1. 111 PTPA May 2009 Programming in Digital Era David J. LeRoy Chad Davis With commentary from Craig Reed Multicasting in a 4 Screen World

2. 222 PTPA May 2009 Things That Do Not Change  The pubTV audience today is like the audience of 50 years ago!  Cume or reach  Rating or GRPs  Mechanics of Dayparts

3. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 3 Median Age of Prime Time TV Viewers Source: NPM Sample, May, 2007

4. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 4 Stations & Channels 19503.8N/A 19767.7N/A 19809.0N/A 198511.018.8 199011.733.2 199513.041.1 200013.561.4 200416.492.6 200516.396.4 200617.5104.2 200716.1118.6 Broadcast Stations All Channels Average Channels Tuned Average Channels Receivable 118.6 132.3 Total U.S. Cable +ADS 16.0 17.4 B’Cast Only 16.3 4.3 Copyright 2008 Nielsen Media Research

5. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 5 Average Hours of TV Usage Per Week Seasonal Swings Winter (Jan-Feb) vs. Annual Summer (Jul-Aug) vs. Annual +13 -15 +12 -10 +11 -7 +7 -6 +8 -5 +6 -4 AudimeterNational People Meter % Difference Copyright 2008 Nielsen Media Research +5 -3 Annual +5 -3 Total Day +5 -3 +4 -2

6. 666 PTPA May 2009 Myths from Chicken Littles  Cable will eat our lunch  Digital Video Recorders will let people program us out of existence  Internet will finish us off  OMG Mobile is going too…

7. 777 PTPA May 2009 Case Study: DVRs  The revolution that never happened  People can view more original episodes of their favorite programming  Big help for Pubcasters since DVRs help build loyalty and GRPs  Even helps in pledge… playback right away  Time shifting still affected by dayparts

8. Confidential & Proprietary Copyright © 2008 The Nielsen Company Page 8 DVR Playback by hour – P18-49 Percentage of DVR Playback November 2008 sweep

9. Confidential & Proprietary Copyright © 2008 The Nielsen Company Page 9 Distribution of Playback in Prime – P18-49 ABC, CBS, CW FOX and NBC November 2008 sweep

10. Video Consumer Mapping Study Council for Research Excellence 10 Measuring Video Is Becoming A Multi-Platform, Multi-Place Challenge TVDVRDVD Porta- ble DVD In- store TV Video on laptop Video iPod Video cell phone 10

11. Video Consumer Mapping Study Council for Research Excellence 11 The Observational Method 11 Video

12. 12 PTPA May 2009 Here is the Epiphany  Look at the most used media by 18-24 year olds… Live TV  The Internet has replaced radio as the 2 nd most used medium  Boomers are the tipping point of Internet Use and Live TV

13. Video Consumer Mapping Study Council for Research Excellence 13 Except for those 45-54, 4-screen totals all add to 8½ hrs +/-2% Live TV: 309min Playback via DVR: 15min DVD or VCR: 23min Console games: 7min Web: 49min Email: 37min IM: 8min Software: 46min Computer video: 2min Mobile talk: 17min Mobile text: 2min Mobile web: 1min Mobile other (e.g. camera, etc): 0.5min Mobile video: 0.1min Environmental /Other video: 4min In-Cinema movie: 2min GPS navigation: 2min 1 st screen 2 st screen3 rd screen 4 th screen 1 st screen2 nd screen3 rd 4 th 8½ hrs 8½ hrs – 2% 8½ hrs + 1% 9½ hrs + 1% 8½ hrs It is widely recognized that those 65+ are heavy users of Live TV Among those 55+ time with email declines substantially and IM disappears DVR playback is highest among those under 55 Those 45-54 use TV like those older but computer like those younger Web use is highest for those under 45 DVD use is highest among the 18-34 Computer and environmental video small and mainly among those under 25 How Consumers Accumulated Their Screen Time Average Daily Minutes, Core Sample, N=752 observed days, Spring and Fall 2008 All participants, including non-users of various media, including concurrent media exposure By age group Total 1 st screen: 353min Total 2 nd screen: 143min Total 3 rd screen: 20min Total 4 th screen: 8min Mobile is mostly about talking, but with 12 mins texting for those 18-24 1 st screen2 nd screen3 rd 4 th 8hrs 31mins 8hrs 32mins 8hrs 18mins 8hrs 33mins 9hrs 34mins 8hrs 30mins How Consumers Accumulated Their Screen Time Average Daily Minutes, Core Sample, N=752 observed days, Spring and Fall 2008 All participants, including non-users of various media, including concurrent media exposure By age group Live TV: 309min Playback via DVR: 15min DVD or VCR: 23min Console games: 7min Web: 49min Email: 37min IM: 8min Software: 46min Computer video: 2min Mobile talk: 17min Mobile text: 2min Mobile web: 1min Mobile other (e.g. camera, etc): 0.5min Mobile video: 0.1min Environmental /Other video: 4min In-Cinema movie: 2min GPS navigation: 2min 1 st screen 2 st screen3 rd screen 4 th screen Total 1 st screen: 353min Total 2 nd screen: 143min Total 3 rd screen: 20min Total 4 th screen: 8min

14. 14 PTPA May 2009 Multitasking or CME (Concurrent Media Exposure)  CME with TV is 19%  CME with Internet 44%  CME by age cohort is the same for 18-64! About 28%  And 16% for 65+

15. 15 PTPA May 2009 Key Take Aways  Observational methodology has shown self reported media use is unreliable.  People underreport their use of TV and radio by about a third  People greatly over report their use of the Internet and Phone.  Linear media use is the prevalent use of TV  Everybody young and old uses about the same amount of media each day..  Hence dayparts determine media behavior

16. 16 PTPA May 2009 Expanded Daypart Determinism

17. 17 PTPA May 2009 Not one paradigm shift but two Programming for many screens Programming for many digital channels

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26. 26 PTPA May 2009 The NPS Prime Time Schedule  Is built for turnover not flow…  Nature into Masterpiece  Antiques Road Show into American Whatever  Nova into Frontline  Why drive away your audience? Cume  In the digital environment why not schedule to maximize GRPs by using your digital channels?  We already know it works! Overlap stations and duopoly stations are successful.  Almost all viewing is still linear and CME! 90%

27. 27 PTPA May 2009 What Kind of Digital Channels Do You Want? TRAC Field Surveys IdahoUtahDC 2 nd Variety 41%48%41% Drama Comedy 23%24%28% High Def Only 20%13%20% Many Std Def Chns 11%15%11%

28. 28 PTPA May 2009 How it all works at a station  Who programs what?  Is there a theory about how to program the platforms?  Non-linear builds what audiences?  Linear still reigns

29. 29 PTPA May 2009 Programming Across Platforms  Get out of the silos  Platform agnostic  Know the medium  Know the audience  Get the numbers

30. 30 PTPA May 2009 fin (Chad’s Part Followed)