Evolution of the Video Viewer

Cheryl Idell, EVP Media Product Leadership

 New Technologies = Content + Convenience

Cable
Live Television Web-TV
Devices
VCR

Tablet
s
DVR
Time
Shifting Internet
Smartphones
Gaming
Consoles Laptops
DVD Player

Copyright © 2010 The Nielsen Company. Confidential and proprietary.

Viewers Use The Best Screen Available

153:47 3:22
hrs
+ hrs

Usage is independent of time

Usage is independent of location

Monthly Time Spent Viewing Video in Hours: Minutes Per User 2+, Q4 2009
3

Copyright © 2010 The Nielsen Company. Confidential and proprietary.

DVR

Copyright © 2010 The Nielsen Company. Confidential and proprietary.

 DVR’s have a big impact on viewing
•37% of HH’s have DVR’s
–90% growth since 2007

• Playback is over 27 hours per month

–21% of all viewing in DVR homes
–7% of all TV viewing

•45% of recorded ads are viewed

Copyright © 2010 The Nielsen Company. Confidential and proprietary.

High Definition

Copyright © 2010 The Nielsen Company. Confidential and proprietary.

 Homes with HD sets have more TVs than
other homes

Total U.S. – 2.5 SD Homes. – 2.1 HD Homes. – 2.7

HD Sets SD Sets SD Sets HD Sets SD Sets

0.9 1.6 2.1 1.5 1.2

56% of Homes have at least one HD set capable of

viewing in HD
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Average TV Sets per Household for September 15, 2010

Source: Nielsen NPM Sample, September 15th, 2010 Copyright © 2010 The Nielsen Company. Confidential and proprietary.
 Technology attracts technology
Peripheral Penetration by Television Set Type

SD Sets HD Sets HD sets are more likely

to be hooked up to a
70%
DVR, DVD player or
66% game console
60%

50%
49%
40%

30% 35%
31% 32%

20% 22%
19%
10% 13%

0%
DVR DVD Player VCR Game Console
8

Source: Nielsen NPM Sample, September 15th, 2010 Copyright © 2010 The Nielsen Company. Confidential and proprietary.
 Location, Location, Location
Distribution of Total U.S. Household Tuning Minutes by Daypart and Set Location

Tuning to SD Sets Tuning to HD Sets

100%
90% 7% 7% 6% 11% All Other
18% 17% 16% 24% 15% 15% 12%
80% 26%
Basement
70% 23% 22% 18% 76%
34% 71% 72%
60% Kitchen
58% 58%
50% 54%
51% Other Bedroom
40%
30% 37% Master Bedroom
20%
Living/Family Rooms
10%
0%
Total Prime Day Late Total Prime Day Late
Day Time Night Day Time Night

HD TVs keep viewers out of the bedroom in late night

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Note: Tuning to HD sets does not necessarily denote tuning to HD content.

Source: Nielsen NPM Sample, May 2010; All Other includes Dining Room, Patio, Garage, Office, Detached Building, andCopyright
Other © 2010 The Nielsen Company. Confidential and proprietary.
 Across Cable, Even When “True HD” Is Possible,
Some Viewing is Still in SD
Distribution of Tuning Minutes Among HDTV = Y, HD STB = Y, Home Receives
Channel in HD = Y, for Households in Primetime
SD HD
100%

90%
26%
80%

70%
72% 70%
60% 77%

50%

40%
74%
30%

20%
28% 30%
10% 23%

0%
Entertainment Kids News Sports
Network Network Network Network
10

Source: Nielsen NPM Sample, May 2010 Copyright © 2010 The Nielsen Company. Confidential and proprietary.
 Across Cable, Males View More in “True HD,”
Kids View Less
Distribution of Tuning Minutes Among HDTV = Y, HD STB = Y, Home Receives
Channel in HD = Y, Cable in Primetime
SD HD
100%
90%
80% 44% 47% 44%
70% 57%
68% 67% 68% 69% 74%
60% 79% 77%

50%
40%
30% 56% 53% 56%
20% 43%
32% 33% 32% 31% 26%
10% 21% 23%

0%
7
S

4
4

64
17

34

49
11
1

1
-1

-4

-6
-3
LD

-
-

-
2-
2-
F2

35
18

18

35
12

18

18
F1
H

M
M

M
W

W
H

11

Source: Nielsen NPM Sample, May 2010 Copyright © 2010 The Nielsen Company. Confidential and proprietary.
3DTV

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Copyright © 2010 The Nielsen Company. Confidential and proprietary.

3DTV Viewing Experience
• Viewers expect 3DTV to be more lifelike, immersive and
realistic
• Over half (52%) rated it better than expected.

57%

48% 48% 47%

Part of
the action
Watch
More Closer to shows not
engaged characters normally
watch

13

Copyright © 2010 The Nielsen Company. Confidential and proprietary.

 What to Watch in 3D
• 77% of consumers think 3DTV viewing will be geared to special events, as
opposed to regular programming

• Top Genres:
71% -
hardcore/
regular gamers

64% 62% 60% 54% 48% 43% 40% 35%

Sports Nature/Animal Action Movies Video Sci-Fi Travel Music

Adventure Games Concerts

14

Copyright © 2010 The Nielsen Company. Confidential and proprietary.

 Reality Check on 3DTV

Figuring out the cost,

convenience and
content equation

15

Copyright © 2010 The Nielsen Company. Confidential and proprietary.

Online Viewing

16

Copyright © 2010 The Nielsen Company. Confidential and proprietary.

There is limited evidence of cord cutting

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Source: National People Meter Sample (1/08 to 4/10)

Copyright © 2010 The Nielsen Company. Confidential and proprietary.

Online long-form video is still too small to make an
impact on a macro level

18

Copyright © 2010 The Nielsen Company. Confidential and proprietary.

Long-form viewing skew younger and female
High Long Form Usage By Demographic
70%

60%

50%

40%

30%

20%

10%

0%
Male Female 2-11 12-17 18-24 25-34 35-49 50-64 65+

19

Copyright © 2010 The Nielsen Company. Confidential and proprietary.

It’s All About the Available Content

20

Copyright © 2010 The Nielsen Company. Confidential and proprietary.

Connected Devices

21

Copyright © 2010 The Nielsen Company. Confidential and proprietary.

Tablets penetration is driven by early adopters
Penetration of Connected Devices

25%
21%
16%

8% 6%
4%

Smartphones* Portable game Portable media Netbooks eBook readers Tablet Computers
players players

Percentage of Owners Who Identify as “Early Adopters”

48%

37%
35% 35%
30%
26%

Smartphones Portable game Portable media Netbooks eBook readers Tablet Computers 22
players players

Questions used: Q6 Which of the following Source: September 2010 Nielsen

categories of connected devices do you or Connected Devices Playbook
General Population Sample N=9590, Netbook Ownersany one in your
(n=1,293), household
Tablet currentlye-readers
owners (n=749), own? (n=1,089), Portable Media Players (2,118), * Smartphone penetration is
Portable game Player (1,678), Smartphones (2,336) derived from Nielsen’s Q2 2010
Copyright © 2010 The Nielsen Company. Confidential
Mobile Insights study. and proprietary.
Like HDTV, Tablet owners are more likely to
own multiple connected devices

Connected
Device owners
have an average
of three devices

2.9x 2.3x
3.2x

4.5x 5.4x

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General Population Sample N=9590, Netbook Owners N=1,293, Tablet owners N=749, e-readers N=1,089, Portable Media Players N=2,118, Portable
game Player (1,678), Smartphones N=2,336
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Best Available Screen: Print and video
benefit from the iPad’s larger screen size

24

Q38: Which of the following media content do you regularly access through your connected device?
N= 452, 864
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Connected device owners are comfortable
with mobile advertising

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Q58: Please think about mobile ads on your connected devices. How much do you agree or disagree with the following statements about advertising on your mobile device
N=3,894; 379
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
iPad users are far more receptive to
advertising

26

Q58: Please think about mobile ads on your connected devices. How much do you agree or disagree with the following statements about advertising on your mobile device
N=379; 684; 2,894
Page 26
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Content + Convenience

1. Convenience of time shifting and quality of HDTV changes established

media patterns
2. Content availability is crucial to driving usage
3. Consumers use the best available screen for the best purpose and
content

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Copyright © 2010 The Nielsen Company. Confidential and proprietary.

 Emerging technologies are changing
viewing behaviors
Cable
Live Television Web-TV
Devices
VCR

Tablet
s
DVR
Time
Shifting Internet
Smartphones
Gaming
Consoles Laptops
DVD Player

28
Internet Enabled

Copyright © 2010 The Nielsen Company. Confidential and proprietary.