Ni F Ty Tv Standards Mar2009 With Chart

Company Background

Network Foundation Technologies (NFT) is the leader in online distributed
broadcasting, specializing in LIVE events and long play video.
bd i i li i i LIV dl l id

Founded in 2001, 40 employees, offices in Ruston, LA and Los Angeles, CA.

NFT enables the creation of online broadcast networks for both live and
pre‐recorded content.

Ongoing support from the National Science Foundation for our unique
work in distributed broadcasting (NSF SBIR IIP‐0750136).

One Patent issued (#7,035,933); Three additional patents have been
“allowed” by the Examiner (about to issue); Six additional patents pending.


Management Team
Marcus Morton, Co‐founder and President
Business entrepreneur, in music, film, multi‐media and technology.
Co‐founder, along with Mike O’Neal, of OneNetNow.com, sold to EarthLink in 2001.
Former VP of EMI Records, senior West Coast officer.

Dr. Mike O’Neal, Ph.D., Founder and Chief Scientist
Inventor of NFT’s patents.
Former Chair of Computer Science at Louisiana Tech Univ.; Larson Professor.
Ph.D. in Computer Science.

Michael Chin, Chief Operating Officer
Former Global Head of Customer Relationship Management systems for Apple.
Co‐founder of Vroom Technologies, system software for the Telecom industry.
25 years Technology Industry experience; including Symantec and Time Warner.

John Grindley, Vice President of Operations
Former Executive Director, Robinson Film Center, Shreveport, Louisiana.
•
Former Marketing Director for Fox Sports Net Arizona, KSAZ/FOX and KUTP/UPN45.
•
Ten year career in television and film industry.
•
Recipient of the first annual “40 Under 40” Award – Given by the Greater Shreveport Chamber of Commerce.
•
BA in Communications, Northeast Louisiana University.
•


We bring television to the Internet

• Increase online viewership by as much as 30-40 Times over
current PPV efforts.
t ff t
• Build on fan affinity
• Grow relationship with geographically displaced fans
• Monetize non-network content (cheerleaders, interviews, bios)
• Build fan loyalty with behind the scenes access

“The league (AFL) seemed to have picked a few teams to showcase on
TV and selected a few others to broadcast on the AFLNET, the rest of us
were left without a way to see our teams when they were out of
town. When they announced this year that all af2 games would be
shown on NiFTyTV our fan base was thrilled. I haven't missed a single
game this season because of your efforts.”
- St
Steve Litaker, C d P k TX
Lit k Cedar Park,


Empowers Dramatic Cost Savings


Traditional Streaming Model

Central server distributes video feed.
•
Content owner pays for each
•
connection viewing the stream.
connection viewing the stream
Also referred to as the “CDN (Content
•
Delivery Network) Model”.
Difficult to scale; viewership often
Diffi lt t li hi ft
•
“capped” to avoid excessive
bandwidth cost and network
congestion.
congestion
Economics favor ISP and Bandwidth
•
providers.


NiFTyTV Distributed Model

Central server distributes
•
limited number of direct feeds.
Users receive video feed
•
through network of users.
Excess bandwidth of audience is
•
used to distribute broadcast.
Web traffic efficiency improves
•
with more viewers.
Scalable architecture, service
•
more viewers with existing
infrastructure.
Content owner pays for a
•
limited number of streams.
Economics favor content and
Economics favor content and
•
network infrastructure
providers.

How NiFTy TV Differs from P2P
• NFT’s core algorithms implement a distributed broadcast technology that overcomes many of the
problems associated with P2P (peer-to-peer) systems.

• NFT’s network architecture is tailored to deliver live broadcasts, not just pre-recorded material as with
P2P.

• NFT’s technology does not continuously tap end-users’ bandwidth as with P2P, instead it only uses
bandwidth while the end user is tuned to a program
end-user program.

• NFT’s technology does not store files on end-user computers. (To be effective P2P systems must
cache content throughout the network.)

• NFT’s technology is polite. NFT immediately ceases use of end-user bandwidth when the end-user
needs that bandwidth – while continuing to provide seamless video.

• NFT’s technology avoids “super-noding” – no node in a NFT network is ever asked to supply video to
more than two other nodes.
nodes

• NFT’s technology delivers an exceptional Quality of Service. NFT networks use the turnover inherent in
distributed networks (as viewers tune in and tune out) to promote the most reliable nodes to the most
critical regions of the network, driving the network towards highly stable configurations.


Comparing Models

NiftyTV
Criteria Traditional Streaming
Viewing model
Viewing model Pay per view is barrier to entry to the
Pay‐per view is barrier to entry to the Free For View Consumers pay
Free‐For‐View ‐ Consumers pay
most loyal fan. nothing.
Advertising supported broadcasts.
On‐line viewership is low – none by
casual fan.
Content owner pays for a limited number
Content owner pays for a limited number
Content owner pays for each viewer.
Content owner pays for each viewer
Bandwidth
Bandwidth
of server connections.
Expense Costs are set by projected peak usage
Usually a fraction of the cost of what the
(old cell phone method) .
leading streaming companies charge.
Viewership is limited to control costs. No limit set to viewership.

Limited opportunity with Windows
Branding Multiple brand opportunities w/ custom
Media Player or Flash. players, commercials and hyper‐links.
Nifty allows simultaneous web surfing
Windows Media Player or embedded
User Experience
and other work while continuing to
d th k hil ti i t
in web pages.
b
view video feed.
Web model limits other web activity.
Player icon on desktop allows quick
launch of the Nifty TV player.
Demographic, geographic and specific
User Data
User Data Limited data available on viewers and
Limited data available on viewers and
user behavioral data is readily
user behavioral activity.
available.


NiFTyTV Broadcast Model

• Free‐For‐View model
– Long form television‐like viewing
– Eliminate barriers to engagement (no cost to the viewer)
– Burden of bandwidth cost not passed to the viewer
Burden of bandwidth cost not passed to the viewer
• Patented technology
Dramatically improves broadband network efficiency
–
Maximize existing infrastructure; scales easily as audience grows
–
Reach large audiences at much lower costs than traditional solutions
–
Optimized for both live and pre recorded content
Optimized for both live and pre‐recorded content
–
• Extensive brand opportunities
– Branded players, pre‐roll, interstitial, hyper‐linked scrolls
– Capture of DATA: geographic, demographics and viewing activity


NiFTyTV Players Can Be Branded!
New  16:9 widescreen format.
Significantly
improved bit rate
p
resulting in Higher
Quality Picture.

Your audience will
receive a 300 350
receive a 300‐350
Kbps (or better)
feed. Up from 250
Kbps or 175 kbps in
2008.

Result:  The picture
Ad Scroll in Full Screen quality will improve
mode: a CNN‐style for ALL viewers in
'ticker' at the bottom of 2009 and
the screen below the
the screen below the approximately
approximately
DOUBLE for most
video image.  Scroll is
viewers.
now available while
player is in full screen
mode.


NiFTyTV Players Can Be Branded!
Custom Branding
– Your Logo Here

Linkable scroll bar
Linkable scroll bar –
Click to any site, link is
Multi‐Channel Selector dynamic, can change
constantly.
(multiple video stream
can be accessed thru a simple
player)

Volume Control
Introduction of VOD
Introduction of VOD
(Video On Demand)
for games that are
outside of the one
week quot;encore
presentationquot; time
t ti quot; ti
frame. Full Screen Toggle


Live Online Sports Market

• Large availability of content
– No traditional media contracts

– Events are already being produced and recorded

– Loyal fan base interested in live events

– Advertisers love sports

• Challenges with LIVE online sports events
Bandwidth – cost increases proportionately to number of viewers
–
Viewing audience are often capped to keep down costs
Viewing audience are often “capped” to keep down costs
–
Content owners pass the cost of bandwidth to the user
–
Pay‐per‐view creates barrier to entry for the viewer & punishes loyal sports fan
–
Long‐duration content puts strain on traditional streaming infrastructure model
Long duration content puts strain on traditional streaming infrastructure model
–


NiFTy Partners

Official Online Broadcaster for:
•
arena football 2 (29 Teams, entire season, 250+ games)
–
Central Hockey League (two complete seasons, 1100+ games)
–
National Pro Fast Pitch
–
USA Judo
–
USA Weightlifting Championships
USA Weightlifting Championships
–
World Pro Handball 2007 U.S. Handball 4‐Wall Nationals
–
The International Baseball Federation (IBAF) 37th Baseball World Cup (Taiwan)
–
41 games in 2 weeks, 70 countries, 6 continents
g , ,
2007 German Bundesliga Baseball Finals (Germany)
–
2007 European Baseball Championship (Barcelona)
–
Total Fighting Alliance (TFA) events (Martial Arts)
–
Millennium Series – Disney French Open” Paintball Championship (Paris)
–
Non‐Sports
•
– 13th & 14th Annual California On Location Awards (COLA)
– The Miss Louisiana Pageant 2007 and 2008
– Barksdale Air Force Base 2007 and 2008 Air Shows

“Sports is our Beachhead”

What af2 fans are saying: af2 and CHL League Geography:

“the replays and getting to see
the teams that most of the time I
don't get to is great.. It's almost
like af2 sundayticket”

“So I'm watching the Lexington game on one
computer and the Austin game on another.
I have to say, this is pretty sweet. I'm very
impressed so far…”

quot;I have to say the af2 TV went off really good.
I watched almost all or parts of all the games.
It's really going to help me vote for the fan
poll.”

“It far exceeds what our expectations
were when we moved into the free
model.” Bob Hoffman, Director of
Communications, CHL as reported in
C i ti CHL t di
the Loveland, CO Reporter‐Herald

af2 Case study
• Before:
– $6.95 pay‐per‐game
– Limited online audience,
unhappy fans
• After:
– 35X more viewers for the season than with PPV
– Choice of Home or Away team audio feed
– Another stadium full of fans tune in to
watch af2 games online each week
– Viewership from all 50 States and the District of
Columbia and at least 39 foreign countries, located
5 ti t i l di N th A i S th
on 5 continents, including North America, South
America, Europe, Asia, and Australia. “I'd have to believe the AFL
would switch. Nifty is so much
Using NFT’s Free-For-View NiFTy TV product, better than the current
better than the current
this season af2 reached approximately THIRTY-
AFLNET. “ – Sykotyk
FIVE TIMES last year’s Pay-Per-View audience.

CHL Case study

• Before:
– 3‐years of Pay‐Per‐View (PPV)
– $7.95 pay‐per‐game
• After:
– 1st Pro League to stream full season LIVE & FREE
Pro League to stream full season LIVE & FREE
– More viewers in first 3 weeks than previous 3
seasons combined!
– 40X more viewers per game than with PPV
40X more viewers per game than with PPV
– Choice of Home or Away team audio feed
– Viewers from all 50 states and D.C., and 57
international countries across the globe
international countries across the globe

“Using [NFT's] product, CHL's online audience increased by 4,000% this season with
Free‐For‐View broadcasting, compared to last year's Pay‐Per‐View Offering.”
ibd i dl ' i Off i ”
‐ Bob Hoffman, Director of Communications, CHL

Putting the Increase in Perspective

CHL / af2 Audience Size
Before NiFTy
y After NiFTy
y

2007 2008

Online audience increased by a factor of
y
35 ‐ 40 (3,500% to 4,000% ) over previous
season’s pay per view. In other words for
both the CHL and af2 their 2007 pay‐per‐
view audiences were less than 3% of their
2008 free‐for‐view audience.


Real World Results


How they stack up!


NiftyTV Product Offering

• Product Services:
– Live broadcasts; single events entire seasons or series
Live broadcasts; single events, entire seasons or series.
– Pre‐‐recorded and archived content; “Coach’s Corner”,
player profiles, “Game of the Week”, encore broadcasts.
– Dedicated online networks w/ multiple channels (live &
pre‐recorded).
• Business Model
i dl
– Fee for Service –for set number of events and/or
continuous broadcast.
continuous broadcast.
– Ad Supported – Revenue share based on sponsorship sold
by client and/or NiFTyTV.
– Hybrid of both models.

Recent Product Enhancements

Significantly improved bit rate  resulting in Higher Quality Picture.
•
800 Kbits per second (640 by 480 resolution at 24 frames per second – TV quality) for those viewers
–
with Internet connections capable of uploading at least 1 Mbit per second.
with Internet connections capable of uploading at least 1 Mbit per second
350 Kbits per second (320 by 240 resolution at 24 frames per second – VCR quality) for all other
–
viewers.
VOD (Video On Demand) library of  past broadcasts.  VOD content is available both
•
from the video player and branded web pages.  VOD content can be paused, fast
forwarded, and rewound.  A “seek” feature is also supported.
Ad Scroll in Full Screen mode: a CNN‐style 'ticker' at the bottom of the screen
•
below the video image – now visible even when the player is in full screen mode.
below the video image – now visible even when the player is in full screen mode
Step by Step Illustrated Instructions and “three‐click installation” make download
•
and installation of your branded player a snap.
“Invite a Friend” feature enables viewers to invite their friends and family to join
Invite a Friend feature enables viewers to invite their friends and family to join
•
in on the fun and watch content through your branded player.
A web‐based Broadcast Reminders tool that lets viewers easily schedule and
•
manage alerts to be sent to their cell phones or email accounts prior to broadcast.


Opportunity

It’s the free television model that everyone already understands!
Potential for increased revenue via advertiser sponsorship
•
Reward loyal fans who now need “Never Miss Another Away Game!”
•
Dramatically expand the exposure of your sport through online
•
broadcasting of secondary, ‘fan‐centric’ content.
Reinforces the image of your product as a forward looking, fan oriented
Reinforces the image of your product as a forward looking, fan‐oriented
•
organization.


NiFTyTV in the News

fans get to kick their
feet up and watch for
free—like the old days
of broadcast
television. Red Herring

“The USA Weightlifting Championship
competition is one of the most important
weightlifting events of the year. Making
the event available for viewing free over
the Internet will generate more awareness
for the sport of weightlifting and attract
more young athletes ”
athletes.
Arnold Schwarzenegger, Governor of the State of
California and former Mr. Universe


We Bring Television To the Internet.

Questions?


Ni F Ty Tv Standards Mar2009 With Chart

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