STATE OF THE MEDIA: CONSUMER USAGE REPORT

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1 STATE OF THE MEDIA: CONSUMER USAGE REPORT 2011

2 The U.S. Media Universe DEVICE OWNERSHIP 1 (millions of people who own) MOBILE & ONLINE CONSUMERS (millions of users) At least one TV 290 Mobile phone (ages 13+) 2 DVD player Video game console Digital cable DVR 129 Satellite Time spent is increasing faster than penetration Online 3 Home/work PCs and laptops Mobile web (ages 13+) 4 HOUSEHOLDS WITH TVS (millions of households) 1 At least 1 TV 114.7million HOUSEHOLDS W/ BROADBAND (millions of households) 5 Total 85.9 million With paid TV access and broadband With broadcast TV only and broadband 4.9

3 HOW PEOPLE WATCH TV/VIDEO 6 (millions of viewers, ages 2 and up) SMARTPHONE PENETRATION 8 (by ethnicity) 288 Traditional TV Asian Hispanic African-American White 60 % 50 % 48 % 39 % On the Internet * Android is the preferred OS except among Asians, who typically opt for iphones Timeshifted TV Viewers using timeshifted TV grew 11% since Q ONLINE VISITS AND VIEWS (per person per month) 3 94 Domains 30 Mobile phone ** 2,905 Pages 830 Facebook pages MODES OF ACCESSING SOCIAL MEDIA 7 Nearly 4 in 5 active Internet users visit social networks and blogs % Computer 3 % Gaming console 37 % Mobile phone 3 % ipad SMARTPHONE OS MARKET SHARE 8 43 % Android 28 % iphone 43 % Smartphones Windows Mobile Other 18 % RIM 7 % Black- 4 % Berry 57 % Feature phones

4 The American Video Viewer AVERAGE WEEKLY MEDIA TIME 10 (hours:minutes, by age and platform) 46:16 Traditional TV^ 41:04 32:47 32:58 28:08 24:52 22:24 24:17 ALL AGES (2+) AGES :58 0:30 1:25 4:02 6:03 5:50 4:58 2:38 Internet on a computer ^^^ 2:21 1:50 1:29 1:30 2:57 3:07 2:42 1:42 Timeshifted TV^ 0:27 0:07 0:21 0:45 0:50 0:35 0:23 0:12 Video on the Internet * 0:07 NA 0:20^^ 0:17 0:12 0:05 0:01 <0:01 Video on a mobile device **^^

5 MOBILE VIDEO 11 Top channels by unique viewers # 1 # 2 # 3 # 4 # 5 YouTube FOX ABC Comedy Central CBS MOBILE VIDEO APP ATTRIBUTES 14 % of consumers who deem the following attributes as Very important STREAMING SERVICES 12 % of Netflix and Hulu viewers who watch using a(n)... Just 1.2 million people used a standalone streaming device, such as Apple TV or Boxee, but these devices account for nearly 1/5 of their TV screen time. 13 Hulu Users Computer directly 89% Netflix Users 4 Computer connected to a TV Video game console Internet enabled TV 6% Somewhat important 20% 14% 50% Free/Low subscription rates 63% 86% Wide selection 47% 33% 80% User-friendly 43% 38% 81% New content 4 38% 80% No/few ads 39% 34% 73% 8% Total TOP FIVE ONLINE VIDEO DESTINATIONS BY 15 UNIQUE VIEWERS (in millions) TIME SPENT PER MONTH (hours:minutes per person) #1 YouTube :01 Netflix #1 #2 VEVO YouTube #2 #3 Yahoo! Tudou.com #3 #4 Facebook Hulu #4 #5 MSN/ Windows :52 2:34 2:26 2:20 #5 Megavideo Although unique viewers who are women watch more video on social networks and blogs, men spend 9% more time watching. 16

6 The Seeking, Searching U.S. Consumer TOP APP CATEGORIES 17 Percent of tablet and smartphone users who downloaded an app in the past 30 days. 27% 8% 33% 68% Games 27% 16% 45% Maps/Navigation 21% 18% 6% 45% Music 20% 45% Social Networking PERCENTAGE WHO DOWNLOAD, BY CATEGORY AND COST Free & paid apps Free apps only Paid apps only 16% 14% 3% 33% News 14% 14% 3% Entertainment 14% 14% 3% Sports 14% 14% 30% Banking/Finance 51% of consumers say that they are okay with advertising on their devices if it means they can access content for free. 3 10%10% 3% 10% 11% 9% 11% 7%7% 5%7% Books Restaurants/ Dining 2 Coupons/ Discounts 16% Recommendations/ Reviews 14% Magazines MONTHLY BREAKDOWN OF TIME SPENT (on Android devices, September 2011 average) 18 Texting 14% Dialer 6% Social Networking 5% All other Apps 53% Facebook and Twitter are more popular apps among women, while Google+ has a larger reach among men. /IM 5% Retail apps such as Barcode Scanner (14% of Android users) and ebay Mobile (13%) are growing in reach. Browser 10% Maps/Location 4% On average, app downloaders have 33 apps on their phones. 33 Music/Video Camera 1%

7 SIMULTANEOUS USAGE 17 Percent of consumers who did the following on their tablet while watching TV... Programming Commercials Checked site Surfed web for unrelated information Visited a social networking site Looked up info related to the TV program I was watching on a product for an ad I saw on TV on coupons or deals related to an ad I saw on TV Female Male Total TOP SOURCES OF INFORMATION 19 Preferred sources for product and service information Consumer Ratings 63% Consumer Reviews Company s Website Call Center Video Clip Live Chat Company s Facebook Mobile App Online Ad Company s Twitter % % 8% 7% 34% 30% MONTHLY DATA USAGE 8 (by age, in MB) 50% 47% 45% 6 Q Q TOP RETAIL AND CONSUMER ELECTRONICS WEBSITES 3 (by audience size in millions) TIME SPENT (log scale) 100min./person Overstock.com TOP 5 WEBSITES Computer & consumer electronics Mass merchandiser 19.5 ShopAtHome.com 33% of Americans online visited Amazon in September. 5 CNET 23.5 Target 26.0 Adobe 28.0 Mozilla 25.7 Walmart Stores 34.5 Apple 68.7 Amazon 72.0 Microsoft 93.8 Young women and those with middle incomes ($25k 75k) are more likely to visit Computer and Consumer Electronics websites. Young men and those with higher incomes ($100k+) are more likely to visit Consumer Electronics news sites. 5 5% 10% 20% 50% ACTIVE REACH (log scale)

8 The Globally Connected Consumer Nielsen's survey of more than 25,000 online respondents from 56 countries around the world reveals consumer's multi-screen purchase behavior/intentions. DEVICE PENETRATION 20 Percentage of online respondents who a Smartphone Tablet 6% Already own 11% Will purchase HD HD TV TV with Internet 3D TV Worldwide HD HD TV Already own 35% Will purchase 3D TV 6% TV w/internet 17% Smartphone 36% 21% Tablet 1 19% Latin America 26% 5% 2 25% 19% 30% 5% 30%

9 DEVICE PENETRATION19,20 a Percentage of online respondents who Already own 6% Smartphone Tablet Will purchase 11% HD HD TV 3D TV TV with Internet Asia Pacific 26% Europe 13% 30% 1 27% 44% 14% 18% 10% 6% 4% 37% 18% 7% 15% 1 Middle East, Africa, Pakistan 28% 20% 13% 27% 11% 19% 8% 27% 29% 28%

10 Sources & Notes SOURCES NOTES 1. Nielsen. National People Meter, Universe Estimates (November 2011) 2. Nielsen. Mobile Media Marketplace (Q3 2011) 3. Nielsen. NetView (September 2011) 4. Nielsen. Mobile Netview (September 2011) 5. Nielsen. Based on Universe Estimates for the 15th of each month, Home & Work (Q2 2011) 6. Nielsen. (Q2 2011) 7. NM Incite. State of Social Media Survey (April 2011) 8. Nielsen. U.S. Mobile Insights, National (Q3 2011) 9. Nielsen. (May 2011) 10. Nielsen. Data uniquely based on the Total Population in the US all 297 million Americans over age 2 whether or not they have the technology (Q2 2011) 11. Nielsen. U.S. Mobile Video Survey (Q3 2011) 12. Nielsen. Netflix/Hulu survey (March 2011) 13. Nielsen. Custom Survey (November 2011) 14. CTAM/Nielsen. Roadmap to Video Apps (What Makes Viewers APPy?). (August 2011) 15. Nielsen. VideoCensus (September 2011) 16. Nielsen. VideoCensus, Home & Work (May 2011) 17. Nielsen. Applications Playbook (Q3 2011) 18. Nielsen. Smartphone Analytics, Device Metering Data (September 2011) 19. NM Incite (October 2011) 20. Nielsen, Global Omnibus Survey, (O3 2011) Includes those viewing at least one minute (reach) within the measurement period. This includes Live viewing plus any playback within the measurement period. Internet figures are from home and work. Hours:minutes for Internet and video use are based on the universe of persons who used the Internet/watched online video via their computers. All Internet figures are weekly or monthly averages over the course of the quarter. * Due to a change in the format of Netflix stream URLs, streaming for the Netflix brand was not reported in the April and May VideoCensus reports. This was corrected with June-forward reporting. ** Video user projection, time spent and composition data based on survey analysis of past 30 day use during the period. The mobile video audience figures in this report include mobile phone users (aged 13+) who access mobile video through any means (including mobile Web, subscription-based, downloads and applications). ^ Includes Live usage plus any playback viewing within the measurement period. Timeshifted TV is playback primarily on a DVR but includes playback from VOD, DVD recorders, server based DVR s and services like Start Over. ^^ Nielsen s mobile survey reports mobile video usage for those users 13 and older. This is T13-17 for all mobile data. ^^^ Due to a change in the type of call used behind Facebook s AJAX interface, Nielsen NetView data for Facebook page views and duration were underreported for June and July. This was corrected with August-forward reporting.

11 ABOUT NIELSEN Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, visit For more insights, check out our blog, NielsenWire.com, or follow us on Copyright 2012 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and service names are trademarks or registered trademarks of their respective companies. 12/4318

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