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Making Money with HD Radiotm Technology Presented to Rising Through the Ranks

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Making Money with HD Radiotm Technology Presented to Rising Through the Ranks Making Money With HD RadioTM Technology Presented to Rising Through The Ranks August 16, 2017 Joe D’Angelo Senior Vice President Xperi, Inc. Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY AGENDA Who we are at Xperi What Is HD RadioTM Technology HD Radio Technology by the Numbers The Battle for the Dashboard Programming, Promotions & ROI Summary 1 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. Machine Learning SiP Image Sensor Connected Radio Wafer Bonding Virtualization Semiconductor IP Product Product Technologies & Licensing Licensing Licensing Biometrics IP Licensing Semiconductor Wireless Audio Packaging Digital Radio Iris Recognition Memory 2.5D/3 DMS Interconnect Technologies Interconnect Stacking D IC Audio Compression MEMS Imaging 2 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. Machine Learning Product Licensing Solutions • Xperi Technologies are Integrated in More Than 5B Devices Worldwide Automotive Mobile Home Auto-head units Smartphones TVs Broadcast Tablets Blu-ray players infrastructure PCs AVRs Driver assistance Gaming headsets Soundbars technology Drones Wireless speakers Activity cameras Game consoles Mobile applications Set-top-boxes HD Radio™ FotoSavvy™ DTS HD Master Audio™ DTS HD Master Audio™ FacePower™ DTS X™ / Virtual X™ DTS Neural Surround™ DTS HeadphoneLX IMAX Home Automotive DMS DTS Sound Play-Fi™ TAM = ~230B units 3 *TAM: Total addressable market Source: IHS, IDC, Parks Associates, Sensian Research, Prisemark LLC Nov 2016 report and DTS internal data Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY HOW IT WORKS 1 Analog and digital signals sent separately 1 2 3 2 Audio combined prior to transmission 3 Composite signal transmitted by station 4 4 Multipath distortion only affects analog signal Broadcast is compatible with both analog and 5 digital radios — only digital radios receive digital multicast channels 5 4 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY AUDIO FEATURES HD RADIO AUDIO PROGRAMMING IS 100% SUBSCRIPTION FREE! Program Info displays information such as artist, song title and album name. FM stations can divide the digital signal offering up to 3 additional digital only audio programs on HD2/HD3/HD4 multicast channels. Across the US there are over 2,100 AM and FM stations now broadcasting with HD Radio Technology, and over 1,800 new extra local HD2/HD3/HD4 channels also available. HD Radio Technology offers crystal clear, static free sound with none of the clicks, hisses or pops associated with traditional analog radio. FM sounds like CD quality and AM sounds like FM stereo. Images related to the broadcast can be displayed on the radio display, including items such as album cover art and station or advertiser logos. 5 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY DIGITAL AUDIO FEATURES Digital simulcast 1 of analog signal ADULT CONTEMPORARY DEMOGRAPHICS: WOMEN 25-54 Targeted 2 Smooth Jazz SMOOTH JAZZ FM STATIONS CAN DIVIDE THEIR DEMOGRAPHICS: ADULTS 35-64 DIGITAL SIGNAL OFFERING INTO UP TO 3 ADDITIONAL DIGITAL-ONLY AUDIO PROGRAMS ON HD2 / 3 / 4 Simulcast of MULTICAST CHANNELS 3 co-owned AM ALL NEWS All-News station DEMOGRAPHICS: MEN 25-54 Network Sports 4 Programming SPORTS RADIO NETWORK DEMOGRAPHICS: MEN 18+ 6 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY HONDA AUTO IMPLEMENTATION Images related to the broadcast can be displayed on the radio screen, such as album cover art and station logos. FM stations can divide the digital signal offering up to 3 additional digital only audio programs on HD2-HD3-HD4 multicast channels. Program Info displays information such as artist, song title and album name. HD Radio Technology offers crystal clear, static free sound with none of the static, hiss or pops associated with traditional analog radio. FM sounds like CD quality and AM sounds like FM stereo. 13 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY BY THE NUMBERS 95%+ of all Americans are able to receive an HD Radio signal 79% of radio listening is to stations broadcasting via HD Radio Technology Virtually 100% coverage of top 100 Nielsen Metros Weekly reach of HD2-HD3-HD4 channels alone is almost 8.4 million 41%+ of cars sold in 2016 in the U.S. came with HD Radio Technology All 36 popular vehicle brands in the U.S. offer HD Radio Technology 200+ U.S. vehicle models offer HD Radio Technology; 100+ as standard As of April 2017 8 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY BY THE NUMBERS HD Radio multicast-only listening (Total U.S.) (HD2 / HD3 / HD4 channels only) Weekly Reach in Thousands Source: Nielsen Audio NRD Database Persons 12+ Total U.S. Includes analog translator listening 9 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY BY THE NUMBERS U.S. Stations Converted: 2,410 Stations On-Air / HD2-HD3-HD4 Digital Channels: 2,148 / 1,905 Total HD Radio Audio Services (Digital Channels): 4,053 Total HD Radio Artist Experience Stations / Channels: 866 / 1,565 Stations Delivering Digital Traffic Services (iHeart and BTC): ~700 TSL to digital audio services in HD Radio-Equipped Cars: 103M hours/wk As of April 2017 10 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY BY THE NUMBERS Almost 36 million HD Radio-equipped cars on the road in North America + Over 4 million consumer HD Radio home and portable receivers = Over 40 million HD Radio receivers in U.S., Canada & Mexico HD Radio auto penetration over 15% in the 25 largest U.S. cities: Miami: 23.4% of all cars on the road New York City: 22.8% of all cars on the road Los Angeles: 21.1% of all cars on the road West Palm Beach: 21.0% of all cars on the road San Francisco: 18.3% of all cars on the road As of April 2017 11 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. THE BATTLE FOR THE DASHBOARD All major auto brands offer factory-installed HD Radio Technology 216 212 Vehicle Brands (Chevy, Ford etc.) 198 Vehicle Models (Malibu, Focus etc.) HD Radio Technology Standard 166 154 109 114 109 86 92 76 67 61 36 33 36 36 36 16 21 28 2010 2011 2012 2013 2014 2015 2016 Y-T-D 9 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY PROGRAMMING, PROMOTIONS & ROI . Programming Strategy: . Flanking a competitor . Company: . CBS Radio - Baltimore . Station: . WLIF New Country 101.9 HD2 / 106.1 FM . Approach . “New Country 106.1” is a translator fed from the HD 2 channel of CBS Radio's 101.9 FM . The programming strategy is to challenge perennial country leader WPOC . The translator signal of New Country 106.1 targets country hot zips in the Baltimore market for a direct selling approach 15 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY PROGRAMMING, PROMOTIONS & ROI . Programming Strategy: . Rounding out a cluster . Company: . Apex Broadcasting - Charleston, SC . Station: . WMXZ HD2 99.3 The Box . Approach . The Box features a locally-targeted Urban Contemporary format . Apex’s strategy is to develop ROI with Urban and Hip Hop listeners in the market . The HD2 channel complements the Hot AC main channel . Both content offerings are well branded and targeted for the market 16 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY PROGRAMMING, PROMOTIONS & ROI . Programming Strategy: . Introducing a niche brand . Company: . Saga Broadcasting – Springfield, MA . Station: . WLZX 99.3 HD2 / Hits 94.3 FM . Approach . CHR formatted “Hits 94.3” targets the 5 major colleges of Hampshire County MA. “Super serves” the student population of the area with 2 specific brands. Rock-formatted main channel serves the rock audience. The HD2 channel is niche programmed CHR to appeal to area’s student population and establish a new brand for the station. 17 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY PROGRAMMING, PROMOTIONS & ROI . Programming Strategy: . Rounding out content offering in the market . Company: . Minnesota Public Radio . Station: . KNOW 91.1 / 91.1 HD2 / 91.1 HD3 . Approach . 91.1 KNOW is an NPR affiliate station offering full NPR/APM content . The HD2 channel has a well-regarded classical format . The HD3 channel offers a special musical service called “The Current”. Listeners can support the station with the purchase of HD Radio receivers through a link to Amazon directly from the station’s website. 18 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY PROGRAMMING, PROMOTIONS & ROI . Station: . KNDE Candy 95.1 / Rock Candy HD2 / Play By Replay HD3 . Main Marketing Premises: . All 3 HD Radio channels targeted at market’s 46,000 college students . HD2 has heavy local emphasis on indie and local band scene .
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