1. 1 Digital Networks Strategy Build multiple channels under the Crackle “networks” brand Aligns resources (technical, marketing, programming) behind a single, leading brand Necessary to create scale in light of market consolidation (e.g., NBCU / Fox JV; multiple brands integrating with Spike.com) Provides “option value”…creating scale and efficiency while preserving upside potential –Sub brands (e.g., Funny Bone) incubated under Crackle networks –Hit channels can be spun-out as their own networks brands Original short-form content will be developed exclusively for our channels/networks brand –Creates opportunity for differentiation and builds brand value Premium content distributed on networks, along with 3 rd party sites –Broad distribution maximizes profits until we reach scale –Model proven out by major studio competitors

2. 2 Competitive Landscape Studios are now supporting only those owned digital channels that have potential to reach scale Supported Digital Channels Both ABC.com and ESPN.com are strong channels with scale Sub brand ‘dotcomedy’ failed miserably Launching JV with Fox Sub brand ‘Inner tube’ failed miserably Switching to CBS.com Strong focus on MySpace (master brand) Launching JV with NBCU Last holdout for “multi brands”; consolidating multiple web native brands (e.g., iFilm) under Spike.com Comments hulu Parent Failed / Consolidated Digital Channels

3. 3 Crackle Network Structure UGV Your favorite feature length, contemporary classic films across all major genres Episodes from the heyday of sit- coms Outrageous shorts and busted pilots Originals by contemporary comedians Classic hard- hitting action TV series and original takes on today’s favorite action movies and stars Favorite retro TV shows told in in 4- 6 minute “minisodes” Extensive library of much-loved shows Appeals to today’s “bite sized” video consumption SPE’s 3,500+ feature library Popular TV format (Tuner, USA, etc) embraced by audiences but not yet digital Demand for short- form, original comedy exploding online SPT’s “middle tail” comedy is hard to find Deep action- themed library Key young male demo also early adopter of digital technology

4. 4 Short Form Strategy New short-form content will be developed exclusively for our Crackle network of channels Original content be the kept exclusive to our channels –Competitors are using proprietary content to build their own brands –Proving possible to attracting high quality talent / content for a new launch window (e.g., Ed Zwick launching “Quarterlife” on MySpace) –As a relatively unknown site, Funny of Die drove 30MM streams of “The Landlady” by keeping it exclusive All content must be funneled into the master brand in order to reach scale –Veoh raised another $25MM with a goal of creating high quality content –Our [$20MM] budget can be competitive, but only it works collectively towards a common goal

5. 5 Original Content Distribution All content goes through a channel; all channels live under the master brand, which will be distributed directly and through virtual MSOs ContentChannelsNetworkDirect Virtual MSOs

6. 6 Premium Content Premium content will continue to be distributed through owned digital networks and 3 rd party sites 3 rd Party Streaming In discussions for expanded ad-supported distribution using ABC branded player Hulu will extend ad- supported distribution Discontinuing iTunes in Dec (betting on hulu) Wide developing broad distribution for TV shows using 3 rd party players Hulu will extend ad- supported distribution Leveraging wide distribution of owned (Viacom) and non-owned sites 3 rd Party Downloads CommentsAsset Owned Sites [Coming Soon] hulu Benefit from scale of market leaders (e.g., iTunes) until Crackle reaches scale