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FOLLOWING 2 PAGES ARE FINAL AND WERE INCLUDED IN THE OCTOBER 2008 MRP Presentation. FEARnet Summary. VOD / broadband model is not viable long-term without a linear channel Limits potential viewers, ad opportunities, and distributors capable of VOD
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FOLLOWING 2 PAGES ARE FINAL AND WERE INCLUDED IN THE • OCTOBER 2008 MRP Presentation
FEARnet Summary • VOD / broadband model is not viable long-term without a linear channel • Limits potential viewers, ad opportunities, and distributors capable of VOD • Need to increase ad sales across all platforms • Dynamic ad insertion required to maximize revenues Challenges • Continue to exploit FEARnet’s recent move to LA to improve coordination • Launch FEARnet linear with DirecTV investment as the critical first step • Ensure Comcast also launches linear version • Significantly expand ad sales • Expand inventory through linear channels • Need Comcast to provide leadership in dynamic ad insertion Initiatives • Comcast’s #1 VOD provider for Free Movies • 5 of the top 10 free movie titles on Comcast in 2008 are FEARnet titles • 2Q08 VOD views increased 50% over 2Q07 (averaging 10MM views per month) • Currently in 30MM homes; adding Time Warner in August Cable VODRatings • America’s #1 horror site • Average unique users for 2Q08 up 226% over 2Q07 • Unique users hit a historic high in July 2008 (700k), up 250% from July 2007 • FEARnet.com ranked as one of the top 15 movie sites by PCMagazine.com Web Ratings
FEARnet Financial Summary SPT Share of Cash Funding SPT Share of Net Loss/Income FY09 Q2/BDGT. FY10 MRP/PRIOR FY11 MRP/PRIOR FY12 MRP FY09 Q2/BDGT. FY10 MRP/PRIOR FY11 MRP/PRIOR FY12 MRP
FOLLOWING 2 PAGES ARE FINAL AND WERE INCLUDED IN THE NOVERMBER 2007 MRP Presentation
GSN and FEARnet Summary Challenges • Launch was strong but must secure additional distribution deals (e.g., cable carriage or online) • Need to increase ad sales, including push by Comcast to provide leadership in dynamic ad insertion • If these don’t happen, revisit business model and ownership structure Initiatives • Closed deals with Verizon and Cox • Need to close carriage agreements with TWC and others; increase the number of web unique users through syndication ops • Boost ad sales by: • Hiring sponsorship marketing person to focus on multi-platform sponsorships • Move focus from VOD ad sales to web advertising • Working to extend distribution to mobile with Verizon through SPT Mobile Group representation • Pursing additional horror inventory verticals to aggregate unique viewers e.g., bloodydisgusting.com • Developing original productions with Ghost House Cable VOD Ratings • Available in 12.2 million homes • Top 10 network 11 mos. running with 6.7M views a month • 74 million views to date (launch through 9/29) • Top 5 network in set-top box use with 2.2M boxes per month • Average time spent viewing of 48 minutes Web Ratings • #1 Horror site in America (registered users) • 200% Growth since February • 7 straight months of growth • Hitting projections for unique users • Challenges • Audience remains small and demographics skew toward an older-female audience, which is less valuable to advertisers • Limited reach to launch hit or demo-changing shows • Improvements more difficult due to: declining ratings, fragmentation, return of game shows to broadcast and affiliate pressures • Attempt to broaden beyond traditional demographics with younger-male skewing poker programs proved unsuccessful • Company Plans • David Goldhill brought in as the new President & CEO • Proposed a merger between GSN and FUN Technologies to facilitate interactive strategy • Embracing existing older-female demographic, gradually seeking to get marginally younger • Expanding business to capitalize on growth of casual games • Making accessible participation and interactivity central to all programming • Seeking multi-platform games business model: packaging, online ad sales, online fees, formats, mobile, etc. • Next Steps for SPT • Evaluate potential success of new strategy • Determine interest in further investment or exiting GSN investment
FEARnet – Financial Summary SPT Share of Cash Funding SPT Share of Net Loss/Income FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP