Ad Sales Strategy for Digital NetworksAd Sales Strategy for Digital Networks

OpportunitiesOpportunities ChallengesChallenges ObjectivesObjectives

• Capture new advertising dollars as they flow into the digital space

• Attract advertisers seeking quality content and a more controlled environment

• Use portfolio of distinct platforms to deliver greater value (hyper-targeting and enhanced messaging)

• Lack of consistency between distribution partners (technologies, ad servers, etc.)

• No breakout form of advertising creative

• Lack of scale and quality content is slowing the adoption of advertising against online video

• Establish a single ad-serving platform to improve operational performance

• Create consistent types of ad units and measurements to standardize sales and reporting

• Integrate networks and leverage content to deliver desired audience and experience to advertisers

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Crackle Revenue PlanCrackle Revenue Plan

Key Key Learnings Learnings

and and ResponseResponse

Early Early Success w/ Success w/

Crackle Crackle ModelModel

Key Key Strategy Strategy for MRPfor MRP

• Market did not develop as quickly as expected; advertisers looking for differentiated, controlled experiences

• Modified model to focus on higher quality, prosumer content

• Executed necessary operational deals (24/7 for ad serving)

• Integrated with 4 international rep partners covering a large percentage of monetizable inventory

• Secured 5 Blue-chip advertisers: Pepsi, Honda, Sony, Ford & Epson

• Additional $2MM in pipeline

• Emphasize Crackle’s higher quality content and controlled environment to attract top advertisers

• Focus on sponsorships will continuing to modify ad units and targeting tools to meet advertiser needs

• Drive additional revenue through international rep firms and using 24/7 to compete with video ad networks

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Overview of Ad Sales EnvironmentOverview of Ad Sales Environment

• Traditional TV marketplace continues to evolve

– Upfronts bounce back after two years of declines; exhibiting signs of a strong scatter marketplace

– Television Ratings currency change (C3 Ratings); reformatted commercial placement in order to maximize performance and ad dollars

– Total rating points in marketplace down due to continued fragmentation and new currency; challenging for programming but makes television more valuable for ad sales

• Other challenges to our business persist

– Satellite space (???)

– :10 representation (need to go program by program – like :30s)

• SPTAS continues to look for opportunities to add to our television portfolio

– Strength of cabling programming positions us in high-growth area

– HD advertising marketplace still growing

– Leverage our leadership in digital (e.g., bundling)

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SPT’s Ad Sales Businesses Will Continue to GrowSPT’s Ad Sales Businesses Will Continue to Grow

SyndicationSyndication

The :10 The :10 SolutionSolution

33rdrd Party Party Represent-Represent-

ationation

DigitalDigital

Hold back inventory and maximize dollars with higher scatter pricing Bring on new advertisers, leveraging digital assets and new opp. Developing custom metrics with Nielsen to acquire new ad partners

Expand client list with traditional :30 buyers New program representation opportunities (Crosswords) Create Upfront marketplace for :10 business

Continue to build Hi-Def ad sales with MOJO, seek new HD nets Focusing on Cable: Tennis Channel/Trio, Gospel Music Channel MRP includes $10MM in 07/08 sales and $20MM in annual sales

thereafter

Create digital sales verticals: MUSIC, ENTERTAINMENT and GAMES Position MINISODES as digital network across all platforms Establish SPTAS as SPE’s digital ad sales group – currently

representing SonyBMG, talking with Playstation

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