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Creating a New Age of Video Entertainment

Creating a New Age of Video Entertainment. Telecom at NAB April 15, 2008. What is Building B?. New entertainment services company 1 st Complete next generation TV offering Comprehensive content lineup, including traditional TV, internet and movies

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Creating a New Age of Video Entertainment

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  1. Creating a New Age of Video Entertainment Telecom at NAB April 15, 2008

  2. What is Building B? • New entertainment services company • 1st Complete next generation TV offering • Comprehensive content lineup, including traditional TV, internet and movies • Seamless integration of live, stored, downloadable and internet video • Centered on on-demand viewing • Personalized and tailored to the individual viewer • Distributed through broadband service providers and national retailers

  3. 70 million consumers will make Digital TV choice over the next 4 years Major Disruptions in the TV Industry: A Catalyst for Consumer Change Mobile Video DVR Internet Content HDTV Digital Transition Triple Play

  4. Complaints Include High Prices, Inflexible Bundles and a Poor Experience Value is critical Opportunity to improve the experience Simplicity is key Upgrade to HD Inflexible bundles Too expensive Inconvenient start times Movie selection (on-demand) Difficulty making everything work together The picture quality does not meet my expectations Can’t find something of interest to watch Poor navigation and usability

  5. Current Approaches are Not Working • Broadband is challenged to deliver HD television • A pile of special purpose boxes • Television STB / DVR • Movie boxes • Internet video boxes • Legacy systems are difficult to upgrade

  6. Upgrading Existing Infrastrucure is Prohibitively Expensive IP backbone providers will not be able to economically light the existing and new fiber necessary to deliver broad based TV access at reasonable consumer prices.- 2007 Telecom Predictions Report, Delloite and Touche Consulting

  7. The Key: Align the Network with Content Viewership Broadcast Networks 53% Leading Networks 34% % of TV Viewing Premium Content & Movies Internet Video Niche Networks ABC, NBC, CBS, FOX, Univision, Telemundo, My Network, CW, Telefutura, other independents 7% 0% Long-Tail Short-Tail (87% of TV viewing) Source: Nielsen HH ratings 2005-2006 TV season

  8. Video Delivery Cost Optimized by Combining Broadcast and Broadband Digital TV Spectrum Broadband Broadcast Private Broadcast Unicast Deliver to All Group Delivery Direct Viewers Least Expensive Most Expensive

  9. Video Imperatives for the Broadband Industry • Differentiated television offering • A complete content lineup (including HD) • Works in America’s homes today—with existing broadband • Limited infrastructure investment • Enhanced brand and customer relationships

  10. Simple Self-Install Comprehensive Content Wireless BreakthroughVideo EntertainmentSolution PersonalizationandIntelligence Time Shifting and On-Demand Relevant Advertising Compelling Pricing

  11. Unlocking the Next Generation of Television Breakthrough video entertainment service to be launched in 2008 • Low entry cost • Simple out of the box setup • Tailored to individual viewer's routines and preferences • High Definition and On-Demand • Community and Web Features • Broadcast networks and local channels • Cable networks • Studio library channels • PPV movies and events • Internet content • Delivered straight to the living room television • No need for a PC • Works with any broadband service Accessible Personalized Experience Comprehensive Content Works in Homes Today

  12. The Industry Has an Opportunity to Capitalize on a New Chapter of Consumer Video Broadcasters: Receive returns on their digital investment Revitalize their business with targeted and interactive ads Content Providers: Extend content to new platforms Leverage brand in an on-demand world ContentProviders Broadcasters Advertisers: Deliver higher value advertising on television Improve the effectiveness of advertising Broadband Service Providers: Offer a differentiated triple play Avoid expensive infrastructure Promote their brand BroadbandService Providers Advertisers

  13. Building B is A Turn-key Video Solution for Broadband Service Providers Triple Play Telco's and ISP’s + = • Differentiated video services • High-capacity wirelessnetwork for content delivery • DSL and 4G Wireless • Voice & data services • Marketing & distribution

  14. Building B Partnership Model Partner & Partner Partner Partner Partner Partner

  15. The Time is Now • Major partnerships complete • Broadband providers • Content providers • Advertisers • Created nationwide content distribution network • Broadcast partners in initial launch markets • Infrastructure Partners • Announced with Harris Corporation and Sun Microsystems • Commencing trials for commercial pilot

  16. Creating a New Age of Video Entertainment Telecom at NAB April 15, 2008

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