Market Overview

Total Consumer Savings Reach $3.5 Billion Under Set-Top Box Energy Efficiency Agreement

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Consumers used more than 100 million connected devices in 2017 to
access multichannel video services without a set-top box

Consumers have saved $3.5 billion, and more than 20 million metric tons
of carbon dioxide (CO2) emissions have been avoided as a
result of the voluntary set-top box energy conservation agreement among
pay-TV providers, manufacturers and energy efficiency advocates,
according to a new report
issued today by independent auditor D+R International. The energy saved
during the first five years of this award-winning program is enough to
power all homes in Los Angeles County with electricity for almost a year.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180809005700/en/

Signatories of the Voluntary Agreement include all of the major
multichannel video service providers representing more than 93 percent
of the U.S. multichannel video market (AT&T/DIRECTV, Comcast, Charter,
DISH, Verizon, Cox, Cablevision, Frontier and CenturyLink), major
manufacturers (ARRIS, Technicolor, and EchoStar Technologies) and
energy-efficiency advocates (Natural Resources Defense Council and the
American Council for an Energy-Efficient Economy (ACEEE)).

D+R found that the Voluntary Agreement has reduced national set-top box
annual energy consumption by 34 percent since 2012, nearly enough to
eliminate the annual generation produced by four typical 500-megawatt
coal-run power plants. These energy savings have been achieved even as
functionality and features of set-top boxes have increased significantly
over this period.

Year-over-year energy savings increased by nearly 50 percent from 2016
to 2017 as the companies successfully completed their commitment to meet
an even more rigorous set of energy efficiency levels that became
applicable in 2017 under the terms of the agreement developed with the
energy efficiency advocates and endorsed by the Department
of Energy
in 2013. In 2017, 97.5 percent of service providers'
set-top box purchases met these new levels, better than the 90 percent
commitment under the Voluntary Agreement. D+R found that savings were
also bolstered by the fact that nearly all digital video recorders
(DVRs) in the field today were purchased under the Voluntary Agreement's
energy-efficiency standards, and that new DVR models now use an average
of 46 percent less energy than the models purchased prior to the
Voluntary Agreement.

"To date, the Voluntary Agreement has brought progress in set-top box
energy efficiency in the form of energy and cost savings to
more than 90 million US households," said Jennifer Amann, Buildings
Program Director for the American Council for an Energy-Efficient
Economy (ACEEE). "We look forward to continuing to work with the
industry to ensure ongoing improvements to set top boxes and related
advances will save consumers even more on energy costs while reducing
emissions."

"The first generation of federal set-top box energy regulations that was
considered by the Department of Energy in 2013 by law could not have
become effective until this year, and adoption of such rules could have
impaired innovation in new equipment and services," said Doug Johnson,
CTA's vice president of technology policy. "By contrast, the Voluntary
Agreement is already moving toward its third generation of improved
energy standards, has already saved consumers billions of dollars, and
has facilitated the rollout of new services such as cloud DVR,
multi-room services, and 4K Ultra High Definition set-top boxes."

According to Noah Horowitz, Senior Scientist at the Natural Resources
Defense Council (NRDC), "The cable, satellite and telephone companies
have made significant progress in bringing down the energy use of the
set-top boxes they place in our homes. The energy savings verified by
D+R's report are a big deal, and even more promising is the industry
drive toward apps where consumers can access both live and recorded
programming directly on their new Smart TV or via a device that uses
very little power like an Apple TV or Roku stick that they purchase.
This eliminates the need for a set-top box from their service provider
and the energy costs and resultant pollution that come with it."

To track the progress of energy savings resulting from the service
providers' apps, the revisions to the Voluntary Agreement adopted in
2018 as part of a four-year
extension
of its commitments required that the service providers
report the actual number of unique customer-owned devices that were used
in the prior year to access their apps, such as Smart TVs, low-power
sticks or other devices that connect to TVs, tablets, smartphones, and
personal computers. D+R's report shows that consumers used nearly 103
million of these devices to access the providers' video services in 2017,1
compared to an estimated 207 million set-top boxes still in the field.
Some of these devices are used in addition to set-top boxes, such as
viewing on smartphones outside the home, while other use cases can
replace set-top boxes, such as viewing on tablets in rooms where the
customer might have placed another television, or on SmartTVs or
connected TVs without a set-top box. Every signatory supported apps,
each on between four and fourteen different retail platforms, such as
Samsung, LG, Roku and Roku TV, Apple TV, Android TV, Amazon Fire TV and
Kindle Fire HD, Google Chromecast, Android and iOS tablets and
smartphones, Xbox One, and personal computers. Additional platforms are
under development, such as through Comcast's Xfinity TV Partner Program
that is open to all platforms that support an HTML5 browser.

"The new data on consumer usage of apps shows that multichannel video
providers have been successful in making their services available on a
wide variety of retail devices in lieu of set-top boxes," said Neal
Goldberg, NCTA's General Counsel. "One third of all devices used by
consumers to access MVPD services in 2017 were not operator-provided
set-top boxes, and as that percentage continues to increase, consumers
will save even more energy in addition to enjoying more choice in how
they watch video."

D+R confirmed the energy savings calculated in its report by reviewing
data on every 2017 new set-top box purchase by pay-TV providers, backed
up by an in-depth audit of one randomly selected service provider, as
well as energy testing inside customer homes conducted by Intertek
Testing Services NA Inc., an internationally recognized energy-testing
firm.

About NCTA - The Internet & Television Association:

NCTA - The Internet & Television Association represents network
innovators and content creators that connect, entertain, inform and
inspire consumers every day. NCTA's members have invested $275 billion
in private capital to build the world's most powerful technology
platform, reaching 93 percent of American homes and serving 63 million
customers. More than 200 programming networks are creating imaginative,
popular and award-winning television content. Our industry supports 2.9
million American jobs and employs at least 300 people in every
congressional district.

About Consumer Technology Association:

Consumer Technology Association (CTA)TM is the trade
association representing the $377 billion U.S. consumer technology
industry, which supports more than 15 million U.S. jobs. More than 2,200
companies – 80 percent are small businesses and startups; others are
among the world's best-known brands – enjoy the benefits of CTA
membership including policy advocacy, market research, technical
education, industry promotion, standards development and the fostering
of business and strategic relationships. CTA also owns and produces CES®
– the world's gathering place for all who thrive on the business of
consumer technologies. Profits from CES are reinvested into CTA's
industry services.

1 This figure only counts devices that were used in 2017 to
access the parties' own apps, and not, for example, apps offered by
programmers or other content providers.

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