This document summarizes online video trends in Europe. It finds that while growth of unique viewers and video views slowed in 2010, consumption has since shifted to higher quality, longer videos. There is demand for a quality viewing experience, wide range of engaging content, convenient accessibility, and pricing worth paying. As supply meets this demand, online video is being driven by improved broadband, more content from broadcasters and local specialists, and user generated content supplemented by partners. Syndication and social media make video more accessible, while advanced advertising allows optimized campaigns and understanding of impact. Overall online video is becoming more integrated with television.

1. When Supply Met Demand
The Changing Shape of Online Video in Europe
Marc Gosschalk, November 2011
Senior Analyst, Video Metrix 2.0 Product Management

2. Agenda
 The Story So Far
 The Demand for Online Video
 When Supply Meets Demand – The Consumption of Online Video in Europe
– A Quality Viewing Experience
– A Wide Range of Engaging Content
– Convenient and Accessible
– A Price Worth Paying
 Case Study: YouTube
 Conclusions
© comScore, Inc. Proprietary and Confidential. 2

3. The Story So Far
© comScore, Inc. Proprietary and Confidential. 3

4. Online Video is a Huge Market Across Europe
226m people
watched an average of
20 hours each of
Online Video in
September in EU-7*
*EU-7 includes UK, France, Germany, Spain, Italy, Russia and Turkey
© comScore, Inc. Proprietary and Confidential. 4 Source: comScore Video Metrix, September 2011

5. Rapid growth of Unique Viewers and Video Views Stopped in Q1 2010
for EU-3*
Unique Viewers
Videos (Billions)
(Millions)
30 140
25 120
100
20
80
15
60
10
40
5 20
0 0
Feb- Aug- Feb- Aug- Feb- Aug- Feb- Aug-
2008 2008 2009 2009 2010 2010 2011 2011
Videos (Billions) Unique Viewers (Millions)
© comScore, Inc. Proprietary and Confidential. 5 Source: comScore Video Metrix, Media Trend *EU-3 includes UK, France and Germany

6. Online Video Appeared to Have Peaked in Terms of Adoption and
Market Share
Unique Viewers
Videos (Billions)
(Millions)
30 Rogers’ 140
Diffusion of
25 Innovation 120
S-curve
100
20
80
15
60
10
40
5 20
0 0
Feb- Aug- Feb- Aug- Feb- Aug- Feb- Aug-
2008 2008 2009 2009 2010 2010 2011 2011
Videos (Billions) Unique Viewers (Millions)
© comScore, Inc. Proprietary and Confidential. 6 Source: comScore Video Metrix, Media Trend

7. A Closer Look Tells a Story of a Shift from Quantity to Quality
Unique Viewers
Videos (Billions)
(Millions)
30 140
25 120
100
20
80
15
60
10 Sept 2010 March 2011
40
Minutes per Video 5.4 6.0
5 Total Minutes (bn) 111.4 117.9 20
0 0
Feb- Aug- Feb- Aug- Feb- Aug- Feb- Aug-
2008 2008 2009 2009 2010 2010 2011 2011
Videos (Billions) Unique Viewers (Millions)
© comScore, Inc. Proprietary and Confidential. 7 Source: comScore Video Metrix, Media Trend and Key Measures

8. The Last Six Months have seen a Renaissance of Online Video
Unique Viewers
Videos (Billions)
(Millions)
30 140
25 120
100
20
80
15
60
10 March 2011 Sept 2011
40
Minutes per Video 6.0 6.2
5 Total Minutes (bn) 117.9 156.9 20
0 0
Feb- Aug- Feb- Aug- Feb- Aug- Feb- Aug-
2008 2008 2009 2009 2010 2010 2011 2011
Videos (Billions) Unique Viewers (Millions)
© comScore, Inc. Proprietary and Confidential. 8 Source: comScore Video Metrix, Media Trend and Key Measures

9. Composition of Young Males Indicates Market Maturity
Unique Viewers
(Millions)
50
42.7 43.1 Total UVs 15+
45
36.6 Other
40
Males 15-34
35 30.5
30
25 20.3 21.6
18.8
20
15
10
5
17.3% 19.3% 19.6% 21.5% 22.2% 30.4% 44.9%
0
Germany France UK Spain Italy Russia Turkey
© comScore, Inc. Proprietary and Confidential. 9 Source: comScore Video Metrix, Demographic Profile, September 2011

10. Growth in Video Views Supports Latency in Spain, Italy, Russia and
Turkey
Videos (bn) – Videos (bn) – 6 Month
March 2011 Sept 2011 Growth
Spain 3.0 3.2 9%
Italy 2.3 2.7 22%
Russia 3.1 4.7 51%
Turkey 3.4 5.0 48%
© comScore, Inc. Proprietary and Confidential. 10 Source: comScore Video Metrix, Key Measures

11. But Engaged Viewers Watching Lengthy Videos Suggests they may
Make Ground Rapidly
Minutes per Minutes per
Video Viewer
Spain 6.9 1,096
Italy 6.7 914
Russia 7.2 792
Turkey 7.1 1,660
© comScore, Inc. Proprietary and Confidential. 11 Source: comScore Video Metrix, Key Measures

12. The Demand for Video – What do we Want?
© comScore, Inc. Proprietary and Confidential. 12

13. What do we Want?
1. A Quality Viewing Experience
2. A Wide Range of Engaging Content
3. Convenient and Accessible
4. A Price Worth Paying
© comScore, Inc. Proprietary and Confidential. 13

14. When Supply Meets Demand – The Consumption of
Online Video in Europe
1. A Quality Viewing Experience
2. A Wide Range of Engaging Content
3. Convenient and Accessible
4. A Price Worth Paying
© comScore, Inc. Proprietary and Confidential. 14

15. A Quality Viewing Experience: Increased Broadband Penetration and
Serving Infrastructure Drives Streaming Quality
 Improved infrastructure for delivery of content
 Advances in video quality
 Higher, flexible definition
© comScore, Inc. Proprietary and Confidential. 15

16. A Wide Range of Quality Content: TV Broadcasters Have Stronger
Online Presence in More Mature Video Markets
Total Minutes (MM) for Broadcasters in
Respective Countries
1000
900 875
816 813
800
700
600
500 460
382
400 324
300
200
100
0
BBC France Televisions ProSiebenSat1 Sites
Interactive
Sep-10 Sep-11
© comScore, Inc. Proprietary and Confidential. 16 Source: comScore Video Metrix, Key Measures

17. A Wide Range of Quality Content: Presence of Local Specialists
Varies by Country
 Russia
Rank Unique
Property
Viewers Reach
(000)
2 Mail.ru Group 18,247 42.3
3 Gazprom Media 14,161 32.9
4 Yandex Sites 5,648 13.1
 Italy
Rank Property Unique
Reach
Viewers
5 COMINGSOON.IT 2,693 13.3
7 Telecom Italia 2,681 13.2
10 METEO.IT 2,036 10.0
© comScore, Inc. Proprietary and Confidential. 17 Source: comScore Video Metrix, Key Measures, September 2011

18. A Wide Range of Quality Content: US Superpowers Engage Large
European Audiences that have their Own Individual Characteristics
Unique Viewers (000) in EU-7
FACEBOOK.COM 56,164 Games Category
Social Networking
Viacom Digital 30,811
Category
Technology News Have Affinities
Microsoft Sites 19,891 Category to Video Viewing
from Sites in…
Computer Hardware
Yahoo! Sites 17,799
Category
Source: comScore Video Metrix, Key Measures and Cross Viewing (taken from UK data),
© comScore, Inc. Proprietary and Confidential. 18 September 2011

19. A Wide Range of Quality Content: Online Video Suits a Variety of
Content Types
Total Minutes (MM) for
900
798
800
700
600 570 571 560
500 478
400
302
300 231 216
200 164
94 72
100 56
0
UK France Spain Italy Turkey Russia
Mar-11 Sep-11
© comScore, Inc. Proprietary and Confidential. 19 Source: comScore Video Metrix, Key Measures

20. A Wide Range of Quality Content: Low Barriers to Entry Permit New
Market Players, Including the User
250
200 Ustream
150 Vimeo
150
72 12
100 55 13
26
50 111
80 73 88 39
68 66
17
0
Spain UK France Turkey Russia Germany Italy
© comScore, Inc. Proprietary and Confidential. 20 Source: comScore Video Metrix, Key Measures, September 2011

21. A Wide Range of Quality Content: User Generated Video Content is
being Supplemented by High Quality Partner Content
• 13.2m UVs in Russia on RUTUBE.RU
• 20.1m UVs in EU-7 on RUTUBE.RU,
up 38% since March ‘11
• 16.5m Viewers in France
• 42.9m Viewers in EU-7
• 12.1m Viewers in Turkey on IZLESENE.COM
• 6.3m Viewers in Turkey on Izlesene Facebook
© comScore, Inc. Proprietary and Confidential. 21 Source: comScore Video Metrix, Key Measures, September 2011

22. Convenient and Accessible: Syndicated Nature of Online Video
Further Facilitates Expansive Reach in Relevant Contexts
Unique Viewers (000) for Perform Sports
472
989
2,924 UK
Turkey
1,610 France
Italy
Spain
Germany
2,047 2,155
© comScore, Inc. Proprietary and Confidential. 22 Source: comScore Video Metrix, Key Measures, September 2011

23. Convenient and Accessible: Broadcasters Leverage Analytics to
Build Engaged and Loyal Audiences
 Searchable, huge inventories aren’t
burdened by schedules
 Tailored browsing and viewing driven
by data
Audience Overlaps – Unique Viewers
6.9m
3.9m
3.7m 2.8m 1.9m 1.7m
0.6m 0.4m
© comScore, Inc. Proprietary and Confidential. 23 Source: comScore Video Metrix, Audience Duplication, September 2011, France / Spain

24. Convenient and Accessible: Online Video can Leverage the Power of
Social Media
% Visiting
Topgear.com
Total Internet 1.6%
Fans Exposed to Brand
Messages on Facebook
9.5%
‘Friends of Fans’ Exposed to
Brand Messages on Facebook
5.0%
© comScore, Inc. Proprietary and Confidential. 24 Source: comScore Social Essentials, September 2011

25. A Price Worth Paying: Room for Growth in Online Video Ad
Penetration Compared with TV
Percentage of Total Viewing Time Spent Watching Ads
Online Video - UK Online Video - US TV - UK
0.4% 1.4%
20
~ 20%*
*Estimate
© comScore, Inc. Proprietary and Confidential. 25 Source: comScore Video Metrix, Key Measures, September 2011

26. A Price Worth Paying: Online Video Advertising Creatives can be
Tested for more Predictable Outcomes
Engagement
Avg. Views
Score
Top 10 Highest
325,000 62%
Scoring Video Ads
Lowest 10 Scoring
17,000 21%
Video Ads
© comScore, Inc. Proprietary and Confidential. 26 Source: comScore and ARS Viral Scoring Database, US

27. A Price Worth Paying: Online Video Offers Attractive Audiences in a
Retail Environment that can be Easily Planned Against
Composition Index of Audience with
Household Income over £35k*
200
180
160
140 173
120 131
100
80
60
40
20
0
TED.COM (UK) Joost Media (France)
*€36k in France
© comScore, Inc. Proprietary and Confidential. 27 Source: comScore Video Metrix, Demographic Profile, UK/France, September 2011

28. A Price Worth Paying: Campaign Delivery and Impact can be
Understood
 The emergence of View-Through as a valuable metric
 Digital traces and flexibility allow for tailored
– Duration
– Placements
– Formats
– Creatives and Messaging
 Dynamic decision making
© comScore, Inc. Proprietary and Confidential. 28 Source: comScore Campaign Essentials and Ad Effx – Example data

29. A Price Worth Paying: Online Only and Cross Platform Audiences are
Growing Into TV Space
Cross-
Platform
Viewers 26%
TV Only
Viewers 67%
Online Only
Viewers 7%
Base sizes:
Total=2833
TV Only=1921
Online Only=189
Both TV/Online=723
‘How do you typically watch [original series TV]?’
Base: Persons who watched original series TV
© comScore, Inc. Proprietary and Confidential. 29 Research study conducted by comScore in US, May 2011

30. Case Study: YouTube
© comScore, Inc. Proprietary and Confidential. 30

31. YouTube is a Huge Market Across Europe
Over 190m people
watched an average of over
4½ hours each of
Online Video on YouTube
in September in EU-7
© comScore, Inc. Proprietary and Confidential. 31 Source: comScore Video Metrix, September 2011 data

32. Evolution of YouTube Viewing has Matched Market Trends in EU-3
Unique Viewers
Videos (Billions)
(Millions)
12 105
10
100
8
95
6
90
4
85
2
0 80
Jul-2010 Oct-2010 Jan-2011 Apr-2011 Jul-2011
Videos (Billions) Unique Viewers (Millions)
© comScore, Inc. Proprietary and Confidential. 32 Source: comScore Video Metrix, Media Trend, UK, France and Germany

33. YouTube’s Transition has been Driven by Matching Demand for
Longer, more Premium Content
Total Minutes Minutes per
(Billions) Video
40 4.0
35 3.5
30 3.0
25 2.5
20 2.0
15 1.5
10 1.0
5 0.5
0 0.0
Jul-2010 Oct-2010 Jan-2011 Apr-2011 Jul-2011
Total Minutes Minutes per Video
© comScore, Inc. Proprietary and Confidential. 33 Source: comScore Video Metrix, Media Trend, UK, France and Germany

34. A Quality Viewing Experience
 Vast infrastructure for delivery of content
 Advances in content quality
 Higher, flexible definition
© comScore, Inc. Proprietary and Confidential. 34

35. A Wide Range of Engaging Content
Unique Viewers (000) for Machinima @ YouTube
793
UK
1,030
Germany
3,765
France
1,346
Russia
Spain
1,457 Italy
Turkey
2,570
1,682
152,000 UVs in the UK
© comScore, Inc. Proprietary and Confidential. 35 Source: comScore Video Metrix, September 2011 data

36. Convenient and Accessible
Millions
200
Searches in
Europe (billions)
150
100
8.0
50
Rest of the Web
0 46.5
Unique Unique
Visitors Viewers
EU-7 EU-7
© comScore, Inc. Proprietary and Confidential. 36 Sources: comScore Media Metrix, Video Metrix and qSearch, September 2011

37. A Price Worth Paying
 Free Content
 Unobtrusive Ads
– Encourage the User to remain in control
– Offer transparency to facilitate relevant placement
© comScore, Inc. Proprietary and Confidential. 37 Source: comScore Video Metrix, September 2011 data

38. Conclusions
© comScore, Inc. Proprietary and Confidential. 38

39. Conclusions
 A New Age for online video is emerging around quality, not quantity
 The internet provides perfect foundations for viewers to watch what they want,
how they want, when they want
 Online video advertising can be more powerful without being intrusive
 An increasingly complex and competitive market makes informed decision
making critical
“Every time we think about making a
decision, we think about doing
experiments and proving that the
results make sense… Companies
should be saying ‘What information can
I gather, how can I understand my
users better?’… and doing the analytics
over that to make decisions”
© comScore, Inc. Proprietary and Confidential. 39

40. Thank You! Questions?
mgosschalk@comscore.com +44 207 099 1779
© comScore, Inc. Proprietary and Confidential. 40