The Future of Radio

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THE FUTURE OF RADIO

A PRESENTATION TO: Central Canada Broadcast Engineers

Jeff Detweiler

September 2019

ITS BEEN LIKE GOING FROM PLAYING PLAIN OLD CHECKERS . . . The Challenges Competing stations

Satellite radio

. . . TO PLAYING CHESS . . . The Challenges Competing stations

Satellite radio

iPods / MP3 players

Smartphones

MARKETINGITS BEEN. LIKE .AND . TO GOING PROMOTINGPLAYING. . . FROMTO 3PLAYING-D YOURPLAYINGCHESS CHESSRADIO! PLAIN STATION. . .OLD CHECKERS HAS CHANGED . . . The Challenges Competing stations

Satellite radio

iPods / MP3 players

Smartphones

Cloud-based streaming

Internet “radio”

255 MILLION AMERICANS 12+ (92%) LISTENING TO RADIO EACH WEEK*

66% 75% 75%

34% 25% 23%

In-Home Out-of-Home In-Home Out-of-Home In-Home Out-of-Home 94% 95% 92% of Boomers reached weekly by radio of Gen X’ers reached weekly by radio of Millennials reached weekly by radio (Ages 55 – 70) (Ages 35 – 54) (Ages 18 – 34)

27.3 MILLION CANADIANS 12+ (85%) LISTENING TO RADIO EACH WEEK*

76% 55% 71% 45%

29% 24%

In-Home Out-of-Home In-Home Out-of-Home In-Home Out-of-Home 92% 91% 80% of Boomers reached weekly by radio of Gen X’ers reached weekly by radio of Millennials reached weekly by radio (Ages 55 – 70) (Ages 35 – 54) (Ages 18 – 34)

DIFFERENCES IN U.S. AND CANADIAN LISTENING LEVELS LISTENING TO RADIO EACH WEEK*

In the U.S. In the U.S. In the U.S. 94% 95% 92% of Boomers reached weekly by radio of Gen X’ers reached weekly by radio of Millennials reached weekly by radio (Ages 55 – 70) (Ages 35 – 54) (Ages 18 – 34) In Canada In Canada In Canada 92% 91% 80% of Boomers reached weekly by radio of Gen X’ers reached weekly by radio of Millennials reached weekly by radio (Ages 55 - 70) (Ages 35 – 54) (Ages 18 – 34) Difference Difference Difference -2% -4% -12%

NUMERIS CANADA WEEKLY RADIO REACH (%), ADULTS 12+ LISTENING TO RADIO EACH WEEK*

90.7% 90.5% 89.4% 89.5% 88.5% 88.1% 88.3% 86.9% 85.8% 85.1%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

INTERNATIONAL RADIO REACH (%), ADULTS 12+ LISTENING TO RADIO EACH WEEK*

97.2% 95.0% 94.5% 92.0% 92.0% 89.3% 88.7% 85.1%

GfK GfK RAM Wave 2 Survey 3 2016 2018 Nielsen Kansallinen Médiamétrie Numeris Peninsular Surveyed Audio Today Radiotutkimus Panel Radio RAJAR Q4 Fall 2018 Malaysia only EBU 2015 stations only 2018 2018 2016 / 2017 2018 0500-0100 Persons 10+ Persons 12+ Persons 10+ Persons 12+ Persons 9+ Persons 13+ Persons 15+ Persons 12+

Malaysia Austria Australia U.S. Finland France UK Canada

U.S. RADIO – STABLE AUDIENCES; RISING REVENUE

Annual Revenue (in billions US $)

$17.7b $17.8b $17.2b $17.5b $17.6b $16.3b $16.5b $16.7b $20.97b Canadian

Weekly Reach

93.0% 92.1% 91.4% 91.7% 91.1% 92.9% 92.6% 92.3%

0.7% decline in 8 years

2011 2012 2013 2014 2015 2016 2017 2018

UK RADIO – STABLE AUDIENCES; RISING REVENUE

Annual Revenue (in millions UK £)

£713.6m £679.1m $1.15b £645.8m £612.8m Canadian £575.4m £532.5m £552.7m £536.8m

Weekly Reach

89.8% 89.8% 90.9% 89.4% 90.0% 90.1% 89.7% 88.5%

1.5% decline in 8 years

2011 2012 2013 2014 2015 2016 2017 2018

AUSTRALIA RADIO – STABLE AUDIENCES; RISING REVENUE

Annual Revenue (in millions AU $) $909.3m $884.7m $866.3m $820.7m $762.0m Canadian

$692.2m $706.7m $662.4m $677.0m

Weekly Reach

86.0% 85.0% 84.0% 84.0% 83.0% 83.0% 82.0% 82.0% 3.6% decline in 8 years

2011 2012 2013 2014 2015 2016 2017 2018

CANADA RADIO – FALLING AUDIENCES; FALLING REVENUE

Annual Revenue (in billions CA $)

$1.61b $1.62b $1.62b $1.61b $1.60b $1.55b $1.52b $1.51b

Weekly Reach

89.4% 89.5% 88.5% 88.1% 88.3% 86.9% 85.8% 85.1% 4.9% decline in 8 years

2011 2012 2013 2014 2015 2016 2017 2018

Canadian radio weekly reach % has declined almost 6% since 2009

Audience delivery grew slightly (1.5%) due to population growth

Reach declines are greatest among younger demographics

Only adults 45+ show usage levels above 90% weekly reach

Every demographic suffered a decline in reach in the last 10 years

HD Radio offers a way to help stem the decline in audience

Done properly, adding radio channels can increase overall usage

RADIO REMAINS BY FAR

FOCUS ON U.S. AUDIO LISTENING AM / FM RADIO LISTENING & TOTAL STREAMING (ALL DEVICES) For every 1 minute spent with streaming audio, 188.63 Billion Average Weekly 14 minutes Minutes Of Total Use are spent with AM / FM Radio 13.43 Billion

Average Weekly Minutes Of Total Use

Total Streaming (All Devices) AM/FM Radio Listening

FOCUS ON U.S. AUDIO LISTENING AM/FM RADIO LISTENING & STREAMING BY DEVICE 188.63 Billion

For every 1 minute For every 1 minute For every 1 minute spent with spent with spent with computer audio, tablet audio, smartphone audio, 124 minutes 77 minutes 20 minutes are spent with are spent with are spent with AM/FM Radio AM/FM Radio AM/FM Radio 9.47 Billion

1.52 Billion 2.44 Billion

Average Weekly Minutes Of Total Use Computer Audio Tablet Audio Smartphone Audio AM/FM Radio Listening

A brief history lesson to add perspective on radio’s durability . . .

* In 1969, it was estimated 95% of the U.S. population 12+ used radio weekly

** In 2019, it was Eachestimated 92% ofof thethese U.S. population disruptive 12+ used radio weekly In the past 50technologiesIs years, it U.S.any radio’s wonderreach has only was declined that going 3% despite every . . .to The advent ofnewbe portable the audioaudio cassette“radio playerssource (“Walkman”)killer” wants / portable . . MP3. players; The addition of hundreds of new TV channels via cable and satellite;

New audio. . pay . servicesYetto call such50 as satelliteyearsitself radio; “radio”? on, radio is

The stillrise of smartphones used and by Bluetooth virtually connectivity; everyone.

The ability for live streaming from the cloud;

The growth in music apps like Pandora, Spotify, iTunes etc.

OVERALL CONSUMER SATISFACTION WITH THE TECHNOLOGY

Virtually all (98%) HD Radio Technology users surveyed are satisfied with their Completely Satisfied 55% HD Radio Technology experience Among HD Radio Very Satisfied 36% Technology users, 91% of listeners said they are “completely” or 98% are satisfied “very” satisfied

Somewhat Satisfied 7%

55% indicated they are “completely satisfied” with the HD Radio Experience Somewhat 1% Dissatisfied

Those under 40 years old and heavy users (listen to radio >15 hours a week) have the Very Dissatisfied 1% highest satisfaction with HD Radio Technology

This is your station in analog . . .

This is your station in digital . . .

The moral of this story?

With all the media choices now available to the consumer, HD Radio metadata & images can help level the playing field.

ENHANCED

ADS Ad imagery appears on in-vehicle INCREASE displays while the driver hears the ad IMPACT on the radio

Lift in main message recall from enhanced ads with Artist & Advertiser Experience

All audiences Males Females Millennials Generation X Baby Boomers Income Frequent (18-34) (35-54) (55+) $100K+ Shoppers

IN-VEHICLE DISPLAYS LIFT MESSAGE RECALL 8% 6% 9% 12% 3% 9% 9% 7% FOR ADS Lift Lift Lift Lift Lift Lift Lift Lift Improve Main Message Recall A home improvement retailer How a Home Improvement Boosted its message recall retailer lifted message lift by 12% among millennials recall across key demos

What products/brands do you recall hearing in the radio clip you just heard?

LISTENERS Lawn Care Product Vehicle Auto REMEMBER Brand X Brand X Dealer X A 63% boost in 31% 15% MORE brand recall: 25% That’s what this BRANDS advertiser got using an WITH enhanced ad 19%

ENHANCED 11% ADS 63% 127% 1400% Lift Lift Lift 1%

Enhanced Ad Audio-Only Ad

STATIONS. . . BUT YOUARE CREATINGNEED TO TELL NEW, YOUR UNIQUE LISTENERS HD RADIO WHERE PROGRAMMING TO FIND IT! . . .

STATION ORIGINATES & SENDS IDENTICAL CONTENT TO MULTIPLE MARKETS

SEATTLE ORLANDO KNND 107.7 HD2 ENTERCOM CHANNEL Q MARKETS WQMP 101.9 HD2 SACRAMENTO CHICAGO KKDO 94.7 HD2 WBBM 96.3 HD2

HOUSTON BOSTON KKHH 95.7 HD2 WODS 103.3 HD2

SAN FRANCISCO HARTFORD KLLC 97.3 HD2 WZMX 93.7 HD2

LOS ANGELES MIAMI KAMP 97.1 HD2 WPOW 96.5 HD3

PORTLAND NEW YORK KRSK 105.1 HD2 WNYL 92.3 HD2

PALM SPRINGS DENVER NORFOLK WILKES-BARRE KQPS 103.1 FM KALC 105.9 HD2 WNVZ 104.1 HD2 WMQX 101.9 HD2

LAS VEGAS KANSAS CITY WASHINGTON PITTSBURGH KMXB 94.1 HD2 KRBZ 96.5 HD2 WIAD 94.7 HD2 WDSY 107.9 HD3

PHOENIX DALLAS PHILADELPHIA MILWAUKEE KALV 101.5 HD2 KVIL 103.7 HD3 WTDY 96.5 HD3 WXSS 103.7 HD3

SAN DIEGO NEW ORLEANS ATLANTA DETROIT KXSN 98.1 HD3 WEZB 97.1 HD2 WSTR 94.1 HD3 WDZH 98.7 HD3

BRAND ORIGINATES & SENDS MARKET-SPECIFIC CONTENT TO MULTIPLE MARKETS

STATIONS SIMULCASTING THEIR AMS ON HD RADIO MULTICAST CHANNELS

WNEW – FM 102.7 HD3

WCBS-AM 880 WCBS-FM 101.1-HD3

KIKK-AM Sports Radio 650 KKHH-FM 95.7 HD3

FORWARD-LOOKING SPORTS TEAMS ARE MIGRATING TO HD RADIO CHANNELS

DESPITE LACK OF U.S. REGULATORY GUIDANCE, HD RADIO ENABLES A HUGE DIVERSITY OF NEW PROGRAM SERVICES

Legacy rock stations Local foreign-language New services never bringing back 1970’s & communities get radio before cost-effective for 1980’s DJ’s and music outlets for the first time broadcasters to offer • Capitalize on the brand-loyalty • Spanish, Hmong and • Airport information and 24 / 7 traffic built by your legacy brands Vietnamese in Houston and weather reporting channels • Recycle your former audience • Japanese, Vietnamese and • Comedy, religious and First Nations by bringing back their music Korean in Seattle programming • Create a brand extension with • Russian, Spanish, Chinese • High School and University outlets real profit potential and Portuguese in New York become possible at no cost

The creation of additional broadcast channels to serve underserved communities.

Help decrease the current erosion of radio listening levels by adding additional choices.

Further leverages radio’s unique,HowCanadianThis highly can is cost not - weeffectivebroadcasters just say oneabout that?-to-many reach efficiency. area new not technology a profit center . . . Serves as “training wheels”Becauseit’s toalso helpfor broadcastersourabout HD business Radio new fine .services- tune.model . new formatsis on-air. basedfor consumerson putting digital and chipsnew in Existing analog signals remain in place unchanged. HD channels “invisible” to older radios. radios,revenue. . . butnot signing HDfor Radiobroadcasters. radio can stations. be Our revenue comes mainly from The creation of additionalIt’s aa broadcastwin profit- win centerchannels scenario tofor serve for underserved communities. automakers,Canadianall concerned! broadcastersnot broadcasters . . Creates additional data bandwidth availability for traffic and other third-party data services

THE OPPORTUNITY TO MAKE MORE MONEY!

But to maximize your return on investment, you need local station promotion . . .

Over 60.1 million HD Radio-equipped cars on the road in North America + Over 3.8 million consumer HD Radio home and portable receivers = Over 63.9 million HD Radio receivers in U.S., Canada & Mexico HD Radio U.S. auto penetration well over 20% in the top 10 DMAs:

1 New York: 35.5% 6 Washington, DC: 23.5%

2 Los Angeles: 32.4% 7 Houston: 22.2%

3 Chicago: 22.2% 8 San Francisco: 29.2%

4 Philadelphia: 22.9% 9 Boston: 27.8%

5 Dallas: 21.3% 10 Atlanta: 20.7%

HD Radio auto penetration in the New York DMA: 35.5% HD Radio auto penetration in the Miami DMA: 34.2% HD Radio auto penetration in the Los Angeles DMA: 32.4% HD Radio auto penetration in the Detroit DMA: 32.2% HD Radio auto penetration in the West Palm Beach DMA: 32.0% HD Radio auto penetration in the Burlington DMA: 31.6% HD Radio auto penetration in the San Francisco DMA: 29.2% HD Radio auto penetration in the Boston DMA: 27.8% HD Radio auto penetration in the Baltimore DMA: 27.4% HD Radio auto penetration in the Springfield DMA: 26.0%

HD Radio auto penetration in the New York DMA: 35.5% Over 1 in 3 cars HD Radio auto penetration in the Miami DMA: 34.2% Over 1 in 3 cars HD Radio auto penetration in the Los Angeles DMA: 32.4% Almost 1 in 3 cars HD Radio auto penetration in the Detroit DMA: 32.2% Almost 1 in 3 cars HD Radio auto penetration in the West Palm Beach DMA: 32.0% Almost 1 in 3 cars HD Radio auto penetration in the Burlington DMA: 31.6% Almost 1 in 3 cars HD Radio auto penetration in the San Francisco DMA: 29.2% Over 1 in 4 cars HD Radio auto penetration in the Boston DMA: 27.8% Over 1 in 4 cars HD Radio auto penetration in the Baltimore DMA: 27.4% Over 1 in 4 cars HD Radio auto penetration in the Springfield DMA: 26.0% Over 1 in 4 cars

NORTH AMERICA HD RADIO ADOPTION Adopted - Approved

Experimental Approval

U.S. Totals CANADA • Stations On-Air: 2,264 • Total Digital Channels On-Air: 4,457

Mexico Totals USA • Stations On-Air: 109 • Total Digital Channels On-Air: 179 MEXICO

Canada Totals • Stations On-Air: 32 • Total Digital Channels On-Air: 77

U.S. HD RADIO STATISTICS

• HD1 Channels On-Air: 2,264 Stations On-Air Total Channels • HD2 Channels On-Air: 1,557 2,264 On-Air 4,457 • HD3 Channels On-Air: 547 • HD4 Channels On-Air: 89

States Served Market Totals 50 (+ Washington DC, 261 Metro Markets Puerto Rico and Guam)

MEXICO HD RADIO STATISTICS

• HD1 Channels On-Air: 109 Stations On-Air Total Channels • HD2 Channels On-Air: 54 109 On-Air 179 • HD3 Channels On-Air: 13 • HD4 Channels On-Air: 3

Market Totals States Served 34 Metro Markets 21

As of October 2019. © 2019 Xperi Canada HD RADIO NORTH AMERICA ROLLOUT 21 COVERED MARKETS; 109 STATIONS 109 HD1 + 70 HD2-HD3-HD4 # OF POPULATION CITY STATIONS (MILLIONS) = 179 Digital channels Oaxaca 27 2.3 Mexico City 16 21.2 Jalisco 8 4.3 Chihuahua 6 2.1 Baja California 6 2.1 Sonora 6 0.6 Puebla 6 1.5 Nuevo León 5 4.1 Tamaulipas 5 0.4 Aguascalientes 3 1.2 Chiapas 3 0.7 Coahuila 3 1.0 San Luis Potosí 2 0.7 Sinaloa 2 0.7 Michoacán 2 1.1 Baja California Sur 2 0.8 Querétaro 2 1.8 Yucatán 2 1.0 Veracruz 1 1.0 Quintana Roo 1 0.6 Estado de México 1 0.4 TOTAL 109 49.6 Over 41% of Mexican population are within 40% of all new vehicles sold in Mexico this HD Radio signal coverage year will come with HD Radio Technology. HD Radio receivers are available in 22 auto brands, 96 models in Mexico.

CANADA HD RADIO STATISTICS

• HD1 Channels On-Air: 32 Stations On-Air Total Channels • HD2 Channels On-Air: 25 32 On-Air 77 • HD3 Channels On-Air: 14 • HD4 Channels On-Air: 6

Market Totals Provinces Served 14 Metro Markets 4

As of October 2019. © 2019 Xperi Canada HD RADIO NORTH AMERICA ROLLOUT 14 COVERED MARKETS; 32 STATIONS Over half (51.5%) of the Canadian 32 HD1 + 45 HD2-HD3-HD4 = # OF POPULATION population (some 10 million listeners) CITY STATIONS (MILLIONS) are within HD Radio signal coverage 77 Digital channels Toronto, ON 9 2.9 Vancouver, BC 5 0.7 Montreal, QC 3 1.8 Ottawa, ON 3 1.0 Hamilton, ON 2 0.6 Surrey, BC 2 0.5 Ajax, ON 1 0.2 Brantford, ON 1 0.1 Calgary, AB 1 1.3 Kitchener, ON 1 0.2 Longueuil, QC 1 0.2 Markham, ON 1 0.3 Victoria, BC 1 0.1 Woodstock, ON 1 0.1 TOTAL 32 10.0 36% of all new vehicles sold in Canada this year will come with HD Radio Technology.

HD Radio receivers are available in 33 auto brands, 112 models in Canada.

36% OF NEW VEHICLES SOLD IN CANADA THIS YEAR WILL COME WITH HD RADIO TECHNOLOGY! Acura Alfa Romeo Audi Bentley BMW Cadillac Chevrolet Chrysler Dodge Fiat Ford GMC Honda Hyundai Infiniti Jaguar Jeep Kia Lexus Land Rover Lincoln Mazda Mercedes Mini Mitsubishi Nissan Porsche Ram Subaru Tesla Volvo Toyota Volkswagen

HD Radio receivers available in 33 auto brands.

OVER 3 MILLION CARS ON THE ROAD IN CANADA WITH HD RADIO TECHNOLOGY

50%+ of HD Radio-equipped models sell for under $35,000

75%+ of HD Radio-equipped models sell for under $50,000

Currently over 3 million HD Radio-equipped cars in Canada

Expect another 200,000 additional cars in Canada by end of 2019

An HD Radio-equipped car is sold in Canada every 40 seconds

THAT’S 86 CARS/HOUR, OR OVER 2,055 CARS EVERY DAY!

Let’s compare 2 Canadian markets to similar-sized U.S. markets

Toronto’s population essentially identical to Chicago, IL

Vancouver’s population essentially identical to Baltimore, MD

58% of HD Radio-equipped cars were purchased in the last 4 years Average age of a car in the U.S. 11.6 years; in Chicago’s HD Radio auto penetration was 8% in 2015; 22% in 2019 Canada, just 9.6 years That’s a 275% increase in just 4 years

Baltimore’s HD Radio auto penetration was 10% in 2015; 27% in 2019

That’s a 270% increase in just 4 years

Let’s compare 2 Canadian markets to similar-sized U.S. markets

Toronto’s population essentially identical to Chicago, IL

Vancouver’s population essentially identical to Baltimore, MD At the present rate of 58% of HD Radio-equipped cars were purchasedadoption in theperhaps last 4 years 1 car in Average age of a car in 5 in Toronto and 1 in 4 in the U.S. 11.6 years; in Chicago’s HD Radio auto penetration was 8% in 2015; 22% in 2019 Vancouver will have an Canada, just 9.6 years That’s a 275% increase inHD just Radio 4 years receiver within 4 years.

Baltimore’s HD Radio auto penetration was 10% in 2015; 27% in 2019

That’s a 270% increase in just 4 years

Chicago has 48 local HD Radio stations, broadcasting 83 separate HD Radio channels

Adults 12+ in Chicago listening to HD Radio stations weekly (cume rating): 96.4%

Percentage of new cars sold in Chicago in 2019 Y-T-D that came with HD Radio receivers: 45.0%

Average Weekly TSL to all radio stations in Chicago: 8:58 (HH:mm)

Average Weekly TSL to all HD Radio stations in Chicago: 8:07 (HH:mm)

Average In-Car Weekly TSL to Chicago HD Radio stations: 3:34 (HH:mm)

Percent of HD Radio-equipped cars in Chicago: 22.2%

Chicago’s 1.8 million HD Radio-equipped cars mean 5.9 million hours per week of in-car listening to HD Radio stations!

Baltimore has 20 local HD Radio stations, broadcasting 37 separate HD Radio channels

Adults 12+ in Baltimore listening to HD Radio stations weekly (cume rating): 93.6%

Percentage of new cars sold in Baltimore in 2019 Y-T-D that came with HD Radio receivers: 44.7%

Average Weekly TSL to all radio stations in Baltimore: 8:46 (HH:mm)

Average Weekly TSL to all HD Radio stations in Baltimore: 7:25 (HH:mm)

Average In-Car Weekly TSL to Baltimore HD Radio stations: 3:16 (HH:mm)

Percent of HD Radio-equipped cars in Baltimore: 27.4%

Baltimore’s 592,000 HD Radio-equipped cars mean 1.8 million hours per week of in-car listening to HD Radio stations!

RADIO NOW SHARES THE DASH WITH A MYRIAD OF COMPETITORS

ALL MAJOR BRANDS OFFER FACTORY-INSTALLED HD RADIO TECHNOLOGY

298 263 247

212 216 Vehicle Brands (Chevy, Ford etc.) 198 Vehicle Models (Malibu, Focus etc.) 182 HD Radio Technology Standard 166 163 150 154

109 114 109 86 92 76 67 61 41 36 36 37 40 40 28 33 36 16 21

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Y-T-D

NEW CARS DELIVERED ANNUALLY WITH FACTORY-INSTALLED HD RADIO UNITED STATES

52.6% Total percentage 50.9% 48.9%

42.0% 38.8%

2015 2016 2017 2018 2019 Y-T-D

CARS ADDED ANNUALLY WITH HD RADIO (INCLUDES AFTERMARKET) UNITED STATES

9.19 8.8 All numbers in millions 7.64 6.81 6.37

5.25

2.98

2012 2013 2014 2015 2016 2017 2018

RUNNING TOTAL HD RADIO RECEIVERS (INCLUDES HOME AND AFTERMARKET) NORTH AMERICA 3.8 3.8 60.1 55.0 All numbers in millions 3.7

Consumer Electronics 3.5 44.9 Auto OEM & Aftermarket 2.9 35.8 2.6 27.4 2.0 20.1 1.8 13.4 8.2

2012 2013 2014 2015 2016 2017 2018 2019 Y-T-D

CARS ADDED ANNUALLY WITH HD RADIO (INCLUDES AFTERMARKET) NORTH AMERICA

10.05 9.59 All numbers in millions 8.33 7.28 6.75

5.25

2.98

2012 2013 2014 2015 2016 2017 2018

RUNNING TOTAL CARS WITH HD RADIO RECEIVERS (INCLUDES AFTERMARKET) CANADA

2.97 2.63 All numbers in millions

1.94

1.29

0.72 0.33

2014 2015 2016 2017 2018 2019 Y-T-D

BROADCAST & IP = Rich Engagement

BROADCAST & IP = Live Guide

BROADCAST & IP = Rich Engagement

What are the benefits…

Content Integrity Editorial Content - Accuracy Control Protection

• Show producers maintain • No pre-roll audio or • Access to content and creative control replacement metadata programming controlled • Accuracy & intent delivered • No modification to format, and protected to end user content or layout • Broadcaster’s authorize • No 3rd party unilateral • Accurate broadcast to IP use of audio streams content replacement matching

Editorial Control

LOS ANGELES

PARIS

HANOVER

Management Summary Page

Audience Summary - Overview Yesterday: % Reach / [QH] Share Last 7 days: % Reach / [QH] Share

All cars connected yesterday: 984 75 75 Total tuned to B101.1: 263 (26.7% reach) 50 50 [QH] Share [QH] All minutes listened yesterday: 63,960 (4,264 [QH]*) Share [QH] 25 25 B101.1 minutes listened: 21,040 (1,403 [QH]*)

Yesterday listening share: 32.9% 0 0 6 10 15 19 24 6 10 15 19 24 Hourly Hourly * [QH] = Absolute Quarter Hours = % Reach = [QH] Share

Audience Share Yesterday Last 7 Days Listening Spikes

Daypart / Hour-by-Hour % Reach [QH] Share Daypart / Hour-by-Hour % Reach [QH] Share

Yesterday: 32.9% Morning Drive – 06:00 to 10:00 21% 18% Morning Drive – 06:00 to 10:00 22% 20% [QH] Share [QH] Share Last 7 Days: 31.5% Midday – 10:00 to 15:00 15% 12% Midday – 10:00 to 15:00 15% 14%

Afternoon Drive – 15:00 to 19:00 19% 16% Afternoon Drive – 15:00 to 19:00 18% 15% Last 30 Days: 29.2% Evenings – 19:00 to 00:00 11% 19% Evenings – 19:00 to 00:00 10% 15%

Overnights – 00:00 to 06:00 13% 09% Overnights – 00:00 to 06:00 05% 10%

Where radio broadcasters reach millions and billions of “listeners”

“75.4 billion connected IoT devices will be deployed by 2025—equivalent to (10) IoT devices for every person on earth” (Ericsson, 2018)

How will Radio broadcasting play a role in this new ecosystem?

Capacity High connectivity Low latency Greater that 10x throughput (up Interconnection of billions • Faster connections to 1Gbps) of devices • Smaller packet

Achieving the data capacity for 5G will be heavily dependent on RF transmission

5G challenges = radio opportunities

Image Courtesy Altair Hyperworks

Infrastructure challenges Security • small cell implementation and “70% of all IoT devices build-out have security vulnerabilities” (Ericsson, 2018)

Radio is Radio is ubiquitous wireless data • Major market coverage transmission • 97% of population served

Urban/Local Coverage Regional Coverage

Broadcast best Broadcast is Scalable Low service Radio broadcasting serves “1 to many” connection cost Urban/Local Coverageprovides economically applications No infrastructure scalable distribution Regional Coveragechange to reach 1 Current data models for devices and content Same content to all listener require monthly fees for providers “listeners” or Millions of listeners IoT devices

Digital Radio: WiFi: Closed system Open system Controlled content Uncontrolled content No external devices Limited device authentication

Break Security Steering

Crash Concept: Engine Avoid • Utilize HD Radio system and vehicle access to broadcast Drive Cabin HV AC Cruise encrypted file formats to specific vehicle types. Systems in Tr ain Cntl vehicle determine proper methods to upgrade ECU software.

Benefit for OEM: Bluetooth: 4G/LTE: • Secure method to update vehicle software. Open system Controlled system Uncontrolled content Uncontrolled content (data) Device authentication a nd encryption

Map Navigation Customer updates corrections Relationship Management

Broadcast to Infrastructure Control – B2Ic

What is B2Ic? Radio-based data broadcasting system, capable of mass distribution of short messages to infrastructure components • Direct control/command – control street lights (light poles), power grid edge controllers (end-user efficiency) and more • Backhaul – attached to 802.11p devices, as data entry point for V2I/RSU infrastructure and directly to in-vehicle V2I/OBU

Smart Appliances rely on TOU data Companies (e-Radio) developed technology to deliver TOU data Can be used to communicate during power outages

Antenna Utility companies HD Radio Microcontroller transmit/distribute Receiver

this information CAN Transceiver

Benefit for OEM: Vehicle CAN Bus Vehicle Provide data to optimize EV Charging charging cycles. Controller

Courtesy of e-Radio, Inc.

HD Radio has digital quality, no incremental cost as audience grows

Streaming audio distribution costs rise as audience grows

4G and 5G mobile cost consumers in data charges just to listen

Buildout of 5G mobile network 7-10 years away and huge capital outlay

Both 5G and traditional streaming transfer program costs to consumers

Cellular coverage not uniform – get cellphone reception in your driveway?

Huge efficiencies of over-the-air one-to-many, versus one-to-one

HD Radio has digital quality, no incremental cost as audience grows

Streaming audio distribution costs rise as audience grows If radio moves to streaming, 4G and 5G mobile costit consumerssurrenders in datathe opportunitycharges just to listen to participate in the coming Buildout of 5G mobile networkConnected 7-10 years Car away and and huge capital outlay IoT revolution.

Both 5G and traditionalRadio streaming can’t transfer continue program costs to consumers to be dominant as Cellular coverage “Justnot uniform another – get stream”!cellphone reception in your driveway?

Huge efficiencies of over-the-air one-to-many, versus one-to-one

RABC review of CRC compatibility report

TCC subjective field testing at -20, -14 and -10 dBc

Pursue Regulatory Consideration and Approval with CRTC