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Getting Comfortable with Cable Presented to: BizNet Link Date: 2/9/06

Cox Enterprises

Television: Yesterday…Today…Tomorrow

Highlight Top Programming & Sweeps

Local Media Trends Agenda

Our Company

For over 100 years, Cox Enterprises has been one of the leading mass media companies with ownership interests in newspaper, radio, television, direct mail and the internet.

Our Company

Television: Yesterday… Today… Tomorrow

50

years ago…

There were 3 television networks

50 Years Ago…

The top TV programs generated 40, 50, even 60 household ratings!

67.3

Source: Nielsen Media Research based on Program Station Area basis 1950-51

Texaco Star Theatre

on NBC, 1952-53

I Love Lucy

on CBS, 1957-58

Gunsmoke

on CBS

61.6

43.1

10

years ago…

4

broadcast networks

22

cable networks

10

years ago… Top T.V. programs generated 15 , 20 , & 25 ratings

Today…

7

broadcast networks

75

cable networks

The average U.S. cable household has an average of 75 cable networks. -CAB

Today… Top program ratings are Half of what they were 10 years ago…

Source: Nielsen Media Research National People Meter Data 2002 03 Broadcast TV Season (Sept ’02 – May ’03) Total TV Universe Season Average includes premier episodes only.

Missing Rating Points

Customers cannot be found in ONE place, at ONE time, watching ONE TV channel anymore…

Missing Rating Points The average audience size of a television program rating has dwindled over time.

100 90 80 70 HH Rating Achieved <3 60 50 40 30 20 10 3-4 5-9 10+ 0 6/15/1905 1993 Audience Valuation Trend of Broadcast Programs in Primetime (1993 - 2003)

Source: Nielsen Media Research – National People Meter Data – Year long average of regularly scheduled shows – premiere episodes only included in average – Mon-Sun 8p – 11p E/P

Missing Rating Points 80 Even the top of the top programs fail to attain ratings that compare to similar shows in the span of just 20 years… 60.2

60 40 20 45.5

29.8

Comparison of HH Ratings for “Finales” of Popular Television Shows (1983 - 2004) 0 M*A*S*H - 2/28/83 Cheers - 5/20/93 Friends - 5/13/04

Source: Nielsen National People Meter Data – Total TV Universe – Households Ratings MASH HH rating from the “2000 Report on Television” from Nielsen Media Research

Networks forecast even greater investments in original programming to grow their audience share.

Ground breaking, award winning, and entertaining television $25.0

$20.0

$15.0

$10.0

$5.0

$9.1

$10.4

$11.6

$12.9

$14.3

$15.8

$17.3

$18.8

$ $20.5

$ = Billions 2002 2003 2004 2005 2006 2007 2008 2009 2010

Source 2003 Kagan World Media A Media Central/PR

The End of an Era (November 2004)

“Broadcasters will probably never win another sweep.” “(This marks) the end of an era.”

-Dr. Jack Wakshlag TBS/TNT Chief Research Officer

Turner’s Annual Research Presentation for the Press 12/08/04

Program

Saturday Night College Football NFL Football The O’Reilly Factor Dora the Explorer Law and Order:SVU WWE Wrestling Sunday Movie Seinfeld Larry King Live Nip Tuck

Households Top Rated Programs (November 2005) Network

ESPN ESPN Fox News Nickelodeon USA USA Lifetime TBS CNN FX

Rating

8.8

8.3

6.2

3.0

3.0

2.7

2.5

2.3

2.2

2.2

Source: Nielsen, Mobile-Pensacola (Ft. Walton Beach DMA). Nov05 Sweeps, C-DMA Universe, HH, M-Su 6a-12m

November 2005- Top Networks Among Households Early Morning 5am-9am Day 9am-4pm Early Fringe 4pm-7pm Prime 7pm-11pm Late Fringe 11pm-1am

Source: Nielsen Research; Mobile-Pensacola (Ft. Walton Beach), C-DMA Nov04 Sweep, HH

Media Trends

Radio Overview

Escambia County Cable Networks reach more people than the Gulf Coast’s top radio stations…

140,000 120,000

120,146 100,059 97,517

100,000

92,655 91,332

80,000 60,000 40,000

102.7 Country

45,253

WABB 97 FM

35,421

93 BLX

34,534

TK 101

30,782

My 107

30,149

WCOA

28,614

20,000

Q100

20,462

0 TWC TBS TNT Discovery FOX News 102.7

WXBM 97.5

WABB 92.9 WBLX 101.5

WTKX 107.3

WYCL 1370 WCOA AM 100.7

WJLQ Source: Scarborough Research, Mobile-Pensacola Feb 04-Jan 05, DMA Survey Area, Adults 18+ Target Definition: Escambia County Residents.

Competitive Comparison

Let’s see how the same message blossoms from the visual newspaper ad…. to the captivating sight, sound, motion, color, and emotion of a television commercial!

Competitive Profile

Newspaper Readership in U.S

Since 1970, almost 30% of the adult population in the U.S. stopped reading the daily newspaper.

78% 80% 67% 70% 64% 64% 62% 60% 50% Daily Newspaper Readership 1970 – 2003 (% of Adult 18+ population) 40% 1970 1980 1985 1990 1995

Ad exposure is not the same thing as total readership.

55% 2000 50% 2003

Source: Simmons Research – National Data – 1970 – 2003, NAA

Competitive Comparison

Let’s see how the same message blossoms from the auditory radio spot…. to the captivating sight, sound, motion, color, and emotion of a television commercial!

Which Provided The Best Directions?

Which Provided More Information?

Which Best Showcased The Atmosphere?

Which Made You Hungry?

Reach Your Customers

Cox Media offers a variety of programs that generate reach across networks, demographic appeal & interests.

Network ESPN Fox News Lifetime FOX News FOX News Sci Fi Spike TBS Spike USA TBS USA Program College Football Hannity and Colmes Primetime Movie Fox and Friends Special Report Stargate SG-1 CSI Braves Baseball WWE Monk Everybody Loves Raymond The Dead Zone Sweep / Year November 2004 November 2004 November 2004 November 2004 February 2005 February 2005 February 2005 May 2005 May 2005 July 2005 July 2005 July 2005 HH Rating* 15.9

7.9

4.6

5.3

4.1

4.8

3.3

4.1

2.7

4.0

2.7

3.6

Source: Nielsen Research; Mobile-Pensacola (Ft. Walton Beach) C-DMA, HH, Nov04, Feb05, May05, Jul05 Sweeps

DMA Household & WEAR – ABC Local News Viewing COUNTY & STATE

• Mobile County, AL • Baldwin County, AL • Clarke County, AL • Monroe County, AL • Escambia County, AL

5pm News Viewing

628 803 57 36 480

6pm News Viewing

573 852 103 74 422

10pm News Viewing

1,597 1,361 55 13 429 •

Escambia County, FL

• Santa Rosa County, FL • Okaloosa County, FL

25,247

6,947 8,677

24,179

7,532 8,051

19,997

7,297 6,993

Escambia County Florida is the signal station origin for WEAR – ABC. Notice how local news viewership drops off the farther away you get geographically from Escambia County Florida. Local news isn’t too local for Households in alternate counties!

Source: 2005 County Coverage Study NHI Local. Mobile, AL – Pensacola (Ft. Walton Beach) FL DMA.

GENDER

Male Female

RACE

Caucasian African American Hispanic Asian 49.7% 50.3% 72.4% 21.4% 2.7% 2.9%

EMPLOYMENT

Employed Unemployed 51.7% 3.7% Service Management Related 30.0% Sales and Office 17.9% 28.4%

MARITAL STATUS

Married 50.0% Single 27.4% Divorced 12.6% Widowed 7.1%

The Age of Acquisition AGE 30.0% 20.0% 10.0% 0.0% 8.00% 13.70% 15.30% 12.90% 22.40% 20-24 25-34 35-44 45-54 55+ WEEKLY CABLE VIEWING Did Not Vie w , 12.6% Vie w e d, 87.4% HOUSEHOLD INCOME 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 34.5% <$25k 15.2% $25 $34k 18.1% $35 $49k EDUCATION

High school or more 87.7% Some college or more 52.8% College degree or more 19.9%

HOME OWNERSHIP Re nt 31.1% Ow n 64.8% 17.8% $50 $74k 14.5% MONTHLY BUYING BEHAVIORS

Restaurant dining 85.5% Clothing store shopping 84.2% Household took domestic vacation (yr) 75.6% Household owns a home computer 68.7% Home improvements done past year 65.5% Shoe store shopping 67.9% Household accesses the internet 64.6% Any mall shopping 84.9%

$75k+

Source: Scarborough, Mobile-Pensacola Aug 04-Jul 05. Adult 18+, Escambia County Residents. US Census 2000

2006 Total Coverage Area Areas in GREEN are Cox Media Zones Century Escambia County Jay Okaloosa County Crestview Cantonment Pensacola North Pensacola South Santa Rosa County Eglin AFB Ft. Walton Beach Niceville Walton County Freeport Destin Total Subscribers: 158,692 Cox Communications Property, Escambia County 75,331 HH Zip Codes: 32501/02/03/04/05/06/07/14/26/33/34

I-10 North Pensacola Zone: 22,880 Households

I-10 South Pensacola Zone: 52,451 Households Cox Communications Property, Okaloosa/Walton 77,385 HH Zip Codes: 32439/32536/39/40/41/50/59/45/78/ 44/42/47/48/69/79

 

Fort Walton Beach Zone: 33,715 Households (including Cinco Bayou, Hurlburt AFB, Shalimar, Eglin AFB & Mary Esther) Destin Zone: 21,267 Households (including the community of Sandestin)

Niceville Zone: 12,004, Households (including Freeport)

Crestview Zone: 10,399 Households Bright House Property, Escambia County 5,976 HH Zip Code: 32533

Cantonment Zone: Cantonment and portions of Century, Flomaton, Jay, and Molino

Escambia County 80,874 Households Zip Codes Pensacola South 32501-Downtown 32502-Downtown 32503-East Hill 32504-Cordova 32505-Central 32506-W. Pensacola 32507-NavyBlvd/ Perdido 32526-Saufley Pensacola North 32514-University 32534-Pine Forest Cantonment 32533- Cantonment 32577- Molino 32526- Beulah 32535- Century 32565- Jay 36441- Flomaton Perdido Cantonment Pensacola Pensacola/Cantonment

Current Households: 81,307 Cable Penetration: 84%

Coverage Area

North Pensacola South Pensacola Cantonment 22,880 HH 52,451 HH 5,976 HH

Demographics/Viewership

Median Age: Age 25-54: 35.4

41.9% Married: Avg. HH Size: Female Hse Holder: 15.1% HH w/ kids <18: Own Home: 50% 2.45

33.8% 67.3% Employed: Unemployed: 51.7% 3.7% Management Armed Forces: Family HH: College Degree+: 30.0% 4.6% 66.8% 20.9% Median HHI: $35,234 Source: 2000 U.S. Census.

Networks

A&E AMC Animal Planet BET Bravo Cartoon CMT CNBC CNN Comedy Discovery Discovery Health E!

ESPN ESPN2 Family Food Fox News Fox Sports FX Golf Headline News HGTV History Lifetime MSNBC MTV Nickelodeon OLN Oxygen Sci Fi Speed Spike TBS TLC TNT Travel TV Land USA VH 1 Weather

Digital

Biography Court DIY ESPN Classic ESPN News History Intl Fine Living Soap Toon Disney

SUBSCRIBER NUMBERS ARE ESTIMATES THAT MAY CHANGE WITHOUT NOTICE; COVERAGE MAPS, ZIP CODES, ETC. MAY NOT REFLECT DIGITAL, ANALOG, AREA, CHANNEL OR OTHER CARRIAGE LIMITATIONS FOR YOUR AD. CONTACT COX MEDIA FOR DETAILS.

What Makes Our Market Unique?

The Pensacola market has the highest cable penetration compared to neighboring counties. 83% of the television households in Escambia County have Cable Television.

 Escambia County is part of the Mobile-Pensacola (Fort Walton Beach) DMA and is DMA rank # 62.

 The Mobile/Pensacola (Fort Walton Beach) DMA is a hyphenated market with a territory that includes 10 counties spanning 3 states: Florida, Alabama, and Mississippi.

 There are six broadcast network affiliates (one major that originates from Escambia County).  Satellite Penetration in Escambia County (10.1%) is the lowest among neighboring counties and lower than the national average.

Source: Nielsen, Mobile-Pensacola (Ft. Walton Beach) DMA VIP November 2005

Why Advertise in Escambia County?

ESCAMBIA COUNTY HAS THE MONEY RETAIL STORE GROUP

Total Retail Sales Food & Beverage Stores Food Service & Drinking Establishments General Merchandise Furniture/Home Furnishings, Electronics & Appliances Motor Vehicles & Parts Dealers

RETAIL SALES

$ 3,858,144,000 $ 296,908,000 $ 376,615,000 $ 753,215,000 $ 191,392,000 $ 945,350,000

Escambia County stores generated more revenue in retail sales than neighboring counties: Santa Rosa County, FL- $1,166,931,000; Escambia County, AL- $436,583,000; and Baldwin County, AL- $2,531,483,000.

Other Industries

(2005 Estimated Consumer Expenditures) Health Care Legal & Accounting $350,606,264 $10,507,914 Source: 2005 Survey of Buying Power SMM. AGS Demographic Data- 2005 Estimates/Market Smart Analyzer

Advertising Maintaining an Advertising Presence No Advertising End of Advertising

70 60 50 40 30 20 10 0

Week Number Maintaining a consistent message and keeping a continual presence on cable television will result in a higher audience recall of your message. Stop your advertising on cable television, and people quickly forget your message!

Source H.A. Zielske, “The Remembering and Forgetting of Advertising” Journal of Marketing, Volume 23, No. 3, Pages 239-243

M-F 5A-9A Free to Watch what they Want to Watch at 6A, 5P, 6P and 10P… Top 10 Non- News Cable Networks in Traditional Broadcast News Dayparts M-F 5P-6:30P M-F 9P-10:30P

Source: Nielsen Research. Mobile-Pensacola (Ft. Walton Beach) Nov04 C-DMA

Reach a broader audience by supplementing, not duplicating your local broadcast buys, and watch cable programming dramatically improve your consumer reach.

Client Products and Services Cox Media offers effective advertising for businesses throughout our community and across the country. Our Account Executives have access to various research tools empowering them to make qualified advertising recommendations to our clients. Some of these recommendations include which networks to buy, time periods to select, and geographic areas to target.

Production

Our award winning production team will help bring your ideas to life.

Research

Cox Media research helps you identify and reach valuable households in your market area.

:30 Second Commercials

Target your audience with 50+ popular cable networks

Weather Channel Crawl

Effective and affordable, place your text message during the local forecast

30 Minute Programs

Cox Media offers our own local origination channel that promotes your products or services.

Co-Op Advertising

Utilize your co-op dollars for a 30-second commercial schedule…We’ll find the funds for you.

Promotions

Cox Media can provide targeted sweepstakes, special events, network sponsorships and more to fit your advertising needs.

Cox Media Team

Cox Media offers you a team of professionals in research, promotion, marketing, production, and sales.

Questions?

Thank you for coming!