1. Convergence – A global media company’s perspective Kevin Obi Senior Vice President – Digital Assets NBC Universal International

4. NBC International Universal brands TV Production & Distribution Film International Channels Diva TV Some content brands

7. Huge changes in media technology in recent years…. Streaming Video Digital Cable 2000-2007 VOD EPGs Broadband Portable Devices HDTV 1950’s 1960’s 1970’s Internet Digital Satellite 1990’s DVD PPV email 1980’s Iphone Sling box HDDVD Blu-ray disc Satellite

8. .. accompanied by changes in the media consumer Now 1950s

11. Possible future scenarios Audience inertia and existing barriers prevent mass shift to new media platforms – except for short form content 1 - Status Quo Internet enabled long form content ‘on-demand’ gains traction and a significant proportion of the linear TV audience, but sits alongside and complements linear TV 2 – ‘On demand’ TV 3 -’True’ Anywhere / Anytime TV The norm becomes for consumers go around traditional broadcasters and search for content on the internet, obtain this directly from content ‘owners’ (or illegally) rather than watch linear TV

12. … but barriers exist to true anytime/anywhere TV Home Broadband Connection Port PC TV Internet 2. Connection from BB port to TV or “the last 10 feet” 3. Viewer inertia – low desire to watch TV on PC 1. Pipe thickness needs to be 6 Mbps+ “ Only 6% of US viewers have ever connected a computer to a TV to watch internet video” Harris Interactive Entertainment, 2007 US survey Diagram: LEK Consulting Others barriers include: licensing, windowing, business models

13. Can we see the future in younger audiences?

14. New competitors have also emerged – UK example Examples Competitive Advantage Challenges Category Major broadcasters Internet companies Device driven players Telcoms/IPTV Emerging Web TV/Video companies Others NBC Universal, BBC, ITV, Chanel 4, BskyB Amazon Unbox, Google Video, Yahoo, AOL, MSN iTunes, Xbox live, Sony PSP, TV manufacturers BT Vision, Orange, Tiscali Joost, Babelgum Vudu Customer memory, making partnerships work, Licensing Don’t own content, PC solution Access to content, installed base, customer experience Limited content, closed system, critical mass of customers Premium content, brand, audience, PC solution, Technology Another set-top box Own content, customer facing brands, cross-promotion capability, audience shares, catch-up TV Online audience share, deep pockets, internet experience Installed base of devices (which drive adoption), partnerships with DTH/IPTV players, TV solution Control broadband infrastructure, deep pockets, usability Internet experience, involvement of some major content owners TV solution, clever technology, content deals

16. The major challenge for media companies “ How do we make the transition from our businesses of today to the future businesses of tomorrow, without destroying the businesses of today?”

17. Response from a ‘traditional’ media company Content is ‘king’ - continue to make great content Compete against increasing power of Internet distributors - control distribution, branding and the user experience Build stand-alone value in online destination sites Take a few ‘bets’ on the digital media ‘stars’ of tomorrow 1 2 3 4

23. Thank you!