main street’s growth engine

July, 2015

TV & Audio Trends

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

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 four18- to 34-year-olds each week

18-34 Weekly Reach (% of Population)

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)

TV TrendsThe State of TV Viewing Today

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.

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

4546

47

51

57

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

TV ratings continue to slump,Q2 2015 down 8%

MoffettNathanson: “2Q Media Preview: Redefining Tepid”

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

BroadcastTotal Day

BroadcastPrimetime

CableTotal Day

CablePrimetime

RadioTotal Day

TV vs. Radio Ratings, P18-49

MoffettNathanson; Nielsen — television: C3 Viewership (000s); radio: PPM average quarter hour ratings

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

• 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

Share of Ear

Americans’ Share of Time Spent Listening

to Audio SourcesQ2 2015

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

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

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/FMRADIO

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’stime spent isout of home

PANDORA

Edison Research, “Share of Ear,” Q2 2015

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 listenersalso listen to AM/FM

60% of Spotify listenersalso listen to AM/FM

Edison Research, “Share of Ear,” Q2 2015

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 listenersalso listen to AM/FM

Edison Research, “Share of Ear,” Q2 2015

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