NON-LINEAR SCHEDULING 23 October 2014

Setting the Stage 2 To Launch Stand-Alone Online Service in 2015” – Deadline.com Oct 15, 2014 “This is the most exciting inflection point domestically and internationally in the history of HBO.” John Plepler, HBO Chairman & CEO “ Announces Its Own Live TV and Streaming Service” – Techcrunch.com - Oct 16, 2014 “ launches VoD service for Asian Movies” – Variety.com, Sept 11, 2014 “ now in France, Germany, Austria, Switzerland, Belgium and Luxembourg.” Press Release Sept 18, 2014 Latin American Channels Launches Online VOD Service” – Deadline.com Oct 15, 2014 This is why we are talking about Non-Linear Scheduling today.

Executive Summary – Business Problem The Networks group has experienced significant growth over the past 15 years with 125 channel feeds in 159 countries – Manual or outsourced scheduling for non-linear component Non-Linear agreements are expanding in scope and volume – Carriage agreements requiring catch up content – Crackle asset volume growing 35% annually – New SVOD offerings for Digital Networks – Not having catch up content will erode our brand. Consumers shifting rapidly to OTT / Online viewing vs. Pay TV – HBO Go, CBS All Access, ESPN NBA Service, Netflix in Germany – Non-Linear is a primary platform, not just tethered to linear. Content is only available provided we can schedule it – Multiple platforms, providers – Network (linear) tether for catch-up 3

Executive Summary – Business Problem Lack of a Non-Linear scheduling system leads to increased… – Manual tracking of thousands of assets – Double-checking to catch common errors – Effort and people to manage schedules and assets – Errors impacting delivery of content – Missed dates on platform deliveries – Risk of not achieving business goals Also resulted in lost revenue for content – Rights exist, content unexploited on a valid platform – Content not made available on time – Agreements not pursued due to manual overhead 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 4

Proposed Solution A global non-linear scheduling system will allow us to – Update schedules for diverse business needs: on-net content, distributed content, events, promotional elements – Update workflow tracking for multiple teams to traffic increased content volumes for multiple regions – Update, track and centralize metadata and art asset management – 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 5

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 Google Sheet 7 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 8 Depreciation: FY16FY17FY18FY19FY20FY21 $80,523$322,094 $214,729 Ongoing Costs: $650,400

Benefits 9 CategoryBenefitTiming 5-Year BenefitDescription Revenue Enhancement $282,400Yearly$1,815,304 About 200K in lost revenue in direct distribution deals for Crackle. We can get an additional 1-2 deals every year with a system. Approximately $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 $267,840Yearly$2,302,639 Crackle’s device parting and day parting initiatives requires them to curate additional hours of content and schedule content on device specific platforms. Direct delivery requires accounts for increased volumes that must be packaged and worked through Operations team. Manual tracking of workflows requires additional labor that would be saved with a system in place. Operational Efficiencies $767,781Yearly$3,838,905 Crackle US, Crackle LATAM, Germany, Central 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 $1,318,021Yearly$7,956,848

Intangible Benefits 10 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 Networks, 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) 11

Timeline 12 November 2014: Project start March 2015 – Phase 1 Go live August 2015 – Crackle, Western Europe and Central Europe Live

APPENDIX

Volume projection 14 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%

Revenue Projection 15 FY15 and beyond includes ad sales revenue from Playstation

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 platform, business users have built a variety of processes… 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

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 18 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