Getting Comfortable with Cable Presented to Biz Net

Getting Comfortable with Cable Presented to: Biz. Net Link Date: 2/9/06

Agenda Ø Cox Enterprises Ø Television: Yesterday…Tomorrow Ø Highlight Top Programming & Sweeps Ø Local Media Trends

Our Company

Our Company For over 100 years, Cox Enterprises has been one of the leading mass media companies with ownership interests in newspaper, radio, television, direct mail and the internet.

Television: Yesterday… Tomorrow

50 years ago… There were 3 television networks

50 Years Ago… The top TV programs 67. 3 61. 6 generated 40, 50, even 60 household ratings! Source: Nielsen Media Research based on Program Station Area basis 1950 -51 Texaco Star Theatre on NBC, 1952 -53 I Love Lucy on CBS, 1957 -58 Gunsmoke on CBS 43. 1

10 years ago… 4 broadcast networks 22 cable networks

10 years ago… Top T. V. programs generated 15, 20, & 25 ratings

Today… 7 broadcast networks 75 cable networks The average U. S. cable household has an average of 75 cable networks. -CAB

Today… Top program ratings are Half of what they were 10 years ago… Source: Nielsen Media Research National People Meter Data 2002 -03 Broadcast TV Season (Sept ’ 02 – May ’ 03) Total TV Universe Season Average includes premier episodes only.

Missing Rating Points Customers cannot be found in ONE place, at ONE time, watching ONE TV channel anymore…

Missing Rating Points The average audience size of a television Percent of Broadcast Primetime Programs program rating has dwindled over time. HH Rating Achieved 1998 2003 1993 Audience Valuation Trend of Broadcast Programs in Primetime (1993 - 2003) Source: Nielsen Media Research – National People Meter Data – Year long average of regularly scheduled shows – premiere episodes only included in average – Mon-Sun 8 p – 11 p E/P

Missing Rating Points Even the top of the top programs fail to attain ratings that compare to similar shows in the span of just 20 years… Comparison of HH Ratings for “Finales” of Popular Television Shows (1983 - 2004) Source: Nielsen National People Meter Data – Total TV Universe – Households Ratings MASH HH rating from the “ 2000 Report on Television” from Nielsen Media Research

Networks forecast even greater investments in original programming to grow their audience share. Groundbreaking, award winning, and entertaining television $ = Billions Source 2003 Kagan World Media A Media Central/PR

The End of an Era (November 2004) “Broadcasters will probably never win another sweep. ” “(This marks) the end of an era. ” -Dr. Jack Wakshlag TBS/TNT Chief Research Officer Turner’s Annual Research Presentation for the Press 12/08/04

Households Top Rated Programs (November 2005) Program Network Rating Saturday Night College Football ESPN 8. 8 NFL Football ESPN 8. 3 Fox News 6. 2 Nickelodeon 3. 0 Law and Order: SVU USA 3. 0 WWE Wrestling USA 2. 7 Lifetime 2. 5 Seinfeld TBS 2. 3 Larry King Live CNN 2. 2 FX 2. 2 The O’Reilly Factor Dora the Explorer Sunday Movie Nip Tuck Source: Nielsen, Mobile-Pensacola (Ft. Walton Beach DMA). Nov 05 Sweeps, C-DMA Universe, HH, M-Su 6 a-12 m

November 2005 - Top Networks Among Households Early Morning 5 am-9 am Day 9 am-4 pm Early Fringe 4 pm-7 pm Prime 7 pm-11 pm Late Fringe 11 pm-1 am Source: Nielsen Research; Mobile-Pensacola (Ft. Walton Beach), C-DMA Nov 04 Sweep, HH

Media Trends

Radio Overview Escambia County Cable Networks reach more people than the Gulf Coast’s top radio stations… 102. 7 Country WABB 97 FM Source: Scarborough Research, Mobile-Pensacola Feb 04 -Jan 05, DMA Survey Area, Adults 18+ Target Definition: Escambia County Residents. 93 BLX TK 101 My 107 WCOA Q 100

Competitive Comparison Let’s see how the same message blossoms from the visual newspaper ad…. to the captivating sight, sound, motion, color, and emotion of a television commercial!

Competitive Profile Newspaper Readership in U. S Ü Since 1970, almost 30% of the adult population in the U. S. stopped reading the daily newspaper. Daily Newspaper Readership 1970 – 2003 (% of Adult 18+ population) Ü Ad exposure is not the same thing as total readership. Source: Simmons Research – National Data – 1970 – 2003, NAA

Competitive Comparison Let’s see how the same message blossoms from the auditory radio spot…. to the captivating sight, sound, motion, color, and emotion of a television commercial! Which Provided The Best Directions? Which Provided More Information? Which Best Showcased The Atmosphere? Which Made You Hungry?

Reach Your Customers Cox Media offers a variety of programs that generate reach across networks, demographic appeal & interests. Network Program Sweep / Year HH Rating* ESPN College Football November 2004 15. 9 Fox News Hannity and Colmes November 2004 7. 9 Lifetime Primetime Movie November 2004 4. 6 FOX News Fox and Friends November 2004 5. 3 FOX News Special Report February 2005 4. 1 Sci Fi Stargate SG-1 February 2005 4. 8 Spike CSI February 2005 3. 3 TBS Braves Baseball May 2005 4. 1 Spike WWE May 2005 2. 7 USA Monk July 2005 4. 0 TBS Everybody Loves Raymond July 2005 2. 7 USA The Dead Zone July 2005 3. 6 Source: Nielsen Research; Mobile-Pensacola (Ft. Walton Beach) C-DMA, HH, Nov 04, Feb 05, May 05, Jul 05 Sweeps

DMA Household & WEAR – ABC Local News Viewing COUNTY & STATE • • • 5 pm News Viewing Mobile County, AL Baldwin County, AL Clarke County, AL Monroe County, AL Escambia County, AL • Escambia County, FL • Santa Rosa County, FL • Okaloosa County, FL 6 pm News Viewing 10 pm News Viewing 628 803 57 36 480 573 852 103 74 422 1, 597 1, 361 55 13 429 25, 247 6, 947 24, 179 7, 532 19, 997 7, 297 8, 677 8, 051 6, 993 Escambia County Florida is the signal station origin for WEAR – ABC. Notice how local news viewership drops off the farther away you get geographically from Escambia County Florida. Local news isn’t too local for Households in alternate counties! Source: 2005 County Coverage Study NHI Local. Mobile, AL – Pensacola (Ft. Walton Beach) FL DMA.

The Age of Acquisition AGE GENDER Male Female 49. 7% 50. 3% RACE Caucasian African American Hispanic Asian 72. 4% 21. 4% 2. 7% 2. 9% EMPLOYMENT Employed Unemployed Service Management Related Sales and Office 51. 7% 3. 7% 17. 9% 30. 0% 28. 4% EDUCATION High school or more 87. 7% Some college or more 52. 8% College degree or more 19. 9% HOME OWNERSHIP WEEKLY CABLE VIEWING HOUSEHOLD INCOME MARITAL STATUS Married 50. 0% Single 27. 4% Divorced 12. 6% Widowed 7. 1% Source: Scarborough, Mobile-Pensacola Aug 04 -Jul 05. Adult 18+, Escambia County Residents. US Census 2000 MONTHLY BUYING BEHAVIORS Restaurant dining 85. 5% Clothing store shopping 84. 2% Household took domestic vacation (yr) 75. 6% Household owns a home computer 68. 7% Home improvements done past year 65. 5% Shoe store shopping 67. 9% Household accesses the internet 64. 6% Any mall shopping 84. 9%

2006 Total Coverage Area Total Subscribers: 158, 692 Areas in GREEN are Cox Media Zones Cox Communications Property, Escambia County 75, 331 HH Century Jay Escambia County Zip Codes: 32501/02/03/04/05/06/07/14/26/33/34 q I-10 North Pensacola Zone: 22, 880 Households q I-10 South Pensacola Zone: 52, 451 Households Okaloosa County Walton County Crestview Santa Rosa County Cantonment Pensacola North Pensacola South Eglin AFB Niceville Ft. Walton Beach Destin Freeport Cox Communications Property, Okaloosa/Walton 77, 385 HH Zip Codes: 32439/32536/39/40/41/50/59/45/78/ 44/42/47/48/69/79 q Fort Walton Beach Zone: 33, 715 Households (including Cinco Bayou, Hurlburt AFB, Shalimar, Eglin AFB & Mary Esther) q Destin Zone: 21, 267 Households (including the community of Sandestin) q Niceville Zone: 12, 004, Households (including Freeport) q Crestview Zone: 10, 399 Households Bright House Property, Escambia County 5, 976 HH Zip Code: 32533 q Cantonment Zone: Cantonment and portions of Century, Flomaton, Jay, and Molino

Escambia County Pensacola/Cantonment 80, 874 Households Current Households: 81, 307 Cable Penetration: 84% North Pensacola South Pensacola Cantonment 22, 880 HH 52, 451 HH 5, 976 HH Employed: Unemployed: Management Armed Forces: Family HH: College Degree+: Median HHI: 51. 7% 30. 0% 4. 6% 66. 8% 20. 9% $35, 234 Demographics/Viewership Zip Codes Pensacola South 32501 -Downtown 32502 -Downtown 32503 -East Hill 32504 -Cordova 32505 -Central 32506 -W. Pensacola 32507 -Navy. Blvd/ Perdido 32526 -Saufley Coverage Area Pensacola North 32514 -University 32534 -Pine Forest Cantonment 32533 - Cantonment 32577 - Molino 32526 - Beulah 32535 - Century 32565 - Jay 36441 - Flomaton Perdido Cantonment SUBSCRIBER NUMBERS ARE ESTIMATES THAT MAY CHANGE WITHOUT NOTICE; COVERAGE MAPS, ZIP CODES, ETC. MAY NOT REFLECT DIGITAL, ANALOG, AREA, CHANNEL OR OTHER CARRIAGE LIMITATIONS FOR YOUR AD. CONTACT COX MEDIA FOR DETAILS. Median Age: Age 25 -54: Married: Avg. HH Size: Female Hse Holder: HH w/ kids <18: Own Home: 35. 4 41. 9% 50% 2. 45 15. 1% 33. 8% 67. 3% Source: 2000 U. S. Census. Networks Pensacola A&E AMC Animal Planet BET Bravo Cartoon CMT CNBC CNN Comedy Discovery Health E! ESPN 2 Family Food Fox News Fox Sports FX Golf Headline News HGTV History Lifetime MSNBC MTV Nickelodeon OLN Oxygen Sci Fi Speed Spike TBS TLC TNT Travel TV Land USA VH 1 Weather Digital Biography Court DIY ESPN Classic ESPN News History Intl Fine Living Soap Toon Disney

What Makes Our Market Unique? The Pensacola market has the highest cable penetration compared to neighboring counties. 83% of the television households in Escambia County have Cable Television. Ø Escambia County is part of the Mobile-Pensacola (Fort Walton Beach) DMA and is DMA rank # 62. Ø The Mobile/Pensacola (Fort Walton Beach) DMA is a hyphenated market with a territory that includes 10 counties spanning 3 states: Florida, Alabama, and Mississippi. Ø There are six broadcast network affiliates (one major that originates from Escambia County). Ø Satellite Penetration in Escambia County (10. 1%) is the lowest among neighboring counties and lower than the national average. Source: Nielsen, Mobile-Pensacola (Ft. Walton Beach) DMA VIP November 2005

Why Advertise in Escambia County? ESCAMBIA COUNTY HAS THE MONEY RETAIL STORE GROUP RETAIL SALES Total Retail Sales Food & Beverage Stores Food Service & Drinking Establishments General Merchandise Furniture/Home Furnishings, Electronics & Appliances Motor Vehicles & Parts Dealers $ 3, 858, 144, 000 $ 296, 908, 000 $ 376, 615, 000 $ 753, 215, 000 $ $ 191, 392, 000 945, 350, 000 Escambia County stores generated more revenue in retail sales than neighboring counties: Santa Rosa County, FL- $1, 166, 931, 000; Escambia County, AL- $436, 583, 000; and Baldwin County, AL- $2, 531, 483, 000. Other Industries (2005 Estimated Consumer Expenditures) Health Care Legal & Accounting Source: 2005 Survey of Buying Power SMM. AGS Demographic Data- 2005 Estimates/Market Smart Analyzer $350, 606, 264 $10, 507, 914

Maintaining an Advertising Presence Advertising No Advertising Percent Recalling Advertising End of Advertising Week Number Maintaining a consistent message and keeping a continual presence on cable television will result in a higher audience recall of your message. Stop your advertising on cable television, and people quickly forget your message! Source H. A. Zielske, “The Remembering and Forgetting of Advertising” Journal of Marketing, Volume 23, No. 3, Pages 239 -243

Free to Watch what they Want to Watch at 6 A, 5 P, 6 P and 10 P… Top 10 Non- News Cable Networks in Traditional Broadcast News Dayparts M-F 5 A-9 A M-F 5 P-6: 30 P M-F 9 P-10: 30 P Source: Nielsen Research. Mobile-Pensacola (Ft. Walton Beach) Nov 04 C-DMA

Reach a broader audience by supplementing, not duplicating your local broadcast buys, and watch cable programming dramatically improve your consumer reach.

Client Products and Services Cox Media offers effective advertising for businesses throughout our community and across the country. Our Account Executives have access to various research tools empowering them to make qualified advertising recommendations to our clients. Some of these recommendations include which networks to buy, time periods to select, and geographic areas to target. Production Our award winning production team will help bring your ideas to life. : 30 Second Commercials Target your audience with 50+ popular cable networks Research Cox Media research helps you identify and reach valuable households in your market area. Weather Channel Crawl Effective and affordable, place your text message during the local forecast 30 Minute Programs Cox Media offers our own local origination channel that promotes your products or services. Promotions Cox Media can provide targeted sweepstakes, special events, network sponsorships and more to fit your advertising needs. Co-Op Advertising Utilize your co-op dollars for a 30 -second commercial schedule…We’ll find the funds for you. Cox Media Team Cox Media offers you a team of professionals in research, promotion, marketing, production, and sales.

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