Live coverage of Ryder Cup, World Cup Soccer, ... Hulu. IT

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Introduction to Narrowstep
Narrowstep - The leader in managing, moving
monetizing video content over the internet
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Narrowstep Inc
Narrowstep is the leading enabler of global
Internet TV services
ISP/Telcos

• Founded in 2002 (OTC NRWS)
• Experienced mgmt team headed by David McCourt
• 118 annual growth
• 180 channels
• Highest quality video streaming
• Live coverage of Ryder Cup, World Cup Soccer,
  European Cycling, and the 2006 Winter Paralympic
  Games

Broadcasters
Content Owners
Brands
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What is Internet TV?

• TV delivered to PCs and even your television all
  via the Internet
• Mixed viewing modes interactive schedule, VOD,
  archive search, download, and live events
• Multiple commercial opportunities
• Subscription and Pay Per View
• Advertising (targeted, local, video and banner)
• Sponsorship
• Syndication
• eCommerce
• Collecting and analyzing CRM data
• Viral Communities
• Disintermediation build a relationship with the
  end viewer
• Email videos, highest rated, play lists, chat,
  etc.

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The Internet TV Marketplace

• The marketplace is at the start of a boom
• 75 percent of U.S. Internet users watched an
  average of 3 hours per month viewing more than 9
  billion videos (ComScore August 2007)
• 66 of US consumers view video streaming at least
  once per week (Advertising.com, InsightExpress
  2007)
• People watched 1.5 billion more minutes of video
  per month than searching on Google.  4 billion
  total. (Ave A/Razorfish Oct 2007)
• All major publishers are acting as the switch to
  Internet TV begins
• US population spends more time on the internet
  than watching TV
• Massive predicted value
• Infonetic - 44Bn in 2008
• GP Bullhound - 150Bn in 2009
• 1000s of channels are being created

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Internet TV Convergence Map
IPTV BT Vision
Sky
STB
X Box PS3
Convergence
Joost Virgin Media Telefonica KPN
MySpace Facebook Video Egg You Tube
Hulu ITV Online Watch India
AOL Video Blinkx
PC
Singlemalt.tv
Cycling.tv
MTV Overdrive
You TV
Major Aggregator
New Generation Broadcast
Community
3G

• Breakdown of walled garden

Vodafone live
WiMax
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Local content
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Ex-patriot example
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telvOS

• telvOS (Television Operating System) is a robust
  content and digital asset management system
  (CMS/DAM). The system includes native
  functionality that provides the most extensive
  turn-key ASP (Application Service Provider)
  solution on the market.
• Narrowstep offers one vendor, one scalable, and
  flexible solution!

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End-to-End support for your business

• Internet Broadband
• Cable head end
• Wireless/Wi-Fi
• Satellite head end
• Broadcast head end
• Internet distribution syndication

• In stream ad spots
• Banner ads
• Dynamic ad delivery
• Geo-targeting
• Synchronization
• Interactive (2-way)

• Content Management
• Scheduling/Playout
• Encryption/Security/DRM
• Payment Authentication
• Reporting Analytics
• E-commerce
• Integration/Extensions
• Web Services APIs

• Highest data rates (56kb-1800kb)
• Transcoding
• Localized Vlipsync
• Remote Upload

Encoding
Management
Advertising
Delivery
Experience
Network
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Engage Monetize

• Narrowstep Creates the Most Engaging User
  Experience
• Watching at high speed avg. connection speeds
  1200kbps
• 60 of viewers watch full screen, creating a
  captive audience
• 70 watch scheduled content (rather than on
  demand or download)
• Long format and mixing modes is key to long
  viewing times
• 78 of NRWS viewers watch between 30-50 minutes
  per session
• 83 of NBC viewers watching hour long shows reach
  the end (NBC 2007)
• Profit From the Relationship
• Combine the benefits of TV and Internet
  advertising to drive revenue
• Currently get 30-80 CPM (Narrowstep internal)
• Mix revenue streams for optimal profitability
• 23 of viewers are willing to pay for content if
  it means they dont have to watch ads (Ipsos,
  Associated Press, and AOL)
• Narrowstep provides more monetization tools than
  anyone

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Multiple Monetization ToolsGet More
Video can be the vehicle for multiple revenue
streams Narrowstep has the answers
Ad Delivery- telvOS comes complete with a
comprehensive and flexible ad delivery server.
Subscription- global paid subscriptions with
multicurrency and auto billing function
Pay-per-view- one time payment collection for
tickets or promotions
Downloads/Rentals- establish payment and business
rules against content for downloads
Syndication- syndicate content to 3rd party
websites, blogs, and partners and monitor usage
etc.
Sponsorship- have the flexibility to manually
manage interstitials , promos, sponsor placement,
when and how your business demands it
Co-brands- allow content providers to have unique
channels under the umbrella of your primary
channel, similar to how cable and satellite
companies operate.
eCommerce consumers watching NRWS video are 5x
more likely to purchase
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Video Quality is Issue 1, 2, 3
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Solution for providing high quality video

• 1 adoption issue cited by viewers is video
  quality (Jupiter, Bear Sterns, OMMA)
• Narrowstep operates its own CDN to increase
  quality and reduce cost
• Narrowstep streams at higher bit rates than
  anyone on the market, 1800 Kb/s compared to 800
  Kb/s
• From a video inside a web page (YouTube) to full
  screen (few vendors) to a full screen on your
  plasma (Narrowstep)
• Narrowstep encodes at multiple bit rates and
  optimally delivers the right bit rate for the
  viewer

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Developing consistent formats
Banner
In stream video advertising
MPU - synchronised
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nBed for Syndication Simple players

• nBed a video in your web page

• nBed a full player in your web page

• nBed in a partners site for syndication

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Video advertising market is growing rapidly
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Substantial Ad opportunity

• The quality of the channels and audience creates
  an advertising medium with great potential.
  Forrester says the viewer
• Earns more (27 vs average Internet users)
• Buys more (much more likely to have made an
  online purchase of 80 in the last three months)
• Is more difficult to reach through other media
  (spend 52 more time online)
• Internet TV advertising is spectacularly
  effective
• 80 of online video viewers have watched an
  online video ad and of those, 52 took some
  action (OPA 2007)
• Narrowstep viewers are 5X more likely to convert
  to commerce (Terra)
• CPMs are 30-80, 20X a banner ad

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Ad market
US Online Display Ad Spending by Type, 2007 to
2012
quadruple
double
Jupiter Research 2007
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UK Market Snapshot
per Month
Ad Views
CPM ()
f
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The Narrowstep difference

• Highest Quality Video Streaming
• A Complete Content Management System
• The Most Video Monetization Tools
• A Single, Comprehensive Solution
• Experience Complete Service Offering