Multi-Screen Insights

Digital Video Grows; Representing a Nominal Share Of Total Video Time

Multi-Screen Insights

• Growth in technology drives choice…households acquired significantly more tablets (+59% v yag) and enabled smart TVs (+78% v yag) • • Digital video has grown but still only comprises a nominal share among A18-49 (0:31 with digital video v. 4:40 daily with TV screen) • Same is true among all ethnic segments Consumers spent 48% of their total media time with the TV (P18+); majority of their TV viewing is with Live TV • With digital video growth, Television still commands over 90% of total video time among key advertiser targets • Viewers continue to shift their viewing from computer video (-3,537,000) to smartphone video (+25,098,000) • Across all ethnic segments • 24 million more consumers used app/web applications in 3Q14 and spent 34% more time (P2+)

Growth In Technology Drives Choice

YOY Growth 78% 59% Enabled Smart TV 13% Tablet 46% 19% Subscription VOD 15% Smartphone PC With Internet 1% Broadband Internet 40% 75% 81% Penetration Levels 78% 1% DVR 49% 1% Game Console 46% DVD Player -2% 81%

Source: Nielsen Total Audience Report 3Q14 v year ago

Digital Video Has Grown But Still Only Represents A Nominal Share Compared to Time Spent With the TV Screen

Daily Time Spent With Digital Video v. TV Screen (Hrs:Min)

A18-49

Digital Video TV Screen

A25-54

Digital Video TV Screen 4:40 0:20 3Q13 4:33 0:31 3Q14 5:01 0:17 3Q13 4:54 0:28 3Q14 Source: Nielsen Total Audience Report 3Q14

…and Time Spent With TV Screen Dominates Across All Multicultural Segments

Daily Time Spent With Digital Video v. TV Screen Among A18+ (Hrs:Min)

Black

Digital Video TV Screen

Hispanic

Digital Video TV Screen 0:33 0:29 7:39

Asian

Digital Video TV Screen 0:35 4:32 3:24 Source: Nielsen Total Audience Report 3Q14

TV Is An Integral Part Of Consumers Daily Life…

Consumers Spend 48% of Their Total Media Time With Television Throughout The Day

0:09 1:06 Avg Time Spent Per Day (Hrs: Min) Among P18+ 1:33 0:04 0:12 4:32 Live TV Watching Time-shifted TV AM/FM Radio Internet Usage/Computer Game Console DVD/Blue-Ray Multimedia Device Using Smartphone 2:44 Source: Nielsen Cross Platform Report 3Q14,P18+ 0:30

…and Majority Of Their TV Viewing Is Spent With Live TV 3Q14 Time Spent Per Day (Hrs:Min) Among P18+ 4:32 0:30 1:06 1:33 2:44 3Q13 3Q12 4:44 4:50 0:28 1:00 1:10 0:24 1:04 :0.53

2:47 2:51 Live TV Time-shifted TV DVD/Blu-Ray Use Game Console Use Internet on Comp Smartphone Use AM/FM Radio Listening Source: Nielsen Cross Platform Report 3Q14,P18+; usage on each device

How Much Video Content is Consumed Across Each Device?

Watching Video On Smartphone Continues To Gain Traction But Television Still Dominates 92% Of Total Video Time

Monthly Time Spent (hrs:min) by Device

Watching Television P2+:# of Viewers v. YAG 282 Million -0.4% P2+ P18-49 P25-54 141:19 119:33 133:56 Watching Video on a Computer 144 Million -2.4% 10:42 13:48 12:40 Watching Video on a Smartphone 125 Million +25.0% 1:46 2:07 1:42

Source: Nielsen Total Audience Report 3Q14 v yag;Total video= TV+comp+smartphone

…and Captures Majority Of Total Video Time Among Both Young and Old

P2-11 TV Share of Total Video 94% Monthly Time Spent (Hrs:Min) TV 106:27 Internet Video 6:22 P1217 P18-24 P25-34 P35-49 94% 83% 87% 91% 89:13 91:32 112:33 136:32 6:17 16:05 14:59 12:14 P50-64 P65+ 95% 98% 177:14 211:31 9:00 4:34 Mobile Video 3:06 2:02 1:36 1:03 0:24 Source: Nielsen Cross Platform Report 3Q14; Total video=TV; internet video and mobile video

Even Among Teens & Young Adults, Television Remains The Dominant Platform For Viewing Content

T12-17 TV Share of Total Video 94% Monthly Time Spent (Hrs:Min) TV 89:13 Internet Video 6:17 M12-17 F12-17 92% 95% 86:31 92:01 7:11 5:20 A18-24 M18-24 F18-24 83% 79% 87% 91:32 84:50 98:19 16:05 19:33 12:02 Mobile Video n/a n/a n/a 3:06 3:29 2:23 Source: Nielsen Cross Platform Report 3Q14; Total video=TV; internet video and mobile video

What Is Driving Smartphone Video Growth?

With More Content Readily Available On Smartphones, Consumers Across All Ethnic Segments Shift Some Of Their Video Viewing From Computer To Smartphone Video (+/-) Change In Number of Users by Device (P2+)/ Monthly (in OOO’s)

Total Black Hispanic Asian Watching Video on a Computer -3,537 -184 -861 -193 Watching Video on a Smartphone 25,098 2,854 4,226 1,239

Source: Nielsen Total Audience Report, 3Q14 v yag,P2+;

App/Web Usage On Smartphones Increases Considerably Absolute Growth in Number of Users P2+ (OOO)/ Monthly +23,662 # of Users Composite

162,798

+2,907 Black

20,811

+4,101 Hispanic

29,581

+1,224 Asian

9,494

Source: Nielsen Total Audience report 3Q14 v yag,

…and Time Spent With App/Web On Smartphones Is High, Especially Across Ethnic Groups

Time Spent Monthly/ P2+

Using Any App/Web On Smartphone (P2+)/ Monthly

Composite Black Hispanic 47:35 52:43 52:14

% Change v. YAG in Time Spent

+34% +20% +30% Asian 47:15 +42%

Source: Nielsen Total Audience Report, 3Q14 v yag.

Increase in Viewing Options Continues To Drive Online Streaming & Mobile Video Apps Growth Average Number: P18+ 4,5 4,7 5,8 1,3 1,5 1,7 Avg Mobile Video Apps Used 12-Aug Avg PC Streaming Sites by brand visited 13-Aug 14-Aug Source: Nielsen Total Audience report 3Q14, P18+ avg monthly use

With All Its Growth, Digital Video Still Only Represents A Nominal Share Of Time Spent With Total Video Share of Total Monthly Video Time Spent by Device TV Video on Comp Video on Smartphone CH2-11 T12-17 A18-24 A25-34 A35-49 A50-64 A65+ Video on Smartphone Video on Comp TV 5,5% 2,8% 1,6% 0,9% 6,4% 14,5% 11,3% 8,1% 0,6% 4,8% 0,1% 2,0% 94,5% 93,6% 82,7% 87,1% 91,0% 94,6% 97,9% Source: Nielsen Total Audience report 3Q14, Total video=TV; internet video and mobile video

How Does Video Usage Differ by Ethnicity?

More Black and Hispanic Consumers Tune To Television and Video On Smartphone While Computer Video Declines Gain/Loss Of Users P2+ 3Q14 v 3Q13

Black Hispanic

Watching Traditional Television* v. YAG

+824,000 +592,000

Watching Video on Computer v. YAG

-184,000 -861,000 Asian -550,000 -193,000

Video on Smartphone v. YAG

+2,854,000 +4,226,000 +1,239,000

Source: Nielsen Total Audience report 3Q14v yag

Over 90% Of Total Video Time Is Spent With The Television Across Most Ethnic Segments TV Share of Total Video Time Spent Monthly P2-11 P1217 Black TV Share Share 96% 96% P18-24 P25-34 86% 88% P35-49 93% P50-64 96% P65+ 99% Source: Nielsen Total Audience report 3Q14, Total video=TV; internet video and mobile video Hispanic TV Share 94% 93% 81% 86% 91% 93% 98% Asian TV Share 91% 87% 63% 79% 79% 92% 97%