Scott L. BrownVice President Of Marketing & Technology

TVB Media Technology Panel New Technology and Measurement Challenges

Converging Mediums

Traditional television Passive - viewer impressions Creates mass awareness

Internet Interactive – click streams Facilitates targeted sale completion

Interactive television (ITV) TV – powerful mass medium Internet – powerful information source Effectiveness as a measure

New Terms

Stickiness Click through rates Frequency Session Behavioral profiling Cost per click Walled gardens Enhanced TV Individualized TV

Technology Impact

PCTV Personal Video Recorders Digital Television Convergence Streaming Internet Interactive TV Ecommerce PPV, NVOD, VOD

Broadcast NetworksCable Networks

SyndicatorsStations

Microsoft

GIS/AZenith

Sun JavaTVGeocast

OpenTVReplayTVTiVo

PanasonicSony

New Model and New Players For Television

Equipment Manufacturers

Software, Platforms & Processes

Content Providers

Consumer Impact

Viewer as a programmer Dynamic video server in the home Ratings – Program, Commercial … ? Back channel – rich data opportunity Interactive TV - Targeted marketing,

transaction based, response oriented All in one devices

The Road Ahead IsThe Road Ahead Is Filled With ChangeFilled With Change

AnalogTV

DBS

AdvancedSet Tops

PVR’sDigital

Set Tops

PCTV

DTV Interactivity

Nielsen Measurement Solutions

HardwareHardwareApplicationsApplications

SoftwareSoftwareApplicationsApplications

Drivers For A New System

1.1. TV content becoming more complexTV content becoming more complex2.2. Further fragmentation with new Further fragmentation with new

sourcessources3.3. Interactivity growth in stair-step Interactivity growth in stair-step

fashionfashion4.4. CE manufacturers impact TV CE manufacturers impact TV

marketplacemarketplace

Primary - Apply codes to television contentPrimary - Apply codes to television content

Backup - Utilize signatures/fingerprintsBackup - Utilize signatures/fingerprintsSecondary - Software engines/applicationsSecondary - Software engines/applications

Our ApproachOur Approach

First DTV Measurement Approach

Advanced NMR-built device for MKII and A/P Audio correlation, PSIP reader Digital data packet reader Device is in system testing

Sample AudioSample Audio

Correlate Avail.Correlate Avail.Audio SourcesAudio Sources

ID ChannelID Channel

FeedFeed

PCTV tunerPCTV tuner

A/P Measurement Techniques

Broadcast Networks Cable Networks Syndicators Stations

Applying codes to television content at distribution

Video CodesAudio Codes

Every program carries an identifying code

Strategic Relationships Nielsen technology relationships

DirecTV Echostar ReplayTV TiVo Metabyte ACTV And more ….

Primary measurement Definitive agreements

Software Measurement Engines

API development Porting to CE devices Advanced capability set New data elements New reporting elements

Utilizing CE relationships for: 1) Advanced television2) Internet3) ITV4) Digital Set tops

A/P Passive Measurement

Utilizing Fingerprint information for television content

- Audio Signature – zero-crossing algorithm

- Video Signature – pixel contrast sampling

• Additional crediting method• Physical architecture useful for verification and reporting of coverage

A/P Distribution

Audio/Video EncodeBroadcast/Cable Net

198 09/11/97 12:32:04

New A/P MeterNew Monitoring Site198 09/11/99 12:32:04 198 09/11/99 12:32:04

Station orCable System

Satellite Uplink

Near Future – Interactive DTV

Exciting New Stuff!

The TV Lab

Convergence Panel

Extended Home

TBA

Is CommercialTelevision At An End?

“The New Technology from TiVo and ReplayTV provides the ultimate in television convenience. It will also spy on you, destroy prime time and shatter the power of the mass market.” NYT 8/13/2000

“OR NOT” NMR 8/17/2000

National TV Lab

Convergence Panel

Separate 200 home/500 person PM equipped panel with NetRatings measurement

100+ homes already installed Measure TV and internet usage Identifies cross marketing

opportunities Early gauge for building media plans

Extended Home

Measure offline TV usage in primary dwelling and vacation home or college housing Sample of 24 total homes Learn about opportunities, variables,

and barriers

Transitional Strategy

Nielsen as the bedrock Information for new

programming, new marketing, new technologies

Brand power – content kings reaching for new opportunities, new revenue streams, etc.

Partnering & alliances

NMR Vision

New Media Panels

Interactive Panels

Data Aggregation

Assess impact and uses of new technology

Define potential new business models/currencies

Validate data captured by new tech players

Partnerships Value added newmedia services