STATE OF THE MEDIA:

CONSUMER USAGE REPORT

2011

The U.S. Media Universe

DEVICE OWNERSHIP1
(millions of people who own)

MOBILE & ONLINE CONSUMERS

(millions of users)

At least one TV DVD player 253

290

Mobile phone (ages 13+)2 Online3 232 Home/work PCs and laptops3 192

Video game console Digital cable DVR 129

Time spent is increasing faster than penetration.6

211 162

145

Mobile web
(ages 13+)4

Satellite 95

116

HOUSEHOLDS WITH TVS

(millions of households) 1

HOUSEHOLDS W/ BROADBAND
(millions of households)5

At least 1 TV 1 2 3

114.7million 17.7 32.7 28.3

Total

85.9 million

With paid TV access and broadband 80.9

4+

35.9 With broadcast TV only and broadband 4.9

HOW PEOPLE WATCH TV/VIDEO6

(millions of viewers, ages 2 and up)

SMARTPHONE PENETRATION8
(by ethnicity)

288

Traditional TV

Asian Hispanic

60% 50% 48% 39%

African-American White

On the Internet* 143 111 Timeshifted TV

Viewers using timeshifted TV grew 11% since Q2 2010.

Android is the preferred OS except among Asians, who typically opt for iPhones.3

ONLINE VISITS AND VIEWS

(per person per month)3

94
Mobile phone** 30

Domains Pages Facebook pages

2,905 830

MODES OF ACCESSING SOCIAL MEDIA7

Nearly 4 in 5 active Internet users visit social networks and blogs.9

97%
Computer

SMARTPHONE OS MARKET SHARE8

Windows Mobile Other

iPad

28

18%

iPhone

37 3%
Gaming console

RIM BlackBerry

7% % 4

Mobile phone

43%

Android

Smartphones

43%

Feature phones

57%

The American Video Viewer

AVERAGE WEEKLY MEDIA TIME10
(hours:minutes, by age and platform)

46:16 Traditional TV^ 41:04

32:47 28:08 24:52 22:24 24:17

32:58

ALL AGES (2+)

AGES 2-11 1217 1824 2534 3549 5065 6:03

65+

5:50

3:58 0:30 1:25

4:02

4:58 2:38

Internet on a computer^^^

2:21

1:50

2:57 1:29 1:30

3:07

2:42

1:42

Timeshifted TV^

0:27

0:07

0:21

0:45

0:50

0:35

0:23

0:12

Video on the Internet*

0:07

NA

0:20^^

0:17

0:12

0:05

0:01

<0:01 Video on a

mobile device**^^

MOBILE VIDEO11
Top channels by unique viewers

STREAMING SERVICES12
% of Netflix and Hulu viewers who watch using a(n)... Just 1.2 million people used a standalone streaming device, such as Apple TV or Boxee, but these devices account for nearly 1/5 of their TV screen time.13 Hulu Users 89% Computer directly
Netflix Users

YouTube FOX ABC Comedy Central # 5 CBS 1 2 # 3 # 4

# #

42%

Computer connected to a TV Video game console

20% 14% 8% 50%

Internet enabled TV

2% 6%

MOBILE VIDEO APP ATTRIBUTES14

% of consumers who deem the following attributes as Very important 63% 47% 43% 42% 39% 34% 33% 38% 38% Somewhat important 23% Total

Free/Low subscription rates Wide selection User-friendly New content No/few ads

86% 80% 81% 80% 73%

TOP FIVE ONLINE VIDEO DESTINATIONS BY

UNIQUE VIEWERS15 (in millions) #1 YouTube #2 VEVO #3 Yahoo! #4 Facebook #5 MSN/ Windows 31.2 35.0 39.5 2:52 2:34 2:26 2:20 126.5 10:01 TIME SPENT PER MONTH14 (hours:minutes per person) Netflix #1 YouTube #2 Tudou.com #3 Hulu #4 #5 Megavideo

24.8

Although unique viewers who are women watch more video on social networks and blogs, men spend 9% more time watching.16

The Seeking, Searching U.S. Consumer

TOP APP CATEGORIES17
Percent of tablet and smartphone users who downloaded an app in the past 30 days. PERCENTAGE WHO DOWNLOAD, BY CATEGORY AND COST Free & paid apps Free apps only Paid apps only

27%

33%

27% 16%
2%

21% 18% 6% 45% Music

23% 20%
2%

8% 68% Games

45% Maps/Navigation

45% Social Networking

16% 14%
3%

14% 14%
3%

14% 14%
3%

33% News

31% Entertainment

31% Sports

say that they are okay with advertising on their devices if it means 30% they can access Banking/Finance content for free.3
2%

14% 14%

51% of consumers

10%10%
3%

11% 10%
2%

9% 11%
2%

7% 7%
2%

5%7%
2%

23% Books

23% Restaurants/ Dining

22% Coupons/ Discounts

16% Recommendations/ Reviews

14% Magazines

MONTHLY BREAKDOWN OF TIME SPENT

(by age, in MB)

Dialer 6% Texting 14%

All other Apps 53% Facebook and Twitter are more popular apps among women, while Google+ has a larger reach among men. Retail apps such as Barcode Scanner (14% of Android users) and eBay Mobile (13%) are growing in reach. On average, app downloaders have 33 apps on their phones.

Social Networking 5%

Email/IM 5%

Browser 10%

Maps/Location 4% Music/Video 2% Camera 1%

33

SIMULTANEOUS USAGE17
Percent of consumers who did the following on their tablet while watching TV... Programming Commercials Checked email site Female Male Total

TOP SOURCES OF INFORMATION19

Preferred sources for product and service information Consumer Ratings Consumer Reviews Companys Website Call Center Email Video Clip Live Chat Companys Facebook 15% Mobile App 9% 8% 7% Online Ad Companys Twitter 30% 34% 47% 45% 50% 63% 62%

Surfed web for unrelated information

Visited a social networking site Looked up info related to the TV program I was watching on a product for an ad I saw on TV on coupons or deals related to an ad I saw on TV
0 10 20 30 40 50 60 70

MONTHLY DATA USAGE8

(by age, in MB)

534 321
216 90

578 412
264 177

Q3 2011 Q3 2010

232
122

133 70
59 30
65+

1317 1824 2534 3544 4554 5564

TOP RETAIL AND CONSUMER ELECTRONICS WEBSITES3

(by audience size in millions) TIME SPENT (log scale) 100 min./person TOP 5 WEBSITES Computer & consumer electronics Mass merchandiser Apple 68.7 Microsoft 93.8 Amazon 72.0

50

33% of Americans online

visited Amazon in September.5 Walmart Stores 34.5

20 Target 26.0 10.0 Overstock.com 19.5

10

ShopAtHome.com

Adobe CNET 28.0 23.5 Mozilla 25.7

Young women and those with middle incomes ($25k75k) are more likely to visit Computer and Consumer Electronics websites. Young men and those with higher incomes ($100k+) are more likely to visit Consumer Electronics news sites.5 20% 50% ACTIVE REACH (log scale)

2 5%

10%

The Globally Connected Consumer

Nielsen's survey of more than 25,000 online respondents from 56 countries around the world reveals consumer's multi-screen purchase behavior/intentions.
DEVICE PENETRATION20
Percentage of online respondents who Already own 6% 11% Will purchase a Smartphone Tablet

HD HD TV 3D TV TV with Internet

Worldwide
HD

Already own 35% 6% 17% 36% 12% 19% 23% 23%

Will purchase 23%

HD TV 3D TV

TV w/Internet Smartphone Tablet

21%

Latin America
23% 26% 5% 25% 19% 5% 31% 30% 30% 22%

DEVICE PENETRATION19,20
Percentage of online respondents who Already own 6% 11% Will purchase a Smartphone Tablet

HD HD TV 3D TV TV with Internet

Asia Pacific Europe

13% 10% 6% 4% 12% 37% 15% 31% 31% 18% 7% 26% 44% 18% 30% 14% 27%

31% 28%

12%

Middle East, Africa, Pakistan

28% 31% 13% 11% 8% 27% 19% 29% 20%

27%

Sources & Notes

SOURCES
1. Nielsen. National People Meter, Universe Estimates (November 2011) 2. Nielsen. Mobile Media Marketplace (Q3 2011) 3. Nielsen. NetView, Home & Work (September 2011) 4. Nielsen. Mobile Netview (September 2011) 5. Nielsen. Based on Universe Estimates for the 15th of each month, Home & Work (Q2 2011) 6. Nielsen. (Q2 2011) 7. NM Incite. State of Social Media Survey (April 2011) 8. Nielsen. U.S. Mobile Insights, National (Q3 2011) 9. Nielsen. (May 2011) 10. Nielsen. Data uniquely based on the Total Population in the USall 297 million Americans over age 2whether or not they have the technology (Q2 2011) 11. Nielsen. U.S. Mobile Video Survey (Q3 2011) 12. Nielsen. Netflix/Hulu survey (March 2011) 13. Nielsen. Custom Survey (November 2011) 14. CTAM/Nielsen. Roadmap to Video Apps (What Makes Viewers APPy?). (August 2011) 15. Nielsen. VideoCensus, Home & Work (September 2011) 16. Nielsen. VideoCensus, Home & Work (May 2011) 17. Nielsen. Applications Playbook (Q3 2011) 18. Nielsen. Smartphone Analytics, Device Metering Data (September 2011) 19. NM Incite (October 2011) 20. Nielsen, Global Omnibus Survey, (O3 2011)

NOTES
Includes those viewing at least one minute (reach) within the measurement period. This includes Live viewing plus any playback within the measurement period. Internet figures are from home and work. Hours:minutes for Internet and video use are based on the universe of persons who used the Internet/watched online video via their computers. All Internet figures are weekly or monthly averages over the course of the quarter. * Due to a change in the format of Netflix stream URLs, streaming for the Netflix brand was not reported in the April and May VideoCensus reports. This was corrected with June-forward reporting. ** Video user projection, time spent and composition data based on survey analysis of past 30 day use during the period. The mobile video audience figures in this report include mobile phone users (aged 13+) who access mobile video through any means (including mobile Web, subscription-based, downloads and applications). ^ Includes Live usage plus any playback viewing within the measurement period. Timeshifted TV is playback primarily on a DVR but includes playback from VOD, DVD recorders, server based DVRs and services like Start Over. ^^ Nielsens mobile survey reports mobile video usage for those users 13 and older. This 12-17 is T13-17 for all mobile data. ^^^ Due to a change in the type of call used behind Facebooks AJAX interface, Nielsen NetView data for Facebook page views and duration were underreported for June and July. This was corrected with August-forward reporting.

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