Understanding the Ratings Game. Connie Ledoux Book, Ph.D. Presentation to NATOA Annual Conference New Orleans, 2009

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1 Understanding the Ratings Game Connie Ledoux Book, Ph.D. Presentation to NATOA Annual Conference New Orleans, 2009

2 Pop Quiz Can you trust your gut instinct when it comes to television and the ratings? 1. Television advertising is based on HUT (homes using television). How many households exist in the United States?

3 Pop Quiz Can you trust your gut instinct when it comes to television and the ratings? 1. Television advertising is based on HUT (homes using television). How many households exist in the United States? 2. What percentage of the people receive television over-theair, via cable or via satellite?

4 Pop Quiz Can you trust your gut instinct when it comes to television and the ratings? 1. Television advertising is based on HUT (homes using television). How many households exist in the United States? 2. People receive television over-the-air, via cable or via satellite? 3. What is the most popular cable television network?

5 Pop Quiz Can you trust your gut instinct when it comes to television and the ratings? 4. What cable network program is consistently in the top 10 making it the most popular television show on cable?

6 Pop Quiz Can you trust your gut instinct when it comes to television and the ratings? 4. What cable network program is consistently in the top 10 making it the most popular television show on cable? 5. How much does ESPN cost per month (on average?)

7 Pop Quiz Can you trust your gut instinct when it comes to television and the ratings? 4. What cable network program is consistently in the top 10 making it the most popular television show on cable? 5. How much does ESPN cost per month (on average?) 6. How many people on average watch Monday night football on ESPN?

8 Pop Quiz Can you trust your gut instinct when it comes to television and the ratings? 4. What cable network program is consistently in the top 10 making it the most popular television show on cable? 5. How much does ESPN cost per month (on average?) 6. How many people on average watch Monday night football on ESPN? 7. How many cable subscribers are triple play customers?

9 Pop Quiz Can you trust your gut instinct when it comes to television and the ratings? 4. What cable network program is consistently in the top 10 making it the most popular television show on cable? 5. How much does ESPN cost per month (on average?) 6. How many people on average watch Monday night football on ESPN? 7. How many cable subscribers are triple play customers? 8. If you listed all the TV programs that aired last year, by popularity, how soon before you would hit a cable television program?

10 Pop Quiz Can you trust your gut instinct when it comes to television and the ratings? 4. What cable network program is consistently in the top 10 making it the most popular television show on cable? 5. How much does ESPN cost per month (on average?) 6. How many people on average watch Monday night football on ESPN? 7. How many cable subscribers are triple play customers? 8. If you listed all the TV programs that aired last year, by popularity, how soon before you would hit a cable television program?

11 Pop Quiz Can you trust your gut instinct when it comes to television and the ratings? 1. Television advertising is based on HUT (homes using television). How many households exist in the United States?

12 Pop Quiz Can you trust your gut instinct when it comes to television and the ratings? 1. Television advertising is based on HUT (homes using television). How many households exist in the United States? 115 million

13 Pop Quiz Can you trust your gut instinct when it comes to television and the ratings? 1. Television advertising is based on HUT (homes using television). How many households exist in the United States? 115 million I wonder how many homes my community has?

14 TVB-a great free resource.

15 2. People receive television over-the-air, via cable or via satellite?

16 2. People receive television over-the-air, via cable or via satellite? a) What percentage of Americans receive television over the air? 11% b) What percentage subscribe to cable? 61% c) What percentage subscribe to satellite? 28% I wonder what this breakdown is in my community?

17 Designated Market Areas Baton Rouge 93% are ADS, 22% satellite, 71% cable

18 Knowing the distribution system

19 Nielsen s 56 Overnight Markets SEATTLE- TACOMA PORTLAND SACRAMENTO- STOCKTON SAN FRANCISCO- OAKLAND LOS ANGELES SAN DIEGO SALT LAKE CITY LAS VEGAS PHOENIX DENVER MINNEAPOLIS- ST.PAUL MILWAUKEE CHICAGO PROVIDENCE CLEVELAND HARTFORD INDIANAPOLIS PHILADELPHIA NEW HAVEN CINCINNATI NEW YORK KANSAS CITY ST.LOUIS PITTSBURGH BALTIMORE WASHINGTON, DC NASHVILLE CHARLOTTE MEMPHIS RALEIGH GREENSBORO BIRMINGHAM ATLANTA DALLAS-FT WORTH JACKSONVILLE, BRUNSWICK HOUSTON SAN ANTONIO ORLANDO- DAYTONA BEACH NEW ORLEANS TAMPA- ST. PETERSBURG DETROIT WEST PALM BEACH MIAMI- FT.LAUDERDALE

20 Diaries, Meters, LPMs

21 Pop Quiz Can you trust your gut instinct when it comes to television and the ratings? 3. What is the most popular cable television network?

22 Ratings vs. Shares Rating= % watching based on total number of HH. Share=% of watching based on HUT (this is more important) CUMEs

23 Reading the ratings.

24 Pop Quiz Can you trust your gut instinct when it comes to television and the ratings? 4. What cable network program is consistently in the top 10 making it the most popular television show on cable? 5. How much does ESPN cost per month (on average?) 6. How many people on average watch Monday night football on ESPN?

25 Here s the dilemma. TV audience pie. Cable programs never appear in the top programs watched, they are not available to 11% of the audience. If you take half of the audience and spread it across 8 channels, each channel has a considerable number of viewers. If you take the other half and divide it across 30 channels (basic), then 75 channels (expanded) then 150 channels (digital) each channel has fewer/fewer viewers. It s cable television s greatest asset niche audiences. If you want to know what nobody is watching it is ESPNClassic, the Outdoor Network, SciFi Channel.

26 SoapNet Press Release last month. Here s a press release from SOAPNet, raving about.07% of viewers. SOAPnet (3Q 2009) Posting its 7th consecutive quarter of increases, 3Q09 became SOAPnet s most-watched quarter on record in Total Viewers in Prime (381,000) andtotal Day (198,000). Impressively, this is the second straight quarter the network has delivered at record levels. In Women 18-49, SOAPnet grew its Total Day audience for the 5th straight quarter, hitting all-time highs in 3Q09 (79,000). In Prime 3Q09 became the net s second-most-watched quarter ever, behind only 2Q08 (142,000 vs. 143,000). Compared to 3Q08, in Prime SOAPnet climbed by an impressive 21% in Total Viewers (381,000 vs. 315,000) and by 35% in Women (142,000 vs. 105,000). In Total Day SOAPnet improved delivery by an equally impressive 22% in Total Viewers (198,000 vs. 162,000) and by 30% in Women (79,000 vs. 61,000).

27 Cable ratings last week Why is everyone so angry at Nielsen s methodology? Measure in 15 minute intervals. Diaries are no longer productive. DVR environment and online environment where and how do you count Monopoly! it?

28 CUME Total Day Avg. Viewers (Live+SD) (in 000s) 1. NICK 1, DSNY 1, USA 1, ESPN 1, NAN 1, FOXN 1, ADSM 1, TNT 1,020 Why won t it ever be MTV, VH1 or CMT?

29 How long before you get to a cable program.

30 How long before you get to a cable program?

31 Sample Costs for Cable Networks Disney Channel $1.48 ESPN $3.78 MTV $0.43 Fox News $0.51 TBS $0.47 Weather Channel $0.19 C-SPAN $0.05 NCTA Report on a la Carte pricing, 2004; 2006; 2007

32 Sample PEG Viewership CUME exposures (weekly exposures) Broadcast TV is high. Cable Networks not so high. Averages using 16 markets across the country ( ): Government Access Television: 3% daily, 1 in 4 weekly Education Access Television: 1% daily, 20% weekly Public Access Television: 1% daily, high variance (15-35%)

33 Pop Quiz Can you trust your gut instinct when it comes to television and the ratings? 7. How many cable subscribers are triple play customers?

34 NCTA research

35 Fighting back. Cable: All they do is show reruns. That s a waste of the bandwidth. Turn back one of the channels to us. Local spot cable advertising: $13 to $53. Using the lowest cost at 8:00 minutes an hour, 12 hours, 365 days: $455,520 Using the highest cost at 8:00 minutes an hour, 12 hours, 365 days: $1,875,120 Several of the most popular cable networks use reruns as a means to engage the audience. TNT, USA, ABC Family Several of the most popular cable networks are nothing but reruns or the repurposing of old content. ESPN Classic, SoapNet, Gameshow Network. TCM.

36 Fighting Back. Cable/Telcos: We can put all your programming on one screen and then the user can toggle to the programming feed they want. Everybody watches television on the Internet now and that s how you watch Internet programs.

37 Not true!

38 Reaching the audience.

39 TV websites.

40 Watching video online at TV websites.

41 Fighting Back When cable television networks move to a pull versus push format so will PEG. When cable customers access their programming via menu screens then so will PEG. The notion that we are an Internet television audience is not yet true. About 40% of adults visit television websites and about 40% of those are watching video online. That s slightly less than 20% of the total viewing audience.

42 Fighting Back When they end using an EPG to provide programming information so will PEG. When they go all digital so will PEG.

43 5 Key Things to Remember Know your market. Go to organizations that compete or promote cable. They will offer you competitive edge data and while not required to sell ads, this type of thinking will provide you important information for your council. When cable networks do it, so will PEG. Seek relationships with broadcasters (ratings, multicasting). Use instant reporting (www.surveymonkey.com)

44 DMA Specific Information

45 DMA Specific Information

46 DMA Specific Information

47 5 Key Things to Remember Know your market. Go to organizations that compete or promote cable. They will offer you competitive edge data and while not required to sell ads, this type of thinking will provide you important information for your council. When cable does it, so will PEG. Fight back! Seek relationships with broadcasters (ratings, multicasting). Use instant reporting (www.surveymonkey.com)

48 Thank you!

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