OTT EXECUTIVE SUMMIT You Decide - Top OTT Trends in 2015 Jim Turner - Moderator SVP, Market Development and CRO Net2TV Chris Walters CEO Encompass Digital Media Martijn van Horssen CEO 24i Media Matt Smith Chief Evangelist Anvato James Norman CEO Pilotly

OTT Penetration Growing UPDATE: 56% US HH have TV connected to the Internet (44% in 2013, 24% in 2010) 29% have multiple devices connected (17% in 2010) UPDATE: 56% US HH have TV connected to the Internet (44% in 2013, 24% in 2010) 29% have multiple devices connected (17% in 2010) Leichtman Research Group: Emerging Video Services IX, May 2015

Viewing is shifting 29% of adults watch video via the Internet at least weekly (17% in 2013, 5% in 2010) 85% of Netflix viewers watch on a TV 52% of HH have an SVOD subscription 29% of adults watch video via the Internet at least weekly (17% in 2013, 5% in 2010) 85% of Netflix viewers watch on a TV 52% of HH have an SVOD subscription Leichtman Research Group: Emerging Video Services IX, May 2015

“Pay-tv” is becoming “Broadband Services”

Ad Money is moving Ad Revenue in billions OTT TV Legacy TV Source: The Diffusion Group, 2015 $68.3 $79.0

Many more shows being produced

7 Subscribers are sharing passwords Netflix

Top Trends - Candidates Consumer Behavior Monetization Content Technology Regulation A. Cord cutting B. Login sharing by SVOD users C. Ad dollars shifting to digital seeking targetable audiences D. Measurement of OTT viewing for advertisers E. Explosive growth of scripted programs – and the associated costs F. Low cost, high volume content production from “non-TV” sources G. Operators getting into OTT services H. Programmers getting into OTT services I. Personalization of content, data driven content J. Penetration of smart tvs and streaming media boxes growing rapidly K. Penetration of 4K sets growing and 4K content available on OTT services L. New streaming media boxes – new features, lower prices M. Higher speed broadband proliferation N. Operating and distribution expenses O. WiFi seamless hotspot deployments by operators P. Net Neutrality issues 8