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1 The TV Landscape Multichannel subscriber counts may decline slightly by 217, but will still be above 28 levels, according to MagnaGlobal. Total TV Homes (Millions of U.S. Homes) Total Multichannel Households Total Digital Multichannel Subs (Millions of U.S. Homes) (Millions of U.S. Homes) Total VOD Homes Total DVR Homes (Millions of U.S. Homes) (Millions of U.S. Homes) Source: MagnaGlobal, projections for m u l t i c h a n n e l n e w s J a n u a r y 6, m u l t i c h a n n e l. c o m
2 TV Advertising Revenues Multichannel TV advertising will continue to grow faster than broadcast TV advertising, hitting $36.3 billion by 217, MagnaGlobal predicts. Total U.S. Multichannel TV Advertising $4 Total Broadcast Television Advertising $4 $38.4 $ $ $ $31.6 $ $34.8 $35.4 $34.5 $35.9 $29.3 $33.3 $ $ $32.4 $26.2 $ $ $29.9 $ Total TV Advertising Total Advertising $75 $73.6 $72.3 $185 $18.7 $185 7 $68.2 $ $169 $ $63.4 $ $16.3 $154.5 $ $57.4 $57.9 $ $147.6 $ $51.4 $ Source: MagnaGlobal, projections for m u l t i c h a n n e l. c o m J a n u a r y 6, m u l t i c h a n n e l n e w s 1 3
3 The Emerging Digital Landscape About 81 million connected TVs will be sold between 214 and 217, when U.S. homes will have about 39 million set-tops capable of providing over-the-top content, Magna Global predicts. Total Residential Broadband Subscribers 1 (Millions of U.S. homes) Total Over-the-Top Homes (Millions of U.S. homes) N/A N/A Over-the-Top Boxes Connected-TV Sales 4 (Millions of U.S. homes) (Millions of U.S. homes) N/A N/A 1.3 N/A N/A Source: MagnaGlobal, projections for N/A=not available 1 4 m u l t i c h a n n e l n e w s J a n u a r y 6, m u l t i c h a n n e l. c o m
4 Multichannel, Multidevice Broadband video is now available virtually everywhere, with more than 9% of all broadband homes able to stream video over a handheld device, per Horowitz Associates. Have high-speed Internet on computer/ laptop (Percent with device or capability) 93% 88% Able to stream video to TV Total respondents 62% 67% 92% 6% 96% 93% 48% 71% Handheld with video capability Total respondents 91% 94% 83% 92% 94% Able to stream video to TV with game console Total respondents 48% 53% 31% 54% 63% Tablet Cellphone with video capability Total respondents Total respondents 51% 58% 89% 82% 52% 83% 48% 6% 67% 85% Source: Horowitz Associates, Multiplatform Content & Service, 213 m u l t i c h a n n e l. c o m J a n u a r y 6, m u l t i c h a n n e l n e w s 1 5
5 The Digital Advertising Landscape Online video advertising is projected to top $7.4 billion by 217, while the social media ad spend should reach $11.4 billion, MagnaGlobal predicts. Total Internet Advertising Total Internet Video Advertising Total Mobile Advertising Total Social Media Advertising Source: MagnaGlobal, projections for m u l t i c h a n n e l n e w s J a n u a r y 6, m u l t i c h a n n e l. c o m
6 Top Ad-Supported s At press time, Nickelodeon had regained the lead as the most-viewed network for viewers 2 and older, while ESPN attracted the most men 18 and older and USA drew the largest female audience. (Full day, year to date, 213) Men 18-Plus Women 18-Plus Kids Nickelodeon 1, ESPN USA Nickelodeon Disney Channel 1, History TNT Disney Channel Adult Swim 1, Fox News Channel Fox News Channel Cartoon USA 1, Adult Swim HGTV Disney Junior Nick at Nite 1, TNT Nick at Nite Nick at Nite TNT 1, USA Nickelodeon Nick Jr Cartoon 1,124 7 TBS 37 7 A&E Disney XD Fox News Channel 1,14 8. Discovery Channel Adult Swim Adult Swim History A&E Lifetime Nicktoons ESPN FX Food Sprout 87 Teens Young Adults Adults Adults 1. Adult Swim Adult Swim Adult Swim TNT Disney Channel Nick at Nite Nickelodeon USA Nickelodeon Nickelodeon ESPN ESPN Cartoon Cartoon Nick at Nite A&E Nick at Nite MTV USA History MTV Comedy Central TBS Adult Swim 24 7 ABC Family 76 7 Disney Chanel 11 7 Disney Channel TBS Disney XD ESPN TNT Nickelodeon FX USA FX Nick at Nite Comedy Central TBS A&E FX 182 Source: Nielsen. Ad-supported networks ranked by average audience for full day, live plus 7, from Jan. 1 to Nov. 17, 213. Compiled for Multichannel News by Fox Cable s m u l t i c h a n n e l. c o m J a n u a r y 6, m u l t i c h a n n e l n e w s 1 7
7 Online Video s Three in five adults are now viewing TV programming over the Internet each week on a connected device, according to Horowitz Associates. Watch on any connected device On a computer or laptop 6% 46% 71% 57% 57% 43% 39% 23% Any handheld device Total streaming to TV 33% 31% 43% 39% 27% 27% 19% 19% Total Multichannel Subscription and License-Fee Spending m u l t i c h a n n e l n e w s J a n u a r y 6, m u l t i c h a n n e l. c o m
8 Streaming to TV with game console Cellphone 15% 22% 23% 31% 11% 15% 4% 9% ipad or other tablet Streaming from Blu-ray player to TV 21% 7% 25% 6% 19% 8% 14% 5% Streaming from Internet directly to TV 17% Streaming from Apple TV, Vudu, Moxi, Roku, Boxee or Google TV device 1% 24% 11% 13% 8% 9% 9% Source: Horowitz Associates, Multiplatform Content & Services, 213 Total U.S. Internet Wired and Mobile Access Spending Source: PricewaterhouseCoopers, Global Entertainment and Media Outlook: Projections for m u l t i c h a n n e l. c o m J a n u a r y 6, m u l t i c h a n n e l n e w s 1 9
9 Digital Consumption Trends Among all audiences, spend more time with TV, game consoles and mobile video, according to Nielsen. Weekly TV and Digital Media Usage (Hours and minutes spent in TV homes) Viewing traditional linear TV People 2+ African 24:42 21:44 21:45 26:6 3:53 4:19 46:43 31:52 44: Watching time-shifted TV People 2+ African 2:2 1:55 1:45 3:11 3:27 3:29 2:42 3:52 2:12 2:1 1:54 Using a DVD/Blu-ray device People 2+ African 2:6 1:1 :58 1:31 1:9 :54 :32 1:1 1:27 1:11 :55 Using a game console People 2+ African 2:38 4:2 3:1 2:7 :55 :18 :6 1:33 1:52 1:43 1:2 Using the Internet on a computer People 2+ African :22 :47 4:12 5:49 6:16 5:3 3:11 4:9 4:9 2:43 3:14 Watching video via Internet People 2+ African :11 :21 1:21 1:22 1:2 :43 :16 :46 :58 :46 :58 Watching video on a mobile phone People 2+ African N/A :36 :33 :27 :17 :5 :1 :16 :25 :24 :28 Source: Nielsen, The State of Media: The Cross-Platform Report. Data from Q N/A=not available. 2 m u l t i c h a n n e l n e w s J a n u a r y 6, m u l t i c h a n n e l. c o m
10 Digital Media s The overall number of TV viewers grew slightly in 213, while computer usage dropped and the number of people viewing time-shifted TV or mobile video increased dramatically, according to Nielsen. Traditional TV Q Q Q Q Q Q Q Q Time-Shifted TV Q Q Q Q Q Q Q Q Using DVD/Blu-ray Q Q Q Q Q Q Q Q Game Consoles Q Q Q Q Q Q Q Q Using a Mobile Phone Q Q Q Q Q Q Q Q Using Internet on A Computer Q Q Q Q Q Q Q Q Watching Video On a Computer Q Q Q Q Q Q Q Q Watching Video on A Mobile Phone Q Q Q Q Q Q Q Q Source: Nielsen, The State of Media: The Cross Platform Report. Data covers average month in Q m u l t i c h a n n e l. c o m J a n u a r y 6, m u l t i c h a n n e l n e w s 2 1
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