This presentation describes how broadband-delivered video is disrupting the traditional video business and how players can profit from the transformations underway. Numerous current examples of successful video providers are shared.

1. © Copyright 2007. Broadband Directions LLC. All rights reserved. Page Profiting from Broadband Video’s Disruptive Impact Will Richmond President Broadband Directions LLC December 2007 © Copyright 2007. Broadband Directions LLC. All rights reserved.

2. Legal Disclaimer © Copyright 2007. Broadband Directions LLC. All rights reserved. Page All information contained in this document is proprietary to and copyrighted by Broadband Directions LLC, except as described below. You may not alter or remove any trademark, copyright or other notice from any copy of this document. Broadband Directions and the Broadband Directions logo are trademarks of Broadband Directions LLC. All other trademarks used in the document, including the logos of third parties reproduced herein, are the property of their respective owners. All web site images and content of companies excerpted in this document are the copyrighted material of their respective owners. Neither Broadband Directions LLC nor any other party is responsible for any deficiencies in the accuracy, completeness or timeliness of any information contained in this document, or for any decision made using such information. In particular, information contained in this document was gathered over a specified period of time, and it is possible that such information has changed since it was collected and is out of date as of the publication of this document. The opinions contained in this document reflect the judgment of the author at the time of publication and are subject to change. This document is designed to provide general information on the subject matter covered. It is not intended to provide personalized advice or guidance. You are responsible for properly analyzing and verifying any information you intend to rely on.

4. © Copyright 2007. Broadband Directions LLC. All rights reserved. Page “ Broadband-delivered video is the single most disruptive influence on the traditional video distribution value chain.”

6. Traditional Video Distribution Value Chain © Copyright 2007. Broadband Directions LLC. All rights reserved. Page Source: Broadband Directions LLC $ $ $ $/other Consumers Advertisers $ $ $ Producers and Rights Holders Cable TV Networks Retail Distributors (cable TV or satellite) Broadcast TV Networks & Stations

7. Broadband is an Open Video Delivery Platform © Copyright 2007. Broadband Directions LLC. All rights reserved. Page Internet Cable modem or DSL Computer Television ? Broadband Network Portable Video Player (e.g iPod, Zune) ? Source: Broadband Directions LLC Video Servers (e.g. Yahoo, CNET, MLB ) Video Servers (e.g. YouTube, NYTimes, Budweiser)

10. 1. Broadband Enables Direct-to-Consumer Models © Copyright 2007. Broadband Directions LLC. All rights reserved. Page Source: Broadband Directions LLC Consumers Advertisers $ $ $ $ Broadband access only $ $ Cable TV Networks Retail Distributors (cable TV or satellite) Producers and Rights Holders Broadcast TV Networks & Stations

11. Examples of Direct-to-Consumer Models © Copyright 2007. Broadband Directions LLC. All rights reserved. Page All images are the property of their respective copyright owners.

12. 2. Broadband Enables New Video Distributors © Copyright 2007. Broadband Directions LLC. All rights reserved. Page Source: Broadband Directions LLC $ $ Broadband Video Distributors $ $ Consumers Advertisers Advertisers Broadband access only $ Retail Distributors (cable TV or satellite) Producers and Rights Holders Cable TV Networks Broadcast TV Networks & Stations

13. Examples of New Video Distributors © Copyright 2007. Broadband Directions LLC. All rights reserved. Page Video Sharing & Community Sites Portals/Search Aggregators & Syndicators All images are the property of their respective copyright owners.

14. 3. Broadband Enables New Video Providers © Copyright 2007. Broadband Directions LLC. All rights reserved. Page Source: Broadband Directions LLC New Video Providers (startups, incumbent non-video media or marketers) Broadband access only $ Consumers Advertisers Advertisers $ $ $ $ Broadband Video Distributors Retail Distributors (cable TV or satellite) Producers and Rights Holders Cable TV Networks Broadcast TV Networks & Stations

16. Current Video Distribution Value Chain © Copyright 2007. Broadband Directions LLC. All rights reserved. Page $ $ $ $/other Subscribers Advertisers $ $ $ Producers and Rights Holders Cable TV Networks Retail Distributors (cable TV or satellite) Broadcast TV Networks & Stations

17. © Copyright 2007. Broadband Directions LLC. All rights reserved. Page Future Video Distribution Value Chain? Source: Broadband Directions LLC All Video Providers Advertisers Advertisers $ $ $ $ Broadband Video Distributors Consumers $

18. © Copyright 2007. Broadband Directions LLC. All rights reserved. For daily analysis and news aggregation, visit: www.videonuze.com Broadband video news and analysis….

19. © Copyright 2007. Broadband Directions LLC. All rights reserved. Page Thank You Will Richmond President Broadband Directions LLC [email_address] 617-699-4459 www.broadbanddirections.com © Copyright 2007. Broadband Directions LLC. All rights reserved.