The U.S. Entertainment Consumer Report State of the Media Spring 2013

THE U.S. ENTERTAINMENT CONSUMER REPORT STATE OF THE MEDIA SPRING 2013

HOWARD APPELBAUM We are excited to bring you Nielsen’s first-ever Entertainment Consumer Report, which explores how we listen to, buy, play and watch content in the U.S. When it comes to President, Entertainment music, home video, books and games, consumers have more choices than ever thanks Nielsen to digital formats and connected devices. CD or digital album? Print or e-Book? DVD or Netflix? Video game console or smartphone? These questions led us to three distinct types of entertainment consumers based on their spending across activities ranging from reading to video games to watching movies at home. We found that people are buying and consuming all formats and those that spend the most on entertainment also divide their time across more activities.

This concept of “more” presents an interesting opportunity for content providers to engage consumers over longer periods of time, as people immerse themselves into the same content across multiple platforms. We saw this with Suzanne Collins’ The Hunger Games, which was the top selling music soundtrack, third most-purchased DVD title, and fourth best selling print book of 2012. This phenomenon now extends beyond the book-to-movie experience and was especially evident in how people use their game consoles. Although game play is still the top activity, we found that people are spending more of their overall console time streaming videos.

Report highlights include:

· High entertainment spenders are taking part in a larger variety of activities, giving them less time to spend on each. · Home entertainment consumers are embracing digital at a higher rate than ever before, as we see double-digit percentage increases in both one-time purchases and content subscriptions. · Even with a preference for physical books, print book buyers are still just as engaged as their e-book-buying counterparts online.

We hope you will enjoy these Nielsen insights on the entertainment fans—who they are, how they’re engaging and how to best reach them.

1 The U.S. Entertainment Consumer Report WELCOME CONTENTS

The High Entertainment Spender...... 3-4

Music ...... 5-14

Home Video...... 15-18

Games...... 19-22

Books ...... 23-27

Sources...... 28-29

The high entertainment spender is the ultimate home entertainment consumer, representing a third of the U.S. population and accounting for over 70 percent of spending across entertainment categories TV, music, books, home video, games, and mobile. High entertainment spenders are more likely than moderate and low entertainment spenders to be female, ethnically diverse and have young children in the household.

HIGH MODERATE LOW ENTERTAINMENT ENTERTAINMENT ENTERTAINMENT SPENDERS SPENDERS SPENDERS

Average Household Income $66K $51K $52K Female 53% 50% 46% Teens 5% 8% 19% Hispanic 19% 11% 10% Other 26% 16% 15% (neither Caucasian nor African-American)

Kids under age 6 in 24% 17% 17% the Household

3 The U.S. Entertainment Consumer Report HIGH SPENDERS ENGAGE IN MORE ACTIVITIES BUT SPEND LESS TIME ON EACH WHO IS THE High Entertainment Moderate Entertainment Low Entertainment Spenders Spenders Spenders HIGH ENTERTAINMENT HIGH SPENDERS’ SHARE OF TOTAL HOURS SPENT IN A WEEK SPENDER? ENTERTAINMENT Playing video 5.9 DOLLARS BY games 7.6 CATEGORY 8.9 4.3 Listening to music 5.1 79% VIDEO-ON-DEMAND 6.1 OR PAY-PER-VIEW

Reading magazines, 3.8 books or newspapers 5.0 in print form 76% 5.3 VIDEO GAMES

Watching DVD/ 3.5 4.7 Blu-rays 78% 4.2 MUSIC

Attending live 3.4 events 3.5 70% 2.9 SATELLITE RADIO SUBSCRIPTION Reading magazines, books, newspapers 3.4 or blogs on a device 4.8 or online 4.4 71% FEATURE FILMS ON DVD, BLU-RAY OR VIDEO BUYING OR Watching 3.3 RENTING video-on-demand 3.6 3.5 70% 2.1 MAGAZINE, BOOK OR Watching mobile NEWSPAPER PURCHASES video via internet 2.5 OR SUBSCRIPTION FEES 3.4

It was all about digital in 2012, as consumers purchased 118 million digital albums in 2012, up 14 percent from the prior year. They also purchased an impressive 1.3 billion digital tracks—the most digital tracks ever purchased in a single year—up 5 percent from 2011.

While digital ruled overall music sales, resurgent format vinyl saw the largest year-over- year sales increase, as consumer purchases in 2012 climbed 17.7 percent. This marks the seventh straight year of growth for the vinyl format.

MUSIC SALES 2012 2011 % CHANGE

OVERALL 1.66B 1.61B 3.10%

PHYSICAL: CDS 193.38M 223.51M -13.48%

PHYSICAL: LPS 4.55M 3.87M 17.66%

DIGITAL: ALBUMS 117.68M 103.11M 14.13%

DIGITAL: TRACKS 1.34B 1.27B 5.09%

5 The U.S. Entertainment Consumer Report WHO’S BUYING MUSIC? Compared to the average adult online, digital music buyers are 45 percent more likely to be aged 25-34, while those “IT’S ALL ABOUT who purchase physical CDs are most likely to be between 35 and 44 years old. Internet users who purchase digital THE BENJAMINS” music are also more likely than the average adult online to be Asian (8% more likely) and Hispanic (5% more likely). U.S. MUSIC BUYERS (AMONG ADULTS ONLINE, INDEX V. U.S. INTERNET USERS 18+)

GENDER AGE RACE/ETHNICITY

Female 98 18-24 102 African-American 111 94 25-34 91 Asian Hispanic Male 111 35-44 95 101 White PHYSICAL CD 88 109 45-54 BUYERS 106 55-64 72 65+

Female 131 18-24 100 African-American 106 145 25-34 108 Asian Hispanic Male 142 35-44 105 99 White DIGITAL MUSIC 93 90 45-54 BUYERS 56 55-64 24 65+

Read as: Adult internet users who purchased physical CDs are 11 percent more likely than the average U.S. adult online to be female.

STREAMING* (2012)

37.0B 24.0B40.5M 6.1B 6.9B OVERALL SONGS SONGS VIDEO ON-DEMAND PROGRAMMED ON-DEMAND (CHOSEN BY (CHOSEN BY THE LISTENER) THE SERVICE)

18-24 YEAR OLDS ARE DRIVING MUSIC CONSUMPTION IN THE U.S. AND SPEND MORE THAN 6 HOURS PER WEEK LISTENING TO MUSIC – ABOUT A FULL HOUR MORE THAN ADULTS 25+

AIRPLAY % CHANGE 2012 2011 RADIO PLAYS (TERRESTRIAL AND SATELLITE) 161.0M 158.0M .02%

TV VIDEO PLAYS (MUSIC VIDEO CHANNELS) .70M .75M -.07%

* Includes music streams from: Akoo, Guvera, MediaNet, Rhapsody, Rdio, Slacker, Spotify, Thumbplay, VEVO, Yahoo!, and others. YouTube data was integrated into Nielsen’s music streaming measurement in January 2013.

7 The U.S. Entertainment Consumer Report WHO ARE ON-DEMAND MUSIC STREAMERS?

THEY’RE SOCIAL AND SPEND BIG Compared to the average U.S. Internet user, on-demand music streamers are:

96% 75% 91% 90% 50% MORE MORE MORE MORE MORE LIKELY LIKELY LIKELY LIKELY LIKELY

to follow a to follow a to post links, to be heavy to be heavy celebrity on a brand on a articles, videos spenders on spenders on social network social network or web sites on music event tickets a social network

% OF ON-DEMAND MUSIC STREAMERS INDEX V. ONLINE 18+

FEMALE 50.1 93 18-24 19.0 163 MALE 49.9 108 25-34 23.8 129 35-44 20.8 108 AFRICAN-AMERICAN 12.1 105 45-54 19.2 96 ASIAN 4.2 130 55-64 10.9 66 HISPANIC 13.7 110 65+ 6.3 44 WHITE 75.0 97

Read as: Nineteen percent of on-demand music streamers are aged 18-24, 63 percent more likely than the average adult online to be this age.

OF CONSUMERS ARE LIKELY TO PURCHASE NEW MUSIC 29% AFTER HEARING IT THROUGH A STREAMING SERVICE

HOW WE’RE USING SOCIAL MEDIA TO INTERACT WITH MUSIC

Social media has increasingly become an important platform for music artists and labels to share and promote their music to the masses. In the U.S., consumers are highly engaged with music content on social sites such as Facebook and Twitter. A Nielsen survey of music consumers found that more than half (55%) read Facebook posts from artists and bands on their mobile device and 26 percent keep up with those artists’ tweets.

9 The U.S. Entertainment Consumer Report SOCIAL ENGAGEMENT WITH MUSIC ON MOBILE % of consumers who use Facebook and Twitter to follow artists/bands

55% Read Facebook posts from artists/bands 53% “Like” Facebook posts from artists/bands 30% Comment on Facebook posts from artist/bands 28% Click on posts from artist/bands from Facebook timeline 26% Read tweets from artist/bands 15% Share posts from artist/bands 14% Retweet artist/bands

Copyright © 2013 The Nielsen Company 10 PROMOTIONAL PERSUASION MUSIC FANS & BRANDS A recent Nielsen study found that music fans – who make up 40 percent of music consumers but account for 75 percent of spending – not only have love for their favorite artist or band, but also appreciate the brands who sponsor an artist event or concert. MUSIC SHARE OF CONSUMERS MUSIC BY SEGMENT SPEND AFICIONADO FANS: Loves music, very engaged, wants content, understands the music industry, very social, 14% attends live events 13% 34% DIGITAL FANS: Engaged, listens through Facebook, shares playlists, smartphones are their entertainment 13% hub, influenced by reviews 27% BIG BOX FANS: Claims to have a very intense relationship with music, heavily influence by deals, likes music heard in movies, likes brand endorsements 60% 14% 26%

OTHER MUSIC CONSUMERS 25% 18% BONDING WITH BRANDS % who will try a product if they sponsor an event for an artist they like 13% 23% OF AFICIONADO FANS 43% 30% OF DIGITAL FANS OF FANS NOTICE WHEN 10% A BRAND/PRODUCT SPONSORS AN ARTIST/BAND 28% OF BIG BOX FANS

11 The U.S. Entertainment Consumer Report HOW WE ENGAGE WITH SPONSORSHIPS

% of consumers who will try a product if they sponsor an event for an artist they like

TEENS 31%

AGES 18-24 BRAND ENDORSEMENTS

24% AN ENDORSEMENT CAMPAIGN WITH A MUSIC ARTIST HAS AGES 25-34 BEEN SHOWN TO INCREASE BUY RATES 26% OF A PRODUCT BY AS MUCH AS 28% AMONG THE ARTIST’S FANS 18% AGES 35-44 AN ENDORSEMENT 18% CAMPAIGN BY AN ARTIST HAS BEEN AGES 45-54 SHOWN TO INCREASE A BRAND’S MARKET 13% SHARE BY AS MUCH AS 2.4 POINTS AMONG AGES 55+ THE ARTIST’S FANS 10%

GOTYE FEAT. KIMBRA’S “SOMEBODY THAT I AIRPLAY USED TO KNOW” WAS THE MOST HEARD 74.6M SONG IN 9 EUROPEAN RADIO SPINS 2012 (EUROPE) COUNTRIES IN 2012.

DIGITAL TRACKS 39% OF DIGITAL TRACK SALES AND RADIO AIRPLAY IN 492.4M THE U.K. IN 2012 ARE FROM DIGITAL TRACK SALES 2012 AMERICAN ARTISTS (EUROPE AND OCEANIA)

13 The U.S. Entertainment Consumer Report 2012 DIGITAL TRACK SALES

% CHANGE FROM 2011

Austria 6.6M 17.3% Belgium 8.8M -0.3% Denmark 8.7M -2.3% Finland 1.6M 7% France 40.2M 6.4% Germany 73.3M 27.6% Greece 1.1M 12.5% Ireland 6.7M 9.1% Italy 19.5M 24.7% Luxembourg 1.0M 2.4% Netherlands 8.8M 22.3% Norway 7.4M -1.1% Portugal 1.5M 25.2%

Spain 8.5M 34.8%

Sweden 3.8M -0.4%

Switzerland 19.5M 19.4% UK 173.8M 8.3% Australia 91.5M 23.5%

New Zealand 10.0M 29.7%

ENTERTAINMENT:

People no longer have to wait weeks or even months to catch up on that missed movie or TV series. Now consumers have a plethora of home entertainment options at their fingertips and can time-shift, stream, rent and purchase videos—all from the comfort of their couch.

People do still purchase and rent physical DVDs and Blu-ray Discs, but streaming services such as Netflix and Hulu continue to gain traction as a convenient alternative, accessible through a variety of devices.

THE DEVICES WE USE TO WATCH VIDEO AT HOME Device penetration among U.S. TV Households (Sept 2012)

44.1% 83.6% DVR 45.1% DVD PLAYER/ VIDEO GAME BLU-RAY PLAYER CONSOLE

15 The U.S. Entertainment Consumer Report HOME SWEET HOME WHO’S PURCHASING ENTERTAINMENT AND WATCHING? U.S. DVD AND STREAMING SERVICE BUYERS (AMONG ADULTS ONLINE, INDEX V. U.S. INTERNET USERS 18+ )

GENDER AGE RACE/ETHNICITY

Female 97 18-24 97 African-American 108 123 25-34 108 Asian Male 121 35-44 99 Hispanic MOVIE/TV DVD 91 106 45-54 100 White BUYERS 83 55-64 54 65+

Female 87 18-24 86 African-American 89 132 25-34 173 Asian Male 128 35-44 128 Hispanic STREAMING 90 45-54 White SERVICE 112 98 BUYERS 101 55-64 42 65+

Read as: Adult internet users who purchased movie or TV DVDs are 8 percent more likely than the average U.S. adult online to be female.

(# OF PAID TRANSACTIONS IN THE LAST 6 MONTHS, DEC 2012 V. DEC 2011)

MOVIES TV SHOWS

0.6 32% Streamed from the Internet 29% 0.4 for a 1-time fee 29% Streamed from the internet through 6.7 12% a subscription service like Netflix 24% 5.9

Ordered through premium 7% 0.9 1.4 -8% video-on-demand (VOD)

-1% Ordered through VOD 1.3 for a 1-time fee 21% 0.5

4.4 -1% DVDs bought 5% 2.0

2.4 14% Blu-ray Discs bought 25% 1.1

17 The U.S. Entertainment Consumer Report OUR FAVORITE MOVIES IN 2012 HOW WE WATCH TOP DVD & BLU-RAY DISC GENRES OF 2012 BY SALES UNITS ACTION/ADVENTURE 24% VIDEO AT HOME 2012-126.2M I 2011-102.1M

TOP DVD & BLU-RAY DISC TITLES OF 2012 BY SALES UNITS 7.1M COMEDY -12% THE AVENGERS 2012-103.7M I 2011-118.5M 6.4M THE TWILIGHT SAGA: BREAKING DAWN - PART 1

FAMILY -11% 2012-97.3M I 2011-109.7M 6.3M THE HUNGER GAMES

Today’s game console is truly a super hero. With the ability to play games, stream video, connect to the internet and more, it’s no longer a device for just the avid gamer and allows users to master multiple levels of entertainment.

19 The U.S. Entertainment Consumer Report THE CONSOLES WE USE TO PLAY PLAYERSHIP ON 7TH GENERATION SYSTEMS (2012)

Xbox 360: Xbox 360: Kinect Wii Kinect Owners Non-Owners PS3

MALES 13+ 62% 85% 75% 65% FEMALES 13+ 59% 56% 33% 29% 13-17 66% 77% 75% 61% 18-24 55% 77% 70% 65% 25-34 67% 77% 59% 49% 35-44 58% 65% 43% 31% 45+ 55% 45% 36% 29%

Read as: During 2012, 62% of males aged 13+ who report living in a household that owns a Wii play it.

INTEREST IN 8TH GENERATIONTablet other CONSOLES Android iPad than iPad iPod Touch iPhone Phone • In October 2012, about 40 percent63% of U.S. households52% that owned45% an Xbox 360 or PlayStation56% 60% MALES3 said they 13+ “definitely” or “probably” will buy the successor to their respective console when it FEMALESbecomes available 13+ 56% 38% 44% 50% 51%

• 13-17 Over one-quarter (27%) of 60%Wii-owning households49% said they “definitely”63% or “probably”48% will buy 49% 18-24the recently-released Wii43% U 37% 57% 63% 52% 25-34 61% 44% 36% 51% 63% 35-44 64% 54% 27% 61% 57% 45+ 63% 37% 36% 39% 54%

Copyright © 2013 The Nielsen Company 20 TO PLAY OR TO STREAM? In 2012, game play accounted for 10.3 percent of gamers’ overall entertainment time, up from 9.1 percent in 2011. On consoles, gaming accounted for the majority of time among Xbox 360 and Wii users, while the use of streaming services and video-on-demand (VOD) made up a larger portion of time among PS3 users.

For the third year in a row, 7th gen users spent more of their overall console watching video through streaming services and VOD. These services accounted for 22 percent of users’ console time in 2012, up from 19 percent a year ago.

HOW WE’RE SPENDING TIME WITH OUR GAME CONSOLES (SHARE OF CONSOLE TIME AMONG USERS AGED 13+, 2012 V. 2011)

XBOX 360 PLAYSTATION 3 WII

PLAYING VIDEO 33% 28% 40% GAMES OFFLINE 34% 38% 55%

PLAYING VIDEO 33% 18% 11% GAMES ONLINE 33% 16% 8%

WATCHING VIDEO-ON- 13% 24% 32% DEMAND/STREAMING SERVICES 14% 15% 33%

WATCHING 9% 18% N/A DVDs/BLU-RAYS 9% 22% N/A

WATCHING 7% 4% DOWNLOADED N/A MOVIES, TV SHOWS 5% 5% N/A

ALL OTHER (LISTENING 6% 8% 17% TO MUSIC, USING THE INTERNET, ETC.) 5% 4% 4%

2012 2011

21 The U.S. Entertainment Consumer Report Xbox 360: Xbox 360: Kinect Wii Kinect Owners Non-Owners PS3

MALES 13+ 62% 85% 75% 65% FEMALES 13+ 59% 56% 33% 29% 13-17 66% 77% 75% 61% 18-24 55% 77% 70% 65% 25-34 67% 77% 59% 49% 35-44GAMING58% 65%ON 43%THE 31%GO The rapid adoption of mobile devices and tablets can expand game play beyond the traditional 45+console and PC realms.55% 45% 36% 29% HOW WE’RE SPENDING TIME WITH OUR GAME CONSOLES HOW WE’RE PLAYING GAMES ON MOBILE AND PORTABLE DEVICES (2012)

Tablet other Android iPad than iPad iPod Touch iPhone Phone MALES 13+ 63% 52% 45% 56% 60% FEMALES 13+ 56% 38% 44% 50% 51% 13-17 60% 49% 63% 48% 49% 18-24 43% 37% 57% 63% 52% 25-34 61% 44% 36% 51% 63% 35-44 64% 54% 27% 61% 57% 45+ 63% 37% 36% 39% 54%

Read as: During 2012, 63% of males aged 13+ who report living in a household that owns an iPad play games on it.

Copyright © 2013 The Nielsen Company 22 WHO’S PURCHASING BOOKS? Consumers are embracing digital formats across all categories of entertainment, and the divide between digital and physical users seems vast. But when it comes to books, print and eBook buyers aren’t that different at all. A Nielsen analysis of adult internet users in the U.S. found that book buyers—regardless of format— are more likely than the average adult online to be female and between 55-64 years old.

When not engrossed in their latest books, the reading continues online. Both physical and e-book buyers are more likely than the average adult internet user to read product reviews and technology news.

23 The U.S. Entertainment Consumer Report U.S. PRINT AND E-BOOK BUYERS

(AMONG ADULTS ONLINE, INDEX V. U.S. INTERNET USERS 18+)

GENDER AGE RACE/ETHNICITY

Female 85 18-24 95 African-American 118 88 25-34 100 Asian Hispanic Male 103 35-44 87 102 White PRINT BOOK 79 96 45-54 BUYERS 112 55-64 116 65+

Female 69 18-24 95 African-American 121 101 25-34 89 Asian Hispanic Male 111 35-44 78 102 White E-BOOK 76 106 45-54 BUYERS 111 55-64 92 65+

Read as: Adult internet users who purchased print books are 18 percent more likely than the average U.S. adult online to be female.

FIFTY SHADES 6.3M OF GREY

FIFTY SHADES 3.8M DARKER

FIFTY SHADES 3.4M FREED

THE HUNGER 2.8M GAMES*

CATCHING 2.6M FIRE*

2.3M MOCKINGJAY*

THE THIRD 1.4M WHEEL 0.9M NO EASY DAY

KILLING KENNEDY: 0.9M THE END OF CAMELOT

FIFTY SHADES TRILOGY: 0.8M FIFTY SHADES OF GREY

*These editions were first published prior to 2011

7 OF THE TOP 10 BEST-SELLING TITLES OF 2012 WERE EITHER E.L. JAMES’ FIFTY SHADES OF GREY OR SUZANNE COLLINS’ HUNGER GAMES TITLES

25 The U.S. Entertainment Consumer Report OUR FAVORITE WHAT ELSE ARE BOOKS OF 2012 BOOK BUYERS DOING ONLINE? ONLINE ACTIVITIES AMONG HOW MOMS BOOK BUYERS ENGAGE WITH (AMONG ADULTS ONLINE, INDEX V. U.S. INTERNET USERS 18+) BOOKS Compared to the average adult internet user in the U.S., moms online are:

more likely to shop for 20% books online19% ONLINE ACTIVITIES PRINT BOOK E-BOOK 11% AMONG BOOK BUYERS BUYER BUYER

BUILD OR UPDATE more likely to PERSONAL BLOG 123 151 have purchased 20% 19% an E-Reader DOWNLOAD ONLINE 3% 11% COUPONS 122 143

more likely to READ TECHNOLOGY purchase magazine NEWS 127 20%157 19% 3% 11% or newspaper 20% subscriptions19% READ OR POST 11% PRODUCT REVIEWS 135 176

HAVE ONE OR MORE 3% more likely to be SOCIAL NETWORKING 104 111 heavy spenders PROFILES 3% on books

Read as: Adult internet users who purchased print books are 23 percent more likely than the average U.S. adult online to build or update a personal blog.

D 11.5M

A 202.2M 91.1M B C 79.5M

F 15.6M

H 9.7M E 56.6M

G 6.0M

A UK E AUSTRALIA B SPAIN F INDIA C ITALY G NEW ZEALAND D IRELAND H SOUTH AFRICA

* Including U.S.

27 The U.S. Entertainment Consumer Report SOURCES PAGES 3-4 Who is the High Entertainment Spender?; High Spenders Engage in More Activities but Spend Less Time On Each BOOK SALES TOP Nielsen Music 360 Report 2012. * PAGE 5 “It’s All About the Benjamins” ONE BILLION IN 2012 Nielsen SoundScan. 2012. Point-of-sale transactions for physical and digital music. PAGE 6 Who’s Buying Music? Nielsen @Plan, Release Q3 2012. Among U.S. adults online, index v. Internet Users Aged 18+. Physical music buyers: purchased CDs/Tapes in-person, online, or by phone/mail. Digital music buyers: online purchases only.

PAGE 7 Streaming , Airplay Nielsen Broadcast Data Systems (BDS). 2012. Airplay includes: U.S. Terrestrial, Satellite, and TV Video.

Teens Driving Digital Consumption Nielsen Music 360 Report 2012.

PAGE 8 They’re Social and Spend Big Nielsen @Plan, Release Q4 2012. On-demand music streamers: Listened to streaming music/audio on-demand in the last 30 days.

D 11.5M Consumers Likely to Purchase New Music After Streaming Nielsen Music 360 Report 2012. A 202.2M PAGE 10 Social Engagement With Music on Mobile 91.1M B C 79.5M Nielsen Music 360 Report 2012.

PAGE 11 Promotional Persuasion F 15.6M Nielsen and SXSW Present: The Buyer and the Beats 2013. Bonding with Brands Nielsen and SXSW Present: The Buyer and the Beats 2013. Respondents agree strongly or agree somewhat with the statement “I will usually try a brand/product if they sponsor an event/concert for an artist/band that I like”.

PAGE 12 How We Engage With Sponsorships Nielsen Music 360 Report 2012. Respondents agree strongly or agree somewhat with the statement “I will usually try a brand/product if they sponsor an event/concert for an artist/band that I like”. H 9.7M E 56.6M Brand Endorsements Nielsen Homescan. 2011. Custom analysis. G 6.0M PAGE 13 Radio Play 2012 Nielsen Music International. 2012. Plays aggregated from 1,000 music radio and TV radio stations in Austria, Belgium, Denmark, Finland, France, Germany, the Netherlands, Ireland, Italy, Norway, Poland, Portugal, Spain, Switzerland, Sweden, Turkey and the U.K.

A UK E AUSTRALIA Digital Track Sales 2012 Nielsen SoundScan International. 2012. Digital track sales from digital services and mobile operators reporting weekly throughout B SPAIN F INDIA Europe and Oceania. Does not include Amazon data. C G ITALY NEW ZEALAND Most Heard Song D IRELAND H SOUTH AFRICA Countries include: Austria, Denmark, France, Germany, Ireland, Poland, Portugal, Spain and Switzerland. American Artists % of songs by artist nationality. Base is Top 1000 radio airplay songs and Top 1000 digitally downloaded tracks in the U.K.

PAGE 15 Home Sweet Home Entertainment Nielsen Media-Related Universe Estimates, September 2012.

PAGE 16 Who’s Purchasing and Watching? Nielsen @Plan, Release Q3 2012. Among U.S. adults online, index v. internet users aged 18+. Movie DVD buyers: purchased movie DVDs/tapes anywhere in the last 6 months. Streaming Service buyers: any paid audio or video subscription service.

PAGE 17 How We Watch Video at Home Nielsen Home Entertainment Tracker, December 2012 v. December 2011. Paid transactions in the last 6 months among U.S. home entertainment users aged 13-54.

PAGE 18 Our Favorite Movies in 2012 Nielsen VideoScan. 2012. Point-of-sale transactions for VHS, DVDs, HD DVDs, and Blu-ray Discs.

PAGE 19-22 The Consoles We Use to Play; To Play or to Stream?; Gaming on the Go Nielsen U.S. Gaming: A 360° View 2012.

PAGE 24 U.S. Print and E-book Buyers Nielsen @Plan, Release Q3 2012. Among U.S. adults online, index v. internet users aged 18+. Physical Book buyers: purchased physical book anywhere in the last 6 months. E-Book buyers: purchased e-book online in the last 6 months.

PAGE 25 Our Favorite Books of 2012 Nielsen BookScan. 2012. Point-of-sale transactions for physical print books.

PAGE 26 What Else Are Book Buyers Doing Online Nielsen @Plan, Release Q3 2012. Online activities among U.S. adults online, index v. internet users aged 18+. Physical Book buyers: purchased physical book anywhere in the last 6 months. E-Book buyers: purchased e-book online in the last 6 months.

PAGE 27 Book Sales Top One Billion* in 2012 Nielsen BookScan. 2012. Point-of-sale transactions for physical print books.

NIELSEN MUSIC 360° REPORT 2012. Data for this study was collected May 15-21, 2012 via 3,000 consumer online surveys using Nielsen’s proprietary high-quality ePanel in the U.S.

NIELSEN AND SXSW PRESENTS: THE BUYER AND THE BEATS 2013. Data for this study was collected January 23, 2013 and February 12, 2013 via 4,000 music listeners, South By Southwest Festival attendees, and Pledge Music (direct-to-fan crowdsourcing website) users via consumer online surveys using Nielsen’s proprietary, high-quality ePanel in the U.S.

NIELSEN U.S. GAMING: A 360° VIEW 2012. Annual survey of 2,500+ general population consumers (including game console users)conducted in October 2011 and October 2012 via consumer online surveys using Nielsen’s proprietary, high-quality ePanel in the U.S.

29 The U.S. Entertainment Consumer Report SOURCES

ABOUT NIELSEN

Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquar- ters in New York, USA and Diemen, the Netherlands.

For more information, visit www.nielsen.com.

Copyright © 2013 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ ACN Trademarks, L.L.C. Other product and service names are trademarks or registered trademarks of their respective companies.

For more information about Nielsen’s Entertainment insights, email [email protected] or follow us on Twitter at @nielsen_ent.