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Exploring the New Media Landscape Presented By: Pierre Megherdichian │ Digital Sales Lead, NBCU Owned TV Stations COPYRIGHT © 2019 NBCUNIVERSAL MEDIA, LLC. ALL RIGHTS RESERVED. CONFIDENTIAL. OVERVIEW OF PRESENTATION 1 EVOLUTION THE DENVER 2 CONSUMER THE FUTURE OF TV IS 3 NOW NBCU & TELEMUNDO 4 DENVER OUT WITH THE OLD, IN WITH THE NEW EVOLUTION OF MOBILE DEVICES Motorola & Nokia, 2000’s Apple iPhone Tablets and Mobira BellSouth/IBM Ericson, Surface Devices Blackberry, Motorola Razr April 1973: Motorola was the first company to mass produce the first handheld mobile phone. These early mobile phones are often referred to as 0G mobile phones, or Zero Generation mobile phones. Most phones today rely on 4G mobile technology and 5G in the near future. COPYRIGHT © 2019 NBCUNIVERSAL MEDIA, LLC. ALL RIGHTS RESERVED. 4 CONFIDENTIAL. All concepts are subject to further development and approval by all parties. INTERNET HISTORY TIMELINE ARPANET ETHERNET + USENET DIAL-UP WWW SEARCH ENGINES The 1960’s saw Development of The First domain Development of Rise and Burst of the the development protocol for linking was registered in HTML + URL gave Dotcom bubble. of the first wide- multiple networks the 1980’s birth to the first Rise + proliferation area computer together iteration of the of Wi-Fi network World Wide Web. COPYRIGHT © 2019 NBCUNIVERSAL MEDIA, LLC. ALL RIGHTS RESERVED. 5 CONFIDENTIAL. All concepts are subject to further development and approval by all parties. U.S. BROADBAND INTERNET TREND NUMBER OF U.S. HOUSEHOLDS WITH BROADBAND INTERNET ACCESS 2000-2017 In the most recently reported period, almost 110 million U.S. households had fixed broadband internet access, up from close to 80 million in 2009 . Number of fixed broadband subscriptions in the United States from 2000 to 2017 (in millions) 120 109.84 106.07 102.19 96.03 97.81 100 92.51 88.32 84.52 79.99 77.13 80 71.7 60.24 60 51.16 37.35 (in (in millions) 40 27.74 19.88 20 12.79 Numberof U.S. households 7.07 with with broadband internet access 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Note: United States; 2000 to 2017 COPYRIGHT © 2019 NBCUNIVERSAL MEDIA, LLC. ALL RIGHTS RESERVED. Further information regarding this statistic can be found on page 8 . 6 CONFIDENTIAL. All concepts are subject to further development and approval by all parties. Source(s): ITU; Federal Communications Commission ID 183614 TV IS NOT DEAD, IT'S JUST DIFFERENT • Connected television is any device which is designed to support multimedia and connect to the Internet (internet-capable TV set, video game consoles such as Xbox, PlayStation, Blu-ray Disk Player or streaming video device). • Compared to traditional TV, which is primarily focused on media broadcasting, these new- generation devices are all about online interactive media, internet TV, over-the-top content and on- demand streaming media. These that can be accessed through software applications or web widgets. COPYRIGHT © 2019 NBCUNIVERSAL MEDIA, LLC. ALL RIGHTS RESERVED. 7 CONFIDENTIAL. All concepts are subject to further development and approval by all parties. A LOOK INTO THE DENVER DIGITAL CONSUMER DENVER MARKET HIGHLIGHTS 21% Denver DMA’s Hispanic population Denver Hispanic total consumer $19.1B spending in 2017 27% Consumer spending by Hispanics has grown 27% since 2012, vs only 20% for non-Hispanics • By 2022 consumer spending by Hispanics is expected to grow an additional 29%, vs 27% for non-Hispanics Source: 2019 Claritas & 2018 IHS Hispanic Market Monitor COPYRIGHT © 2019 NBCUNIVERSAL MEDIA, LLC. ALL RIGHTS RESERVED. 9 CONFIDENTIAL. All concepts are subject to further development and approval by all parties. (2012 vs 2017 vs 2022 Consumer Spending estimates) HISPANICS IN DENVER: DEVICE OWNERSHIP % OF HISPANIC A18+ IN DENVER: TYPES OF DEVICES OWNED 100.0% 91.6% 91.5% 93.5% 93.3% 92.4% 86.6% 90.0% 76.1% 80.0% 72.7% 73.0% 70.0% 62.6% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Denver, CO 2014 Denver, CO 2014 Denver, CO 2015 Denver, CO 2015 Denver, CO 2016 Denver, CO 2016 Denver, CO 2017 Denver, CO 2017 Denver, CO 2018 Denver, CO 2018 Release 1 Release 2 Release 1 *Update Release 2 Release 1 Release 2 Release 1 Release 2 Release 1 *Revised Release 2 09-21-2015* 06-8-2018* Desktop computer Laptop or notebook computer Smartphone (iPhone, Galaxy, etc.) Tablet (iPad, Galaxy Tab, Kindle Fire, etc.) *source: Nielsen, Scarborough Research, Market/Release: Denver, CO 2018 Release 2 Total (Aug 2017 - Aug 2018) – Adults 18+ AND Spanish/Hispanic Origin: Yes COPYRIGHT © 2019 NBCUNIVERSAL MEDIA, LLC. ALL RIGHTS RESERVED. 10 CONFIDENTIAL. All concepts are subject to further development and approval by all parties. HISPANICS IN DENVER: ONLINE BEHAVIOR % OF HISPANIC A18+ IN DENVER: INTERNET/APPS USAGE IN THE PAST MONTH 90% 83% 80% 67% 70% 64% 60% 57% 60% 50% 47% 50% 44% 44% 41% 39% 38% 38% 38% 37% 40% 30% 20% 10% 0% *source: Nielsen, Scarborough Research, Market/Release: Denver, CO 2018 Release 2 Total (Aug 2017 - Aug 2018) – Adults 18+ AND Spanish/Hispanic Origin: Yes COPYRIGHT © 2019 NBCUNIVERSAL MEDIA, LLC. ALL RIGHTS RESERVED. 11 CONFIDENTIAL. All concepts are subject to further development and approval by all parties. HISPANICS IN DENVER: E-COMMERCE SPENDING HISPANIC A18+ IN DENVER: AMOUNT SPENT ON PURCHASES VIA THE INTERNET YOY $500,000,000 $470,694,900 $437,655,900 $450,000,000 $400,000,000 $376,848,600 $345,825,600 $344,744,500 $350,000,000 $311,618,900 $318,359,600 $300,000,000 $273,427,100 $262,273,900 $265,715,200 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $- Denver, CO 2014 Denver, CO 2014 Denver, CO 2015 Denver, CO 2015 Denver, CO 2016 Denver, CO 2016 Denver, CO 2017 Denver, CO 2017 Denver, CO 2018 Denver, CO 2018 Release 1 Release 2 Release 1 *Update Release 2 Release 1 Release 2 Release 1 Release 2 Release 1 *Revised Release 2 09-21-2015* 06-8-2018* *source: Nielsen, Scarborough Research, Market/Release: Denver, CO 2018 Release 2 Total (Aug 2017 - Aug 2018) – Adults 18+ AND Spanish/Hispanic Origin: Yes COPYRIGHT © 2019 NBCUNIVERSAL MEDIA, LLC. ALL RIGHTS RESERVED. 12 CONFIDENTIAL. All concepts are subject to further development and approval by all parties. ADVANCED TV OVER THE TOP VIEWING DEFINED Over the top (OTT) refers to content provided via a high-speed Internet connection instead of delivered via traditional paid or broadcast Television. OTT VIEWING CAN TAKE PLACE ON SEVERAL PLATFORMS: CONNECTED TVs COMPUTERS TABLET SMARTPHONE GAME CONSOLE Smart TV or Laptop or Xbox & Enabled Device Desktop PlayStation COPYRIGHT © 2019 NBCUNIVERSAL MEDIA, LLC. ALL RIGHTS RESERVED. COPYRIGHT © 2019 NBCUNIVERSAL MEDIA, LLC. ALL RIGHTS RESERVED. 14 CONFIDENTIAL.CONFIDENTIAL. All concepts are subjectAll concepts to further dev areelopment subject and approval to further by all parties. development and approval by all parties. 14 FRAGMENTATION OF OTT VIEWERSHIP Premium video remains multi-screen, but as of Q4 2018, Connected TVs and STB VOD (the big screen) together comprised 58% of the market. AD VIEW COMPOSITION AND GROWTH, BY DEVICE, U.S. Q4 2014 — Q4 2018 COPYRIGHT © 2019 NBCUNIVERSAL MEDIA, LLC. ALL RIGHTS RESERVED. Source: Freewheel Growth & Convergence: The Evolution of Premium 15 CONFIDENTIAL. All concepts are subject to further development and approval by all parties. Video in 2018; Q4 2018 with year-end insights U.S. HISPANICS AND STREAMING VIDEO Items/services household currently has (HHLD): Streaming services visited/apps used Smart TV or Streaming Media Player (Apple TV, Roku, etc.) past 30 days Hispanic A18+ in Denver Hispanic A18+ in Denver 40.0% 36.3% 34.3% 400,000 35.0% 31.0% 30.9% 350,000 30.0% 300,000 25.0% 20.5% 21.3% 21.8% 250,000 20.0% 17.5% 200,000 15.0% 10.8% 10.7% 150,000 10.0% 100,000 5.0% 50,000 0.0% Denver, CO 2016 Denver, CO 2017 Denver, CO 2017 Denver, CO 2018 Denver, CO 2018 0 Release 2 Release 1 Release 2 Release 1 Release 2 YouTube Netflix Amazon Hulu HBO NOW *Revised 06-8- Prime Video 2018* Smart TV (Internet capable television) Comp % *source: Nielsen, Scarborough Research, Market/Release: Denver, CO 2018 Release 2 Total (Aug 2017 - Aug 2018) – Adults 18+ AND Spanish/Hispanic Origin: Yes Streaming media player (Apple TV, Roku, etc.) Comp % COPYRIGHT © 2019 NBCUNIVERSAL MEDIA, LLC. ALL RIGHTS RESERVED. 16 CONFIDENTIAL. All concepts are subject to further development and approval by all parties. FEP VS. LIVE VIEWING VS. CLIPS CONTENT FORMAT COMPOSITION (Q4 2018) NBCU OTS AD DELIVERY BY 29 % 61 % 10 % CONTENT FORMAT +51 % YOY +16 % YOY -14 % YOY Live: Pass-Thru from broadcast stream for all GENRE OF CONTENT (Q4 2018) programing except sports Full Episode Player (FEP): Dynamic Ad Insertion (DAI), mid-roll in between content Clips: Dynamic Ad Insertion (DAI), pre-roll before content Source: Freewheel Growth & Convergence: The Evolution of Premium Video in 2018; COPYRIGHT © 2019 NBCUNIVERSAL MEDIA, LLC. ALL RIGHTS RESERVED. 17 CONFIDENTIAL. All concepts are subject to further development and approval by all parties. Q4 2018 with year-end insights NBCU & TELEMUNDO DENVER THE NEW NBCU OTS PORTFOLIO THREE STATION GROUPS DELIVERING MULTIPLATFORM PROGRAMMING NBC OWNED TV STATIONS TELEMUNDO STATION GROUP NBC SPORTS REGIONAL NETWORKS Local News, Entertainment, Sports Local News, Entertainment, Sports Entertainment, Sports, and News Programming Covering the General Market Programming Covering the Hispanic Market Programming Covering Local Pro Sports ALONG WITH DISTRIBUTION PARTNERSHIPS ACROSS NBCU COPYRIGHT © 2019 NBCUNIVERSAL MEDIA, LLC. ALL RIGHTS RESERVED. 19 CONFIDENTIAL. All concepts are subject to further development and approval by all parties.