SUBSCRIPTION TV The Plot Just Got Interesting…

STV Introduction

• 30% of The Australian Population spend more than 60% of their time watching STV.

• Current STV share of viewing in ALL Metro Homes is 21% and ALL Sydney Metro Home is 25%.*

• STV audience is growing

• Churn at record lows due to the introduction of The Digital Network.

• 2006 launch of lower basic Foxtel Digital Package at $36.95

• Increased share of viewing driven by exclusive content, both locally produced and international content . (Aust STV Share of viewing is amongst the highest in the world)

Source: OzTAM, Nat Metro STV, 31/12/2006 – 31/03/2007, Total People S-S 0600-2359, share to all*

Source: OzTAM Establishment Survey Q1 2007.

Subscription TV Coverage

Nearly one in every

3 (30%) Australians have STV

Subscription TV has over 5.9 million

potential viewers

OZTAM Panels People Meter Coverage

• STV viewing is reported within The Metro & Regional Panels.

• STV is also reported in its own panel that isolates STV HHs. (This panel delivers Total Viewer 000s for STV programming)

• FTA Channels are monitored but not measured in STV 000s Growth.

ATR 4,800* HOMES

1,000 Subscription TV (640 Metro & 360

Regional)

3,000 Metro

(750 Syd, 700 Mel, 600 Bri, 475

Ade, 475 Pth)

1,950 Regional

(520 QLD, 430 N-NSW, 380 S-NSW, 430 VIC,

190 TAS)

*Unduplicated – as there is some overlap across the Metro & Regional panels. Regional Subscription TV data available from 2004. #State by state penetration will be reflective of Metro & Regional Television coverage areas

• Total Subscription TV Homes is approx 1.93m.

• 83% of subscribers live on The Eastern Seaboard.

• 27% of Subscribers live in Sydney and 20% in Melbourne.

• Metro audiences deliver approx 70% of impacts and Regional 30%.

• Digital homes now make up over 96% of total Foxtel & Austar Homes. 100% of Foxtel homes are digital.

• 37% of people that live in Sydney have STV. (100 National TARPS will delivery approx 113 TARPS in Sydney Metro)

Source: NMR Panorama Jan – Dec 06.

150,000 STV HHs

Who & Where are our STV subscribers?

1.13m STV HHs591,000 STV HHs

Source – OzTAM All Metro Homes, All Regional Homes, 22/04/07 – 23/04/2007, S-S 0600-2400, Total People, Potential.

30% of All People across Australia have Subscription TV!

38% of People in Sydney have Subscription TV!

Pen

etra

tio

n (

%)

Subscription TV Penetration by Market

Where do STV Subscribers Live?30

.1

37.7

29.8 33

.6

26.8

24.0

22.3

33.5

32.5

21.9

29.6

0

10

20

30

40

National Syd Mel Bris Adelaide Perth QLD Nthrn

NSW

Sthrn

NSW

VIC TAS

27% of STV Subscribers live in Sydney

83% of STV Subscribers live in the Eastern states

Source – NMR Panorama. January - December 2006, penetration %, Based on Total People 14+

Where do STV subscribers Live?

27.0

19.8

13.5

6.1

6.0

5.5

3.83.

3

13.5

1.4

0

5

10

15

20

25

30

Syd Mel Br is Adelaide P er th Rest

NSW/ ACT

Rest VIC Rest QLD Rest

SA/ WA/ NT

T AS

Geographic Profile of Subscribers

Pen

etra

tio

n (

%)

7,9 &10 5-City Metro Audience Decline past 11 years (all people)

Source: 7, 9 & 10 5 City Metro ALL-TV Audience Share (Excl spill & other TV)All People – 0600-2400 – Calendar Years 1995 – 2006., 2007 Jan-Mar

19.8 ALL-TV Share Point Loss

The Australian LandscapeSeven, Nine, Ten, STV Share of All-TV (Excl. Spill)1995-2006 - All People (0600-

2400)

Source: ACNielsen 1995 - 2000 (Calendar Year Su-Sa 0600-2400), OzTam 2001-06 (Calendar year Su-Sa 0600-2400) 2007 Jan - Mar, Share of All-TV Excl Spillage & Other. SBS & ABC Share lines not shown.

-3.6

13.3

-0.5-5

0

5

10

15

20

1st Qtr

FTA TV STV All TV

0600

-240

0

Audience Growth YOY (%)

Source: OzTAM, All Metro Homes, Wks 1-13 2007 v 2006 (excluding Comm Games Wks 11-13 in 2006), S-S 0600-2400, Projections, % Change, Share to All.

12.1 11.7

24.222.5

21.7 21.4

16.9 16.8

3.3 3.4

18.821.4

0

5

10

15

20

25

ABC Seven Nine Ten SBS STV

Sh

are

(%)

13% Audience Growth – Total People• STV’s Metro audience grew by

over 13% in ‘07 v ‘06.

• STV was the only network besides SBS to increase its audience.

• In 2007 STV has attracted 21.4% of all viewing, and is currently the number 2 network.

STV - Greater Cut Through Less Commercial Content

Source: FTA and W comparison of a Desperate Housewives episode, does not include channel or station promos Source: - W, 12/02/2006 20:34-21:30; Xtreme Information – 7 Sydney, 13/02/2006, 20:30-21:30

On average, approximately 50% less commercial content

Love My Way – FOX8Desperate Housewives – Seven

Episode Comparison

vs

NMR Panorama, Jan – Dec 06. All raw counts 50+, indexed on Subscribers v Non-subscribers. ‘Renovation spend P12Mths Average week entertainment spend = spend on combined entertainment & leisure for example dining out, movies, retail shopping, sports gambling etc. Brand

Savvy : Statement is ‘Strongly Agree’

car $$82% more likely to spend $50K+ on the next car 44% more likely to buy a car in N3M

high tech41% more likely to be quick to try new technology

more entertainmentmore than twice as likely to spend

$200+ p/wk on entertainment

home appliances27% more likely to purchase a home entertainment unit >$1500

communicators40% more likely to have 3+ mobile

phones in the home

home focused54% more likely to have spent $50K+ on renovations

brand savvy23% more likely to pay extra

for brands

children50% more likely to have a food/

clothing purchase influenced by kids

spenderstwice as likely to spend $200+

per week on groceries

STV - People Who Consume More

drink alcohol24% more likely to go out for a drink weekly

?Conclusion…

So why would any advertiser under-invest or make a fta-only

buy that concentrates media weight in non-stv households?