Left To Your Own Devices

Transcription

1 V I D E O A D V E R T I S I N G B U R E A U - R E P O R T Left To Your Own Devices Understanding Consumption In Today s Connected World Q1 2018

2 Contents Summary 3 The Impact of Connected Devices 4-18 Media Consumption Overview Device Segmentation Ad-Supported Multiscreen TV Brands Contact Information 43 Appendix I Time-Shifted TV Appendix II Major Ethnicities Device Usage

3 Summary In our latest quarterly report surveying the video landscape, Left To Your Own Devices, we take an expanded look at the impact of connected devices on the overall ecosystem and put time spent with streaming in proper perspective. Consumers are living in a video-fueled world it accounts for over 50% of the 11 hours that people spend with media per day - but it s important to note that Television continues to be the leader of this world with live TV representing 70% of total video viewing. However, we certainly understand that different demographics and people in different life stages may consume media differently than others. In recognition of these differences, we ve developed a comprehensive segmentation analysis that highlights the who, what, where, when and how by device to provide a deeper education on the nuances that exist within the video ecosystem. Although overall time spent with Television (the device) has decreased as video viewing continues to grow on alternative devices such as connected devices and smartphones, ad-supported multiscreen TV brands are well-positioned to continue capturing audiences across all demos and across any screen. Consider these stats: In any given minute there are 10x more Adults 18+ watching multiscreen TV brands than are on YouTube and there are 5x more Millennials watching multiscreen TV brands than are on Facebook Ad-Supported TV brands collective unduplicated monthly reach on their owned digital platforms is nearly ubiquitous, reaching 86% of P18+, 97% of P18-34, 94% of P35-49, 90% of P50-64 Multiple ad-supported TV brands rank in the top 5 most popular digital platforms across major content genres In fact, ad-supported TV brands digital platforms collectively account for a large majority share of total time spent among some of the top content genres in digital: sports (P18-34: 81%), news (P35-49: 80%), TV-type entertainment (P18-34: 74%) 3

4 The Impact Of Connected Devices 4

5 The Average U.S. Internet Household Now Owns 11 Connected Devices The number of connected devices has increased from 10 in 1Q 17 AVERAGE # OF CONNECTED DEVICES BY INTERNET HH (Q1 2018) Smart Watches = 0.24 ereaders = 0.29 Fitness Trackers = 0.35 Personal Computers = 2.08 Smartphones = 1.95 Tablets = 1.27 Home Automation/Security = 0.55 Streaming Media Players = 0.75 Smart TV / 4K TV = 0.88 Video Game Consoles = 1.11 DVR / Blu-Ray Players = 1.07 Source: SNL Kagan, Consumer Insights U.S. Survey Summary Report, Q & Q3 2016: Q: In total, how many of the following types of internet-connected devices are used in your household? Base: 2,523. 5

6 Almost 85% Of U.S. HHs Now Have A High-Speed Data Subscription, A Basic Necessity For Streaming Video Content On Devices Estimated U.S. Residential High-Speed Data Subscribers (in millions) e Penetration % of HHs 59% 62% 65% 69% 72% 74% 76% 78% 80% 82% 84% Source: SNL Kagan Includes residential subscribers for cable, telco, wireless-only and satellite service. HHs represents occupied housing units derived from Nielsen UEs reports including occupied, temporarily occupied and occasional use housing units. 6

7 In The U.S., 228 Million People Stream Or Download Video Content Over The Internet; A Universe That Is Projected To Grow Another 20 Million By US Digital Video Viewers (Millions) Source: emarketer Feb 2018, internet users of any age who watch streaming or download video content via any device at least once per month 7

8 Consumers Can Stream Video Through A Myriad Of Devices, Both At Home And On The Go 8

9 Connected Platforms Like Multimedia Devices, SVOD & Smart TVs Continue To See Mid-Single Digit Penetration Growth As Connectivity Expands & Improves 90% Devices & Service Penetration In TV HHs Q % 64% 64% 55% 43% 38% 37% YOY Diff % +3% -8% +2% +10% +2% 0% +27% +16% Smartphone DVD Tablet SVOD DVR Game Console Enabled Smart TV Internet Connected Device Source: VAB analysis of Nielsen Total Audience Report 1Q 2018, Devices in TV Households. YOY Diff % reflects the YOY percentage point difference; i.e. High Definition TV has decreased two percentage points from 94% to 96%. Internet Connected Device = devices connected to the TV that are used to stream content such as Apple TV, Roku, Google Chromecast, Amazon Fire TV, Smartphone, Computer/Laptops, etc. 9

10 In Total, Two-Thirds Of Households Now Have Access To An Internet Enabled TV-Connected Device 61% 67% 65% Internet Enabled TV-Connected Devices Household Access % 56% 67% 74% 79% 84% Total Black Hispanic Asian American March 2017 March 2018 Source: The Nielsen Total Audience Report, Q Internet enabled TV-Connected Device = enabled game consoles, internet connected devices (Apple TV, Roku, Google Chromecast, Amazon Fire TV), or enabled smart TVs. 10

11 Almost Two-Thirds Of Homes Have Access To A Subscription Video On Demand Service 58% Essentially, households with access to an internet enabled TV-connected device are very likely to also have access to an SVOD service 64% 49% Subscription Video On Demand Household Access % 56% 59% 67% 70% 76% Total Black Hispanic Asian American March 2017 March 2018 Source: The Nielsen Total Audience Report, Q SVOD = Netflix, Hulu, Amazon Prime. 11

12 However, It Should Be Noted That When It Comes To Overall Video Viewing Devices, Television Continues To Be Most Popular In The Household Average TV sets per U.S. household has increased from 2.3 in Average # of TV Sets Per U.S. HH vs. Average # of Connected Devices In Internet HHs TV Personal Computers Smartphones Tablets Video Game Consoles DVR / Blu-Ray Players Streaming Media Players Smart Watches Q Q Source: TV set data from SNL Kagan 2018, U.S. TV set projections; Includes Smart TVs and HD TVs. Connected device data from SNL Kagan, U.S. Survey Summary Report, Q1 2018; Q: In total, how many of the following types of internet-connected devices are used in your household? Base: 2,523 12

13 Because Of TV s Continued Popularity, Ad-Supported TV Reach Has Increased Slightly Even With The Proliferation Of Internet-Connected Devices & Streaming Services Average P2+ Quarterly Reach (000) 284, , , , , , , , , , ,442 1Q '08 1Q '09 1Q '10 1Q '11 1Q '12 1Q '13 1Q '14 1Q '15 1Q '16 1Q '17 1Q '18 Major Device & Service Launches by Year Red line represents the 10-year average reach (291.3MM) Source: VAB analysis of Nielsen R&F Time Period Report, Live +7, P2+, broadcast calendar comparison (1Q 08-1Q 18); TV reflects all ad-supported broadcast & cable TV. 13

14 And Average Daily Time Spent With Ad-Supported Television Is Only Down -6% (or 14 Minutes) From 10 Years Ago Daily Average P2+ Time Spent With TV (Hrs:Mins) 3:47 3:51 3:58 4:05 4:01 4:06 4:06 3:52 3:54 3:39 3:33 1Q '08 1Q '09 1Q '10 1Q '11 1Q '12 1Q '13 1Q '14 1Q '15 1Q '16 1Q '17 1Q '18 Major Device & Service Launches by Year Red line represents the 10-year average daily time spent (234 mins) Source: VAB analysis of Nielsen R&F Time Period Report, Live +7, P2+, broadcast calendar comparison (1Q 07-1Q 18); TV reflects all ad-supported broadcast & cable TV. 14

15 To Put OTT Viewing In Perspective, Only 10% Of Total TV Usage In Streaming Capable Homes Is From Streaming Through A TV-Connected Device % Of Video Streaming Out Of Total Usage Of TV in Streaming Capable HHs % Of Video Streaming Minutes By Device 2% 22% 40% 10% 36% Internet Connected Devices Smart TV Game Console DVD/Blu-ray Device Source: The Nielsen Total Audience Report, Q1 2018; March 2018, P2+. Internet Connected Device = devices connected to the TV that are used to stream content such as Apple TV, Roku, Google Chromecast, Amazon Fire TV, Smartphone, Computer/Laptops, etc. 15

16 Teenagers Are Streaming The Most As A Percentage Of Their Total TV Usage (Almost One-Quarter Of Their Time) 50% of teenagers video streaming minutes are done through a game console vs. 27% for P18-34 % Of Video Streaming Out Of Total TV Usage in Streaming Capable HHs 23% 15% 18% 10% 11% 5% P2+ P2-11 P12-17 P18-34 P35-49 P50+ Source: The Nielsen Total Audience Report, Q1 2018; March

17 Roku Is The Top Internet-Connected Device Brand And Is Projected To Increase It s Leading Market Share Over the Next 4 Years US Connected TV Device Users by Brand % of Connected TV Device Users 46% +44% 32% 34% +26% 27% 17% 17% 13% 13% Roku Fire TV Chromecast Apple TV Source: emarketer 2018, Individuals of any age who use the internet through each device at least once per month; connected TV devices are not mutually exclusive 17

18 As Streaming Grows So Does OTT s Share Of Ad Impressions Within The Digital Ecosystem - Up 50% Over The Last 2 Years Ad Composition and Growth, By Device (excluding TV) Tablet, 10% Tablet, 9% Tablet, 10% Smartphone, 21% Smartphone, 15% Smartphone, 21% OTT, 26% OTT, 37% OTT, 39% Desktop, 43% Desktop, 36% Desktop, 28% Q1 '16 Q1 '17 Q1 '18 Source: VAB analysis of Freewheel Video Monetization Report Q1 2018, Based on US. OTT = Viewing content delivered over an internet connection on a TV streaming device, including devices like Roku, Apple TV, Connected TVs, etc. Chart excludes Set-top box VOD data and thus percentages were re-weighted to account for this exclusion. 18

19 Media Consumption Overview 19

20 Adults Now Spend Over 11 Hours With Media Each Day On average, Adults 18+ spend more time with Live TV than any other media Average Daily Time Spent With Media Per Adult 18+ Based On Total U.S. Population Q1 18 (Hrs:Mins) 0:06 0:26 Q :10 0:36 1:46 0:39 2:22 0:47 11:06 0:14 0:06 0:22 Q :08 0:36 1:47 0:37 2:14 0:44 10:47 0:31 0:06 0:21 Q :54 0:31 1:48 0:40 2:14 0:43 10:30 0:13 Live TV Time-Shifted TV Radio DVD/Blu-ray Device Game Console Internet Connected Device Internet on a Computer App/Web on a Smartphone App/Web on a Tablet Source: The Nielsen Total Audience Report, Q Note: Some amount of simultaneous usage may occur across devices. Internet Connected Device = devices connected to the TV that are used to stream content such as Apple TV, Roku, Google Chromecast, Amazon Fire TV, Smartphone, Computer/Laptops, etc. 20

21 Daily Video Consumption By Adults 18+ Is Nearly Six Hours, Or 54% of Total Media Time Live TV accounts for 70% of total video viewing Average Daily Time Spent Per Adult 18+ On Video Based On Total U.S. Population Q1 18 (Hrs:Mins) 0:08 5:27 0:40 0:31 0:04 0:10 0:09 5:46 5:57 0:04 0:05 0:09 0:10 0:10 0:40 0:46 0:36 0:36 3:54 4:08 4:10 Q Q Q Live TV Time-shifted TV TV-Connected Devices Video on a Computer Video Focused App/Web on a Smartphone Video Focused App/Web on a Tablet Source: The Nielsen Total Audience Report, Q TV-Connected Device = DVD, game console, internet connected device; Internet Connected Device = devices connected to the TV that are used to stream content such as Apple TV, Roku, Google Chromecast, Amazon Fire TV, Smartphone, Computer/Laptops, etc. 21

22 Television Continues To Represent The Majority Of Video Consumption Across Major Demos, Even Millennials TV accounts for 80% of total video viewing for Adults 18+; 55% for Millennials & 75% for Adults :05 0:10 5:57 0:46 0:10 Average Daily Time Spent On Video Based On Total U.S. Population (Hrs:Mins) 0:08 0:13 4:08 0:15 0:07 0:14 5:32 0:51 0:11 4:46 1:05 4:08 2:17 A18+ A18-34 A35-49 TV (Live+Time-Shifted) TV-Connected Devices Video on a Computer Video Focused App/Web on a Smartphone Video Focused App/Web on a Tablet Note: Keep in mind, TV content is viewed on mobile and computer screens as well Source: Nielsen Total Audience Report, Q TV-Connected Device = DVD, game console, internet connected device; Internet Connected Device = devices connected to the TV that are used to stream content such as Apple TV, Roku, Google Chromecast, Amazon Fire TV, Smartphone, Computer/Laptops, etc. 22

23 TV Has A Clear Cut Time Spent And Reach Advantage Against Media Usage On Other Devices 33:22 P18+ Average Weekly Time Spent 1Q 18 (hrs:mins) 16:32 1:07 4:34 1:09 3:02 0:41 1:41 Live + DVR/Time- Shifted TV App/Web on a Smartphone Video on a Smartphone Internet on a Computer Video on a Computer Internet Connected Device DVD/Blu-Ray Device Game Console 88% 79% 58% 60% 28% 35% 15% 15% Weekly Reach (based on U.S. Population) Source: VAB analysis of Nielsen Total Audience Report 1Q 2018, percentage of users among U.S. population, P18+. Internet Connected Device = devices connected to the TV that are used to stream content such as Apple TV, Roku, Google Chromecast, Amazon Fire TV, Smartphone, Computer/Laptops, etc. 23

24 Device Segmentation 24

25 Television Is The Primary Video Device Across All Demos, However Time Spent With The Device Has Either Decreased Or Remained Flat YoY Average Weekly Time Spent With TV (Hrs:Mins) 51:45 51:42 Q1 '17 Q1 '18 43:29 43:15 30:41 29:23 34:25 33:22 30:34 28:58 19:02 16:24 13:02 10:57 18:33 16:01 0% 0% -6% -13% -3% -19% -15% -4% P2+ P2-11 P12-17 P18+ P18-34 P35-49 P50-64 P65+ 87% 86% 82% 88% 77% 91% 94% 94% Average Weekly Reach in 1Q 18 (based on U.S. Population) Source: VAB analysis of Nielsen Total Audience Report 1Q 2017 & 1Q 2018, hours:minutes among population; reach % of users among U.S. population. TV includes live + time-shifted TV. 25

26 Time Spent & Reach Is Growing For Internet-Connected Devices, With Kids And Millennials Spending The Most Time With This Media Average Weekly Time Spent With Internet-Connected Devices 1Q 18 (Hrs:Mins) 3:10 4:14 2:42 3:02 4:17 3:34 2:20 1:24 P2+ P2-11 P12-17 P18+ P18-34 P35-49 P50-64 P65+ 36% 46% 37% 35% 41% 43% 30% 20% Weekly Reach (based on U.S. Population) Source: VAB analysis of Nielsen Total Audience Report 1Q 2018; hours:minutes among population; reach % of users among U.S. population. Internet-Connected Device = devices connected to the TV that are used to stream content such as Apple TV, Roku, Google Chromecast, Amazon Fire TV, Smartphone, Computer/Laptops, etc. 26

27 Meanwhile, Time Spent With Game Consoles And Reach Skew Towards Teenagers And Millennials Average Weekly Time Spent With Game Consoles 1Q 18 (Hrs:Mins) 2:02 2:50 4:11 1:41 3:53 1:33 0:27 0:09 P2+ P2-11 P12-17 P18+ P18-34 P35-49 P50-64 P65+ 19% 31% 35% 15% 28% 20% 7% 3% Weekly Reach (based on U.S. Population) Source: VAB analysis of Nielsen Total Audience Report 1Q 2018; hours:minutes among population; reach % of users among U.S. population. 27

28 Internet Usage On Computers Skew Towards Adults Who Are Actively Using This Media Both At Home And Work Average Weekly Time Spent With Internet on a Computer 1Q 18 (Hrs:Mins) 4:34 4:29 5:24 5:03 3:07 P18+ P18-34 P35-49 P50-64 P65+ 60% 62% 65% 62% 49% Weekly Reach (based on U.S. Population) Source: VAB analysis of Nielsen Total Audience Report 1Q 2018; hours:minutes among population; reach % of users among U.S. population. 28

29 However, Watching Video On A Computer Skews Younger Adults Even Though About 50% Of Users Still Don t Engage In This Activity Average Weekly Time Spent With Video on a Computer 1Q 18 (Hrs:Mins) % of computer users who watch video on the 1:09 1:34 1:38 0:52 0:20 device 46% 52% 50% 43% 34% P18+ P18-34 P35-49 P50-64 P65+ 28% 32% 33% 26% 17% Weekly Reach (based on U.S. Population) Source: VAB analysis of Nielsen Total Audience Report 1Q 2018; hours:minutes among population; reach % of users among U.S. population. 29

30 Smartphones Are Nearly Ubiquitous Among Both Millennials And Adults 35-49; With Adults Even Spending Slightly More Time On Apps & Websites Average Weekly Time Spent With Apps/Websites on a Smartphone 1Q 18 (Hrs:Mins) 16:32 17:58 19:22 16:51 10:41 P18+ P18-34 P35-49 P50-64 P65+ 79% 87% 88% 80% 56% Weekly Reach (based on U.S. Population) Source: VAB analysis of Nielsen Total Audience Report 1Q 2018; hours:minutes among population; reach % of users among U.S. population. 30

31 Watching Video Content On A Smartphone Skews Towards Millennials Though From Both A Time Spent And Reach Perspective A much higher percentage of smartphone users watch video on their device in comparison to computers, where only about one-half of users consume video content Average Weekly Time Spent With Video Focused App/Web on Smartphone 1Q 18 (Hrs:Mins) % of smartphone users who watch video on the device 1:45 1:07 1:19 74% 82% 77% P18+ P18-34 P35-49 P50-64 P65+ 0:48 0:24 67% 61% 58% 71% 68% 54% 34% Weekly Reach (based on U.S. Population) Source: VAB analysis of Nielsen Total Audience Report 1Q 2018; hours:minutes among population; reach % of users among U.S. population. 31

32 With The Advantage Of A Larger Screen, Internet Usage On Tablets Skew Older Than Smartphones With A Sweet Spot Of Adults 35+ Average Weekly Time Spent With Apps/Websites on a Tablet 1Q 18 (Hrs:Mins) 5:26 5:36 6:15 5:58 4:13 P18+ P18-34 P35-49 P50-64 P65+ 47% 42% 52% 49% 46% Weekly Reach (based on U.S. Population) Source: VAB analysis of Nielsen Total Audience Report 1Q 2018; hours:minutes among population; reach % of users among U.S. population. 32

33 However, Like We See With Other Devices, Video Use On Tablets Skew Younger With Adults Watching More Content Than Any Other Adult Demo The penetration of tablet users watching video on their device isn t as high as smartphones, but it is greater than computer users Average Weekly Time Spent With Video Focused App/Web on a Tablet 1Q 18 (Hrs:Mins) % of tablet users who watch video on 0:38 0:52 0:48 the device 56% 61% 56% 52% 53% P18+ P18-34 P35-49 P50-64 P65+ 0:33 0:14 26% 25% 29% 26% 24% Weekly Reach (based on U.S. Population) Source: VAB analysis of Nielsen Total Audience Report 1Q 2018; hours:minutes among population; reach % of users among U.S. population. 33

34 Television Continues To Be The Leading Vehicle For Video Reach, But Mobile And Internet-Connected Devices Are Growing Average Weekly Reach By Video Device, By Demo 1Q 18 86% 82% 88% 77% 71% 91% 68% 94% 94% 58% 54% 46% 31% 37% 35% 35% 28% 15% 41% 43% 32% 33% 26% 28% 25% 20% 29% 30% 26% 26% 20% 34% 24% 17% 7% 3% P2-11 P12-17 P18+ P18-34 P35-49 P50-64 P65+ Television Internet-Connected Devices Game Console Video on a Computer Video on a Smartphone Video on a Tablet Source: VAB analysis of Nielsen Total Audience Report 1Q 2018; reach % of users among U.S. population; reach based on video-focused app/web use for Smartphone, Computer and Tablet. Mobile and computer-related data is not available for P2-11 or P Internet-Connected Device = devices connected to the TV that are used to stream content such as Apple TV, Roku, Google Chromecast, Amazon Fire TV, Smartphone, Computer/Laptops, etc. Charts exclude reach for DVD/Blu-ray devices. 34

35 Likewise, Television Accounts For A Majority Share Of Time Spent With Video But Connected TV Devices Are Growing Especially Among Younger Demos 18% (4:14) P % (2:50) 70% (16:24) 2% (0:48) 4% (1:19) 4% (1:38) 4% (1:33) 9% (3:34) P % (28:58) % Share Of Weekly Time Spent By Video Device Q1 18 (Hrs:Mins) P12-17 P18+ 15% (2:42) 24% (4:11) 61% (10:57) 1% (0:33) 2% (0:48) 2% (0:52) 1% (0:27) 5% (2:20) P % (1:07) 3% (1:09) 4% (1:41) 89% (43:15) 7% (3:02) 2% (0:38) 81% (33:22) 0% 1% (0:14) 1% (0:24) (0:20) 0% (0:09) 3% (1:24) P65+ 3% (0:52) 6% (1:45) 6% (1:34) 95% (51:45) 14% (3:53) P % (16:01) 15% (4:17) TV (Live + DVR/Time-Shifted) Internet Connected Device Game Console Video on a Computer Video on a Smartphone Video on Tablet Source: VAB analysis of Nielsen Total Audience Report 1Q 2018; based on hours:minutes among population; reach based on video-focused app/web use for Smartphone, Computer and Tablet. Mobile and computerrelated data is not available for P2-11 or P Only includes video capable platforms. Internet-Connected Device = devices connected to the TV that are used to stream content such as Apple TV, Roku, Google Chromecast, Amazon Fire TV, Smartphone, Computer/Laptops, etc. Charts exclude time spent with DVD/Blue-ray devices. 35

36 Segmentation: Consumption Skews By Video Device Television Connected Devices Smartphone Tablet PC Computer Game Consoles How: Via one of their multiple TV sets Via TV-connected devices such as Apple TV, Roku, Google Chromecast, Amazon Fire TV, Smartphone, Computer/Laptops, etc. Apps/websites through a smartphone (iphone, Android, etc) Apps/Website through a tablet (ipad, Android, etc) On a desktop or laptop On a XBOX One, PS4 or Nintendo Switch Who: People of all ages & ethnicities; P35+ are heaviest users Skews towards Kids and Millennials; good penetration also against P35-49 Internet usage skews Millennial and P35-49 with video usage skewing Millennial Internet usage skews P35+ with video usage skewing P18-49 Internet usage skews P35-64 with video usage skewing P18-49 Skews towards Teenagers and Millennials Where: At home, where they have an average of 2.6 TV sets per household At home, or someone else s home Anytime, Anywhere: home or on the go At home, at work or on the go (like commuting) At home or at work Mostly at home, although newer devices enable on the go viewing When: Mostly watched live for an P18+ average of 33+ hours / week; all day with emphasis on primetime and wknds 3+ hours / week on average with 4+ hours / week among Kids & Millennials; nights & weekends Video Viewing: 1 hour / week on average and almost 2 hours / wk for Millennials; snacking all day Video Viewing: A little over 30 mins/wk on average and almost 1 hr/wk for P18-49; snacking during the day, nights & weekends Video Viewing: 1 hr/wk overall and a little over 90 mins/wk for P18-49; during the day (lunch), nights & weekends 2 hours / week overall and about 4 hours among Teens & Millennials; nights and weekends What: A range of long-form premium content via broadcast TV and/or MVPD subscription Streaming long-form entertainment, sports, children s shows via apps & web Streaming or downloading of shortform video / clips or long-form content Streaming or downloading of shortform video / clips or long-form content Streaming or downloading of shortform video / clips or long-form content Streaming of longform entertainment, sports, children s shows via apps & web Source: chart includes VAB analysis of data from Nielsen Total Audience Report 1Q 2018, Nielsen NPower, SNL Kagan data 36

37 Ad-Supported Multiscreen TV Brands: Well-Positioned To Extend Reach Through Digital Platforms 37

38 Multiscreen (TV + online) Average Audience During Any Given Minute Highlights The Engagement Gap Between Multiscreen TV & Digital Platforms 10x more people are watching ad-supported TV content than are on YouTube 11x more people are watching ad-supported TV content than are on Facebook 35,728.4 Adult 18+ Average Audience (000) 3, ,161.62, , , , TV Brands YouTube Facebook Google Pandora Spotify Messenger Instagram Snapchat Yahoo Amazon AOL Twitter Pinterest Twitch Reddit ebay LinkedIn VEVO WhatsApp Buzzfeed Source: VAB analysis of comscore MediaMetrix Key Measures multiplatform (desktop + mobile) data, March 2018; P18+. Nielsen R&F Time Period Report, Live + SD, Total Day. March 1-31, 2018; P18+. Average Audience is based on the average minute, which is factored across the full month for websites and TV. TV Brands include linear TV and TV-related websites. Digital website measurement includes all visitor activity, not just video consumption. 38

39 Multiscreen (TV + online) 1, This Gap In Average Audience For Multiscreen TV Also Exists For Millennials Over 2x more people are watching ad-supported TV content than are on YouTube 5x more Millennials are watching TV than are on Facebook Adult Average Audience (000) 4, , TV Brands YouTube Spotify Pandora Facebook Google Snapchat Instagram Messenger Twitch Twitter Amazon Pinterest Yahoo Reddit WhatsApp VEVO LinkedIn Buzzfeed AOL ebay Source: VAB analysis of comscore MediaMetrix Key Measures multiplatform (desktop + mobile) data, March 2018; P Nielsen R&F Time Period Report, Live + SD, Total Day. March 1-31, 2018; P Average Audience is based on the average minute, which is factored across the full month for websites and TV. TV Brands include linear TV and TV-related websites. Digital website measurement includes all visitor activity, not just video consumption. 39

40 Collectively, Ad-Supported TV Brands Platforms Are Nearly Ubiquitous Online, Reaching Almost All Adults Ad-Supported TV-Branded Digital Reach % of US Population March % 97% 94% 90% 57% P18+ P18-34 P35-49 P50-64 P65+ Digital Platform Reach (Desktop + Mobile) Source: VAB analysis of comscore MediaMetrix multiplatform (desktop + mobile) data, Audience Duplication, March Unduplicated unique visitors based on a TV-branded digital platforms custom group list which includes ad-supported broadcast TV & cable TV brands and MVPDs. % are based on U.S. population per U.S. Census Bureau data 2017 Population Estimates, not digital universe. 40

41 Ad-Supported TV Brands Represent Some Of The Most Popular Digital Content Sports Ad-Supported TV Brands That Rank In The Top 5 Digital Platforms By Major Content Genre News Entertainment-TV Kids Weather Food Home Comedy P2+ P18-34 P18-49 P25-54 P50+ Source: VAB analysis of comscore Media Metrix Key Measures multi-platform (desktop + mobile) data, March 2018, based on categories (top 5 rankings based on Total Minutes Viewed ). P2+ = (Desktop P2+, Mobile 18+) 41

42 In Fact, Ad-Supported TV Brands Collectively Account For A Large Majority Of Total Time Spent Among Some Of The Top Digital Content Genres % Share Of Total Minutes Spent By Digital Category Sports Category News Category Entertainment (TV-Type) 21% 19% 22% 20% 16% 22% 32% 20% 18% 17% 33% 26% 43% 39% 33% 79% 81% 78% 80% 84% 78% 68% 80% 82% 83% 67% 74% 57% 61% 67% P18+ P18-34 P35-49 P50-64 P65+ P18+ P18-34 P35-49 P50-64 P65+ P18+ P18-34 P35-49 P50-64 P65+ Ad-Supported TV Brands Other Ad-Supported TV Brands Other Ad-Supported TV Brands Other Source: VAB analysis of comscore Media Metrix Key Measures multi-platform (desktop + mobile) data, March 2018, based on total minutes within comscore defined categories Sports, General News, Entertainment-TV. P2+ = (Desktop P2+, Mobile 18+) 42

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44 Appendix I Time-Shifted TV 44

45 The Vast Majority Of TV Viewing Across All Major Demos Continues To Be Done Live Average Weekly TV Time Spent: Live vs. Time-Shifted Viewing 1Q '18 12% 13% 11% 12% 13% 15% 12% 10% 88% 88% 89% 88% 87% 85% 88% 90% P2+ P2-11 P12-17 P18+ P18-34 P35-49 P50-64 P65+ % "Live" TV % Time-Shifted TV Source: VAB analysis of Nielsen Total Audience Report 1Q 2018; based on U.S. population. 45

46 From A Time Spent And Reach Perspective, DVR/Time-Shifted TV Usage Skews Adults 35+ As Younger Demos Shift More Towards On-Demand Options Average Weekly Time Spent With DVR/Time-Shifted TV (Hrs:Mins) Q1 '17 Q1 '18 5:00 5:27 5:24 4:00 4:13 4:22 4:29 4:49 3:33 3:43 2:09 2:03 2:08 2:09 1:27 1:21 +17% +5% +2% +1% +3% -5% -3% +3% P2+ P2-11 P12-17 P18+ P18-34 P35-49 P50-64 P65+ 51% 48% 42% 52% 43% 60% 57% 50% Average Weekly Reach in 1Q 18 (based on U.S. Population) Source: VAB Analysis of Nielsen Total Audience Report 1Q 2017 & 1Q 2018, hours:minutes among U.S. population; reach % of users among U.S. population. 46

47 Appendix II Major Ethnicities Device Usage 47

48 TV Reaches More Blacks & Hispanics Than Smartphones, Computers or Multimedia Devices 88% 90% 88% 74% 79% 81% 80% 84% P2+ Average Weekly Reach 1Q 18 71% 71% 60% 60% 54% 54% 47% 47% 35% 32% 38% 43% 15% 15% 18% 13% TV App/Web on Smartphone App/Web on Computer Internet on Computer Internet Connected Device Game Console Total Black Hispanic Asian American Source: Nielsen Total Audience Report, Q TV includes time-shifted TV. 48

49 More Time Is Spent With TV Than With Any Other Device Across Almost All Major Ethnicities, Except Asians Who Are Lighter TV Viewers 46:17 P18+ Average Weekly Time Spent 1Q 18 33:22 24:14 16:54 16:32 19:25 16:01 17:15 3:02 3:23 3:16 3:44 4:34 3:58 3:07 6:01 1:41 1:53 1:42 1:29 2:01 1:08 1:35 1:02 1:09 1:36 1:07 1:01 Live+Time-shifted TV App/Web on a Smartphone Internet Connected Device Internet on a Computer Game Console Video on a Computer Video Focused App/Web on a Smartphone Composite Black Hispanic Asian Source: Nielsen Total Audience Report Q1 2018, hours:minutes among users, P

50 The Major Ethnicities Watch The Large Majority Of Their TV Viewing Live Average Weekly TV Time Spent: Live vs. Time-Shifted Viewing 1Q 18 12% 9% 9% 12% 88% 91% 91% 88% Composite Black Hispanic Asian % "Live" TV % Time-Shifted TV Source: VAB analysis of Nielsen Total Audience Report 1Q 2018; based on U.S. population. 50