May 2008 Next Generation Television from the USA Prepared for the 14 th Transatlantic Dialogue of the Minister for Federal, European Affairs of North Rhine-Westphalia and the Media Authority of North Rhine-Westphalia.

AGENDA Background An Important Solution to Audience Fragmentation Definition Distinguishing From Other Distribution Models Questions/Next Steps OBJECTIVE Clarify how syndication is a tool to fight fragmentation

INTRODUCTION Next generation TV delivered over the Internet Internet audiences are fragmented Content producers need to be able to earn revenue

BACKGROUND: SYNDICATION IN OTHER MEDIA Radio and TV both experience audience fragmentation Both respond with syndication Syndicated radio shows are the only way to reach national audience Syndication has historically been the leading source of profitability for content creators on TV

INTERNET AUDIENCE FRAGMENTATION Number of Internet destinations skyrocketing Harder for individual sites to attract and retain audience Likely to become more difficult as Internet expands (Source: NetCraft)

THE LONG TAIL OF MEDIA The future is selling less of more The sum of the tail is bigger than the head BUT Individuals on the tail struggle for audience

REVENUE SOURCES (Source: based on Veronis Suhler Report 8/7/07, reported in Mediapost) Content supported by subscriptions license fees paid ads Most Internet content is ad-supported

Advertisers require scale Fragmentation decreases scale for content creators Fragmentation jeopardizes support for content FRAGMENTATION THREATENS CONTENT CREATION

INTERNET CONTENT SYNDICATION: DEFINITION The controlled placement of the same content on multiple partnering Internet destinations

INTERNET CONTENT SYNDICATION: A POWERFUL SOLUTION Aggregates audiences Increases content’s “findability” by direct navigation

KEY BENEFIT: AGGREGATES AUDIENCES Users get more and better content, easily located Content creators earn greater revenue Publishers receive quality content at lower cost Advertisers achieve scale with simpler media buy

INTERNET CONTENT SYNDICATION AND OTHER DISTRIBUTION MODELS 4. Viral……………………… RSS/Opt-in……………… Full Content Syndication… 1. Fixed Site Distribution…….     SyndicationModel

SUMMARY: INTERNET CONTENT SYNDICATION Content creation and distribution system Overcomes problem of audience fragmentation Benefits destinations by providing affordable, quality content users by making content easy to find advertisers by aggregating users across multiple destinations

QUESTIONS and NEXT STEPS