Bob Mccann:A Brief History of the Future

A BRIEF HISTORY OF THE FUTURE The Outlook For Television

Average Daily Household Television Viewing

8:00 8:11 8:14 7:31 7:15 7:07 6:55 6:00 6:36 5:56 6:07 5:29 5:06 4:51 4:00 4:35

2:00

50 55 60 65 70 75 80 85 90 95 00 05 06 19 19 19 19 19 19 19 19 19 19 20 20 20

March 11, 2008 - Helsinki Page 2 Confidential & Proprietary Copyright © 2007 The Nielsen Company Finnish Television Consumption Remains Strong Household Viewing Hours Per Day Remains Constant At Approximately 2 Hours 50 minutes Despite Rising Internet Usage, Teenagers Watch Nearly 1,5 Hours Daily – Up 10% Vs 1997 2:09 1:55 1:55 1:40 1:35 1:26 1:23 1:23 1:12 0:57 0:43 0:28 0:14 0:00 1993 1997 2002 2007

Number of Channels Available in the Average U.S. Home 120 104.2 100 92.6 96.4 80 61.4 60 41.1 40 33.2 18.8 13.6 15.4 15.7 20 10.1 15 n/a n/a 0 1985 1990 1995 2000 2004 2005 2006 Source: Nielsen Media Research

Channels per # of channels household viewed

Highest Rated Television Shows (1985 – 2006) [Ratings/Share] 30 Dynasty [25/37] Roseanne 25 [23.4/35] Seinfeld [20.5/31] Millionaire American Idol 20 [18.6/29] CSI CSI [17.7/27] [15.9/24] [16.5/25] 15

0 1985 1990 1995 2000 2004 2005 2006

Source: Nielsen Media Research

Top 5 "Time-Shifted" Broadcast DVRs Lift Viewing of Popular TV Programs Network Programs by Viewers • Average increase among top shows 05/07/2007-05/13/2007 >10% Live Playback Lightest TV Viewers Watch More TV Once Viewing Viewing Gain Rank Program (000) (000) % They Have a DVR

1 Grey’s 18,116 2,727 15 • Affluent, better-educated professionals Anatomy (ABC) • 10.7 quarter hours vs.16.8 quarter hours with the DVR in their homes 2 American 23,393 2,685 11.2 Idol (FOX) More Than Half of All DVR Playback Occurs the Same Day the Show is Recorded 3 Lost 11,167 2,476 22 (ABC) Advertising Exposure Rises in DVR Homes 4 House 20,286 2,211 10.8 • Primetime broadcast commercials gain (FOX) 16% within first 27 hours of being recorded 5 Desperate 15,071 2,181 14.4 Housewives • Total increase reaches 22% after seven (ABC)

Source: Nielsen Media Research days

1 DVR 70%

More Than 21% of U.S. Homes Have a DVR DVR Households Are Typically:

Upper income

Higher education

Without children Younger Household Skew is Decreasing DVR Households with HOH 55+ Increasing 30% Have More Than One DVR

Persons 18-49, May 2007

M-F 6AM-10AM 4% M-F 10AM-1PM 5% M-F 1PM-4PM 6% M-F 4PM-6PM 5% M-F 6PM-8PM 9% Prime 36% M-Su 11PM-1AM 14% M-Su 1AM-6AM 7% S 8AM-1PM 2% S 1PM-8PM 4% Su 8AM-1PM 2% Su 1PM-7PM 4%

0% 10% 20% 30% 40%

P18-49 Playback Among DVR Households

100% 15% 16% 90% 16% 16% 16% 17% 18% 18% 18% 18% 19% 19% 19% 21% 21% 21% 21% 22% 22% 22% 23% 80% 70% 60% 50% 40% 30% 20% 10% 0% 6 6 6 6 6 6 7 7 7 7 7 0 0 '06 0 '06 0 06 '0 0 0 0 '07 07 '0 0 y ' t ' l ' y ' b ' ay pt ' n ' b ' ri ay pt '07 Jan '06 e ul Oc Ja e ul F Mar ' April '06 M June '0 J Aug Se Nov Dec '06 F Mar ' Ap M June '07 J Aug Se Live Minutes Playback

7-Day Program Name Originator Live Live+SD Live+7 Lift GREY'S ANATOMY-THU ABC 6.73 7.60 8.71 1.98 HOUSE FOX 6.61 7.43 8.36 1.74 HEROES NBC 4.35 5.19 6.01 1.66 OFFICE NBC 3.93 4.60 5.47 1.54 DESPERATE HOUSEWIVES ABC 6.38 7.17 7.81 1.44 SURVIVOR: CHINA CBS 3.85 4.56 5.02 1.17 CSI CBS 5.18 5.73 6.34 1.15 PRIVATE PRACTICE ABC 4.14 4.57 5.09 0.95 BIONIC WOMAN NBC 3.39 3.70 4.25 0.86 PRISON BREAK FOX 2.63 3.05 3.49 0.86

Ranked on Largest 7-day Playback Lift

7-Day Program Name Originator Live Live+SD Live+7 Lift STARGATE ATLANTIS SCI-FI 0.47 0.58 0.73 0.27 THE SOUP E! 0.47 0.54 0.69 0.22 MIAMI/LA INK TLC 0.73 0.81 0.94 0.21 DOCTOR WHO SCI-FI 0.45 0.55 0.66 0.21 ALWAYS SUNNY IN PHILADELPHIA FX 0.63 0.67 0.79 0.17 LINCOLN HEIGHTS ABC FAM 0.36 0.43 0.52 0.16 SIDE ORDER OF LIFE LIFETIME 0.33 0.39 0.48 0.15 HILLS, THE MTV 0.76 0.84 0.91 0.14 WWE ENTERTAINMENT USA 1.75 1.81 1.89 0.14 LITTLE PEOPLE, BIG WORLD TLC 0.73 0.77 0.85 0.12

Ranked on Largest 7-day Playback Lift

The Amount of Playback Continues to Grow, as More Homes Acquire a DVR The Amount of Playback in DVR Homes for Persons 18-49 Relative to Live is About 28% Except in the Summer Broadcast TV Accounts for Almost 70 Percent of Playback in Winter and Then Drops to Less Than 40% in Summer When Ad Supported Cable Accounts for the Most Playback by Source

70%

60% 64%

50% 54% 40% 46%

30% 36%

20%

10%

0% Heavy Light Women Men

Heavy Light

10% of Time Shifters Account 70% of Time Shifters Account for 38% of all Time Shifting for 29% of Time Shifting 26 Hours of Time Shifting per 3 Hours of Time Shifting per Week Week Mostly Women -- Few No Gender Difference Younger Men Single DVR Multiple DVRs Higher Income Middle Income More High Definition Sets Fewer High Definition Sets More Children Less Likely to Have Children

Persons 18-49 TV Usage per Week (hh:mm) Nov 2007 72 DVR Playback 56:11 Live

48 25:48 37:26 32:39 31:24 11:32 27:52 6:19 2:57 24

30:56 32:54 30:23 25:03 25:53 24:54 19:01

0 All P18-49 Non-DVR DVR Heavy Medium Light Non-Shifters HH HH Shifters Shifters Shifters

DVR Playback Distribution All DVR Heavy Medium Daypart Households Shifters Shifters Light Shifters M-F 6A-10A 4.4% 5.0% 4.5% 3.3% M-F 10A-4P 11.5% 12.8% 11.1% 9.7% M-Su 8P-11P 33.2% 27.8% 34.5% 39.9% M-Su 11P-1A 12.4% 11.8% 12.4% 12.5% M-Su 1A-6A 7.2% 9.1% 6.5% 4.4% Sat 1P-8P 5.0% 5.4% 4.9% 4.5%

Percentage of Percentage of 7 Day Live Viewing Playback Viewing Difference Sports 14% 7% -50% Feature Film 11% 7% -38% General Drama 9% 34% 268% Situation Comedy 6% 8% 21% News 6% 3% -50% Documentary/Music 10% 9% -13% Reality/Variety 4% 10% 135% Daytime Television 3% 9% 183% TOTAL 64% 86%

The Heaviest Time Shifters are Extremely Heavy Viewers – They View Twice as Much as Others A Small Number of Programs Account for Almost 25% of All Time Shifting Scripted Television Programs and General Dramas Are by Far The Most Time Shifted Sports and News Are Far Less Time Shifted

M-Su 6A-6A Commercial Index Live 3 Day Playback Live+3 Total US 94 50 92 Non-DVR HH 94 DVR HH 95 50 88 Heavy Shifters 96 52 80 Medium Shifters 95 48 83 Light Shifters 94 50 91

Persons 18-49 TV Usage per Week (hh:mm) Nov 2007 3 Day Playback 72 Commercial Index 52

48 25:48 Live +3 Playback Commercial Index 80 24 Live 30:23 Live 0 Commercial Index Heavy 96 Shifters

Persons 18-49 TV Usage per Week (hh:mm) Nov 2007 48 3 Day Playback Commercial Index 50

2:57 Live +3 24 Live Commercial Index 91 24:54 Live 0 Commercial Index Light 94 Shifters

March 11, 2008 - Helsinki Page 22 Confidential & Proprietary Copyright © 2007 The Nielsen Company Digital Video Is Changing The Landscape In the U.S., 81 Million People Watch Video Online at Home or Work In the U.S. Mobile Internet has 77 Million Subscribers In Finland, Penetration of Digital Has Reached Almost 100 % 100 88% 80 60 38% 40 20 0 0 2002 2005 2007

Beginning in 2003, Finnpanel Launched Digital Measurement in Finland In 2007 Finnpanel implemented UNITAM Technologies to measure Time-Shifted Viewing The Finnish Media Industry is Facing A More Complex Media Landscape Finnpanel Backed by The Nielsen Company is Here to Help!