Getting Comfortable with Cable

Presented to: BizNet LinkDate: 2/9/06

Agenda

Cox Enterprises

Television: Yesterday…Today…Tomorrow

Local Media Trends

Highlight Top Programming & Sweeps

Our Company

Our Company

For over 100 years, Cox Enterprises has been one of the leading mass media companies with ownership interests in newspaper, radio, television, direct mail and the internet.

Television:

Yesterday… Today… Tomorrow

50 years ago…

There were 3 television networks

50 Years Ago…50 Years Ago…

The top TV

programs

generated 40, 50,

even 60 household

ratings!

61.667.3

43.1

Source: Nielsen Media Research based on Program Station Area basis

1950-51 Texaco Star Theatre on NBC, 1952-53 I Love Lucy on CBS, 1957-58 Gunsmoke on CBS

10 years ago…

4 broadcast networks

22 cable networks

10 years ago…

Top T.V. programs generated 15, 20, & 25 ratings

Today…

7 broadcast networks

75 cable networks

The average U.S. cable household has anaverage of 75 cable networks. -CAB

Today…

Top program ratings are Halfof what they were10 years ago…

Source: Nielsen Media Research National People Meter Data 2002-03 Broadcast TV Season (Sept ’02 – May ’03) Total TVUniverse Season Average includes premier episodes only.

Customers cannot be found

in ONE place,

at ONE time,

watching ONE TV channel

anymore…

Missing Rating Points

Source: Nielsen Media Research – National People Meter Data – Year long average of regularly scheduled shows – premiere episodes only included in average – Mon-Sun 8p – 11p E/P

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6/15/1905 6/20/1905 6/25/1905

<3

3-4

5-9

10+

HH Rating Achieved

Pe

rce

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1993

Audience Valuation Trend of Broadcast Programs in Primetime (1993 - 2003)

The average audience size of a television program rating has

dwindled over time.

Missing Rating Points

1998 2003

Even the top of the top programs fail to attain ratings that compare to

similar shows in the span of just 20 years…

60.2

45.5

29.8

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20

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80

M*A*S*H - 2/28/83 Cheers - 5/20/93 Friends - 5/13/04

Comparison of

HH Ratings for

“Finales” of

Popular

Television

Shows

(1983 - 2004)

Source: Nielsen National People Meter Data – Total TV Universe – Households Ratings

MASH HH rating from the “2000 Report on Television” from Nielsen Media Research

Missing Rating Points

$9.1 $10.4$11.6

$12.9$14.3

$15.8$17.3

$18.8

$20.5

$-

$5.0

$10.0

$15.0

$20.0

$25.0

2002 2003 2004 2005 2006 2007 2008 2009 2010

Networks forecast even greater investments in original programmingto grow their audience share.

$ = Billions

Ground- breaking, award winning, and entertaining television

Source 2003 Kagan World MediaA Media Central/PR

“Broadcasters will probably never win another sweep.”

“(This marks) the end of an era.”

-Dr. Jack Wakshlag TBS/TNT Chief Research Officer Turner’s Annual Research Presentation for the Press 12/08/04

The End of an Era (November 2004)

Households Top Rated Programs (November 2005)

Program Network Rating

Saturday Night College Football ESPN 8.8

NFL Football ESPN 8.3

The O’Reilly Factor Fox News 6.2

Dora the Explorer Nickelodeon 3.0

Law and Order:SVU USA 3.0

WWE Wrestling USA 2.7

Sunday Movie Lifetime 2.5

Seinfeld TBS 2.3

Larry King Live CNN 2.2

Nip Tuck FX 2.2

Source: Nielsen, Mobile-Pensacola (Ft. Walton Beach DMA). Nov05 Sweeps, C-DMA Universe, HH, M-Su 6a-12m

Early Morning5am-9am

November 2005- Top Networks Among Households

Day9am-4pm

Early Fringe4pm-7pm

Prime7pm-11pm

Late Fringe 11pm-1am

Source: Nielsen Research; Mobile-Pensacola (Ft. Walton Beach), C-DMA Nov04 Sweep, HH

Media Trends

120,146

100,059 97,51792,655 91,332

45,253

35,421 34,53430,782 30,149 28,614

20,462

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

TWC TBS TNT Discovery FOX News 102.7WXBM

97.5WABB

92.9 WBLX 101.5WTKX

107.3WYCL

1370WCOA AM

100.7WJLQ

Radio Overview

Escambia County Cable Networks reach more people than the Gulf Coast’s top radio stations…

102.7 Country

93 BLX TK 101 My 107

WABB 97 FM

Source: Scarborough Research, Mobile-Pensacola Feb 04-Jan 05, DMA Survey Area, Adults 18+ Target Definition: Escambia County Residents.

WCOA Q100

Competitive Comparison

Let’s see how the same message blossoms from the visual newspaper ad…. to the captivating sight, sound, motion, color, and emotion of a television commercial!

78%

67%

64%

62%64%

55%

50%

40%

50%

60%

70%

80%

1970 1980 1985 1990 1995 2000 2003

Competitive Profile Newspaper Readership in U.S

Source: Simmons Research – National Data – 1970 – 2003, NAA

Daily Newspaper Readership 1970 – 2003(% of Adult 18+ population)

Since 1970, almost 30% of the adult population in the U.S. stopped reading the daily

newspaper.

Ad exposure is not the same thing as total readership.

Competitive Comparison

Which Provided More Information?Which Provided More Information?

Let’s see how the same message blossoms from the auditory radio spot…. to the captivating sight, sound, motion, color, and emotion of a television commercial!

Which Provided The Best Directions?Which Provided The Best Directions?

Which Best Showcased The Atmosphere?Which Best Showcased The Atmosphere?

Which Made You Hungry?Which Made You Hungry?

Reach Your Customers

Cox Media offers a variety of programs that generate

reach across networks, demographic appeal & interests.Network Program Sweep / Year HH Rating*

ESPN College Football November 2004 15.9

Fox News Hannity and Colmes November 2004 7.9

Lifetime Primetime Movie November 2004 4.6

FOX News Fox and Friends November 2004 5.3

FOX News Special Report February 2005 4.1

Sci Fi Stargate SG-1 February 2005 4.8

Spike CSI February 2005 3.3

TBS Braves Baseball May 2005 4.1

Spike WWE May 2005 2.7

USA Monk July 2005 4.0

TBS Everybody Loves Raymond July 2005 2.7

USA The Dead Zone July 2005 3.6

Source: Nielsen Research; Mobile-Pensacola (Ft. Walton Beach) C-DMA, HH, Nov04, Feb05, May05, Jul05 Sweeps

DMA Household & WEAR – ABC Local News Viewing

COUNTY & STATECOUNTY & STATE 5pm News Viewing5pm News Viewing 6pm News Viewing6pm News Viewing 10pm News Viewing10pm News Viewing

• Mobile County, AL 628 573 1,597• Baldwin County, AL 803 852 1,361 • Clarke County, AL 57 103 55 • Monroe County, AL 36 74 13 • Escambia County, AL 480 422 429

• Escambia County, FL 25,247 24,179 19,997• Santa Rosa County, FL 6,947 7,532 7,297• Okaloosa County, FL 8,677 8,051 6,993

Escambia County Florida is the signal station origin for WEAR – ABC.

Notice how local news viewership drops off the farther away you get

geographically from Escambia County Florida.

Local news isn’t too local for Households in alternate counties!

Source: 2005 County Coverage Study NHI Local. Mobile, AL – Pensacola (Ft. Walton Beach) FL DMA.

The Age of Acquisition

8.00%13.70% 15.30% 12.90%

22.40%

0.0%

10.0%

20.0%

30.0%

20-24 25-34 35-44 45-54 55+

AGEGENDER

Male 49.7%

Female 50.3%

EMPLOYMENT

Employed 51.7%

Unemployed 3.7%

Service 17.9%

Management Related 30.0%

Sales and Office 28.4%

RACE

Caucasian 72.4%

African American 21.4%

Hispanic 2.7%

Asian 2.9%

HOUSEHOLD INCOME

15.2%

18.1%14.5%

17.8%

34.5%

0.0%5.0%

10.0%15.0%20.0%25.0%30.0%35.0%40.0%

<$25k $25-$34k

$35-$49k

$50-$74k

$75k+

View ed, 87.4%

Did Not View , 12.6%

WEEKLY CABLE VIEWING

MARITAL STATUS

Married 50.0%

Single 27.4%

Divorced 12.6%

Widowed 7.1%

EDUCATION

High school or more 87.7%

Some college or more 52.8%

College degree or more 19.9%

Ow n 64.8%

Rent 31.1%

HOME OWNERSHIP

MONTHLY BUYING BEHAVIORS

Restaurant dining 85.5%

Clothing store shopping 84.2%

Household took domestic vacation (yr) 75.6%

Household owns a home computer 68.7%

Home improvements done past year 65.5%

Shoe store shopping 67.9%

Household accesses the internet 64.6%

Any mall shopping 84.9%

Source: Scarborough, Mobile-Pensacola Aug 04-Jul 05. Adult 18+, Escambia County Residents. US Census 2000

2006 Total Coverage Area

Cox Communications Property, Escambia County75,331 HH

Zip Codes: 32501/02/03/04/05/06/07/14/26/33/34 I-10 North Pensacola Zone: 22,880 Households I-10 South Pensacola Zone: 52,451 Households

Cox Communications Property, Okaloosa/Walton77,385 HH

Zip Codes: 32439/32536/39/40/41/50/59/45/78/44/42/47/48/69/79 Fort Walton Beach Zone: 33,715 Households(including Cinco Bayou, Hurlburt AFB, Shalimar,Eglin AFB & Mary Esther) Destin Zone: 21,267 Households (including the community of Sandestin) Niceville Zone: 12,004, Households (including Freeport) Crestview Zone: 10,399 Households

Bright House Property, Escambia County5,976 HH

Zip Code: 32533 Cantonment Zone: Cantonment and portionsof Century, Flomaton, Jay, and Molino

Total Subscribers: 158,692

Eglin AFB

Destin

Ft. Walton BeachFreeportNiceville

Escambia County

Cantonment

Santa Rosa County

JayCentury

Pensacola North

Pensacola South

Okaloosa County Walton

CountyCrestview

Areas in GREEN are Cox Media Zones

Escambia CountyPensacola/Cantonment

Current Households: 81,307Cable Penetration: 84%

Coverage Area

22,880 HH52,451 HH

5,976 HH

North PensacolaSouth PensacolaCantonment

Demographics/Viewership

Median Age:

35.4Age 25-54:

41.9%Married:

50%Avg. HH Size:

2.45Female Hse Holder:

15.1%HH w/ kids <18:

33.8%Own Home:

67.3%

Employed: 51.7%Unemployed: 3.7%Management 30.0%Armed Forces: 4.6%Family HH: 66.8%College Degree+: 20.9%Median HHI: $35,234

Source: 2000 U.S. Census.

NetworksA&EAMCAnimal PlanetBETBravoCartoonCMTCNBCCNNComedyDiscoveryDiscovery HealthE!ESPNESPN2FamilyFood

Fox NewsFox SportsFXGolfHeadline NewsHGTVHistoryLifetimeMSNBCMTVNickelodeonOLNOxygenSci FiSpeedSpikeTBSTLC

TNTTravelTV LandUSAVH 1Weather

DigitalBiographyCourtDIYESPN ClassicESPN NewsHistory IntlFine LivingSoapToon Disney

SUBSCRIBER NUMBERS ARE ESTIMATES THAT MAY CHANGE WITHOUT NOTICE; COVERAGE MAPS, ZIP CODES, ETC. MAY NOT REFLECT DIGITAL, ANALOG, AREA, CHANNEL OR OTHER CARRIAGE LIMITATIONS FOR YOUR AD. CONTACT COX MEDIA FOR DETAILS.

CantonmentCantonment

PensacolaPensacolaPerdidoPerdido

80,874 Households

Zip CodesPensacola South32501-Downtown32502-Downtown 32503-East Hill32504-Cordova32505-Central 32506-W. Pensacola32507-NavyBlvd/ Perdido32526-Saufley

Pensacola North32514-University32534-Pine Forest

Cantonment32533- Cantonment32577- Molino32526- Beulah32535- Century32565- Jay36441- Flomaton

What Makes Our Market Unique?

The Pensacola market has the highest cable penetration compared to neighboring counties.

83% of the television households in Escambia County have Cable Television.

Escambia County is part of the Mobile-Pensacola (Fort Walton Beach) DMA and is DMA rank # 62.

The Mobile/Pensacola (Fort Walton Beach) DMA is a hyphenated market with a territory that includes 10 counties spanning 3 states: Florida, Alabama, and Mississippi.

There are six broadcast network affiliates (one major that originates from Escambia County). Satellite Penetration in Escambia County (10.1%) is the lowest among neighboring counties and lower than the national average.

Source: Nielsen, Mobile-Pensacola (Ft. Walton Beach) DMA VIP November 2005

Why Advertise in Escambia County?

ESCAMBIA COUNTY HAS THE MONEY

RETAIL STORE GROUP RETAIL SALES

Total Retail Sales $ 3,858,144,000Food & Beverage Stores $ 296,908,000Food Service & Drinking Establishments $ 376,615,000General Merchandise $ 753,215,000Furniture/Home Furnishings, Electronics & Appliances $ 191,392,000Motor Vehicles & Parts Dealers $ 945,350,000

Escambia County stores generated more revenue in retail sales than neighboring counties: Santa Rosa County, FL- $1,166,931,000; Escambia County, AL- $436,583,000; and Baldwin County, AL- $2,531,483,000.

Source: 2005 Survey of Buying Power SMM. AGSDemographic Data- 2005 Estimates/Market Smart Analyzer

Other Industries(2005 Estimated Consumer Expenditures)

Health Care $350,606,264Legal & Accounting $10,507,914

Maintaining an Advertising Presence

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AdvertisingEnd of Advertising

No Advertising

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Week Number

Maintaining a consistent message and keeping a continual presence on cable television will result in a higher audience recall of your message.

Stop your advertising on cable television, and people quickly forget your message!

Source H.A. Zielske, “The Remembering and Forgetting

of Advertising” Journal of Marketing, Volume 23, No. 3, Pages 239-243

Top 10 Non- News Cable Networks in Traditional Broadcast News Dayparts

M-F 5A-9A

M-F 5P-6:30P

M-F 9P-10:30P

Free to Watch what they Want to Watch at 6A, 5P, 6P and 10P…

Source: Nielsen Research. Mobile-Pensacola (Ft. Walton Beach) Nov04 C-DMA

Reach a broader audience by supplementing, not duplicating your local broadcast buys, and

watch cable programmingdramatically improve your consumer reach.

Client Products and ServicesCox Media offers effective advertising for businesses throughout our community and across

the country. Our Account Executives have access to various research tools empowering them to make qualified advertising recommendations to our clients. Some of these recommendations include which networks to buy, time periods to select, and geographic areas to target.

30 Minute ProgramsCox Media offers our own local origination channel that promotes your products or services.

Co-Op AdvertisingUtilize your co-op dollars for a 30-second commercial schedule…We’ll find the funds for you.

:30 Second CommercialsTarget your audience with 50+ popular cable networks

Weather Channel CrawlEffective and affordable, place your text message during the local forecast

ProductionOur award winning production team will help bring your ideas to life.

ResearchCox Media research helps you identify and reach valuable households in your market area.

PromotionsCox Media can provide targeted sweepstakes, special events, network sponsorships and more to fit your advertising needs.

Cox Media TeamCox Media offers you a team of professionals in research, promotion, marketing, production, and sales.

Questions?Questions?

Thank you for coming!Thank you for coming!