Americans watch nearly 5 hours of video per day, with 97.2% of that viewing on traditional TV. While traditional TV households are declining, 75% of non-TV homes still own a TV. Consumers are shifting some viewing away from live TV and toward on-demand options. Time spent on devices like game consoles, smartphones, and tablets is fueling growth in on-demand and online video viewing. However, online video usage is highly concentrated among a small percentage of users.

1. Who Is Viewing What
Where And For How
Long?
OMMA Video
October 23, 2012
Dounia Turrill
Nielsen
Global Client Council Series
October 17-19, 2012 Copyright © 2012 The Nielsen Company. Confidential and proprietary.

2. Video continues its rule of US consumer’s attention
The average American watches nearly
5 hours of video each day
97.2% of which is on traditional TV
Viewing on a Traditional TV Other Viewing (On the Internet, On a mobile phone)
Source: Nielsen, The State of The Media: The Cross-Platform Report Qtr. 2, 2012
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

3. A Plethora of Choices
TV continues to be the centerpiece
Traditional TV Households
penetration continues to decline…
However, even
among homes that
are not considered
traditional TV HH’s
75% own a
television K2-11
Game Smart DVD/BluRay Over-
Console TV Player the-Top
TV Household: A home with at least one TV capable of
tuning to at least one channel. For example, television sets
that are not updated for digitally transmitted content would
not count under the current guidelines.
Source: Nielsen, The State of The Media: The Cross-Platform Report Qtr 1, 2012
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

4. Consumers shifting away from Live TV
Average Daily Time Spent – Total Population (hh:mm)
Q2 2011 Q2 2012
0:03 0:02 0:01 0:01 0:06 0:03 0:01 0:03
0:12 0:21 0:10
0:20
4:20 4:10
Tablet Video
Video
Smartphone
Video
Smartphone
Game Consoles
Video through
TOTAL
Game Consoles
Video through
Tablet Video
Online Video
DVD
Online Video
DVD
DVR
DVR
Live TV
Live TV
Modeled from +8% +63% +27%
survey data -4% -17% +55% +69%
Modeled from
survey data
Total video usage roughly flat year-over-year
“On Demand” increased 14% - Now ~16% of total video
Among users, time shifting accounts for 1:48 DAILY
Source: Nielsen People Meter, NetView, VideoCensus, Mobile Video Report, Mobile Connected Device Report, Gaming
360 Survey
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

5. Device adoption fuels on-demand usage
Devices Owned in TV Households
88% 87%
84%
79%
75%
69% +341%
+20% +81% 56%
43% 45% 44%
38% 36%
+63%
from Q1
24%
28% +63%
from Q1
16%
13%
4%
DVD PC w/Internet Video Game DVR Smartphone Tablet Smart TV
Q3 2008 Q3 2010 Q3 2012
Source: Nielsen Npower for all devices except for Smartphone. Source for Smartphone: Nielsen Mobile Insights
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

6. Will consumers migrate away from the DVR to
other forms of time-shifting?
DVR Time-Spent by Other Devices Owned in the Home
(among DVR Homes)
May 2012
1:00 1:04
0:49 0:53 0:48 0:51
Non- Non-PC
Non- Video Video PC w/ w/
Tablet Tablet Game Game Internet Internet
Home Home Home Home Home Home
DVR
Penetration:
64% 41% 55% 36% 51% 24%
Source: Nielsen NPower
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

7. Game Consoles could be a big on-demand enabler
26%
of Console time
is video
PS3 users Wii users Xbox 360 users
3.5 HOURS 3 HOURS 3 HOURS
Average # of hours streamed monthly
Source: Nielsen NPower Q1 2012, Gaming 360 Survey 2011
Note: Some homes have multiple types/brands of consoles.
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

8. Game on: Quick Facts
Source: Nielsen, The State of The Media: The Cross-Platform Report Qtr 1, 2012
7th gen console penetration /consumption figures in this report represent consoles
measured within the Nielsen National People Meter (NPM)Nielsen Company. Confidential and proprietary.
Copyright © 2012 The sample homes

9. Dramatically different behaviors across different
age groups
A Week in the Life- Weekly Time Spent in Hours: Minutes
Source: Nielsen Cross Platform Report 2Q 2012
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

10. Online video usage highly concentrated
Ranked by In-Home Streaming Behavior
Average Daily Minutes
Online Video usage # of Persons
Stream Internet+ TV
Quintiles (000)
Quintile 1 29,041 19.4 59.6 230.1
Quintile 2 29,038 2.7 36.5 260.5
Quintile 3 29,042 0.9 24.6 250.3
Quintile 4 29,045 0.3 17.1 267.7
Quintile 5 29,035 0.0 9.6 265.1
Non-Streamers 92,508 0.0 1.3 238.4
83% Online Video Usage
by 20% of Users
Source: Nielsen Npower Q2 2012, Video Census Q2 2012, Mobile Video Report Q2 2012
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

11. YouTube substantial portion of Online Video usage
Distribution of Time Spent – Online Video Channels
Video Census, June 2012
YouTube
~50%
Online Video 5%
minutes are Netflix
spent on
16%
YouTube Hulu
10%
10%
Top 50 TV
4% 55% Broadcasters
10% Other Top 50
5%
Online Publishers
10% Non-Top 50
Publishers
16%
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

12. Mobile Video time spent strong, audience growing
Mobile Video Mobile Video Audience (000’s)
Monthly Time Spent
+10% 5:20
37,048
5:01
4:50 4:49 4:47 4:54 +143%
15,267
Q1 Q2 Q3 Q4 Q1 Q2 Q2 2009 Q2 2010 Q2 2011 Q2 2012
2011 2011 2011 2011 2012 2012
Source: Nielsen Mobile Insights and Nielsen Mobile Video Report
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

13. Co-Viewing prominent on Tablet and Smartphones
Frequency of Simultaneous Usage Frequency of Simultaneous Usage
While Watching TV: Tablets While Watching TV: Smartphones
Tablet Owners (Q2 2012 n=3,440) Smartphone Owners (Q2 2012 n=4,950)
16%
26%
9%
14% 13%
23%
Source: Nielsen Q2 2012 Mobile Connected Device Report
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

14. Tablets appear to be complimentary to TV
Impact of New Tablet Purchase on Television Tablet Activities while Watching TV
Purchased a Tablet in Past 6 months Q2 2012 Purchased a Tablet in Past 6 months Q2 2012
Checked email 61%
11% Watching more
frequently than Web Browsing 52%
before Used an app 49%
Same as before
Shopping 45%
78% Social Networking 44%
Watching less
Looked up information related
frequently than to the TV program
35%
before Checked sport scores 30%
Do not watch it
Watched videos unrelated
anymore to TV show
27%
11% Looked up product information
for a TV ad
26%
1%
Looked up coupons or deals
related to a TV ad
24%
Source: Nielsen Connected Device Survey, Q2 2012
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

15. Who Is Viewing What
Where And For How
Long?
OMMA Conference
October 23, 2012
Dounia Turrill
Nielsen
Global Client Council Series
October 17-19, 2012 Copyright © 2012 The Nielsen Company. Confidential and proprietary.