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MARKET UPDATE: LATEST FACTS AND FIGURES Slide 2 Platform DTV Households % of UK households 5.3 million 22% 1.14 million 4.7% 564,000 2.3% 951,300 3.9% UK DTV Penetration, Quarter 2, 2001 UK Digital Pay-TV Growth, 1998 - 2001 Millions of subscribers 0 2 4 6 8 10 12 Q1 1998 Q2Q3Q4Q1 1999 Q2Q3Q4Q1 2000 Q2Q3Q4Q1 2001 Q2 Total analogue multichannel ITV Digital Sky Digital Digital Cable Source: Company literature. Digital pay TV is now taken in 8 million homes. Slide 3 Penetration of Analogue and Digital Pay-TV Source: Company literature Q1 1998 Q2Q3Q4Q1 1999 Q2Q3Q4Q1 2000 Q2Q3Q4Q1 2001 DTV Homes Analogue multichannel homes 0 1 2 3 4 5 6 7 8 Millions of Households Analogue multi-channel penetration continues to decline Slide 4 Viewing of cable and satellite channels is growing Audience Share (Multi-Channel Homes) Cable and satellite BBC1 ITV C4 BBC2 C5 0 5 10 15 20 25 30 35 40 45 Jan-98 Mar-98 May-98 Jul-98 Sep-98 Nov-98 Jan-99 Mar-99 May-99 Jul-99 Sep-99 Nov-99 Jan-00 Mar-00 May-00 Jul-00 Sep-00 Nov-00 Jan-01 Mar-01 May-01 Jul-01 Source: BARB Slide 5 But public service channels still account for the majority of viewing in all UK homes... Network Audience Share (All Homes) ITV BBC1 Cable and satellite BBC2 C4 C5 5 10 15 20 25 30 35 40 Jan-98 Mar-98 May-98 Jul-98 Sep-98 Nov-98 Jan-99 Mar-99 May-99 Jul-99 Sep-99 Nov-99 Jan-00 Mar-00 May-00 Jul-00 Sep-00 Nov-00 Jan-01 Mar-01 May-01 Jul-01 Source: BARB Slide 6 and still reach the overwhelming majority of the population Weekly reach (3 minutes consecutive) for BBC1, BBC2, ITV, Channel 4 and Channel 5 all homes, 16 February 1998 - 5 August 2001 Source: BARB Slide 7 Cable and satellite channels are more popular in digital homes Channel Share By Platform Four Weeks Ending 19 August 2001 32% 18% 16% 7% 6% 31% 18% 16% 13% 7% 6% 8% 5% 4% 45% 52% TerrestrialMulti-channelDigital BBC1BBC2ITVC4C5 Cable and satellite Source: BARB Slide 8 Viewer profiles by type of television received 49 23 20 8 34 31 15 21 35 30 14 35 29 25 11 Analogue Terrestrial homes Total digital homes Multi-channel homes All homes Children 16-34 35-54 55+ Profile of viewers by type of service and age, September 2001 Profile of viewers by type of service and social class, September 2001 58 42 54 46 55 45 59 41 Analogue Terrestrial homes Total Digital homes Multi- channel homes All homes ABC1C2DE Source: BARB Slide 9 The average number of hours viewed per day varies according to the platform and social class... Hours Viewed per day by Social Class, September 2001 3.08 3.28 3.45 3.29 3.85 3.73 3.65 3.63 All homesMulti-channel homes Total Digital homes Analogue Terrestrial homes ABC1 C2DE Source: BARB Slide 10 2.26 2.42 2.44 2.03 3.09 3.24 3.44 2.88 3.55 3.84 3.81 3.07 4.63 4.82 4.80 4.72 All homesMulti-channel homes Total Digital homesAnalogue Terrestrial homes Children 16-34 35-54 55+ Hours Viewed per day by Age, September 2001 Source: BARB as well as age. Slide 11 Whole country - 3.49 Scotland - 3.74 Northern Ireland - 3.30 The Borders & Isle of Man - 3.79 North-East - 3.77 Yorkshire - 3.45 North-West - 3.53 East, West & South Midlands - 3.35 East of England - 3.16 Wales & the West - 3.39 London - 3.19 South-West - 3.45 South & South-East - 3.30 Channel - 2.91 Viewing patterns also vary by region. Hours Viewed per day by Region, September 2001 Source: BARB