The document proposes developing an online community for a TV magazine website to enhance engagement with readers and leverage opportunities of web 2.0. It discusses how social networking allows two-way communication between companies and users. Examples are given of magazines that have launched social capabilities and purchased social networks to generate traffic and subscriptions. Developing a branded social platform on the TV magazine site could improve content sharing and recommendations among readers.

1. TV Magazine Social Network High Level Concept

2. Introduction Soft Format is an online business consultancy and innovative community-based solutions provider; Our business experience is successfully supplemented with the visions provided by our Research & Development department; Our technological capabilities are supported by experienced pool of IT specialists and the advanced software platform for developing the community-based online solutions; We offer using social communications for enhancing the business model of the magazine community and enabling 24/7 communication with your readers. Soft Format sees its mission in helping our customers to harness the full potential of new opportunities, which are becoming available on the cutting edge of business and technological innovations. We are introducing our business offer, which will enable Your Company enhance your online presence and better leverage the business opportunities that Web 2.0 gives .

3. Our Services Assistance in development of your program-specific strategy of online community and integration of such a community into your online activities; Implementation of an online community infrastructure for your business utilizing solutions from our CommLine Solutions Suite (CommSquare) System integration to ensure the interoperability between your existing and future web solutions Custom development and/or aggregation of the online value-added services, web site designs, tools and products for your online activities; Maintenance and on-going support of your online community-based solution. Business Idea Platform Customizatio n What You Need is What You Get

4. Marketing Preconditions Global competition, globalization, rampant change and extremely fast flow of information and communication Internet and technologies are integral part of the everyday life of average user; Requirements for building and managing a successful business are altered by technological innovations; Consumer has adjusted to this quicker pace and his fickle preferences are revised with the speed of a television commercial. “ The magazine audience has a built-in community and have some affinities already from their audience,” says David Card, Jupiter Research senior analyst. “The readers tend to have a hobby or interest in something, and that tends to work out well on the Internet.” “ It’s not the big – that eats the small; it’s the fast that eats the slow”. Changes That Call For a New e-Business Model Information Networking Globalization Convergence Change Dynamics

5. Why do you need community? At the end of last year, Time named "You" its Person of the Year "for seizing the reins of the global media, for founding and framing the new digital democracy, for working for nothing and beating the pros at their own game.“ Earlier in the year, Newsweek described such sites as Flickr , MySpace , Craigslist , Digg , and YouTube as "putting the 'We' in the Web.“ M ore and more people are now sharing ideas through blogs, wikis, messaging and other online tools, is creating a critical mass of connectivity that is driving innovation. In their quest for new readers more magazines and newspapers are turning to social networking standbys. Blogs, RSS feed and more are popping up on magazine and newspaper websites, and some publishers are buying entire social networks in the hopes of boosting readership and revenue. User-generated content serves as a prime content for online media and also comes to the foreground of offline media via so-called social journalism. “ The intent is focused on personalization and community,” explains Holly Brown, MSLO’s acting president of Internet. “We’re focused on creating a continuum where users will save content, create lists of favorites, add notes, add [their] own content, see what others have to say and go deep into our archives.”

6. General Community Statistics Social Networking Gold Rush: November 2005 - News Corp. drew a lot of attention for paying $580 million to acquire Internet sensation MySpace . April 2006 There's the $800 million acquisition offer from Yahoo that Facebook reportedly rejected, the $2 billion Facebook wants and the $25 million in venture capital Facebook got from Greylock Partners in April October 9, 2006 - Google Inc. announced today that it has agreed to acquire YouTube for $1.65 billion in a stock-for-stock transaction. Buy a Network: MySpace : $15 billion latest Wall Street valuation, courtesy of RBC Capital YouTube : $1.5 billion latest valuation, courtesy of New York Post Facebook : $1 billion latest valuation, courtesy of Wall Street Journal Digg : $200 million valuation, courtesy of Business Week How consumers responded to the survey question: "If the following were available on a social-networking website, which would you likely do this holiday season?" Find out about store sales/product discounts: 51% Download coupons: 51% Search for gift ideas: 47% Buy products: 29% Post or view videos: 20% Read or write product review on blog: 18% None of the above: 12% **Does not total 100% due to multiple responses Source: American Marketing Association online Nov. 9-12 survey of 1,098 consumers. Margin of error is ±2.5 percentage points. 11/23/2006

7. Why community for business?

8. Why community for TV Magazine? For companies looking to better connect with consumers and build brand loyalty, social networks are increasingly looking like the ideal tool. Users get a place in which to share information, pictures and videos about themselves and their likes and dislikes -- and, companies hope, talk up a product. Companies, in turn, get real-time feedback on trends and products. And they can even bounce off ideas still in the works Social networking is "even more targeted than online advertising," says Rachel Honig, co-founder of New York marketing firm Digital Power & Light. Banner ads gave companies the chance to change ads quickly and direct them a bit better, "but banner ads are still one-way communication," she says. By contrast, social networking is more of a dialogue between the user and the company, she adds. Worldwide, social-network ad spending will reach $2.8 billion in 2010, up from $445 million in 2006, while ad spending on U.S. social-networking sites in 2007 is expected to reach $865 million, up from $350 million in 2006, and will reach $2.15 billion in 2010 according to eMarketer. 31% of visitors to official magazine sites claim that they are more likely to buy a product if it is advertised on 'this' website than those advertised elsewhere By having a networking platform embedded in a magazine’s Web site, it generates more traffic and more ad dollars. The more important result, however, is that a branded networking sites would generate more paid subscribers to the magazine SUCCESS IS ALREADY HERE… Hearst Magazines purchased social network eCRUSH.com for an undisclosed sum. The social site allows members to send email "crushes" to non-members. The non-members must register with eCRUSH to learn who their admirers are. Along with eCRUSH Hearst gets eSPIN, an online version of the spin-the-bottle game and HighSchoolStyleBoard, a photo-rating site. Time Magazine is also offering social capabilities to its online readers. Their website revamp now includes blogs, RSS feeds and aggregated stories. The new site offers sponsorship packagges packages and advertising available to podcasts and RSS feeds In 2007, Meredith Corp. will launch a portal, parents.com for all the parenting content from the four brands. Users will be able to upload personal information about their family and background and receive customized content so parents can one-stop for information “ In the beginning, community was all about text. Then it became more about pictures, and now it’s becoming more about multimedia. So our strategy has evolved from text and pictures to a sexier multimedia version,” says Lauren Wiener, vp, Meredith Interactive. Hobbyists, whether it’s scrapbooking or fantasy football, are also a prime target. Martha Stewart Living Omnimedia wants to enable its craft-minded consumers to share projects with each other. The company will unveil a redesign of the entire Martha Stewart site, marthastewart.com in first quarter 2007 that will include a destination where users can organize scrapbooks and access content from Stewart’s television shows, magazines and radio programs.

9. TV Magazine site: As is With much being already done by the magazines to meet the trends and challenges of modern business world and with a challenge of combining internet and TV, we see a tremendous potential in extension of the existing TV sites to new levels of functionality and usability. Community basis transforms into full scale social platform External resources utilization – active participation of your members to leverage the potential of the user-generated content Content and services availability for the portal users – social screening and recommendations Basic groups – An integral part of the community with its space and multiple options to ensure efficient communication Media – Advanced social media library with sharing options Mailbox - Advanced communication tools for all users Much more… Go to next slide to see how it can be implemented…

10. TV Magazine Site: To be

11. User Personal Space Customizable Member’s Back Office; Modifiable personal site structure; Ability to select and customize the design from the set of predefined templates or develop your own; Ability to add personal content (information, photos, video, audio); Delimited access to personal content; Ability to manage personal network structure and personal contacts; Ability to initiate/join groups by interest and participate in groups activities Personal calendar for managing personal and portal events with option to share events with other members Ability to create a personal knowledge and media library (both external resources e.g. links, embedded content, etc and internal e.g. files uploaded to the library) Possibility to share library content with other members Ability to directly contribute to the social knowledge base or add resources from personal library Advanced means (personal blog, message board, internal mail, IM, Skype. etc) for communication with all users on all levels of the system Classifieds (personalized and public) Recommendations and ratings Etc.

12. TV Magazine networking Personalized and customizable listings Personalized recommendations and notifiers Real time and regular joint discussions by topics and groups Participation in TV magazine community group communications TV magazine public blog group forum/blog message board group advertising group classifieds group ratings and recommendations, etc Use and contribute to Social Knowledge Base by categories or groups Indirect means of communication and social services rating of content / topics / services / etc contest / polls participation social search mechanism social quality control, etc Direct communication with portal members Classifieds, events and news management

13. Social-knowledge base Creating the social knowledge base on the basis of the internal resources of each member Adding knowledge elements from the personal library pool Adding knowledge elements from the group library pool Importing knowledge elements from external resources Voting and ranking of the knowledge elements Verification and confirmation of knowledge elements Editing and adjustment of the confirmed knowledge elements, if needed Delimitation of the knowledge base access, if needed Integration of the Knowledge Base into other services

14. Personal networking Establish new connections; Get advice; Get recommendations; Evaluate content, people; provide feedback; Find a content to watch Find a public/private event to go to; Find an event partner to organize an event with; Find a product/service; Organize, announce and promote personal events; Find a hobby/sport partner; Find services/products recommended by your trusted connections. Establish communication channels with the members utilizing the advanced communication means (personal blog, message board, internal mail, IM, Skype (including video). etc) Add other members to your contacts list Share library resource Create personal groups and invite other members Create and manage group/personal media gallery (photos, videos, audio, etc) Create and publish group/personal newsletter, podcasts, videocasts, etc Create and manage group/personal classifieds; Create a group/personal site within the TV magazine portal;

15. Portal Information Movie/Show listings Social Q&A and expert answers TV magazine public blog Social picks (with voting and ranking) Articles discussions and commenting Tags for easy navigation and management Resources Rich media content Social Knowledge Base (e.g. A family movie with Nicholas Cage starring; with feedback, ratings and comments) Knowledge Managers (experts) Resources ratings Integration of external resources, feeds, widgets, etc Members only exclusive content TV magazine promotional content Partners promotional content (clips, coupons, wallpapers, etc) Featured (advertising) vs Social (members info, rating, etc) resources External resources by 3rd parties – featured and socially contributed by members E-commerce Advanced online catalogue with immediate payment option Social ratings and recommendations Tickets sales and reservation TV Magazine Portal

16. News and Events Events media diary: day by day (official photos, amateur photos, video materials, etc) + RSS Contests + branding and sponsorship TV magazine calendar personalized and synchronized with user’s one Subscription for new/regular events with notification option + RSS Featured and social description of the events (e.g. how to get, what to take, etc) + media rich content Events archive with discussions, feedbacks, blogs, etc Bundling events with more options, e.g. tickets reservation/purchase, detailed info from external or internal resources, Promotion of private, corporate events in the members only/public area Community Community area – finds similar people, plan events/visits, etc, socialize, Recommending and rating Contests/Polls/Lotteries, etc with prizes + possible branding and sponsorship Access to personal information of the members (profiles, blogs, galleries, etc) Access to membership-only content, etc Advanced communication means (personal blogs, IM, Skype, internal email, etc) Glory board – voting, rating, discussions, etc Social media library TV Magazine Portal (cont.)

17. Contacts Soft Format LLC pr. Hrushevskoho, 30 Lutsk, 43005, Ukraine Phone: 380.332.770091 Fax: 380.332.776367 Email: o.kutsevych@soft-format.com www.soft-format.com