Rethinking the Weather: Or, How I Learned to Stop Worrying and Love The Weather Channel

Rethinking Weather: Or, How I Learned to Stop Worrying and Love The Weather Channel

‌know the ground, know the weather, and victory will be total -Sun Tzu

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Economic cost of “ordinary” weather?

- Approximately ~$485B/year

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Weather Touches Everyone

Weather Apps #1 Category Accessed by Mobile App Users % Reach Weather Social Networking Maps News Search Sports Information Photo or Video Sharing‌ Bank Accounts Restaurant Information Entertainment News Movie Information Digital Books/Magazines Traffic Reports Stock Quotes or Financial‌

Source: comScore MobiLens October 2011, Audience = 13+

17.7 17.3 15.0 8.8 8.2 7.3 6.7 6.7 5.4 5.3 5.2 5.2 4.5 4.4

The Weather Channel Reach Represents ~90% of weather category**

1B+

163M

70%

Consumer touch points each month*

Unduplicated Consumers – 18% growth since 2009**

Of consumers use 2+ platforms**

Source: *Source: Nielsen Media-TWC cable GRPs; comScore Media Metrix- Weather.com total visits; and comScore Mobile Metrix- TWC total visits for Sept 2011. **Magid/TWCC Quarterly Tracking Study, 4Q09/4Q11

The Weather Channel Reach Rank

Daily Uniques

Source: comScore September 2011

Property

1

Google Sites

2

Facebook.com

3

Yahoo! Sites

4

Microsoft Sites

5

AOL, Inc.

6

The Weather Channel

7

Amazon Sites

8

Apple Inc.

Nearly 15M daily uniques

75% log on by typing weather.com or bookmarking the page

Re-thinking Weather: Abnormal as Normal?

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Re-thinking Weather: Abnormal as Normal?

Driest on Record

Wettest on Record

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insurance

10

agriculture

11

retail

12

energy

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The Future in Weather Data / Technology

GOES-R (next-gen satellite) Dual Pole Radar (next-gen radar) Warn on Forecast (2X lead times)

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New Challenges beget New Opportunities

“Weather is a much more important determiner of merchandise than many of these other factors that are built into our store systems�

Steve Ballmer, Microsoft CEO Key Note, National Retail Federation Annual Convention NYC, 2007 15

Industry Opportunities

Insurance (loss avoidance/claims processing/customer service) Retail (advertising/supply chain optimization/staffing) Energy (operational efficiency/improved production planning/solar and wind) Agriculture (production planning/hedging) 16

2011 NAO Index

the next 3 months

2010 NAO Index

Source: Weather Services International. A Weather Channel Company 17

Historical pattern following very high November/December NAO Indices

the next 3 months

Source: Weather Services International. A Weather Channel Company 18

the next 3 months

Source: Weather Services International. A Weather Channel Company 19

the next 3 months 1200

Natural Gas Weather-Driven Demand (Weighted Heating Degree Day) 1029 1000 916 878 813 768

800

740 634

647 601

600

2012 Forecast Normal 2011

400

200

0 January

February

March

Source: Weather Services International. A Weather Channel Company

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Re-thinking Weather: From Cope and Avoid

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Re-thinking Weather: To Anticipate and Exploit

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