1. User-Generated Content Inquiry Topline Results with Appendix From:Mark Orne Daniel Christman Prepared for: Grouper Due Diligence

2. User-Generated Content Inquiry 2 Initial Takeaways YouTube remains the leader in usage by those familiar with video sharing sites (pp. 4 & 5) –85% of those familiar with video sharing sites visited YouTube; iFilm is a distant second with 16%; Grouper lags with 4% –MetaCafe users visit 11.2 times per month, YouTube users visit 10.7 times per month, Grouper users visit 7.8 times per month A minority (28%) of all site users post content (p. 5) Grouper is well positioned on awareness amongst those familiar with video sites (p. 7) –Although YouTube and iFilm lead with 93% and 50% respectively, Grouper is tied for third with 33% awareness Grouper-users place greater emphasis on its differentiated features (p. 8) –Grouper and YouTube rate similarly on performance for basic features, including ease-of- use and types of videos posted –Grouper stands out for visual quality, ability to post to MySpace, use amongst respondents’ friends, choice of ads, and editing software Grouper’s features are comparably appealing to users and non-users (p. 9)

3. User-Generated Content Inquiry 3 Initial Takeaways (continued) Grouper’s users give the service higher overall marks than do YouTube’s users (p. 10) –49% rate Grouper as “Great,” 38% rate YouTube as “Great” A minority of users (22%) download content for transfer to portable devices (p. 11) Most users (63%) share video links with friends, driving growth in these sites (p. 11) Indiscriminate addition of ads decreases interest. However, selectively interspersed ads seem to address users’ concerns and thereby mitigate some of the decrease in interest (p. 12) Methodology 2 separate studies. One conducted to determine incidence rates (n=10,316). One conducted to gauge attitudes and usage of competing video-sharing websites (n=748). Both were conducted 7/28-7/31. The incidence check tells us that men are 1.6 times more likely than women to be aware of video-sharing websites (61% vs. 39%). The demographics of the main study are weighted to match.

4. User-Generated Content Inquiry 4 Incidence YouTube85% ifilm16% AddictingClips7% MetaCafe7% TagWorld6% VideoEgg5% Grouper4% GUBA3% REVVER3% veoh3% Of the 10,000 adults interviewed between 7/28 – 7/31, slightly more than 5,000 were aware of online video sharing 85% of the 5,000 that were aware of video sharing sites had visited YouTube in the last 3 months Note: The data in this table are NOT weighted and as such, this table should not be directly compared to the other tables in this report. It is based to those aware of video-sharing sites.

5. User-Generated Content Inquiry 5 On average, how often do you go onto each site each month? TotalMaleFemale13-2425-3435-54 Yes28%39%12%24%36%19% No72%61%88%76%64%81% Have you ever posted video? Mean MetaCafe11.2 YouTube10.7 VideoEgg10.0 TagWorld9.8 veoh9.3 REVVER9.2 AddictingClips8.6 ifilm7.9 Grouper7.8 GUBA7.5 Total8.2

6. User-Generated Content Inquiry 6 Total Male61% Female39% 13-2443% 25-3444% 35-5413% Grouper (Quota) 29% You Tube (Quota) 66% Uploaders (Ever posted to “Share” site) 28% Heavy Downloaders (25+ site visits monthly) 12% Early Adopters (Started sharing >6mo) 27% Late Adopters (Started sharing <6mo) 73% Viral (Recommended site to >9 friends) 23% This table provides demographics for the 748 respondents allowed to continue the survey after an initial battery of questions that screened for age, gender, awareness, and usage of video-sharing websites. By capturing screener data, we are able to weight our data to match “true” demographics and thus adjust for the bias (primarily gender) associated with online sampling. Main Survey Sample Demographics

7. User-Generated Content Inquiry 7 TotalMaleFemale13-2425-3435-54 YouTube93%91%97% 89%93% ifilm50%61%34%45%55%51% TagWorld33%39%24%32%37%28% MetaCafe33%43%16%30%39%19% Grouper33%43%16%27%41%24% VideoEgg31%41%14%24%36% AddictingClips28%36%15%27%30%25% GUBA25%35%8%19%30%25% REVVER21%30%7%20%24%13% Veoh19%27%7%17%23%16% Which sites have you heard of? Among consumers familiar with video-sharing (all 748 respondents), awareness of Grouper is solid, tied for third after YouTube and ifilm.

8. User-Generated Content Inquiry 8 TotalGrouperYouTubeUploaders Easy to use44%45%44%45% Videos download quickly38%39%36%38% Easy to find videos looking for37%38%36%41% Like types of posted videos35% 38% Like variety of posted videos35% Good visual quality32%40%28%39% Few rules/restrictions29%35%26%38% Easy to post to MySpace etc.28%43%22%41% Site my friends use24%38%18%37% Site used by most people overall23%35%19%39% Ads aren’t annoying23%31%20%32% On-site editing software is useful19%32%13%33% How important are the features? Summary of “Extremely Important” While scores are similar for Grouper and YouTube on basic features, we see that Grouper users respond well to differentiated features.

9. User-Generated Content Inquiry 9 TotalGrouper Video creation/editing tools52%55% Private video sharing52%55% P2P file exchange50%48% Easy downloading to iPod49%55% 1-click publishing to MySpace etc.48%43% Web-cam realtime recording44%47% Music video/lip-sync41%50% Webcam video comments35%44% Smart address book30%43% Are Grouper-style features considered valuable? The fact that Grouper’s features are comparably appealing to users and non-users is a positive sign that these features could be used to entice users of competing sites to migrate.

10. User-Generated Content Inquiry 10 TotalGrouperYouTubeUploaders It’s great41%49%38%52% Good but needs some improvement41%42%41%42% Okay but has issues4% 5%4% Don’t really like it1% 2%* Extremely dislike it*-*- Haven’t really used it enough12%4%15%2% Which of the following best describes your opinion of your favorite video-sharing site? TotalGrouperYouTubeUploaders It’s easy75%77%72%78% Does what I need it to58%51%61%57% My friends use it33%45%28%42% Best for sharing with a lot of people23% 24%32% It’s where I have my videos stored14%30%7%28% If yours isn’t “great” or “good”, why not try another site? Grouper receives higher marks than the competition. However, conversion requires overcoming the view held by users of competing sites that “less than good” services are still “good enough”

11. User-Generated Content Inquiry 11 TotalMaleFemale13-2425-3435-54 Yes22%29%11%22%23%17% No78%71%89%78%77%83% Have you ever downloaded video from a UGC site to a portable device? TotalMaleFemale13-2425-3435-54 Yes63%65%61%58%68%66% No37%35%39%42%32%34% Have you ever sent a friend a link to a video in an email? Likelihood of emailing links makes these sites highly viral Portability is not critical for user-generated video

12. User-Generated Content Inquiry 12 Total I do not like this type of ad35% I would wait for it to finish30% I would still use the website, but less25% I would close the window20% I might watch the ad if I could pick the subject19% I would not return to a site with this kind of ad14% I like this type of ad11% Reaction to a :10 commercial played before video? Total I would still be unlikely to use the site46% I would be somewhat more likely to use the site39% I would be much more likely to use the site27% What if it played only once out of every four videos? Indiscriminate addition of ads decreases interest. However, selectively interspersed ads seem to address users’ concerns and thereby mitigate some of the decrease in interest. Note: Total Column does not add to 100% because respondents were allowed to select multiple responses.

13. User-Generated Content Inquiry 13 Appendix

14. User-Generated Content Inquiry 14 GrouperYouTubeifilm Upload/Post67%12%15% View Only33%88%85% % uploading on each site

15. User-Generated Content Inquiry 15 On average, how often do you go onto _________ each month? Mean Grouper Total7.8 Grouper Uploaders9.2 Grouper Non-Uploaders5.1 YouTube Total10.7 YouTube Uploaders19.8 YouTube Non-Uploaders9.1

16. User-Generated Content Inquiry 16 TotalUploadNon-UpGrp-UpGrp-NonYT-UpYT-Non Easy to use44%45%44%46%44% 45% Videos download quickly38% 37%36%46%42%36% Easy to find videos looking for37%41%35%39%36%43%35% Like types of posted videos35%38%34%38%27%39%34% Like variety of posted videos35% 33%38%37%34% Good visual quality32%39%29%42%34%26%27% Few rules/restrictions29%38%25%38%30%41%24% Easy to post to MySpace etc.28%41%23%41%46%39%20% Site my friends use24%37%18%42%29%27%16% Site used by most people overall23%39%17%43%20%34%16% Ads aren’t annoying23%32%20%38%17% 21% On-site editing software is useful19%33%13%36%25%22%11% How important are the features? Summary of “Extremely Important”

17. User-Generated Content Inquiry 17 Are Grouper-style features considered valuable? TotalUploadNon-UpGrp-UpGrp-NonYT-UpYT-Non Video creation/editing tools52%54%52% 62%64%51% Private video sharing52%59%49%59%46%61%49% P2P file exchange50%49%50%51%44%51%52% Easy downloading to iPod49%55%47%58%49%50%46% 1-click publishing to MySpace etc.48%46%49%43% 54%50% Web-cam realtime recording44%42%45%43%56%39%43% Music video/lip-sync41%50%38%49%53%50%36% Webcam video comments35%43%32%46%42%30% Smart address book30%38%27%43%44%28%24%

18. User-Generated Content Inquiry 18 Which of the following best describes your opinion of your favorite video-sharing site? If yours isn’t “great” or “good”, why not try another site? TotalUploadNon-UpGrp-UpGrp-NonYT-UpYT-Non It’s great41%52%37%49%47%57%35% Good but needs some improvement41%42%41%46%35%32%42% Okay but has issues4% 2%7%10%4% Don’t really like it1%*2%*3%-2% Extremely dislike it*-*---1% Haven’t really used it enough12%2%16%2%8%1%17% TotalUploadNon-UpGrp-UpGrp-NonYT-UpYT-Non It’s easy75%78%73%78%74% 71% Does what I need it to58%57%59%58%36%55%61% My friends use it33%42%30%47%38%22%29% Best for sharing with a lot of people23%32%19%26%16%53%21% It’s where I have my videos stored14%28%8%33%24%15%5%

19. User-Generated Content Inquiry 19 TotalGrouperYouTubeifilm Yes22%54%8%15% No78%46%92%85% Have you ever downloaded video from a UGC site to a portable device? TotalGrouperYouTubeifilm Yes63%71%60%70% No37%29%40%30% Have you ever sent a friend a link to a video in an email?