1. GLGi: Cable TV and Broadband Video
Will Richmond

2. Council Member Biography
Will Richmond is President and Founder of Broadband Directions LLC, a leading market intelligence and consulting firm which specializes in broadband-delivered video. Many of the world’s largest media and technology companies subscribe to Broadband Video Focus, the firm’s market intelligence service. Mr. Richmond has worked in the broadband, cable TV, content, network infrastructure and software industries for over 15 years. During the mid-1990s he was the VP of Business Development at Continental Cablevision, then the 3rd largest cable TV operator in the U.S., where he was a co-founder of Continental’s pioneering high-speed Internet service. Since 2003, Mr. Richmond has worked with many early-stage and established companies in the broadband video industry. He is an acknowledged thought-leader in this area and is frequently called on by industry executives, investors, journalists and others to provide his insights. Mr. Richmond is a graduate of Cornell University and Harvard Business School.

3. Topics
How is broadband video changing the traditional video distribution value chain?
What are the key players in various media segments currently doing with broadband video?
What are the major trends and technologies impacting the market?
Which business models are working and what are their challenges and opportunities?

4. About GLG Institute
GLG Institute (GLGiSM) is a professional organization focused on educating business and investment professionals through in-person meetings. It is designed to revolutionize the professional education market by putting the power of programming into the hands of the GLG community.
GLGi hosts hundreds of Seminars worldwide each year.
GLGi clients receive two seats to all Seminars in all Practice Areas.
GLGi’s website enables clients to:
Propose Seminar topics, agenda items and locations
View and RSVP to scheduled and proposed Seminars
Receive a daily briefing with new posts on your favorite tickers, subject areas and from trusted Council Members
Share Seminar details with colleagues or friends

5. Gerson Lehrman Group Contacts
John Arohnson
Vice President, TMT
Gerson Lehrman Group
850 Third Avenue, 9th Floor
New York, NY 10022
Aaron Liberman
Managing Director, Sales and Marketing
Carly Pisarri
Process Manager

6. IMPORTANT GLG INSTITUTE DISCLAIMER – By making contact with this/these Council Members and participating in this event, you specifically acknowledge, understand and agree that you must not seek out material non-public or confidential information from Council Members. You understand and agree that the information and material provided by Council Members is provided for your own insight and educational purposes and may not be redistributed or displayed in any form without the prior written consent of Gerson Lehrman Group. You agree to keep the material provided by Council Members for this event and the business information of Gerson Lehrman Group, including information about Council Members, confidential until such information becomes known to the public generally and except to the extent that disclosure may be required by law, regulation or legal process. You must respect any agreements they may have and understand the Council Members may be constrained by obligations or agreements in their ability to consult on certain topics and answer certain questions. Please note that Council Members do not provide investment advice, nor do they provide professional opinions. Council Members who are lawyers do not provide legal advice and no attorney-client relationship is established from their participation in this project.
You acknowledge and agree that Gerson Lehrman Group does not screen and is not responsible for the content of materials produced by Council Members. You understand and agree that you will not hold Council Members or Gerson Lehrman Group liable for the accuracy or completeness of the information provided to you by the Council Members. You acknowledge and agree that Gerson Lehrman Group shall have no liability whatsoever arising from your attendance at the event or the actions or omissions of Council Members including, but not limited to claims by third parties relating to the actions or omissions of Council Members, and you agree to release Gerson Lehrman Group from any and all claims for lost profits and liabilities that result from your participation in this event or the information provided by Council Members, regardless of whether or not such liability arises is based in tort, contract, strict liability or otherwise. You acknowledge and agree that Gerson Lehrman Group shall not be liable for any incidental, consequential, punitive or special damages, or any other indirect damages, even if advised of the possibility of such damages arising from your attendance at the event or use of the information provided at this event.

7. Profiting from Broadband Video’s Disruptive Impact
GLG Presentation
New York, N.Y.
October 24, 2007
Will Richmond
President
Broadband Directions LLC
© Copyright Broadband Directions LLC. All rights reserved.
© Copyright Broadband Directions LLC. All rights reserved.

8. Legal Disclaimer
All information contained in this document is proprietary to and copyrighted by Broadband Directions LLC, except as described below. You may not alter or remove any trademark, copyright or other notice from any copy of this document.
Broadband Directions and the Broadband Directions logo are trademarks of Broadband Directions LLC. All other trademarks used in the document, including the logos of cable networks reproduced herein, are the property of their respective owners. All web site images and content of companies excerpted in this document are the copyrighted material of their respective owners.
Neither Broadband Directions LLC nor any other party is responsible for any deficiencies in the accuracy, completeness or timeliness of any information contained in this document, or for any decision made using such information. In particular, information contained in this document was gathered over a specified period of time, and it is possible that such information has changed since it was collected and is out of date as of the publication of this document. The opinions contained in this document reflect the judgment of the author at the time of publication and are subject to change.
This document is designed to provide general information on the subject matter covered. It is not intended to provide personalized advice or guidance. You are responsible for properly analyzing and verifying any information you intend to rely on.
© Copyright Broadband Directions LLC. All rights reserved.

9. Definitions Broadband-delivered video is:
Delivered through broadband IP connections (cable modem, DSL)
Served remotely from anywhere on the Internet to a user’s computer
Sometimes downloadable to portable devices (e.g. iPod, Zune)
Also called “Internet TV”, “online video”, “broadband TV”
Broadband-delivered video is not:
“IPTV”, which uses set-top boxes and a “walled-garden” approach
“Mobile TV” or “Wireless Video” (e.g. VCast, MobiTV, others)
VOD served by a cable/satellite/telco set-top box
TiVo or DVR video
© Copyright Broadband Directions LLC. All rights reserved.

10. Key Questions To Address
What changes are happening in the video distribution value chain?
What are media companies doing with broadband video?
What’s ahead?
© Copyright Broadband Directions LLC. All rights reserved.

11. Traditional Video Distribution Value Chain
Producers
and
Rights Holders
Cable TV
Networks
Retail
Distributors (cable TV or satellite)
Broadcast TV
Networks & Stations $
$/other
Consumers
Advertisers $
Source: Broadband Directions LLC
© Copyright Broadband Directions LLC. All rights reserved.

12. WHY? “Broadband-delivered video is the
single most disruptive influence
on the traditional video distribution value chain.”
WHY?
© Copyright Broadband Directions LLC. All rights reserved.

13. Broadband is an Open Video Delivery Platform
Television
Video Servers
(e.g. Yahoo, CNET, MLB) ? ?
Internet
Broadband
Network
Cable modem
or DSL
Computer
Portable Video Player
(e.g iPod, Zune)
Video Servers
(e.g. YouTube, NYTimes, Budweiser)
Source: Broadband Directions LLC
© Copyright Broadband Directions LLC. All rights reserved.

14. 3 Disruptions of Broadband Video
1. Established video providers can go “direct-to-consumer”
“Cable bypass” – 1st time to get video directly to audience
New economics based on retail, not wholesale model
2. New broadband video distributors can establish value
Define new services that are aligned with consumer behaviors
Change “basis of competition” among market participants
3. New video-focused market entrants can emerge
Numerous types of companies enter video market
New broadband/online-centric economics
© Copyright Broadband Directions LLC. All rights reserved.

15. Broadband video’s disruption is
REAL
not theoretical
© Copyright Broadband Directions LLC. All rights reserved.

16. 1. Broadband Enables Direct-to-Consumer Models
Cable TV
Networks
Retail
Distributors (cable TV or satellite)
Producers
and
Rights Holders
Broadcast TV
Networks & Stations
Consumers
Advertisers $
Broadband
access only
Source: Broadband Directions LLC
© Copyright Broadband Directions LLC. All rights reserved.

17. Examples of Direct-to-Consumer Models
NBC/News Corp Hulu
Discovery Beyond
E “The Vine”
Lifetime Video Lounge
CBS Innertube
HGTV KitchenDesign
TNT Dramavision
Starz Vongo
CourtTV Extra
© Copyright Broadband Directions LLC. All rights reserved.

18. 2. Broadband Enables New Video Distributors$
Broadband
Video Distributors
Retail
Distributors (cable TV or satellite)
Producers
and
Rights Holders
Cable TV
Networks
Broadcast TV
Networks & Stations $
Consumers
Advertisers
Broadband
access only
Source: Broadband Directions LLC
© Copyright Broadband Directions LLC. All rights reserved.

19. Examples of New Video Distributors
Portals/Search
AOL
Yahoo
MSN
Google
Apple iTunes
UGC/Video sharing
YouTube
MySpace
Revver
Metacafe
Veoh
Aggregators/Syndicators
Joost
Comcast
Amazon
Wal-Mart
Brightcove
© Copyright Broadband Directions LLC. All rights reserved.

20. 3. Broadband Enables New Video Providers
Video Distributors
Retail
Distributors (cable TV or satellite)
Producers
and
Rights Holders
Cable TV
Networks
Broadcast TV
Networks & Stations
Broadband
access only $
Consumers
Advertisers
New Video Providers
(startups, incumbent non-video media or marketers)
Source: Broadband Directions LLC
© Copyright Broadband Directions LLC. All rights reserved.

21. Examples of New Video Providers
Niche providers
JibJab
Next New Networks
Cycling.tv
The Nine
Barrio305
WGSN
Print publishers
WSJ
NY Times
Businessweek
Better.tv
Brand marketers
Dove
Smirnoff
MGM
Neiman Marcus
Frito-Lay
Online publishers
About.com
iVillage
CNET
NASCAR
© Copyright Broadband Directions LLC. All rights reserved.

22. Current Video Distribution Value Chain$
$/other
Subscribers
Advertisers
Producers
and
Rights Holders
Cable TV
Networks
Retail
Distributors (cable TV or satellite)
Broadcast TV
Networks & Stations
© Copyright Broadband Directions LLC. All rights reserved.

23. Future Video Distribution Value Chain?
Source: Broadband Directions LLC
All Video Providers
Advertisers $
Broadband
Video Distributors
Consumers
© Copyright Broadband Directions LLC. All rights reserved.

24. What changes are happening in the video distribution value chain?
What are media companies doing with broadband video?
What’s ahead?
© Copyright Broadband Directions LLC. All rights reserved.

25. Top 75 Cable TV Networks and Broadband Video
© Copyright Broadband Directions LLC. All rights reserved.

26. Top 75 Cable TV Networks Embrace Broadband Video
© Copyright Broadband Directions LLC. All rights reserved.

27. Advertising Model Dominates for Top 75
© Copyright Broadband Directions LLC. All rights reserved.

28. Broadband Becoming More TV-Like
© Copyright Broadband Directions LLC. All rights reserved.

29. Top 40 U.S. Newspapers and Broadband Video
© Copyright Broadband Directions LLC. All rights reserved.

30. Top 40 Newspapers Embrace Broadband Video
Source: Broadband Directions LLC
© Copyright Broadband Directions LLC. All rights reserved.

31. Sources of Newspapers’ Video
Source: Broadband Directions LLC
© Copyright Broadband Directions LLC. All rights reserved.

32. But Ads Not Yet Widely Implemented
Source: Broadband Directions LLC
© Copyright Broadband Directions LLC. All rights reserved.

33. Top 40 U.S. Magazines and Broadband Video
© Copyright Broadband Directions LLC. All rights reserved.

34. Top 40 U.S. Magazines
© Copyright Broadband Directions LLC. All rights reserved.

35. Top 40 U.S. Magazines
© Copyright Broadband Directions LLC. All rights reserved.

36. Top Broadcasters and Broadband Video
© Copyright Broadband Directions LLC. All rights reserved.

37. Broadband Video and the Broadcast TV Industry
1. Broadcast networks fully embrace broadband
Full streaming of episodes
Paid download models remain
Hybrids emerging (e.g. NBC Direct)
Syndication (Hulu, CBS IAN, ABC/AOL)
2. Local affiliates move video online
Streaming news clips and shows mainly
Viewers get on demand, online access
3. New aggregators and syndicators break down geographic boundaries
Companies emerging to syndicate local video
Voxant, Clip Syndicate (Syndicaster), TitanCast, etc.
Ad-based models
© Copyright Broadband Directions LLC. All rights reserved.

38. Local Stations Offering Broadband Video
Source: Broadband Directions LLC
© Copyright Broadband Directions LLC. All rights reserved.

39. Ad Support is Prevalent
Source: Broadband Directions LLC
© Copyright Broadband Directions LLC. All rights reserved.

40. What changes are happening in the video distribution value chain?
What are media companies doing with broadband video?
What’s ahead?
© Copyright Broadband Directions LLC. All rights reserved.

41. Other Key Broadband Trends To Watch
“Convergence” devices rolling out
Bridge PC/broadband and TV worlds
AppleTV, Microsoft Media Extenders, Xbox, Sansa TakeTV, etc.
Improved ad targeting
Technologies to do video, audio, meta-data recognition
“AdWords” style business models
Independently-produced video
Proliferation of independently-produced video, mainly ad-supported
Continued audience fragmentation
Advertisers/Marketers embrace broadband
Lots of new “direct” campaigns using video
Reduce costs, increased tracking
Peer-to-Peer (P2P)
Potentially alleviates bandwidth congestion
Lots of funding (Joost, Veoh, BitTorrent, etc.)
© Copyright Broadband Directions LLC. All rights reserved.

42. Conclusions
Broadband most significant disruptive influence on video distribution value chain
All players are re-thinking their business approaches
Market is very dynamic – agility is key to success
Broadcasters need to move forward aggressively
© Copyright Broadband Directions LLC. All rights reserved.

43. For ongoing commentary, visit: Broadband video news and analysis….
Broadband video news and analysis….
© Copyright Broadband Directions LLC. All rights reserved.

44. Thank You Will Richmond President Broadband Directions LLC
© Copyright Broadband Directions LLC. All rights reserved.
© Copyright Broadband Directions LLC. All rights reserved.