hat can 1,800 digital consumers and 1,200 digital business professionals tell you about the market? The 2012 digital publishing survey by Harrison Group, supported by Digiday and Deloitte, underscores the interactions among tablets, laptops, smartphones and e-readers in the systematic management of personal communications, research, shopping and publishing. What is clear from this study is that consumers are not only in charge, but they are charging ahead. Prepare to be surprised! Speaker: Jim Taylor, vice chairman, Harrison Group

1. Devices, Consumption
and the Digital Landscape 2012
Dr Jim Taylor
Vice Chairman
Harrison Group
CONFIDENTIAL, PROPRIETARY & TRADE SECRET INFORMATION
This document contains confidential, proprietary and trade secret information of Harrison Group, A YouGov
company and its subsidiaries and affiliates, and must not be disclosed whole or in part to any third parties
without prior written consent of Harrison Group, A YouGov company.

2. Two surveys: Consumer and Business
• Consumer: 1,890 U.S. Consumers
– 1,042 tablet owners; 1,114 Smart Phone owners
– Mean age 41; Median age 40
• The survey was fielded to produce a census-representative sample of U.S.
consumers, ages 18+.
• Survey oversampled tablet owners for sake of in-depth analysis; all data was weighted
to bring device ownership into U.S. population representative proportions
• Business: 1,252 U.S. Businesspeople
– Looks at tablet and other device use ―at work‖ — enterprise, SMB, and SOHO,
across industries
– 519 tablet owners/users
– 322 IT leadership and staff
– 620 people in the content creation, content distribution and publishing industries
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3. It’s A Multi-Device World
Smart-
phones
-
connections, co
mmunication
and
consumption
Users are
PC/Mac
efficient in the
- personal and
allocation of Tablets
work content
- content
creation and
storage
task to the most consumption
- productivity
responsive
device
eReaders
- appreciation of
reading
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4. 2012 Demand Outline
Device Ownership and Intent to Acquire
Desktop 75%
4%
Computer 21%
Laptop 74%
9%
Computer 17%
70%
Owners
Flat panel TV 12%
18%
Plan to acquire
49% (next 12 months)
Smartphone 16%
35% No interest in
27%
acquiring
Tablet Device 22%
51%
25%
eReader 13%
62%
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5. The Rise of the Digital Elite
―Digital Elite‖ 42%
(Own a tablet,
smartphone& PC)
• Includes 73% of all tablet
owners
20% • 40% of smartphone owners
• 39% of eReader owners
(meaning they own 4 devices)
4%
2010 2012 2012 Affluent
Market
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6. Price Pressure at Home
Expect to Expect to Currently Don’t Use, Plan
Same
spend more spend less Use to Next 12 mos.
Cellular/wireless
phone/data service for 15% 76% 9% 54% 12%
smartphone
Wireless data plan for 12% 67% 21% 16% 15%
tablet device
Broadband Internet 11% 79% 10% 83% 4%
Paid streaming video 10% 66% 24% 31% 12%
(e.g., Hulu Plus, Netflix)
Cable TV (via cable 8% 69% 23% 49% 4%
company)
Cellular/wireless phone for 7% 74% 19% 62% 4%
basic cell phone
Satellite TV service 7% 67% 26% 30% 6%
DVD/Blu-ray discs by mail 7% 67% 26% 28% 10%
service
Home phone 6% 74% 20% 62% 2%
Cable TV through 6% 65% 30% 18% 5%
television company
5

7. It’s Personal and Sometimes Work
• Use of tablet at work lags well behind desktops, laptops, and smartphones
Personal vs. Work Use
Personal Use Only 58% 55%
62%
71%
78% 82%
Both Work and 38% 41%
32% 42% 45%
Personal Use 38% 24%
15% 22%
30%
11%
18%
Only Use 6% 7% 6% 7%
4% 4%
This for Work
Desktop Laptop Smartphone Multimedia Tablet Dedicated
Computer HH Device Device eReader
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8. The Reading Revolution Continues
Of consumers read digital
79%
56% magazines, newspapers Among
Tablet
and/or books Owners
% Read digital magazines
Total 30%
Tablet Owners 44%
% Read digital newspapers
39%
53%
% read digital books
29%
57%
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9. The Growing Ubiquity of Digital
% Agree Strongly/Somewhat
“If I pay for a print newspaper or 2010 80%
“It seems magazine, I should be able to read it
digitally for free” 2011 85%
inevitable that all
forms of publications
will eventually be produced “It seems inevitable that all forms of 69%
publications will eventually be produced
almost exclusively in a almost exclusively in a digital format” 83%
digital format.”
“If I could select my own television
59%
83% content and have it streamed to a digital
device for viewing either on the device
(Up from 69% in 2010)
or on my home TV, I would give up my 64%
cable or satellite subscription”
“When travelling, I typically bring 59%
several different magazines
with me to read” 49%
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10. Consumption Continues to Grow
Will use device MORE: Will use device LESS:
Tablet — —
37% 10%
Dedicated eReader 35% 14%
22% 20%
Smartphone 29% 7%
26% 9%
Laptop/Netbook 24% 11%
18% 17%
Desktop Computer 17% 18%
17% 24%
Multimedia Handheld Device 17% 20%
15% 22%
Flat-panel HD TV 15% 17%
15% 14%
Tablet non-owners Tablet owners
9

11. Consumers and Publishers Do Not Agree;
The Case For Reading
The reading experience isn't as enriching as holding the actual 66%
paper publication in their hand 43%
They are emotionally attached to the printed word
64%
35%
They don't want to have to pay for this kind of content 63%
23%
They don't want to have to sign up and pay for another 62%
wireless service 36%
It's just isn't their style 60%
44%
They don't need another portable electronic device in their 58%
lives 24%
Reading electronically strains their eyes
58% Publishers
25%
They don't have devices that provide a good digital reading 58%
experience 9% Consumers
57%
It's not something they have seriously considered yet 24%
They are reluctant to adopt any more technology 57%
3%
They say reading would be more expensive when you factor 54%
in the cost of the device 21%
They don't trust digital devices to store all their files
52%
6%
They are not aware of good ways to do this yet 52%
8%
They can't read digital publications in as many places as they 46%
could read printed publications 15%
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12. Tablet Ownership Curve
60%
50%
27% Asymptotic
Plan to over next
acquire in 2 years
next 12 months
2012 (22%)
5%
2010
Survey Data Adoption
Estimate Based
on Intent
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13. Nearly half of all consumers will likely
own a tablet by 2013
Device Ownership and Intent to Acquire
21% 17% 18%
39% 35%
4% 9% 12% 51%
62%
11% 16%
75% 74% 70% 22%
13%
50% 49%
27% 25%
Desktop Laptop Flat panel TV DVR Smartphone Tablet Device eReader
Computer Computer
Owners Plan to acquire (next 12 months) No interest in acquiring
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14. Generations and Tablets
Current Tablet Owners / FutureOwners
(non owners who plan to purchase in the next 12 months)
Where Will Likely Purchase
Current Tablet Owner FutureTablet Owner
(% Brick & Mortar / Online)
Total Millennials 19% 23% 56% / 42%
Trailing Millennials 7% 12%
Leading Millennials 12% 11%
Xers 41% 38% 40% / 49%
Boomers / Matures 40% 39% 50% / 33%
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15. Where Are We Going Next?
Predicting Future Media and Technology Trends: Total Publishers/
Things I believe will happen within two years… Consumers Marketers Gap:
More newspapers will be read digitally than are read in
63% 50% -13
traditional printed paper form
More magazines will be read digitally than are read in
51% 43% -8
traditional printed paper form
More books will be read digitally than are read in traditional 49% 35% -14
printed paper form
Digital devices with tablet technology will be an integral part of the
48% 51% +3
in-school learning experience for children
Most children will learn to read on a digital device 44% 38% -6
Most well-known authors will publish their work through a direct
44% 27% -17
channel to consumers
People will be charged for much of the information they can
42% 32% -10
now get for free on the Internet
Most television programs will be transmitted to
36% 31% -5
households for private viewing using a digital tablet device
Children will exclusively use digital textbooks 27% 47% +20
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16. OUCH; Adverting in Context
Total 54%
I’d love to be able to
purchase things directly
from a digital magazine
Tablet 59%
Smartphone 58%
Yet consumers I’d be willing to provide
18% remain
attitudinally
more personal
information if ads could
Total 39%
Regularly look at be targeted to my Tablet 47%
positive toward
advertising while needs/interests
ads if delivered
using their digital
device in an engaging Smartphone 42%
context
I’ve noticed Total 34%
brands/products used in
a show or movie that
increased my interest in
Tablet 44%
the product
Smartphone 38%
15

17. Advertising Effectiveness:
Publishers vs. Marketers
Which is more effective…?
Advertising via Advertising via
Dedicated Apps Web Browsers
OR
Publishers 26% Publishers 17%
Marketers 34% Marketers 16%
Both are Equal
or
Not Sure
Publishers 57%
Marketers 50%
16

18. Advertising Effectiveness:
Advertisers vs. Marketers
Which is more effective…?
Dynamic Static
Advertising Advertising
OR
Publishers 52% Publishers 11%
Marketers 56% Marketers 9%
Both are Equal
or
Not Sure
Publishers 37%
Marketers 35%
17

19. Advertising Effectiveness:
Publishers vs. Marketers
Which is more effective…?
Ads Customized to Ads Same for
Part-Audience All Consumers
OR
Publishers 40% Publishers 60%
Marketers 46% Marketers 54%
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20. Digital Engagement
Publishers • 24% early stages Marketers • 26% early stages
82% • 26% fully engaged 63% • 22% fully engaged
Engaged in
Digital
• 32% have successfully Engaged in • 15% have successfully
Digital
Publishing launched digital initiatives Publishing launched digital initiatives
As more and more content
becomes available on digital
platforms, potential growth of
those devices will continue to
grow as well
Publishers Marketers
18% • 12% early stages 37% • 25% early stages
Not Engaged in • 6% fully engaged Not Engaged in • 12% fully engaged
Digital Digital
Publishing Publishing
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21. Loyalty to paid TV services
Q. Which of the following statements best describes you/your household with regard
to paid TV service (cable, satellite, fiber optic, etc. — service other than over the air
broadcast services)?
Trailing Leading
Millennials Millennials Xers Boomers Matures
Among total U.S. consumers Total % % % % %
I have paid TV service (cable, satellite, fiber
optic, etc.) and have no plans to cancel or
change my paid TV service within the next 66 51 51 65 75 79
12 months
I have paid TV service (cable, satellite, fiber
optic, etc.) and am considering changing to
another paid TV service provider within the 12 11 15 13 12 10
next 12 months (NOT cancelling altogether)
I have paid TV service (cable, satellite, fiber
optic, etc.) and am considering canceling
my service within the next 12 months (I am 4 4 4 5 2 3
considering cancelling my service altogether)
I have canceled my paid service (cable,
satellite, fiber optic, etc.) in the last 12
months ( I no longer have any paid TV 2 3 3 3 1 –
service at my home)
I do not have paid TV service (cable,
satellite, fiber optic, etc.) and have not had 15 31 27 14 9 7
paid TV service within the last 12 months
20

22. Reasons for changing or cancelling –
By generation
Q. Which of the following statements best describes your reasons for changing and/or
canceling and/or not having paid TV service?
Among U.S. consumers who are
considering changing or cancelling
paid TV service, have cancelled in the Trailing Leading
last 12 months, or had no service in Millennials Millennials Xers Boomers Matures
the last 12 months Total % % % % %
Although I can afford paid TV service, I am
not satisfied with the value and pricing of 41 13 33 46 53 *
paid TV services
I am not satisfied with the programming
14 18 6 14 14 *
availability from paid TV services
I am not satisfied with the user experience
and user interfaces that come with paid 4 4 5 3 5 *
TV services
I am not satisfied with the customer service
4 5 6 4 2 *
of paid TV services
I am able to get TV content I want or need
through Internet/Streaming sources
19 27 32 16 10 *
I am not presently interested in
TV content
19 32 18 17 16 *
* Base too small to analyze
21

23. Reasons for Considering Canceling
Q. Which of the following statements best describes your reasons for changing
and/or canceling and/or not having paid TV service?
"I have paid TV service (cable, satellite, fiber optic, etc.) and am considering
canceling my service within the next 12 months"
Total - 2012
Multi-
Device
Among U.S. consumers who have paid TV service and am
Media
considering cancelingmy service within the next 12 months Total
Consumptio
n Pattern Millennials Xers Boomers Matures
Survey % % % % %
Although I can afford paid TV service, I am not satisfied
with the value and pricing of paid TV services 48 * * * *
I am not satisfied with the programming availability
from paid TV services 21 * * * *
I am not satisfied with the user experience and user
interfaces that come with paid TV services 5 * * * *
I am not satisfied with the customer service of paid
TV services 4 * * * *
I am able to get TV content I want or need through
Internet / Streaming sources 15 * * * *
I am not presently interested in TV content 8 * * * *
* Base too small to
analyze
22

24. Reasons for Canceling
Q. Which of the following statements best describes your reasons for changing
and/or canceling and/or not having paid TV service?
"I have canceled my paid service (cable, satellite, fiber optic, etc.) in the last 12
months ( I no longer have any paid TV service at my home)"
Total - 2012
Multi-Device
Among U.S. consumers who have canceledmy paid service
Media Total
in the last 12 months ( I no longer have any paid TV service
Consumption
at my home) Pattern Millennials Xers Boomers Matures
Survey % % % % %
Although I can afford paid TV service, I am not satisfied
with the value and pricing of paid TV services 37 * * * *
I am not satisfied with the programming availability
from paid TV services 13 * * * *
I am not satisfied with the user experience and user
interfaces that come with paid TV services - * * * *
I am not satisfied with the customer service of paid
TV services 9 * * * *
I am able to get TV content I want or need through
Internet / Streaming sources 35 * * * *
I am not presently interested in TV content 6 * * * *
* Base too small to
analyze
23

25. Consumers habits and attitudes towards
digital content are changing rapidly
• The vast majority of consumers view the complete transition to digital formats as inevitable
• Attitudes, expectations and behavior are continuing to shift
% Agree Strongly/Somewhat
In just 2 years, 14%
“If I pay for a print newspaper or 80% more respondents
magazine, I should be able to read it believe that all
digitally for free”
85% publications will
eventually be
“It seems inevitable that all forms of produced almost
publications will eventually be 69% exclusively in a digital
produced almost exclusively in a format
digital format” 83%
“If I could select my own television
content and have it streamed to a
digital device for viewing either on the
59%
device or on my home TV, I would
give up my cable or satellite 64%
subscription”
“When travelling, I typically bring 59%
several different magazines Key
with me to read”
49% 2012
2010
24

26. The “Digital Elite” (owners of a laptop, smartphone and
tablet) has grown from 4% to 20% in the last 2 years
Total Owners
Tablet
20%
Laptop 74%
“Digital
Elite”
Laptop
Smart
phone
Smart
phone 49%
“Digital Elite”
• 73% of all tablet owners
Tablet
• 40% of smartphone owners
27%
• 39% of eReader owners
(meaning they own 4 devices)
25

27. So What Have We Learned
•It’s a Five Screen World and Most People Want Them All
•It’s About Information Management… Personal and Business
•The Industry Haven’t Caught on to How Digital Revolutionizes Information
Seeking, Reading and Multi-tasking
•Advertising Works In Context
•People Engage All Functions
•The Revolution Is Not About Technology; It’s About Cosmopolitanism
•Demand Will Continue To Escalate Through 2012 Without Regard to the
Economy
•Disenchantment With Signal Cost Is Building
26

28. What Might the Future Hold?
•Relational Applications
•Multi-Device Digital Casting
•Displacement of TV
•Proprietary Networks
•Suite Sales
•Application/Utility Agencies
27

29. Order Today!
www.digitalrevolutionresearch.com
28

30. Dr Jim Taylor
Vice Chairman
Harrison Group
For Information About the Digital Report
Please Contact:
www.digitalrevolutionresearch.com
or
Christina Mount
clmount@harrisongroupinc.com
www.HarrisonGroupInc.com
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