INDUSTRY INSIGHTS - Nielsen

October 17-19, 2012 Global Client Council Series

Copyright © 2012 The Nielsen Company. Confidential and proprietary. October 17-19, 2012 Global Client Council Series


Copyright © 2012 The Nielsen Company. Confidential and proprietary.

INDUSTRY INSIGHTS

The Consumer Perspective

Global Client Council October 18, 2012

Jonathan Carson



Consumers shifting away from Live TV Average Daily Time Spent – Total Population (hh:mm)

Source: Nielsen People Meter, NetView, VideoCensus, Mobile Video Report, Mobile Connected Device Report, Gaming 360 Survey

Q2 2011 Q2 2012

Live

TV

4:20 0:03 0:01

0:20

DV

R

Onl

ine

Vide

o

Sm

artp

hone

Vi

deo

0:02 0:12 D

VD

TOTA

L

Vide

o th

roug

h

Gam

e C

onso

les

Live

TV

4:10 0:06 0:01

0:21

DV

R

Onl

ine

Vide

o

Sm

artp

hone

Vi

deo

0:03 0:10

DV

D

Vide

o th

roug

h

Gam

e C

onso

les

-4% +8%

-17% +63%

+55% +27%

Among users, time shifting accounts for 1:48 DAILY

“On Demand” increased 14% - Now ~16% of total video

Total video usage roughly flat year-over-year

Tabl

et V

ideo

0:01

Tabl

et V

ideo

0:03

+69% Modeled from survey data

Modeled from survey data



88%

69%

38%

24%

13%

87%

75%

43% 36%

28%

84% 79%

45% 44%

56%

16%

4%

DVD PC w/Internet Video Game DVR Smartphone Tablet Smart TV

Q3 2008 Q3 2010 Q3 2012

Device adoption fuels on-demand usage

Devices Owned in TV Households

Source: Nielsen Npower for all devices except for Smartphone. Source for Smartphone: Nielsen Mobile Insights

+20% +81% +341%

+63% from Q1 +63%

from Q1



DVR Time-Spent by Other Devices Owned in the Home (among DVR Homes)

May 2012

Tablet Home

Non-Tablet Home

Video Game Home

Non-Video Game Home

PC w/ Internet Home

Non-PC w/

Internet Home

DVR Penetration: 64% 41% 55% 36% 51% 24%

Source: Nielsen NPower

Will consumers migrate away from the DVR to other forms of time-shifting?



Game Consoles could be a big on-demand enabler

Note: Some homes have multiple types/brands of consoles.

Source: Nielsen NPower Q1 2012, Gaming 360 Survey 2011

PS3 users

3.5 HOURS

26% of Console time

is video

Wii users

3 HOURS Xbox 360 users

3 HOURS Average # of hours streamed monthly



Dramatically different behaviors across different age groups

Weekly Time Spent Consuming Video

K 2-11

T 12-17

A 18-24

A 25-34

A 35-49

A 50-64

A 65+

Traditional TV 23:34 21:37 22:32 27:06 32:02 40:02 45:20

DVR 1:55 1:30 1:34 3:04 3:17 3:06 1:59

Internet Video 0:09 0:23 1:21 1:17 0:58 0:41 0:16

Mobile Video N/A 0:22 0:23 0:18 0:09 0:03 <0:01

Source: Nielsen NPower Q2 2012, Video Census Q2 2012, Mobile Video Report Q2 2012

7% Video Usage (13%, if you factor out “non-users”)



Ranked by In-Home Television Behavior Average Daily Minutes

TV Viewership Quintiles # of Persons (000) Online Video Internet+ TV

Quintile 1 TV 47,265 2.6 27.3 604.1

Quintile 2 TV 47,276 2.2 19.2 306.5

Quintile 3 TV 47,262 2.1 15.7 191.9

Quintile 4 TV 47,266 3.2 16.8 111.4

Quintile 5 TV 47,268 4.2 14.1 33.6

Non–TV Viewers 1,372 6.1 18.3 0.0

Lightest TV viewers are heavy for online video

Source: Nielsen Npower Q2 2012, Video Census Q2 2012, Mobile Video Report Q2 2012

30% Video Usage by Light TV and non-TV Viewers



Ranked by In-Home Streaming Behavior Average Daily Minutes

Online Video usage Quintiles

# of Persons (000) Stream Internet+ TV

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

Online video usage highly concentrated

Source: Nielsen Npower Q2 2012, Video Census Q2 2012, Mobile Video Report Q2 2012

83% Online Video Usage by 20% of Users



4:50 4:49 4:47 4:54

5:01

5:20

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Mobile Video Monthly Time Spent

Mobile Video time spent strong, audience growing

15,267

37,048

Q2 2009 Q2 2010 Q2 2011 Q2 2012

Mobile Video Audience (000’s)

+143%

Source: Nielsen Mobile Insights and Nielsen Mobile Video Report

+10%



Co-Viewing prominent on Tablet and Smartphones Frequency of Simultaneous Usage

While Watching TV: Tablets Tablet Owners (Q2 2012 n=3,440)

Frequency of Simultaneous Usage While Watching TV: Smartphones

Smartphone Owners (Q2 2012 n=4,950)

Source: Nielsen Q2 2012 Mobile Connected Device Report



1% 11%

78%

11% Watching more frequently than before Same as before

Watching less frequently than before Do not watch it anymore

Impact of New Tablet Purchase on Television Purchased a Tablet in Past 6 months Q2 2012

Source: Nielsen Connected Device Survey, Q2 2012

24%

26%

27%

30%

35%

44%

45%

49%

52%

61%

Looked up coupons or deals related to a TV ad

Looked up product information for a TV ad

Watched videos unrelated to TV show

Checked sport scores

Looked up information related to the TV program

Social Networking

Shopping

Used an app

Web Browsing

Checked email

Tablet Activities while Watching TV Purchased a Tablet in Past 6 months Q2 2012

Tablets appear to be complimentary to TV





INDUSTRY INSIGHTS

The Consumer Perspective

Global Client Council October 18, 2012

Jonathan Carson

Documents

INDUSTRY INSIGHTS - Nielsen