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Over a three month period, ReelzChannel viewers showed consistent

Research Study Measuring ReelzChannel Impact on Transactional On-Demand Movie Buy Rates and Viewer Behavior with Premium Channels Summer 2009. Executive Summary. Over a three month period, ReelzChannel viewers showed consistent and dramatically higher overall consumption of transactional

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Over a three month period, ReelzChannel viewers showed consistent

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  1. Research StudyMeasuring ReelzChannel Impact on Transactional On-Demand Movie Buy Rates and Viewer Behavior with Premium ChannelsSummer 2009

  2. Executive Summary Over a three month period, ReelzChannel viewers showed consistent and dramatically higher overall consumption of transactional on-demand movies. Buy rates among ReelzChannel viewers averaged 45.9% higher than among non-viewers. On-demand movies promoted and recommended on ReelzChannel showed buy rates that were 44% higher among ReelzChannel viewers versus non-viewers. June’s “Guaranteed Movie Recommendation” performed at a buy rate that was 84.1% higher among ReelzChannel viewers versus non-viewers. Premium channels are used by ReelzChannel viewers at a rate 45.4% higher versus non-viewers. In this study, ReelzChannel viewership ranked 20thamong 42 popular digital networks.

  3. ReelzChannel Viewership • Test System: Charter Los Angeles • Basic Subscribers: 274,000 • Time Frame: June, July, August 2009 • ReelzChannel Viewers as % of System Subscribers: • JUNEJULYAUGUST • 6.9% 6.5% 4.4% • On a monthly basis, between 4.4% and 6.9% of all basic system subscribers tuned into ReelzChannel; the three month average was 5.9%. The tune-in percentage was more than double when calculated against only the digital basic package where ReelzChannel is carried. • Definition of a viewer: A viewer had to watch ReelzChannel for at least 6 consecutive minutes at some point during the month. This is the same benchmark used by Nielsen Research in determining household network ratings nationwide. Source: Rentrak-ReelzChannel Research June/July/August 2009

  4. Viewers Buying On Demand Movies • Percentage of Subscribers Ordering • Transactional On Demand Movies: • Non RC ViewersRC ViewersDifference • June 12.3% 18.8% +53.3% • July 12.0% 17.5% +46.1% • August 11.9% 16.5% +38.5% • ReelzChannel viewers ordered transactional on-demand movies at a buy rate between 38.5% and 53.3% higher than non-ReelzChannel viewers. • Over the three month period, ReelzChannel viewers ordered transactional on-demand movies at an average buy rate 45.9% higher than non-viewers. Source: Rentrak-ReelzChannel Research June/July/August 2009

  5. Recommended Titles Performance • Performance of ReelzChannel Recommended On-Demand Movies: • Non RC ViewersRC ViewersDifference • June 2.9% 3.8% +33% • July 1.2% 1.9% +52% • August .68% .99% +47% • On-demand titles promoted and recommended by ReelzChannel performed at buy rates between 33% and 52% higher among ReelzChannel viewers. • Over the three month period, ReelzChannel viewers purchased our promoted and recommended titles at a buy rate averaging 44% higher than non-viewers. • Examples of promoted titles during this period: Quantum of Solace, Gran Torino, Slumdog Millionaire, Twilight, Madagascar 2, Benjamin Button, Doubt, He’s Just Not That Into You, The Reader, New in Town. Source: Rentrak-ReelzChannel Research June/July/August 2009

  6. Guaranteed Movie Recommendation • Our on-air promotion – the Guaranteed Movie Recommendation (GMR) – seeks • to drive more on-demand movie sampling and viewing through the simple • concept of a money-back guarantee on movies viewers don’t like. • In June, the GMR was “Gran Torino,” starring Clint Eastwood. Below is • buy rate performance data: • Non RC ViewersRC ViewersDifference • 1.89% 3.48% +84% • The GMR movie buy rate was 84% higher among ReelzChannel viewers versus non-viewers. • The GMR will return on a quarterly basis in 2010. Source: Rentrak-ReelzChannel Research June/July/August 2009

  7. Premium Channel Usage • Usage of premium channels comparison between ReelzChannel viewers and • non-ReelzChannel viewers for the month of July 2009: • Non RC ViewersRC ViewersDifference • Base 254,412 17,564 • Premium 153,110 15,372 • % Premium 87.52% 60.18% +45.4% • Usage of premium channels among ReelzChannel viewers was 45.4% higher than among non-ReelzChannel viewers. • Definition of a viewer: A viewer had to watch one of the above mentioned channels for at least 30 consecutive minutes during the month. • Premium channels surveyed: HBO, Showtime, Starz, plexes of each. Source: Rentrak-ReelzChannel Research June/July/August 2009

  8. ReelzChannel Compared to Other Channels ReelzChannel Viewership Ranking Among Popular Digital Networks: % Subs Viewing 1. National Geographic 23.24 2. MTV2 16.40 3. G4 16.34 4. Lifetime Movie Network 14.04 5. Hallmark 13.14 6. Womens Entertainment 12.78 7. History International 11.76 8. Style Network 10.99 9. Versus 9.75 10. Noggin 9.60 11. The N 8.85 12. Nicktoons 8.42 13. Discovery Health 8.36 14. Biography Channel 8.30 15. Military Channel 7.76 16. Boomerang 7.39 17. Fuse 7.14 18. Sundance Channel 6.87 19. MTV Hits 6.83 20.ReelzChannel 6.46 21. Investigation Discovery 6.44 22. TV Land 6.35 23. MTV Jams 6.32 24. BBC America 6.18 25. TV 1 5.43 26. DIY 4.79 27. Planet Green 4.76 28. VH1 Classic 3.95 29. VH1 Soul 3.88 30. BET J 3.80 31. Fine Living 3.64 32. Fuel TV 3.57 33. Independent Film 3.46 34. Discovery Kids 2.75 35. MTV U 2.72 36. Discovery en Espanol 2.32 37. Wealth TV 2.20 38. ImaginAsian TV 1.77 39. Bloomberg TV 1.73 40. ABC News Now 1.72 41. CMT Pure Country 1.37 42. Fox Business News 1.08 Source: Rentrak-ReelzChannel Research June/July/August 2009

  9. For Your Consideration ReelzChannel viewers are valuable subscribers who generate high levels of on-demand revenue for distributors. Distributors carrying ReelzChannel receive significant additional promotion for featured on-demand and premium titles against an audience eager to view those titles. ReelzChannel provides viewers who are interested in movies with the information and promotion to drive them to order more movies. ReelzChannel viewers use premium channels much more often than non-viewers, making them higher revenue subscribers who are less prone to churn. ReelzChannel viewership ranks highly among popular digital cable channels. For more information: contact John deGarmo at 505.212.8750 or jdegarmo@reelzchannel.com

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