Presentation of a survey of finance and governance for Joint Industry Committees (JICs) and Television Audience Measurement.

1. MEDIJSKA MJERENJA I ISTRAŽIVANJA ZAGREB 2015
FINANCIAL ASPECTS OF TV
JOINT INDUSTRY COMMITTEES (JICs)
Christopher O’Hearn
General Manager, Emirates Media Measurement
and
Project Director, 3M3A

3. Building a JIC is a change process
Build coalition
WHO
Create Vision
WHAT
Establish Case
WHY
Communicate
CLARITY
Enable Action,
Clear Obstacles
HOW
Score Goals
WINS
Sustain Change
CONTINUE
Cement Change
END STATE

4. Create a stakeholder body or JIC, whether formal or informal
• Legal structure, business plan, operations
Determine a general specification and options for an
audience measurement system
Pilot and testing by interested vendor(s)
Tender, contract award and negotiation
Project implementation (including establishment survey)
Technical testing and signoff
This journey may be two years
The Roadmap

5. Classic JIC Structure
Owners’
Board
TAM Brand
Operator
JIC – Joint Industry Committee of owners
and shareholders provide
board level management and funding
‘Public’ entity to sell data, manage operator
and represent to industry
Contracted to manage panel
and produce data.
Industry Board &
Technical Committee
Media, agencies, clients,
govt, for support and
consultation
Industry Clients
No direct relationship
between clients and
operator

6. TAM Governance Types
JIC – Joint Industry Committee
• Formal entity with representatives of broadcasters and agencies, sometimes
advertisers
• “The principle of Effective Industry Consultation is inherent to a JIC”
• Ensures user/customer-led methods and access
MOC – Media Owners Committee
• Typically broadcasters who guarantee funding and draw up specifications
• Agencies and advertisers play consultative or technical roles
Owned Service
• Operator or research agency runs the system
• Usually with some certainty of market support and non-competition
Source: GGTAM
• Effective Industry Consultation
• Meeting total market needs
• Full disclosure
• Fair and open access
Some Basic Principles

7. (Source: Japan Audience Measurement Report; Syfret & Ruud for CASBAA; 2013)
Typically $2000-2500 per HH p.a.
i.e. $2m per year
Cost of TAM
Country Universe Homes Panel HHs Panellists Ratio
Norway 4.6m 2.1m 1060 2,300 1:2000
Czech
Republic
9.9m 4.1m 1850 4,500 1:2200
Finland 5.1m 2.2m 1100 2,550 1:2000
UAE 6.0m 1.8m 850 2,800 1:2100
Sth Korea 46.2m 17.3m 4320 11,500 1:4000
UK 57.6m 26.5m 5800 12,600 1:4600
Croatia 4.5m 2m 980 @
2.3/HH
2,250 1:2000

8. Case for growth – introduction of electronic TAM in Pakistan 2007
2000 2007 2015
No. of TV Channels 2 23 42
TV Ad Spend (USD Mill) 50 150 400

9. 3M3A Survey for ABC
17 Countries
Australia
Canada
Czech Republic
Finland
France
Germany
India
Ireland
Lebanon
Netherlands
Norway
Pakistan
Romania
Sweden
Switzerland
UAE
United Kingdom
We asked about…
• Media coverage
• Type of entity
• Age and Size
• Ownership
• Source of funding
• Division of funding
• Technical committee
• Control
• Auditing
Additional Information: Japan Audience Measurement
Report; Syfret & Ruud for CASBAA; 2013

10. Types of Entity
JICS (or TRCs)
UK
Sweden
Netherlands
Canada
Lebanon
Ireland
Czech
France
Switzerland
India
Romania
Germany
UAE
Hong Kong*
Italy*
Sth Africa*
* = Source: JAMR Report; Syfret & Ruud, 2013
MOCs
Australia
Norway
Philippines*
Owned System
Finland
Pakistan
Japan*
Malaysia*
Poland*
Russia*
South Korea*
Spain*
Taiwan*
Thailand*
US*
16
11
3
JICs tend to be
European but
there is no single
model

11. Coverage & Structure
17
4
4
Years
20+ 7
10-20 5
-10 5
Size
20+ 6
10-20 3
-10 8
Ownership
All media, agencies 10
Principal media 3
Industry bodies 2
Suppliers 2
Industry bodies tend to represent non-
broadcasters i.e. agencies and to a lesser
extent advertisers

12. Finance by Owners
76%
Average
Amount of
Owner
Funding
Wholly/Mainly owner funded 11
Partly owner funded 3
Broadcaster Funding
Market Share 7
Fixed or Flat 4
AUS, FIN, CZE, UAE
Agency Funding
Market Share 2
Fixed or Flat 3
Industry Body 2
Establishing a JIC requires a long-term
commitment for owners to underwrite

13. Finance by Subscription
56%
Subscription
Average
More than 50% subscription 2
50% or less 3
Broadcaster
Subscription
Viewing Share 5
AdShare 2
Agency
Subscription
Market Share 5
Fixed or Flat 4
Advertisers (Fixed) 5
• Excludes OS (2) which are wholly market funded
Subscription revenue tends to
be supplementary

14. Governance
All had a general technical committee or advisory group
• Including Owned Services
Control and Decision Making
• Rests with owners (16) except
in Ireland
• Wider groups shared control in
3 cases (Ger, Leb, Ire)
• 16 included broadcasters, only
Lebanon excluded them
• 12 included agencies
• Norway, Pakistan, Czech did not
include agencies
• Switzerland and UAE included
external advisors
• 9 included advertisers
• 1 (India) included a regulator
Auditing is a mixed picture
• 10 had external audit
• 6 had a mix of external and
internal
• The UK has a permanent
audit function
Audit Frequency
• 10 ongoing or continuous
(incl UK)
• 3 regular longer than annual
• 4 occasional

15. Conclusions
There may be no right, but there is no wrong !
European countries have gravitated to JICs
The market expects owners, mostly media players, to bear
70-80% of costs over the life of the system
Advertisers are unlikely to be directly involved
Management of all stakeholders is essential
There is no single universal model for TAM or even JICs
Agency involvement and contribution is highly localised

16. Christopher O’Hearn
chris@tview.ae
www.tview.ae
+971 52 983 0803
cohearn@3m3a.com
+44 7980 300 951
www.3m3a.com
November 17, 2015