CONFIDENTIAL Online Video Creation Applications page 1

page 2 Need for Video Creation Applications Growth in popularity of user generated video is driving demand for tools to easily create, edit and share original video content Interest is also growing in combining branded content and licensed music with user generated videos Multiple companies are introducing video creation tools, some as online applications, some as downloadable software –Eyespot, Jumpcut, MotionBox and Fleapit do not require a client download, while VideoEgg and Grouper do –Downloadable applications offer benefits of coding to flash on the desktop, saving users from uploading large files to the service –Online applications avoid the need for a download, enabling users to begins video editing immediately The leading online video creation companies are still young and have received funding –Eyespot has received seed funding from Express Ventures –JumpCut has seed funding by Westlake Venture Partners and Great Oaks Capital –MotionBox received Series A led by Itochu Ventures As video creation offerings become more robust, they will increase the base of available content on Grouper –Pureplay video creation tools require partners like Grouper for video sharing and community

page 3 Create: Edit & Mix The Online Video Value Chain: Current Focus of Leading Services Share Watch

page 4 Slick interface feels more like an application than a web page Scales videos to a larger size than other sites Videos don't autoplay and there is no indication of what portion of the video has already been downloaded Best online editing options Operates on a time-line and provides a large library of pro-level features, making it as functional as typical desktop editors Splice footage, reorder the shots, add music, photos, transitions, even effects—like iMovie in an online interface. to a friend, embed in a web page (worked flawlessly in Wordpress). Bright and colorful interfact Tagging, forums, groups Very limited community features Simple editor enabling trimming (beginning and end), reordering of clips on a frame level basis, addition of music and photos Send video created to a phone Post to a group, invite a friend to the service (but not directly to your clip). Allows tagging of video files Includes deep tagging of parts of video files Viewers are later able to skip to the identified clip by clicking on the tag Breaks video into frames Users can trim the file extensively, including linking several video files and removing any portion(s) of files Mashups with other users’ public or shared videos can also be created Sharing Through s, blogs etc Full range of features include community, sharing, posting, blogging and editing Also features sell-through and rental of studio, as well as independently filmed and produced clips Movies can be “remixed” using online editing tools Allows users to grab any (approved and licensed) movie from the site and remix it to create personalized movies Users can create their own online TV channels by adding clips, videos, and movies they find on the site Users can blog about videos, review them and generally act as a mini- programming executive Full functionality, requires an application download Windows Media Player-based (converts other formats) Enables rating, tagging, groups, and RSS feeds Enables users to create mash-ups of their videos and photos, set to music ("groovies"). Supports posting directly to MySpace, Friendster, eBay, WordPress, and others Enables downlaoding to hard drive, iPod, and PSP Overview of Mash-up Applications Interface Editing Sharing