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Precisely Measuring

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Precisely Measuring PRECISELY MEASURING 2014 Annu 2014 MOVIES & TV A l Repo eVeRYWHeRe R t 7700 ne AmbAssAdoR plAce • poRtlAnd, oRegon 97220 • 503.284.7581 • 866.333.6210 RentRak.com 2014 AnnuAl RepoRt RENTRAK PRECISELY MEASURES digital downloads in 100,000+ 182B+ movie THEATER Television Tunes screens in real-time + CorPORATE annual shareholders 180 HEADQUARTERS meeting per YEAR countries 7700 NE Ambassador Place August 13, 2014 at 9:00 a.m. PDT Portland, Oregon 97220 Portland, Oregon 503.284.7581 rentrak.com tV sales & mar Keting headQuarters live viewing ON nearly 352 Park Avenue South, 6th Floor 9B+ New York, New York 10010 other offiCes * VIDEO ON DEMAND 212.810.2435 views & orders Chicago per YEAR Miami/Ft. Lauderdale moVie measurement Buenos Aires headQuarters London 5000 Van Nuys Boulevard, Madrid Suite 460 Mexico City Sherman Oaks, California 91403 Munich 818.728.8880 Paris televisions Rio de Janeiro 60M 71M Sydney box office grosses & Toronto admissions per year nearly STOCK TRANSFER AGENT INVESTOR RELATIONS Computershare Investor Services COUNSEL P.O. Box 43070 PondelWilkinson Inc. Los Angeles, California video on demand viewing ON Providence, Rhode Island 02940 $36B 800.962.4284 yearly from box computershare.com/investor COMMON STOCK offices worldwide Rentrak common stock is traded AUDITORS on the NASDAQ Global Select Grant Thornton LLP Market under the symbol RENT. Portland, Oregon LEGAL COUNSEL 114Mtelevisions in the u.S. and canada + Perkins Coie LLP 20,000+ Portland, Oregon movie THEATERS viewing on 200M+ DIGITAL DOWNLOADS 9B+ PER YEAR internet TV views ALL per YEAR TV NETWORKS *After Anonymized And AggregAted viewing informAtion from Cox And direcTV is fully integrAted Table of Contents about rentrak . A2 Letter to SharehoLderS . A3 LeaderShip team . A10 FinanciaL Summary . A12 Form 10-k . 1 SharehoLder inFormation . InsIde BAck cover about rentrak Precisely measuring what consumers are watching everywhere. rentrak is the entertainment industry’s premier rentrak is the measurement currency used by movie source for knowing—every day, every second, studios and distributors, theater chains, mVPDs, local everywhere—who is going to the movies and who is television stations, national networks, advertisers watching tV and video across every screen. With the and their brands, advertising agencies, and political ability to measure the box office on a census-level agencies and consultants to more profitably grow around the globe and merge viewing information their operations and more effectively compete in from millions of televisions with actual consumer the increasingly complex media and entertainment behavior information, only rentrak can provide the environment. as the media and advertising stable and robust audience measurement services on sectors continue to evolve, rentrak will be there, which movie, television and advertising professionals precisely measuring movies and tV everywhere have come to rely to better manage their business consumers are watching. goals and more precisely target advertising. We inVite you to V iSit uS onLine at RentRak.com to L earn more. page a2 Dear Fellow Shareholders, When approached to be your CEO products that help our clients MUCH THEY SP five years ago, I had a proven OW ENT better understand how to reach H track record and a vision for W their ideal consumers more H A rentrak’s future that the T efficiently and profitably . O VER T G E Y H Board believed was a Y W E E S Y H E H T T H recipe for success . Today, I Today, rentrak is a L E O L U I V R that vision is a reality . I G very unique company W O H E T saw media consumption that is number one M at precisely measuring habits changing and ADVANCED movies and Tv advertisers and agencies TM O DEMOGRAPHICS interested in changing N G everywhere . This success N D I E M results from countless along with these new M T A A E behaviors, but the N E R hours of commitment D V T S R information industry was by our 525 dedicated E E V not keeping up by providing H employees throughout the M E O R W L B Y A the measurement tools to IL C world, as well as our clients E LO support this rapid evolution . and partners who support us in NATIONAL consumers were beginning to making this possible . view all types of content on multiple devices at any time and in any location, but Fiscal 2014 was characterized by outstanding the sample-based measurement service could not growth and substantial operational achievements . sufficiently gauge these changing viewer habits I am proud to say we more than accomplished and, in turn, became less valuable in the fragmented our goals for the year . I am confident that our world . We believed that the most precise and business will grow even bigger and stronger as we effective way to measure such fractionalized viewing build on our successes and continue to capitalize behavior would be to introduce a measurement on our distinctive movie, video on demand, and currency driven by many different databases . Tv measurement and analytical services, which enable the entertainment and advertising industries By combining rentrak’s massive amounts of movie, to be more productive and profitable . Tv and video measurement information with information about the products viewers buy, the I am thrilled to be able to share with you cars they drive and the lifestyles they lead, we have our progress and exciting plans for the future . created high-value and, in many cases, exclusive Let’s dive into our lines of business . page a3 Theatrical – We Are the Gold standard Just five years ago,r entrak was focused on the U .s . theatrical Innovation has been at the heart of rentrak’s success . We (movie) market . shortly after my arrival, we acquired nielsen are continually evolving to meet the needs of the changing EDI and created a worldwide movie measurement platform industry and to help our clients operate more profitably by to layer on the innovative products we offer . introducing highly innovative products and services . The newest products from our box office business, PostTrak® Today, rentrak is the global measurement currency for and PreAct™, are just two examples of how we are continuing the movie industry . With more than 700 clients across to innovate to help propel the movie industry forward . the world, rentrak provides every major and mini-major studio, prominent independent film distributor and movie PostTrak, which integrates information about consumer theater chain with crucial real-time and historical box office reactions on the first two weekends of a movie’s release information integral for succeeding in the industry . with our box office measurement information, is gaining tremendous marketplace traction with both major and According to our recently-released “state of the mini-major studios . PreAct, which uses social media to Worldwide Movie Market: Trend report,” 2013 was the year measure audiences’ movie interest—along with the impact of the sequel, with 25 wide-release sequels generating of marketing campaigns—up to a year in advance of a $3 .6 billion, or nearly 32 percent of the year’s record box movie’s release, allows content creators and marketers to office revenue in north America . In fact, eight of 2013’s “course correct” during a movie’s critical marketing stage, top 10 highest grossing movies worldwide were sequels . and has already been adopted by several movie studio only rentrak can provide studios and distributors with the clients . The outlook for these services is very promising . critical information about industry trends that allows them to make effective, forward-looking decisions . With 25 sequels already in the works for 2014—an unprecedented record global box office revenue In 2013 number to be planned this far in advance—and 22 already scheduled for 2015, it’s clear the industry will continue to rely on rentrak for the information needed to plan and grow the movie business well into the future . norTh amerIcA 2013 was not only a record year for sequels, it was a record year for the entire industry . In 2013, the global box office $10.9B raked in an incredible $35 .6 billion . rentrak now measures = $35.6B WorLdWIde more than 100,000 screens across 20,000 theaters around InTernational the globe and is uniquely positioned to help our clients take $24.7B advantage of this tremendous growth at the box office to maximize revenue potential . regular movies vs. sequels/franchises – Percen T oF Total norTh amerIcA Gross regular seqUeL/FrAnchIse 15.4% 31.7% 6.2% 1994 2004 2013 Total = $5 17B. Total = $9 .29B Total = $10 .92B page a4 Tv everywhere For The LAsT rentrak is the only company able to measure the total television audience across every screen—be it a television in 10 yeArs, the living room, a tablet at work, a mobile phone on the go or a computer in the home office with our unique, massive china’s Box big data techniques . our customers want program ratings for office Receipts shows that draw a large audience and those that reach the hAve GroWn most targeted viewers, whether the content is viewed live, recorded on a DVR, seen on video on demand or streamed or 30% By AroUnd downloaded on a digital device . our promise to the industry 30% peR yeaR is to take a massive and also a passive approach to multi- platform viewing everywhere the consumer is watching . In addition to inventive product launches, our box office business is continuing its expansion into new international Video on demand rePresents a territories . In last year’s letter, I discussed our successful entry into the fast-growing chinese movie market, of which $10 billion we now measure 95 percent .
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