1. Reigning Champ: Television Knocks Out the Competition

2. 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.

3. *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, A18+ UE = 243,020,000. Video & Social Network is a subset of each device’s (App+Web) 3

4. *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, A18-34 UE = 72,850,000. Video & Social Network is a subset of each device’s (App+Web) 4

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

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

7. 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

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

9. 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.

10. 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

11. How Are Viewers Watching TV?

12. 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

13. % 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

14. 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

15. 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.

16. % 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/ /15/17

17. Has Streaming Effected Linear TV Usage?

18. 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”

19. 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”

20. 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”

21. 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

22. 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.

23. 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.

24. A Closer Look Inside Linear Television

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

26. 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

27. 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

28. …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

29. 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

30. 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

31. 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

32. 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

33. …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

34. 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, ,860
Monday 22, ,144
Tuesday 20, ,113
Wednesday 19, ,410
Thursday 18, ,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

35. Sports is a Slam Dunk for TV

36. # 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

37. 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

38. State of News, Especially Local News

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

40. 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 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.

41. 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

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

43. 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 %
…6 Out of 10 Broadcast Late News Viewers Are Over The Age 55+, Falling Outside Traditional Buying Demo… %
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)

44. Television’s Programming Investment & Advertising

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

46. $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

47. 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

48. …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