This document provides an overview of the online video landscape. It notes that while TV viewing is still prominent, behaviors are changing as viewership fragments across multiple screens. Nearly 60% of US households now have broadband access and online video streaming is growing rapidly. Younger demographics are more likely to watch online video. Popular online video sites like YouTube see billions of views monthly. The document also discusses how online video provides opportunities for targeted and measurable video advertising compared to traditional TV. It predicts online video advertising spending will continue growing substantially in coming years.

1. Online Video LandscapePrepared by: Fuor Digital

2. Agenda Overview – State of Online Video Deep Dive – Digital Video Landscape Online Video Streaming for Advertisers Online Video Streaming Players What’s Next in Online Video

3. 3

4. TV is not dead The average American watches 153 hoursof TV per month 4 Source: A2/M2 Three Screen Report, Q1 2009

5. 5 But viewing behavior IS changing

6. Fragmentation continues to escalate 6

7. With DVR penetration inline with predictions As of March 2009, 30.6% of households in Nielsen’s People Meter Panel have a DVR, up from just 12.3% in Jan 2007 A growing number are becoming multi-DVR households - 25% of homes had two, while 5% had three or more 7

8. And Broadband access reaching over 60% of all US households 93.3% of Internet Users access the Web via a broadband connection 8 Source: MAGNA, US Census, April 2009; Nielsen 2010 Media IndustryFactSheet

9. More time watching across ALL screens Timeshifting usage with DVR is up 40%, with Americans playing back 8 hrs, 13 minutes per month. With broadband levels increasing, online video audiences will continue to grow as consumers begin to upgrade their PCs to support increased video consumption Mobile video viewing grew a significant 52% in Q1 09 from the previous year, up to over 13MM Americans. The most watched categories are comedy and weather 9

10. 56 Million U.S. adults are “Off The Grid” Results Show That 56 Million “Off The Grid” Consumers Are Slipping Past Advertisers Because They Are Removing Themselves From Live Broadcasting Ad Experiences This Off the Grid group represents nearly one third of the adult, online population in the United States – according to comScore, nearly 56 million people and growing. 10 SAY Media/ComScore New ResearchStudy Oct. 2010

11. U.S. consumers have watched their favorite TV programs on the following platforms: Source: Deloitte’s State of the Media Democracy Survey, Fourth Edition December 2009 From “Primetime” to “Mytime” 11

12. Video Where, When and How I want it 12

13. Online Video Landscape 13

14. Internet networking traffic is predicted to quadruple between 2009 and 2014 with online video as the primary driver of that growth. 14 Cisco Systems Annual Visual Networking Index Forecast, 2010

15. 15% Online video viewing soars 15 Source: comScore VideoMetrix, July 2010

16. And will continue to grow 16

17. Approximately one-quarter of US consumers watch Internet TV weekly. 17 Source: In-Stat, *The US Market for Web-Based TV Widgets and Applications* as cited in press release, April 20, 2010

18. Who’s watching? Television Audience Comp M 46% W 54% Internet Video Audience Comp The highest penetration of online video is among A18-24, followed closely by A25-34 year olds. 29% of under-25s get “most” of their TV online, compared to 8% of all online adults. From a sheer reach standpoint, the fastest growing demographic is among A45+ - while A35-49 are the fastest growing in time spent. W 53% M 47% 18 Source: *Retrevo, « Gadgetology Report, » April 9,2010 * A2/M2 Three Screen Report Q1 2009 *Nielson Online VideoCensus, 2009

19. Who’s Watching? Source: comScore, “Great Expectations”, August 2010. 19

20. When an impression means more than 1 18%+ Source: The Nielson Wire Blog - February 2010 20

21. What are they watching? Entertainment is by far the category leader in terms of reach, streams per streamer and minutes per stream 21

22. The rise of long-form Attributed to the success of online properties such as Hulu and the increase in Internet- enabled TV sets and other viewing devices. In-Stat expects US shipments of web-enabled devices that support TV applications to increase from 14.6 million this year to 83.4 million by 2014 22

23. Content options User Generated Content TV 23 Professional

24. Where are they watching YouTube is by far the category leader, accounting for 43.1% of all videos viewed online. Source: comScore Video Metrix May 2010 24

25. Beyond the top 10 25

26. Because size isn’t everything VS. 26

27. Why are they watching? Online video is for catching up, not replacing Source: The Nielson Wire Blog - February 2010 27

28. Online’s convenience appeals to viewers Convenience remains the key driver for online video use More males than females watch for convenience, while more females than males watch for portability Younger visitors (age 18-49) are more likely to cite convenience and/or portability as a reason for use Common Others: Can watch shows they missed Can watch shows that are no longer aired Q162: What are the top three reasons you watch TV shows on NBC.com? nQ1 =286 (Rotation Group) 28

29. When are they watching? Primetime hours dominate online views Lunchtime Bump: Likely a result of access to computers at work Note: Rewind usage scales are higher than TV scales Source: Nielsen and Omniture data, March 2010; Nielsen P2+ PUTs by hour for March broadcast month weekday viewing Live; Omniture visits by hour for March weekday only 29

30. Why Online Video? 30

31. The best of both worlds Traditional TV: sound, sight, motion, reach Traditional Digital: targetability, accountability, interactivity 31

32. Video ads account for nearly 10% of all videos viewed online Source: eMarketer, “U.S. Internet Users”, April 2010; comScore, June, July and August 2010. 32

33. Audiences have grown to accept online video ads Majority of audiences (~55%) find the presence of ads in online videos just as or more acceptable than ads in TV shows. Source: Frank N. Magid Associates, Inc., “Magid Media Futures 2010: Online Video”. 33

34. Digital video delivers measurable impact Premium Online Video vs. Non-Content Sites/Ad Networks Source: Nielsen IAG, P13+ July 2010 34

35. Digital video delivers measurable impact Premium Online Video vs. TV Ad Performance 65% 46% Source: Nielsen IAG, A18-49, July 2010 35

36. In an uncluttered... 36

37. Actionable 37

38. Targetable Geographic Day Part Show Demographic Channel/Sub Channel Behavioral 38

40. Video end

41. Video replay start

42. Video replay end

43. Video pause/un-pause

44. Video stop

45. Video rewind

46. Audio on/off39

47. “It appears that leveraging the large reach of TV in combination with the standalone impact and amplifying effect of online video makes for a successful marketing strategy” Dave Kaplan, Senior Vice President, Product Leadership at Nielsen IAG 40

48. TV + onlinedelivers superior results 18% 52% 44% 35% 53% 35% 29% 26% 31% 19% 17% 13% Source: Nielsen IAG, A18-49, July 2010 41

49. 43% of cross-platform viewers have momentarily stopped watching a TV program online to go to an advertiser’s website Source: comScore, “Great Expectations”, August 2010. 42

50. A billion dollar industry and growing 43

51. Set to outpace growth of every other ad format 44 Source: Growth stats derived from published study of projected spend growth by ad format , eMarketer, May 2010

52. By 2014 over 15%of advertiser’s online dollars are predicted to go towards video and 8.5% of their TV budgets eMarketer.com 2010 45

53. 46

54. Top streaming networks 47 Source: comScore VideoMetrix, July 2010

55. Streaming – a few things to remember It’s TV online CPM pricing model $30-$45 CPM Investment minimums vary by network Similar number of commercial breaks as on-air 1-3 commercials per pod Brand engagement vs. immediate conversion Re-purposed TV ads generate the best results On-air + online delivers the most impact 48

56. 49

57. TV will embrace the connectivity By 2015, 60% of all new TVs will have built-in network connectivity, and 70% of the connected sets ship with an embedded app platform and app store. Source:GigaOM Pro 2010 50

58. And get smarter Set-Top Boxes GetSmarter through EBIF Voting & Polling T-Commerce Lead Gen/RFI 51

59. Online Video Summary MORE Content Options Watching Screens Connectivity Interactivity Change More Opportunity to reach your consumer 52

60. Thank You!!!