Cisco Visual Networking Index: Forecast and Methodology, 2015–2020 White Paper Following is the methodology through each step for a single application category (in this case, Internet video) where the estimation process is illustrated. Step 1: Number of Users Step 2: Application Adoption Step 3. Minutes of Use The forecast for Internet video begins with After the number of Internet video users has For each application subsegment, minutes of estimations of the number of consumer fixed been established, the number of users for use (MOU) are estimated. Multiple sources Internet users. Even such a basic measure each video subsegment must be estimated. It are used to determine MOU: The Cisco Data as consumer fixed Internet users can be was assumed that all Internet video users view Meter data collection program provides a difficult to assess, because few analyst short-form video in addition to other forms of minute-per-subscriber baseline for many firms segment the number of users by both video they may watch. The number of Internet applications, the Cisco Connected Life Market segment (consumer versus business) and video users who watch long-form video Watch survey provides MOU for markets that network (mobile versus fixed). The number (based partially on comScore Video Metrix are not covered by the usage program, and of consumer fixed Internet users was not figures for video sites whose average viewing comScore Video Metrix provides PC- and taken directly from an analyst source but was time is longer than 5 minutes), live video, mobile-based MOU for online video. Special estimated from analyst forecasts for consumer ambient video, and Internet personal video care is taken to help ensure that the total broadband connections, data on hotspot users recorder (PVR) is estimated. number of Internet video minutes is well within from a variety of government sources, and the total number of video minutes (including population forecasts by age segment. The television broadcast) for each user. For number of Internet video users was collected example, if the average individual watches a and estimated from a variety of sources, and total of 4 hours of video content per day, the the numbers were then reconciled with the sum of Internet, managed IP, and mobile video estimate of overall Internet users. hours should be a relatively small portion of the total 4 hours. © 2015 Cisco and/or its affiliates. All rights reserved. 8

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