Convergence 2016:
Factors driving change in the
2016/2017 Upfront and beyond
Tim Castree
Managing Director, North America

The Year of Headlines
Verizon buys AOL for $4.4 billion AT&T, DirecTV complete merger to form
biggest pay-TV company
F.C.C. Approves Charter Communications’
Time Warner Cable Buyout
ACQUISITION
2
Microsoft to buy LinkedIn for $26.2B in cash,
makes big move into enterprise social media

Verizon buys AOL for $4.4 billion AT&T, DirecTV complete merger to form
biggest pay-TV company
F.C.C. Approves Charter Communications’
Time Warner Cable Buyout Microsoft to buy LinkedIn for $26.2B in cash,
makes big move into enterprise social media
Twitter Beats Amazon, Verizon for Global
NFL Streaming Deal
How Will Facebook Make Money Off Live
Video? Just Look at TV.
Interpublic to Shift $250 Million in TV Ad
Spending to YouTube
The Year in Headlines
DISTRIBUTION
3

Verizon buys AOL for $4.4 billion AT&T, DirecTV complete merger to form
biggest pay-TV company
F.C.C. Approves Charter Communications’
Time Warner Cable Buyout Microsoft to buy LinkedIn for $26.2B in cash,
makes big move into enterprise social media
Twitter Beats Amazon, Verizon for Global
NFL Streaming Deal
How Will Facebook Make Money Off Live
Video? Just Look at TV.
Interpublic to Shift $250 Million in TV Ad
Spending to YouTube
Big Data Era Dawns for Advertising
Dealmakers
Nielsen Plays Catch-Up as Streaming Era
Wreaks Havoc on TV Raters
ComScore Completes $768M Merger With
Rentrak In Bid For Cross-Screen Measurement
The Year in Headlines
4

Verizon buys AOL for $4.4 billion AT&T, DirecTV complete merger to form
biggest pay-TV company
F.C.C. Approves Charter Communications’
Time Warner Cable Buyout Microsoft to buy LinkedIn for $26.2B in cash,
makes big move into enterprise social media
Twitter Beats Amazon, Verizon for Global
NFL Streaming Deal
How Will Facebook Make Money Off Live
Video? Just Look at TV.
Interpublic to Shift $250 Million in TV Ad
Spending to YouTube
Big Data Era Dawns for Advertising
Dealmakers
Nielsen Plays Catch-Up as Streaming Era
Wreaks Havoc on TV Raters
ComScore Completes $768M Merger With
Rentrak In Bid For Cross-Screen Measurement
NBCUniversal Will Start Selling TV
Advertising Programmatically This Fall
Viacom Aims to Make Data Accessible to All
Marketers
Fox Takes Stab At Programmatic TV
Advertising
The Year in Headlines
BUYING MODELS
5

4%
OTT & SMART TV
7%
TABLET
1%
OTT
5%
MOBILE
7%
COMPUTER
77%
TV
3%
MOBILE
1%
COMPUTER
93%
TV
99%
TV
100%
TV
1%
COMPUTER
% of Time
Spent on
Devices
2000 2005 2010 2015
• Cable companies begin
testing VOD and SVOD
2001
• 2005 - Youtube launches
• 2006 –Apple TV launches
• 2007 – Netflix starts streaming
• 2008 – Hulu & Roku Launches
• 2009 – Analog TV turns off
2005 - 2010
• 2013 - Broadband customers surpass
number of cable subscribers
• 2014 - Netflix wins an Emmy
2010 - 2015
CONSUMER-LED SHIFTS DRIVING CHANGE
6Source: Videology % estimates from Nielsen, eMarketer trend data.

4%
OTT & SMART TV
7%
TABLET
1%
OTT
5%
MOBILE
7%
COMPUTER
77%
TV
3%
MOBILE
1%
COMPUTER
93%
TV
99%
TV
100%
TV
1%
COMPUTER
% of Time
Spent on
Devices
2000 2005 2010 2015
Most Watched
Program
(% of Viewers)
12.3%
9.2%
7.8%
16.9%
Time Spent
on Devices
4.1
Hours
4.5
Hours
7.6
Hours
9.9
Hours
CONSUMPTION BOOMING, YET FRAGMENTING
7
Source: Highest rated programs based on Nielsen A18-49 Live+7 data.
Time spent data calculated by Videology from Nielsen and KPCB data.

Source: Nielsen Total Audience Measurement, single TV episode
(premiere of Limitless, CBS) from September 2015, all demos.
Live Viewing
Varies by Demo:
• Adults 50+ = 64% Live
• Adults 25-34 = 15% Live
HOW WE WATCH TV TODAY…A GLIMPSE IN TIME
DVR 32%
(1-7 days after airing)
Digital 8%
(1-35 days after airing)
VOD 7%
(1-35 days after airing)
Connected TV 6%
(1-35 days after airing)
DVR 2%
(8-35 days after airing)
LIVE
45%
8

THE RESULT: ADVERTISERS and MEDIA COMPANIES FACE NEW CHALLENGES
New
Players
Audience
Buying
Siloed
Tech Stacks
Fragmented
Audiences
Unmeasured &
Unmonetized
Channels
Converged
Media
Landscape
1st Party
Data
WALLED GARDENS:
Self-Made & Other
3rd Party
Data

Thank you.
Now on to the panelists…
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