Why TV Brands?

Over the Past Several Years, Technology and Video Usage Has Exploded in the US

Consumers Have Embraced Cutting-Edge TV Technology & Mobile Devices 13% 46% 40%75% 81% 78% 49%46%81% Penetration Levels YOY Growth Source: Nielsen Total Audience Report 3Q14 v year ago

Today, Consumers Expect Instant Access To Their Video Video Anywhere, Anytime Any Screen

Television Still Reigns as the Best Device For Watching Video “Best Device For Watching Video” (Among Owners of Each Device) - A18-49 CAB 2013 Custom Study, Video Nation: Anytime, Anywhere, Anyplace BASE: Watches video on device; 205 Overall, which of the following is the best device for watching video? Vs. YAG

Consumers Spend Half (48%) of Their Total Media Time With Television Avg Time Spent Per Day (Hrs: Min) Among P18+ Source: Nielsen Cross Platform Report 3Q14,P18+

…and Majority Of Their TV Viewing Is Live Time Spent Per Day (Hrs:Min) Among P18+ Source: Nielsen Cross Platform Report 3Q14,P18+; usage on each device

TV Captures The Lion Share Of Total Video Time Among Both Young and Old TV Share InternetMobile of Total VideoTVVideoVideo P %106:276:22 - P %89:136:17 - P %91:3216:053:06 P %112:3314:592:02 P %136:3212:141:36 P %177:149:001:03 P65+ 98%211:314:340:24 Monthly Time Spent (Hrs:Min) Source: Nielsen Cross Platform Report 3Q14; Total video=TV; internet video and mobile video

Young Adults Spend 4-5x More Time Watching TV than Internet Video TV Share InternetMobile of Total VideoTVVideoVideo T %89:136:17n/a M %86:317:11n/a F %92:015:20n/a A %91:3216:053:06 M %84:5019:333:29 F %98:1912:022:23 Monthly Time Spent (Hrs:Min) Source: Nielsen Cross Platform Report 3Q14; Total video=TV; internet video and mobile video

Adults Spend Half Hour a Day or Less With Digital Video Daily Time Spent With Digital Video v. TV Screen (Hrs:Min) Source: Nielsen Total Audience Report 3Q14

Increasingly, Digital Video is Being Consumed on a Smartphone Watching Video on a Computer Watching Television Watching Video on a Smartphone Monthly Time Spent (hrs:min) by Device 141:1910:421:46 Source: Nielsen Total Audience Report 3Q14 v yag;Total video= TV+comp+smartphone P2+ P18-49 P :33 133:56 13:48 12:40 2:07 1:42 P2+:# of Viewers v. YAG 282 Million -0.4% 144 Million -2.4% 125 Million +25.0%

In This New Omni-Screen World, Television is Still Thriving…

Consumers Are Driven To Branded TV Content

TV Programming Investment (in Billions) Source: SNL Kagan Media Trends; Cable investment into original pgm. TV’s Investment Into Its Programming Will Continue To Increase, Spurring Growth Across Screens $233 Billion invested since 2010

What Does $233 Billion Investment Into TV Content Buy These Days?

Compelling Original Programming That Has Dominated U.S. Video and Won Critical Acclaim

…and Branded TV’s Content Connection Extends Across All Screens Television Computer SmartphoneTablet

TV Brands Rank in the Top 5 Multiple Times in Most Major Content Genres Sports ESPN NBC Sports Network NFL.com FOXSports.com CBSSports.com TheChive.com Break.com College Humor/Cracked Comedy Central Adult Swim NBCU TV AOL On – Huff Post TV Tribune Broadcasting Wetpaint Ent. CBS.com ABC News CNN NBC News CBS News Buzzfeed.com VEVO Myspace MTV Networks Warner Music Bandsintown Amplified Source: CAB analysis of comScore data, December 2014 Wayfair Hearst HOUZZ.com HGTV About.com Home The Weather Channel Accuweather.com Yahoo! Weather Weatherbug.com MSN Weather NBCU TV AOL On – Huff Post TV Tribune Broadcasting TV Guide CBS.com Food Network Allrecipes BlogHer Food Mode Foodie AOL On – Huff Post Food Disney Entertainment Totally Kidz COOL- MATHGAMES.com Nickelodeon Kids & Teens Mattel SportsComedy TV Ent. Black General News Music HomeWeather TV Entertainment Kids Food Gaming PCH Digital GSN Midas Player Zynga EA Websites

Out of 1 Million + iPAD Apps, TV Brands are Among the Top 5 Downloaded From Over 1,000,000 Apps: Sports MusicTV NetworksComedy Watch ESPN ScoreCenter for iPad NBA Gametime Bleacher Report Team Stream Hudl News Pandora Spotify Beats Music Soundcloud BET NOW The CW Lifetime Food Network History A&E Networks FOX News BBC News Flipboard: Social News Magazine NBC News Wall Street Journal Pandora Comedy Central Ellen Vudu Viki Source: Apple app store 11/19/14; Most popular iPAD apps by category search term (excluding gaming apps) Weather Finance TV Entertainment Business Weather Channel for iPad Yahoo! Weather Weather+ Weatherbug MyRadar Weather Children Yahoo! Finance Wall Street Journal CNBC CNN Forbes Magazine Shazaam Entertainment Weekly Yap TV Xfinity TV Go E! Live from the Red Carpet TBN Mobile U-Verse Kids Yo Gabba Gabba Nickelodeon Watch Disney Channel Bloomberg TV + CNBC BBC News Yahoo! Finance Time Magazine

Source: Nielsen Npower Live+7 December 2014 P2+, Broadcast Television represents FOX, CBS, NBC, ABC, iON and CW; ComScore Multi-Platform Ad- Supported Cable + Broadcast Networks (Hrs: Mins) Ad- Supported Cable + Systems + Broadcast Websites (Hrs: Mins) 37:16 Monthly Time Spent (December 2014) (Average mins per visitor, Hrs: Mins) 107:21 144:37 Total Ad-Supported TV Brands (Hrs: Mins) This Compelling Content Results in the Average Consumer Spending Over 144 Hrs /Month With TV Content Across All Screens

That’s 3x More Time Spent Than With Facebook & the 4-Portals Combined Source: Nielsen Npower Live+7 December 2014 P2+, CAB analysis of comScore duplicated December 2014 data. Cable Television represents all measured Ad-Supported Cable nets; Cable network websites represents 61 cable network websites. Broadcast Television represents FOX, CBS, NBC, ABC, iON and CW Total Ad-Supported TV Brands (Cable + Systems + Broadcast: TV+ Web) (Hrs: Mins) 4 Portals + FB (Hrs: Mins) 43:04 Monthly Time Spent (December 2014) (Average mins per visitor, Hrs: Mins) 144:37

Facebook Google Yahoo! msn AOL Cable Networks / System Operators Monthly Time Spent (December 2014) (Average mins per visitor, Hrs: Mins) Online Only: Consumers Spent 12+ More Hours on TV Websites Than with the 4-Portals Combined Source: comScore December 2014 custom duplication analysis, average minutes per visitor, Cable network sites represent 61 ad-supported cable networks Broadcast, Cable Networks & System Operators Websites Google Yahoo! AOL MSN 37:16 24:25

Facebook Google Yahoo! msn AOL Cable Networks / System Operators Monthly Time Spent (December 2014) (Average mins per visitor, Hrs: Mins) Source: comScore December 2014 custom duplication analysis, average minutes per visitor, Cable network sites represent 61 ad-supported cable networks Broadcast, Cable Networks & System Operators Websites Facebook 37:16 18:39 …And 18 Hours Per Month More than Facebook

Ad-Supported TV Brands 4 Portals Facebook Ad-Supported TV Brands Dominant Across All Platforms Average minutes per visitor/viewer Source: Nielsen Npower Live+7 December 2014 P2+, CAB analysis of comScore duplicated December 2014 data (mediametrix, multiplatform). Nielsen Social December Cable Television represents all measured Ad-Supported Cable nets; Cable network websites represents 61 cable network websites and cable systems. Broadcast Television represents FOX, CBS, NBC, ABC, iON and CW. 4 portals = Google, AOL, MSN, Yahoo! 107:2123:29 23:161:09 6:5611:43 13:47 62MM Tweets 144:37 Monthly Time Spent (Hrs:Mins) 24:25 18:39 P2+

What about Ad Supported TV Brands vs YouTube?

Professionally Produced Content Sources: comScore Video Metrix September 2014 YouTube Partners Report, P13+; Nielsen Npower Live+7 Days, P13+, 9/1-9/30/14 Monthly “Time Spent” Average (Minutes Per Viewer) Total Ad-Supported TV vs. All YouTube Video Predominately UGC =UGC (Cable + Broadcast) Time Spent With YouTube Is Dwarfed By Time Spent With Ad- Supported TV…Creating a 5% YouTube / 95% TV Split

Sources: comScore Video Metrix September 2014 YouTube Partners Report, P13+; Nielsen Npower Live+7 Days, P13+, 9/1-9/30/14 Monthly Reach Average (P13+) TV Cume Reach vs. YouTube Unique Visitors (000) Professionally Produced Content Predominately UGC =UGC (Cable + Broadcast) Same Pattern Holds True When Look at Reach

Sources: comScore Video Metrix September 2014 YouTube Partners Report, P18-24; Nielsen Npower Live+7 Days, P18-24, 9/1-9/30/14 Monthly “Time Spent” Average (Minutes Per P18-24 Viewer) Total Ad-Supported TV vs. All YouTube Video Professionally Produced Content Predominately UGC =UGC (Cable + Broadcast) Among Younger Consumers Similar Usage Split Prevails: 88% TV / 12% YouTube

Consumer’s Passion for TV Content is Evident In Social Media…

Nearly 2 Billion Tweets were About Television in 2013 and 2014 Combined Source: 2013 & 2014 Social Guide Insights Report, Total Monthly Tweets. Month # of Tweets

Television Programming Generated 511 Million+ Primetime Tweets in 2014 Medium# of Tweets% of Tweets Total Cable Tweets320,952,03463% Total Broadcast Tweets178,001,39035% Total Pay Tweets12,208,8572% Total 2014 Tweets511,162,551100% Source: CAB Analysis of Nielsen Social Primetime 2014

In General Viewers “Chat” About TV Programs Frequently… 6 out of 10 Discuss a Few Times a Week or More CAB Custom Study, Video Nation: Anytime, Anywhere, Anyplace BASE: Respondents who engage in Social TV 600 How often do you do each of the following while watching television? Please think about these activities as directly related to the show or an advertisement you are watching. How Often Do you Chat / Post / Tweet About a Show While Watching TV? (A18-49) Less than once a wk: About once a week: Few times a week: 61% chat / post / tweet a few times a week or more Teens & Young Adults are even higher daily users: 40% of Teens 41% of % of % of 35+

Socially Active Viewers Endorse Products… Over 30% Comment on an Ad CAB 2013 Custom Study; Video Nation: Anytime, Anywhere, Anyplace BASE: Respondents who engage in social TV 610 Previously you indicated you do the above. Why do you do these activities? Select all that apply. Teens: 28% 18-24: 34% 25-34: 29% 35+: 29% Why Do You Post / Tweet / Chat During a TV Show? (%) A18-49

But, Most Importantly, Do TV Brands “Sell More Stuff” for Advertisers?

Television Ads Encourage Further Investigation and Ultimately Move Products Off the Shelves CAB 2013 Custom Study; Video Nation: Anytime, Anywhere, Anyplace 600 How often do you do each of the following while watching television? Please think about these activities as directly related to the show or an advertisement you are watching. 75% Look up information online about an advertisement currently watching 69% Once a week or more 62% Shop online or purchase something they have seen on a show / advertisement they are currently watching A18-49 How Often? 56% Once a week or more

That’s Why Pure-Play Internet Brands, Whose Businesses Are Solely Dependent On Internet Traffic To Drive Revenue, Rely on TV (Not the Internet) to Sell Their Product & Service In Just 5 Years These Brands Increased their TV Investment by Over a Third; 71% of TV Spend in Cable and Growing Source: Nielsen AdViews; Website category (national + spot TV); # of Brands: 2,7012,5992,5602,426 2,425 Website Category: 5 Year Trend TV Spend by Source (Billions)

In Fact, CAB’s Custom Analysis of 63 of the 75 Pure-Play Internet Brands Exhibited a Direct Correlation Between TV Spend & Website Traffic 63 Website Brand Advertisers: Unique Visitors vs. TV Spend Feb. ‘13 – April ’14 (15 month Half vs. Half Comparison) Source: Nielsen AdViews; Website category (subcategories: auto, travel, dating, gaming, care giving, entertainment, educational, financial, insurance, business services, retail); National TV spend Feb April 2014; comScore unique visitors P15+ TV Spend Up, Traffic Up TV Spend Down, Traffic Down 25 Advertisers When Spend DOWN -22% less unique visitors (on average) 38 Advertisers When Spend UP +33% more unique visitors (on average) 37

Deloitte “State of Media Democracy” Report Visited Website After Seeing Ad Keller Fay/ThinkBox “Paid.Owned. Earned” Report % of Visits Generated Source: Deloitte 2013 ‘State of Media Democracy” report; Keller Fay / ThinkBox 2013 TV Ads Continue To Generate Website Traffic 38

Simply Put Branded Content Delivers …

Young Adults (18-24) Men Women Men Women Men 50+ Women 50+ Hispanic Black Note: Local Ad Insertion Capabilities & Footprints Can Vary Slightly By Network/MSO Agreements Scale and Content Commitment Across Every Imaginable Demographic (10 Examples)

Top Content Across All Screens…Anytime/Anywhere