DVR Viewing of Programs and Commercials Varies Based on Time Elapsed Between Original Airing and Playback, Nielsen Says

DVR Viewing of Programs and Commercials Varies Based on Time Elapsed Between Original Airing and Playback, Nielsen Says

Patterns also Vary Based on Program Genre

Personal Video Devices Not Yet Widely Used for Watching Television

Reports Findings at National Client Meeting in Orlando

ORLANDO, Fla., Feb. 15 /PRNewswire/ -- The Nielsen Company will today report to its national television clients that there are significant differences in the way viewers use digital video recorders (DVRs), depending upon how soon after the original telecast they play back the recording and what genre of programming they are watching. Specifically Nielsen will report that:

-- DVR playback that occurs closest to the original telecast retains more
of the audience during commercials than DVR playback that occurs
further out.

-- Certain genres such as sports and news have higher levels of live
viewing, with DVR playback occurring closer to the original telecast
than average.

In a separate presentation to clients, Nielsen will also report that about 20% of households have some form of Personal Video Device but that a mass platform for watching television on portable screens has not yet emerged.

These findings will be presented to Nielsen's annual meeting of national clients today at the Ritz Carlton Hotel in Orlando, Florida. Attending this two-day meeting will be representatives from Nielsen's various national client groups -- broadcast, cable and Hispanic networks, syndicators, advertising agencies, advertisers and marketers.

"New digital technologies are changing the way people watch television and Nielsen is committed to helping clients understand and measure this new viewing behavior," said Sara Erichson, General Manager, National Services for Nielsen Media Research. "The information we are presenting to clients over the next two days demonstrates the complexity of the challenges and the innovative solutions we are offering to address these challenges."

Television Viewing Behavior in DVR Households

Using its NPOWER software analysis system, Nielsen reviewed the viewing behavior of sample households with DVRs during the period January 1-21. Among the highlights of this analysis, Nielsen found:

-- During the first 27 hours after being recorded, primetime broadcast
commercials gain 16% in ratings among viewers age 18-49 in households
with DVRs, with the total increase reaching 22% after seven days. This
compares to a 35% increase in ratings for broadcast programs during the
first 27 hours after the original telecast and a total increase of 47%
after seven days.

-- Among 18-34 year old viewers in DVR households, virtually all sports
and news DVR playback occurs within the same day, 85% of playback for
daytime dramas occurs within the same day and about 75% of playback of
sitcoms and primetime dramas occurs within the same day.

-- Households with DVRs watch significantly less live television than
households without DVRs, but most of that difference is made up after
seven days of DVR playback.

-- DVR viewing of primetime broadcast programming is a communal
experience. 54% of people watching DVR playback are watching with
someone else, vs. 46% who are viewing alone. This compares to a 50-50
breakdown among viewers of live programming.

-- DVR owners are younger, better educated and have higher incomes than
the average U.S. household.

-- The ratings contribution of VCRs continues to decline. VCR recording
contributed 2.4% of total broadcast primetime ratings in January 2007,
compared to 3.1% in January 2006, although it is higher (5.4%) during
weekday afternoons.

Consumer Usage of Personal Video Devices

Nielsen also presented an overview of the emerging platforms for viewing video on personal devices. Based on data reported from Nielsen's quarterly Home Technology Study, its National People Meter panel and its panel of iTunes users, Nielsen reported that:

-- 19% of households have at least one Personal Video Device (PVD). The
largest penetration is for portable DVD players (10% of households) and
video enabled cell phones (5% of households). Only 4% of households
own a video-enabled iPod or MP3 player.

-- Playing video on a personal device has not yet become an ingrained
habit. Even among PVD owners, about two-thirds say that it has been
more than a week since they watched something on their portable player.

-- About a third of iPod owners played a video file during the 4th quarter
of 2006. 40% of those users who played video do not own a video iPod,
meaning they are watching the video clips through iTunes on their
personal computer.

-- Even among iTunes video users, 95% of all daily playback time (50
minutes and 30 seconds) is audio. The average iTunes video user plays
video files only two and a half minutes per day.

-- Users of personal video devices tend to have higher incomes, more
education and larger families.

The National Client meeting is an opportunity for Nielsen to share more in-depth information to clients and to provide a forum for discussion. This year's theme of "connecting information" looks at ways that clients can integrate various forms of measurement data that Nielsen provides.

Additional topics on the first day of the meeting offered: an update on plans to transition to one sample for Spanish language and English Language television by September 2007; a review of the recently announced timetable for releasing commercial minute ratings data in NPOWER, the All Minute Data File and the new Average Commercial Minute data files; and preliminary results from a study commission by the Council for Research Excellence on media consumption in and outside the home.

The second day of the meeting will feature: an update of a pilot test being conducted by Project Apollo, the joint venture between Nielsen and Arbitron; a review of the capabilities of Nielsen DigitalPlus, Nielsen's new business for helping clients understand the uses to which set top box data can be put; and an overview of new and emerging trends in consumer electronics.

About The Nielsen Company

The Nielsen Company is a global information and media company with leading market positions and recognized brands in marketing information (ACNielsen), media information (Nielsen Media Research), business publications (Billboard, The Hollywood Reporter, Adweek), trade shows and the newspaper sector (Scarborough Research). The privately held company has more than 42,000 employees and is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA.

First Call Analyst:
FCMN Contact:

Source: The Nielsen Company

CONTACT: Gary Holmes, +1-646-654-8975

Web site: http://www.nielsen.com/

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