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The New World of HD Radio Technology Joe D’Angelo, SVP of Broadcast Radio, Xperi Inc

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The New World of HD Radio Technology Joe D’Angelo, SVP of Broadcast Radio, Xperi Inc The New World of HD Radio Technology Joe D’Angelo, SVP of Broadcast Radio, Xperi Inc. The New World of HD RadioTM Technology The Digital Evolution of AM and FM Radio Rick Greenhut Director, Broadcast Business Development August 2018 © 2018 Xperi. Confidential. Do not distribute. WHO WE ARE DTS acquires iBiquity October 2015 Tessera acquires DTS XPERI, Inc. launched December 2016 April 2017 2 © 2018 Xperi. Confidential. Do not distribute. WHO WE ARE Headquarters San Jose, California, USA (Silicon Valley) Global 27 office locations worldwide Diverse Technology Portfolio IC packaging and interconnect, audio, imaging, HD & Connected Radio ~700 employees, 450+ engineers, 30 PhDs with a history of Innovative Talent developing transformational technologies IP Portfolio Robust patent portfolio with more than 4,000 issued patents Expansive Footprint Solutions licensed in more than 100 billion devices worldwide 3 © 2018 Xperi. Confidential. Do not distribute. RAB / BMI / MIW Rising Through the Ranks 2018 The New World of HD Radio Technology Joe D’Angelo, SVP of Broadcast Radio, Xperi Inc. WHO WE ARE Automotive London Troy Bangor Twickenham Galway Bellevue Brasov Mobile San Jose Limerick Seoul Los Gatos Calabasas Somerset Shanghai Tokyo Bucharest Semiconductor Encino Columbia Guangzhou Raleigh Technologies Santa Ana Shenzhen Taipei Poway Hong Kong Intellectual Mexico City Property Singapore Content Consumer Sydney Electronics 4 © 2018 Xperi. Confidential. Do not distribute. AM / FM RADIO – THE REACH MEDIUM 92% of Americans 12+ listen to the radio every week 5 RADAR 128, 2016; Persons 12+, Monday-Sunday 24-Hour Weekly Cume Estimates. © 2018 Xperi. Confidential. Do not distribute. HOW HD RADIO WORKS 1 Analog and digital signals sent separately 1 2 2 Audio combined prior to transmission 3 3 Composite signal transmitted by station 4 4 Multipath distortion only affects analog signal 5 Broadcast is compatible with both analog and 5 digital radios - only digital radios receive digital multicast channels 6 © 2018 Xperi. Confidential. Do not distribute. RAB / BMI / MIW Rising Through the Ranks 2018 The New World of HD Radio Technology Joe D’Angelo, SVP of Broadcast Radio, Xperi Inc. HOW HD RADIO WORKS HD Radio Technology uses In-Band, On Channel (IBOC) method Enables simultaneous transmission of analog and digital signals FCC FCC FM Mask FM Mask Analog receivers continue to function normally Existing Digital Digital FM Analog Additional digital channels Signal Signal “invisible” to analog-only receivers Signal Digital transmissions immune to -250 -200 -150 -100 -50 0 50 100 150 200 250 multipath distortion, adjacent Frequency kHz channel interference and static (Not to scale) 7 © 2018 Xperi. Confidential. Do not distribute. HD RADIO BY THE NUMBERS Virtually 100% coverage of the top 100 metros 95% of U.S. population live within reception distance of an HD Radio station Over 43 million HD Radio- equipped cars on the road 8 As of August 2018. © 2018 Xperi. Confidential. Do not distribute. HD RADIO BY THE NUMBERS 2% TOP 100 STATIONS NUMBER OF STATIONS ON-AIR IN THE TOP 10 MARKETS 2,206 HD Radio Stations Currently On The Air 260 of the 274 Nielsen Measured Metros Stations that use 197 of the Top 200 Nielsen Measured Metros HD Radio Technology 50 States Served (+ DC, Puerto Rico and Guam) Stations without 98% HD Radio Technology U.S. Population Served: 282 M (90% U.S. 6+) % OF US LISTENERS NUMBER OF MULTICAST CHANNELS 21% 2,008 Multicasts: Stations broadcasting in digital 1,461 HD2 Channels Stations broadcasting in analog 471 HD3 Channels 79% 76 HD4 Channels Fall 2017 Nielsen Audio Total Persons 12+ U.S. population served: 257 M (81% U.S. 6+) 9 As of August 2018. © 2018 Xperi. Confidential. Do not distribute. RAB / BMI / MIW Rising Through the Ranks 2018 The New World of HD Radio Technology Joe D’Angelo, SVP of Broadcast Radio, Xperi Inc. HD RADIO AND THE BATTLE FOR THE DASHBOARD All major auto brands offer factory-installed HD Radio Technology 253 247 212 216 198 Vehicle Brands (Chevy, Ford etc.) 166 Vehicle Models (Malibu, Focus etc.) 157 HD Radio Technology Standard 154 150 109 114 109 92 86 76 67 61 40 40 36 33 36 36 37 16 21 28 2010 2011 2012 2013 2014 2015 2016 2017 2018 Y-T-D 10 As of August 2018. © 2018 Xperi. Confidential. Do not distribute. HD RADIO AND THE BATTLE FOR THE DASHBOARD All major auto brands offer factory-installed HD Radio Technology HD RADIO TECHNOLOGY STANDARD FEATURE ON ALL VEHICLES HD RADIO TECHNOLOGY STANDARD FEATURE ON SOME VEHICLES HD RADIO TECHNOLOGY AVAILABLE AS PART OF OPTION PACKAGE 11 As of August 2018. © 2018 Xperi. Confidential. Do not distribute. HD RADIO AND THE BATTLE FOR THE DASHBOARD New cars delivered annually with factory-installed HD Radio (United States) 50.9% 48.9% 42.0% 37.6% 38.8% 35.3% 20.5% 2012 2013 2014 2015 2016 2017 2018 Y-T-D 12 Through June 2018. © 2018 Xperi. Confidential. Do not distribute. RAB / BMI / MIW Rising Through the Ranks 2018 The New World of HD Radio Technology Joe D’Angelo, SVP of Broadcast Radio, Xperi Inc. HD RADIO AND THE BATTLE FOR THE DASHBOARD Running total HD Radio receivers (includes home and aftermarket) (North America) 53.71 3.73 all numbers in millions 48.55 3.66 39.24 3.48 Consumer Electronics 30.33 Auto OEM & Aftermarket 2.90 22.75 2.60 15.40 2.00 9.95 1.80 8.15 13.40 20.15 27.43 35.76 44.88 49.98 2012 2013 2014 2015 2016 2017 2018 Y-T-D 13 Through June 2018. © 2018 Xperi. Confidential. Do not distribute. HD RADIO BY THE NUMBERS 79% of U.S. Radio listeners tune to stations broadcasting with HD Radio Technology each and every week Listening to Stations Broadcasting in Digital – 79% Listening to Stations Broadcasting in Analog – 21% 14 Nielsen Fall 2017 Total Person 12+ Total U.S. © 2018 Xperi. Confidential. Do not distribute. HD RADIO CONSUMER SATISFACTION Overall consumer satisfaction with the technology: Virtually all (98%) HD Radio Technology users surveyed are satisfied with their 55% Among HD Radio Technology experience Completely Satisfied HD Radio Technology 36% users, 98% 91% of listeners said they are Very Satisfied “completely” or “very” satisfied are satisfied 7% 55% indicated they are “completely Somewhat Satisfied satisfied” with the HD Radio Experience 1% Somewhat Dissatisfied Those under 40 years old and heavy users (listen to radio >15 hours a week) 1% have the highest satisfaction with HD Very Dissatisfied Radio Technology 15 Survey conducted June 2014 by RDA Group among 1,022 consumers who purchased or leased a new 2011 to 2015 model year vehicle. © 2018 Xperi. Confidential. Do not distribute. RAB / BMI / MIW Rising Through the Ranks 2018 The New World of HD Radio Technology Joe D’Angelo, SVP of Broadcast Radio, Xperi Inc. HD RADIO CONSUMER SATISFACTION Strong consumer advocacy of the technology: 97% of current HD Radio users 66% 97% of would recommend it to others Definitely would HD Radio 21% Technology 77% of non-HD Radio users users would 31% would recommend it to others recommend it Probably would 56% None of the current HD Radio users surveyed stated that they 3% “Definitely would not” recommend Probably would not 20% the technology to others HD Radio User Non-HD Radio User 0% Definitely would not 3% 16 Survey conducted June 2014 by RDA Group among 1,022 consumers who purchased or leased a new 2011 to 2015 model year vehicle. © 2018 Xperi. Confidential. Do not distribute. HD RADIO BY THE NUMBERS U.S. Stations Converted: 2,465 U.S. Stations On-Air / HD2-HD3-HD4 Digital Channels: 2,206 / 2,008 U.S. total HD Radio Audio Services (Digital Channels): 4,214 U.S. total HD Radio Artist Experience Stations / Channels: 874 / 1,621 U.S. Stations Delivering Digital Traffic Services (iHeart and BTC): ~700 U.S. TSL to digital audio in HD Radio-equipped Cars: 155.5 M hours/week U.S. total HD Radio-equipped Cars: 47.7 M / 17.4% 17 As of August 2018. © 2018 Xperi. Confidential. Do not distribute. HD RADIO BY THE NUMBERS Over 49.9 million HD Radio-equipped cars on the road in North America + Over 4.1 million consumer HD Radio home and portable receivers = Over 54 million HD Radio receivers in U.S., Canada & Mexico HD Radio U.S. auto penetration over 17% in the top 10 DMAs: #1 - New York: 30.4% #6 - Washington, DC: 20.3% #2 - Los Angeles: 27.9% #7 - Houston: 19.9% #3 - Chicago: 19.3% #8 - San Francisco: 24.8% #4 - Philadelphia: 19.9% #9 - Atlanta: 17.5% #5 - Dallas: 18.6% #10 - Boston: 24.2% 18 Through June 2018 © 2018 Xperi. Confidential. Do not distribute. RAB / BMI / MIW Rising Through the Ranks 2018 The New World of HD Radio Technology Joe D’Angelo, SVP of Broadcast Radio, Xperi Inc. HD RADIO BY THE NUMBERS Top 10 highest HD Radio auto penetration DMAs Geography Measured Total # HDEC* In DMA Total % HDEC* In DMA New York DMA 4,089,131 30.4% Miami DMA 1,110,789 29.8% Los Angeles DMA 3,537,042 27.9% West Palm Beach DMA 477,709 27.4% Burlington DMA 206,831 27.0% Detroit DMA 1,087,584 26.9% San Francisco DMA 1,369,282 24.8% Boston DMA 1,343,816 24.2% Juneau DMA 7,269 23.2% Baltimore DMA 506,071 22.9% 19 Through June 2018. * HDEC = HD Radio-Equipped Cars. © 2018 Xperi. Confidential. Do not distribute. HD RADIO BY THE NUMBERS Total HD Radio Artist Experience Stations / Channels: 874 / 1,621 Stations Delivering Digital Traffic Services (iHeart and BTC): ~700 AM stations simulcast on HD1 / HD2 / HD3 / HD4 channels: 234 2 AM stations simulcast on HD1 channel 163 AM stations simulcast on HD2 channel 64 AM stations simulcast on HD3 channel 5 AM stations simulcast on HD4 channel 20 As of August 2018.
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