Blurring the Landscape: How TV is Merging Digital

and Traditional Media

June 17th
Created by Tania Yuki
Opener

© comScore, Inc. Proprietary and Confidential. 2

Agenda

– Meet the new TV audience

 Changing the angle of vision:

Cross platform as connected channels, and behaviors
 Window into the future

© comScore, Inc. Proprietary and Confidential. 3

 60-70% of ALL audiences watch commercials, whether they are
watching on TV or Online

120%

100% 5%
6% 9% 9%
16% 22% 14%
80% 23%

60% 40% 37%

35%
39%
40%
18%
31% 29%
20% 23%
21%
7% 6% 11%
0%
TV Only [A] Cross Platform Online Only [A] Cross Platform

Never watch commercials Rarely watch commercials Sometimes watch commercials

Most of the time watch commercials All the time watch commercials
Base sizes:
Q8. Which one of the following best describes how often you watch commercials when viewing original series on TV? Total=1717
Q15. Which one of the following best describes how often you watch commercials when viewing original TV shows ONLINE? TV Only=1182
Both TV/Online=535
Q18. Would you prefer to have a ticker on top of your computer screen that would show you the duration of the commercial break?
Total=640
© comScore, Inc. Proprietary and Confidential. 4 Online Only=106
Both TV/Online=534
We are leaving money on the table when it comes to original TV
programming on the web

Desired Length of Commercials Online

100.0

80.0

60.0

40.0

20.0

0.0
1 min 2 min 3 min 4 min 5 min 6 min 7 min 8 min 9 min 10 min 11 min 12 min 13 min 14 min 15 min

Negligible Minimal Long Enough Too Long

© comScore, Inc. Proprietary and Confidential. 5 Base sizes:

Total=640
How the new TV audience tunes in: by platform

Online-Only
Cross Platform
0 Viewers
TV Viewers
29%0% 6%

Cross Platform
Viewers
29%

Online-Only TV-Only Viewers

TV Viewers 65%
6%

Base sizes:
Total=1823
TV Only=1183
Online Only=105
Both TV/Online=535
‘The future of original TV Viewing and the new digital consumer’
© comScore, Inc. Proprietary and Confidential. 6 was a survey conducted by comScore in December 2009
Platform viewing by age:

TV + Online Online
18-24 TV Only 45%
42% 13%

25-34 53% 38% 9%

35-49 68% 28% 4%

© comScore, Inc. Proprietary and Confidential. 7

 This is not a platform war:

Q24. For each type of show, please select whether you prefer to see it Online or on TV.

© comScore, Inc. Proprietary and Confidential. 8 Base sizes:

Both TV/Online=535
 The motivations for Cross Platform Viewing:
Freedom in space and time vs timeliness and quality

Q23. We would now like to compare the viewing of original shows Online and on TV. For each attribute below, please select whether Online or TV is better.

© comScore, Inc. Proprietary and Confidential. 9 Base sizes:

Both TV/Online=535
TV Only viewers compared with Cross Platform Viewers

40%

35%
35%
32%
30%
30%
27%

25% 24%

20% 19%

15%
13%
11%
10% 9%

5%
3%

0%
18-24 25-34 35-49 50-64 65+

TV only Cross Platform

© comScore, Inc. Proprietary and Confidential. 10

Missed episodes and convenience – not ad avoidance – were the main reasons
for watching TV online among Cross Platform viewers

Reasons to Watch Online

Missed episode on TV 71%

A

Convenience 57%

Less ads 38%

Both TV/Online [B]

Like to see past episodes 25%

Prefer the online experience 13%

Don’t subscribe to cable/don't have a TV 7%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Q12. What are the reasons why you like to watch Original TV shows online? Check all that apply.
Base sizes:
Total=640
© comScore, Inc. Proprietary and Confidential. 11 Online Only=105
Both TV/Online=535
How the audiences for original TV programming tune in:
live vs time shifted

After 7 days
16%

Live Only 45%

Within 7 days
19%

Within 3 days
20%

© comScore, Inc. Proprietary and Confidential. 12 Which one of the following best describes how you typically watch original TV series?
What this looks like across age groups:

18-24 Watch live , 35 % 42 % 23 %

25-34 Watch live , 35 % 47 % 18 %

35-49 Watch live , 46 % 38 % 16 %

50-64 Watch live , 55 % 34 % 11 %

65+ Watch live , 57 % 30 % 13 %

0% 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %

Watch live Do not watch live but watch within a week Watch a week later

© comScore, Inc. Proprietary and Confidential. 13

Live and time shifted viewing by time spent

VOD (inc
Online)
15%

DVR Live Viewing

26% 59%

© comScore, Inc. Proprietary and Confidential. 14 Original Scripted TV Programming

 The new TV audience
– Changing the angle of vision:
Cross platform as connected channels, and behaviors
 Window into the future

© comScore, Inc. Proprietary and Confidential. 15

 "Numerous small things connected together generate enormous
power." Kevin Kelly

Discovery of new TV shows

80%
72%
70%

59%
60%

50%
44%

40%
35%

30% 28%

21%
19%
20%
14%
11%
10%
10% 9%
6%
3% 3%

0%
TV advertising Online video site Friend/family Radio Magazine Outdoor Social networking
member advertising sites
recommendation
TV Only [A] Cross Platform Viewers
Q25. Through which of the following methods did you hear about your favorite original TV show? Check all that apply. Base sizes:
Total=1823
© comScore, Inc. Proprietary and Confidential. 16 TV Only=1183
Both TV/Online=640
 Online video viewing can drive TV viewing

Channel used to continue watching shows that

were first discovered Online

Both TV/Online [C]

60% 57%

50%

40%

30%
22% 21%
20%

10%

0%
Continued to watch it online Continued to watch it on TV Continued to watch it both online
and on TV

Both TV/Online [C]

Base sizes:
Q28. After you first watched your favorite show online, did you continue to watch it online or on TV, or both? Total=752
TV Only=194
© comScore, Inc. Proprietary and Confidential. 17 Online Only=96
Both TV/Online=462
Social networking works alongside other advertising channels to
enable new TV program discovery

50%
Social 35%
Networking

Q25. Through which of the following methods did you hear about your favorite
© comScore, Inc. Proprietary and Confidential. 18 original TV show?
 Online discovery is impactful for all kinds of viewers -whether they
watch online or not

 Across all respondents, 20% of shows regularly watched had been viewed
online first
 Some viewers felt that if they had not been made aware of their favorite TV
shows online first, they would never have discovered it:

Total TV Only [A] Both TV/Online [C]

Yes, I would have

discovered it on
TV, if I had not first 80% 74%
seen it online
72%

No, I would not

have discovered it
on TV and prob. 20% 26%
missed the show
28%

Q26. What percentage of your favorite original TV shows did you first watch: Base sizes:
Q27. If you had not seen your favorite show online first, do you think you would have discovered that show on TV? Total=753
TV Only=194
© comScore, Inc. Proprietary and Confidential. 19 Online Only=96
Both TV/Online=463
Some other benefits of cross platform viewing:

© comScore, Inc. Proprietary and Confidential. 20

Cross platform viewers tend to watch more than those that tune in on
TV only

60.0 %

50.0 %

40.0 %

30.0 %

20.0 %

10.0 %

0.0 %
Light original series TV viewer (less than 5 Medium original series TV viewer (6-10) Heavy original series TV viewer (more than
hours) 10)

TV Only Cross Platform

© comScore, Inc. Proprietary and Confidential. 21

 The new TV audience
 The financial benefits of cross platform
– Window into the future

© comScore, Inc. Proprietary and Confidential. 22

Who is the online-only TV viewer?

© comScore, Inc. Proprietary and Confidential. 23

The Online-Only TV Viewer

40%

35%

30%

25%

20%

15%

10%

5%

0%
18-24 25-34 35-49 50-64 65+
Base sizes:
TV only Online only Total=1823
TV Only=1183
Online Only=105
Both TV/Online=535
‘The future of original TV Viewing and the new digital consumer’
© comScore, Inc. Proprietary and Confidential. 24 was a survey conducted by comScore in December 2009
Key motivations for online-only viewing

Convenience

Don't subscribe to pay TV/don't have TV

Missed Episode on TV

Prefer the online experience

Less Ads

Archive Viewing

0% 10% 20% 30% 40% 50% 60% 70%

© comScore, Inc. Proprietary and Confidential. 25

Compressed entertainment

 Online-only viewers are more likely than regular viewers to save up

episodes and watch them back-to-back, in one sitting
100% B
90% 25%
80% 35%
70% A
60%
28% 41%
50%
40%
30%
20% 37% 34%
10%
0%
Online Only [A] Both TV/Online [B]

One at a time, the most recent

One at a time, catch up viewing
I try to watch as many episodes back to back as I can, all in one go

Q14. When watching drama TV shows online, do you typically like to see one episode at a time or all episodes together?

Base sizes:
Total=640
© comScore, Inc. Proprietary and Confidential. 26 Online Only=106
Both TV/Online=534
They are also much more likely to tune in a week or more after
broadcast

Online-Only TV viewer Cross Platform Viewer

Watch live only Watch live only

9% 36%

Do not watch live but watch within Do not watch live but watch
3 days within 3 days
23% 25%

Do not watch within first 3 days but Do not watch within first 3 days but
watch within a week watch within a week

22% 26%

Watch a week later Watch a week later

46% 14%

© comScore, Inc. Proprietary and Confidential. 27

In closing

 TV remains the platform of choice, but audiences are increasingly

connected and platform agnostic in their discovery and behavior
around original TV content
 We are leaving money on the table when it comes to advertising against
original TV online
 Convenience and catch-up – not ad avoidance – are the key motivators
of cross platform viewing

© comScore, Inc. Proprietary and Confidential. 28