NON-LINEAR SCHEDULING October 24, 2014

Executive Summary – Business Problem The Networks group has experienced significant growth over the past 15 years with 125 channel feeds in 159 countries Carriage agreements increasingly depend on how much catch up content will be provided. Our brand is less valuable if we don’t compete with other channels that have catch up content. There is pressure to change Consumer behavior is shifting rapidly with increased access of content over broadband rather than purchasing content. OTT services compete for traditional Pay TV dollars VOD business is growing at a rapid rate. Crackle asset volume is projected to increase dramatically(~35%) for both Licensed and Original Content in U.S. & Canada The way to compete in the marketplace is to schedule content expeditiously and efficiently to digital platforms The complexity of non-linear scheduling has significantly increased with the changing marketplace 2

Executive Summary – Business Problem Networks does not have a global non-linear scheduling system which leads to great inefficiency and lost opportunity – Increased time spent manually tracking elements (video, metadata, art, etc.) via a variety of disparate tools (Excel, Word, , Basecamp, Google Docs, CMS, etc.) – Increased time spent double-checking and correcting human- generated errors at multiple touchpoints of schedule proliferation – Increased staff to manage schedules and assets – Increased risk of errors with increased staff tracking disparate documents and processes – Increased risk of breached Direct Delivery Partner contracts – Increased risk of not achieving business goals – No comprehensive view of schedule data across various platforms The implementation of a centralized non-linear scheduling system will support the growth in our Networks business and allow for us to scale for future growth 3

Scheduling on non-linear platforms can add up quickly… AXN(Central Europe) Czech Republic Czech Republic Hungary Hungary Slovakia Slovakia Romania Romania Poland Poland Bulgaria Bulgaria VOD Catch up

Without a global system, business has had to figure this out on their own… GPMS External Sources Linear Rights VOD Rights Scheduling Programming Grid (Contains product, rights and schedule data) Scheduling Programming Grid (Contains product, rights and schedule data) Material Order and Delivery Metadata Packaging and Delivery Linear Schedule Rights Product

Proposed Solution A global non-linear scheduling system will allow us to – Dynamically update schedules for diverse business needs: on-net content, distributed content, events, promotional elements – Dynamically update workflow tracking for multiple teams to traffic increased content volumes for multiple regions – Dynamically update, track and centralize metadata and art asset management – Dynamically update schedule rights to reduce manual errors generated by overlapping, yet disparate, documents and human error A global non-linear scheduling system will allow us to embrace new business models and windowing approaches – Support rising TV engagement with second screen apps – Innovate with new products and the way we deliver content – Enhance value for Cable Operators with TVE and OTT services 6

This project will implement non-linear value chain Playout Media Producers External Studio Production Company SPE Other Contract (& Term sheet) Ingest Receive Verify Receive Verify Conform QC Edit Transcode QC Edit Transcode Library Transmission Ready Transmission Ready Deliver Transcode Package Transcode Package Finance LNL Business Intelligence 1 1 Ad Sales Linear Non- Linear Promotions Plan, Manage, Optimize campaingns B 2 B & Mobile Affiliates, Ad Sales, Partners Affiliate Mgmt Contract, Obligations, & Sales CRM Manage customer relationships GPMS Integration HUB Integration HUB Facilities Management Client Profiling Linear Non- Linear 3 rd Party Data VOD/OTT/Mobile

Invoices U.S. SPT Order Sheet (Features) Watchlist, LCI, etc. Schedules Watchlist Creative Brief Master Inventory Schedule Manifest Materials Work Order Quarterly Schedule Channel Art Creative Brief: New and Relights Promo Schedules (Video, Lower Thirds, Display) Promo Creative Brief Master Licensor Document Slideshow & Merch Tool Promotion Schedule Slide Art Request 8 Crackle Ecosystem Mo’ Spreadsheets = Mo’ Problems Every asset is copied, pasted, and tracked through a proliferation of documents. One change necessitates many changes and re-issuing the documents to various stakeholders via . Below is an example of some Programming Team documents impacted by scheduling and merchandising one feature. *NOTE: Does not include documents that might be generated by Creative, Video Operations, or Operations

Invoices U.S. SPT Order Sheet (Features) Watchlist, LCI, etc. Schedules Watchlist Creative Brief Master Inventory Schedule Manifest Materials Work Order Quarterly Schedule Channel Art Creative Brief: New and Relights Promo Schedules (Video, Lower Thirds, Display) Promo Creative Brief Master Licensor Document Slideshow & Merch Tool Promotion Schedule Slide Art Request Google Sheet 9 Crackle Ecosystem Less Spreadsheets = Less Problems Documents That Can Be Consolidated by a Non-Linear Scheduling & Workflow System *NOTE: Does not include documents that might be generated by Creative, Video Operations, or Operations We wouldn’t launch a linear channel without a scheduling system. Why wouldn’t we do the same for a non-linear platform? – Rebecca Agbe

Financial Summary 10 Depreciation: FY16FY17FY18FY19FY20FY21 $80,523$322,094 $214,729 Ongoing Costs: $650,400

Benefits 11 CategoryBenefitTiming 5-Year BenefitDescription Revenue Enhancement $220,000Yearly$1,302,421Currently around 200 – 300K revenue lost in direct distribution deals for Crackle. Assumes that we are leaving about 10% more deals every year. $62,400Yearly$512,883About $8000/month in lost revenue for Crackle as there are no centralized reports that show rights that can be exploited to be scheduled. Cost Avoidance $61,200Yearly$1,096,687Crackle Device parting - Only 20 hours of contractor time would be required instead of 40 with system in place to curate content on devices. With increased volume of 25% every year, need to hire an extra contractor each year. $12,000Yearly$219,337Crackle Day Parting initiative requires an extra 8 hours per week without system. With system it is reduced by half. Volume increase of 25% year over year would require an additional 4 hours per week. $45,900Yearly$406,858Crackle Direct delivery expansion of platforms – This accounts for increased volumes that must be packaged and worked through Operations team. Without the system an entire head would be needed, with the system half a head used. $35,900Yearly$237,304Crackle Direct delivery worklow - Ordering art, handling workflow of packaging without the system takes an entire person. With system, half the workload is reduced, so the cost avoidance is the remaining half. Operational Efficiencies $499,305Yearly$2,995,830Crackle US – Efficiencies achieved by a) eliminating spreadsheets, documents, s. b) reducing manual errors while editing spreadsheet c) centralizing workflow information in a dashboard reducing s. $149,496Yearly$896,976Crackle LATAM - Efficiencies achieved by a) eliminating spreadsheets, documents, s. b) reducing manual errors while editing spreadsheet c) centralizing workflow information in a dashboard reducing s. $64,500Yearly$387,000Germany - Efficiencies achieved by a) eliminating spreadsheets, documents, s. b) reducing manual errors while editing spreadsheet c) centralizing workflow information in a dashboard reducing s. $54,480Yearly$326,880Central Europe - Efficiencies achieved by a) eliminating spreadsheets, documents, s. b) reducing manual errors while editing spreadsheet c) centralizing workflow information in a dashboard reducing s. Grand Total $1,318,021 $7,956,848

Intangible Benefits 12 CategoryDescription Business Benefits Revenue Improved ratings for linear programming resulting from increased non-linear exposure. Ensure that our subscriber fees in carriage deals are not impacted by providing the ability to efficiently and quickly schedule content for digital platforms Operational Efficiencies Less effort and more accuracy when scheduling content for non- linear platforms Risk Mitigation Ensuring that we meet our obligations with direct distribution platforms by providing reports on scheduled content on 3 rd party platforms Strategic Benefits Provide better negotiation leverage in Operator deals by allowing us the ability to scale content to more non-linear platforms that are tethered to linear channels. Enhance the value for our customers by getting content to the non-linear platforms within 1-7 days IT Benefits Strategic Benefits Establishes a centralized global scheduling system that can be utilized by other LOB’s.

Competitive Analysis Other studios have implemented non-linear scheduling systems to compete in the digital landscape – ABC Television, AMC Networks (US), Vubiquity (US), BT Vision (UK), Channel 5 (UK), Orange (France) and Telefónica (Spain) have chosen BeBanjo Nine non-linear vendor solutions were analyzed to identify a non-linear scheduling system that would work for Television Networks – The proposed solution is with vendor BeBanjo who are a major leader in the non-linear scheduling space – BeBanjo is a cloud based solution and has an existing relationship with Mediamorph that we already leverage. – We will build Product, Rights and Schedule integrations with BeBanjo through a centralized operational data store (ODS) 13

Timeline 14 November 2014: Project start March 2015 – Phase 1 Go live August 2015 – Crackle, Western Europe and Central Europe Live

APPENDIX

Crackle volume projection 16 Asset volume is projected to increase dramatically for both Licensed and Original Content in U.S. & Canada U.S. (Based on MRP 2014) Fiscal Year Budget# of AssetsAnnual Increase of # of Assets (%) FY15$8MM 18,455 FY16 (estimated)$11.5MM 26,52944% FY17 (estimated)$13.5MM 31,14317% FY18 (estimated)$20MM 46,13848% Canada (Based on MRP 2014) Fiscal Year Budget# of AssetsAnnual Increase of # of Assets (%) FY15$800k25,429 FY16 (estimated)$2MM 63,573x2.5 FY17 (estimated)$2.6MM 82,64430% FY18 (estimated)$3.5MM 111,25235%

Crackle Revenue Projection 17