Nielsen reporting on TV vs Radio and impact of Pandora vs traditional radio broadcast

1. main street’s growth engine
July, 2015
TV & Audio Trends

3. Radio is America’s #1 mass reach medium
Nielsen: “The Total Audience Report,” Q1 2015
Radio
TV
Smartphone
93%
87%
70%
PC 54%
Tablet 35%
Adults 18+ Weekly Reach
(% of Population)
Over 90% of adults listen to radio each week

4. Among Millennial 18-34s, radio dominates TV
Nielsen: “The Total Audience Report,” Q1 2015
Radio
Smartphone
TV
93%
80%
76%
PC 49%
Tablet 42%
TV misses one out of four
18- to 34-year-olds each week
18-34 Weekly Reach (% of Population)

5. Even among 35- to 49-year-olds,
radio is the #1 reach medium
Nielsen: “The Total Audience Report,” Q1 2015
Radio
TV
Smartphone
95%
90%
81%
PC 63%
Tablet 49%
35-49 Weekly Reach (% of Population)

6. TV Trends
The State of TV Viewing Today

7. 0
10
20
30
40
50
60
1990 2000 2010 2014
TV Viewers
Total Population
The median age of average primetime
ABC/CBS/NBC telecast viewers is 57
Age
Year
41
33
46
35
51
37
57
38
Media Dynamics, Inc.

8. Broadcast TV primetime viewers are getting much
older; average age of radio listeners is stable
40
42
44
46
48
50
52
54
56
58
2005 2010 2014
Television Radio
Age
Year
Media Dynamics, Inc.; Scarborough USA+, persons 18+, all radio formats combined for
specified survey
Median Age of Radio Listeners vs. Median Age
of Average Primetime ABC/CBS/NBC Viewers
43
45
46
47
51
57

9. The more you make & younger you are,
the less you watch TV
Nielsen NPOWER Total Day Usage
Nielsen: young householder & higher income associated
with lower TV viewing

10. TV ratings continue to slump,
Q2 2015 down 8%
MoffettNathanson: “2Q Media Preview: Redefining Tepid”

11. 4,200 3,600 -14%
7,596 6,368 -16%
11,336 10,706 -6%
19,552 18,232 -7%
8.0 7.9 -1%
TV ratings are down significantly year over
year, while radio ratings are stable.
May-14 May-15 Year over Year
% Change
Broadcast
Total Day
Broadcast
Primetime
Cable
Total Day
Cable
Primetime
Radio
Total Day
TV vs. Radio Ratings, P18-49
MoffettNathanson; Nielsen — television: C3 Viewership (000s); radio: PPM average quarter hour ratings

12. Alliance Bernstein: Television
Investment Conclusion
“We believe the U.S. television industry is entering a period
of prolonged structural decline, caused by a migration of
viewers from ad-supported platforms to non-ad-supported,
or less-ad-supported platforms. We favor companies that
have the least exposure to U.S. advertising, the most
exposure to sports, and advantaged positions
internationally.”
— Todd Juenger, analyst at Sanford Bernstein
12
Alliance Bernstein: U.S. Media Audience Tracker, July 13, 2015

13. • Radio is America’s #1 mass reach media to reach
Americans 18+, 18-34, and 35-49
• TV misses one out of four 18- to 34-year-olds.
• Broadcast TV network primetime viewers are
getting much older, while radio listeners are not.
• TV ratings are down significantly year over year,
while radio ratings are remarkably stable.
Summary: TV & Radio Trends
Nielsen, “The Total Audience Report,” Q1 2015; Scarborough USA+, persons 18+, all radio
formats combined for specific survey; Media Dynamics, Inc.; MoffettNathanson

14. Share of Ear
Americans’ Share of
Time Spent Listening
to Audio Sources
Q2 2015

15. Provides strategic information for
businesses worldwide with a specialty in
media, advertising and entertainment
industries
Conducts the exit polls for all American
elections for ABC, CBS, CNN, FOX, NBC
and the Associated Press
Co-produces The Infinite Dial, a national
study since 1998 that measures
consumer use of the Internet, streaming
video and audio and other new media
technologies
Leading provider of radio research, with
more than 20 years experience
About Edison

16. AM/FM is 8 times bigger than Pandora
Share of audio time spent
AM/FM Radio
52%
Owned Music
15%
Pandora
6%
SiriusXM
6%
TV Music Channels
5%
Other Streaming
Audio
4%
Spotify
3%
Podcasts
2%
Other
1%
Music Videos
on YouTube
6%
Edison Research, “Share of Ear,” Q2 2015

17. Background music at home: majority of Pandora’s
listening occurs at home
Over half of AM/FM listening is out of home,
where consumer purchases occur
AM/FM
RADIO
Car/Truck
38%
Work
15%
Home
46%
Other
1%
Car/Truck
5%
Work
22%
Home
68%
Other
5%
53% of AM/FM
time spent is
out of home
Only 27%
of Pandora’s
time spent is
out of home
PANDORA
Edison Research, “Share of Ear,” Q2 2015

18. While three-quarters of Americans are reached daily
by AM/FM, few listen only to streaming services
% Of All Americans Who Listen Daily
74
71
63
11
4
3
2
0 20 40 60 80 100
Listen to AM/FM
Listen to AM/FM, not Spotify
Listen to AM/FM, not Pandora
Listen to both AM/FM and Pandora
Listen to Pandora, not AM/FM
Listen to both AM/FM and Spotify
Listen to Spotify, not AM/FM
73% of Pandora listeners
also listen to AM/FM
60% of Spotify listeners
also listen to AM/FM
Edison Research, “Share of Ear,” Q2 2015

19. 74
66
8
5
0 20 40 60 80 100
Listen to AM/FM Radio
Listen to AM/FM Radio, but not SiriusXM
Listen to both AM/FM and SiriusXM
Listen to SiriusXM, but not AM/FM Radio
While three-quarters of Americans are reached daily
by AM/FM, few listen only to SiriusXM
% Of All Americans Who Listen Daily
62% of SiriusXM listeners
also listen to AM/FM
Edison Research, “Share of Ear,” Q2 2015

20. Let’s get started…