Will have new cover

For info about the proprietary technology used in comScore products, refer to http://comscore.com/About_comScore/Patents About this report

The 2017 U.S. Cross-Platform Future in Focus leverages several data sources unique to comScore: The report is based primarily on behavioral measurement from comScore Media Metrix® Multi-Platform, which provides unduplicated reporting of digital audiences across desktop computers, smartphones and tablets; comScore Mobile Metrix®, which provides unduplicated reporting of mobile web and app audiences across both smartphones and tablets; and comScore Video Metrix® Multi-Platform, which provides a single, unduplicated measure of digital video consumption across smartphones, tablets, desktops and over-the-top (OTT) devices. The report also includes survey-based mobile data from comScore MobiLens®, search data from comScore qSearch™, online retail spending data from comScore e-Commerce Measurement™, advertising measurement data from comScore validated Campaign Essentials™ (vCE®) and comScore Brand Survey Lift™ (BSL™), as well as cross-platform data from comScore Xmedia™, viewing data from comScore’s suite of TV and video-on-demand measurement services and new connected home measurement via the comScore Total Home Panel™.

Important Definitions: Total Digital: The combination of desktop and mobile. Mobile: The combination of smartphone and tablet. When data is referring specifically to smartphones or tablets, it will be labeled accordingly. Unique visitor: A person who visits an app or digital media property at least once over the course of a month. Pay-TV: Subscription-based television services that are delivered via a traditional cable, telco or satellite service operator. Digital Video Recorder (DVR): An electronic device used to record live television and watch later. Viewing via a DVR is often referred to as time-shifted recorded viewing. Video-on-Demand (VOD): Refers to video content that is made available via the traditional cable, telco or satellite service operators for on-demand viewing, as opposed to the regularly scheduled live TV viewing or time-shifted DVR viewing. Over-the-Top (OTT): Refers to video content that is transmitted via the internet to one’s television set, instead of via the traditional cable, telco or satellite service operators.

For more information about subscribing to comScore services, please contact us at comscore.com/learnmore.

© comScore, Inc. Proprietary. 2 Table of Contents

Multi-Platform 4

Digital Media 9

Mobile 22

Social & Video Platforms 29

TV & Cross-Platform 39

Advertising 52

E-Commerce 58

Box Office 67

Key Takeaways 71

© comScore, Inc. Proprietary. 3 Multi-Platform

© comScore, Inc. Proprietary. 4 Smartphone usage has doubled in the past three years, and since 2014 it’s driven all of the growth in digital media time spent

Growth in Digital Media Time Spent in Minutes (MM) Source: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S., Dec 2013 - Dec 2016

Desktop Smartphone Tablet Total digital media 1,600,000 usage is up 40% since 2013, with 156,199 +26% mobile – particularly 1,400,000 160,767 vs. 2013 197,446 smartphones – 1,200,000 driving those gains. The smartphone 1,000,000 123,661 +99% has continued to 646,324 787,541 878,654 vs. 2013 expand on its role in 800,000 441,693 digital, even in just the last two years,

Total Minutes (MM) Minutes Total 600,000 as desktop and 400,000 tablets have both -8% experienced modest 505,591 551,184 500,173 200,000 463,814 vs. 2013 declines in engagement during 0 this period. Dec-2013 Dec-2014 Dec-2015 Dec-2016

© comScore, Inc. Proprietary. 5 Mobile media usage surpassed the 1 trillion monthly minute milestone in March 2016 and continues to rise

Total Minutes (Billions) Spent on Mobile Source: comScore Mobile Metrix, U.S., Age 18+, Dec 2013 – Dec 2016

1,100 Mobile time spent continues to 1,000 progress upward, hitting a huge 900 milestone in reaching an eye- 800 The average person popping level of one spent trillion minutes of aggregate media 700 2 hrs 51 min per day on mobile consumption per month in 2016. This Total Minutes (Billions) Minutes Total 600 is nearly double what desktop 500 internet usage accounted for at its peak. 400 Dec-2013 Jun-2014 Dec-2014 Jun-2015 Dec-2015 Jun-2016 Dec-2016

© comScore, Inc. Proprietary. 6 Mobile now represents almost 7 in 10 digital media minutes, and smartphone apps alone account for half of all digital time spent

Share of Digital Media Time Spent by Platform Source: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S., Total Audience, Dec 2013 – Dec 2016

75% With desktop +16pts Share of Digital Time Spent on MOBILE 70% 69% engagement faltering in recent 65% years, it has lost share to mobile – 60% 60% which now accounts 55% for 69% of digital 53% +16pts Share of Digital Time Spent on MOBILE APP media time spent. 50% 51% 47% Mobile apps now 45% drive 60% of digital 44% +16pts Share of Digital Time Spent on SMARTPHONE APP time spent, and 40% smartphone apps 35% 35% alone currently account for a 30% 31% -16pts Share of Digital Time Spent on DESKTOP majority of digital media consumption. 25% Dec-2013 Jun-2014 Dec-2014 Jun-2015 Dec-2015 Jun-2016 Dec-2016

© comScore, Inc. Proprietary. 7 Nearly one in eight U.S. internet users are now mobile-only, with 18- 24 year-old women the highest skewing for this behavior

Mobile-Only Share of Digital Audience by Age Segment Source: comScore Media Metrix Multi-Platform, U.S., Age 18+, Dec 2016

Male Female The mobile-only 25% internet user is an 22% emerging group within the digital 20% media ecosystem. 16% Millennials are more 15% 14% likely to rely 12% 12% exclusively on their 11% mobile devices, with 10% the heaviest skews occurring among college-aged adults 5% and females.

0% Total Age 18+ Age 18-24 Age 25-34

© comScore, Inc. Proprietary. 8 Digital Media

© comScore, Inc. Proprietary. 9 continues to widen its market share lead for desktop browser activity, capturing a majority share of all page views in 2016

Share of Desktop Browser Activity Source: comScore Custom Analytics, U.S., Total Audience

+3pts Google Chrome Google Chrome 51% 50% gained three 48% percentage points of the desktop browser 40% market in the 2nd half of 2016, now 30% with more than 50% of all page views. Microsoft’s Edge 20% 20% -3pts Internet Explorer 17% browser also saw gains, eating into 14% -2pts Firefox 12% Share of Desktop Page Views Page Desktop of Share the share of 10% 10% 10% -0pts Safari Microsoft’s Internet 6% 8% +2pts Edge Explorer browser. 0% 2% 2% Jun-2016 +0pts Other Dec-2016

© comScore, Inc. Proprietary. 10 Microsoft’s search engine Bing has grown its desktop search market share over the past year, but the market is for the most part stable

Desktop Explicit Core Search Share Source: comScore qSearch, U.S., Q4 2016

1% 1% The desktop search market has 12% stabilized in recent years with share shifts from year to Google Sites year tending to be Microsoft Sites relatively modest. +1.4 pts vs. year ago Yahoo! Sites Market leader 23% Ask Network Google remained stable, but #2 player AOL, Inc. Microsoft Bing did 64% manage to grow its share by more than one percentage point.

© comScore, Inc. Proprietary. 11 Digital media audiences continue to grow on the back of mobile, which is now 2x that of the average desktop audience

Growth in Top 1000 Digital Media Property Audiences Source: comScore Media Metrix Multi-Platform, U.S., Dec 2013 – Dec 2016

20.0 Over the past three TOTAL DIGITAL 18.0 years, digital media 16.8 audiences of the 16.0 Top 1000 properties 14.0 MOBILE have surged to an 12.7 average 16.8 million 12.0 12.3 visitors per month, 10.0 up 38% in the past three years. All of 8.0 8.1 that growth has 6.3 6.0 been due to mobile, 5.6 DESKTOP which jumped 127% 4.0 in that time, and is

2.0 now 2x that of the

Average # of Unique Visitors by Platform (MM) by Platform Visitors Unique of # Average Top 1000 desktop 0.0 audience.

© comScore, Inc. Proprietary. 12 Digital is delivering audiences at scale, but the number of newly emerging large-scale media properties is flattening

Number of Digital Media Properties Reaching Unique Visitor Thresholds Source: comScore Media Metrix Multi-Platform, U.S., Dec 2016 / Dec 2015 / Dec 2014

20-50 MM 50+ MM While 2015 saw a 250 big jump in the number of digital +2% media properties +20% 200 reaching large 64 65 audiences of 20+ million (+34), 2016 150 53 +5% saw much more +19% modest gains (+8). 100 Are we now nearing a point of audience 142 149 119 maturity for digital 50 Number of Digital Media Properties Media Digital of Number media properties?

0 Dec-2014 Dec-2015 Dec-2016

© comScore, Inc. Proprietary. 13 For the Top 100 properties, incremental mobile audiences extend their desktop audiences by a factor of 2.4x

Median Audience Sizes for the Top 100 Digital Media Properties Source: comScore Media Metrix Multi-Platform, U.S., Dec 2013 - Dec 2016

Mobile audiences 2.2x 2.4x continue to be an 1.7x important 70,000 1.6x contributor to total 56,780 60,000 57,690 digital audience. 50,462 This year mobile 50,000 45,180 helped boost the

40,000 audiences of the 28,382 29,214 Top 100 digital 30,000 25,762 24,053 media properties by

Unique Visitors (000) Visitors Unique 20,000 2.4x vs. desktop alone, a multiple 10,000 that has grown 0 steadily in the past Dec-2013 Dec-2014 Dec-2015 Dec-2016 few years. Total Digital Desktop

© comScore, Inc. Proprietary. 14 Google Sites, and Yahoo Sites remain the top digital media properties and the only ones with 200+ MM visitors

Top Digital Properties: Unique Visitors (MM) by Platform Source: comScore Media Metrix Multi-Platform, U.S., Dec 2016

Desktop Only Multi-Platform Mobile Only The average Top 10 0 50 100 150 200 250 300 digital media property Google Sites 247 MM has 39% of its audience visiting only Facebook 209 MM on mobile and 34% Yahoo Sites 206 MM visiting on both mobile and desktop. Microsoft Sites 190 MM For five of the Top 10, a majority of their Amazon Sites 189 MM digital media Comcast NBCUniversal 164 MM audiences are mobile-only visitors, CBS Interactive 163 MM highlighting the importance of mobile AOL, Inc. 157 MM as a primary Apple Inc. 153 MM touchpoint for many large digital media Time Inc. Network (U.S) 129 MM companies.

© comScore, Inc. Proprietary. 15 There were 21 digital media properties that reached at least 100 million U.S. visitors per month across 2016

Digital Media Properties By Audience Tier Source: comScore Media Metrix Multi-Platform, U.S., Jan 2016 – Dec 2016

300 After the big three, the 2nd tier of digital media properties 250 consists of some of 200-250 MM UVs the most established brands from the early 200 days of the internet 150-200 MM UVs and a couple large 150 TV publishers that have built a huge 100-150 MM UVs following on digital 100 over the years. The 3rd tier consists of a mix of legacy print 50 publishers, TV

Avg. Monthly Unique Visitors (MM) FY for(MM) Visitors Unique Monthly Avg. networks, social

0 media sites and others. Properties with 100-150 MM Properties with 150-200 MM Properties with 200-250 MM Unique Visitors Unique Visitors Unique Visitors

© comScore, Inc. Proprietary. 16 A major digital media trend in 2016 was growth in news consumption as the U.S. presidential election captivated Americans’ attention

Newspapers and Political News Categories: Total Minutes (MM) Source: comScore Media Metrix Multi-Platform, U.S., Nov 2013 - Dec 2016

9,000 The U.S. presidential election was the 8,000 +19% FY 2016 vs. biggest news story of 7,000 FY 2015 the year, and digital Newspaper Sites news sites posted 6,000 General Election strong gains over the Presidential course of its 18- 5,000 Primary month news cycle. Elections 4,000 Interest reached its +122% apex in November, as

3,000 FY 2016 vs. the general election Total Minutes (MM) Minutes Total FY 2015 coverage resulted in 2,000 Political News Sites all-time highs in readership for many 1,000 digital newspapers

0 and political news

destinations.

Jul-2014 Jul-2015 Jul-2016

Apr-2014 Oct-2014 Apr-2015 Apr-2016 Oct-2016

Jan-2014 Jun-2014 Jan-2015 Jun-2015 Jan-2016 Jun-2016

Mar-2014 Mar-2015 Mar-2016

Feb-2014 Feb-2015 Feb-2016

Sep-2014 Dec-2015 Nov-2013 Dec-2013 Aug-2014 Nov-2014 Dec-2014 Aug-2015 Sep-2015 Nov-2015 Aug-2016 Sep-2016 Nov-2016 Dec-2016

May-2014 May-2015 May-2016 Oct-2015*

* Total Minutes for the Newspapers category in October 2015 was recalculated to remove the impact of overstated data for an individual mobile news app that had a substantial impact on topline category time spent. ** Newspapers and Political News are two sub-categories within the broader News/Information category and are not fully inclusive of all news properties. There is also a small amount © comScore, Inc. Proprietary. 17 of duplication between the two sub-categories. Certain leading print and TV news brands saw huge digital audience growth as consumers demanded election coverage

Y/Y Digital Audience Growth of Select Leading Print and TV News Organizations Based on Average Monthly Unique Visitors for Full Year Source: comScore Media Metrix Multi-Platform, U.S., Full Year 2016 / Full Year 2015

FY 2015 FY 2016 The New York Times, 120 Washington Post, +35% CNN and Fox News were among the 100 news organizations +36% +40% that had a huge year 80 in 2016 covering the +20% U.S. Presidential 60 Election. While traffic peaked in October and November – with 40 the NYT and WaPo surpassing 100 MM 20 UVs for the first time

Avg. Monthly Unique Visitors (MM) FY for(MM) Visitors Unique Monthly Avg. in their respective 0 histories – traffic was elevated throughout much of the year.

© comScore, Inc. Proprietary. 18 Facebook and Google own the Top 8 mobile apps and 10 of the Top 20, while is the top app not owned by either company

Top 20 Mobile Apps by Unique Visitors (000) with Y/Y Growth Source: comScore Mobile Metrix, U.S., Age 18+, December 2016 Y/Y % Change Facebook Facebook 155,726 15% Google and Facebook Messenger 136,853 25% Google YouTube 130,548 22% Facebook have Everyone Else Google Search 114,791 40% strong app portfolios Google Maps 101,951 23% that account for a 90,129 36% high percentage of Gmail 89,480 19% the top-ranked Google Play 89,447 9% Snapchat 82,098 114% apps. The two Pandora Radio 79,634 3% companies own the Amazon Mobile 73,321 9% top eight positions Google Calendar 64,685 N/A on the list, while Apple Music 62,647 0% Apple Maps 53,930 4% Snapchat, Pandora 52,971 11% and Amazon are the Google Drive 45,995 9% biggest apps from 43,337 0% outside that mix. 39,493 16% Spotify 37,889 34% The Weather Channel 33,426 -15%

* “Apple Music,” as it appears in comScore’s monthly reporting, is referring to Apple’s native music app, which captures all music activity within that app, including listening via the streaming service, radio service and users’ personally downloaded music libraries.. © comScore, Inc. Proprietary. 19 Many of the fastest growing apps are services that improve existing real-world behaviors, such as hailing cabs and paying cash to

Fast Rising Apps – Unique Visitor Trend % Change Source: comScore Mobile Metrix, U.S., Age 18+, Dec 2014 – Dec 2016 vs. Dec 2014

Apps like Waze, Uber Waze +260% 20 and Lyft are Wish +336% improving the way we get around; Uber +443% makes dating easier; 15 letgo +1,085%* Fitbit lets you to track your personal fitness Bitmoji +5,210%* metrics and Venmo OfferUp +1,213% makes it simple to digitally transfer 10 Tinder +166% money to friends. GroupMe +101% Bitmoji, the fastest

Unique Visitors (MM) Visitors Unique growing app of this Lyft +246% 5 select group, enables Flipp +850% self-expression through the use of Venmo +677% personal cartoon 0 avatars. Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016

* letgo’s percent change figure represents its app audience growth from June 2015 to December 2016. Bitmoji’s percent change figure represents its app audience growth from February 2015 to December 2016. © comScore, Inc. Proprietary. 20 Pokémon GO was a mobile app phenomenon that quickly surged to attract a huge audience but has since come back down to earth

Pokémon GO: Daily Unique Visitor Trend Source: comScore Custom Analytics, U.S., Age 18+, Jul 2016 – Dec 2016

28.5 Million Pokémon GO – a 30 location-based 60% augmented reality game – launched on 25 of Pokémon July 6th, and in just a Go’s users are matter of days it was 20 consistently capturing more than 20 million 18-34 year-old daily users. It peaked 15 Millennials at 28.5 million daily users on July 13th 10 and, though eventually tailing off, Daily Unique Visitors (Millions) Visitors Unique Daily provided an important 5 glimpse into the potential of 0 augmented reality to

engage users.

7/1 7/7 8/4 8/8 9/1 9/5 9/9

7/19 7/11 7/15 7/23 7/27 7/31 8/12 8/16 8/20 8/24 8/28 9/13 9/17 9/21 9/25 9/29 10/3 10/7 11/4 11/8 12/2 12/6

10/19 10/11 10/15 10/23 10/27 10/31 11/12 11/16 11/20 11/24 11/28 12/10 12/14 12/18 12/22 12/26 12/30

© comScore, Inc. Proprietary. 21 Mobile

© comScore, Inc. Proprietary. 22 U.S. smartphone penetration eclipsed 80% in 2016, but growth is slowing as market adoption concludes its ‘late majority’ stage

Smartphone Penetration of Mobile Phone Market Source: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2005 - 3 Mo. Avg. Ending Dec 2016

90% Since the end of 79% 81% 2005, smartphone 80% 75% penetration of the mobile phone market 70% 65% has grown from next to nothing to 81%. 60% Just five years ago 54% that penetration 50% figure was roughly 42% half of what it is today 40% at 42%. The remaining 27% uncaptured market is 30% mostly technology 17% laggards who don’t 20% necessarily have a 11% high likelihood of 10% 6% 2% 3% ever making the switch. 0% Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

© comScore, Inc. Proprietary. 23 Smartphone penetration among Millennials is already near its saturation point, while the oldest users still have room to grow

Smartphone Penetration by Age Segment Source: comScore MobiLens, U.S., Age 18+, 3 Mo. Avg. Ending Dec 2016 / Dec 2015

Dec-2015 Dec-2016 Millennial 100% 94% 94% 94% smartphone 93% penetration has been 90% 84% 86% relatively flat since 79% 81% 80% 2015, which is expected considering 70% it is already solidly 61% above 90%. The 55- 60% 58% and-older segment 50% has the most room for growth and 40% experienced the 30% biggest bump with a 3-point increase in 20% 2016. Still, it will likely 10% be a slow climb to reach 80 or 90% 0% penetration. Total: Age 18+ Age 18-24 Age 25-34 Age 35-54 Age 55+

© comScore, Inc. Proprietary. 24 The U.S. market share for smartphone operating systems has stabilized in recent years with Android #1 and iOS a strong #2

Smartphone Platform Market Share: Long-Term Trend Source: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2005 - 3 Mo. Avg. Ending Dec 2016

100% Smartphone OS 90% market share has 80% shifted immensely 43% 43% from its early years, 36% 42% 42% 70% but has remained 60% 30% HP/Palm relatively stable 50% Symbian since 2013. It now BlackBerry appears that the 40% 25% most popular device Microsoft 30% for accessing the 53% 53% 54% 47% 51% 53% iOS internet will be 20% 25% 29% Android dominated by two 10% 17% major players’ 9% 0% 1% 5% software platforms for the foreseeable future.

© comScore, Inc. Proprietary. 25 But Apple remains the largest smartphone OEM at 43%, with the remaining share split about evenly between Samsung and all others

Smartphone OEM Market Share: 3-Year Trend Source: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2013 - 3 Mo. Avg. Ending Dec 2016 50%

45% Apple In the past three 43% 42% years, the U.S. 40% market share for 35% smartphone original Samsung 32% equipment 30% 29% manufacturers 26% 28% 25% All Others (OEMs) has seen minor growth from 20% Apple and Samsung 15% at the expense of

10% most others. Like the smartphone 5% software market, the 0% OEM market is maturing in the U.S.

* The months of April and May 2015 were calculated using their single month of data vs. the 3-month

average, due to an improved sample weighting methodology introduced in April. © comScore, Inc. Proprietary. 26 iPhone owners were rapidly upgrading to the 6 models, until September when the latest 7 models were introduced

Trend of U.S. Apple iPhone Users (MM) by Device Family Source: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2014 - 3 Mo. Avg. Ending Dec 2016

90 Apple’s iPhone 3, 4, 5.1 80 and 5 models 7.1 9.1 13.6 7.5 6.4 11.6 14.4 collectively lost 3.7 15.8 3.0 70 nearly 42 million 7.9 14.9 20.6 15.0 60 24.0 users since 2014, Apple iPhone 7 Plus 30.5 but more than made 36.0 50 37.6 Apple iPhone 7 that up by gaining 39.3 37.2 Apple iPhone SE 37 million new 40 39.0 33.4 Apple iPhone 6/6S Plus iPhone 6 and 6 Plus Apple iPhone Users (MM) Users iPhone Apple 38.7 30 37.0 Apple iPhone 6/6S users, and another 30.8 16 million users of 27.2 Apple iPhone 5/5S/5C 20 24.9 its latest SE, 7 and 22.1 Apple iPhone 3G/4/4S 17.8 7 Plus models. 10 24.2 19.2 15.4 12.1 9.7 8.0 6.1 5.0 0 4.1 Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016

© comScore, Inc. Proprietary. 27 The smartphone market has transitioned heavily to large screen models, which now outnumber small screen devices by 4x

Device Ownership by Smartphone Screen Size and Tablet Source: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Sep 2014 - 3 Mo. Avg. Ending Dec 2016

180 More consumers 160 are adopting 4.5”+ 140 smartphones with a 4.5” display or 120 greater, while tablet 100 ownership growth Tablet has pulled back in 80 recent years. This

60 correlation could be Device Owners (MM) Owners Device <4.5” due to tablets and 40 larger screen 20 smartphones sharing many of the 0 same use cases.

* The months of April and May 2015 were calculated using their single month of data vs. the 3-month average, due to an improved sample weighting methodology introduced in April. © comScore, Inc. Proprietary. 28 Social & Video Platforms

© comScore, Inc. Proprietary. 29 and video viewing are the two most popular online activities, together accounting for more than a third of all internet time

Share of Total Digital Time Spent by Content Category Source: comScore Media Metrix Multi-Platform, U.S., Total Audience, December 2016

All Other 16% Social Media leads Social Media Sports 20% all categories in 2% engagement, Lifestyles accounting for 1 out 2% of 5 minutes spent Photos online. The next 2% largest categories Instant Messengers 2% being Multimedia, Music and Games Search/Navigation Multimedia 3% 14% that digital is e-mail being increasingly 3% used for News/Information entertainment – now 3% more so than ever Directories/Resources with the rise of mobile 4% Entertainment - Music and consumers’ need 11% Retail to make use of their 5% Portals Games “in-between” time. 5% 8%

© comScore, Inc. Proprietary. 30 The smartphone app is by far the most popular access point for social media usage, with greater relative usage than the internet as a whole

Share of Time Spent on Social Media vs. Total Internet Across Different Platforms Source: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S., Dec 2016

Desktop Smartphone App Smartphone Web Tablet App Tablet Web The vast majority of social media consumption (70%) occurs on mobile apps, driven largely Total Internet 31% 51% 8% 9% 2% by smartphones. The smartphone app is the dominant social platform in +9 pts for Social Media the U.S., accounting for 60% of all social media time spent, which is 9 Social Media 21% 60% 6% 10% 2% percentage points greater than the internet as a whole.

© comScore, Inc. Proprietary. 31 Millennials use several social networks regularly, with Facebook commanding the lead in both audience size and engagement

Age 18-34 Digital Audience Penetration vs. Engagement of Leading Social Networks Source: comScore Media Metrix Multi-Platform, U.S., Dec 2016

1,200 After Facebook, Snapchat has the 1,000 highest engagement per visitor among Millennials, just 800 slightly ahead of Instagram – which 600 is 2nd in terms of penetration. 400 Millennials overall have a more diverse Average Monthly Minutes Visitor per Minutes Monthly Average 200 diet of social media platforms they 0 engage with on a 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% regular basis.

% Reach Among Age 18-34

© comScore, Inc. Proprietary. 32 The 35+ population also uses Facebook heavily, but doesn’t spread its attention across other networks to the extent Millennials do

Age 35+ Digital Audience Penetration vs. Engagement of Leading Social Networks Source: comScore Media Metrix Multi-Platform, U.S., Dec 2016

1,200 Age 35+ users show a higher relative 1,000 preference for Facebook in relation to other social 800 media platforms. They do have high 600 penetration among several others 400 beyond Facebook, but they don’t Average Monthly Minutes Visitor per Minutes Monthly Average 200 engage with any other platforms for 0 more than 100 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% minutes per month.

% Reach Among Age 35+

© comScore, Inc. Proprietary. 33 While Facebook’s users mirror the internet as a whole, Snapchat, Instagram and have a younger audience profile

Age Demographic Composition % of Major Social Networks Source: comScore Media Metrix Multi-Platform, U.S., Age 18+, Dec 2016 100% 3.9 5.9 5.7 4.1 10.6 7.6 5.4 6.4 Snapchat is the 90% 14.9 12.4 16.6 12.8 youngest skewing 17.0 16.5 18.1 80% 17.5 with 13.5 15.4 14.0 more than half of its 70% 17.9 17.7 17.9 16.6 users between the 17.7 Age 65+ 60% 16.6 ages of 18-34. It’s 17.1 Age 55-64 20.1 demographic 50% 19.5 22.3 22.6 Age 45-54 18.5 21.3 composition is now 40% 24.9 Age 35-44 23.9 much more diverse 25.2 Age 25-34 in age than a year 30% 22.5 20.6 23.1 23.1 24.1 Age 18-24 ago, as adoption 20% among the 35+ 28.5 25.7 population has 10% 20.6 17.7 15.0 13.1 14.7 13.3 improved. 0%

© comScore, Inc. Proprietary. 34 Snapchat has rapidly gained adoption among Millennials and now attracts most 18-24 year-olds and almost half of 25-34 year-olds

Snapchat Smartphone App Penetration by Age Source: comScore Mobile Metrix, U.S., Age 18+, Dec 2013 – Dec 2016 90% Snapchat’s strength Age 18-24 among younger 80% 78% demographics is 70% well-established and is especially good at 60% reaching the Age 25-34 coveted Millennials 50% 48% demographic. With a firm grasp on the

% Reach % 40% 38% college-age 30% segment, Snapchat has made huge 20% gains in penetration older Millennials as 12% 10% it gains more mainstream market 0% adoption. Dec-2013 Apr-2014 Aug-2014 Dec-2014 Apr-2015 Aug-2015 Dec-2015 Apr-2016 Aug-2016 Dec-2016

© comScore, Inc. Proprietary. 35 Snapchat steadily climbed the app rankings to crack the Top 10 in 2016, as mobile video becomes a new communication medium

Snapchat Rank in Audience Penetration Among Smartphone Apps Source: comScore Mobile Metrix, U.S., Age 18+, Dec 2015 - Dec 2016

Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016 Snapchat’s 0 continued gains in 2 adoption has led to 4 a steady increase in its rank among the 6 top smartphone 8 9 apps. November Top 10 10 2016 marked the 10 11 12 12 first month 12 13 13 13 Snapchat cracked 14 the Top 10, and it 14 15

RankAmong Smartphone Apps followed that up by 16 17 17 jumping another 18 spot to #9 to close 18 out 2016. 20

© comScore, Inc. Proprietary. 36 YouTube has also seen success with mobile video, with 7 out of 10 minutes of their viewing now happening on smartphones and tablets

YouTube Share of Time Spent by Digital Platform Source: comScore Video Metrix Multi-Platform, U.S., December 2016

YouTube, which was originally launched Mobile Desktop in the desktop era, has seen usage shift heavily to 30% mobile in recent years, with more than 2x as much viewing on mobile than on desktop. 70% This disparity is even more pronounced among 18-49 year-olds and women.

© comScore, Inc. Proprietary. 37 Mobile YouTube viewing is shorter-form but much more frequent, leading to 3x as many video views on mobile overall

YouTube: Engagement Metrics by Platform Source: comScore Video Metrix Multi-Platform, U.S., December 2016

Average Monthly Minutes Average Minutes Average Monthly Videos per Viewer per Video View Watched per Viewer Viewers tend to watch longer videos 847 on desktop than on mobile, but they 230 watch a lot more videos overall on mobile. The portability and 4.7 accessibility of mobile devices 355 3.7 allow for frequent 76 short-form video viewing experiences throughout the day.

Desktop Mobile Desktop Mobile Desktop Mobile

© comScore, Inc. Proprietary. 38 TV & Cross-Platform

© comScore, Inc. Proprietary. 39 Live viewing still dominates total TV time, but time-shifted viewing is more prevalent with primetime content

Share of Total TV Viewing Time: Live, DVR & VOD Source: comScore TV Essentials, U.S., FY 2016, Live +15 Day DVR; comScore State of VOD Trend Report

100% 1.1% 0.8% Live TV still makes

90% 14.9% up the bulk of TV 24.6% viewing hours, but 80% time-shifted viewing

70% on DVR accounts for a significant 60% Video-on-Demand (VOD) percentage of the 50% Digital Video Recorder (DVR) total viewing hours, particularly for 40% 84.0% Live TV 74.7% primetime content. 30% Video-on-demand

Share of Total TV Viewing Time Viewing TV Totalof Share (VOD) only 20% accounts for 1% of 10% TV viewing time.

0% Total Viewing Primetime Content

* Total TV viewing includes live TV, DVR and VOD, and does not include streaming via over-the-top (OTT) services. © comScore, Inc. Proprietary. 40 There’s a wide variance in time-shifted TV viewing by genre, with News and Sports content still skewing heavily toward live viewing

Live TV and DVR Time Split by Genre Source: comScore TV Essentials, U.S., FY 2016, Live +15 Day DVR

Live TV DVR +15 Days Not surprisingly, the News and Sports genres still see the Drama 71% 29% vast majority of viewing time happening live since Reality content relevance 75% 25% declines quickly post- event. Meanwhile, Dramas have a much Comedy 85% 15% higher percentage of time-shifted viewing since these programs Movies 85% 15% tend to have week-to- week storylines that viewers want to keep News 90% 10% current with, but don’t always need to watch on the day and time Sports 90% 10% they originally air.

© comScore, Inc. Proprietary. 41 Time-shifted DVR usage is especially popular among genres with dramatic, original programming

Genres with Highest Percentage of Time-Shifted DVR Viewing Source: comScore TV Essentials, U.S., FY 2016, +15 Day DVR

Thriller/Horror 46% Genres with ongoing storylines Soap Opera 34% that viewers follow week-to-week, or Action/Adventure 31% that require a full Drama 29% episode’s worth of attention, see more Reality 25% time-shifted viewing. Science Fiction/Fantasy 25% This time-shifting varies greatly even Variety 18% within the Top 10, with Thriller/Horror Foreign Language 17% seeing nearly 3x Documentary 16% more time-shifting than Travel content. Travel 16%

© comScore, Inc. Proprietary. 42 Millennials and Gen Xers spend more time on digital media than watching live TV, a sign of shifting media consumption dynamics

Hours Spent on Platform by Demographics Source: comScore Xmedia (Custom) and Media Metrix Multi-Platform, U.S., Q4 2016

Live TV Desktop Mobile The younger 40.0 demographic segments are more 35.0 likely to spend time on their mobile 30.0 device and less likely to spend time 25.0 watching live TV. In fact, Millennials 20.0 23.1 18.5 37.0 already spend more Total Hours (Billions) Hours Total time on mobile than 15.0 26.6 they do watching live 10.0 9.6 TV. It should be 19.1 noted, however, that 5.0 younger viewers are 6.9 8.9 6.8 likely watching more 0.0 TV via OTT services and time-shifted via Live TV Digital Live TV Digital Live TV Digital DVR and video-on- demand (VOD). Age 18-34 Age 35-54 Age 55+

* Time spent on desktop and mobile accounts for all content consumption on these devices (i.e. websites and apps), not just digital video. © comScore, Inc. Proprietary. 43 Nearly 1/3rd of the OTT audience is ‘cordless’ and doesn’t subscribe to pay-TV, with half of those being ‘streaming only’ households

Over-the-Top (OTT) Households by TV Service Type Source: comScore Total Home Custom Reporting, U.S., December 2016

Although there are many over-the-top households who Streaming Only 15.4% use these services Cordless as a replacement 30.6% for pay-TV, more Cable than two-thirds of Streaming + 45.1% OTT households Cordless Antenna use it as a 15.2% supplement to their cable or satellite service package. Only 15% of OTT households depend solely on this content for all of their TV viewing. Satellite 24.3%

* Households that use an antenna in addition to their cable or satellite services are included in those respective shares. © comScore, Inc. Proprietary. 44 Live TV, DVR and OTT all have the same ‘primetime’ with viewing peaking in the evening hours, though it’s most pronounced for DVR

Household Share of TV Viewing Type by Daypart Source: comScore TV Essentials & Total Home Custom Reporting, U.S., December 2016 18.0% The evening hours 16.0% are primetime for all 14.0% types of TV viewing. DVR sees the 12.0% highest percentage 10.0% of consumption during this time, as 8.0% viewers save their 6.0% favorite programs for the most 4.0% convenient time to 2.0% watch – often that window after dinner 0.0% and before bed. The peak viewing hour for all three is during the 9 PM hour. Live TV DVR +15 Over-the-Top (OTT)

© comScore, Inc. Proprietary. 45 Households with both TV and OTT still watch more than 5 hours of live TV for every one hour spent watching OTT content

Ratio of Live TV Viewing Hours per Hour of OTT Viewing in HHs with Both Services Source: comScore Single-Source (TV + OTT) Custom Reporting, U.S., December 2016

Among households that watch both traditional television OTT 1 Hour and OTT, live TV still dominates total viewing time. While OTT has been carving out more viewing time in the typical home, this Live TV 5 Hours & 28 Minutes data suggests that it’s supplemental rather than primary for homes with both 0 1 2 3 4 5 6 viewing options. Viewing Hours

© comScore, Inc. Proprietary. 46 In combined viewing households, even the heaviest OTT viewers consume more than twice as much live TV content as OTT

Over-the-Top (OTT) and Live TV Time Split Among HHs with Both Services Source: comScore Single-Source (TV + OTT) Custom Reporting, U.S., December 2016

100% Among households 90% that watch traditional TV and 80% OTT content, even 70% Live TV the heaviest OTT 69% OTT 60% households still 86% spend a lot more 50% 98% time watching live 40% TV. Despite the availability of more 30%

Share of Viewing Hours Viewing of Share ‘on-demand’ content 20% than ever before, 31% viewers still have a 10% 14% tendency to watch 0% 2% what’s on. Light OTT Viewers Medium OTT Viewers Heavy OTT Viewers

Heavy OTT = Top 20% segment of OTT viewers by duration Medium OTT = Top 20-50% segment of OTT viewers by duration 47 Bottom OTT = Bottom 50% segment of OTT viewers by duration © comScore, Inc. Proprietary. A variety of connected devices are now being used to watch OTT content, with streaming boxes and sticks the most popular

Connected Home Devices: Penetration of U.S. Wi-Fi Households Source: comScore Connected Home, U.S., December 2016

40% 37% Households. have several tech options 35% 31% for streaming over- 30% the-top TV content

27% to their television Fi HHs Fi - 25% sets. Streaming boxes/sticks, such 20% as Roku devices,

15% have the highest household 10% 8% penetration, but Penetration of U.S. Wi U.S. of Penetration gaming consoles 5% and “smart” TVs are other popular 0% Streaming Box/Stick Gaming Console Connected TV Internet Blu-ray Player options.

© comScore, Inc. Proprietary. 48 Roku is the most popular box or stick for streaming video, but Amazon, Google and Apple remain key players in this market

TV Streaming Boxes/Sticks: Penetration of U.S. Wi-Fi Households Source: comScore Connected Home, U.S., December 2016

With. streaming boxes/sticks as the 18% most popular method for streaming OTT content, many of the largest technology companies are 12% battling to be the platform-of-choice for 8% consumers’ living rooms. Despite the 5% competition from huge tech companies with deep wallets, Roku is currently the market leader.

49 * Roku’s number includes Roku OS TVs, which account for a small percentage of its total penetration. © comScore, Inc. Proprietary. Netflix leads the major over-the-top streaming services in both household penetration and viewing engagement

Selected Over-the-Top (OTT) Streaming Services by Wi-Fi Household Penetration & Engagement Source: comScore OTT Intelligence, U.S., December 2016

30 Netflix has the highest household 25 penetration and viewing time per 20 month among the major OTT content services. Hulu isn’t as 15 widely penetrated but attracts comparable 10 viewing engagement on a per-household basis. YouTube and 5

Avg. Monthly Viewing Hrs. per HH perHrs. Viewing Monthly Avg. Amazon are also in the mix and have 0 solid positions in the 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% OTT market. Wi-Fi Household Penetration

© comScore, Inc. Proprietary. 50 Sling TV, a popular ‘skinny bundle’ option, has seen adoption quickly accelerate in OTT households in the second half of 2016

Sling TV Household Reach (Millions) Source: comScore OTT Intelligence, U.S., 3 Mo. Avg. Ending Jul 2016 - 3 Mo. Avg. Ending Dec 2016

2.0 HHs watched 48 hours of Sling TV, which is a Sling TV, less expensive, less 1.8 the highest per-HH viewing 1.9 of any OTT service robust alternative to 1.6 1.7 cable, was being used in nearly two 1.4 1.5 million households by the end of 2016. 1.2 1.2 PlayStation Vue and 1.0 DirecTV Now are 1.0 similar services 0.8 offering live streaming packages 0.6 0.7 of pay-TV channels, Total Households (Millions) Households Total in what will likely be 0.4 an increasingly 0.2 common trend to attract cord-cutters 0.0 and cord-nevers. Jul-2016 Aug-2016 Sep-2016 Oct-2016 Nov-2016 Dec-2016

© comScore, Inc. Proprietary. 51 Advertising

© comScore, Inc. Proprietary. 52 Nearly half of digital ad impressions can’t have an impact because they’re not viewable or not delivered to a human

Percentage of Viewable Desktop Ad Impressions in U.S. Source: comScore vCE Benchmarks, U.S., Q4 2016

Nearly half of all desktop ad impressions are 6% unable to deliver an advertising impact. While most of these Viewable non-viewable ads are simply delivered to parts of the web page Non-viewable that are out of view, a meaningful 40% 54% Invalid Traffic (IVT) percentage is being delivered to bots and other forms of invalid traffic that is by definition not viewable to a human.

© comScore, Inc. Proprietary. 53 Sophisticated IVT is the overwhelming majority of invalid ad traffic, requiring advanced detection methods to combat this form of waste

Invalid Traffic (IVT) by Type Source: comScore vCE (Custom), U.S., December 2016

General IVT Sophisticated IVT, which according to the Media Rating Council (MRC) 11% includes “traffic originating from hijacked devices, malware or misappropriated content,” accounts for the vast majority of invalid traffic. Sophisticated IVT Sophisticated detection techniques 89% are therefore required for advertisers to mitigate the potential for waste.

© comScore, Inc. Proprietary. 54 Directly bought digital display and video ad inventory is more viewable and has a lower incidence of invalid traffic

Percentage of Viewable Ad Impressions & Invalid Traffic (IVT) – Display vs. Video Source: comScore vCE Benchmarks, U.S., Q4 2016

Direct Programmatic Direct ad buys and display ads tend to 80% 12% 11% outperform 70% 70% programmatic buys 60% 10% and video ads, 60% 52% respectively, when it 8% 50% 47% comes to appearing 6% 40% 6% in view and being 5% seen by humans. 30% 4%

4% Programmatic video % of Ad Impressions Ad of % 20% Impressions Ad of % ads are the most 2% susceptible to low 10% rates of viewability 0% 0% and high rates of Desktop Display Desktop Video Desktop Display Desktop Video invalid traffic.

% Viewable % Invalid Traffic

© comScore, Inc. Proprietary. 55 Invalid traffic levels have been stable for display ads, but the problem is growing for higher-CPM video ads

U.S. Desktop Invalid Traffic Comparison: Display vs. Video Norms Source: comScore vCE Benchmarks, U.S., 2016

Display Video Given the higher 12.0% CPMs for video, advertising on the 10.2% medium has 10.0% 9.3% become 8.5% 8.5% increasingly 8.0% susceptible to invalid traffic. This 6.2% 5.8% 6.0% 6.1% will continue to be a 6.0% challenge for the industry,

% of Invalid Traffic Invalid of % 4.0% underscoring the importance of

2.0% sophisticated detection techniques. 0.0% Q1 2016 Q2 2016 Q3 2016 Q4 2016

© comScore, Inc. Proprietary. 56 Both desktop and mobile ads deliver branding effectiveness, but mobile performs better – particularly at the bottom of the funnel

Percentage Point Lift in Brand Metrics for Desktop and Mobile Ads Source: comScore BSL and BSL Mobile Benchmarks, U.S., 2014 - 2016

Mobile ads caused Desktop Mobile point lifts up to 3x greater than ads on desktop across four 1.3 2.0x 2.6 Aided awareness desktop key brand metrics and performed especially strong in middle and bottom- 1.3 2.2x 2.9 Favorability desktop funnel metrics, such as favorability, intent to buy and likelihood to recommend. Less 1.5 1.9x 2.8 Likelihood to recommend desktop ad clutter and proximity to point of purchase may be driving better 1.3 3.1x 4.0 effectiveness for Purchase Intent desktop mobile ads.

© comScore, Inc. Proprietary. 57 E-Commerce

© comScore, Inc. Proprietary. 58 By Q4 2016, total digital commerce had grown to account for more than 1 out of every 6 discretionary retail dollars

Desktop & Mobile Digital Commerce Share of Corresponding Consumer Spending* Source: U.S. Dept. of Commerce, comScore e-Commerce & m-Commerce Measurement, U.S., 2004 - 2016

18% 15.0% 17.0% Digital’s share of 17% (Q4 ‘15) 16% Q4 ‘16 consumer 15% discretionary 14% 13.5% 13% spending, which 12% Q4 ‘16 peaks in seasonally 11% colder months, 10% 12.5% reached an all-time 9% (Q4 ‘15) 8% high in Q4 2016 at 7% 17%. Digital 6% commerce share 5% appears to be 4% Digital Commerce Share (desktop + mobile) 3% accelerating slightly 2% e-Commerce Share (desktop) in recent years due 1% to the impact of 0% mobile.

*Note: e-Commerce share is shown as a percent of DOC’s Total Retail Sales excluding Food Service & Drinking, Food & Bev. Stores, Motor Vehicles & Parts, Gasoline Stations and Health & Personal Care Stores. © comScore, Inc. Proprietary. 59 Boosted by a growing share of mobile, total digital commerce surpassed the $100 billion mark in Q4 2016 for the first time

U.S. Quarterly Online Retail Spending by Platform Source: comScore e-Commerce & m-Commerce Measurement, U.S., 2013 - 2016 $109.3 Billion $120.0 Desktop Mobile While desktop spending has continued to grow $100.0 $22.7 every year, mobile $15.6 is now driving much $80.0 $17.3 $10.7 $15.6 $16.9 of the growth and

$8.3 $11.1 contributing an $11.1 $11.4 $7.3 $60.0 $6.9 $6.7 increasing share of $5.9 $4.7 Billions ($) Billions $5.8 online discretionary $86.6 retail sales. Mobile $40.0 $76.9 $72.1 $67.9 $69.9 $67.4 $63.1 pushed digital $61.1 $59.8 $58.3 $56.1 $54.8 $53.9 $50.2 $49.8 $47.5 commerce to its $20.0 highest quarterly total ever in Q4. $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016

© comScore, Inc. Proprietary. 60 Mobile commerce growth rates far outpaced those of desktop e-commerce and bricks-and-mortar in 2016

Full Year 2016 Y/Y Retail Spending Growth by Channel Source: U.S. Dept. of Commerce, comScore M-Commerce and E-Commerce Measurement, U.S., FY 2016 / FY 2015

+50% +47% 2016 was a strong +45% year for U.S. discretionary retail, +40% with e-commerce +35% contributing some of the strongest gains. +30% Mobile commerce, which is still a +25% smaller market than +20% desktop and brick- +14% and-mortar, saw the +15% fastest growth rate +10% at 47% -- far +5% outpacing the two +5% other primary retail channels. +0% Total Discretionary Retail e-Commerce m-Commerce

© comScore, Inc. Proprietary. 61 Mobile commerce continues to gain share of digital commerce, surpassing the 20% mark in the second half of the year

Quarterly Trend in Mobile Commerce as a Share of Total Digital Commerce Source: comScore M-Commerce and E-Commerce Measurement, U.S., Q2 2010 – Q4 2016

M-commerce has 20.8% come a long way in 19.8%20.0% the past 6 years and 18.6% now contributes 16.9% 16.4% about 1 in every 5 15.4%15.6% dollars spent via digital commerce. 13.0% 2016 saw a 11.7% 11.3% 11.5%11.1%11.1% continuation of the 10.5% 10.8% 9.8% platform’s gains in its 9.0% 9.3% 8.8% 8.6% percent share of the 8.1% total market, as 6.6% 5.8% consumers become increasingly 3.6% comfortable 2.4% 1.8% transacting on their smartphones and tablets. Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016

© comScore, Inc. Proprietary. 62 However, in 2016, dollars still significantly lagged digital media time spent on mobile, highlighting the mobile conversion challenge

2016 Share of Retail Time Spent vs. Spending by Platform Source: comScore M-Commerce and E-Commerce Measurement, U.S., FY 2016

Mobile accounted for 67% of time spent shopping online, but only 20% of digital retail spend in 2016. 33% Factors such as security concerns and smaller screen size continue to add friction to mobile 80% purchases. While this 47% m-commerce 67% Gap monetization gap will narrow once mobile’s share of time spent stabilizes, the two Desktop 20% aren’t likely to ever Mobile reach equilibrium. Time Spent Dollars Spent

© comScore, Inc. Proprietary. 63 Several e-commerce product categories grew more than 20% in 2016, led by Jewelry & Watches and Furniture & Appliances

Y/Y % Change in Total Retail Digital Commerce Dollars by Category Source: comScore E-Commerce and M-Commerce Measurement, U.S., FY 2016 vs. FY 2015

Jewelry & Watches 39% Online retail grew Furniture, Appliances & Equipment 26% 19% year-over-year in 2016, with the Video Games, Consoles & Accessories 24% fastest growing Flowers, Greetings & Misc Gifts 24% categories seeing Event Tickets 24% most of their gains on Computer Software 24% mobile. The fact that Home & Garden 22% the top couple of Music, Movies & Videos 21% product categories by growth contain more Apparel & Accessories 20% expensive and Total Digital Commerce 19% complicated items Office Supplies 18% shows that Consumer Packaged Goods 17% consumers are Sport & Fitness 17% becoming more Toys & Hobbies comfortable making 16% these types of Consumer Electronics 16% purchases on their Digital Content & Subscriptions 15% smartphones and Computers / Peripherals / PDAs 15% tablets. Books & Magazines 14%

© comScore, Inc. Proprietary. 64 Apparel & Accessories is now the clear #1 product category online, edging out Computer Hardware for the 2nd straight year

Digital Commerce Sales by Category: Apparel & Accessories vs. Computer Hardware Source: comScore E-Commerce & M-Commerce Measurement, U.S., Q1 2013 – Q4 2016

$25.0 Computer Hardware was the longtime #1 $20.3 category in digital $20.0 commerce, but $17.2 Apparel & COMPUTER HARDWARE $15.9 Accessories has $14.0 $14.7 $18.2 $15.0 $13.6 emerged over the last $13.5 $12.4 $11.8 $16.0 few years to establish $11.3 $15.0 $11.8 $13.0 itself as the new #1. $9.9 $10.2 $10.0 $12.5 $12.9 $9.2 $9.1 Gains in mobile $10.0 $12.3 Billions ($) Billions $11.1 $11.0 commerce, along $9.9 $10.0 $10.1 with consumers’ $8.4 $8.4 $8.4 increasing comfort $7.1 $5.0 with online returns, APPAREL & ACCESSORIES have helped boost the category to new

$0.0 heights. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016

© comScore, Inc. Proprietary. 65 The 2016 holidays saw retail traffic peak on Black Friday and Cyber Monday, with mobile outpacing desktop every day this season

2016 Holiday Season: Digital Retail Visits (MM) by Platform Source: comScore Custom Analytics, U.S., Nov 1 – Dec 31, 2016 1,200 Black Friday Cyber Monday Mobile accounted for 62% of all online 1,000 retail visits this TOTAL DIGITAL holiday season and 800 outpaced desktop every single day of the season. Mobile

Visits (MM) Visits 600 visits peaked on MOBILE Black Friday, while 400 desktop visits peaked on Cyber 200 Monday, which saw DESKTOP more overall retail traffic than any 0 11/1/2016 11/8/2016 11/15/2016 11/22/2016 11/29/2016 12/6/2016 12/13/2016 12/20/2016 12/27/2016 other day in 2016.

© comScore, Inc. Proprietary. 66 Box Office

© comScore, Inc. Proprietary. 67 Disney led all film studios in 2016 market share, taking in more than a quarter of the box office dollars on the strength of its franchises

North America Box Office Market Share by Film Studio in 2016 vs. Year Ago Source: comScore Box Office Essentials, North America, FY 2016 vs. FY 2015

2015 2016 Disney had a huge 2016 at the box 10% 10% office, growing its market share by 6 percentage points Other 22% Other 6% 6% 26% from a year ago. Warner Bros. and Paramount also grew 6% 8% their market shares, while Universal couldn’t quite match its level of success 9% from 2015, boosted 8% by Jurassic World, Furious 7 and 20% Minions. Overall, the “Big Seven” major 17% studios took in more 13% 12% than 90% of the 2016 box office dollars. 14% 13%

© comScore, Inc. Proprietary. 68 Finding Dory led the 2016 domestic box office as one of six Disney films to rank in the Top 10

Top 10 Grossing Box Office Movies in 2016 ($ Millions) Source: comScore Box Office Essentials, North America, Jan. 1 – Dec. 31, 2016

Finding Dory $486.3 As was the case in 2015, the Top 10 in Rogue One: A Star Wars Story* $408.2 2016 featured mostly action Captain America: Civil War $408.1 movies and animated family- Secret Life Of Pets, The $368.4 friendly films, with Disney distributing Jungle Book, The $364.0 four of the top five Deadpool $363.1 films in 2016. Disney Impressively, Star Zootopia $341.3 Universal Wars: The Force 20th Century Fox Awakens cracked Batman V Superman: Dawn Of Justice $330.4 Warner Bros. this past year’s Top 10 despite being Suicide Squad $325.1 released in mid- Star Wars: The Force Awakens $284.7 December 2015.

* Rogue One was released on December 16, 2016, and therefore was only in theaters the last two weeks of the year. © comScore, Inc. Proprietary. 69 20th Century Fox had the top two digital movie rentals of 2016 with Deadpool and The Martian

Top 20 Digital Movie Purchases & Rentals in 2016 Source: comScore Digital Download Essentials, U.S., Jan. 1 – Dec. 31, 2016

RANK TITLE STUDIO As was the case last 1 Deadpool (2016) Fox year, 20th Century 2 Martian, The (2015) Fox Fox was home to two 3 Zootopia (2016) Disney of the biggest movies 4 Star Wars: Episode VII - The Force Awakens (2015) Disney in 2016 in terms of 5 Batman V Superman: Dawn Of Justice (2016) Warner 6 The Hunger Games: Mockingjay - Part 2 (2015) Lionsgate total digital purchases 7 Revenant, The (2015) Fox and rentals. As with 8 Captain America: Civil War (Theatrical) Disney the top grossing box 9 Daddy's Home (2015) Paramount office movies, action 10 Suicide Squad (2016) Warner films tended to be 11 Intern, The (2015) Warner most popular among 12 Big Short, The (2015) Paramount audiences, even on 13 Finding Dory (2016) Disney the “small screen,” 14 13 Hours: The Secret Soldiers Of Benghazi (2016) Paramount but comedies and 15 Bridge Of Spies (2015) Disney sci-fi films also had 16 Sicario (2015) Lionsgate notable success this 17 Star Trek Beyond (2016) Paramount year. 18 Hateful Eight, The Starz Entertainment 19 Central Intelligence (Unrated) (2016) Warner 20 X-Men: Apocalypse (2016) Fox

* Excludes NBC Universal and non-participating Independent distributors. EST revenue source: DEG © comScore, Inc. Proprietary. 70 Key Takeaways

© comScore, Inc. Proprietary. 71 Key Themes for 2017

The Maturation of A Cross-Platform Advertising Gets Back 1 Mobile 2 Ecosystem Emerges 3 to the Basics

The U.S. smartphone market is nearing Digital media has gone cross-platform, and Today’s media environment is fragmented, saturation and the tablet market has flattened. more devices than ever before are being used messy and complex. Siloed platforms, Advances in device technology are now to access content inside the home. varying ad formats, and disparate buying and growing incrementally rather than by leaps selling processes all add friction that inhibit Desktop and mobile media usage are and bounds. coordinated marketing strategies. converging with traditional TV and OTT, as While mobile now dominates digital media consumers watch their favorite content through Issues of digital ad viewability and fraud only usage, consumption is beginning to stabilize any number of devices, including smart TVs, add to the confusion, erode trust, and distract and the days of huge growth are over. Digital streaming boxes and gaming consoles. from how advertising performance ought to media audiences are in the latter stages of a be measured. The cross-platform era will be defined by a multi-year boom. media-agnostic view of the consumer and Ad measurement is finally getting back to Consumer usage trends always shift faster comparable metrics to facilitate efficient media basics with a return to the metrics that matter than dollars, but now is the time for the planning, buying and selling. – reach, frequency, impressions, economics to catch-up with behavior. This will demographics – which are every bit as be enabled by better measurement, improved relevant today as they have ever been. But industry standards and less friction in running they are also getting more advanced, with the mobile ad campaigns. ability to go deeper on audience descriptors and tying to behavioral outcomes.

© comScore, Inc. Proprietary. 72 For more information about comScore and its measurement products, please visit: comscore.com/learnmore

For more information about the report, please contact: ANDREW LIPSMAN, VP Marketing & Insights [email protected] ADAM LELLA, Senior Marketing Insights Analyst [email protected]

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© comScore, Inc. Proprietary. 73 For info about the proprietary technology used in comScore products, refer to http://www.comscore.com/About-comScore/Patents © 2017 comScore, Inc.