TV Guide Paid Content TV Study

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Inside the War for Viewers’ Attention: Who and What are Winning? How changing viewer behavior is disrupting entertainment November 3, 2011


TVGuide.com Fall 2011 TV Survey Results: TV fans are watching more TV than ever before – via a wider variety of devices and services than ever before

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants; Photo from Two and a Half Men by Adam Rose/Warner Bros./CBS

2


#1 new show

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

3


#2 new show

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

4


#3 new show

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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Fans are watching more TV 20000

% who watch 30+ hours per week

18000

32%

+14%

16000

14000

12000

10000

28%

8000

6000

4000

2000

0

6

2011 2

1 2010

Source: TVGuide.com Fall 2011 TV User Survey, August 2011;

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… and they’re watching more LIVE TV 93% 90%

2010

2011

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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‌ but also: 55% watch TV online

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants; Photo from Modern Family by Richard Cartwright/ABC

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15% watch 6 or more hours of online video per week, vs. 4% a year ago 20000

15%

18000

16000

14000

12000

10000

8000

4%

6000

4000

2000

0

1 2010

2011 2

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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62% watch more online/streaming content than they did a year ago

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants: Photo from New Girl by Greg Gayne/FOX

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71% watch more time-shifted TV than they did a year ago

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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19% pay more for content

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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41%

pay for time-shifted TV

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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34%

pay for online & streaming content

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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96% fast forward through DVR ads

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5897 Participants

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44% don’t mind ads, primarily because they “like to know about new products/services”

16 Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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Favorite ads on TV right now

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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27% will buy a tablet in the next year

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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When will they buy a tablet? 27%

25

20

15

13% 10

10% 5

0 1 For the holidays

2 In the next 6 months

3 In the next year

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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71% would buy an iPad, if $$ weren’t a factor

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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47% are likely to buy an iPad and 30% are likely to buy a Kindle Fire

23% other

30% Kindle Fire

47% iPad

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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81% stream free content

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants; Photo from The Office by Paul Drinkwater/NBC

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69% use paid content or subscription services 45%

40% 40%

36% 35%

31% 30%

25%

21% 20%

15%

10%

12% 10% 7%

5%

5%

4%

2%

other

1%

1%

0%

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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Why don’t some people buy content? “My time is full of TV from my digital service and free online streaming services.” “I want to choose the channels I pay for; not purchase a prescribed bundle.”

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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44% know what iCloud is

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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13% know what UltraViolet is

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5,897 Participants

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Appendix

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TVGuide.com’s product launches fuel growth

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24M

TVGuide.com

UNIQUES

Source: Omniture

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1.5M UNIQUES

TV Guide Mobile

5M INSTALLS

Source: Flurry Analytics

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TVGuide.com apps:

• 5M installs & 1.5M monthly active users

Home 91%

• 40% increase in engagement YOY Other 9%

Sources: TVGuide.com Mobile App User Survey; July 2011; 1,429 participants & Flurry Analytics through September 2011

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Social activity on TVGuide.com has exploded in the past year ...

and business is thriving as advertisers embrace Social TV

5M check ins

60+ sponsors

Source: TVGuide.com Internal Reporting

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Over 400,000 users have Watchlists

Source: TVGuide.com Internal Reporting

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Most Added Shows, Teams & Actors Are Diverse

Source: TV Guide Internal Reporting

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