ONLINE VIDEO – WHAT DOES IT MEAN

FOR NGC?

ONLINE VIDEO GROWTH

TIME SPENT ON

VIDEO

ONLINE VIDEO

ACROSS AGE

GROUPS

ACTUAL AND SELF

REPORTED BEHAVIOR

36.5 36.7 36.8 36.8

2007 2008 2009 2010

Yet, Homes Using TV StrongSource: Nielsen Media Research. 6A-6A Mon-Sun

ONLINE VIDEO

USERS ARE MEDIA

JUNKIES

ONLINE VIDEO –

DEFINITION CHANGING

• Authentication/TV Everywhere

• Cable tru2way• IP-enabled sets• Social media in set• IPad simultaneous

viewing apps• Mobile social

opportunities

WHAT DOES THIS

MEAN FOR NAT GEO?

• Our job as researchers – put the pieces together

• What questions do we need answered? What questions have answers?

• Creating a story of online video/TV interaction to help guide NGC’s strategy

UNIQUE POSITION

• Research– Primary/Secondary– Programming– Marketing– Ad sales– Finance/Corporate– Digital

• Digital Media– Website– Digital Distribution– VOD– EST/DTO– Games– Interactive TV– Mobile Apps

KEY NGC QUESTIONS

• Linear TV – active vs. passive and changing technology

• Online video – replacement, convenience, new content?

• Streaming on computers- is this old school now?

• Social media impact – on TV, on devices, ‘recreating watercooler TV’?

• Most importantly: Content trends, what are people watching and what’s next?

NGC HAS CLEAR

REVENUE PRIORITIES Affiliate &

Ad Sales98%

Digital/ Other2%

YET WE UNDERSTAND

MEETING CONSUMERS

NEEDS

• LINEAR– NGC >70MM– Wild >40MM

• VOD– SD VOD >42MM– HD VOD >15MM– Wild SD >18MM

• MOBILE VIDEO– Verizon– Sprint

• DOWNLOAD TO OWN– iTunes– Xbox– Amazon UnBox

• ONLINE STREAMING– Hulu– MSN– Youtube– Myspace– Sling/Dishonline– TiVO

• Large disparity in behavior• We do not have good info on interaction• Each area has pros/cons in its own measurement – but

nothing reliable crosses media

NG

C L

inea

rC

um

e 2+

Wil

d L

inea

rC

um

e 2+

Vid

eoS

trea

ms

NG

Yo

utu

be

Vid

eoS

trea

ms

NG

TV

.CO

M

Tra

nsa

ctio

ns

NG

C O

nD

eman

d

Vid

eoS

trea

ms

NG

C H

ulu

iTu

nes

Sal

es

Total Number of Events

May 18, 2010

All 2010 to date. Source: Nielsen, Akamai, Rentrak, Hulu

Top Content Across Media

Top TV Telecasts1. Inside Cocaine Submarines2. Taboo: Prostitution3. Border Wars: Last Defense4. Lost Gold of the Dark Ages5. Border Wars: City Under Seige

Top Hulu Streams1. Fight Science: Pilot2. Fight Science: Sniper Keeps His Cool (Short)3. Fight Science: Mixed Martial Arts4. Fight Science: Fighting Back5. Expedition Grizzly

Top VOD Transactions1. Taboo: Nudity2. Taboo: Strange Love3. Taboo: Misfits4. Taboo: Extreme Punishment5. Taboo: Beyond the Grave

Top NGC Online Video Streams (All Shorts)1. Orangutan and the Dog2. Killer Whale vs. Seal3. Sizing Up Sperm4. Fighting Crocs5. Gorilla Machismo

All 2010 to date. Source: Nielsen, Akamai, Rentrak, Hulu

FINAL THOUGHTS

• Balance behavior with perception – neither one alone tells the TV picture

• One source of data can be misleading – need to look across sources

• Demise of linear TV is well documented and so far, untrue- but we cannot assume anything

• NGC has needed guidance from research on where to place bets– Content is king– Unique eco-system– Timing is everything – distribute wisely– There’s no immediate rush – cannot

let stories change strategy