. Also included are search engines, product/service listings by vertical, and promotional and custom content distributed via email. Online Social Media: Consumer-generated content posted online, often to be shared within a certain community of friends and colleagues, or posted by brands to loyal or potentially new customers. It also includes using any video teleconferencing service to connect with a social media community. It does not include any content originally posted to an online social media site, which has gone viral after being highlighted by a third-party source. It also does not include social media posted or viewed using a wireless device, which is included in the Mobile Social Media category. Online Video: Accessing, viewing and/or downloading motion-based content including repurposed TV programs, news, sports, films, trailers, webisodes, video podcasts, and consumer-generated video that goes viral after being highlighted by a social media website or other third-party publisher. 28

Definitions & Segmentation Mobile Media Usage: Consumers accessing digital content and data that was developed using the appropriate mobile browser and coding configurations, such as WAP 2.0. Mobile media C&D is most, but not exclusively, consumed using telecommunications data plans or external WiFi networks, although consumers can use the networks associated with tethered devices referenced in internet media usage. Mobile media C&D can be consumed in any location, but is most often associated with accessing the materials while outside the home, such as while commuting, near or in local retail outlets and close to entertainment establishments, like bars and sporting arenas. It does not include accessing internet C&D using wireless devices, unless the material has been reconfigured for wireless devices, such as gaming apps. mbooks, Directories & Databases: Long-form text C&D directly downloaded onto wireless devices and read by consumers using their wireless technology. (see ebooks, directories and databases for examples of long-form text C&D) mcommerce & Other Mobile C&D: Mobile commerce, also known as mcommerce or mwallet, includes time spent by consumers on their wireless devices to pay bills, shop, and to purchase products or services, including on-site at retailers, accessing content from retailers formatted specifically for wireless devices, such as proximity services or brand-related texts, using mobile apps not associated with games or the three text categories, and any GPS functionality included on personal mobile devices Mobile Audio: Time spent listening to audio content developed specifically for wireless devices, such as ringtones, downloaded directly on wireless handheld devices, or listening to various radio programming and audio podcasts developed for wireless devices. Mobile Games & Applications (Apps): Consumers playing various games developed for wireless devices, often through gaming apps or the mobile extensions developed by console, PC and handheld videogame publishers for the smaller screens of personal mobile devices. Mobile News & Information: Consumers reading digital real-time news and informational text, content or data formatted specifically for wireless devices, often through a subscription service, such as the android app developed by a newspaper publisher. Mobile Periodicals & Serials: Time spent by consumers with short-form text C&D formatted specifically for wireless devices, often through a subscription service, such as a iphone app developed by a magazine publisher. Mobile Search & Texts: Consumers accessing lead generation tools that are designed for wireless devices, such as smartphones, often used near the point-ofdecision or purchase. Also included in this mobile usage channel is time spent by consumers with non-social texts, primarily from brands attempting to reach individuals with text-based promotions. Mobile Social Media: Time spent by individuals with consumer generated content either developed for or created on wireless devices, or shared within the social media community using apps developed specifically for wireless devices, including any video teleconferencing among the community members. Mobile Video: Motion-based content produced exclusively for download on wireless devices, content produced elsewhere and transfigured for wireless devices using a third-party technology solution available exclusively from the telecommunications provider, or is downloaded via a video-based app, including those from subscription services, like Netflix or Hulu. 29

Definitions & Segmentation Other Digital Media Usage: Consumer access, engagement or interaction with digital content, advertising or services for personal entertainment use or consumer brand advertising through various other digital media. Does not include digital media or content developed for workflow efficiencies or created specifically for internet-accessible computers or wireless mobile devices. These media and devices include videogame-playing systems, television time-shifting hardware, and digital out-of-home advertising networks, billboards and signage in various indoor and outdoor locations. Console, PC & Handheld Videogames: Time spent by consumers playing videogames available on some type of physical disc. It does not include the time that consumers link to the online or mobile extension of the games to compete with players in other locations in MMOG formats. However, it does include the time consumer might spend going online to download additional content that becomes available when players complete certain tasks, such as scoring enough points to download a faster car in a racing title. It also does not include time spent viewing downloaded TV programs or films on console hardware using services such as Netflix, which is included in over-the-top (OTT) video below. Digital Out-of-Home (DOOH) Media & Satellite Radio: Consumer engagement with content and advertising while outside the home and provided by a thirdparty operator. Digital out-of-home includes three types of platforms: 1) digital place-based networks, in which content is telecast on screens in specific venues, such as theaters, transit hubs and vehicles, retail outlets, medical offices, corporate towers, sports arenas, and entertainment venues, such as bars, restaurants and fitness clubs; 2) digital billboards & signage, which are exclusively ad-based, but messages change in a pre-determined timeframe; and 3) ambient out-ofhome media, including messages often embedded onto objects using digital technology, such as 3-D printers. Satellite radio is included in this category because it is consumed primarily out-of-home in automobiles using specific digital equipment and is available only in two countries, the United States and Canada. Over-the-Top (OTT) Video: Consumers using digital technology to access and view video content on-demand, such as time-shifting and saving TV content through digital video recorders (DVR) for convenient viewing, accessing movies and TV programs at specific times using video-on-demand (VOD) services or downloading video content through videogame consoles. It also includes interactive games available through cable subscription services and satellite TV providers. Common Acronyms Used in Report BRIC: Brazil, Russia, India and China, four of the fastest growing and largest emerging markets worldwide. CAGR: Compound annual growth rate, or the year-over-year growth over a specific period time, which for this report was a 5-year period. 30

Definitions & Segmentation Traditional Media (TM) Usage: For purposes of this report, PQ Media grouped together consumer time spent with key traditional media platforms for personal use, such as reading print-based news, data and other information publications; viewing or listening to entertainment content at home or in theaters through electronic hardware and using physical discs that were considered analog media when first developed as a medium, and engaging with out-of-home advertising via non-digital billboards and other signage; watching live broadcast or cable video on a programmed schedule primarily at home, or listening to audio content from terrestrial radio stations and networks through broadcast radio devices, such stereo receivers. Traditional Media Platforms Film & Home Video: Viewing feature-length films in person, or watching them through electronic hardware, such DVD and VHS players when they became available on physical discs and cassettes. It also includes consumers viewing TV programs that have become available in multi-episode editions that are tied to a specific season when the program aired on broadcast or cable television networks. Live Television: Viewing television programming on TV receivers found primarily in the home, on a predetermined schedule set by the TV stations, cable providers, and broadcast, cable and regional sports networks. It does not include time-shifted viewing or consumer controlled viewing using VOD. Physical Music: Consumers listening to recorded music on CDs, cassette and vinyl using electronic equipment and physical discs that are primarily multiple tracks from specific artists, groups, performance ensembles, and multi-artist themed titles determined by the recording studio. Print Books & Directories: Reading one-time consumer-focused book releases from specific authors, editors and publishers, as well as consuming information that pertains to a specific vertical from publications that are printed and updated annually, such as yellow page directories, Census Bureau statistical abstracts, and sports-related yearbooks. Print News & Information: Reading print-based news and other information publication with a primarily local focus that distributed by subscription or single copy at a pre-determined time each day or week, with content regarding events that occurred within the past day or week, but also includes general articles on key verticals, like business and cooking.. Print Periodicals & Serials: Reading print-based publications that includes information content that is aimed towards a specific demographic, such as women, or shared activity, like hunting. It also includes consuming print-based publications that retail or product oriented. Print periodicals & serials are distributed based on a pre-determined annual subscription schedule, usually weekly, monthly or quarterly, and can include consumer-targeted magazines and newsletters, as well as catalogs, shoppers and traders, Terrestrial Radio: Listening to radio station and network music, talk and sports programming, not including digital-related satellite radio, using broadcast radio devices, such as stereo receives, conventional and HD car radios, clock radios, and portable radio devices, like walkmans and boom boxes. Traditional Out-of-Home Media: Consumer engagement with out-of-home advertising via non-digital billboards and other signage. It is normally in place at a specific location for a predetermined amount of time, depending on the contract, for a week, month, or quarterly. It requires physical labor to deploy and subsequently replace. 31