Mid Range Plan Presentation Fiscal Year 2008 October 2007 [DRAFT ]

2 2 Internet Video Industry Trends Tier B video sites (Vsocial, Vidilife, Revver, etc.) show audience drop as YouTube solidifies dominance –UGV sites continue to proliferate causing more fragmentation –Most video destination web sites struggling Focus on legally shared content and G and PG (non- adult) content has disadvantaged Crackle vs. the competition –Daily Motion, Veoh and Metacafe continue to push porn and illegal content to spur audience growth –Veoh and Metacafe also prominently feature video downloads.

3 3 Crackle Strategy Overview Content / Channels Content / Channels Platform / Product Platform / Product Partners / Distribution Partners / Distribution Monetization Differentiate service Build audience Generate revenue Goals Summary level strategy for these key issues

4 4 Evolution of Crackle Channels FY07 FY09 FY08 FY10 Channels Fame Partners The Line-Up Improv SPA SPT Identify Specific Channels / Concepts Discuss evolution of content on Crackle (e.g. premium content?) Identify Specific Partners

5 Robust fully-automated transcoding platform for generation of multiple encoded formats World class data center in a Tier 1 facility (Level 3) on Tier 1 transit (Level 3) Robust and scalable 10 Gigabit network infrastructure 20Gb total Internet bandwidth with further scalability Robust multi-failure capable storage platform A key Crackle differentiator is its infrastructure - a powerful system for encoding and syndicating content to numerous platforms – from the smallest mobile devices to the largest HD televisions available. Key components of this infrastructure include: The Crackle Distribution Engine

6 Crackle’s strategy is to build a massive distribution network via IPTV, PC’s & devices, RSS aggregators, leading social networks and viral web features... Distribution Strategy

7 GoalLeverage audiences and social networking tools to build passionate viral communities around Crackle video Achieve massive distribution of Crackle content onto users’ social networking and blogging pages Promote Crackle video and allow users to easily access and take it with them Deliver Crackle video to user’s televisions and build a loyal following of watchers that “sit back” Current Partners AOL Hi5 Piczo Friendster Everyone’s Connected Bebo* MySpace Facebook Friendster Yahoo! 360 Digg Piczo Wordpress Delicious PSP VAIO PS3* Helio* The Platform* Verizon* AT&T* Sprint* BIVL TIVO Apple TV* Tomorrow Rich video home pages for Crackle premium channels Innovative co- marketing promotions Viral applications Original productions developed specifically for online communities More 1-click partners with large user bases Promotions to get the word out about the 1-click functionality Integration into mobile phone firmware Crackle WAP site “Send to mobile” feature on Crackle’s video player Syndication to TV networks VOD New IPTV platforms 7 Expansion of Crackle’s Distribution Network Social Networks & Portals Living Room Mobile Carriers & Devices User Driven 1 Click Publishing * Pending

8 8 Crackle Revenue Plan Overall trends in sales of advertising against UGV content –Crackle is being well received by leading advertisers because of controlled content –Advertisers nervous about advertising on traditional UGV sites due to uncertainty of video Ad units –Video Interstitials- :15 second video ads that play with companion unit –Display- IAB size units that support rich media on Crackle.com (160 x 600 and 300 x 250) –Ad Player (300 x 250) – ability to serve playlists across syndicated network to targeted sites. Sponsorship concepts –Channel Sponsorships- deep brand integration into existing Crackle channels –Custom Contests and Channels – Companies can run contests to promote a product and find new talent to promote their brands. For example, become the next spokesman or produce the next ad. –Custom Playlists - Brands wanting instant exposure of their video content can be placed into the Crackle syndication network and run across the web on targeted sites. –Custom Opportunities – Out of the box ideas to serve particular brand needs Syndication Network –Monetizing video across the Crackle syndication network via video interstitials. –Established relationships with 3 rd party rep firms to sell video ads across network –September revenue forecast of $200K across network from 3 rd party rep firms Traction to-date with advertisers since launch of Crackle –Pepsi ($100K closed) – sponsoring Minisodes channel on Crackle network –Honda Fit – ($127K closed) sponsoring Short Film channel on Crackle network –Sony HDNA – ($325K closed) custom channel promoting HDNA and HD content sponsor across Crackle network –Ford – ($200K pending) sponsorship of Scrambler channel on Crackle network