1. From Primetime to Lifetime Dick Gerbrands

2. 2 Content provider’s situation Content Provider sales & development Internet Mobile TV Other Operators NL Unilever Heineken Ahold Operators NL Operators NL Operators NL Operators NL Billing? Capacity? Connectivity? Uniformity?

3. 3 Traditional Value-Chain for content Writer Publisher Whole-Sale Bookshop Reader

4. 4 Mobile Value-Chain for content Content owner Content aggregator MASP Operator Consumer

5. 5 MASP Model: Content Provider’s situation Content Provider sales & development Internet Mobile TV Other Operators NL Unilever MASP Heineken Ahold Operators NL Operators NL Operators NL Operators NL

6. 6 The mobile value chain… Content Aggregator Boxes BSC Cells Content Aggregator MASP telecom operatoruser sms voice

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8. 8 Endemol’s situation

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13. 13 Basic Business model concept MASP Goal: Increase $ and %S through the values input of MASP controlled by own business goals/plans MASP: Mobile Application Service Provider: facilitates fast, innovative and cost effective in the mobile service provisioning for MASP Endemol: Leader in content; CMG: Leader in mobile data service solutions Endemol CMG Carrier End- user B2C (Brand owner) $ %$ %$ - ESP unit price% (%$ - ESP unit price) Content related to m-service Facilitating m-service technology B2C may buy or have own m-service infrastructure = user rights= revenue streams Back to back link in risk and payment taking

14. 14 P&L Example

15. 15 Network Equipment Application provider Device Portal Network operator Application Developer Virtual Operator Content Provider Enabling Technology Consumer Business End-User Mobile Data Value Web Reasons to partner

16. 16 Cell Broadcast (CBS) (1) Cell broadcast is broadcasting through the mobile telephone. An SMS-like message to be send in real-time to all users, who have activated the channel. Various (info) channels can be activated and messages can vary by the region (up to the cell level). Complications: -CBS is in principal a cost: revenues are to be generated through broadcast time charging or return paths as SMS, voice response or other venues (see attachment for business model & expected revenues) -Education: Informing the end-user about the service (content) and the required telephone settings for service access -Mobile operators are still struggling with the commercial model From the content perspective opportunities seem present, but given small user base, we need a paying client. In Germany, France and Portugal the operators have commercial CB operations. Endemol/CMG could scan opportunities there.

17. 17 Cell Broadcast (CBS) (2) Some operators were visited Main outcome: -All agreed on the before mentioned business model, but have not yet communicated how they intend to commercialise CBS. They are defining the strategy to manage the CBS key complications and to maximise the indirect revenue. -Agree that services should be present at all operators in order to have real impact on the market. They have seen this in Big Brother (Loft Story) SMS, where the operators all had the service. -Paying for content is not an established concept. Conclusions: -Opportunity is present, but Endemol needs to get local commitment from it’s local operations.

18. 18 Business assessment of Cell Broadcast Gross estimates for France 12 mil. Mobile subscribers CBS users: 2002 1-3% and in 2005 15-25% Soft and heavy users (85% : 15%) 1-2 advertising messages/week soft users; 1-2 adv.messages to heavy users -15-25% of CBS messages being read;heavy users 15% more -cost per read advertisement message (at least) 0,03 euro 2-3 reaction type messages-soft users; 5-9 reaction messages to heavy users -20-30% of CBS messages being read; heavy users 15% more -reaction on 4-10% of read messages, continues dialogue 1,25-2,5 times -revenue share on standard and premium priced SMS And voice response (+ other applicable services)

19. 19 Business assessment of Cell Broadcast Gross estimates (first year) (4 th year) Revenues:2002 2005 Revenue from advertisement 0,1 1,7mil Euro Revenue from SMS triggers 1,51 1,5mil Euro Average spending per m-subscriber / month: per CBS user 0,49 0,38Euro increase of ARPU (overall market) 0,01 0,08Euro Annual costs: (initial investment depreciation 3Y, operations, maintenance, support, content) Start with few channels,2.0-2.54-5 mil Euro increase over the year; includes fees to third parties for communication & bus.development.

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