1. Time Shifted Viewing Presentation to MMS London, Wednesday 20 th September 2006 Tony Wearn, Research Director, BARB

2. Time Shifted Viewing Background Introduced to BARB Measurement in 1991 Penetration and growth of VCR ownership opened up concern that time shifted viewing would generate unmeasured exposure to programmes and commercials Deemed essential to capture as much OTS as possible Introduced to BARB Measurement in 1991 Penetration and growth of VCR ownership opened up concern that time shifted viewing would generate unmeasured exposure to programmes and commercials Deemed essential to capture as much OTS as possible

3. Time Shifted Viewing Initial Technique Initially accessed by frequency measurement Video tape continuously encoded with day, time and channel tuned On playback identifiable code would confirm playback from broadcast content – if no code present (‘uncoded playback’) then tape bought, borrowed or rented Time shift captured up to seven days post-transmission Initially accessed by frequency measurement Video tape continuously encoded with day, time and channel tuned On playback identifiable code would confirm playback from broadcast content – if no code present (‘uncoded playback’) then tape bought, borrowed or rented Time shift captured up to seven days post-transmission

4. Time Shifted Viewing Later Technique Since 2002, CTS used as comprehensive technique to identify all time shifted viewing VCR household penetration peaked in 2001 at 87% - now at 78% and falling Recordable DVDs and PVRs are now the future for time shifted viewing Hard-disc prevents ‘date-stamping’ Since 2002, CTS used as comprehensive technique to identify all time shifted viewing VCR household penetration peaked in 2001 at 87% - now at 78% and falling Recordable DVDs and PVRs are now the future for time shifted viewing Hard-disc prevents ‘date-stamping’

5. VCR Time Shift Viewing in UK % overall viewing % playback by day (day 0 = same day as broadcast) Source: BARB

6. Time Shift Viewing – by Genre VCR Time Shift % Drama: Series/Serials4.9 Documentaries2.6 Soaps2.7 Films2.2 - All Programmes1.6 - Sport0.8 Children’s0.4 News/Weather0.1 VCR Time Shift % Drama: Series/Serials4.9 Documentaries2.6 Soaps2.7 Films2.2 - All Programmes1.6 - Sport0.8 Children’s0.4 News/Weather0.1 Source: 8 weeks ending 30 th April 2006 BBC1, BBC2, ITV1, C4, Five only

7. Time Shift Viewing – by Genre VCR Sky+Time Shift% Drama: Series/Serials4.930.6 Documentaries2.625.5 Soaps2.720.0 Films2.212.5 - All Programmes1.613.8 - Sport0.8 6.5 Children’s0.4 6.7 News/Weather0.1 3.0 VCR Sky+Time Shift% Drama: Series/Serials4.930.6 Documentaries2.625.5 Soaps2.720.0 Films2.212.5 - All Programmes1.613.8 - Sport0.8 6.5 Children’s0.4 6.7 News/Weather0.1 3.0 Source: 8 weeks ending 30 th April 2006 BBC1, BBC2, ITV1, C4, Five only

8. Time Shifted Viewing Play Back by Day of Week (Time Shift as % of Total Consolidated Audience) VCRSky+ Mon-Fri1.514.3 Sat1.312.0 Sun1.413.2 All Week1.413.8 8 weeks ending 30 th April 2006 (Time Shift as % of Total Consolidated Audience) VCRSky+ Mon-Fri1.514.3 Sat1.312.0 Sun1.413.2 All Week1.413.8 8 weeks ending 30 th April 2006

9. Time Shifted Viewing Sky+ Developments Developed by accessing the SI code when in time shift mode Necessitated coordinated technical expertise from both AGB Nielsen Media Research and BSkyB Dependent on compatible transponder downloaded set-top box upgrades Developed by accessing the SI code when in time shift mode Necessitated coordinated technical expertise from both AGB Nielsen Media Research and BSkyB Dependent on compatible transponder downloaded set-top box upgrades

10. Time Shifted Viewing Sky+ Developments A number of issues caused concerns with the implementation of the software downloads Collectively these problems caused us to withhold Sky+ homes from reporting Re-instigated on March 6 th 2006 A number of issues caused concerns with the implementation of the software downloads Collectively these problems caused us to withhold Sky+ homes from reporting Re-instigated on March 6 th 2006

11. Time Shifted Viewing Sky+ - Early Indicators of Use of Time Shift 14% of all viewing in Sky+ homes is time shifted c.40% takes place on same day as original broadcast Roughly similar by sex and social grade Some age differential 16-5415% 55+11% Children10% (Summary taken over eight weeks – 6 th March – 30 th April 2006) 14% of all viewing in Sky+ homes is time shifted c.40% takes place on same day as original broadcast Roughly similar by sex and social grade Some age differential 16-5415% 55+11% Children10% (Summary taken over eight weeks – 6 th March – 30 th April 2006)

12. Time Shifted Viewing Sky+ Early Viewing Indicators of Use of Time Shift Use by individual viewers varies 8% time shift half or more of their viewing 38% time shift between 10-50% 47% time shift less than 10% 7% did not time shift at all! Use by individual viewers varies 8% time shift half or more of their viewing 38% time shift between 10-50% 47% time shift less than 10% 7% did not time shift at all!

13. Time Shifted Viewing Reporting Implications The advent and growth of ‘paused’ and playback viewing will mean that viewing on the day of transmission is increasingly offset from the actual live transmission ‘Overnights’ previously only reported on ‘live’ viewing Same Day Playback (VOSDAL) figures now incorporate playback on the same day as the originating transmission within ‘overnight’ reporting The advent and growth of ‘paused’ and playback viewing will mean that viewing on the day of transmission is increasingly offset from the actual live transmission ‘Overnights’ previously only reported on ‘live’ viewing Same Day Playback (VOSDAL) figures now incorporate playback on the same day as the originating transmission within ‘overnight’ reporting

14. When is Sky+ Time Shift Viewed? % VOSDAL40.7 ------------------------------------------------------------------- Within 1 hour18.0 Between 1 – 6 hours17.7 Between 6 – 12 hours 6.4 Between 12 – 24 hours18.8 Between 1 – 2 days16.8 Between 2 – 3 days 8.8 Between 3 – 7 days13.4 % VOSDAL40.7 ------------------------------------------------------------------- Within 1 hour18.0 Between 1 – 6 hours17.7 Between 6 – 12 hours 6.4 Between 12 – 24 hours18.8 Between 1 – 2 days16.8 Between 2 – 3 days 8.8 Between 3 – 7 days13.4

15. Time Shifted Viewing From VCR to PVR VCR Playback – under 2% of UK viewing - one third of recordings are played back within 7 days PVR functionality - greater ease of use for initial recording - content more easily locatable via cataloguing - ease of retrieval via menus - pause and rewind of ‘live’ TV VCR Playback – under 2% of UK viewing - one third of recordings are played back within 7 days PVR functionality - greater ease of use for initial recording - content more easily locatable via cataloguing - ease of retrieval via menus - pause and rewind of ‘live’ TV

16. Time Shift Viewing Level of Playback Viewing % of Total Viewing Time Shifted % April 19962.9 April 20012.1 April 20051.4 April 20061.9 The increase in April 2006 is accounted for by Sky+ time shifted viewing % April 19962.9 April 20012.1 April 20051.4 April 20061.9 The increase in April 2006 is accounted for by Sky+ time shifted viewing

17. Time Shifted Viewing Future Trends? PVRs are the new ‘threat’ to live viewing PVRs are the new ‘challenge’ to TAM systems! PVRs will impact on viewer choice and consumption – but by how much? PVRs are the new ‘threat’ to live viewing PVRs are the new ‘challenge’ to TAM systems! PVRs will impact on viewer choice and consumption – but by how much?

18. % of TV homes with TV recorders % TV HH

19. Time Shift vs Live Viewing % Assumptions: DVR penetration 9%  78% TS as % viewing: Sky+ 20%; Cable/DTT recorder 15%; DVD-R 5%; VCR 1.5%. VOD availability 1%  23% VOD TS as % viewing 10%  20%

20. Time Shifted Viewing Conclusions Live viewing will inevitably decline as we progress into the ‘viewer dominated’ environment Time shifted viewing will therefore become increasingly essential to maintain the TAM currency But accessing ‘content’ places greater strain on our ‘linear’ reporting Live viewing will inevitably decline as we progress into the ‘viewer dominated’ environment Time shifted viewing will therefore become increasingly essential to maintain the TAM currency But accessing ‘content’ places greater strain on our ‘linear’ reporting

21. Thank you