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Prepared by Free TV Australia, January 2013TELEVISION YEAR-IN-REVIEW

IntroductionThis Free TV report analyses Australian viewing patterns and trends in 2012 – drawing onofficial OzTAM and RegionalTAM ratings as well as leading research sources such asNielsen and Deloitte.It aims to provide a detailed perspective and understanding of how Australians arewatching and engaging with commercial free-to-air television.

Free TV’s reach remains unrivalledSlide 3Free TV is in over 99 per cent of Australian homes and over 70 per cent of Australians have2 or more TVs. Free TV content is also being consumed across a range of other devicesboth in and outside of the home.Penetration of Technology in Australian Households99%78.0%50.0%56.0%43.0%28.8%18.0%22.0%Free TV PVRs Pay TV ConnectedTVsSmartPhonesTablets Internet GamesConsoleSources: Persons in TV households sourced OzTAM 2013 universe estimates; PVR, connected TV, smart phone, tablet and internet national penetration sourced Australian Multi-Screen Report Q3 2012, pay TV penetration sourced OzTAM Q1 2013 national universe estimate, games console estimate sourced Deloitte State of the Media Survey 2012.

9 in 10 households are now enjoying digital TVSlide 4According to the Government’s Digital Tracker, 92 per cent of homes have made the switchto digital TV. Mildura, Regional SA, Regional VIC, Northern NSW, Southern NSW andRegional QLD areas have fully transitioned to digital with metro and remaining regionalmarkets to switch off analogue by the end of 2013.Penetration of Digital TV in Australian Homes92% 92%95% 93%90% 92% 91%Freeview hasbeen a majordriver of digitaltake-up inAustralia.National Sydney Melbourne Brisbane Adelaide Perth TasmaniaSource: Digital Tracker Q3 July – September 2012; note that the Digital Tracker definition of ‘converted’ households also now includes those with pay TV or VAST satellitetelevision services.

Australians watch more than 3 hours of TV a dayDespite the diverse range of entertainment and information options and devices on whichto view content, we continue to spend, on average, more than three hours a day watchingtelevision in the home.Daily Time Spent Watching Television – Metro and Regional – (Hours:Mins)3:033:09 3:09 3:063:093:163:22 3:21Slide 62009 2010 2011 2012Metro2009 2010 2011 2012RegionalSource: OzTAM and RegionalTAM, 5 cap cities and 4 aggregated markets excluding Tasmania and WA, consolidated data for weeks 1-52/53, 2009 to 2012 (ex Easter), all people,all day, based on total television.

We spend more of our time watching Free TVSlide 7During the evenings, when the vast majority of viewing occurs, commercial free-to-airtelevision garners the lion’s share of television viewing in both metro and regional markets.Share of Television Viewing – 6pm to MidnightPay TV17.3%MetroPay TV15.9%RegionalSBS4.5%SBS4.4%ABC13.7%Free TV64.5%ABC13.6%Free TV66.1%Source: OzTAM and RegionalTAM, 5 cap cities, 4 aggregated markets ex Tasmania and WA, consolidated data for Weeks 1 – 52 2012 (ex Easter), all people, 6pm – midnight,regional shares exclude spill.

Free TV dominates across all key demosSlide 8Free TV garners the biggest share of viewing across all key buying demographics,accounting for more than two-thirds of nightly viewing amongst people aged 16-39, 40-54as well as Grocery Buyers with Kids.Share of Television Viewing – 6pm to MidnightMETROFree TV ABC SBS Pay TVPpl 16-39 70.2% 7.5% 3.0% 19.3%Ppl 40-54 67.0% 10.4% 4.2% 18.4%Ppl 55+ 58.5% 20.6% 6.4% 14.5%GBs 64.6% 15.5% 5.0% 14.8%GBs withKids71.9% 9.0% 3.2% 15.9%REGIONALFree TV ABC SBS Pay TVPpl 16-39 71.7% 7.5% 2.9% 17.9%Ppl 40-54 68.4% 10.3% 4.2% 17.2%Ppl 55+ 61.4% 19.0% 6.0% 13.6%GBs 66.3% 14.6% 4.8% 14.4%GBs withKids72.3% 8.8% 2.9% 15.9%Source: OzTAM and RegionalTAM, 5 cap cities, 4 aggregated markets ex Tasmania and WA, consolidated data for Weeks 1 – 52 2012 (ex Easter), 6pm – midnight, regional excludesspill.

Even pay TV viewers prefer to watch free-to-airPeople in pay TV homes watch more free-to-air television than pay TV during the eveningsdespite the fact that they are subscribers to a paid television service. This attests to thequality offering delivered by free-to-air broadcasters in Australia.Slide 9Share of Viewing in Pay TV Homes – 6pm to MidnightPay TV46.6%Free-to-air53.4%Source: OzTAM, national pay TV database, consolidated data for Weeks 1 – 52 2012 (ex Easter), 6pm – midnight, total people.

In fact, 14 million tune into Free TV every daySlide 10The reach of Free TV is second-to-none. Every day, 14 million Australians tune in to watchtheir favourite programs on commercial free-to-air television.Free TV Average Daily Reach – Metro and Regional14.0 million 14.0 million13.5 million13.0 million 13.0 million2008 2009 2010 2011 2012Source: OzTAM and RegionalTAM, 5 cap cities, 5 aggregated markets excluding WA, weeks 1 – 52/53 2008 to 2012 (ex Easter), all people, all day, metro and regional daily reachfigures are combined to form a national estimate, excludes spill, total commercial free-to-air only (Free TV), 2010 to 2012 years based on consolidated data, figures rounded.

Free TV’s average audiences remain highSlide 11New technologies are not detracting from commercial free-to-air television’s ability to driveaudiences. In fact, the overall trend shows Free TV’s average audiences - across the dayand during the evenings - are on the rise.Average Audiences – YOY – Metro MarketsAll Day6pm to MidnightFree TVPay TV2009 2010 2011 20122009 2010 2011 2012Source: OzTAM; 5 cap cities, consolidated data for weeks 1-52/53 2009 to 2012 (ex Easter), total people, all day (2am – 2am) and 6pm – midnight, based on average audiences.

Regional audiences are also very strongSlide 12Regional markets have seen significant audience growth, with average audiencesincreasing by 18 per cent during the day and 21 per cent in the evenings since 2009.Average Audiences – YOY – Regional MarketsAll Day6pm to MidnightFree TVPay TV2009 2010 2011 2012 2009 2010 2011 2012Source: RegionalTAM, 4 aggregated markets excluding Tasmania & WA, consolidated data for weeks 1-52/53 2009 to 2012 (ex Easter) total people, all day (2am – 2am) and6pm – midnight, based on average audiences.

Free TV’s multi-channels are performing wellSlide 13Free TV’s digital channels are proving increasingly popular with viewers – they nowcollectively garner a 16.2 per cent share of evening viewing in metro areas. Pay TV’s bestperforming channel secures less than a one per cent share of TV viewing.Share of Nightly Television Viewing – Multi-Channels – Metro Markets3.4%3.2%2.7%2.6%+ 7%YOY2.2%2.1%0.9%0.7% 0.7%0.6%0.5% 0.5%7TWO GO! 7MATE ELEVEN GEM ONE FoxFootyFox8Fox LifeStyle TV1 UKTVSports 2Source: OzTAM; 5 cap cities, consolidated data for weeks 1-52 2012 (ex Easter), 6pm – midnight, commercial free-to-air (Free TV) digital multi-channels and pay TV’s top ratingchannels.

Free TV’s regional multis also performing wellFree TV’s digital channels are also very popular in regional markets, collectively garnering aaround a fifth of all evening viewing.Share of Nightly Television Viewing – Multi-Channels – Regional Markets4.7%Slide 143.7% 3.6%+ 7%YOY2.8% 2.7%2.2%1.0%0.6% 0.5% 0.5% 0.5% 0.4%7TWO GO! 7MATE GEM ELEVEN ONE FoxSports 2Fox8 A&E Classics TV1 C&ISource: RegionalTAM, 4 aggregated regional markets excluding Tasmania & WA, consolidated data for weeks 1-52 2012 (ex Easter), 6pm – midnight, total people, commercialfree-to-air (Free TV) digital multi-channels and pay TV’s top rating channels.

People are watching TV across multiple screensSlide 15New technologies are providing new ways for people to watch and engage with theirfavourite programs anytime, anywhere and on a range of different devices.Watching TV vs Watching Video on PC and Mobiles – (Hours:Mins)Watching TV in the home 99:54Watching video on PC/Laptop 03:55Watching video on a mobile phone 01:20Source: Australian Multi-Screen Report Q3 2012, all people, monthly time spent watching TV in the home versus watching video on the internet via a PC/laptop or on a smart phone(note: mobile phone usage is based on Q4 2011 for people 16+).

Television dominates our total screen-timeSlide 16While people are consuming content across a range of different devices, watchingtelevision in the home dominates, accounting for a whopping 95.4 per cent of our totalvideo-based screen time.Watching TV vs Watching Video on PC and MobilesPC/Laptop3.4%Mobile phone1.2%Watching TVin the home95.4%Source: Australian Multi-Screen Report Q3 2012, all people, monthly time spent watching TV in the home versus watching video on the internet via a PC/laptop or on a smart phone(note: mobile phone usage is based on Q4 2011 for people 16+).

TV makes up 93% of teens’ screen timeSlide 17The Australian Multi-Screen report also highlights that teens and young adults spend thevast majority of their total screen time watching their TV set within the home. In fact,watching video on PCs or mobiles accounts for just 15 per cent of 18 to 24s’ and 7 per centof teens’ total screen time.Screen Time – A Month in the LifeWatching TVin the homeWatching videoon PC/LaptopWatching video on amobile phoneKids 70:10 2:19 N/ATeens 58:21 3:12 1:29P18-24 49:55 6:05 2:54P25-34 84:25 5:10 2:55P35-49 107:23 3:50 0:57P50-64 132:37 3:06 0:18P65+ 152:47 1:44 0:00Source: Australian Multi-Screen Report Q3 2012, based on monthly average time spent, mobile phone usage is based on Q4 2011 for people 16+.

Free TV’s shows attract millions of viewersSlide 18Every one of the top 50 programs on Free TV attracted in excess of 2.4 million viewers.Top 50 Programs on TV in 2012RankProgramCombinedAudience1 THE VOICE - WINNER ANNOUNCED 4,393,0002 AFL: GRAND FINAL: PRESENTATIONS 4,190,0003 THE BLOCK -WINNER ANNOUNCED 4,171,0004 STATE OF ORIGIN QLD V NSW 3RD - MATCH 4,023,0005 STATE OF ORIGIN QLD V NSW 1ST - MATCH 3,942,0006 RUGBY LEAGUE GRAND FINAL 3,875,0007 STATE OF ORIGIN NSW V QLD 2ND - MATCH 3,853,0008 THE VOICE -SUN 3,830,0009 AFL: GRAND FINAL: HAWTHORN V SYDNEY 3,829,00010 MY KITCHEN RULES-WINNER ANNOUNCED 3,757,00011 THE VOICE GRAND FINAL 3,715,00012 MELBOURNE CUP-THE RACE 3,604,00013 THE BLOCK -AUCTION 3,585,00014 THE VOICE -TUE 3,311,00015 REVENGE-EP.1 3,214,00016 THE X FACTOR -WINNER ANNOUNCED 3,195,00017 HOWZAT! KERRY PACKER'S WAR -PART1 3,162,00018 HOWZAT! KERRY PACKER'S WAR -PART 2 3,147,00019 THE VOICE -LAUNCH 3,138,00020 AFL: GRAND FINAL: POST-MATCH 3,129,00021 THE VOICE -FINAL 3,114,00022 THE VOICE -MON 3,087,00023 LONDON LIVE: D2 EARLY EVENING 3,072,00024 THE BLOCK -GRAND FINAL 3,063,00025 MASTERCHEF - THE WINNER ANNOUNCED 3,057,000RankProgram+ 7%YOYCombinedAudience26 RUGBY LEAGUE GRAND FINAL PRESENTATION 2,959,00027 LONDON LIVE: D1 EARLY EVENING 2,813,00028 LONDON LIVE: D2 EVENING 2,771,00029 TENNIS: 2012 AUST OPEN - MEN'S FINAL 2,728,00030 THE X FACTOR GRAND FINAL 2,702,00031 MELBOURNE CUP-RACE PRESENTATION 2,676,00032 LONDON LIVE: D3 EARLY EVENING 2,616,00033 MASTERCHEF AUSTRALIA - FINALE NIGHT 2,595,00034 LONDON LIVE: D4 EARLY EVENING 2,584,00035 LONDON LIVE: D13 EVENING 2,555,00036 MY KITCHEN RULES-TUE 2,537,00037 BEACONSFIELD 2,535,00038 LONDON LIVE: D1 EVENING 2,526,00039 AFL: GRAND FINAL: ON THE GROUND 2,507,00040 LONDON LIVE: D11 EVENING 2,500,00041 LONDON LIVE: D8 EVENING 2,491,00042 LONDON LIVE: D10 EARLY EVENING 2,482,00043 LONDON LIVE: D12 EVENING 2,480,00044 MY KITCHEN RULES-MON 2,480,00045 STATE OF ORIGIN NSW V QLD 2ND - PRE MATCH 2,474,00046 STATE OF ORIGIN QLD V NSW 1ST - PRE MATCH 2,472,00047 LONDON LIVE: OPENING CEREMONY 2,462,00048 STATE OF ORIGIN QLD V NSW 3RD - PRE MATCH 2,451,00049 LONDON LIVE: D5 EVENING 2,446,00050 THE X FACTOR GRAND FINAL PERFORMANCE 2,443,000Source: OzTAM and RegionalTAM; 5 cap cities and 4 aggregated markets ex Tasmania & WA; consolidated data for weeks 1-52 2012 (ex Easter), Free TV channels, metro and regional audiences areadded to form a combined average audience estimate and ranking, based on program title matches.

49 of the top 50 shows were AustralianSlide 19Commercial free-to-air broadcasters are the major underwriters of production in Australia.In 2012, Free TV broadcasters invested a record $1.35 billion on local programming.Free TV’s home-grown programs continue to prove the most popular with viewers: 49 ofthe top 50 programs on Free TV in 2012 were Australian productions.Source: Free TV Australia, expenditure for 2011-12 financial year.

Free TV consistently aggregates big audiencesSlide 20No other media consistently aggregates audiences like Free TV. On average, every one ofthe top 40 programs on Free TV, every week, attracts over 1 million viewers.Top 40 Regular Programs on Free TV in 2012RankProgramCombinedAudienceRankProgramCombinedAudience1 THE VOICE -TUE 3,311,0002 THE VOICE -MON 3,087,0003 MY KITCHEN RULES-TUE 2,537,0004 MY KITCHEN RULES-MON 2,480,0005 THE BLOCK -SUN 2,400,0006 MY KITCHEN RULES-WED 2,387,0007 MY KITCHEN RULES-THU 2,380,0008 REVENGE 2,357,0009 MY KITCHEN RULES-SUN 2,347,00010 THE X FACTOR-TUE 2,313,00011 THE X FACTOR RESULTS 2,255,00012 THE X FACTOR PERFORMANCE 2,248,00013 DOWNTON ABBEY 2,238,00014 THE X FACTOR HOME VISITS 2,237,00015 PACKED TO THE RAFTERS 2,197,00016 THE X FACTOR-MON 2,168,00017 THE X FACTOR-WED 2,154,00018 THE BLOCK -MON 2,032,00019 THE BLOCK -TUE 1,918,00020 SUNDAY NIGHT 1,892,00021 HAMISH & ANDY'S EURO GAP YEAR 1,886,00022 AUSTRALIA'S GOT TALENT-MON 1,852,00023 NINE NEWS SUNDAY 1,849,000+ 7%YOY24 THE BLOCK -THU 1,831,00025 BILLY CONNOLLY'S ROUTE 66 1,816,00026 THE BLOCK -WED 1,815,00027 SEVEN NEWS - SUN 1,808,00028 THE BIG BANG THEORY 1,799,00029 MASTERCHEF AUSTRALIA SUN 1,790,00030 HOUSE HUSBANDS 1,777,00031 WINNERS & LOSERS 1,732,00032 UNDERBELLY: BADNESS 1,717,00033 AUSTRALIA'S GOT TALENT-TUE 1,703,00034 60 MINUTES 1,696,00035 DANCING WITH THE STARS 1,690,00036 MASTERCHEF AUSTRALIA TUES 1,673,00037 SEVEN NEWS 1,663,00038 MASTERCHEF AUSTRALIA MON 1,662,00039 SURVEILLANCE OZ 1,642,00040 BIKIE WARS: BROTHERS IN ARMS 1,635,000Source: OzTAM and RegionalTAM; 5 cap cities and 4 aggregated markets ex Tasmania & WA; consolidated data for weeks 1-52 2012 (ex Easter), Free TV channels, metro andregional audiences are added to form a combined average audience estimate and ranking, excludes sport, based on program title matches and 3+ episodes.

PVRs drive incremental audiencesSlide 21PVRs allow viewers to watch a program while recording another. Audiences for programscan increase by hundreds of thousands of viewers once playback is taken into account.Top 40 Time-Shifted Programs in 2012Program Overnight Cons %AudienceIncreaseProgram Overnight Cons %AudienceIncrease1 REVENGE-EP1 2,840,000 3,214,000 13.2 374,0002 HOWZAT! WAR -PART 1 2,812,000 3,162,000 12.4 350,0003 HOWZAT! WAR -PART 2 2,805,000 3,147,000 12.2 342,0004 REVENGE 2,025,000 2,357,000 16.4 332,0005 REVENGE-WED 1,865,000 2,196,000 17.7 331,0006 HOMELAND EP2 992,000 1,320,000 33.1 328,0007 PACKED TO THE RAFTERS-EP2 1,827,000 2,145,000 17.4 318,0008 ALCATRAZ -MON 569,000 857,000 50.6 288,0009 DOWNTON ABBEY 1,973,000 2,238,000 13.4 265,00010 PACKED TO THE RAFTERS 1,934,000 2,197,000 13.6 263,00011 ALCATRAZ 1,101,000 1,363,000 23.8 262,00012 DOWNTON ABBEY-EP2 2,016,000 2,278,000 13.0 262,00013 MISSING-EP2 725,000 978,000 34.9 253,00014 WINNERS & LOSERS-EP2 1,486,000 1,737,000 16.9 251,00015 REVENGE - CLIP SPECIAL 1,734,000 1,984,000 14.4 250,00016 HOMELAND 1,106,000 1,354,000 22.4 248,00017 HOUSE HUSBANDS 1,552,000 1,777,000 14.5 225,00018 UNDERBELLY: BADNESS 1,493,000 1,717,000 15.0 224,00019 ONCE UPON A TIME-SUN EP2 991,000 1,207,000 21.8 216,00020 MISSING 918,000 1,133,000 23.4 215,00021 BONES-WED 1,279,000 1,488,000 16.3 209,00022 NCIS EP2 1,352,000 1,560,000 15.4 208,00023 CASTLE-TUE 959,000 1,164,000 21.4 205,000+ 7%YOY24 CASTLE-WED 877,000 1,082,000 23.4 205,00025 OFFSPRING 1,144,000 1,347,000 17.7 203,00026 SHERLOCK 1,052,000 1,253,000 19.1 201,00027 THE VOICE -TUE 3,110,000 3,311,000 6.5 201,00028 CRIMINAL MINDS-SUN 801,000 1,001,000 25.0 200,00029 WINNERS & LOSERS 1,533,000 1,732,000 13.0 199,00030 UNDERGROUND - ASSANGE 1,739,000 1,937,000 11.4 198,00031 BIKIE WARS: IN ARMS 1,438,000 1,635,000 13.7 197,00032 ONCE UPON A TIME-MON 1,124,000 1,321,000 17.5 197,00033 CASTLE 1,065,000 1,257,000 18.0 192,00034 BONES 1,323,000 1,514,000 14.4 191,00035 ONCE UPON A TIME-SUN 1,181,000 1,370,000 16.0 189,00036 CRIMINAL MINDS-THU 1,180,000 1,368,000 15.9 188,00037 GREY'S ANATOMY-TUE 835,000 1,022,000 22.4 187,00038 ONCE UPON A TIME 1,260,000 1,447,000 14.8 187,00039 PRIVATE PRACTICE 317,000 502,000 58.4 185,00040 THE GOOD WIFE 680,000 865,000 27.2 185,000Source: OzTAM and RegionalTAM, 5 cap cities and 4 aggregated markets excluding Tasmania & WA, consolidated data for weeks 1-52 2012 (ex Easter), Free TV’s metro and regional audiences are added toform a combined average audience estimate, based on program title matches, ranked by audience increase.

Live TV dominatesSlide 22While personal video recorders are now in half of all Australian households, time-shiftviewing accounts for a very small proportion of our television viewing. The vast majority ofviewing, a massive 93.5 per cent, is done live.Percentage of Live and Playback ViewingPlayback6.5%LiveViewing93.5%Around 85% ofplayback viewingoccurs within the firstthree days of theoriginal broadcast.Source: OzTAM, 5 city metro, viewing of commercial free-to-air TV, consolidated data for weeks 1-52 2012 (ex Easter), 2am – 2am, total people, playback refers to deferred viewing(within 7 days of broadcast). In regional markets, live viewing accounts for 96.3 per cent and playback accounts for 3.7 per cent.

1 in 3 are using social media to talk about TVSlide 23A survey of Australian social media users has shown 1 in 3 use social media whilewatching television. What's more, 33 per cent are using social media to talk about TV.While Social TV is most prevalent among teenagers (57 per cent of users), it is also popularwith adults. 34 per cent of 20-29 year olds and 40 per cent of 30-39 year olds areconnecting with huge online communities to discuss what they are watching.This deeper level of engagement is providing advertisers with new and excitingopportunities for advertisers to connect with their target audiences.Social TV apps like Fango, Jump-In and Zeebox provide access to real-time social forumswhere viewers can interact and engage with their favourite programming.Research also shows that those who watch TV while using social TV apps are also moreengaged with the content they are watching.Source: AIMIA YellowTM Social Media Report June 2012, “Social TV Keeps Viewers Engaged When Minds Might Wander”, AdAge, 3 July 2012.

Catch-up TV is also driving incremental viewingSlide 24In addition to over 3 hours of traditional TV viewing a day, 1 in 4 Australians are alsowatching catch-up TV online.The networks’ catch-up TV services ensure viewers never have to miss out on theirfavourite programs. Each Free TV network has a dedicated catch-up site, providing awealth of current content and a library of favourites. Additional content such as interviewsand behind-the-scenes footage is also available, free-to-view.Source: Nielsen Online Consumer Landscape Report, March 2012.

SummarySlide 252012 was another strong year for commercial free-to-air television.Television has more than held its own against the explosion of media and entertainmentoptions now available: TV is in virtually every Australian household and people still spendmore than 3 hours a day watching TV.Free TV is the number one choice for Australian viewers with 14 million Australians tuningin to commercial free-to-air television every day.What’s more, new devices and social TV apps are keeping people engaged with theirfavourite programs and are driving incremental viewing.Free TV is poised for another great year in 2013, building on these strengths anddeveloping even more quality content that Australians love to watch.