PRESENTATION ON THE PREMIUM CABLE VIEWER

TODAY’S AGENDA:

1) AL BERRIOS & CO. IMARKETING METHODOLOGY;

2) PREMIUM CABLE CONSUMERS, OUR DATA ON SHOWTIME VS. HBO*;

3) KEY CHALLENGES AND RECOMMENDATIONS BASED ON CONSUMER DATA GATHERED USING OUR METHODOLOGY**.

* Based on a study conducted by Al Berrios, Managing Director, al berrios & co., from October 21st through October 31st 2002 from data collected December 2001 through October 2002 using our iMarketing methodology. The basis for understanding this study is whether or not a viewer is a subscriber AND whether or not they are aware of Showtime original programming. Figures are not representative of actual totals. They are percentages of subscriber, non-subscriber, and subscription-status-unknown segments.

** Consumers targeted for this engagement are U.S. Based, with internet access and unaware of specific premium cable programming.

The contents herein are PRIVATE AND CONFIDENTIAL and may not be reproduced or redistributed in any form without written permission from al berrios & co., subject to penalty. (c) 2003. All Rights Reserved. al berrios. Published by al berrios & co.

researcher

CURRENT RESEARCHING APPROACHES

consumer

survey

response

“As researchers, we have become accustomed to looking at the internet as just another medium by which it is possible to send out requests for information, and await its return”

“The internet serves one fundamental purpose - to connect people and allow them to interact with each other.” It is a social gathering place. And, “as an environment, the internet provides the researcher with a practical, convenient, and quality alternative to sending requests.”

al berrios & co. IMARKETING METHODOLOGY

researchers consumers

al berrios & co. IMARKETING METHODOLOGY

“The internet serves one fundamental purpose - to connect people and allow them to interact with each other.” It is a social gathering place. And, “as an environment, the internet provides the researcher with a practical, convenient, and quality alternative to sending requests.”

WHY IMARKETING WORKS - CONSUMER VALUE MODELTM

QUALITY

INNOVATION

UTILITY

SATISFACTION

CONVENIENCE

RECOMMENDATIONS

“The value to the consumer in answering up to 3 questions: the quality of the interaction, the innovation of the approach, the satisfaction of having the choice to share an opinion or meeting someone new to interact with, and the convenience of the approach, short and sweet.”

value...

whati...

IMARKETING HAS EFFECTIVELY

ELIMINATED ~95% OF THE COST OF

CONDUCTING SURVEYS FOR ANY SIZE GROUP OF

CONSUMERS.

VS.

RECOMMENDATIONS

LOW AWARENESS

Non-Subscriber Awareness of SHO programming

were NOT aware

68.48%

DIDN'T say6.52%

WERE already aware

25.00%

INCREASE DISTRIBUTION INTO QSRS, RETAILERS, HOSPTIALS, HOTELS

RECOMMENDATIONS

POOR PRICING, POWERFUL INFLUENCE

NEGOTIATE BETTER TERMS WITH DISTRIBUTORS FOR PRICING AND CONTROL OVER RELATIONSHIPS WITH VIEWERS

Consumers tell us “price is not an issue”, value is. And viewers will buy based on what they see on pay cable shows.

PPL W/O CABLE

Female25.04%

Other0.00%

Male74.96%

Source: Premium Cable Study Data, Depicts non-subscribers to Showtime, also not aware of Showtime programming.

0.75%

1.49%

1.49%

1.49%

1.49%

1.49%

1.49%

1.49%

1.49%

2.24%

2.24%

2.24%

2.24%

2.24%

2.99%

3.73%

3.73%

4.48%

5.22%

5.22%

5.97%

8.21%

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00%

SO PRANO S

SIMPSO NS

6' UNDER

WIRE

O Z

FRIENDS

SG-1

SEX/CITY

JACKASS

LAW/O RDER

SEINFELD

SHIELD

WILL/GRACE

CO PS

CRIBS

FUTURAMA

JEREMIAH

REAL WO RLD

SMALLVILLE

STREET SMARTS

NY UNDER

IDO L

TV SHOWS

VIEWER’S CHOICE (of percentage of population that mentioned a favorite program)

12.79% OF POP MENTIONED A FAVORITE PROGRAM

The contents herein are PRIVATE AND CONFIDENTIAL and may not be reproduced or redistributed in any form without written permission from al berrios & co., subject to penalty. (c) 2003. All Rights Reserved. al berrios. Published by al berrios & co.

“Prime time is no longer a ‘time of day.’ It’s a frame of mind.”

broadband

digital content

playlists, libraries, filters

RECOMMENDATIONS

AMBIGUOUS MARKETING STRATEGY

RELEVANT COMMUNICATION

RECOMMENDATIONS

CLEAR AND CONCISE DIFFERENTIATION: WHO SHOULD IT BE CLEAR TO?

PREFER HBO

Female66.67%

Other0.00%

Male33.33%

PREFER HBO

Female20.25%

Other0.00%

Male79.75%

Source: Premium Cable Study Data, Depicts non-subscribers to Showtime who are aware of Showtime programming.

Source: Premium Cable Study Data, Depicts subscribers to Showtime who are aware of Showtime programming.

vs.

WHY DO MORE GUYS PREFER HBO AFTER THEY SUBSCRIBE TO SHOWTIME?