Cool Off With Premium Video Content:How Viewers are Beating The Heat

During Summer Months

Contents

Summer Video Viewing 4

Reach 5-7

Days tuned-in 8

Summer Streaming 9-11

Summer Binging 12

Time spent by month 13

Put levels by month 14

Viewership by day 15

Timeshifted TV viewing 16-17

Time spent by ethnicity by season 18

Summer’s Biggest Screen 19

Box Office Sales 20

Cinema Reach 21

Composition 22-23

Hot Summer Programming on Second Screen 24

Summer programming slate 26-28

TV content online 29-30

Overview

The summer television doldrums vanished when Ad-Supported TV turned up the

heat on originals in the warm-weather months. Summer is now filled with a wealth

of premium, original television content.

With over 23 hours of television watched a week, summer TV usage remains on par

with the rest of the year. Although streaming usage peaks in the summer, linear TV

remains viewers primary video source drawing over 10 million viewers a night.

An early look at Summer 2017 programming reveals a strong slate of original, buzz

worthy programs. As in past seasons, we expect all this hype to extend to the

second screen with Ad-Supported TV brands dominating top online genres.

Not only are viewers catching up with their favorite TV programs but they are

cooling off in their local movie theater. Movie attendance peaks in the summer as

everyone (especially Millennials) wants to see the next blockbuster on the big

screen.

Summer Video ViewingConsumption Trends

TV Delivers Over 280 Million Viewers in the Summer –

Far More Than Any Other Viewing Platform

88,452

92,816

108,061

117,010

165,502

175,762

203,319

263,836

286,783

Game Console

Multimedia Devices

DVD/Blue-Ray

Video on PC

Video Smartphone

Internet on PC

App/web Smartphone

Radio

TV

Total Day Reach (OOO) Among A2+: 3Q16

Source: Nielsen Comparable Metrics, 3Q16

95.995.6

93.393.8

97.3

98.7

96.8

95.6

94.294.6

97.5

99.0

P 2 - 11 P 12 - 17 P 18 - 24 P 25 - 34 P 35 - 49 P 50 - 99

Total Day Reach % Summer’16 v. Winter’17

Winter Summer

As Temperatures Rise, TV’s Reach Increases

Source: Nielsen Npower; reach%, 6/6-9/11/16 (Summer) & 1/2/17-4/2/17 (Winter)

91.3 92.0

87.4

90.3

95.6

97.9

92.7 93.6

89.8 90.9

95.8

98.2

P 2 - 11 P 12 - 17 P 18 - 24 P 25 - 34 P 35 - 49 P 50 - 99

Primetime Reach% Summer’16 v. Winter’17

Winter Summer

…Especially in Primetime

Source: Nielsen Npower; reach%, 6/6-9/11/16 (Summer) & 1/2/17-4/2/17 (Winter)

Viewers Tuned-In To TV More Often This Past Summer

Source: Nielsen Npower timeperiod; average days tuned;6/16-9/11/16 v YAG

54

45

38

55

65

75

56

48

43

57

67

79

P 2 - 11 P 12 - 17 P 18 - 24 P 25 - 34 P 35 - 49 P 50 - 99

Average Days Tuned In to TV During Summer’16 v. YAG

Summer'15 Summer'16

…and Part of TV’s Summertime Strength Can Be

Attributed to Streaming

61% have more shows/series on

their ‘Summer Streaming List’ than

previous summers

56% say they are MORE excited

about the shows/series they’re

streaming on vacation this summer

than previous summers

85% have some sort of ‘Summer

Streaming List’ with the

shows/series they want to watch

this summer

67% agree with statement “because

I’ve been streaming shows/series,

I’m reading fewer books than

previous summers”

Source: Miner & Co. Studio “Summer Streaming”

Summer Is a Popular Time For Viewers To Catch Up On

Broadcast & Cable Content Through Their SVOD Service

Source: SNL Kagan January 2017. U.S. Netflix subscribers – 1,283; U.S. Hulu subscribers – 421; U.S. Amazon Prime subscribers – 835.

Question: Which following types of video content do you most enjoy viewing from the service. Select only one. (millennials)

Network TV Shows

45%

Original TV Series

25%

Movies16%

No Specific Set / Other

14%

NETFLIX

Network TV Shows

22%

Original TV Series17%Movies

41%

No Specific Set / Other

20%

AMAZON

Network TV Shows

68%

Original TV Series12%

Movies10%

No Specific Set / Other

10%

HULU

“Online Video Content Enjoyed Most” By SVOD Service

*Netflix has approximately 70 series that they consider original programming, as well as more than 50 other titles that include films, documentaries,

specials and stand-up specials. Amazon has not been as aggressive in producing original content but it does have approximately 20 series.

Broadcast & Cable TV shows ‘are the

most enjoyed’ by SVOD watchers

As a Result, Some Networks are Changing The Way They Develop &

Release New Shows & Commercials to Adapt To New TV Viewing Habits

Turner added original, serialized shows

like The Alienist & Good Behavior

Source: fortune.com/3.11.16/How Network TV Figured Out Binge-Watching

Summer Binging Leads To Viewers Craving

Even More TV Content

87% are watching or plan to watch 3 or more episodes of

show/series in one viewing this summer.

Binge-viewers crave MORE TV content…

2X Frequent binge-viewers are MORE likely than infrequent binge-viewers

to let commercials play

43% Of frequent binge-viewers now watch MORE TV because of binge-viewing

4XFrequent binge-viewers are MORE likely than infrequent viewers to say they

will upgrade their cable/satellite/telco subscription in next few years

Source: Miner & Co. Studio “Binge Watching is our new favorite addiction”

Summer Streaming Does Not Effect Linear TV Viewing –

Time Spent Remains On Par With Cooler Months

Source: Nielsen Npower; 4/16-3/17 by month; hours per week.

April ’16 – March ‘17 Time Spent

(Hours/week: Total Day)

24 24 2423

24 2425

2625

2624

23

29

24

23 23 2324

2526

2526

2423

April May June July Aug Sept Oct Nov Dec Jan Feb March

P18-49 P25-54

Viewers Spend an

Average of 23 Hours

a Week with TV in

the Summer

Summer Ratings Remain Strong – Especially

Among Young Adults

Source: Nielsen Npower; Put; 4/16-3/17 by month; total day.

April ’16 – March ‘17 Total Day Put Levels

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

April May June July Aug Sept Oct Nov Dec Jan Feb March

P18-49 P25-54 P18-24

Night After Night, TV Delivers Over 10 Million Viewers

Primetime Viewership (OOO) By Day

Key Days For Retail & Movie advertisers

Source: Nielsen Npower time period Live+7 data; ad-supported cable v. English broadcast= 11 nets impressions; 06/06/2016 - 09/11/2016 v. year ago.

Sun Mon Tues Wed Thurs Fri Sat

P18-49 18,278 20,111 18,976 18,628 16,904 14,707 15,590

P25-54 20,223 21,973 20,859 20,667 18,703 16,492 17,552

There is No Vacation For TV As The Vast Majority of

Viewers Are Watching Their Summer Programming Live

Source: Nielsen Npower; base=DVR HH; 05/31/2016 - 09/06/2016

% Live v. Timeshifted TV Viewing

(Summer’ 16)

82% 82% 84%

18% 18% 16%

P18-49 P25-54 P18-24

Total Day

Live Timeshifted

79% 79% 82%

21% 21% 18%

P18-49 P25-54 P18-24

Primetime

Live Timeshifted

With Slightly More ‘Live’ Viewing Occurring During the

Summer Season

Source: Nielsen Npower; base=DVR HHs; 05/31/2016 - 09/06/2016 v. 01/02/2017 - 04/02/2017

% Live v. Timeshifted TV Viewing: P18-49

(Summer’ 16 v. Winter ‘17)

77%

23%

79%

21%

Live Timeshifted

Primetime

Winter' 17 Summer'16

Summer’s Biggest Screen

Not Only Are Viewers Catching Up With Their

Favorite TV Programming, Blockbuster Movies

Are Driving Consumers To The Theaters

Box Office Sales

$4,058,023,698

$4,451,927,467

Summer 2014 Summer 2016

Source: Box Office Mojo

During the Summer Season Cinema’s Reach Increases

Cinema Unique Reach By DemoAugust 2016 v. February 2016

Source: Nielsen Media Impact, 2/16 vs. 8/16 for cinema unique reach.

A18-34 A18-49 A25-54

Feb’16 24,670 39,325 32,788

Aug’16 26,065 42,152 36,547

YoY % Change +6% +7% +11%

P 2 - 119%

P 12 - 175%

P 18-3450%

P 35-6436%

August 2016 Impressions

During Summer’s Peak Month, Cinema Delivers over 128

Million P2+ Impressions – Of Which 50% Are Millennials

Source: Nielsen Cinema Audience Report, August 2016; out of base of P2-64

…and Millennials Watch a Wide Variety of Movies: Accounting For Nearly Two-

Thirds of “R”, Almost Half of “PG-13” Rated Audience and Over One-Third of “PG”

3.5%

5.8%

48.1%

37.5%

PG-13

P2-11 P12-17

P18-34 P35-64

24.2%

5.3%

36.0%

29.6%

PG

P2-11 P12-17

P18-34 P35-64

4.7%2.7%

59.8%

31.5%

R

P2-11 P12-17

P18-34 P35-64

Source: Nielsen Cinema Audience Report, August 2016; out of base of P2-64

Cinema Audience Comp By Rating

Hot Summer Programming on the Second Screen

A Wealth of Quality, Premium TV Content Is Driving

Viewing Throughout the Year – Including Summer

Source: Miner & Co. Studio “Summer of Peak TV: The Viewers Perspective; Online survey fielded July 1st- July 6th, 2016 among 801 TV viewers

between ages of 18-59.

76% Believe There Are More

Good TV Series Now Than There

Were Before Streaming

86% say Broadcast Networks are “very” or

“somewhat reliable” as sources for finding great

TV shows

87% say Cable Networks are “very” or

“somewhat reliable” as sources for finding great

TV shows

86% say Streaming Services are “very” or

“somewhat reliable” as sources for finding great

TV shows

TV has Made Summer More

Enjoyable…Most Stating “I’m bored

less often” and “my friends and I

always have TV shows to talk

about”

Source:https://editorial.rottentomatoes.com/article/2017-spring-summer-tv-premiere-dates/

Preview of Summer ‘17 Schedule

As of 4/21/17…More to be Announced

Although Official Summer Programming Slates Have

Yet To Be Released, 2017 Summer Is Looking Strong

…and New Summer Programs Are Generating A Lot of Buzz

Source:https://editorial.rottentomatoes.com/article/2017-spring-summer-tv-premiere-dates/

The Breadth of Ad-Supported TV Content is Unprecedented

Cable and Broadcast: Summer 2017

SVOD:

Summer 2017

Source:https://editorial.rottentomatoes.com/article/2017-spring-summer-tv-premiere-dates/

Ad-Supported TV

Content Exceeds

SVOD’s by Far

P2+

Not Wanting to Miss Out On Quality Programming, Viewing

on Mobile Devices Increases During the Summer

Source: VAB analysis of comScore total unduplicated data (mediametrix, multiplatform). Ad-Supported Television Brands represents all measured Ad-Supported Cable nets, MVPDs and

Broadcast Television FOX, CBS, NBC, ABC, iON and CW. Mobile platform= internet on computer, tablet, smartphone.

1,721,533

min

Time Spent With ‘Ad-Supported TV’ On Computer/Mobile Platforms ( Total Minutes)( June ’16 v. Feb’ 16)

P18-49

1,749,217

min

Feb’16 June ’16

1,005,573

min

1,151,033

min

+27,684

min

Absolute Diff

+145,460

min

Absolute Diff

Sports

NBCSN

ESPN

Bleacher Report

CBS Sports

Resignation Media

Cracked

Ebaums World

Comedy Central

NBCU

Xfinity

CBS

A&E

GSN

ABC News

CNN

CBS News

Buzzfeed

FOX News

Hearst

HGTV

Houzz

Hobby Lobby

Internet Brands Home

& Garden

The Weather Channel

Accuweather

Weatherbug

Yahoo Weather

Pelmorex Media Inc.

Weather

GSN

NBCU

ABC

CBS

Xfinity

Bon Appetit

AllRecipes

Food Network

MSN Food & Drink

BlogHer Food

Disney Entertainment

Roblox.com

PBS Kids

Nickelodeon

Sports Comedy TV Entertainment - Black General News

Home Weather TV Entertainment KidsFood

Political News

CNN Politics

Politico

Top 5 Rank by Internet Genre: August 2016

A18-49

MLB

Cartoon Network

Electus Digital

MSNBC

FOX News Politics

Voice of America

SOURCE: VAB ANALYSIS OF MULTI-PLATFORM COMSCORE DATA, AUGUST 2016 (RANKING BASED ON

“TOTAL MINUTES VIEWED”)SOURCE: VAB ANALYSIS OF MULTI-PLATFORM COMSCORE DATA, AUGUST 2016 (RANKING BASED ON “TOTAL MINUTES VIEWED”)

In Fact, TV Brands Dominate The Top Online Genres in the Summer