HOW TRIPLE A LISTENERS BUY AND HEAR MUSIC

SBR CREATIVE MEDIA HOW TRIPLE A LISTENERS BUY AND HEAR MUSIC A Music and Radio Listener Study August, 2006 Presented by: John Bradley & Dave Rahn SBR Creative Media Boulder, Colorado www.sbrcreative,com 303.444.7700

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 2 About SBR Creative Media SBR Creative Media, Inc. is the nation s foremost advisor to Triple A/Adult Rock stations. The company was founded in 1991 by three members of the management team behind the pioneering KBCO Boulder/Denver. Over the past 15 years, SBR has stayed focused on the development and success of Adult Rock formats and Triple A in particular. Some of our clients include KFOG/San Francisco, KBCO/Denver, KMTT (The Mountain)/Seattle, WTTS/Indianapolis, WXRT/Chicago, WMMM (Triple M)/Madison and many other U.S. stations along with Canadian radio clients. SBR advises stations on the details of music, marketing, research, positioning and ratings as well as the big picture aspects of long term audience, demographic, lifestyle and music trends. SBR s services are available to radio stations, media and music companies. Please feel free to contact us by phone 303.444.7770, email (dave @ sbrcreative.com or john @ sbrcreative.com) or visit our website: www.sbrcreative.com. Study Overview SBR Creative Media conducted the first national study of radio and music consuming in the summer of 2004. Two years later we conducted part 2 for presentation at the 2006 Radio and Records Triple A Summit in Boulder, Colorado. SBR s John Bradley and Dave Rahn presented. Helping analyze the results at the presentation were David Ginsberg, Music Director of WBOS in Boston and Greg Latterman from Aware Records and manager of John Mayer, Five For Fighting, The Fray and others. The music and media landscape has changed dramatically over the past few years with the continued penetration of new digital media (such as internet streaming, ipod/mp3 players, satellite radio, podcasting, etc.) and new and different ways for listeners to obtain and listen to music for their own personal use (digital downloads, on-line music retailers, etc.). Both the radio and record industries have a clear need to understand how these trends are impacting our businesses today and to make some educated guesses about how they will impact our businesses tomorrow. Some of the things we set out to learn in the second study include: How satisfied are Triple A listeners with radio? The music buying habits of Triple A listeners Changes in free or paid downloading over the past two years. Streaming growth. Impact of ipod and itunes on radio listening and on CD buying. How the Triple A music consumer s world has changed in two years!

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 3 How the Study Was Conducted SBR created the on-line survey which was placed as a link in websites and emails of 13 radio stations between June 29 and July 20, 2006 including: Chicago WXRT Denver KBCO Indianapolis WTTS Louisville WFPK Long Island WEHM Madison WMMM Triple M Minneapolis KTCZ Cities 97 New York City - WFUV Philadelphia WXPN Portland KINK San Francisco KFOG Seattle KMTT The Mountain Tucson KWMT The Mountain We received over 6,500 respondents from 45 states and several other countries. The data presented here is from 6,146 respondents 18 years of age and older from U.S. zip codes. SBR utilized web survey tools from SuperSurvey to conduct the study. It should be noted that because of the web-based and voluntary nature of the survey sample, these data are not necessarily representative of the general population, the general radio listening audience or even of the general Triple A listening audience. Some terms used in this summary Streamers: Listeners who said they listen to local or out-of-town FM radio stations or internet-only webcasts at least once in a typical month. Downloaders: Listeners who said they download music either free or paid at least once in a typical month. ipod/mp3 Users: Listeners who said that they use an ipod or other MP3 player as a way they listen to music in an average week. Respondents could fall into more than one category.

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 4 SBR Summary Some of the headlines from the 2006 research project results and 2004 comparison: Listenership to choices other than FM radio continues to grow in last two years. Satisfaction with radio has increased very slightly, not declined, in two years. Ownership of a portable MP3 player (ipod or other brand) has jumped from 13% to 48% in two years. Listening to an ipod/mp3 player as the primary music choice is up over 400% in two years. There are twice a many more people podcasting in 2006 as owned ipods in 2004. IPod/MP3 users (48% of total) and Downloaders (33% of total) spend far less time listening to music on FM radio than the total. ipod/mp3 Users and Downloaders are more likely to buy CDs than the total. There are many more choices than in the past of where people can buy music, including Starbucks. Of the people who have bought digital music (a large 43%) one-third now buy more music than did before because of paid digital downloads. Large retail stores (Target, Best Buy, Wal-Mart) are still the top places to buy CDs. itunes has revolutionized how listeners buy music on-line. Digital music purchases have increased up to 277%. CDs purchases as the primary way to obtain music has decreased significantly. Over half of Triple A listeners buy one or more CDs a month. New music is alive and well with Triple A audiences. Almost everyone in the survey agreed I ve discovered a new artist that I love in the past year. Satellite listenership has grown 166% in two years but total audience still pales compared to audiences of other music choices like FM, internet, ipods, etc. Satellite radio, while enjoying high awareness, has leveled off in new subscriber interest. Streamers (55% of total) listen to radio as much as the average, not less. The streaming audience has grown up to 60% in two years. A new music channel tops the listener wish list for a station s internet side channel. Over two-thirds of survey takers have attended a concert or club to see live in the past month. This is an active audience for live music. The over 50-year old audience for Triple A radio and music is increasing. Following are select slides and SBR commentary from the study presentation at the 14 th annual Radio & Records Summit in Boulder on August 3, 2006.

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 5 Survey Sample statistics 6,146 Triple A Radio Listeners 6,146 Triple A radio listeners (about 7,100 in 2004) Adults 18+ Responses from 45 states 13 stations participated On-line survey Email or website invitation June 28 to July 20, 2006 Age of survey takers 45-54 35% 55+ 6% 18-24 7% 35-44 29% 25-34 23% 9 Without weighting, the age break down of the sample fell very consistently with that of the Triple A audience nationally and similar to the 2004 study: 87% (418) 18-24 23% (1,422) 25-34 29% (1,776) 35-44 35% (2,137) 45-54 6% (393 ) 55+ 57% Women 43% Men The respondents skewed female again this year. Perhaps this is due to women being more likely to participate in surveys and wanting to give their opinion. The Triple A audience is, on average, about the same gender composition. We did not weight the results to reflect this balance.

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 6 How Triple A Listeners Listen To Music We asked survey takers to tell us all the ways they hear music during an average week. Not surprisingly, FM radio was first because we surveyed radio listeners. Note that 40% mentioned ipod/mp3 Players. We refer to these respondents throughout the summary as ipod/mp3 users. Daily hours listening to radio 3-5 hours 31% 6+ hours 19% Less than 1 hour 10% 1-2 hours 40% Time spent listening to radio is nearly identical to what it was two years ago. Half of the survey takers listen to radio 3 or more hours in a typical day. Note that this chart mirrors time spent listening in Arbitron ratings. Check all the ways you listen to music in an average week FM radio CDs purchased 89% 96% CDs burned ipod/mp3 FM on internet 37% 40% 57% MP3s on computer 30% Cable TV/Dish channels Internet channels 21% 19% XM/Sirius Other 7% 11%

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 7 All the ways you listen change from 04 to 06 FM Radio flat -2% CDs purchased down -8% CDs burned up 10% ipod/mp3 players up 207% FM on internet up 60% MP3s on computer up 41% Cable TV/Dish channels up 25% Internet channels up 34% XM/Sirius up 166% Listening to FM Radio showed no discernible decrease over two years. Listening to music via non-radio choices showed modest to gigantic increases. FM radio by age 94% 95% 96% 97% 97% There was no difference in weekly radio listening by age. We might have expected to see lower numbers for the 18-24 and possibly 25-34 demos. Again, this was a sample of Triple A radio listeners so radio listening scored high in all demos. 18-24 25-34 35-44 45-54 55+ MP3s on computer by age 59% 43% 27% 19% 17% Listening to music on the computer is a popular way to hear music for 18-24 and 25-34 demos and a way that many industry people forget about. Over half of 18-24 and almost half of 25-34 listen to music on their computer in an average week. Big increases over 2004. 18-24 25-34 35-44 45-54 55+

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 8 ipod/mp3 player by age 66% 52% 40% 30% 23% Portable MP3 player usage increased greatly in the last two years driven by 18-34 year olds. But ipods aren t just for 20somethings. It s an all-ages thing. Almost one-quarter of 55+ Triple A listeners use a portable MP3 player. 18-24 25-34 35-44 45-54 55+ Next, we asked respondents to choose which ONE way they listen to music the MOST in an average week. Considering the radio-centric nature of the sample, it was surprising that 41% of a survey of radio listeners did not choose radio as their primary way to listen to music. A large number of people are spending more time with some other music source than radio. No single other source is a close second. A variety of methods are occupying listeners music listening time. Which ONE way do you listen to music the most? FM radio CDs purchased ipod/mp3 10% 13% 59% FM on internet Computer MP3s CDs burned XM/Sirius Internet channels Other Cable TV/Dish channels 6% 4% 3% 2% 1% 1% 0%

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 9 Traditional FM radio and CDs purchased are on the decline as the primary music listening choice. ipods and XM/Sirius on the increase. However, satellite radio is negligible in total numbers of people that choose it as a primary source (2%) Listen most often change from 04 to 06 FM Radio down -8% CDs purchased down -32% ipod/mp3 players up 425% FM on internet up 45% MP3s on computer up 77% CDs burned flat -4% XM/Sirius up 133% Internet channels up 46%

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 10 We asked another, more direct question about respondents radio listening, and got a similar response to the previous question. Here s what we asked Which best describes how you listen to music (choose one): A. I listen to music on FM radio more than I listen to other sources (CDs, MPs, streaming, etc.) OR B. I listen to music on other sources (CDs, MPs, streaming, etc.) more than I listen to FM radio. Over one-third of Triple A listeners chose B they are finding ways to listen to music other than radio. Considering this was a study of radio listeners, this number caught our attention as one that should give radio programmers and managers some cause for concern. Remember this one-third/two-thirds breakdown as we ll look at how different audience groups responded to the question later in the summary. FM more or other sources more? up from 33% in 2004 36% listen to other more 64% listen to radio more down from 67% in 2004

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 11 Radio listening to other sources varies by age. 18-24 year olds spend not even half of their time with radio and way over half with other. Older end Triple A listeners 45+ are better users of radio than are those 18-34. They ve grown up with radio. Listeners under 45 years old are finding other ways to listen to music besides radio and it s on the rise. 18-24 who listen more to other music sources than to radio 49% 58% 2004 2006 25-34 who listen more to other music sources than to radio 42% 49% 2004 2006 35-44 who listen more to other music sources than to radio 31% 35% 2004 2006

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 12 Listener Satisfaction With Radio: How satisfied are you with the music and programming you hear on the FM Radio stations you listen to most often? We expected high scores because we were surveying radio listeners. More than half scored a very satisfied 8, 9 or 10. The most satisfied Triple A listener sub-groups were persons 55+ (7.89), persons 45-54 (7.62), women (7.58), non-downloaders (7.57), and light CD buyers (7.50). The least satisfied Triple A listeners were the same four groups as two years ago: downloaders (7.12), persons 25-34 (7.13), men (7.21), ipod/mp3 users (7.24). Even the least satisfied had fairly high satisfaction scores and higher than two years ago. Note that if we had weighed the male/female scores proportionately, the overall satisfaction scores would have been slightly lower. Satisfaction was 7.33 two years ago, a very slight increase today but not the decrease many would think. Satisfaction with radio Very Satisfied 10 9 12% 17% 8 27% 7 21% 6 10% 5 5% 4 3% Very Dissatisfied 3 2 1 1% 1% 3% AVERAGE 7.42

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 13 MUSIC BUYING We asked respondents to check all the ways they obtain music for their own personal use. Buying CDs is still the top choice primary method for Triple A listeners. Buying single or CD downloads has made huge sales inroads in the last two years. All the ways you obtain music Buy full CDs Get from friends Buy single downloads Free filesharing Buy CD downloads Other means Rarely get music 5% 3% 17% 26% 33% 56% 93%

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 14 All the ways you obtain music change from 04 to 06 Buy full CDs flat -4% Get music from friends flat -4% Buy single downloads up 119% Free filesharing flat 5% Buy CD downloads up 150%

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 15 Buy full packaged CDs most often 86% 68% When asked their PRIMARY way to obtain music two-thirds of Triple A listeners still buy CDs. However, that number is down significantly in two years. 2004 2006 Buy single songs from itunes, Rhapsody, etc. most often 10% Buying single song downloads is the number two primary method to obtain music, moving ahead of free downloads and file sharing. While showing huge gains in two years, buying single songs still pales compared to buying full packaged CDs (10% to 68%). 3% 2004 2006 Free downloads and file sharing most often 7% 6% Free downloads and file sharing appears to have slowed as the primary way to obtain music, due primarily to concerns over copyright infringement lawsuits and the availability of legal download services 2004 2006

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 16 Obtain music most often change from 04 to 06 Buy full CDs down -21% Buy single downloads up 243% Free filesharing down -20% Buy CD downloads up 277% The Triple A audience is an active music consuming group with more than half (for the second survey) buying music either packaged CDs or downloads - monthly 56% of Triple A listeners buy one or more CDs a month Up slightly from 54% in 2004

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 17 People who buy digital music on-line songs or full albums 57% don t buy digital music 43% buy digital music A large number of Triple A radio listeners have spent money on full CD or single song downloads. This is an active, on-line music buying audience. People who buy digital music 51% buy same amount 32% buy more music 17% buy less Among the 43% who said they buy digital music on line, we asked: Would you say you BUY more, less or about the same amount as before digital downloading? One third of listeners who buy digital music downloads are buying more music than before. How much $$ do you spend in a download session 10% over $10 In a typical download session, about how much do you spend on music? (among the 43% who buy digital downloads) 25% $6 - $10 65% $0 - $5 Among people who buy digital downloads

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 18 ipod/mp3 users and Downloaders more likely to buy CDs than average 56% 65% 66% Good news for music labels. ipod/mp3 users and Downloaders were more likely (by 10 percentage points) than the survey average to buy one or more CDs a month. It suggests that Downloaders and ipod/mp3 users and are into and spend money on music. Total ipod/mp3 Downloaders People who buy one or more CDs a month Where do listeners buy CDs? Not too long ago the choices were few: record store and mail order. Today there are many options. Almost three-quarters still go into stores to buy CDs, although traditional music outlets and used record stores share has shrunk. Half buy CDs online, a number that shouldn t be surprising but didn t grow much in the last two years likely due to the growth of digital downloads. Paid sites like itunes and Rhapsody have exploded from 8% in 04 to 21% in 06. We didn t track Starbucks two years ago. This year the coffee chain scored a respectable 11% for places people buy CDs. All the places you buy CDs Large retail store Traditional music store On-line retailer Bookstores Used record store Paid download Starbucks Other 11% 9% 21% 35% 48% 45% 61% 71% Descriptions respondents could choose from: Traditional music store (Tower, Sam Goody, independent store, etc.); Large retail store (Best Buy, Target, Wal-Mart, etc.); On-line retailers (amazon.com, barnesandnoble.com, etc.); Used record store; Bricks and mortar book stores (Borders, Barnes and Noble, etc.); Paid digital downloads (itunes, Rhapsody, etc.).

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 19 Change from 2004 to 2006 Large retail store up 13% Traditional music stores down -23% On-line retailer flat -2% Bookstores up 20% Paid downloads up 196% Used records down -37%

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 20 When asked the PRIMARY place they purchase CDs, large retailers like Target, Best Buy and Wal-Mart was the top choice and up in share from two years ago. Records stores, new or used, are shrinking in share. Digital outlets are soaring as a primary music buying source. Starbucks barely showed as a primary outlet demonstrating that Starbucks does sell music (11% have bought a CD there) but it s while people are getting a latte. Starbucks isn t a primary music destination. Where are you most likely to buy CDs? Large retail store Traditional music store On-line retailer Bookstores Paid download Used record store Other Starbucks 10% 6% 6% 4% 1% 19% 17% 38% Change from 2004 to 2006 Large retail store up 13% Traditional music stores down -23% On-line retailer flat -2% Bookstores up 20% Paid downloads up 196% Used records down -37%

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 21 The younger the person the more likely to buy at a large retailer (Target) 49% 42% 38% 35% 30% We found that, while all age groups buy at large retailers as their primary choice, almost half of the 18-24 demo buys at Best Buy, Target, Wal-Mart type stores, likely because of low prices. 18-24 25-34 35-44 45-54 55+ The older the person the more likely to buy on-line (amazon.com) 10% 14% 17% 19% 22% People over 35 were more likely to buy on-line as their primary CD buying source likely because of convenience, selection and less regard for price. 18-24 25-34 35-44 45-54 55+

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 22 DOWNLOADERS & FREELOADERS Downloaders in this study are people who download music free or paid at least once in a typical month. 33% of Triple A listeners are active downloaders (at least once a month) One-third of Triple A listeners surveyed are active Downloaders. Yes, it s a significant increase in two years but likely due to paid downloads, not free file sharing. Up from 21% in 2004 26% have downloaded music for free recently Up from 19% in 2004 To the extent respondents would be honest with us (it was an anonymous survey), we asked listeners if they ve ever downloaded music for free on the internet. Note that we did not make a distinction between illegal free filesharing and legitimate free downloads. One-quarter said they have downloaded music for free recently.

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 23 50% say they ve never downloaded music for free On the other hand, half of the Triple A listeners said they ve never downloaded music for free. Down from 52% in 2004 24% say they used to download for free but no longer do Down from 28% in 2004 Over a quarter said they used to download for free, but not longer do. Of this group, we asked the following question: Why do you no longer download music for free from the Internet? Why stopped free downloading? Lawsuits/copyright concerns No time or interest Pay services now available Other 20% 23% 34% 49% The answer? As in 2004 the RIAA crackdown or stealing for artists seems to have had an effect. Almost half say lawsuits and copyright concerns have made them stop. 23% say it s because pay services are available, up from 19% in 2004. Among those who used to download for free but no longer do (respondents could give more than one answer to this question)

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 24 Downloaders and radio listening. This was one of the more important findings in the 2004 study and it is echoed in the 2006 results: Downloaders are less likely to listen to FM radio for music than the total. And it s a big difference fewer than half of Downloaders vs. 64% of the total listen to FM Radio more than they do to other sources for music. Listen to FM Radio or other music sources more? 36% listen to other more 64% listen to radio more 52% listen to other more 48% listen to radio more TOTAL Downloaders

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 25 ONLINE STREAMING 55% of Triple A listeners are active streamers. They have listened to music on-line in the last month. Over half of Triple A listeners we surveyed are Streamers meaning they have listened to something on-line in the past month: a local station, a station in another city, an internet-only channel, etc. Up from 50% in 2004 Streamers of LOCAL radio stations 33% 42% 2004 2006 In the past month have you listened to a LOCAL radio station from your city on the internet? 42% have, up from 33% in 2004. Compare these streaming numbers to people listening to satellite radio (toward the end of this survey) and you ll see why streaming is having more impact on the way people consumer music but is getting less PR and hype than XM or Sirius. Streamed a local radio station in the past month 48% 45% 41% 39% 36% Triple A listeners in all age cells stream local stations. 18-24 25-34 35-44 45-54 55+

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 26 Streamers of internet-only channels 22% 30% In the last month have you listened to a music channel on the internet that s NOT a local radio station? 30% have, up from 2004. 2004 2006

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 27 Many people are listening to radio on their computer, mostly at work but also at home. Why? Because it s actually easier than turning on a radio! We re finding that the computer has become an entertainment center, especially at work. Reasons to listen to radio stations on the internet Easier on computer than on radio 37% Trouble receiving radio signals 34% Don t have radio available 28% To hear programming not on radio 25% Other reason 15% Not allowed to have radio at work 9% We gave people a choice of what streaming side channels they would be likely to listen to if offered by the radio stations they listen to. These are the choices rated very likely. The top three are already being used around the country. SBR offers a Triple A New Music Channel to radio stations at no-cost. It s now streaming on over a dozen station web sites. KINK offers an Acoustic, unplugged channel as one of four streaming choices on their website. KBCO offers the Studio C Channel, featuring programming of exclusive, in-studio performances.

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 28 Streaming Side Channels: Very Likely to Try If Offered By Radio Stations Adult Rock new releases Acoustic, unplugged In-studio performances Live concert songs 67% 65% 63% 60% Deep tracks, B-sides Modern Rock Folk, singer/songw Blues 49% 45% 44% 42% Traditional Jazz Comedy Classical Electronica 21% 18% 13% 8%

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 29 Unlike Downloaders and ipod/mp3 Users, Streamers are more like the total survey in terms of radio usage, satisfaction and music buying. Maybe it s that streaming is a more radio-like experience than programming your own MP3 s. Yet, Streamers are the largest subset of the Triple A Audience we surveyed 55%! There s a case to be made that radio should be embracing and serving the streaming audience by offering streams on-line. Streaming doesn t appear to cut into radio listening time unless a particular station or music genre isn t available on-line. Record labels should embrace Streamers as well: While 56% of the total survey buys one or more CDs a month, 60% of Streamers buy one or more CDs a month. Listen to FM Radio or other music sources more? 36% listen to other more 64% listen to radio more 42% listen to other more 58% listen to radio more TOTAL Streamers

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 30 In 2006, based on industry figures provided by XM and Sirius, there are nearly 12 million subscribers to pay radio four times the number from two years ago. Subscribers to satellite radio 7 million XM 4.7 million Sirius 2.1 million XM 500,000 Sirius 2004 2006

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 31 Familiar with satellite radio 73% 89% In our study, familiarity with XM or Sirius satellite radio continues to be strong. 2004 2006 Subscribe to satellite radio 10% It s no secret that subscriptions to satellite radio have increased over two years. However, only 10% of Triple A listeners are enrolled for XM or Sirius. 2% 2004 2006 Very or somewhat likely to subscribe in the next six months 12% 8% The momentum for satellite radio appears to have slowed with these survey takers. People very or somewhat likely to subscribe to XM or Sirius has decreased. That, and those that were likely to subscribe two years ago did. 2004 2006

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 32 Podcasting Yes, podcast! 15% No, podcast. 85% Have you listened to a podcast on your computer or ipod in the past month? Podcasting is ahead of where ipods were two years ago. Double the number of people podcast as owned ipods in 2004 (15% compared to 7%). Podcasters by age 21% 21% 18% Podcasting is catching on first with 18-34 year old Triple A listeners. 11% 8% 18-24 25-34 35-44 45-54 55+

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 33 ipod/mp3 users Own an Apple ipod? 34% 7% ipod growth was one of the most obvious things we tracked in the two years. No surprise but eye opening to see it charted. 2004 2006 Own a portable MP3 player (not ipod) 14% 6% 2004 2006 Other brands of portable MP3 players have also grown. This could become even higher when Microsoft enters the market with their version of an ipod and itunes.

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 34 Own any portable MP3 player or ipod 48% 13% Huge growth as half of the survey now chooses to personalize their own mix of music and talk when they want it. 2004 2006 Own an ipod or other MP3 player 71% 59% 49% 38% 26% While usage is highest with the 18-24 demo, all ages of Triple A listeners are using ipod/mp3 players. One-quarter of survey takers over 55-years old have a portable MP3 player! Phenomenal penetration in all age cells for this music delivery device. 18-24 25-34 35-44 45-54 55+ 26% of ipod/mp3 users say ipod/mp3 is their primary music source Up from 17% in 2004 One-quarter of ipod/mp3 users say ipod/mp3 is their PRIMARY music listening method. This is a number radio should be aware of as it directly impacts the amount of music-listening time spent with radio. As we saw two years ago, ipod/mp3 usage continues to be a much greater threat to conventional radio listening than is satellite radio.

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 35 ipod/mp3 users listen to FM Radio LESS than does the total survey. And, like Downloaders, it s a big difference: 49% of ipod/mp3 users vs. 64% of the total listen to FM Radio MORE than other for music. Listen to FM Radio or other music sources more? 36% listen to other more 64% listen to radio more 51% listen to other more 49% listen to radio more TOTAL ipod/mp3 Users Note that some ipod/mp3 users may also be Downloaders but the groups are not completely made up of the same people (about 60% of the ipod/mp3 group are Downloaders; 80% of Downloaders are ipod/mp3 users)

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 36 68% of Triple A listeners have seen live music at a concert or in a club in the past month The Triple A audience is made up of music lovers and music consumers. That includes LIVE music. Concert goers by age 81% 74% 66% 64% 62% Regardless of age, Triple A listeners go to see live music. We note that this survey was done in the summer when there are often many more live music events, festivals and concert tours than at other times of the year. 18-24 25-34 35-44 45-54 55+

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 37 93% AGREE I ve discovered new artists or new bands in the past year that I really love 62% strongly agree 31% somewhat agree We found that Triple A listeners have found bands they love (key words) in the past year. Two-thirds strongly agreed with the statement. A hallmark of Triple A radio is that the format mixes old with new and actively promotes the new releases. Triple A is one of the few radio formats where adult listeners can still discover new music. 73% AGREE Record labels control what music gets played on the radio stations I listen to 35% strongly agree 38% somewhat agree The perception of payola and label control has been fostered by the media and Spitzer investigations and allegations. The public has picked up on that message and many feel that record label exert control over radio. 56% AGREE Radio stations I listen to are free to play whatever they want 19% strongly agree 37% somewhat agree When asked a different way, a majority agreed that radio stations are free to play whatever they want. But the passion for strongly agree didn t match the passion for the previous question of those people who strongly agree bout record label control. Do radio stations need to do a better job of promoting to listeners that they are free to choose and are not controlled by labels?

SBR Creative Media Music and Radio Listener Survey August, 2006 Page 38 How Triple A Listeners Buy and Hear Music 2006 www.sbrcreative.com 303.444.7700