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DVR Penetration............................................................................... 3 Ethnic Penetration.........................................................................4 DVR v. Non-DVR........................................................................... 5-6

Contents

Time Spent With DVR...................................................................... 8 Time Spent By Demo....................................................................9 Time Spent By Ethnicity........................................................ 10-11 Playback by Hour............................................................................ 13 Playback by Genre.......................................................................... 14 Live % v. Playback..................................................................... 15-18 Playback by Source.................................................................. 19-21 DVR Usage by Local Market....................................................23-26 Playback Days 4-7 v. 1-3.........................................................28-32

DVR PENETRATION

Half Of TV Households Do Not Own A DVR Total U.S. DVR Penetration

2% 41.

Non-DVR HH 48.3%

.8% 44

.2% 48

.4% 49

.7% 49

2013

2014

2015

.7% 51

DVR HH 51.7% 2011

2012

2016

Source: Nielsen June of each year.

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3

ETHNIC DVR PENETRATION

In Ethnic Homes, DVR Penetration Has Grown Slightly In The Past Year But More Than Half Still Do Not Own One DVR penetration is up 7% in Hispanic Homes v. YAG / DVR penetration is up 10% in Black Homes v. YAG Total U.S. DVR Penetration By Ethnicity Hispanic

Black

45.1%

2016

2015

42.2% 44.2%

2014

42.0% 42.5%

48.6%

39.5% 41.1%

2013

36.1% 38.1%

2012

31.3%

2011

34.8%

Source: Nielsen June of each year.


4

DVR V. NON-DVR

DVR Homes Consume 20% More Television; Greater Opportunity for Advertisers To Communicate Their Message At Scale Time Spent Per Week With TV DVR v. Non-DVR HH

52:34

Non-DVR

+19%

Total Day

62:03

DVR

Non-DVR

11:16

+20%

Primetime DVR

13:35

Source: VAB Analysis of Nielsen NPower Live+7 HUT/PUT;time spent of dvr v non-dvr hh; Prime=M-Sa 8-11&Su 7-11p; M-Su 6a-6a; 9/21/2015 - 07/24/2016


5

AFFLUENT DVR V. NON-DVR

This is Especially True Among Affluent Homes; DVR Homes Are Heavier Consumers Of TV Than Non-DVR Homes Affluent $100K+ HH: Time Spent Per Week With TV (DVR v. Non-DVR HH)

Total Day

Primetime

Non- DVR HH

37:24

9:29

DVR HH

51:01

12:31

% Diff

+37%

+33%

Source: VAB Analysis of Nielsen NPower Live+7 HUT/PUT;time spent of affluent (HH w/$100k+) dvr v non-dvr hh; Prime=M-Sa 8-11&Su 7-11p; M-Su 6a-6a; 9/21/2015 - 07/24/2016


6

TIME SPENT WITH DVR

Time Spent With DVR-Timeshifted TV Is Down, Hitting Its Lowest Level in the Past Three Years Time Spent With DVR/Time-shifted TV/Monthly (Hrs:min) 1Q14

:56 24

:23 27

:16 25

:39 27

1Q15

:21 25 :45 22

:52 22

1Q16

:38 25

:57 24

:59 20

:43 27

:39 27

:10 25

:12 22

:27 17

P2+

P18+

P18-34

P18-49

P25-54

Source: Nielsen Total Audience Report 1Q16


8

TIME SPENT BY DEMO

Viewing Decline Is Driven By Both Ends of the Age Spectrum – Especially Young Adults Who Have Experienced Double Digit Declines With Time-shifted TV Time Spent With DVR/Time-shifted TV/Monthly (Hrs:min)

K2-11 T12-17 P18-24 P25-34 P35-49 P50-64 P65+

Q1 2016 14:48 11:01 12:29 20:27 26:59 29:20 28:41 Q1 2015 18:16 13:23 15:16 24:26 28:52 31:20 30:41 % Diff -20% -17% -19% -16% -7% -6% -7%

Nielsen Total Audience Report 1Q16


9

TIME SPENT BY ETHNICITY

Same Story Across All Ethnicities As DVR/ Timeshifted Viewing Is Down Significantly

% Change in Time Spent With DVR/Time-shifted TV/Monthly (1Q16 v. 1Q15)

P2+ K2-11 T12-17 P18-24 P25-34 P35-49 P50-64 P65+

Black

-13% -18% -15% -13% -21% -11% -1% -25%

Hispanic

-16% -24% -22% -25% -13% -5% -17% -27%

Asian

-14% -29% -39% -53% -13% -12% -3% -10%



10

TIME SPENT

In General, Younger Viewers Spend Less Time With DVR-Timeshifted TV Than Their Older Cohorts Time Spent With DVR/Time-shifted TV/Monthly (Hrs:min): 1Q16

Composite

Hispanic

Black

31:20

30:41

28:52 26:33

26:32 24:26 21:13 19:00

18:16

21:38

19:59

19:03

17:44 15:16 13:07

14:09

14:23

13:23 12:01

11:42

10:32

CH2-11

P12-17

P18-24

P25-34

P35-49

P50-64

P65+



11

PLAYBACK BY HOUR

Timeshifting Occurs Mainly During Primetime and Extends Into Late Night Share of Avg Minutes Viewed in DVR Playback by Hour: A18-49

% 10

% 10

Majority of Timeshifting Occurs During 8p-12M

9% 8% 7% 6% 5%

5% 4% 3% 2% 1%

1%

6-7A

7-8A

8-9A

3%

3%

4%

4%

4%

3%

3% 2%

2%

9-10A

10-11A

11A-12P

12-1P

1-2P

2-3P

3-4P

4-5P

5-6P

6-7P

7-8P

8-9P

9-10P

10-11P

11P-12A 12-1A

1-2A

2-3A

3-4A

1%

1%

4-5A

5-6A

Source: VAB Analysis of Nielsen NPower; base= DVR; viewing source=dvr playback; 9/21/2015 - 07/24/2016


13

PLAYBACK BY GENRE

General Drama & Participation Variety Are The Most Timeshifted Genres Live+7 v. Live Prime Ratings By Program Genre Total U.S. P18-49 Program Type

Live

Live+7

(+/-)

PARTICIPATION VARIETY

0.44

0.68

0.24

GENERAL DRAMA

0.22

0.40

0.18

AWARD CEREMONIES

0.68

0.86

0.18

GENERAL VARIETY

0.23

0.33

0.11

CONVERSATIONS, COLLOQUIES

0.16

0.25

0.09

Hispanic P18-49

Black P18-49

Program Type

Live

Live+7

(+/-)

Program Type

Live

Live+7

(+/-)

AWARD CEREMONIES

0.48

0.61

0.13

GENERAL DRAMA

0.39

0.59

0.20


0.24

0.35

0.10

AWARD CEREMONIES

0.96

1.14

0.18

GENERAL DRAMA

0.13

0.22

0.10

POPULAR MUSIC

0.47

0.63

0.16

GENERAL VARIETY

0.16

0.24

0.07


0.41

0.52

0.11

GENERAL VARIETY

0.30

0.38

0.08

CONVERSATIONS, COLLOQUIES 0.11

0.16 0.05

Source: Nielsen, primetime; 9/21/15-7/24/16; participation variety= includes reality programs such as Bachelor and Amazing Race, etc…


14

LIVE % V. PLAYBACK

77% of TV Viewing Is Spent With ‘Live TV’ In Primetime – Ideal For Time Sensitive Marketing Campaigns % Live v. Playback Minutes P18-49

Total Day

Primetime

DVR Playback 20%

DVR Playback 23%

Live TV 80%

Live TV 77%

Source: Nielsen, Base=DVR HHs; 9/21/15-7/24/16


15

LIVE % V. PLAYBACK

Time-shifting Represents Less Than A Quarter Of Total TV Viewing Across The Age Spectrum – Even Lower Among 18-24 % Live v. Playback Minutes: Primetime

79%

80%

82%

76%

76%

79%

75%

79%

21%

20%

18%

24%

24%

21%

25%

21%

P2-11

P12-17

P18-24

P25-34

P35-49

P50+

F18-49

M18-49

Playback

Live Minutes



16

LIVE % V. PLAYBACK

In Affluent Homes, Which Tend To Spend More On Products & Services, ‘Live TV’ is The Norm – Comprising More Than Three-Quarters of Their Total TV Time % Live v. Playback Minutes in HHI $100K+: Primetime

75%

74%

75%

77%

83%

75%

74%

77%

25%

26%

25%

23%

17%

25%

26%

23%

P18-49

P25-54

P2-11

P12-17

P18-24

P25-34

P35-49

P50+

Playback

Live Minutes



17

LIVE % V. PLAYBACK

Looking By Ethnicity: ‘Live TV’ is More Prominent… Comprising Over 80% of Total TV Time % Live Minutes With The TV By Demo: Prime Black Hispanic

P18-49

83% 81%

P25-54

83% 82%

P2-11

86% 80%

P12-17

84% 82%

P18-24

85% 81%

P25-34

83% 80%

P35-49

83% 82%

P50+

87% 85%

F18-49

81% 79%

M18-49

85% 84%



18

PLAYBACK BY SOURCE

Breaking Down To Source: Less Than a Quarter of Ad-Supported Cable’s Programming Is Timeshifted % Live v. Playback Minutes by Source For P18-49: Primetime

Ad-Supported Cable

Broadcast

Total Day

15%

85%

Total Day

Primetime

25%

75%

Primetime

Playback

24%

46%

76%

54%

Live Minutes

Source: Nielsen, Base=DVR HHs; 9/21/15-7/24/16; English bdcst


19

PLAYBACK BY SOURCE

Among Affluent Homes, Majority of Ad-Supported Cable’s Programming Is Viewed ‘Live’ % Live v. Playback Minutes in HHI $100K+: Primetime

Ad-Supported Cable

Broadcast

53%

54% 63%

75%

75%

81%

47% 25%

25%

P18-49

P25-54

46%

37%

19% P18-24

P18-49

Playback

P25-54

P18-24

Live Minutes



20

PLAYBACK BY SOURCE

Overall, Convenience is A Top Motive For Time-shifting Programs; Only 29% of Millennials Cite Ad Skipping as Their Primary Reason % 58 % 60

Watch when convenient

% % 38 37

See missed episodes

% 29 % 37

Skip Ads

4% % 3 33

Can pause or rewind

Millennials All Respondents

% 29 5% % 3 33

Takes less time to watch

Not avail during live airing

% 29 % 24 % 19

Can watch back-to-back

Source: HUB Entertainment research 3/15; Survey of 1210 tV consumers 16-74 who watch at least 5 hours of tv /week and have broadband home access; What do you consider to be the biggest benefits of watching episodes of a current show at a later time?


21

DVR USAGE BY LOCAL MARKET

Down To The Local Market Level, Majority of Viewing Is With ‘Live TV’ Average Daily Time Spent in LPM Markets 4:44

Cleveland Pittsburgh

4:43

Detroit

St. Louis

4:14 4:08

New York

0:16

0:56

0:36 0:39

4:12

Orlando

3:49

Houston

0:05

3:32

Chicago

3:34

Washington, D.C.

0:04

3:36

Boston

3:38

Portland

3:26

Minneapolis

3:19

Denver

0:37 0:54

0:46

2:42

0:01

0:39 0:41 0:37

0:12

0:21

Live TV

0:02 0:29

3:01 2:53

0:02

0:13

0:41

3:27

Seattle

0:15 0:11

0:41 0:44

3:01

Miami

0:15

0:53

3:28

0:11

0:22

0:56

Sacramento

0:15

0:14 0:48

3:48

Phoenix

0:15 0:21

0:18

0:37

3:33

Dallas

0:16

0:49

4:04

Tampa

0:14

0:57

4:23

Philadelphia

San Francisco

0:04

4:15

Charlotte

0:08

0:54

4:35

Atlanta

0:11

0:47

4:28

Baltimore

Los Angeles

0:57

0:14 0:16

Watching Time-Shifted TV

0:18 0:14

Using Multimedia Device

Source: NLTV Feb 2016, Average Daily Time Spent HH:MM, P25-54, Live PUT, XPLT, Multimedia Device (Apple TV, Roku, Chromecast, etc) Nielsen Local Watch Report, April 2016


23


…and Time Spent with ‘Live TV’ is Greater in Set-Meter Markets Average Daily Time Spent in Set-Meter Markets Birmingham

6:27

Memphis Knoxville

0:53

5:05

Louisville

5:41

Norfolk

5:45

Nashville

0:45

5:23

Greenville

5:19

Greensboro

5:16

Richmond

0:48

0:50

0:54

0:48 0:54

5:19

Raleigh

0:45

5:05

Buffalo

4:57

Dayton

4:58

Cincinatti

4:58

Indianapolis

4:51

Hartford

0:48 0:54

0:43

0:47

Providence

4:36

Milwaukee

4:27

FT. Meyers

4:25

Kansas City

4:17

Albuquerque

4:25

San Antonio

0:42

3:55

Austin

0:41

3:14

San Diego

0:43

3:01 2:44

0:37

0:08 0:15

0:15

0:18

Live TV 0:11

0:43

0:13


0:11 0:43

0:10 0:18

0:11

0:55

0:44

4:03

0:09 0:16

0:16

0:52

4:28

West Palm Beach

0:20 0:16

0:13

0:47

4:04

Las Vegas

0:17

0:46 0:44

5:00

Oklahoma City

0:11

0:48

5:19

Columbus, OH

0:11

0:55

5:20

Jacksonville

0:13

0:44

5:31

New Orleans

0:11

0:06

0:11

5:29

Tulsa

Salt Lake City

0:52

5:56

0:12

0:40

0:16

0:54

0:10

0:37

0:16

Using Multimedia Device

0:17

0:21 0:09

0:18

Source: NLTV Feb 2016, Average Daily Time Spent HH:MM, P25-54, Live PUT, XPLT, Multimedia Device (Apple TV, Roku, Chromecast, etc) Nielsen Local Watch Report, April 2016


24


Locally, Hispanic Viewing with Timeshifted TV Is Minuscule Hispanic A25-54 Average Daily Time Spent

0:25 0:17 0:34

0:14

0:22

0:24

0:09 0:46

0:06

0:09

0:11

0:35

0:26

0:29

0:14 0:29

0:12 0:27

0:16

75% 3:56

0:13

3:59

3:50

3:20

3:15

3:18

3:11

3:01

2:59

2:58

25% Denver

New York

Phoenix

Live TV

Sacramento

Chicago

Houston


Dallas

Los Angeles

San Francisco

Miami

Using a Multimedia Device

Source: NLTV Feb 2016, Hispanic, Average Daily Time Spent HH:MM, P25-54, Live PUT, XPLT, Multimedia Device (Apple TV, Roku, Chromecast, etc) Nielsen Local Watch Report, April 2016


25


…and ‘Live TV’ Viewing is Even More Prominent Among Blacks, Locally Black A25-54 Average Daily Time Spent 0:12 0:50

0:14

0:11 0:46

0:39

0:46

0:41

0:17

0:09

0:58

0:39

0:12 0:51

0:11

0:11

0:31

1:02

0:13 0:36

75% 6:43

6:17

5:39

6:06

5:37

5:57

5:37

5:19

4:47

4:48

25% Detroit

Philadelphia

Dallas

Live TV

New York

Atlanta

Houston


Chicago

Washington, D.C.

Los Angeles

Miami

Using a Multimedia Device

Source: NLTV Feb 2016, Black, Average Daily Time Spent HH:MM, P25-54, Live PUT, XPLT, Multimedia Device (Apple TV, Roku, Chromecast, etc) Nielsen Local Watch Report, April 2016


26

PLAYBACK DAYS 4-7 V. 1-3

About 15% Of Playback Occurs in Days 4-7 Playback Day 1-3 v 4-7 Minutes : Primetime

Ad-Supported Cable

DVR Playback:

Broadcast

P18-49

P18-24

P18-49 P18-24

Days 1-3:

88%

89%

84% 85%

Days 4-7:

12% 11%

16% 15%

Source: Nielsen; 9/21/2015- 07/24/2016; Prime; Share of avg minute viewed; Bdcst 6


28


Getting Credit for Playback in Days 4-7 Increases Ratings; Can Vary By Specific Programming Widely Ratings by Stream: Primetime

Ad-Supported Cable

English Broadcast

P18-49

P25-54

Live

12.8 14.8

Live+3

15.3 17.7

Live+7

15.6 18.1

Days 4-7 Playback

+2%

+2%

Live

5.6 7.3

Live+3

7.6 9.8

Live+7

8.0 10.2

Days 4-7 Playback

+4%

+4%

Source: Nielsen; 9/21/2015- 07/24/2016; Prime; Bdcst 6


29


…This is True Across The Age Spectrum, Especially For Broadcast Programming Ratings by Stream: Primetime

Ad-Supported Cable

P2-11

P12-17

P18-24

P25-34

P35-49

P50+

Live+3

10.1 9.4 10.2 14.5 18.4 24.6

Live+7

10.2 9.5 10.3 14.8 18.8 24.8

Days 4-7 Playback

+1%

+2%

+1%

+2%

+2%

+1%

English Broadcast

Live+3

3.1 3.6 3.7 6.3 10.4 18.0

Live+7

3.2

3.7

3.8

6.6

10.9

18.5

+3%

+4%

+3%

+4%

+5%

3%

Days 4-7 Playback

Source: Nielsen; 9/21/2015- 07/24/2016; Prime; Bdcst 6


30


In Fact, Broadcast’s Top Programs Have Significant Playback In Days 4-7 Top 20 Broadcast A18-49 Programs % of Playback in Days 4-7/ Primetime

A18-49 Rank

1

Program Name

% in Playback Days 4-7

A18-49 Rank

Program Name

EMPIRE 17% 11

22%

16% 12

VOICE-TUE 15%

3

X-FILES 22% 13

NCIS 19%

4

OT, THE

0%

14

AMERICAN IDOL-WEDNESDAY

14%

GREY’S ANATOMY

16%

15

BACHELOR, THE

12%

2

5 6 7

BIG BANG THEORY, THE

MODERN FAMILY

% in Playback Days 4-7

SCANDAL 15% VOICE

11%

16 17

SURVIVOR 11% BLACKLIST 19%

8 HOW TO GET AWAY W/MURDER 16% 18 AMERICA’S GOT TALENT-WED 20% 9 AMERICA’S GOT TALENT-TUE 10

16% 19 AMERICAN IDOL-THURSDAY 18%

BLINDSPOT 20% 20

QUANTICO 18%

75% of Programs Wield An Above Broadcast’s Average of 15% Playback in Days 4-7 Source: Nielsen; 9/21/2015- 07/24/2016; Prime; Bdcst 6; Excludes sports and specials


31


Broadcast Programs Exhibit More Viewing Outside the C3 Window % of Playback in Days 4-7/ Primetime

English Broadcast

of Playback % in Days 4-7

# of Programs

Ad-Supported Cable

Share of Total

of Playback % in Days 4-7

# of Programs

Share of Total

21+%

54 21%

21+%

378 12%

11-20%

145 55%

11-20%

738 23%

0-10%

63 24%

0-10%

2,159 66%

Total

262 100%

Total

3,275 100%

Source: Nielsen; 9/21/2015- 07/24/2016; Prime; pgms with three or more telecasts


32

CONTACT US

For More Information Visit Us Online TheVAB.com Follow us: @VideoAdBureau Like us: facebook.com/VideoAdvertisingBureau Sean Cunningham

Danielle DeLauro

President & CEO

SVP Strategic Sales Insights

212-508-1223

212-508-1239

Jason Wiese

Evelyn Skurkovich

[email protected]

VP Strategic Insights

212-508-1219

[email protected]

[email protected]

VP Strategic Research & Insights

212-508-1220

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