1. Are Premium iPad Experiences a Temporary Anomaly?

2. Research Done in Partnership with Hearst’s LMK LMK connects people to their passions

3. The LMK Super App Owned by The Hearst Corporation - Trusted name in News & Journalism News, pics, stats culled from Hearst and 1,500+ Sources Filtered, curated and edited by experts Updated every few minutes Each LMK mobile passion contains a customized News, Photo and Data River targeted for each passion

4. Fall 2010 launch with substantial marketing campaign and Charter Advertiser integration opportunities – Paid Mobile & Digital Advertising – Social & Guerrilla Media – Hearst-Owned Media (Local TV, Newspaper, Magazines and their websites) 150m US Smart Phone Consumers News-Hungry Users Passionate users = multiple and extended daily engagement 1st-To-Know & share creates ”Social Heroes” with other ‘Passionates’ LMK Audience

5. Marketing & Partnership Opportunities Subsidize downloads Sponsorship Customer data mining and capture Couponing Combining with Hearst 360 programs FREE! from

6. Research Overview Quantitative Research METHODOLOGYOnline Survey – Summer 2010 AUDIENCE iPhone Users (n=204) Droid/Other Smartphone Users (n=601) iPad Users (n=116) SCREENING CRITERIA Must own and use either an iPhone, an app-supported Smartphone or an iPad

7. ''It's like a dopamine squirt to be connected,'' said Dr. Ratey, [Harvard Associate Professor] who compares the sensations created by constantly being wired to those of narcotics – a hit of pleasure, stimulation and escape. ''It takes the same pathway as our drugs of abuse and pleasure. It's an addiction,'' he said, adding that some people cannot deal with down time or quiet moments. Without it, we are in withdrawal.'' The Lure of Data – Is it Addictive; July 6, 2003 2010 Biggest Ideas of the Year #3: Boredom is Extinct

8. IPad User have a Similar Profile of Content Grazing Q. 36_1 How often do you get updates on your favorite topics (sports, music, celebrities, hobbies, etc.) on your computer and smartphone? More than 10 times per day Get Passion Related Updates Over 10 Times per Day

9. Q. 28b How interested would you be in an app that allowed you to customize it to follow multiple topics of your choice? Interest in a Custom Multiple Passion App All Groups Were Interested in a Universal App

10. IPad Users Have More Active Apps Q.15 How many apps do you use at least once per month?

11. IPad User have more Paid Apps 76% 21% 35% Q. 16 How many of your apps, if any, do you pay for? Q. 15 How many apps do you use at least once per month?

12. IPad Users Buy More Apps in Almost Every Category

13. iPad users are 5X more likely to use subscription apps 5.91.31.1 Average # of Paid Subscription Apps # of Paid Subscription Apps Q.19 How many of your paid apps are subscription based?

14. Q.23 How many paid apps have you stopped using? # of Paid Apps No Longer Used IPad Users are Much More Likely to Stop Using a Paid App

15. While IPad Users are Willing to Pay, they Expect Value or They are Gone Q.26 What are the most common reasons why you’ve decided to stop using or paying for an app? Top Reasons for No Longer Using an App

16. iPad Users Report Fewer Ad-free Apps Q. 22 How many of your paid apps contain some type of advertising?

17. Ipad Users Are More Likely To Pay For Content Monthly SpendIPAD USERS IPHONE USERS DROID / OTHER USERS Magazines $30 $13 Newspapers $25 $10 $12 Mobile Phone Services $ 91 $93 $91

18. The Multi Million Dollar Question: Is the willingness to pay for apps driven by the early adopter audience OR by the form factor?

19. Thank you! Brian.Monahan@ipglab.com www.ipglab.com