2. HDTV UPDATE Brian Markwalter Columbus, OH November 13, 2002 Brian Markwalter Columbus, OH November 13, 2002

3. Consumer Electronics Association (CEA) More than 1000 corporate members Producer & Sponsor of the International Consumer Electronics Show (CES) Industry’s voice in Washington Market research More than 1000 corporate members Producer & Sponsor of the International Consumer Electronics Show (CES) Industry’s voice in Washington Market research

4. CEA’s DTV Focus Policy issues Education programs »Retail training seminars »Partnership programs »Consumer outreach CEA »DTV Subdivision »DTV Awards »DTV Summit Policy issues Education programs »Retail training seminars »Partnership programs »Consumer outreach CEA »DTV Subdivision »DTV Awards »DTV Summit

5. Consumer DTV Expectations per Chairman Tauzin DTV sets should receive broadcast signals DTV sets should work with all cable systems Cable-ready DTV sets should be available at reasonable prices New DTV sets should bring consumers "exciting new content“ Home recording still should be available HTDV sets should have high-quality programming Consumers should be able to make informed decisions on new equipment DTV sets should receive broadcast signals DTV sets should work with all cable systems Cable-ready DTV sets should be available at reasonable prices New DTV sets should bring consumers "exciting new content“ Home recording still should be available HTDV sets should have high-quality programming Consumers should be able to make informed decisions on new equipment

6. The HDTV Transition Over 3.8 million DTV Products Sold Prices Down 50 percent since ’98 DTV 36.8% of total TV Revenue DTV More Than 60% of Projection Sets DTV Units Up 83% in ’02 - $$ Up 69% Over 3.8 million DTV Products Sold Prices Down 50 percent since ’98 DTV 36.8% of total TV Revenue DTV More Than 60% of Projection Sets DTV Units Up 83% in ’02 - $$ Up 69%

7. DTV Revenue - July DTV revenue for July 2002 represented 52 percent of total TV Revenue – FIRST TIME that DTV sales ($$) have surpassed analog sales

8. Digital TV Products Over 40 manufacturers 366 HDTV monitors 27 integrated HDTV sets 19 HDTV set-top decoders 38 EDTV monitors Over 40 manufacturers 366 HDTV monitors 27 integrated HDTV sets 19 HDTV set-top decoders 38 EDTV monitors

9. Digital Television Sales Trends January 1999 to July 2002

10. DTV Unit Sales 1.46 million in 2001 1.58 million in first nine months of 2002

11. DTV Revenue Dollar volume of Digital TV products has surpassed analog for the past three months (July, August, September).

13. HDTV Product Choices Direct View Projection TVs »Front and rear Flat Screens »Plasma, LCD New Technologies »DLP, LCOS, etc. Direct View Projection TVs »Front and rear Flat Screens »Plasma, LCD New Technologies »DLP, LCOS, etc.

14. HDTV – Entry Level Now Under $1,500

15. Digital HDTV – What Owners Are Saying 95 percent of HDTV owners would buy it again Two-thirds of HDTV owners are watching MORE TV 1 in 5 HDTV households earn less than $75,000 – Middle Class Purchasers! Quality of HD programming is good to excellent – but they want MORE 95 percent of HDTV owners would buy it again Two-thirds of HDTV owners are watching MORE TV 1 in 5 HDTV households earn less than $75,000 – Middle Class Purchasers! Quality of HD programming is good to excellent – but they want MORE

16. HDTV User Focus Groups Connie Bock, Ph.D., Elon University HDTV owners gravitating towards programs in HD, even if not a favorite One viewer “Rediscovered CBS” “Reduced Analog Pleasure” Most satisfied early adopters – those with cable HDTV HDTV owners gravitating towards programs in HD, even if not a favorite One viewer “Rediscovered CBS” “Reduced Analog Pleasure” Most satisfied early adopters – those with cable HDTV

17. CEA Consumer Market Research Online consumers showing greatest familiarity with HDTV – more than twice the general population 80 percent of online population like the better picture Nearly 30 percent of online consumers believe their next TV will be HDTV Online consumers showing greatest familiarity with HDTV – more than twice the general population 80 percent of online population like the better picture Nearly 30 percent of online consumers believe their next TV will be HDTV

18. Rather Fight Than Switch? NOT! Rather Fight Than Switch? NOT! Eight out of ten likely HDTV buyers would likely switch between cable and satellite providers in order to get HDTV programming

19. Importance of Factors to Ownership Percent listing factor as “very” or “somewhat” important

20. Update from the Broadcasting Community Transition numbers / station updates 509 stations in 147 markets, reaching 90% of U.S. TV households Newest stations include: »WADL, Detroit, MI »KNVA, Austin, TX »WRBL, Columbus, GA »KALB, Alexandria, LA »WHLT, Hattiesburg, MS »KPXF, Fresno, CA »KAIL, Fresno, CA »KMAS, Steamboat Springs, CO »KTVL, Medford, OR »WSBK, Boston, MA »WYOW, Wausau, WI »WCDC, Springfield, MA »WMEA, Portland, ME Transition numbers / station updates 509 stations in 147 markets, reaching 90% of U.S. TV households Newest stations include: »WADL, Detroit, MI »KNVA, Austin, TX »WRBL, Columbus, GA »KALB, Alexandria, LA »WHLT, Hattiesburg, MS »KPXF, Fresno, CA »KAIL, Fresno, CA »KMAS, Steamboat Springs, CO »KTVL, Medford, OR »WSBK, Boston, MA »WYOW, Wausau, WI »WCDC, Springfield, MA »WMEA, Portland, ME Source: NAB 10/8/02