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TiVo Research Study Uncovers up to $88 Million in Lost Network Ad Revenue on Just Ten Broadcast Network Shows Alone

Moving From a C3 to C7 Rating Could Increase Commercial Ratings by More Than 10%

SAN JOSE, CA--(Marketwired - Apr 21, 2014) - TiVo Research, Inc., a subsidiary of TiVo Inc. (NASDAQ: TIVO), today announced the results of a thorough examination of timeshifted primetime TV viewing watched between four to seven days after a program's live airing (Live+4 to Live+7). The study reveals large increases in commercial viewership that are not captured in the current C3 metric and for which TV networks are therefore currently not compensated. The analysis, covering a wide range of networks and programs, revealed exact second-by-second program and commercial rating increases from five to 17 percent by extending the measurement window from four to seven days after broadcast.

In broadcast primetime, networks have the most to lose when utilizing the C3 ratings currency. Looking specifically at the commercial rating for ABC's Modern Family, TiVo Research saw an increase of 10.9 percent by adding viewership from four to seven days after the telecast. Based on network television ad prices, as supplied to TiVo by SQAD LLC for this project, 10.9 percent equates to a per-spot increase of $26,665. Extrapolating to a single season, based on an average of 17 spots per episode and full season of 24 first run programs, the popular family sitcom is missing out on an estimated $10.9 million in revenue per year.

"Our unique commercial audience data demonstrates the real opportunity costs created by the gaping holes in the current C3 ratings currency and how filling in the blanks can help inform negotiations in this year's Upfront. Commercial ratings based on second-by-second viewing data not measured by the ratings currency are the only way to capture user behavior in a DVR environment accurately, and therefore the only way to assess the potential value that could be unlocked by going deeper than the ratings currency," said Jonathan Steuer, Chief Research Officer at TiVo. "There's a notion among some in the industry that by simply gaming the blunt instrument of average-commercial-minute measurement the ratings currency provides, networks can gain back some of the advantage advertisers get from unmeasured viewership beyond the three-day window. The reality is that only an extended measurement approach that combines both precise measurement of media viewership and a comprehensive understanding of audience composition can enable networks and advertisers to evaluate what commercial ratings truly are over the course of a seven day viewing period."

TiVo Research analyzed commercial viewership for the 2012-2013 broadcast season, between September 2012 and August 2013, limiting the analysis to first-run, primetime programs with the exclusion of all network promos and PSAs. The results were based on aggregated, anonymous, second-by-second audience measurement data from a sample of 350,000 anonymous households with the Emmy-award winning TiVo® service.

Since this study was conducted based only on TiVo households, it provides only an upper-end benchmark of the maximum possible impact of DVR viewing. Currently, DVR penetration in the U.S. is approximately 50 percent, though TiVo households tend to be active time-shifters and commercial skippers, so actual impact is likely to be at least half of that shown and perhaps more. The table below estimates the single season revenue increase for TiVo's Top Ten Season Pass programs.

 
Single Season Revenue Increase
For TiVo's Top Ten Season Pass Programs as of May 26, 2013
Rank   Top Season Passes -
as of 5-26-13
  SQAD Market Cost   Commercial Rating Increase C4-C7   Average Spots per Episode   Average First-run Episodes per Year   Single Season C4-C7 Increase
1   THE BIG BANG THEORY   $264,526   8.1%   17   24   $8,742,055
2   MODERN FAMILY   $244,630   10.9%   17   24   $10,879,185
3   GREY'S ANATOMY   $201,177   8.0%   29   24   $11,201,535
4   NCIS   $150,718   8.8%   29   24   $9,231,176
5   THE MENTALIST   $103,791   9.6%   29   17   $4,912,220
6   CASTLE   $121,059   10.0%   29   24   $8,425,706
7   ELEMENTARY   $153,428   8.8%   29   22   $8,614,062
8   AMERICAN IDOL   $319,565   4.1%   61   18   $14,386,177
9   PERSON OF INTEREST   $172,797   7.1%   29   22   $7,827,359
10   THE GOOD WIFE   $99,460   6.2%   29   20   $3,576,582
Grand Total               $87,796,058
                         

Please contact TiVo Research at info@tivoresearch.com for additional C3 versus C7 data, including network and program genre averages.

About Research TiVo Inc.
TiVo Research, Inc., a wholly-owned subsidiary of TiVo Inc. (NASDAQ: TIVO), is a leading media marketing and analytics software company whose products help advertisers, agencies and television networks improve advertising targeting, accountability and return on media investment within the Automotive, Consumer Packaged Goods, and Pharmaceutical industries, as well as a growing number of client CRM engagements. TiVo Research's web-based Media TRAnalytics® and TV Health Ratings platforms matched the TV advertising households actually receive with the products the same households actually buy, enabling clients to find "The Right Audience®" while providing an unmatched level of transparency, measurement, media planning/selling and improved ROI. TiVo Research clients include Procter and Gamble, CBS, A&E Television Networks, ION Media, Oscar Mayer, Sunovian and Starcom MediaVest Group. More information at: www.tivoresearch.com.

About TiVo Inc.
Founded in 1997, TiVo Inc. (NASDAQ: TIVO) developed the first commercially available digital video recorder (DVR). TiVo offers the TiVo service and TiVo DVRs directly to consumers online at www.TiVo.com and through third-party retailers. TiVo also distributes its technology and services through solutions tailored for cable, satellite and broadcasting companies. Since its founding, TiVo has evolved into the ultimate single solution media center by combining its patented DVR technologies and universal cable box capabilities with the ability to aggregate, search, and deliver millions of pieces of broadband, cable, and broadcast content directly to the television. An economical, one-stop-shop for in-home entertainment, TiVo's intuitive functionality and ease of use puts viewers in control by enabling them to effortlessly navigate the best digital entertainment content available through one box, with one remote, and one user interface, delivering the most dynamic user experience on the market today. TiVo also continues to weave itself into the fabric of the media industry by providing interactive advertising solutions and audience research and measurement ratings services to the television industry. More information at: www.TiVo.com. Find us Facebook: http://www.Facebook.com/TiVo. Follow us on Twitter: http://www.Twitter.com/TiVo.

TiVo, the TiVo logo, WishList, Season Pass, and Roamio are trademarks or registered trademarks of TiVo Inc. or its subsidiaries. All other trademarks are the property of their respective owners.



Contact:
Steve Wymer
TiVo Inc.
swymer@tivo.com
(408) 519-9254