thinkbox topline telly issue 1: january-september 2006

1. thinkbox topline telly issue 1: january-september 2006

2. contents impacts & viewing commercial impacts all tv viewing hours commercial broadcast viewing hours & share top programmes by channel & platform platform & technology trends digital penetration (main tv and all sets) pay tv access pvrs hdtv mobile & iptv reach total reach commercial broadcast reach platform reach tv expenditure category, advertiser & brand investment

3. impacts & viewing

4. viewing summary commercial impacts up 3%, continuing the trend of long term growth on average, we watch 3.5 hours of tv every day commercial channels now account for two thirds of our viewing & this is set to increase until 2012

5. impacts are still on the up commercial broadcast’s impacts have risen 3% in 2006, continuing the long-term growth trend of the last decade millions audience source: barb/infosys q 1, 2 & 3

6. we spend more time with tv than any other medium on average, we watch over three and a half hours of television every day. autumn & christmas viewing should increase 2006 to last year’s levels ave. hours per day audience • 2006 should match 2005 levels by end of year.source: barb/Infosys

7. commercial broadcast tv accounts for most of our viewing commercial channels account for nearly two thirds of our tv viewing & this will continue to increase in line with digital uptake ave. hours per day audience source: barb/Infosys

8. and commercial’s share will continue to grow… by 2012 weekly share for commercial channels should increase by almost 10% average weekly share% year

9. itv1’s top programmes world cupfever swept the nation over summer, but itv’s staples continued to perform well source: barb/infosys

10. channel 4’s top programmes big brother again reigned supreme & deal or no deal became the surprise hit of the year so far source: barb/infosys

11. five’s top programmes csi continued to pull in the viewers for five along with films and quality drama source: barb/infosys

12. all digital top programmes: non-sport comedy, drama and sci-fi are what viewers like on digital! source: barb/infosys

13. all digital top programmes: sport football was the biggest pull for all sport lovers source: barb/infosys

14. platform & technology trends

15. platform & technology summary 72% of homes have digital access & 44% of these pay for tv content freeview is increasing digital reach on secondary sets but sky remains the main platform in the living room pvr penetration is increasing. 7% of households have Sky+ (an estimated 1% have non-sky pvrs) over 1% of homes now subscribe to hd channels mobile tv becoming more popular than ringtones

16. sky & freeview driving digital uptake on main sets there are 25.3 million tv homes in the uk 72% are now digitally enabled, that’s 12% more than predicted in 1999*. sky is the dominant platform for main sets ADSL: 0.2% Cable: 13.1% Analogue Terrestrial: 28% Free Satellite: 2.8% Pay Satellite: 30.7% Digital Terrestrial: 25.3% source: ofcom 2006 , *dresdner kleinwort benson research

17. freeview has greater presenceon secondary sets but freeview overtakes when all sets are taken into account & is driving digital take-up outside of the living room Cable: 7% Free Satellite: 2.8% Pay Satellite: 14.7% Analogue Terrestrial: 57.6% Digital Terrestrial: 19.4% source: ofcom 2006

18. we are increasingly paying to access tv content pay tv is growing steadily. 44% of us now pay to access content Digital Satellite: 30.7 Digital Cable: 13.10 Free (Analogue, Freeview & Freesat): 56.1% source: ofcom 2006

19. and the opportunity to act as our own scheduler • pvrs: • 1.7m subscribers to Sky+ (20% of all Sky homes, 7% of all homes.) • additional 1% have non-sky pvrs • merril lynch estimate 8% total PVR penetration by the end of the year • pvr viewers watch more tv & more ads. 85% of viewing still live & more than half of all recorded programmes are watched on the same day as transmission source: sky, barb

20. picture quality is increasingly important • hdtv: • 96,000 Sky subscribers (1.2% of all Sky subscribers) • fastest ever take-up of an additional sky product • 800,000 - 1m hdtv set sales by july 07 according to continental research • there are currently 8 specialist hdtv channels • 43% of 16-24s excited about the prospect of hdv* source: sky nov 2006

21. and tv is moving into new domains mobile & iptv: c. 7 million people are now watching tv via their mobile phone or broadband – a 37% increase since march* vodafone’s mobile service now more successful than ringtones According to ims, by 2011, half a billion people will be watching tv on their mobile phones gartner predict there could be 48m iptv users by 2010 source: ofcom, *contentworxx aug 06

22. tv’s reach

23. reach summary tv reaches over 90% of people every single week commercial reach is growing and is now only fractionally behind that of total tv the digital platforms reach nearly 65% of individuals each week

24. virtually all of us watch tv tv reaches over 90% of the populationevery single week, ensuring it remains the most visible medium reach % audience source: barb/infosys

25. commercial tv hits 90% of us every week commercial tv goes from strength to strength – commercial reach is now only fractionally behind that of total tv reach % audience source: barb/infosys

26. sky & freeview’s reach is climbing digital’s reach is growing, but there are still marked profile variations by platform reach % audience source: barb/infosys

27. weekly reach is strong across platforms however, the digital platforms combined reach nearly 65% of individuals over the course of every week reach % audience source: barb/infosys

28. tv investment

29. investment summary motors remain the dominant tv sector finance have increased spend 16% since last year p&g and unilever are still the biggest spenders on tv dfs is now the highest spending brand on tv with a massive increase in investment since last year

30. top spending tv categories motors remain are the dominant tv spender in the uk’s category sector, but finance has shifted up after a 16% increase yoy source: barb/infosys

31. top spending tv advertisers proctor & gamble arethe biggest uk tv spender for 2006 but there have been changes at the top with loreal, tesco & vauxhall massive upping spend source: barb/infosys

32. top spending tv brands dfs are the top spending tv brand after a spectacular increase in tv spend * based on previous spend of £1.38m. source: barb/infosys