PRESENTATION FOR:Future of Television Tour 2011

David Prager

March 09, 2011

• Revision1: Constrained Distribution

Broadcast Networks (1950 – 1980)

• Revision2: Increased Supply, Finite Channel Space

Cable Networks (1980 – 2005)

• Revision3: Infinite Supply, Barriers Eliminated

Internet Networks

Market: Video Transitions Create Huge Value

About Revision3

• Online television for the New Media consumer

• Original HD Programming

• Over 42 million monthly views

• 12.5 Million Unique Viewers

• Anywhere, anytime, any device, any service

• Unique Sponsorship Model = Social Influence Marketing

New Media Consumer

• New generation of consumers have abandoned traditional TV and media

– Digital natives

• Hyper-connected users– Mobile devices, PCs and gaming consoles

• On demand lifestyle– Information, interaction & entertainment

24/7• Text based content• Video content• Communication• Social interaction

• Influential Opinion Leaders- Actively choose content that fits

their passions- Use technology to share

information and opinions with their communities

- Amplified spheres of influence -- Blogs, Social Networks, Chat, Forums, Twitter

Product: Revision3 Core Programming

• Authentic Content For Passionate Communities– Technology and Video Games– Entertainment: Movies, Music, Comics– Internet Culture & Comedy– How To/DIY: Film, Tech & Food– Personalities and Vlogs

• Hosts come from these communities– Experts Not Actors– Credible– Highly Influential– Approachable– Strong Audience Connection

• Unique mix of entertainment and information• 1/3rd Produced In House, Balance From External Producers

Reaching an Elusive Audience

• 95.9% - Male

• 48.8% - 12-24

• 72.3% - 18-34

• 78.1% - Have some college or higher education

• 81.4% - Spend more time with Internet/Digital content than TV content.

Sources: Revision3 Viewer Survey, Summer 2010

Reaching Technology Enthusiasts

Sources: Revision3 Viewer Survey, Summer 2010

Have 3+ HH Computers

Are advanced computer users

Frequently give friends advice about what technology products to buy/try

81.5%

90.3%

80%

Watching Video On The Best Screen Available

Sources: Revision3 Viewer Survey, Summer 2010

On a PC/Mac in a window

On a PC/Mac full screen

On a Mobile Device (Cell Phone, iPod, Zune, PSP, etc.)

On a TV or large display

49.2%

65.6%

28.4%

40.4%

Revision3 Overview

• http://bit.ly/Rev3_NetworkSizzle_Feb2011

• http://videos.revision3.com/revision3/creatives/ProductPlacements/rev3-networksizzle-2011.m4v

Market: Ad Dollars Accelerating into Professional Video

2013

2012

2011

2010

2009

2008

2007

$5,800

$3,400

$1,900

$1,150

$750

$505

$324

US Online Video Advertising Spending ($Millions)

Total TV Ad Spend $200B

Source: eMarketer, Forrester, The Diffusion Group

Broad Reach

Target Audience

Target Audience

Broad Reach

$$$ $

Laser Target Your Core Audience

Traditional Model:Shotgun Mass

Media Approach(High cost, low return)

Revision3 Model: Low Budget &

Target Approach(Low cost, higher return)

VS.

Users Shifting to Web Video

Sources: 1Comscore & .Fox Networks, 2010; 2Simmons Research

Consumers exposed to online video advertising were 28% more likely to visit the brand site and nearly twice as likely to conduct a trademark search, compared to those exposed to display advertising.1

Consumers are 47% more engaged in ads that run in online video compared to traditional TV.2

47%

28%

Unique In-Show Sponsorship Model

• Trusted Hosts Deliver Sponsorship Message Within The Show– Delivering Key Messaging points interlaced with graphical/video assets

provided by sponsor – Stays within the tone, cadence and pacing of the show– Sponsorship is integrated to become part of the content– Leverage strong connection between the hosts and the audience

• Minimal Clutter/High SOV Around Sponsor Messaging– Each show 1 to 3 sponsors,

depending on the length– Effective format that resonates

with audience

Revision3 Sponsorship Opportunities

• Standard Online (IAB) Display Inventory

• Dynamic Ad Inserts

– :15 Pre-Rolls

– :30 ad Post-Rolls

– Lower 1/3 Flash overlays

• Customized Host Endorsement and Product Placement

– Endorsement from a trusted host

– Integration into the show

– Minimal production cost

• Branded Entertainment

– Custom Programming - Shows and segments

Dedicated Viewers

Of Revision3 viewers watch the entire episode of their favorite Revision3 show91.8%

8.1%

94.7%

23.8%

Watch episodes multiple times

Consider the recommendations of Revision3 show hosts as helpful or highly influential

Watch Revision3 shows with family and friends

Loyal and Engaged Viewers

Sources: Revision3 Viewer Survey, Summer 2010

Unaided recall of at least 1 Revision3 advertiser

Unaided recall of 3 or more Revision3 advertisers

Purchased a product or service from a Revision3 advertiser

99.6%

91%

55.7%

New Talent with Large Communities

63 Million Total Views

319 Million Total Views

100 Million Total Views

Product: Scalable, Unique Model

Revision3 Video Platform

Production

Low Cost Produc-tion and Editing

Talent ID and

Develop-ment

Trend Spotting

Distribution

YouTube and web

Emerging Channels –

OTT and Mobile

Social Graph

Optimiz-ation

Sales

High Impact Brand

Integra-tion

Multi-Unit Optimizati

on of Yield per

View

Branded Entertain-

ment

Revision3 Distribution

Anysource Amazon Blinx Blip.tv Break Clearleap CNET Dailymotion

Howcast Hulu Intercast iTunes

Roku

mefeedia Metacafe Miro MySpace Next.tv

Pyro.tv Revver Sling Sevenload Stitcher TiVo Transpera Viddler

Virgin America Vuze Yahoo! YouTube Webcastr Zune zvue

Divx Connected

Revision3 Viewership Breakdown

Streaming30%

Downloads48%

Partners22%

Strong Support From Major Brands

Nokia

Activision Adidas Adobe US Air Force Anheuser-Busch

Ask.com Axe Coors

Dell EADolbyDice HBO HP

Klondike Ford GoDaddy Microsoft Netflix NHTSA NVIDIA

Panasonic Patron PS3 SanDisk Sony Starz

Squarespace Unilever Verizon Virgin America Walt Disney WB XBOX360 Zune

Qualcomm Sega

G4

IntelDr. Pepper

Citrix

Fox

Ubisoft

Old Spice