Television & the PVRAdults 18+

July 2008

Stopping the PVR

Source: BBM Analytics omniVU July 2008; Note: refer to “Survey data” for sample detail;

• More than half of the people surveyed who use their PVR to fast forward or skip commercials stop and watch relevant or entertaining ads

• The two primary reason they stop:

1. the product or brand was of interest to them

2. they found the commercial entertaining

• In the PVR world, targeting to ensure the appropriate environment for your ad, and appealing/engaging creative is more important than ever

13.5%

86.2%

0.3%

Yes No DK/Refused

Adults 18+A PVR is a Personal Video Recorder or a Digital Video Recorder that is built into some satellite and digital cable receivers that allows you to record programs and pause or rewind Live television. It does not need tapes. Do you own a PVR?

Source: BBM Analytics omniVU July 2008; Note: refer to “Survey data” for sample detail;

98.8%

1.2%

Live Viewing Playback Viewing

Adults 18+Currently 99% of the time spent watching TV is in Live viewing mode, a mode in which commercials cannot be skipped or fast forwarded.

Source: BBM Nielsen Meter Data, July 2008

51.2%48.8%

0.0%

Yes No DK/Refused

When using your PVR to fast forward or skip commercials do you ever stop to watch commercials that are of interest to you?

Adults 18+

Source: BBM Analytics omniVU July 2008; Note: refer to “Survey data” for sample detail;

40.1%

45.1%

11.4%

3.5%

Interested inbrand or subject

Foundcommercialentertaining

Other reason DK/Refused

What was the main reason for stopping to watch the commercial?

Adults 18+

Source: BBM Analytics omniVU July 2008; Note: refer to “Survey data” for sample detail;

“PVR’d” ads still make impressions

Source: BBM Analytics omniVU July 2008; Note: refer to “Survey data” for sample detail;

• Almost three quarters of the people surveyed by BBM Analytics report awareness of the ads they are fast forwarding or skipping

• Taking into account the small proportion of viewing in Playback mode, these results indicate that the PVR is currently having little effect on brand awareness

69.7%

29.0%

1.3%

Yes No DK/Refused

When you fast forward or skip commercials, are you ever aware of the advertisers in the commercials you are skipping?

Adults 18+

Source: BBM Analytics omniVU July 2008; Note: refer to “Survey data” for sample detail;

“PVR’d” ads still make impressions

Source: Millward Brown, CBS Research 2008

• The results of the BBM Analytics survey are supported by research done by CBS in the U.S.

• CBS research indicates that overall recall of advertising by PVR users and Ad recall by program genre is substantial

• Quality of Creative also impacts Ad recall

• Finally, the PVR has had the impact of adding ratings via playback viewing which leads to audiences larger than live only audiences

100

66

Non-PVR Users PVR Users

Impact on Recall of Ads by PVR Users

Source: Millward Brown, CBS Research 2008

Base Index

15%

52%

26%

7%

Always NoticeAds

SometimesNotice Ads

Rarely NoticeAds

Never Notice Ads

PVR Ad Awareness During Playback/Time Shift

Source: Insights Express Study, CBS Research 2008

69%65%

62% 61%

Reality Comedy Other Drama

PVR Ad Recall by Genre

Source: Millward Brown, CBS Research 2008

55%61%

66%71%

79%

WorstCreative

AverageCreative

Best Creative

Impact of Creative on PVR Ad Recallby PVR Users

Source: Millward Brown, CBS Research 2008; Grey’s Anatomy

7.4

9.6

7.2

8.9

Grey's Anatomy CSI

Live Live +7 Days

PVR Impact on Program Viewing A25-54

Source: CBS Research 2008, National Ratings