2007 Level 3 Communications, Inc. All Rights Reserved. 1 2007 Level 3 Communications, Inc. All Rights Reserved. 1

At The Races – Internet World 2008

Kevin Quinn VP Strategy & Business DevelopmentLevel 3 Communications

Matthew Taylor Head of Online At The Races

2007 Level 3 Communications, Inc. All Rights Reserved. 2 2007 Level 3 Communications, Inc. All Rights Reserved. 2

Who we are?

Level 3 owns and operates one of the largest IP networks globally Directly connected to the Content and the Eyeballs

Enterprise, Content, Wholesale and Government customers rely on Level 3 to deliver services with a combination of scalability and value over an end-to-end fiber network

As one of the world’s most connected ISPs, Level 3 has a global throughput of over 11.75 Petabytes of traffic per day

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Delivering Rich Media

Level 3 provides complex Media Delivery Services to many of the UK’s leading sports & media brands including:

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Supporting Delivery: from Creation to Consumption

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Media Delivery Services

Our innovative Media Delivery Services include

Live & On-demand Streaming, Download & Caching

Digital Rights Management, Content Protection & Geo-targeting

Payments Solutions

Content/Customer Relationship Management Systems

Broadcaster EPG integration

Reporting

Flash Crowd Management

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ATR Broadband Video Services Archive & Live subscription service for At The Races channel Innovation –

• First Bet ‘n Watch service integrated with UK Bookies

• Multiple video channels as part of broadband service

• First fully automated race archive/library

Matthew Taylor, Head of Online 1st May 2008

• Media owners must have a genuine online presence.

• Source of immediate revenue via premium content.

• Video is a powerful means of driving overall traffic via free content.

• Enables rights holders to break-up content for multiple use.

Why bother? Benefits of webcasting

“The web is now a serious commercial tool through which media companies can unlock revenues outside of television.”

• At The Races is a joint venture partnership between BSkyB and various racecourses and racecourse groups including Arena Leisure and Ascot Racecourse.

• The Company holds exclusive media rights to 30 UK tracks and all 27 Irish courses.

• At The Races broadcasts over 1,100 UK and Irish meetings a year.

• Also covers the best races from around the world including USA, France, Japan, Hong Kong, Australia and Dubai.

At The Races

At The Races

• Live Video Subscription.

• Free archive video.

• Bespoke video.

• Bet and Watch Services.

Current Video Services

• At The Races became the first UK sports channel to deliver a complete online simulcast of its content in June 2004.

• Latency issues were first to be addressed.

• Video console now also includes live odds and betting opportunities, plus other channel options.

• Flash traffic is rarely a problem in terms of live video as we can forecast when peak demand will be.

Subscription Service

Free Content

• Video form archive consists of over 20,000 race clips.

• Development of a fast archive saw numbers double in space of two months.

• Led to a steady introduction of more free content including non-premium video.

“Providing it is of sufficient quality, free content will naturally drive traffic which can be monetised through traditional means of advertising and sponsorship.”

At The Races – Video 1

At The Races – Video 2

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Bespoke Content

• Resource available to At The Races makes it possible to produce customised video content for the web.

• Now produce dedicated preview programmes around major meetings which enables sponsors to associate themselves with an event.

• Future developments will enable us to look at white-labelling and web-only live broadcasts.

• In 2005 ATR launched ‘Bet and Watch’ – a B2B service which enables bookmaker partners to add live video to their site.

• Typical model is that user places a qualifying bet and is able to watch a stream of the race.

• Valuable aid to customer retention.

• Does not cannibalize existing revenue streams.

• Current partners are Ladbrokes, Bet365, BoyleSports, Paddy Power, VC Bet, Stan James, Sky Bet, William Hill and Betfair.

Syndicated Content

• Traffic to attheraces.com generally follows a seasonal cycle around specific major racing events during the year.

• Surges are handled via creation of dedicated microsites with clear and simple linking to the key content users want to access.

• Occasionally there will be high demand for content that falls outside of the major events. Creation of our fast archive enabled us to handle this by consistently getting the video online speedily.

• In-built flexibility in the site and the use of on-site encoding software enables us to get other content online very quickly.

Handling Flash Traffic

attheraces.com

attheraces.com

Into the future

• Technological enhancements; quality of the stream, reductions in the delay, enhancements to the Free and Archive Video services.

• Closer interaction with betting; reduction in time delay to ‘as live’ will increase opportunities to incorporate in-running betting; live pictures can sit alongside prices for events and web content be dictated by the broadcast.

• Commercial opportunities; pre and post-roll adverts, placing relevant ads alongside content..

• Utilising new platforms; At The Races is amongst the top 10 channels streamed on ‘Sky by Mobile’ across all UK operators. Mobile sportscasting now faces similar challenges to broadband in 2001.

“Technology is the support and the means of delivery but not the product itself. Strong content remains the key.”

• Identify any premium content, but don't disregard the rest.

• Provide a consistent flow of content rather than sporadic updates.

• Automate as much as you can - ability to encode and publish in-house is also a plus.

• The faster you can get video online, the more views that content will get.

• Favour short clips over programme-length features.

• Host video in one central location on your site.

• Aim to stay a fraction behind the technology curve.

• Avoid talking heads - apply the same standards to Web production as to TV.

• Don't miss out on any commercial opportunities around the video.

• Look to syndicate or white label as much as possible.

10 Golden Rules

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At The Races – Internet World 2008

Kevin Quinn VP Strategy & Business DevelopmentLevel 3 Communications

Matthew Taylor Head of Online At The Races