Strategic Planning Meeting

How People Use Audio and Sports Radio

RAB/NAB Radio Show 2011 September 16, 2011

David Tice Thomas Evans, Ph.D. Vice President & Group Account Vice President , Audio Research & Director, Media Team and Special Projects Knowledge Networks, Inc. ESPN, Inc.

Who? General Population: N=1554 Males age 18-54.  289 Past Week Sports Radio Users When? December 2010

How? 20 minute online survey on Knowledge Networks’ probability-recruited research panel Cooperation rate was 48% among assigned sample

What? Respondents answered a variety of questions about overall device ownership and usage, downloading, streaming, and OTA habits, and usage of sports and ESPN Audio properties

What Devices People Use to Listen to Audio

Where People Listen to These Devices

Why People Select Those Devices to Listen to Audio

How Much People Listen to Audio on Those Devices

What Are the Attitudes to Advertising on Audio

Ownership Among Total Men 18-54

100 93% 16% claim to have a 78% Smartphone with 80 72% radio capability 64% 62% 59% 60

Smartphone 40 35% Net (51%)

23% 19% 18% 20 13% 10% 6% 4% 3% 0 Desktop/ Clock Basic Cell Home iPod or Portable Portable BlackBerry Android iPhone Other Satellite iPad, HD Internet Laptop Radio Phone Entertain- Other Tabletop/ Handheld/ Smartphone Radio Galaxy, Radio Radio Computer ment Portable Desktop Personal or Other Radio MP3 Radio Radio Tablet Device

Ownership Among Total Men 18-54

100 84%

60 50% among Men 18-24 37% 40 34% among $100K+ income 19% 20 3% 0 AM/FM Radio iPod/Other MP3 Satellite Radio HD Radio Receiver Player played Receiver Receiver through vehicle’s sound system

Products at Personal Workspace Percent Desktop or Laptop Computer 36% Portable Tabletop/Desktop Radio 7% Clock Radio 5% Radio in a Stereo or Entertainment System 4% Portable Handheld/Personal Radio 3% Satellite Radio (XM or Sirius) Receiver 1% Internet Radio Device like a Chumby One 1% HD Radio 0%

Total Ownership among Total Men 18-54 Ownership AM/FM broadcast radio of any type 96% Desktop/laptop computer 95% Basic cell phone 72% iPod or other portable MP-3 player 62% Any Smartphone 51% Connection for iPod/other MP3 in car 37% Satellite radio (Sirius or XM) receiver for home/car/work 21% iPhone 13% iPad/Tablet 6% HD radio for your home or car 6% “Internet radio” device like a Chumby One 4%

100

90 AM/FM radio 80

50 iPod/iPad/mobile Computer 40

20 Satellite radio Smartphone

Use at least once a week for Audio for week oncea least Useat 10 HD Radio Regular cell phone 0 Internet device 0 20 40 60 80 100 Device Ownership in Any Location

None 36% Past Wk 64%

Types of Receivers Used in Past Week Percent Radio in a car or truck 89% Clock radio 26% Radio built into a stereo or entertainment system 24% Portable desktop/tabletop radio 19% Portable handheld/personal radio 10% Radio receiver built into a cell or mobile phone 5% HD radio receiver of any type 2% Other type of radio not listed 2%

Music 53%

News/Weather 23%

Talk - General 14%

Talk - Political 12%

Talk - Sports 12% 19% are Past Sports Play-By-Play 8% Week Terrestrial Sports Radio Sports Scores or Updates 8% Users Sports Pre-Game/Post-Game 6%

Religious 5%

Educational/Self-Help 1%

Other Type of Content Not Listed 2%

0 20 40 60 80 100

5% 10% 8% 22% 22% 19% 26% 21%

44% Never Listen 33% 41% 40% Listen Less than Once Week 34% 34% Listen Once Week

Listen Daily 68% 68%

34% 40% 48% 44% 32% 34% 39% 34% 34% 37%

10% 6% 8% 6%

Sports scores Sports Radio program Sports Play-by-play Sports post- and updates talk radio on team or pre-game coverage game show league show

Streamed Radio Downloaded

None None 63% 61% listen to 84% Past full version Past Week of program Week 27% 16%

Types of Devices Used Prcnt Types of Devices Used Prcnt

Desktop PC 42% Desktop PC 34%

Laptop PC or netbook 42% Laptop PC or netbook 33%

iPod or other MP-3 player with WiFi access 14% iPod or other MP-3 player with WiFi access 29%

Smartphone other than an iPhone 14% Smartphone other than an iPhone 9%

iPhone 10% iPhone 7%

“Internet radio” device like a Chumby One 6% iPad or other tablet device 1%

iPad or other tablet device 2% Other type of device not listed 0%

Other type of device not listed 4%

Types of Streamed Types of Downloaded Content Listened to Content Listened to

Music 19% 7%

Talk - General 4% 2%

News/Weather 4% 3%

Talk - Political 3% 2%

Talk - Sports 3% 4% are Past 2% Week 3% are Past Sports Play-By-Play 2% 1% Sports Week Sports Sports Pre-Game/Post- Streamers Downloaders 1% 1% Game Sports Scores or 1% 1% Updates Religious 1% 1%

Educational/Self-Help 2% 1% Audio Books or 0% 0% Magazines Other Type of Content 2% 2% Not Listed 0 10 20 30 40 50 0 10 20 30 40 50

Listening to ESPN on OTA Listening to ESPN Streamed Listening to ESPN Radio among OTA sports Radio among streamed sports Downloaded Radio among listeners listeners downloaded sports listeners

100%

26% 32% 32% 80% 44% 45% 44% 56% 63% 60% 83% 31% 27% 84% 31% 25% 28% 40% 29% 19% 24% 22% 32% 25% 20% 25% 15% 17% 20% 9% 8% 12% 17% 13% 6% 6% 8% 5% 11% 0% 1% 3% 1% 5% 3% On ESPN Simulcast on ESPN Streaming Clips or Any content ESPN Clips or Clips/Highlights ESPN Radio station ESPN Cable Deportes ESPN Radio Highlights from Deportes Podcast Highlights from Deportes Podcast

Listen daily Listen at least once a week Listen less than once a week Never listen

Another's Other Home Work 1% 8% 5%

Home 49%

Car 37% Mean minutes per day among users = 86 mins

Terrestrial Only 4.1%

Terrestrial + TV Simulcast 4.1% 1.4%

Terrestrial + Satellite 4.1% 0.6%

Terrestrial + Streaming 4.1% 0.4%

Terrestrial + Mobile 4.1% 0.3%

Terrestrial+ Deportes Radio 4.1% 0.3%

Terrestrial + Download 4.1% 0.1%

0% 1% 2% 3% 4% 5% 6% 7% 8%

% Broadcast Reach % Incremental

Terrestrial Only 10.1%

Terrestrial + TV Simulcast 10.1% 2.5%

Terrestrial + Satellite 10.1% 0.7%

Terrestrial + Streaming 10.1% 1.3%

Terrestrial + Mobile 10.1% 0.1%

Terrestrial + Deportes Radio 10.1% 0.0%

Terrestrial + Download 10.1% 0.0%

0% 2% 4% 6% 8% 10% 12% 14%

% Broadcast Reach % Incremental

“I can be in my car, working Reasons for Terrestrial Prcnt out, or just on the go.” Accessibility 37%

Confidence 34% “easier to access at anytime” Familiarity 8% “easier to change stations” Audio Quality 4% “what I am use to.” Cost 2% Hardware 1% “can’t always get internet connection” Programming 1%

Reliability 1% “I do not know what steamed or downloaded is. I know what radio is.” Other 9%

Reasons for Satellite Prcnt “More choices of games, talk shows” Programming 42% “better reception” Quality of Audio 20% “clearer sound” Location 12% “National perspective” Commercials 10% “I can get different NFL games that may or may not be carried on Sat Listening 10% commercial Radio” Accessibility 3%

Other 3%

“I mainly use Satellite Radio when on road trips driving. I have fewer problems with loss of signal. However, when in town, I prefer my local broadcast radio station. It’s good and it’s free.”

Reasons Streaming Sports Audio Prcnt Don't have access to a radio at the time 37%

To listen to a recent broadcast I missed 33%

Don't have access to the broadcast in the area I'm in 32%

It's only available online 17%

To listen to older broadcasts 16%

Bad radio reception at the time 10%

To try out a new program 6% To listen to a recent broadcast over again 3% Another reason not listed above 8%

Reasons Downloading Sports Audio Prcnt To listen to a recent broadcast I missed 37% To listen to a recent broadcast over again 32% Don’t have access to a radio at the time 24% It’s only available online 18% To listen to older broadcasts 13% Don’t have access to the broadcast in the area I’m in 13% Bad radio reception at the time 10% To try out a new program 8% Another reason not listed above 3%

42% Friends or relatives 40% On-air mentions during regular radio 23% 31% broadcast 19% Search engine 22% 17% iTunes 12% 13% Local radio station website 17% Social networking site like Facebook or 13% MySpace 9% National radio network website 12% 17% Website that hosts or sells content but is 6% not associated with program or network 9% Apps on phone or mobile device 6% 6% Ads or mentions on related television 5% networks or Internet sites 5% Another type of site not listed 6% 7%

0 10 20 30 40 50

Total Sports Audio User

100

80 Net Impact 60% -6% 60

22% 20 16%

0 No difference to listening Listening to terrestrial Listening to terrestrial to terrestrial less often more often

“Sometimes live broadcasts are “Radio is readily available, and inconvenient. The Internet easy to use in my car.” provides me with a download/ podcast that I can listen to later.” “Broadcasts are everywhere and “There's always going to be more radios are everywhere and simple variety on the internet.” to use and reliable.”

Prefer Internet 18%

Prefer Radio 82%

Hours before purchase 0 1 2 3 4 5 6 7 8 Hours Terrestrial TV Str/Dnld Magazine Radio Audio

Internet Smartphone Newspaper

Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree 100

80 72% 64% 60 52%

40 32% 31% 29% 25% 22% 50% 20 44% 48% 29% 27% 26% 23% 20% 0 5% 9% 9% 14% 15% 19% 18% 19% 20

27% 40 35% 47% 60

66% 69% 80 70% 74% 78%

100 Ads fair price # of ads on Ads on b’cast Pay attention Ads on b’cast Advertising in Sports radio I purchase from to pay for free b’cast sports sports radio to ads during sports radio b’cast sports provides info companies that content on radio takes generally fit b’cast sports relevant to radio is that helps advertise during b’cast sports away from well with radio needs and important info decide what sports radio radio enjoyment content interests source to buy programs

Copyright 2011. Not to be quoted without permission. Attitudes towards Downloaded and Streamed Sports Advertising Terrestrial Sports Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree 100

80 31% 22% 52% 72% 29% 25% 32% 64% 60% 63% 56% 60

40 33% 37% 28% 50% 27% 44% 24% 20 38% 30% 33% 25% 24% 0 21% 15% 7% 18% 8% 20% 22% 26% 24% 20

40 37% 43% 40% 60 59% 66% 80 71% 72% 76%

100 Ads hear while More inclined Ads hear Ads fair price to Advertising in Advertising in Pay attention to #of ads during listening to purchase from listening to pay for free stream/dwnld stream/dwnld ads hear during stream/dwnld stream/dwnld companies that stream/dwnld content via sports audio is sports audio stream/dwnld sports audio sports audio advertise during sports audio fit stream/dwnld important source provides info sports audio takes away from content relevant to stream/dwnld well with content sports audio of info about that helps decide enjoyment needs & interests sports audio products & what to buy services

Potential access to Audio – whether broadcast or Internet-based – is virtually universal.

The multiple platforms used by ESPN Audio add notably to the reach of ESPN terrestrial radio among Men 18-54, combining to extend daily reach by half.

Internet audio usage is mostly due to not having access to terrestrial radio, desire to hear a missed terrestrial radio program, or to listen again to a program that was on terrestrial radio.

Attitudes to advertising on sports audio is fairly positive for terrestrial radio, streaming, and downloading.

David Tice Dr. Tom Evans [email protected] [email protected]