Reigning Champ: Television Knocks Out the Competition

Americans Are Spending a Record Amount of Time with Media Across a Variety of Devices Weekly Time Spent in the Total US Population P18+ Hours per Week Source: Nielsen Total Audience Report and Audience Insights Analysis; based on 2Q.

*TV reflects (Live + time-shifted) However, America’s Primary Device is Television: 93% of Adult 18+ Video Consumption is on TV PC Smartphone Tablet *TV reflects (Live + time-shifted) Source: Nielsen Comparable Metrics Report Q2 2016; Data based on average week between March 28, 2016 – June 26, 2016. A18+ UE = 243,020,000. Video & Social Network is a subset of each device’s (App+Web) 3

*TV reflects (Live + time-shifted) 84% of Millennial Video Consumption is on TV PC Smartphone Tablet *TV reflects (Live + time-shifted) Source: Nielsen Comparable Metrics Report Q2 2016; Data based on average week between March 28, 2016 – June 26, 2016. A18-34 UE = 72,850,000. Video & Social Network is a subset of each device’s (App+Web) 4

TV Reaches Over 93% of All Americans – Significantly More Than Any Other Video Platform Source: Nielsen Total Audience Report, 3Q16; TV includes timeshifted TV

Television’s Reach Extends Across All Ages Segments – Even Teens & Young Adults Source: Nielsen Total Audience Report, 3Q16; TV includes timeshifted TV

Time Spent With TV Remains in Line With Historic Levels Hrs: Min Per Tuning Day…P2+ 6:33 6:32 5:53 4Q06 4Q11 4Q16 Source: Nielsen Npower time period segmentation

In Fact, Consumers are Spending More Days Watching TV Average Days Viewed in 4Q16 v. 4Q15 4Q15 4Q16 (+/-) Persons 2+ 65 67 2 Children 2 - 11 56 58 Teens 12 - 17 47 49 Persons 18 - 24 39 44 5 Persons 25 - 34 60 Persons 35 - 49 68 71 3 Persons 50 - 64 77 79 Persons 65+ 82 83 1 Source: Nielsen Npower time period PUT; time period segmentation

Regardless of the Time of Day, More Consumers Tune Into TV Than Use a Connected Device or Watch Digital Video TV-Connected Devices=DVD, Game Console, Multimedia Device, VCR Digital Video= PC, Smartphone, Tablet Video Source: Nielsen Local Alliance Meeting, Nov 15/Feb 16/May 16; Nielsen NPOWER, VideoCensus, EMM; TV-Connected Devices=DVD, Game Console, Multimedia Device, VCR; Digital Video= PC, Smartphone, Tablet Video; TV data for 2015 based on NPM Panel, 2016 based on National Panel. Crediting rules were updated in March 2016 for Mobile.

Average Number of Sets Per Household Despite the Rise in Alternate Video Devices, Consumers Own More TV’s Than 15 Years Ago ‘00 Average Number of Sets Per Household 1.60 2.43 3.03 Source: Nielsen Universe Estimate Report, February 2016; 2016 Data based on Television Universe Estimates effective as of November 2015

How Are Viewers Watching TV?

Live as it Airs – 8 out of 10 Minutes are Viewed Live Time Spent Per Month (Hrs:Min) 3Q16   P2+ P18-49 P25-54 % Time-shifted TV 15% 18% 17% % Live TV 85% 82% 83%   K2-11 T12-17 P18-24 P25-34 P35-49 P50-64 P65+ % Time-shifted TV 16% 18% 15% 13% % Live TV 84% 82% 85% 87% Source: Nielsen Total Audience Report 3Q16

% Change in Time Spent With Time-shifted TV In Fact, Time Spent With DVR Time-shifted TV Is Down, Especially Among Younger Viewers % Change in Time Spent With Time-shifted TV (3Q16 v. 3Q15) Source: Nielsen Total Audience Report, 3Q16; TV includes timeshifted TV

Across All Ethnicities, DVR/Timeshifted Viewing Continues To Erode % Change in Time Spent With DVR/Time-shifted TV/Monthly (3Q16 v. 3Q15) P2+   K2-11 T12-17 P18-24 P25-34 P35-49 P50-64 P65+ Black -6% -15% -14% -18% -5% -2% +4% -13% Hispanic -8% -22% -17% +5% +1% Asian -12% -39% -43% -16% Source: Nielsen Total Audience Report 3Q16

Regardless of Market,‘Live TV’ Is The Norm 5:42 5:41 5:30 5:28 5:26 5:23 5:21 5:08 5:08 5:04 5:02 4:50 4:44 4:42 4:31 4:27 4:26 4:16 4:06 3:31 Source: Nielsen Local Watch: Stay-At-Home and Working Moms, Q3 2016; NLTV, Live Data Stream, 8/29/16-9/25/16, M-Su 3A-3A, P25-54, Multimedia Device includes XWWW and AOVO.

% Live Minutes: Primetime A Deeper Dive into Programming Reveals Cable Attracts More Live Viewing Than Broadcast % Live Minutes: Primetime 82% 82% 74% 73% P18-49 P25-54 English Broadcast Ad-Supported Cable Source: Nielsen, Base=DVR HHs 9/19-16-1/15/17

Has Streaming Effected Linear TV Usage?

6% of the US TV Population Account for 87% of Total Streaming Time Source: VAB analysis of overall U.S. TV population data coupled with Nielsen Total Audience Report, Q1’16 data on cross-platform homes ranked by in-home streaming behavior. 1/1/16-3/31/16 via Nielsen NPOWER/Cross-Platform Homes Panel for P2+. Streaming based on home PC only. Chart based on “average daily minutes”

Heavy Streamers Spend 11x More Time with TV vs. Streaming… Heaviest streamers = Quintile 1 Source: VAB analysis of Nielsen Total Audience Report, Q1’16; based on cross-platform homes ranked by in-home streaming behavior. 1/1/16-3/31/16 via Nielsen NPOWER/Cross-Platform Homes Panel for P2+. Streaming based on home PC only. Chart based on “average daily minutes”

The Heaviest Video Streamers Watch Nearly As Much Television As All Other Streamers Source: VAB analysis of Nielsen Total Audience Report, Q1’16; based on cross-platform homes ranked by in-home streaming behavior. 1/1/16-3/31/16 via Nielsen NPOWER/Cross-Platform Homes Panel for P2+. Streaming based on home PC only. Chart based on “average daily minutes”

Multi-Screen Ad-Supported TV Brands Continue To Command The Majority Of Viewing During Any Given Minute Average Audience (000) During Any Given Minute Ad-Supported Multi-Screen TV Brands Vs. SVOD Services (linear + “TV Everywhere”) Source: VAB analysis of P13-64 SVOD & “TV Everywhere” activity based on monthly estimations of “time spent” and “streaming services usage” from GfK Comparing Streaming Services study, US 2016, data. Basis: March 2016 – 1,007 US consumers, users of streaming video, aged 13-64, interviewed online. TV viewership based on Nielsen NPower R&F Time Period Report, Live+7, Total Day, March 1-31, 2016, P18-34 & P13-64

There Is Very Little MVPD Churn Attributable To Customers Leaving For OTT Alternatives And That Velocity Is Slowing 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.

In Fact, MVPD VOD Libraries Dwarf Those Of The Most Popular SVOD Services Source: VAB analysis of SNL Kagan January 2016 data (MVPD catalogs reflect cable and telco MVPDs, excludes satellite MVPDs). MVPD January 2016 figure represents EOY 2015 as numbers are reported annually.

A Closer Look Inside Linear Television

TV Viewing (That Nielsen Can Measure) is Slightly Lower Versus YAG Absolute Change in Ratings: 16/17 STD v. Yag A18-49 A25-54 Total Day Ad-Supp Cable -0.39 -0.24 English Broadcast -0.21 -0.25 Primetime Ad-Supp Cable -0.75 -0.51 English Broadcast -0.51 -0.58 Source: Nielsen NPOWER live+7 time period ratings. 9/19/16-1/15/17 v. YAG

Total Ad-Supported Television Ad Impressions: P2+ Even With This “Decline”, There Are Still 10.5 TRILLION Premium Ad-Supported TV Impressions Available Total Ad-Supported Television Ad Impressions: P2+ 10.5 Trillion 10.5 Trillion 2015 2016 (Cable + Broadcast) Source: Nielsen Ad*Intel, Total Day, P2+ equivilized impressions; Live+7; full calendar year

TV Programming Draws in Viewers Throughout the Day Source: Nielsen Npower time period Live+7 data; 9/19/16-1/15/17; total day; eng bdcst=11 nets; total TV= PUTs

…and Especially in Primetime – Regardless of Age Source: Nielsen Npower time period Live+7 data; 9/19/16-1/15/17; total day; eng bdcst=11 nets; total TV= PUTs

Viewers of All Ages Spend More Time With Ad-Supported Cable in Total Day and Primetime Time Spent Per Week (Hrs:min) P2-11 P12-17 P18-24 P25-34 P35-49 P50-64 P65+ Ad-Supported Cable 10:36 7:47 9:17 11:59 15:42 20:52 23:54 English Broadcast 2:36 2:40 3:04 5:03 9:04 15:35 19:26 Cable’s Advantage 4X 3X 2X ~1.7X ~1.3X ~1.2X Total Day P2-11 P12-17 P18-24 P25-34 P35-49 P50-64 P65+ Ad-Supported Cable 2:23 1:51 2:17 3:10 4:09 5:17 5:55 English Broadcast 0:48 0:50 0:58 1:58 2:40 4:12 4:46 Cable’s Advantage 4X 3X 2X ~1.7X ~1.2X Primetime Source: Nielsen Npower time period Live+7 data; English broadcast= 11 nets; 9/19/16-1/15/17

Ad-Supported Cable’s Time Advantage Extends Across All Dayparts Source: Nielsen Npower time period Live+7 data; early mon= M-F 6-9a; Daytime=M-F10a-4pm; Late night= M-F 11:30[-1:30am; Wknd Day Sa/Su 1-7pm) 9/19/16-1/15/17; total TV= PUT

In Fact, Practically 60% of TV Viewing Occurs Outside The Coveted ‘Primetime’ Daypart Source: viewing distribution chart= A18-49 live+7 put impressions, 9/19/16-1/15/17

Primetime Ad-Supported Share Of Total TV Impressions (4Q16) Cable Delivers 2-to-1 Premium Impressions Among Key Targets Primetime Ad-Supported Share Of Total TV Impressions (4Q16) P2-11 P12-17 P18-24 P25-34 P35-49 P50-64 P65+ Ad-Supp Cable 74% 69% 69% 66% 61% 56% 55% Eng. Broadcast 26% 31% 31% 34% 39% 44% 45% Source: Nielsen NPOWER live+7 time period share of total TV impressions (English bdcst + ad-supported cable); 9/19/16-1/15/17

…and More Viewers During Each Hour Of The Week In Primetime Primetime Ad-Supported Cable’s Advantage Over English Broadcast’s Viewership By Hour Cable's Advantage Monday 8:00 PM - 9:00 PM 8,152 Friday 8:00 PM - 9:00 PM 7,385 9:00 PM - 10:00 PM 14,340 10,325 10:00 PM - 11:00 PM 13,033 9,661 Tuesday 8:00 PM - 9:00 PM 5,241 Saturday 8:00 PM - 9:00 PM 10,336 11,046 11,767 10,249 10,007 Wednesday 8:00 PM - 9:00 PM 3,324 Sunday 7:00 PM - 8:00 PM 1,130 4,454 8:00 PM - 9:00 PM 4,180 9,501 8,615 6,236 Thursday 8:00 PM - 9:00 PM 3,803 9,584 8,733 Source: Nielsen Npower time period Live+7 data; ad-supported cable v. English broadcast= 11 nets impressions by hour by day of the week; 9/19/16-1/15/17

Primetime Viewership (OOO) By Day: P18-49 Throughout the Retail Window, Cable Holds A Big Ratings Edge Primetime Viewership (OOO) By Day: P18-49 Ad-Supported English Cable Broadcast Sunday 19,901 14,860 Monday 22,986 11,144 Tuesday 20,958 12,113 Wednesday 19,170 13,410 Thursday 18,642 11,269 Friday 16,806 7,683 Saturday 18,033 7,330 Retail Days Source: Nielsen Npower time period Live+7 data; ad-supported cable v. English broadcast= 11 nets impressions; 9/19/16-1/15/17

Sports is a Slam Dunk for TV

# of Hours of Sports Programming Available By Source 125,000 Annual Hours of Sports On TV – 96% of It On Ad-Supported Cable # of Hours of Sports Programming Available By Source (2016) Pay Cable 0.5% (656) Broadcast 3.9% (4,889) Ad-Supported Cable 95.6% (119,892) Source: Nielsen Year in Sports Report; P2+; Nielsen Live+SD hours; all sport programming; includes Hispanic; Viewing is for all sports on TV

Cable Dominates With 87% of All Live Sporting Events Total All Measured Nets: 87% Source: VAB Analysis of Nielsen Npower data; includes hispanic nets; 2Q15-1Q16; total day

State of News, Especially Local News

TV is Top For News Information Source: Pew Research Center, Survey conducted Jan. 12-Feb. 8, 2016. “The Modern News Consumer”.

In Local Broadcast Late News, Heavy Ad Loads (Equal # of Ads in Late Local B’cast News and Local B’cast Primetime) 12-Market Total: Broadcast Local Prime vs. Late News Unit Shift 1st Week of May & 4th Week of September - 2013 vs. 2016 May ‘13 vs. ‘16: Prime +5%, Late Night flat Sept ‘13 vs. ‘16: Prime +6%, Late Night flat 1st Week of May ‘16 1st Week of September ‘16 Source: VAB Analysis of Nielsen Ad*Intel data; Units are equilivized. Market List reflects 12 COX markets that account for approximately 75% of their footprint per 2016 SNL Kagan estimates: Phoenix, San Diego, Las Vegas, Norfolk, Los Angeles, Providence, Oklahoma City, Omaha, New Orleans, Wichita-Hutchinson Plus, Baton Rouge, Tulsa Dates: May ‘13 (4/29/13-5/5/13), May ‘16 (4/25/16-5/1/16); September ‘13 (9/16/13-9/22/13), September ‘16 (9/19/16-9/25/16). Local Broadcast Station Affiliates: ABC, CBS, NBC, FOX.

Heavy Ad Loads…Coupled with Falling Ratings Put a Lot of Pressure on Local Broadcast Late News Wed, April 27th 2016 Vs. Wed, May 1st 2013 Thurs, September 22nd 2016 Vs. Thurs, September 19th 2013 Source: VAB Analysis of Nielsen Ad*Intel data; based on average individual commercial A25-54 rating for the time period. Market List: Phoenix, San Diego, Las Vegas, Norfolk, Los Angeles, Providence, Oklahoma City, Omaha, New Orleans, Wichita-Hutchinson Plus, Baton Rouge, Tulsa

Cable’s Alternative Programming During Late Local Broadcast News Time Slot Has Something for Everyone Source: cable programming during M-F 11-11:30pm

Cable’s Late Night Advantage: Younger –Significantly More A25-54 Than In Local Broadcast News % of Viewers 25+ in Late News Daypart (M-F 11-11:30p) % Viewers 25+ in Ad-Supported Cable Time Slot 25-34 14% …6 Out of 10 Broadcast Late News Viewers Are Over The Age 55+, Falling Outside Traditional 25-54 Buying Demo… 35-44 16% 55+ 49% 25-34 6% % Viewers 25+ in Local Broadcast News 35-44 11% 45-54 19% 55+ 64% 45-54 20% Source: Nielsen, Live, Big 4 Broadcast network affiliates, September 2016, late news daypart (M-F 11p-11:30p). *Cable average based on 95 networks measured by Ad*Intel (includes local avail time); Local Broadcast Station Affiliates: ABC, CBS, NBC, FOX. Market List: Phoenix, San Diego, Las Vegas, Norfolk, Los Angeles, Providence, Oklahoma City, Omaha, New Orleans, Wichita-Hutchinson Plus, Baton Rouge, Tulsa. Source: Nielsen, Live, September 2016 (M-F 11– 11:30p)

Television’s Programming Investment & Advertising

Power of Programming Investment: Ad-Supported TV’s $261 Billion Investment Programming Expenses ($Billions) Source: SNL Kagan 2016

$261 Billion Has Fueled A Wealth of New Content – Originals Programs Have Doubled Across All Genres Genre # Originals/Nov’06 # Originals/Nov’16 Drama 47 224 Children 131 218 Comedy 46 180 General Documentary 174 1,014 Instruction/ Advice 186 312 Sports 388 706 Source: Nielsen Npower timeperiod Live+7 data; November 16 v. 06

Showcasing a Marketers Ad in This Premium Programming Environment Translates to Higher Recall During the past week, do you recall noticing any specific advertisers when: Source: Marketing Charts Study, Q3 2016, Advertising Channels with the Largest Purchase Influence on Consumers

…And a Greater Influence on the Consumer’s Final Purchase Decision Purchase Influence What has influenced you to purchase a product or service during the past 6 months? Source: Marketing Charts Study, Q3 2016, Advertising Channels with the Largest Purchase Influence on Consumers