State of the Media: U.S. Digital Consumer Report Q3-Q4 2011

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STATE OF THE MEDIA: U.S. DIGITAL CONSUMER REPORT Q3-Q4 2011 274 MILLION AMERICANS HAVE INTERNET ACCESS DIGITAL MORE THAN DOUBLE THE NUMBER WITH INTERNET ACCESS IN 2000 REVOLUTION 81 BILLION MINUTES SPENT ON SOCIAL NETWORKS/BLOGS 64% OF MOBILE PHONE TIME IS SPENT ON APPS 42% OF TABLET OWNERS USE THEM DAILY WHILE WATCHING TV THE NUMBER OF LAPTOPS SURPASSES DESKTOPS WITHIN TV HOMES LAST SOCIAL NETWORKS/BLOGS BECOME 2011 2009 TOP ONLINE DESTINATION YEARS Accounted for 9.2% of Internet time. 10 Passed former top category, Email. 2008 Americans averaged 1 hour, 50 minutes watching video online MILLION 2000 11 million Americans watched 132.2 video on their mobile phones AMERICANS HAD INTERNET ACCESS 2007 NEARLY 30 MILLION DVD OVERTAKES 2002 AMERICANS ACCESSED VHS AS PREDOMINANT THE MOBILE WEB HOME VIDEO FORMAT DVD represented 2/3 of all units sold 2006 2005 3.2% OF MOBILE SUBSCRIBERS 6.6 BILLION MINUTES SPENT ON OWNED A SMARTPHONE MEMBER COMMUNITY SITES (NOW KNOWN AS SOCIAL NETWORKS/BLOGS) DEBUT OF BLU-RAY Top Member Community was MSN Spaces Discs offer increased storage capacity, (2 million unique U.S. visitors) high deﬁnition video and audio Source: Nielsen

2 TV VIEWERS AN IN-DEPTH 49% MALE 51% FEMALE 23% 2 - 17 LOOK AT THE U.S. 23% 18 - 34 21% 35 - 49 20% 50 - 64 DIGITAL CONSUMER 14% 65+ 16% HISPANIC 73% WHITE 13% BLACK, AFRICAN-AMERICAN 6% ASIAN OR PACIFIC ISLANDER TABLETS ARE THE ONLY DIGITAL CATEGORY TABLET OWNERS WHERE MALES MAKE MALE 53% ONLINE VIDEO VIEWERS FEMALE 47% UP THE MAJORITY 13 - 17 11% 47% MALE 18 - 34 33% 53% FEMALE 35 - 49 29% 14% 2 - 17 50 - 64 21% 27% 18 - 34 65+ 7% 28% 35 - 49 HISPANIC 15% 22% 50 - 64 WHITE 60% 10% 65+ BLACK, AFRICAN-AMERICAN 11% 12% HISPANIC ASIAN OR PACIFIC ISLANDER 9% 78% WHITE 11% BLACK, AFRICAN-AMERICAN 3% ASIAN OR PACIFIC ISLANDER SMARTPHONE OWNERS MALE 50% SOCIAL NETWORK/BLOG VISITORS FEMALE 50% 13 - 17 6% 46% MALE 18 - 34 39% 54% FEMALE 35 - 49 30% 13% 2 - 17 50 - 64 20% 27% 18 - 34 65+ 6% 28% 35 - 49 HISPANIC 17% 22% 50 - 64 WHITE 61% 9% 65+ BLACK, AFRICAN-AMERICAN 12% 12% HISPANIC ASIAN OR PACIFIC ISLANDER 6% 79% WHITE 10% BLACK, AFRICAN-AMERICAN 3% ASIAN OR PACIFIC ISLANDER Audience Composition % Audience Composition % Read as: Forty-nine percent of U.S. TV viewers are male Read as: Fifty-three percent of U.S. tablet owners are male

Source: Nielsen 3 PLATFORMS FOR DIGITAL ACCESS 274.2 Consumers have more choices than ever for accessing their digital content. MILLION AMERICANS As more devices become increasingly connected, the ability to access the HAVE INTERNET same pictures, videos or music ﬁles across multiple devices has become ACCESS a valuable feature. 165.9

MILLION PEOPLE MILLION 169.6 WATCHED VIDEO 117.6 MOBILE INTERNET ON A COMPUTER 12 VISITORS MILLION VISITORS TO 9 3 SOCIAL NETWORKS/BLOGS 56PM APP USAGE OF U.S. MOBILE AMONG 76.6 SUBSCRIBERS OWN ADULTS PEAKS 44% A SMARTPHONE MILLION 58.6 TV HOMES ARE TIME SPENT USING TABLETS AT HOME HD CAPABLE (67%) MILLION TV 70% (30% OF TIME SPENT ON-THE-GO) HOMES HAVE DIGITAL CABLE (51%) CONTENT ACCESSED DAILY: �% OF TABLET OWNERS� 39% NEWS 47.4 34% SPORTS MILLION 35.9 MILLION TV HOMES HAVE 31% BOOKS TV HOMES 4 OR MORE TV SETS (31%) Source: Nielsen HAVE A DVR (41%) 4 CROSS-PLATFORM MONTHLY TIME SPENT IN HOURS:MINUTES VIDEO ENGAGEMENT ASIAN RACE/ 5:47 With an array of online video content to choose from, consumers increased ETHNICITY their monthly online video time in 3Q 2011 by 7 percent from the same 9:28 period last year. 95:55 WHITE Watching Traditional TV Watching Video on Internet 3:37 AFRICAN- HISPANIC Mobile Subscribers Watching Video on a Mobile Phone 3:52 AMERICAN 142:05 5:30 4:20 6:11 6:29 109:15 116:46 113:46 125:48 4:25 205:56 2:24 7:33 125:55 6:30 N/A 5:25 6:30 4:20 143:22 12-17 2-11 18-24 4:35 25-34 3:19 MONTHLY TIME SPENT IN HOURS:MINUTES— 35-49 178:29 PER USER 2+ OF EACH MEDIUM 3:22 2:53 Q3 11 % Diff YOY 50-64 0.9% 203:50 WATCHING TV IN THE HOME 1 4 6: 4 5 MONTHLY TIME 65+ 1:48 2:35 7.1% SPENT IN WATCHING VIDEO ON INTERNET 4 : 3 1 HOURS:MINUTES 2+ 4:20 MOBILE SUBSCRIBERS WATCHING AGE 4:31 0% 146:45 VIDEO ON A MOBILE PHONE 4 : 2 0

Source: Nielsen 5 DIGITAL DIVERSITY A look at digital across four distinct groups of U.S. consumers in October 2011 The YBF—Social Network with the highest concentration of this demo

Reed Between the Lines (BET)—Top Primetime Cable Program

million total video streams AFRICAN- 812 AMERICAN FEMALES 25-54 Spent 2.4 billion minutes watching video online 35.4 million total video streams Top Gaming App by Total Minutes: Words with Friends (211.8 million minutes) 29% downloaded games on their mobile phone

62% visited Facebook ASIAN FEMALES 12-17 57% accessed their mobile phone’s Web browser 20% accessed their mobile phone’s Web browser Spent 106.9 million minutes watching video online Spent 3.2 billion minutes watching video online

34% more likely than average to visit LinkedIn

NCIS (CBS)—Top Primetime Broadcast Program 13.6 million total video streams Spent 2.2 billion minutes watching video online 164.2 million total video streams

69% own a smartphone more likely than average to visit Myspace.com HISPANIC WHITE 63% MALES 18-34 MALES 55+ 46% download apps on their mobile phone

Source: Nielsen 6 Other Apps 55.8% A BREAKDOWN OF

SHARE OF MOBILE DIGITAL TIME BY DEVICE PHONE TIME BY Text During October 2011, YouTube was the top destination for online video Messaging Camera 13.4% content, accounting for nearly half (45%) of Americans’ total streaming 1.1% FUNCTION time, while Social Networks/Blogs garnered the most Internet time overall. The majority of mobile phone time was consumed by app usage with Social Networking apps accounting for the nearly 6 percent of Music/Video Apps Browser 2.3% mobile time. 11.1%

Email/IM Dialer Social Networking Apps 5.3% 5.4% 5.5%

AOL Media Network CBS VEVO 1.3% Social Networks/Blogs Hulu 3.0% Entertainment 6.9% Websites 1.3% 21.3% Online Games 7.7% E-mail Netﬂix 10.7% 6.5% Videos/Movies SHARE OF ONLINE SHARE OF INTERNET 4.3% VIDEO TIME BY TIME BY Portals 3.8% BRAND CATEGORY YouTube 44.7% Other Other 32.2% Source: Nielsen 56.5% 7 WHAT ARE TABLET AND SMARTPHONE 1 SCREEN, OWNERS DOING WHILE WATCHING TV? 2 SCREENS, 57% CHECKED EMAIL BIG SCREENS, 44% DURING SURFED FOR UNRELATED INFO PROGRAM SMALL SCREENS 44% More and more, consumers are multi-tasking across their VISITED SOCIAL NETWORKING SITE various screens. Fifty-seven percent of smartphone and tablet owners checked email while watching a TV program—their top 59% activity—and 44 percent visited a social networking site. CHECKED EMAIL Advertisers wondering if consumers might miss their message should note that 19 percent of smartphone and tablet owners 44% DURING searched for product information and 16 percent looked up SURFED FOR UNRELATED INFO COMMERCIAL coupons or deals while the television was on. 44% TOP WEBSITES VISITED WHILE WATCHING TV VISITED SOCIAL NETWORKING SITE 45% USED A DOWNLOADED APPLICATION 1. Facebook 6. Craigslist 34% 2. YouTube 7. eBay CHECKED SPORT SCORES 3. Zynga 8. Electronic Arts (EA) Online 29% 4. Google Search 9. MSN/WindowsLive/Bing LOOKED UP INFORMATION RELATED TO THE TV 5. Yahoo! Mail 10. Yahoo! Homepage PROGRAM I WAS WATCHING 19% LOOKED UP PRODUCT INFORMATION FOR AN AD I SAW 16% LOOKED UP COUPONS OR DEALS RELATED TO Source: Nielsen AN ADVERTISEMENT I SAW ON TV 8 METHODS USED TO ACCESS SOCIAL NETWORKING SOCIAL NETWORKING BY AGE BY DEVICE 18-34 35-54 55+ While nearly all social media users (97%) access social networking sites from their computers, NM Incite, a Nielsen McKinsey company, found that females are more likely than men to read social media content from their eReaders and men are more likely than women to access their social content from an Internet-enabled TV or gaming console. Mobile Phone 58.8% 36.3% 12.6%

METHODS USED TO ACCESS SOCIAL NETWORKING eReader 2.9% 1.4% 0.6% BY GENDER iPad 4.5% 2.9% 2.4%

Computer 95.7% 97.0% 97.0%

34.4% Mobile Phone 38.5% Internet-enabled TV 3.9% 1.2% 1.0% 0.8% eReader 2.3% Gaming Console 5.3% 2.9% 0.2% 3.4% iPad 3.1% Handheld Music 2.4% 1.1% n/a 96.4% Computer 96.8% Player 2.9% Internet-enabled TV 1.2% Other 1.0% 0.7% 1.3 3.6% Gaming Console 2.3% 0.8% Handheld Music Player 1.5% 1.1% Other 0.8%

Source: NM Incite 9 SHARE OF SOCIAL MEDIA BUZZ AMONG SELECT TO THINK IT OVER-THE-TOP VIDEO DEVICES (3Q 2011) IS TO BLOG IT READ AS: During 3Q 2011, Apple TV accounted for 29.3 percent of buzz mentions among the select group of over-the-top devices

By the end of 2011, NM Incite, a Nielsen/McKinsey company, tracked over 181 million blogs around the world, up from 36 million in 2006. Three of the top Apple TV Roku ten social networks in the U.S. during October were true blogs (Blogger, WordPress.com, Tumblr), with a combined 80 million unique visitors. Among 29.3% 35.3% the top social networks, Tumblr has shown the strongest growth in visitors, more than doubling its audience from last year.

Emerging Social Network: Pinterest • 4.5 million unique U.S. visitors during Oct 2011 – 37 times its size at the beginning of 2011 • Consumers ages 25-34 – most likely out of all age groups to view pages on Pinterest Boxee • 92 percent of Pinterest’s audience also visited a Mass Merchandiser site 7.6% during Oct 2011 MeeGo NUMBER OF BLOGS TRACKED BY NM INCITE 13.2% Google TV 14.7% Oct -11 173,000,000 TOP 10 U.S. SOCIAL NETWORKS/BLOGS BY UNIQUE AUDIENCE Oct -09 (Oct 2011, Home & Work Computers) 127,035,018 Oct -10 139.1M Facebook 6% Oct -08 148,452,047 46.3M Blogger 4% YOY % Change 78,703,197 26.0M Twitter.com 41%

Oct-06 20.4M WordPress.com 13% 35,771,454 19.3M LinkedIn 63% Oct -07 61,353,334 13.8M Tumblr 128%

UNIQUE VISITORS 13.4M Myspace.com -63% 9.5M Google+ N/A 7.6M Wikia 28% Source: Nielsen and NM Incite 7.0M Squidoo 14% 10 MARKETING TO THE 46% DIGITAL CONSUMER ADS ON TV 36% FEMALE 45% WHEN VIEWING ADS MALE 47% TV PROGRAM PRODUCT ON THEIR DEVICE: 52% PLACEMENTS FEMALE 35% TABLET SMARTPHONE BRANDED MALE 37% OWNERS OWNERS WEBSITES Clicked on ad to view FEMALE 52% ADS SERVED the full ad or product offering MALE 51% IN SEARCH 36% ENGINE RESULTS 24% 11% FEMALE 39% MALE 34% Made a purchase through their computer 23% 20% TRUST IN ADVERTISING ONLINE Searched for more info about the business AMONG ONLINE VIDEO ADS FEMALE 34% 32% 21% 11% CONSUMERS MALE 30% Used or requested a coupon % Who Trust through the ad 13% 7% ADS ON TEXT (SMS) SOCIAL ADS ON NETWORKS MOBILE PHONES AMONG MOBILE FEMALE 36% FEMALE 29% MALE 28% MALE 22% CONNECTED DISPLAY ADS 32% (VIDEO OR BANNER) ONLINE DEVICE OWNERS: BANNER ADS 26% ON MOBILE DEVICES FEMALE 34% FEMALE 31% MALE 24% 33% ﬁnd ads that offer custom information MALE 23% based on their location useful 26% are more likely to look at ads if they have an interesting video 27% 29% 20% enjoy ads that have interactive features Source: Nielsen 11 MOBILE SHOPPING ACTIVITIES IN THE PAST 30 DAYS THE INCREASING �% OF MOBILE SHOPPERS� Comparing prices online while shopping in a store 38% POWER OF MOBILE Browsing products through websites or apps 38% COMMERCE Reading online reviews Mobile is transforming into a powerful commerce tool, facilitating of products 32% consumer transactions and access to real-time information and deals. Searching for/using Twenty-nine percent of smartphone owners use their phone for online coupons 24% shopping-related activities and more than half of mobile users are repeat visitors to daily deal sites. The Groupon app is the 10th most popular app Purchasing products 22% on the iOS platform and ranks 22nd on Android devices. Scanning a barcode for price/product information 22% Android UNIQUE AUDIENCE FOR in millions Using location-based services DAILY DEAL APPS �OCT 2011� iOS to ﬁnd a retail location 18% Placing a bid through an online auction 15% Groupon 4.8 6.1 Purchasing tickets to events 12% Visits per person: 11 Visits per person: 6 Purchasing music or video content 10% Paying for goods or services at point of sale 9% LivingSocial 1.2 2.4 Visits per person: 7 Visits per person: 4

Source: Nielsen 27% of male and 22% of female online consumers would use their mobile phones to make payments in restaurants or shops if they could 12 THE IN-HOME STREAMING OF CONSUMERS STREAMED A MOVIE EXPERIENCE OR TV SHOW FROM THE INTERNET THROUGH A SUBSCRIPTION SERVICE The home entertainment landscape is becoming increasingly complex LIKE NETFLIX OR HULU PLUS as consumers are presented with a greater variety of ways to consume 33% content, especially with the addition of digital streaming and movie downloads via the Internet. AUDIENCE COMPOSITION % FROM HOME COMPUTERS FEMALES ACCOUNT FOR 64% OF TOTAL TIME SPENT 43 WATCHING VIDEO CONTENT ON NETFLIX AND HULU Male 41 57 Female 59 ARE MUCH MORE LIKELY 18 HISPANICS 2 - 17 9 TO WATCH VIDEO ON 40 18 - 34 31 NETFLIX 26 THAN ON HULU 35 - 49 26 13 50 - 64 23 NETFLIX 4 STREAM MORE VIDEOS ON 65+ 11 HULU ASIANS Hispanic 16 THAN ON NETFLIX 11 HULU 76 White 79 Black or African- 10 VIEWERS ARE MORE LIKELY American 11 HULU Asian or Paciﬁc 3 TO HAVE A Islander 3 BACHELOR'S OR POST-GRAD DEGREE THAN NETFLIX VIEWERS 18% downloaded PAID TO DOWNLOAD 14% to rent downloaded MORE THAN A THIRD A MOVIE OR TV SHOW to own OF HULU'S AUDIENCE IS OVER THE AGE OF 50 FROM THE INTERNET �% OF CONSUMERS�

Source: Nielsen

13 Online Consumers Who Watch Video DAILY VIDEO VIEWING On Device Daily Mobile Phone In-Home Video Game System AROUND THE WORLD Nielsen’s survey of more than 25,000 online respondents from 56 countries Handheld Multimedia Device INDEX V. GLOBAL AVERAGE % around the world reveals consumers’ multi-screen video habits. Tablet Device

Index reads as: During 3Q 2011, online consumers in Asia Paciﬁc were 46 percent more likely than the average global consumer to watch video on their mobile phone daily. EUROPE GLOBAL

15% 6% 4% 3% 28% 11% 8% 6% 54 55 50 43

NORTH AMERICA LATIN AMERICA

20% 13% 8% 6% 71 29% 10% 6% 6% 118 100 86 104 91 75 86 MIDDLE EAST, AFRICA, PAKISTAN ASIA PACIFIC

37% 12% 11% 9% 132 41% 15% 9% 9% 109 138 129 146 136 113 129

Source: Nielsen 14 THE GLOBAL SWITZERLAND US 2 Facebook # GOOGLE 2 Facebook # GOOGLE 3 YouTube 1 3 Yahoo! ONLINE 1 4 MSN/WindowsLive/Bing 4 MSN/WindowsLive/Bing 5 Microsoft 5 YouTube 6 Bluewin 6 Microsoft PERSPECTIVE 7 Wikipedia 7 AOL Media Network 8 Apple 8 Wikipedia TOP 10 WEB BRANDS BY UNIQUE 9 Local.ch 9 Apple 10 search.ch 10 Ask Search Network AUDIENCE (Oct 2011, Home & Work Computers ) # GOOGLE 1 YOUTUBE is a top ten GERMANY BRAZIL online destination in all 2 Facebook 2 MSN/WindowsLive/Bing of the countries 3 YouTube 3 Facebook 4 eBay 4 UOL JAPAN # GOOGLE 5 Microsoft 5 YouTube 1 6 Amazon 2 Google 6 Microsoft 7 MSN/WindowsLive/Bing 3 FC2 7 Terra YAHOO! 4 YouTube 8 Wikipedia 8 Globo.com # GOOGLE # 9 T-Online 1 5 Rakuten 9 Orkut 1 6 Wikipedia 10 Web.de 10 Yahoo! 7 Microsoft 8 goo FACEBOOK is among the top three sites in every AUSTRALIA 9 Ameba 2 Facebook 10 Amazon country except Japan (the country's top two social networking 3 NineMSN/MSN GOOGLE sites, FC2 and Ameba, are among the top 10 most-visited overall) 4 YouTube # # GOOGLE 1 5 Microsoft 1 6 Yahoo!7 7 Wikipedia SPAIN 8 Apple 2 MSN/WindowsLive/Bing 9 eBay 3 Facebook ITALY # GOOGLE 2 Facebook 1 10 Blogger 4 YouTube 3 YouTube 5 Microsoft 4 MSN/WindowsLive/Bing 6 Blogger 5 Virgilio 7 Yahoo! 6 Libero UK 8 Wikipedia 7 Microsoft FRANCE 9 Elmundo.es 2 Facebook 8 Yahoo! 2 Facebook 10 WordPress.com 3 MSN/WindowsLive/Bing 9 Wikipedia GOOGLE 3 MSN/WindowsLive/Bing 4 Microsoft # 10 Blogger 1 4 BBC 5 YouTube 5 YouTube 6 Orange 6 Yahoo! GOOGLE is the top Web brand 7 Wikipedia 7 Amazon 8 Free 8 eBay in each country except Japan Source: Nielsen 9 PagesJaunes 9 Microsoft 10 Yahoo! 10 Wikipedia 15 6 • Online Video Streams and Total Minutes: VideoCensus (Total), SOURCES Oct 2011 • Social Networking: NetView (Total), Oct 2011 • 2000: NetView (Home & Work), Jan 2000 • TV Programs: NPOWER, Oct 2011, Live+SD. Excludes Breakouts, 2 specials, Sports, programs less than 5 minutes in duration and • 2002: VideoScan, 2002 programs with less than three telecasts • 2005: NetView (Home & Work), Oct 2005 • 2006: Mobile Insights, 3Q 2006 7 • Mobile Phone: Smartphone Analytics, Oct 2011 • 2007: Mobile Insights, Jan 2007 • Online Video: VideoCensus (Total), Oct 2011 • 2008: VideoCensus (Home & Work), Jan 2008 • Internet: NetView (Total), Oct 2011 Mobile Media Marketplace, 3Q 2008 • 2009: NetView (Home & Work), May 2009 8 • Activities while watching TV: Mobile Connected Device Report, “The Switch from Analog to Digital TV,” Nov 2009 3Q 2011 • 2011: NetView (Total), Oct 2011 • Top sites visited while watching TV: NPOWER (Cross-Platform Homes), Oct 2011 Smartphone Analytics, Oct 2011 Mobile Connected Device Report, 3Q 2011 • NM Incite, State of Social Media Survey, April 2011 NPOWER (NPM Sample), Aug 2011 9 • Top U.S. Social Networks/Blogs and Pinterest: NetView • TV Viewers: National UEs and MarketBreaks 2012 10 3 (Home & Work), Oct 2011 • Online Video Viewers: VideoCensus (Total), Oct 2011 • Blog trend: NM Incite, Oct 2006-2011 • Social Network/Blog Visitors: NetView (Total), Oct 2011 • Over-the-Top device buzz: NM Incite, 3Q 2011 • Tablet Owners: Mobile Insights, 3Q 2011 • Smartphone Owners: Mobile Insights, 3Q 2011 11 • Trust in Advertising: Nielsen Global Survey, 3Q 2011 • Among smartphone, tablet and connected mobile device owners: 4 Mobile Mobile Connected Device Report, 3Q 2011 • Mobile Internet Visitors: Mobile Insights, 3Q 2011 • Smartphone Penetration: Mobile Insights, Oct 2011 12 • Mobile Shopping Activities: Mobile Insights, Oct 2011 • Peak App Usage: Smartphone Analytics (Android), Oct 2011 • Daily Deal Apps: Smartphone Analytics, Oct 2011 Internet • Mobile Payments (red circle): Nielsen Global Survey, 3Q 2011 (U.S.) • Internet Access and Social Network/Blog Visitors: NetView (Total), Oct 2011 13 • Netﬂix/Hulu: VideoCensus (Home), Oct 2011 • Video Viewers: VideoCensus (Total), Oct 2011 • Downloading and streaming behaviors: New Media Tracking, Jan 2012 TV • National Media Related UEs, Nov 2011 14 • Nielsen Global Survey, 3Q 2011 5 • Cross-Platform Report 3Q 2011. Click here to download the complete report for more detailed footnotes. 15 • NetView (Home & Work), Oct 2011

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