How People Use Audio and Sports Radio

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1 How People Use Audio and Sports Radio RAB/NAB Radio Show 2011 September 16, 2011 David Tice Vice President & Group Account Director, Media Team Knowledge Networks, Inc. and Thomas Evans, Ph.D. Vice President, Audio Research & Special Projects ESPN, Inc.

2 Methodology Who? General Population: N=1554 Males age Past Week Sports Radio Users When? December 2010 How? What? 20 minute online survey on Knowledge Networks probability-recruited research panel Cooperation rate was 48% among assigned sample Respondents answered a variety of questions about overall device ownership and usage, downloading, streaming, and OTA habits, and usage of sports and ESPN Audio properties

3 Issues What Devices People Use to Listen to Audio Where People Listen to These Devices Why People Select Those Devices to Listen to Audio How Much People Listen to Audio on Those Devices What Are the Attitudes to Advertising on Audio

4 General Audio/Radio: Ownership and Usage

5 Audio Devices Owned in Home Ownership Among Total Men % 78% 72% 16% claim to have a Smartphone with radio capability 60 64% 62% 59% 40 35% Smartphone Net (51%) 20 19% 18% 13% 23% 10% 6% 4% 3% 0 Desktop/ Laptop Computer Clock Radio Basic Cell Phone Home Entertainment Radio ipod or Other Portable MP3 Portable Tabletop/ Desktop Radio Portable BlackBerry Android iphone Other Handheld/ Smartphone Satellite Radio Personal Radio ipad, Galaxy, or Other Tablet Device HD Radio Internet Radio

6 Devices Found in Car or Truck Ownership Among Total Men % % 50% among Men % 34% among $100K+ income 3% 0 AM/FM Radio Receiver ipod/other MP3 Player played through vehicle s sound system Satellite Radio Receiver HD Radio Receiver

7 Devices Used at Workspace Products at Personal Workspace Percent Desktop or Laptop Computer 36% Portable Tabletop/Desktop Radio 7% Clock Radio 5% Radio in a Stereo or Entertainment System 4% Portable Handheld/Personal Radio 3% Satellite Radio (XM or Sirius) Receiver 1% Internet Radio Device like a Chumby One 1% HD Radio 0%

8 Device Ownership at Home/Car/Work Ownership among Total Men Total Ownership AM/FM broadcast radio of any type 96% Desktop/laptop computer 95% Basic cell phone 72% ipod or other portable MP-3 player 62% Any Smartphone 51% Connection for ipod/other MP3 in car 37% Satellite radio (Sirius or XM) receiver for home/car/work 21% iphone 13% ipad/tablet 6% HD radio for your home or car 6% Internet radio device like a Chumby One 4%

9 Use at least once a week for Audio Net Device Usage vs. Ownership Home, Car, or Work AM/FM radio ipod/ipad/mobile Computer HD Radio Satellite radio Smartphone Regular cell phone 0 Internet device Device Ownership in Any Location

10 Terrestrial Radio Usage

11 Terrestrial AM/FM/HD Radio Incidence None 36% Past Wk 64% Types of Receivers Used in Past Week Percent Radio in a car or truck 89% Clock radio 26% Radio built into a stereo or entertainment system 24% Portable desktop/tabletop radio 19% Portable handheld/personal radio 10% Radio receiver built into a cell or mobile phone 5% HD radio receiver of any type 2% Other type of radio not listed 2%

12 Types of Content Listened To on Terrestrial Radio Music 53% News/Weather Talk - General Talk - Political Talk - Sports Sports Play-By-Play Sports Scores or Updates Sports Pre-Game/Post-Game Religious Educational/Self-Help Other Type of Content Not Listed 23% 14% 12% 12% 8% 8% 6% 5% 1% 2% 19% are Past Week Terrestrial Sports Radio Users

13 Frequency of Listening to OTA Sports 5% 10% 22% 22% 8% 19% 26% 21% 44% 34% 34% 33% 40% 41% Never Listen Listen Less than Once Week Listen Once Week 68% 68% Listen Daily 34% 34% 34% 44% 32% 37% 40% 48% 34% 39% 10% 6% 8% 6% Sports scores and updates Sports talk radio Radio program on team or league Sports pre-game show Play-by-play coverage Sports postgame show

14 Streamed and Downloaded Audio Usage

15 Streamed/Download Incidence Streamed Radio None 63% Past Week 27% 61% listen to full version of program Downloaded None 84% Past Week 16% Types of Devices Used Prcnt Desktop PC 42% Laptop PC or netbook 42% ipod or other MP-3 player with WiFi access 14% Smartphone other than an iphone 14% iphone 10% Internet radio device like a Chumby One 6% ipad or other tablet device 2% Types of Devices Used Prcnt Desktop PC 34% Laptop PC or netbook 33% ipod or other MP-3 player with WiFi access 29% Smartphone other than an iphone 9% iphone 7% ipad or other tablet device 1% Other type of device not listed 0% Other type of device not listed 4%

16 Types of Audio Content Listened To Music Talk - General News/Weather Talk - Political Types of Streamed Content Listened to 4% 4% 3% 19% Types of Downloaded Content Listened to 2% 3% 2% 7% Talk - Sports Sports Play-By-Play Sports Pre-Game/Post- Game Sports Scores or Updates 3% 2% 1% 1% 4% are Past Week Sports Streamers 2% 1% 1% 1% 3% are Past Week Sports Downloaders Religious 1% 1% Educational/Self-Help Audio Books or Magazines Other Type of Content Not Listed 2% 0% 2% % 0% 2%

17 ESPN Audio Usage

18 Frequency of Listening to ESPN Listening to ESPN on OTA Radio among OTA sports listeners Listening to ESPN Streamed Radio among streamed sports listeners Listening to ESPN Downloaded Radio among downloaded sports listeners 100% 80% 60% 40% 20% 0% 32% 27% 24% 17% On ESPN Radio station 56% 19% 83% 32% 31% 44% 29% 84% 25% 25% 17% 9% 20% 8% 6% 6% 1% 8% 3% 5% 1% 5% Simulcast on ESPN Cable ESPN Deportes Streaming ESPN Radio Clips or Highlights Any content from Deportes 45% 44% 25% 28% ESPN Podcast 15% 63% 22% 26% 31% 32% 12% 13% 3% 11% Clips or Highlights Clips/Highlights from Deportes ESPN Podcast Listen daily Listen at least once a week Listen less than once a week Never listen

19 Share of ESPN Listening Share of Minutes on ESPN Properties Work 5% Another's Other Home 1% 8% Home 49% Car 37% Mean minutes per day among users = 86 mins

20 ESPN Audio: Building Reach Beyond Broadcast Terrestrial Only 4.1% Terrestrial + TV Simulcast 4.1% 1.4% Terrestrial + Satellite 4.1% 0.6% Terrestrial + Streaming 4.1% 0.4% Terrestrial + Mobile 4.1% 0.3% Terrestrial+ Deportes Radio 4.1% 0.3% Terrestrial + Download 4.1% 0.1% 0% 1% 2% 3% 4% 5% 6% 7% 8% % Broadcast Reach % Incremental

21 ESPN Avid Fans: Building Reach Beyond Terrestrial Terrestrial Only 10.1% Terrestrial + TV Simulcast Terrestrial + Satellite Terrestrial + Streaming Terrestrial + Mobile 10.1% 10.1% 10.1% 10.1% 2.5% 0.7% 1.3% 0.1% Terrestrial + Deportes Radio Terrestrial + Download 10.1% 10.1% 0.0% 0.0% 0% 2% 4% 6% 8% 10% 12% 14% % Broadcast Reach % Incremental

22 Reasons for Selection

23 Reasons for Terrestrial Sports Radio I can be in my car, working out, or just on the go. easier to access at anytime easier to change stations what I am use to. can t always get internet connection I do not know what steamed or downloaded is. I know what radio is. Reasons for Terrestrial Prcnt Accessibility 37% Confidence 34% Familiarity 8% Audio Quality 4% Cost 2% Hardware 1% Programming 1% Reliability 1% Other 9%

24 Reasons for Satellite Sports Radio More choices of games, talk shows better reception clearer sound National perspective I can get different NFL games that may or may not be carried on commercial Radio Reasons for Satellite Prcnt Programming 42% Quality of Audio 20% Location 12% Commercials 10% Sat Listening 10% Accessibility 3% Other 3% I mainly use Satellite Radio when on road trips driving. I have fewer problems with loss of signal. However, when in town, I prefer my local broadcast radio station. It s good and it s free.

25 Reasons for Streaming Sports Reasons Streaming Sports Audio Prcnt Don't have access to a radio at the time 37% To listen to a recent broadcast I missed 33% Don't have access to the broadcast in the area I'm in 32% It's only available online 17% To listen to older broadcasts 16% Bad radio reception at the time 10% To try out a new program 6% To listen to a recent broadcast over again 3% Another reason not listed above 8%

26 Reasons for Downloading Sports Reasons Downloading Sports Audio Prcnt To listen to a recent broadcast I missed 37% To listen to a recent broadcast over again 32% Don t have access to a radio at the time 24% It s only available online 18% To listen to older broadcasts 13% Don t have access to the broadcast in the area I m in 13% Bad radio reception at the time 10% To try out a new program 8% Another reason not listed above 3%

27 Source of Information for Streamed and Downloaded Programs Friends or relatives On-air mentions during regular radio broadcast Search engine itunes Local radio station website Social networking site like Facebook or MySpace National radio network website Website that hosts or sells content but is not associated with program or network Apps on phone or mobile device Ads or mentions on related television networks or Internet sites Another type of site not listed 23% 19% 22% 17% 12% 13% 17% 13% 9% 12% 17% 6% 9% 6% 6% 5% 5% 6% 7% 31% 42% 40% Total Sports Audio User

28 Impact of Other Choices on Terrestrial Radio

29 Impact of Downloading/Streaming % Net Impact -6% % 16% 0 No difference to listening to terrestrial Listening to terrestrial less often Listening to terrestrial more often

30 Impact of Downloading/Streaming Sometimes live broadcasts are inconvenient. The Internet provides me with a download/ podcast that I can listen to later. There's always going to be more variety on the internet. Radio is readily available, and easy to use in my car. Broadcasts are everywhere and radios are everywhere and simple to use and reliable. Prefer Internet 18% Prefer Radio 82%

31 Audio Advertising: Point of Purchase and Attitudes

32 Media Usage Prior to Purchase Average Time Hours before purchase Hours Terrestrial Radio TV Str/Dnld Audio Magazine Internet Smartphone Newspaper

33 Attitudes towards Sports Terrestrial Advertising 100 Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree % 64% 52% % 5% 44% 9% 48% 9% 32% 29% 19% 31% 27% 14% 29% 26% 15% 25% 23% 19% 22% 20% 18% % 35% 47% 80 66% 69% 70% 74% 78% 100 Ads fair price to pay for free content on b cast sports radio # of ads on b cast sports radio takes away from enjoyment Ads on b cast sports radio generally fit well with content Pay attention to ads during b cast sports radio Ads on b cast sports radio relevant to needs and interests Advertising in b cast sports radio is important info source Sports radio provides info that helps decide what to buy I purchase from companies that advertise during sports radio programs

34 Attitudes towards Downloaded and Streamed Sports Advertising Terrestrial Sports 100 Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree % 22% 52% 72% 29% 25% 32% 64% 56% 60% 63% % 30% 20% 28% 25% 22% 50% 15% 44% 7% 37% 27% 24% 33% 38% 24% 21% 18% 26% 24% 8% % 72% 43% 40% 71% 76% 59% 37% 100 Ads hear while listening to stream/dwnld sports audio content relevant to needs & interests More inclined purchase from companies that advertise during stream/dwnld sports audio Ads hear listening to stream/dwnld sports audio fit well with content Ads fair price to pay for free content via stream/dwnld sports audio Advertising in stream/dwnld sports audio is important source of info about products & services Advertising in stream/dwnld sports audio provides info that helps decide what to buy Pay attention to ads hear during stream/dwnld sports audio #of ads during stream/dwnld sports audio takes away from enjoyment

35 Summary

36 Key Take-Aways Potential access to Audio whether broadcast or Internet-based is virtually universal. The multiple platforms used by ESPN Audio add notably to the reach of ESPN terrestrial radio among Men 18-54, combining to extend daily reach by half. Internet audio usage is mostly due to not having access to terrestrial radio, desire to hear a missed terrestrial radio program, or to listen again to a program that was on terrestrial radio. Attitudes to advertising on sports audio is fairly positive for terrestrial radio, streaming, and downloading.

37 Contact Information David Tice Dr. Tom Evans

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