2. The Era of Untethered TV Begins
How portability and connectivity
are changing the video landscape

3. “Viewers” are Evolving…
Content Aggregation
Connected Viewers Enhanced Subscribers
• Free TV + OTT services • Bundled PTV: triple-play + anywhere, anytime
• Schedules are key: live + catch-up viewing • Personalisation is key: across linear, PVR & VOD
• Broadcasters dominate viewing experience • Operator dominates viewing experience
• Opportunities: direct reach & mass-market scale • Opportunities: innovation & need to add value
Willing
to Pay
Social Discoverers Pick ‘n’ Mixers
• Free online & OTT services • Free, PPV & subs online & OTT services
• Discovery is key: on-demand across services • Flexibility is key: how, where & when they want
• Social media dominates viewing experience • Personal preferences dominate experience
• Opportunities: deep engagement, content brands • Opportunities: new competition, content brands

4. Among All Screens, TV is First Choice
4.69 Q: If you were to watch an episode of your
favorite show, how would you prefer to
watch it? Please rank”.
(converted to 5-point scale)
3.38
3.14
2.12
1.67
TV PC VOD iPad Mobile
Source: Disney Media & Advertising Lab. Five Screen Study

5. But, Size Really Doesn‟t Matter
Programs were equally engaging on any screen
5.91 5.72
5.64 5.73
5.60 Q: We are interested in your
involvement with the show you
were watching during your
session. Please respond to the
following statements by rating
how much you agree or disagree
with the statement.
(Engagement score was an average of
responses to six statements on a 7-point
scale).
TV PC VOD iPad Mobile
Source: Disney Media & Advertising Lab. Five Screen Study

6. On-Demand Devices Drive Growth
ABC Availability Universe by Platform - Millions
+6 mil +3 mil +29 mil +20 mil
86 89
49
43 40
27.6
11
7.4
DVR Online VOD iPads (U.S.)
(Broadband)
Fall 2010 Fall 2011
DVR: Nielsen NPower, Universe Estimates , Nov ’11 and YA DVR HH’s VOD: ABC VOD Sub numbers provided by ABC ASM team, Data for Verizon is not included. Based on Sept/Oct ‘11 Average
Online:Emarketer 2010 US broadband house holds iPad: Apple quarterly earnings report, U.S. iPad Unit Sales as percentage of worldwide. Aggregate thru Dec ‘10 and Dec ’11- estimates

7. Breaking iOS News….
• App-based full episode streams
contribute almost 10% of all
ABC full episode online views -
including ABC.com and Hulu
• ABC’s iPhone/iTouch app,
launched 3/15, already
contributes 10% of all iOS
full-episode streams

8. On-Demand Is In-Demand
11/12 Season Average Episode Deliveries
* Modern Family & Last Man Standing are not available on VOD, however are available on iTunes but STD average episode delivery, telecast airdate 9/19/11-11/23/11 with data through 12/21/11.
ABC does not receive the data.. DWTS not avail on iTunes . Happy Endings is available on iTunes TV: Nielsen NPower, P2+ reach per telecast (1 minute qualifier), Live +7 DVR Playback
however ABC does not receive the data. Online: Combination of episode starts from Rentrak (ABC.com incl. iPad) and video views from Hulu
** Suburgatory is based on 3 episodes, recently added to online and VOD in late Nov. VOD: Data via Rentrak
iTunes: Data based on domestic transactions, 11/12 Season based on all EST (Apple, Amazon, Microsoft).

9. “Established” vs “New”
11/12 Season Average Episode Deliveries
CASTLE
Online 75% 13% 7% 5%
VOD* 65% 15% 11% 8%
iTunes 81% 10% 6% 4%
ONCE UPON A TIME
STD average episode delivery, telecast airdate 9/19/11-11/23/11 with data through 12/21/11.
Online: Combination of episode starts from Rentrak (ABC.com incl. iPad) and video views from Hulu
VOD: Data via Rentrak
iTunes: Data based on domestic transactions, Apple Only.

10. ABC Set-Top Box VOD Growth
Total VOD 43.9M
Orders
+657%
5.8M
Fall '10
Fall '11
*Verizon is excluded due to data delay
Source: Rentrak Season to Date total orders, 2011/12 (9/19-11/23/11), 2010/11 (9/20/-11/24/10)

11. “Catching Up” Drives FEP
I missed I can I’m a fan It’s
episode/wanted watch of the free
to catch up anytime show
Source; Online study, Frank Magid Associates, 1Q 2011, Total sample – age 18-54

12. For More Perspective on Tablets…
• ABC partnered with Horowitz Associates Market
and Multicultural Research on a study of iPad users.
• Wave 1 in April 2011, wave 2 in January 2012.
• Both waves of research consisted of:
– Online Survey of iPad Owners
– Ethnographic Videographies
– Focus Groups
– Online Research Community

13. Key Takeaways
• iPad video viewers are a highly desirable audience
• Not inherently cannibalistic to traditional TV, tablets
allow consumers to take advantage of new locations
and times of day to watch more video.
• Convenience, ease of use, and connected portability
both inside and outside the home creates
expanded viewing “dayparts.”
• Expanded access builds engagement with, and loyalty
to shows and network brands.

14. Dual, Young and Upscale
Watch TV
Total Read/ Watch
Demographics Content on ABC App User
18+ News on iPad
iPad
# of respondents 500 339 128 358
Sex
Male 50% 54% 52% 56%
Female 50% 46% 48% 44%
Children <18 in HH (any) 34% 37% 43% 34%
Age
18-29 21% 26% 32% 20%
30-49 47% 47% 44% 50%
50+ 32% 27% 24% 31%
Average age 42.9 40.9 38.4 43.0
Household income
$50K+ 81% 81% 80% 83%
Mean (Any) $108.43K $105.53K $100.11K $111.08K
Source: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.

15. Micro Mobility: In and Out of Home
iPad used for video
Source: Horowitz Associates, Inc. Market and Multicultural Research

16. Video Viewing is Core Activity
Weekly Data
Browse the Internet 93
Check and send email 86
Play games 74
Go & stay on specific sites 73
Read the news 70 81% among 18-29 YO
Watch TV content 66 74% among recent owners
Use social media sites/apps 65
70% among 3G users
Shop for products/services online 56
Use the calendar 53
Read books 49
For work-related purposes 44
Source: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.

17. Users‟ “App of Choice”
Always/Frequently among those who use apps to watch TV content on iPad
Netflix app 31
ABC app 21
iTunes 20
An app from your TV service
14
provider
Hulu+ app 13
HBO GO app 13
NBC app 12
Source: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.

18. Type of Content Watched
Weekly Data
Short clips* 44
The news 35
Full episodes of TV shows 33
Movies 27
Sports highlights 26
Full sports events 9
Source: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.

19. By Genre
Always/Frequently
National/International news 23
Drama 23
Local news 18
Sitcoms 17
Premium channels original series 12
Children programs for your kids 9
Reality shows 7
Shows only available on the web 6
Daytime talk shows & soap… 5
Source: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.

20. Catching Up is Easy To Do!
Among those who watch full TV shows on their iPad
To catch up on past episodes or seasons of shows 67
Watch shows on your TV set, but on iPad if missed 46
Watch shows not available cable/satellite subscription 31
Browse apps to find something interesting to watch 27
Watch additional content (clips, extras, deleted scenes) 24
Watch different things on iPad than TV 23
Watch shows directly on iPad, rarely on TV 23
Discovered TV show on iPad and now watch regularly 21
Watch shows on your TV set and then again on iPad 16
Stopped watching show on TV to watch on iPad 15
Source: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.

21. The New “Co-Viewing”
Apr ‟11 Jan „12
Among Respondents Who Watch TV Content Wave (n=115) Wave (n=???)
(%) (%)
While traveling (other than commuting) 69 63
While in a room in your home without a TV 58 50
While someone else in your home is
watching something else on your TV set
43 41
When you have downtime at work or school 41 27
Source: Horowitz Associates, Inc. Market and Multicultural Research, 2001 & 2012 iPad user studies

22. The iPad is Indispensable…
Change in Usage among iPad Users who Have Had their iPad for Over 6 Months:
55%
Use functions and apps you never used before 5%
38%
50%
Use your iPad overall 7%
43%
36%
Watch video content on your iPad 11%
52%
Take the iPad with you when you leave your house 31%
17%
during the day 51%
26%
Let other people in your home use your iPad 14%
56%
0% 20% 40% 60%
More Less Same
Source: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.

23. …and Advertising is Preferred
Preference among those who watch full TV shows on their iPad
Paid, No Ads
19%
Don’t know 7%
74% Free, Ad-Supported
Source: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.

24. Verbatim…. “I understand the need
“Truthfully, commercials don’t for commercials.
bother me. I’m a shopper, so “I have no problem with Someone is paying to
commercials just let me know watching TV shows on advertise their
what’s going on in the the iPad. I like the products on the
market.” portability: being able to channel, so I’ll give
watch it virtually commercials a shot,
anywhere.” especially if they’re
short.”
“I like ‘marathoning’
…instead of watching
an hour of my favorite “I got the iPad because
show and waiting a when you live in a house
week in suspense for with five other adults,
the next episode.” sometimes you need your
own TV.” – San Diego
Source: Online Survey of 600 iPad Users; January 2012; Horowitz Associates Inc.

25. The Big Questions…
• How does DAI evolve in on-demand?
• What about multi-screen measurement?
• Ad loads/optimization by screen, content, and location?
• Addressability?
• How is short-form treated relative to long-form?