VAB REPORT: TV EVERYWHERE.ACCESSING PREMIUM VIDEO CONTENT ACROSS MULTIPLE SCREENS



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VAB REPORT: TV EVERYWHERE.ACCESSING PREMIUM VIDEO CONTENT ACROSS MULTIPLE SCREENS

SUMMARY TV Everywhere Summary TV Everywhere is gaining traction authentication rate is at 60% for long-form (2Q15) Traction is partly due to the authentication process being less of a barrier now as most rank experience as easy Awareness is still an issue as half are not aware of TVE A quarter of MVPD subscribers have the TVE App installed on their mobile devices but those who install, use it frequently (45% use app on a weekly basis) TV Everywhere authentications through connected TV is gaining popularity up 110% in 2Q15 v. yag and viewing frequency has grown 35%. TVE leads to increased TV viewing 64% of all viewers who watch TV everywhere say they watch more TV overall; for Millennials, number is more pronounced at 72% TV Everywhere provides value: Preserves retention, increases consumer loyalty, provides flexibility personalized viewing experience, retains viewership

TVE DEFINITION What is TV Everywhere? TV Everywhere allows consumers to access TV content they already subscribe to across multiple screens through their service provider authentication (subscriber verification). The Principles of TV Everywhere Bring more TV content, more easily, to more people across platforms MVPD subscribers can watch programming from their favorite TV networks on multiple screens for no additional charge Subscribers can access this content using any broadband connection Note: TVE availability will vary by MVPD. Programming can also vary based on content providers MVPD agreements

TVE APPS Consumers Access TV Everywhere Content Through a Variety of Programmer and MVPD Apps Some Examples Of TV Everywhere Apps Watch All Your TV From Home, Anywhere You Go There are quite a few different services available - depending on your TV provider and which networks you re paying for. Different networks support different platforms, and some apps are available on more devices than others.

TVE GROWTH The Amount of People Utilizing TV Everywhere is Steadily Growing 35% 2Q14 Source: FreeWheel Video Monetization Report; 2Q15 46% 3Q14 Long-form Authentication Rate 57% 4Q14 57% 1Q15 2014 FIFA World Cup drove authentication up and rate has continued to increase steadily 60% 2Q15

AUTHENTICATION EXP The Authentication* Process Has Become Less of a Barrier to Consumer Usage Source: Stastica 2014 19.1% Very easy (7) Rank Your Experience with TV Everywhere Authentication Process 27.4% 21.9% 24.5% 6 5 Neither difficult nore easy (4) 4.6% 1.6% 0.8% 3 2 Very diff (1) *Authentication through a MVPD provider is required to access content even through a programmer app; Authentication is the process requiring the user to verify their subscription to a MVPD service usually by entering a MVPD specific user name and password

AWARENESS However, Another Barrier to Wide Scale Adoption is Awareness; Half of Consumers are Not Aware of TVE Don t Know 52.4% Source: 2Q15 Digitalsmiths Video Trends Report Does your cable/satellite provider offer an app(s) that allows you to watch TV/movies on mobile devices? 2Q13 2Q14 2Q15 Yes 32.1% No 15.5% Don t Know 49.2% No 12.3% Yes 38.5% Don t Know 45.6% No 11.1% Yes 43.3%

TVE APP On Average, a Quarter of MPVD Subscribers Have the App Installed on Their Mobile Device 2Q15 2Q14 Source: 2Q15 Digitalsmiths Video Trends Report Do you have your cable/satellite service provider s app downloaded on your ipad/tablet or smartphone? 21.7% 24.0%

TVE APP USAGE Once Installed, the App is Used Frequently 14.4% 43.2% Source: PageFair & Adobe 2015 report; Global How often do you use your cable/satellite provider s app 10.4% 8.1% (days per week)? 45.4% Use Their TVE App on a Weekly Basis 5.3% 0 <1 1 2 3 4 5 6 7 Days Per Week 3.3% 4.5% 3.1% 7.7%

AUTHENTICATIONS BY ACCESS TYPE Although Mobile Remains the Primary Source to Access Content, Connected TV Apps are Gaining Popularity 2Q15 2Q14 Share of TV Everywhere Authentications by Access Type ios Browser Android TV Enabled Devide 50% 13% 16% 21% 51% 19% 20% 10% Source: Adobe U.S. Digital Video Benchmark 2Q15; adobe primetime; TV connected devices=apple tv, roku, gaming console,amazon fire tv, smart tv, other +110%

FREQUENCY In Fact, TV Everywhere Viewing Frequency Has Grown 35% Among TV Connected Devices 4.7 4.8 Browser Source: Adobe U.S. Digital Video Benchmark 2Q15; adobe primetime TV Everywhere Viewing Frequency By Access Type (monthly avg authenticated video/visitor) 8.4 7.9 Video Visitor 8.6 9.2 7.2 9.7 Android ios TV Connected Device

LEADS TO MORE TV VIEWING TVE Leads To Increased TV Viewing: Nearly Two-Thirds Of All Viewers Who Use TV Everywhere Watch More TV Overall Source: Viacom study: TV Everywhere remains a valuable diamond in the rough 5/14 64% Of All Viewers Who Watch TV Everywhere Say They Now Watch More TV Overall For Millennials, Trend is More Pronounced; 72% Watch More TV Overall

PROVIDES VALUE TV Everywhere Provides Value Adds Value To Pay-TV Subscription/Preserves Pay TV Retention 93% say a good TV Everywhere experience made it more likely they would stay with their current pay- TV provider (Viacom Study: TV Everywhere Remains a Valuable Diamond In the Rough). Creates A More Favorable Impression Of Networks That Have TV Everywhere App - 68% of TV Everywhere users. (Viacom Study: TV Everywhere Remains a Valuable Diamond In the Rough). Increases Consumer Loyalty presents opportunities for brands to grow and strengthen fan relationships. Flexibility enables instant access to premium content from any device. Retains Viewership with ease of watching content on any device, your viewers remain engaged with your content for long term.

CONTACT US If you would like additional video advertising information, insights or analysis please visit our website at www.thevab.com or feel free to contact us directly: Sean Cunningham President & CEO 212-508-1223 seanc@thevab.com Jason Wiese VP Strategic Insights 212-508-1219 jasonw@thevab.com Follow us on and like us on Danielle DeLauro SVP Strategic Sales Insights 212-508-1239 danielled@thevab.com Evelyn Skurkovich Sr. Director, Strategic Insights 212-508-1220 evelyns@thevab.com