Consumers Changing the Way they Access Media

NEW YORK - Consumer media habits are changing as people watch video-on-demand services through their cable or satellite provider (10 percent in the past month), access news online (11 percent in the past month) and listen to Internet radio (37 million in the past month), according to a new study by Arbitron Inc. (NYSE: ARB) and Edison Media Research.

The study, Internet and Multimedia 2005: The On-Demand Media Consumer , finds that an estimated 27 million Americans own one or more on-demand media devices - such as a TiVo®/DVR, iPod® or other portable MP3 player - and also exhibit multiple behaviors that show a heavy tendency toward an on-demand media lifestyle.

The study focuses on devices and services that allow Americans to exercise more control over the media they consume:

• Twenty-seven percent of 12- to 17- year olds own an iPod or other portable MP3 player. An estimated 43 million Americans choose to record TV programming to watch at a different time (using technology such as a VCR or TiVo/DVR).
• Seventy-six percent of consumers own at least one DVD. Thirty-nine percent own 20 or more DVDs in their personal collection.
• Awareness of XM Satellite Radio has tripled since 2002, from 17 percent to 50 percent, while awareness of Sirius Satellite Radio has increased even more significantly, from eight percent to 54 percent.

"The study shows that consumers, while still using traditional media, have great enthusiasm and passion for on-demand media," said Bill Rose, senior vice president of Marketing, U.S. Media Services, Arbitron Inc. "Traditional and Internet broadcasters need to adjust their approaches to accommodate this increasingly important consumer segment."

"Consumers are taking more control over the media that they use, how they use them and when they use them," said Joe Lenski, executive vice president, Edison Media Research.

Additional findings from the study include:

• Those who use on-demand audio devices/services spend only slightly less time listening to traditional radio compared to the average. The average consumer spends approximately 2 hours 48 minutes per day listening to traditional radio, compared with 2 hours 33 minutes per day among those who owned iPods/portable MP3 devices, subscribed to satellite radio or listened to Internet radio during the past week.
• Broadband connections are just as common as dial-up connections in American households. Forty-eight percent of people with home Internet access have broadband and 48 percent have dial-up service.
• The monthly Internet video audience is estimated to be approximately 35 million people; the weekly online video audience is nearly 20 million.
• The number of Americans who made a purchase from a Web site in the past week has more than tripled, with four percent having purchased online in the past week in 2001 compared to 14 percent in 2005.
• Ten percent of Americans with household income of $100,000 or more own a hand-held wireless e-mail device such as a BlackBerry®, compared to three percent of Americans 12+.

The findings reported here are based on a January 2005 survey consisting of 1,855 telephone interviews with a randomly selected national sample of Arbitron's Fall 2004 radio diarykeepers. Since 1998, Arbitron and Edison Media Research have conducted 13 groundbreaking studies to find out about how consumers are using the Internet, streaming media and other new devices or services. This latest study, as well as previous studies, may be downloaded free of charge via the Arbitron and Edison Media Research Web sites at www.arbitron.com and www.edisonresearch.com .

About Edison Media Research
Edison Media Research conducts survey research and provides strategic information to radio stations, television stations, newspapers, cable networks, record labels, Internet companies and other media organizations.

Edison Media Research works with many of the largest American radio ownership groups, including Entercom, ABC Radio, Infinity, Bonneville and Westwood One, and also conducts strategic and perceptual research for a broad array of companies including AOL/Time Warner, Yahoo!, Sony Music, Princeton University, Northwestern University, Universal Music Group, Time-Life Music and the Voice of America. Edison Media Research also conducts research for successful radio stations in South America, Africa, Asia, Canada and Europe.

Beginning in 2004, Edison Media Research conducts all exit polls and election projections for the six major news organizations - ABC, CBS, CNN, Fox, NBC and the Associated Press - and designed and operated the CNN RealVote election projection system in 2002.

All of Edison Media Research's industry studies can be found on the company's Web site at www.edisonresearch.com and can be downloaded free of charge.

About Arbitron
Arbitron Inc. (NYSE: ARB) is an international media and marketing research firm serving radio broadcasters, cable companies, advertisers, advertising agencies and outdoor advertising companies in the United States, Mexico and Europe. Arbitron's core businesses are measuring network and local market radio audiences across the United States; surveying the retail, media and product patterns of local market consumers; and providing application software used for analyzing media audience and marketing information data. The Company has also developed the Portable People Meter (PPM ^{SM ), a new technology for media and marketing research.}

^{Arbitron's marketing and business units are supported by its research and technology organization, located in Columbia, Maryland. Arbitron has approximately 1,700 employees; its executive offices are located in New York City.}

^{Through its Scarborough Research joint venture with VNU, Inc., Arbitron also provides media and marketing research services to the broadcast television, magazine, newspaper and online industries.}