Slides Com Score - TV 2.0

MEASURING THE DIGITAL WORLD

Online Video:The new face of the InternetOnline Video:The new face of the Internet

Impressive growth in Brazil Impressive growth in Brazil

■ Everyone is getting in to the game (both with UG and professional content)

■ UVs to Globo Videos up 35% in last eight months (5.9M in June)

■ UVs to YouTube.com up 42% in last eight months (9.1M in June)

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Proprietary and Confidential Do not distribute without written permission from comScore

eight months (9.1M in June)

■ Total visits to Globo Videos and YouTube.com up 25% and 50% in last eight months, respectively

■ Globo Videos reached 30% of Brazilian online population in June, YouTube.com reached 46%

Plenty of room for more too Plenty of room for more too

■ Brazil ranks 14 out of 37 countries in terms of average number of visits to multimedia sites each month

■ Low Broadband penetration limits engagement and audience





■ Brazil ranks 32 out of 37 in terms of average minutes per visitor

■ Brazil ranks 36 out of 37 in terms of average minutes per visit

■ Introduction to comScore

- Who we are & what we do

■ A look at some trends in visitation

- A look at global and regional traffic to select video sites

Stay tuned…Stay tuned…


■ A look at online video in the US

- The impact of Broadband

- A closer look at the US online video audience

- Online vs TV and other trends of note

■ Key points & conclusions

- What to watch out for?


Company Background & OverviewCompany Background & Overview

About comScore: what we do & howAbout comScore: what we do & how

■ Actively recruit panelists from around the world through a variety of online channels (www.permissionresearch.com)

■ All panel members voluntarily register to participate

■ Passively monitor, analyse and report panel’s online activity

■ Panel is a representative cross section of the global online population


■ Panel is a representative cross section of the global online population

■ Help clients better understand the Internet, how it is being used, by whom, where, and when, and how it can deliver superior ROI

■ comScore offers a variety of syndicated services and customized research solutions providing insight in to online behavior

= A global leader in measuring the digital world

34 Countries Processed and Reported Separately34 Countries Processed and Reported Separately

Close to 2 million panelists worldwide, with data collected from over 170 countries

Proprietary and Confidential Do not distribute without written permission from comScore 7



Online Video:A look at the trafficOnline Video:A look at the traffic

Worldwide - Total unique visitors to YouTube.com and % reach of internet audience*Worldwide - Total unique visitors to YouTube.com and % reach of internet audience*

20.0

40.0

200,000

400,000 Total …


Source: comScore Media Metrix, comScore Video Metrix

0.00

* comScore World Metrix universe is comprised of the audience ages 15+, accessing from home and work locations

Total unique visitors to YouTube.com – broken down by countryTotal unique visitors to YouTube.com – broken down by country



Source: comScore Media Metrix – June 2008

Latin America - Total unique visitors to YouTube.com and % reach of internet audience*Latin America - Total unique visitors to YouTube.com and % reach of internet audience*

50.0

100.0

20,000

40,000 Total …


Source: comScore Media Metrix

0.00


Brazil – Total unique visitors to YouTube.com and % reach of internet audience*Brazil – Total unique visitors to YouTube.com and % reach of internet audience*

50.0

5,000

10,000 Total …



0.00



Online Video in the US:A closer lookOnline Video in the US:A closer look

Broadband penetration in the US is increasing at a faster rate than unique visitor growthBroadband penetration in the US is increasing at a faster rate than unique visitor growth

July ’08

84.8% Home

Total Internet Population and Home Broadband Penetration


84.8% HomeBroadband Penetration

189 MillionInternet Users


In general, Broadband Users:

– Spend 50% more time online

– Consume 5x as many pages

– Visit the Internet 5x as often

Broadband users:

Broadband users stream much moreBroadband users stream much more


Broadband users:

2.5B total visits to YouTube.com globally in July, with avg of 16.6 minutes per visit

Dial-up users:

19M total visits to YouTube.com globally in July, with avg of 10.2 minutes per visit

Source: comScore Media Metrix, March 2008; comScore Marketing Solutions

Online video in US is a large part of user experienceOnline video in US is a large part of user experience

50.00%

60.00%

70.00%

80.00%

90.00%

180

185

190

195

Total Internet users (millions) Percent of Internet users who streamed


FLV Measurement was added in July 2006 driving a large part of the incremental growth versus June and prior months.


0.00%

10.00%

20.00%

30.00%

40.00%

155

160

165

170

175

Video consumption in US shows continued growth, with June 2008 reaching over 11.4 billion streamsVideo consumption in US shows continued growth, with June 2008 reaching over 11.4 billion streams

US online video audience in June 2008 was 142 milli on

10,000,000,000

12,000,000,000

14,000,000,000

100,000,000

120,000,000

140,000,000

160,000,000

Number of people streaming Streams


*FLV Measurement was added in July 2006 driving a large part of the incremental growth versus June and prior months.**Fox Interactive Media was not included in the November report due to an unusual implementation of an RTMP on MySpace which did not allow us to accurately distinguish video

streams from audio streams.


0

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

0

20,000,000

40,000,000

60,000,000

80,000,000


Online Video in the US:A closer look at the audienceOnline Video in the US:A closer look at the audience

Streaming is well represented across all demographic segmentsStreaming is well represented across all demographic segments

Total Internet Video Streaming Index to Total Interne t

All Females 51% 50% 99

All Males 49% 50% 101

Female: 18+ 41% 41% 100

Female: 18-34 14% 14% 101

Female: 25-49 22% 23% 104

Female: 25-54 27% 27% 103

Female: 55+ 8% 7% 93


Source: comScore Video Metrix, June 2008

Female: 55+ 8% 7% 93

Male: 18+ 39% 40% 101

Male: 18-34 13% 14% 107

Male: 25-49 21% 22% 104

Male: 25-54 25% 26% 103

Male: 55+ 8% 8% 92

Persons: 18+ 80% 81% 101

Persons: 18-34 28% 29% 104

Persons: 25-49 43% 45% 104

Persons: 25-54 51% 53% 103

Persons: 55+ 16% 15% 92

Streaming engagement by content categoryStreaming engagement by content category

Multimedia, which includes sites like YouTube and MTV, appears to be the most popular among entertainment streamers:

Streamers (MM)

Streamer Reach

Streams (MM)

Streams/ Streamer

Minutes/ Streamer

Entertainment 103 75% 2,445 24 65Multimedia 83 61% 1,545 19 57TV 36 26% 361 10 24Entertainment - Music 25 18% 191 8 21Kids 25 19% 324 13 15Entertainment - Movies 18 13% 55 3 4Radio 13 10% 106 8 19


Source: comScore Video Metrix, June 2008

entertainment streamers:

•Over 1.5 billion streams are served in the multimedia category by over 83 million streamers

•Users are viewing these streams on average for 57 minutes each month!

13 10% 106 8 19Humor 6 5% 31 5 9Entertainment - News 6 4% 23 4 4

Portals 92 67% 1,123 12 17Conversational Media 54 40% 538 10 13

Social Networking 53 39% 534 10 13Retail 27 20% 125 5 26News/Information 45 33% 300 7 12

General News 35 26% 221 6 12Weather 8 6% 24 3 2

Sports 21 15% 155 8 21Community 32 24% 303 9 13

Family 22 16% 256 12 13

All streamers are not equalAll streamers are not equal

841 mins 77 minsAvg. Monthly Avg. Monthly Time

% of Population

Heavy Streamer Light StreamerMedium Streamer

6 mins

20% 50%30%


StreamingTime

Streaming

Avg. Number of Videos Viewed

50 Videos247 Videos 8 Videos

Based on total number of videos streamed during one monthSource: comScore Marketing Solutions

87% 2%12%

72% 6%22%

Gender

The streamer segments are distinctThe streamer segments are distinct

Age


Household SizeHousehold Income

Demographic Characteristics

A closer look at the heavy streamersA closer look at the heavy streamers

Media Consumption

Skews compared to Total Internet■ 18-24 age group■ Males■ $100K+■ Household Size: 1

Average weekly consumption■ 69% watch TV 7+ hours■ 36% use the Internet 13+ hours■ 21% listen to the radio 7+ hours


Top Streaming CategoriesTop Streaming Sites

■ YouTube.com■ MySpace.com■ Yahoo!■ Viacom Digital■ AOL

■ Entertainment■ XXX Adult■ Portals■ Services■ Conversational Media


Online Video in the US:Online vs TV, and trends of noteOnline Video in the US:Online vs TV, and trends of note

Online streamers are typically heavy consumers of both TV and the InternetOnline streamers are typically heavy consumers of both TV and the Internet

Hours per Week Consuming Media

20%

30%

40%Internet TV Radio

1. 69% of streamers view TV for 7 or more hours per week

2. 40% view TV for 13 or


0%

10%

20%

Never Lessthanonceper

week

Lessthan 1hour

1 to 2hours

3 to 6hours

7 to 13hours

Morethan 13hours

2. 40% view TV for 13 or more hours per week

3. Slightly less spend 7 or more hours per week on the Internet (56%)

1a. Using the scale below, please tell us on average, approximately how many hours per week you spend doing each of the following?

In 2007, the Internet’s reach approached TV’s from 6 to 8pm and exceeded it from 8 to 10amIn 2007, the Internet’s reach approached TV’s from 6 to 8pm and exceeded it from 8 to 10am

40

50

60

70%

Peo

ple

15+

Usi

ng M

ediu

m

TV


Source: National People Meter (US), comScore Media Metrix 2007

0

10

20

30

Midnight 2:00 AM 4:00 AM 6:00 AM 8:00 AM 10:00 AM

12:00 PM

2:00 PM 4:00 PM 6:00 PM 8:00 PM 10:00 PM

% P

eopl

e 15

+ U

sing

Med

ium

Internet

TVInternet

Different content is being viewed online vs TVDifferent content is being viewed online vs TV

Top Internet Streaming CategoriesTop TV Genres

■ The type of content consumed online is not necessarily the same content that is most popular in viewing on TV

■ This confirms that streamers are using online video as a complement to television – not a replacement


Top Internet Streaming CategoriesTop TV Genres

Favorite “Live” TV Genre:

■ Sports Events■ Drama■ News■ Science Fiction■ Situation Comedy■ Talent/Reality

Internet Categories by Highest Reach

■ Entertainment - Multimedia■ Portals■ Conversational Media■ TV■ XXX Adult■ News/Information

Full length shows vs highlightsFull length shows vs highlights

■ The most popular content for full length shows is significantly different than the most popular for abbreviated versions or “highlights”

■ Streamers are viewing content more suited to highlights such as general, sports, and entertainment news, while watching full length programming in the form of TV shows and movies


Top Online Content for HighlightsTop Online Content for Full Show

■ Drama■ Feature Films■ Science Fiction■ Daytime Soaps■ Situation Comedy■ Game Shows

■ Sports news/updates■ Entertainment news■ Sports events■ News■ Instruction/Advice/Talk■ Animation/Cartoons

User-generated content vs professional contentUser-generated content vs professional content

■ The online video marketplace is dynamic, complex, growing and yet to be fully monetized

■ New types of online video and video properties emerging each month (UGC, branded content, TV shows, web-isodes etc.)

■ Advertisers insecure with UGC, more comfortable with premium content


■ UGC represents almost 95% of the traffic, but 5% of the advertising

■ Ad-supported premium content growing rapidly - ABC, CBS, NBC, Fox and MTV offer ad-supported streaming

■ There is more video ad space available now than in the past. More and more video content will become ad supported, not just paid-downloads

Streamers would rather watch an ad than pay a fee to

watch online videos

Streamers would rather watch an ad than pay a fee to

watch online videos

■ 60% of respondents would rather watch online video ads than pay a fee

■ 36% don’t mind advertisements less than 15 seconds

■ Only 28% feel that online ads are more disruptive than television ads


Online video ad spending in the US forecasted to grow 62% per year thru 2013Online video ad spending in the US forecasted to grow 62% per year thru 2013

■ 56% growth forecasted ’08 vs ’07

■ 62% avg for ’07 thru ’13

■ Total online expected to grow 17% in ’08

■ Will account for 9.8% of all

62%


■ Will account for 9.8% of all online spending in 2013

■ $324 million in ’07 is only 0.5% of total ad dollars spent on TV

56%

Source: eMarketer, August 2008


Online Video:ConclusionsOnline Video:Conclusions

The State of Online Video What to watch for in Brazil

■ Usage goes mainstream – visitation and engagement very impressive

- Almost 300M UVs to YouTube.com in June 2008, up more than 50% YOY

- 5.9M UVs to Globo Videos in June

■ Increasing Broadband access will greatly increase audience & engagement, clear signs of market potential

■ Viral effect - sharing / embedding and interactivity becoming more popular

■ Online video not only UGC, major

ConclusionsConclusions


- 5.9M UVs to Globo Videos in June

■ Diverse audiences consuming various types of online video (shows, highlights)

■ Heaviest consumers of video tend to skew to Males below the age of 35

■ In the US, the Internet had a larger reach than TV from 8-10am last year

■ Many online video alternatives – major networks, UGC, independent s etc.

■ Online video not only UGC, major advertisers and studios should plan accordingly

■ Different kinds of content consumed online, not just sports and news

■ Online video advertising to increase rapidly

■ Brand marketers experiment, as do publishers with new ad and content formats


Thanks for your time and attention!

http://www.comscore.com/slides

Thanks for your time and attention!

http://www.comscore.com/slides

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Slides Com Score - TV 2.0