MVPD Subscribers Are Most Satisfied With Paid Streaming Video Services, Showing Just How Much These Services Complement Pay-TV 1 When it comes to specific satisfaction measures, the gap between “cord stackers” and “cord cutters / nevers” is largest for content selection (40 points) Source: J.D. Power 2016 Streaming Video Satisfaction Study. Based on responses from 3,928 customers who have used a subscription or transaction-based streaming video service within the past six months, fielded in June-July Streaming services include Netflix, Hulu, Amazon, VUDU and Apple iTunes. “Satisfaction” based on six key measures in order of importance: performance and reliability, content, cost of service, ease of use, communications and customer service. *Based on study respondents. (Pay-TV subscriber + paid video streamer) % of Streamers* 60% 4%13% (Have never subscribed to Pay TV; paid video streamer) (Recently canceled Pay-TV sub; paid video streamer)

There Is Very Little MVPD Churn Attributable To Customers Leaving For OTT Alternatives And That Velocity Is Slowing 2 Source: VAB analysis based on projected multichannel substitutes HH estimates from SNL Kagan November 2015 data and residential MVPD HH projected estimates from SNL Kagan June 2016 data which excludes DBS overlap by HHs taking multiple multichannel subscriptions. “Multichannel substitute” households, defined as HHs that rely on Internet or OTT delivery to view TV shows or movies in lieu of a traditional multichannel subscription, is expected to see slowed growth over the next few years

In Fact, MVPD VOD Libraries Dwarf Those Of The Most Popular SVOD Services 3 With something available on-demand for anyone and everyone, MVPD’s content variety truly is unmatched and continues to grow Source: VAB analysis of SNL Kagan January 2016 data (MVPD catalogs reflect cable and telco MVPDs, excludes satellite MVPDs)