Network Television and Digital Media

Ashley Borlik

"In a typical week, how many hours do youspend doing each of the following?"

Gen Y (18-26) 12.2 10.6 6.3 7.2 3.4 2.4 43.2Gen X (27-40) 9.5 11.2 4.6 8.1 1.7 4 39.1

Younger Boomers (41-50) 7.7 12.1 4.1 8 1 5 38Older Boomers (51-61) 6.6 13.7 3.9 6.9 0.8 6 38

Seniors (62+) 3.8 14.4 3.3 5.7 0.6 8.3 36.1

Hours on Web

Watching traditional

TV

Watching DVD

Movies

Listening to the Radio

Playing Video

Games

Reading Mags and

Papers

Total Media Hours

Data Sources: Forrester Research, Inc. ©2006;Forrester’s NACTAS 2006 Benchmark Survey

Web use surpasses traditional TV usage by Gen Y in 2006.

Gen Yers’ Net use increased from 9.4 hrs/wk to 12.2 from 2005-2006.Seniors’ time online also increased from 2.9 to 3.8 hrs/wk.

Digital Media Can help develop an audience base for a struggling show.

“Hit shows work on every platform, but some shows have a demographic appeal that works better than others online," says Jeff Gaspin, president of cable entertainment, digital content and cross-network strategy at NBC Universal.

Mindshare's online research found that one-third of kids between the ages of 12-17 view TV broadcasts on the Internet.

Ipsos Insight found that Americans ages 18-34 were twice as likely to download TV shows on the Internet than the rest of the population.

Hilmi Ozguc, founder and CEO of Maven Networks, "The traditional media companies see the Internet as a way to extend the TV experience. It's another window they can capitalize on with known franchises”

Major deal with iTunes in December 2005 with 11 shows

Reported $12 million in revenue from iTunes sales from Dec 05 – June 06

Projects that interactive advertising and digital content will make up 5% (85 million) of revenue base (17 billion annually) by 2008

Offers streaming video on their site, NBC Rewind, including full episodes of select series and 2 minute recaps of others

Made a deal with YouTube to have an NBC page with content that promotes NBC shows.

Part of the deal includes NBC being able to “police” YouTube and take down copyrighted material.

John Miller - "We want to fully embrace the viral activity that YouTube embraces."

New president and CEO, Jeff Zucker, is committed to furthering NBC 2.0.

The Office One of the first 11 NBC shows

to go to iTunes

The most popular NBC show on iTunes

Delivered highest ratings following its introduction to iTunes

Ben Silverman, Executive Producer, says of iTunes- “That confluence brought us a sampling of a new audience, which also is not an audience that watches TV by sitting down at the time the broadcaster wants to show it"

The Office NBC offers exclusive content

on The Office website, including deleted scenes, extended cuts of select episodes, games, and blogs from characters.

Streaming content includes ads, and all pages have banner ads.

NBC hosted YouTube promo contest, challenging people to make an original promo for the show to be aired

First to go to iTunes with 5 shows in October 2005

Offers streaming video of episodes the following day on their website

Deal with Yahoo to provide news video to Yahoo's video service

Albert Cheng, Executive VP for Digital Media, says, “Overall, we've seen our ratings increase for the shows we have on iTunes, and it continues to pick up momentum.”

LOST Introduced to iTunes in

October 2005

Total audience rise of 14% in 4 months since iTunes.

Adults 18-29 also up 28 percent.

Shows went to iTunes in June 2006

Oct 06 - Deal with YouTube for CBS to provide clips of CBS programs

iTunes revenues reported as less than $10 million in 2006

Expects online ad revenue to double over the next year

Deal with iTunes in May 2006, debuting with 16 shows, largest debut to date

FOX On Demand offers streaming entertainment on local affiliate websites as well as MySpace, which is owned by News Corp.

The Future? Video streaming to phones. Original scripted content available

exclusively online. User-generated content. Increased interactivity through television

sets.

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