Creating a New Age of Video Entertainment Telecom at NAB April 15, 2008

New entertainment services company 1 st Complete next generation TV offering –Comprehensive content lineup, including traditional TV, internet and movies –Seamless integration of live, stored, downloadable and internet video –Centered on on-demand viewing –Personalized and tailored to the individual viewer Distributed through broadband service providers and national retailers What is Building B?

Major Disruptions in the TV Industry: A Catalyst for Consumer Change 70 million consumers will make Digital TV choice over the next 4 years DVR HDTV TriplePlay DigitalTransition InternetContent MobileVideo

Inflexible bundles Too expensive Difficulty making everything work together Inconvenient start times Movie selection (on-demand) Can’t find something of interest to watch Poor navigation and usability The picture quality does not meet my expectations Complaints Include High Prices, Inflexible Bundles and a Poor Experience Value is critical Opportunity to improve the experience Simplicity is key Upgrade to HD

Current Approaches are Not Working Broadband is challenged to deliver HD television A pile of special purpose boxes ‒ Television STB / DVR ‒ Movie boxes ‒ Internet video boxes Legacy systems are difficult to upgrade

Upgrading Existing Infrastrucure is Prohibitively Expensive IP backbone providers will not be able to economically light the existing and new fiber necessary to deliver broad based TV access at reasonable consumer prices Telecom Predictions Report, Delloite and Touche Consulting

The Key: Align the Network with Content Viewership Source: Nielsen HH ratings TV season Premium Content & Movies % of TV Viewing ABC, NBC, CBS, FOX, Univision, Telemundo, My Network, CW, Telefutura, other independents 53% 0% 34% Leading Networks Niche Networks Broadcast Networks Short-Tail (87% of TV viewing) Long-Tail 7% Internet Video

Video Delivery Cost Optimized by Combining Broadcast and Broadband Viewers UnicastPrivate BroadcastBroadcast Group Delivery Deliver to All Direct Least Expensive Most Expensive Digital TV SpectrumBroadband

Video Imperatives for the Broadband Industry Differentiated television offering A complete content lineup (including HD) Works in America’s homes today—with existing broadband Limited infrastructure investment Enhanced brand and customer relationships

Simple Self-Install Compelling Pricing Relevant Advertising Wireless Personalization and Intelligence Time Shifting and On-Demand Comprehensive Content Breakthrough Video Entertainment Solution

Unlocking the Next Generation of Television Low entry cost Simple out of the box setup Tailored to individual viewer's routines and preferences High Definition and On-Demand Community and Web Features Broadcast networks and local channels Cable networks Studio library channels PPV movies and events Internet content Delivered straight to the living room television No need for a PC Works with any broadband service Accessible Comprehensive Content Works in Homes Today Personalized Experience Breakthrough video entertainment service to be launched in 2008

The Industry Has an Opportunity to Capitalize on a New Chapter of Consumer Video Content Providers Broadband Service Providers Advertisers Broadcasters Broadcasters: Receive returns on their digital investment Revitalize their business with targeted and interactive ads Advertisers: Deliver higher value advertising on television Improve the effectiveness of advertising Broadband Service Providers: Offer a differentiated triple play Avoid expensive infrastructure Promote their brand Content Providers: Extend content to new platforms Leverage brand in an on-demand world

Building B is A Turn-key Video Solution for Broadband Service Providers  Differentiated video services  High-capacity wireless network for content delivery += Telco's and ISP’s  DSL and 4G Wireless  Voice & data services  Marketing & distribution Triple Play

Building B Partnership Model Partnership Roles Co-Branded Customer Relationship Bundling and Pricing Customer Acquisition Set-top-box ownership Network & content operations 1 st and 2 nd tier customer support 3 rd tier technical support & Partner

The Time is Now Major partnerships complete ‒ Broadband providers ‒ Content providers ‒ Advertisers Created nationwide content distribution network ‒ Broadcast partners in initial launch markets ‒ Infrastructure Partners ‒ Announced with Harris Corporation and Sun Microsystems Commencing trials for commercial pilot

Creating a New Age of Video Entertainment Telecom at NAB April 15, 2008