1. Information Systems workshop Is TV as we know it gone? Role: CBS Team 1: Cristian, David G., Fabio B., Fabio P., Manuel, Roseane Professors Sandra Sieber and Javier Zamora

2. CBS Today Tradicional bussines Primary Broadcast Networks: CBS corp. is the biggest TV station group with 27 stations reaching 35M households Revenues Advertising sales on stations License fees from cable operators and affiliate stations Production The content I produced mainly by 3 rd studios and Production companies CBS Productions: Own production of films and series (CSI series, Wild Wild West,..) Program schedule based on Shows, Series, Films, Sports and News. (high % of live events) Online Strategy Open non exclusive model: Pushing content to 300 different sites including CBS.com Offers free advertisings-supported streaming Paid Downloads in iTunes; Unbox and Xbox Content related Shop at CBS.com Aliances CW (CBS+TimeWarner) – Broadcast network Comcast – Video on Demand

3. ProductionProgrammingDistribution Content distribution chain and revenue models: up to a few years ago… TV networks Cable and satellite operators Studios and production companies Cable networks Other content providers TV affiliated stations Eg.: CBS Studios, Warner Bros, Universal Licensing/ syndication fees % of advertising rev Products Eg.: NBA, NFL, shows Licencing fees Products Eg.: CBS (35 MM*), NBC, ABC, FOX, CW Advertisement (upfront + scatter markets) Eg.:Showtime (CBS), Discovery, ESPN Advertisement Fees from cable/ satellite operators Eg.: Comcast (24 MM*), TW Cable (13 MM*), DirecTV User’s monthly fees for cable or combo (cable + internet + telephone) * 2009 Figures CBS Corp.

4. ProductionProgrammingDistribution The industry started to change some years ago, challenging CBS TV networks Cable and satellite operators Studios and production companies Cable networks Other content providers TV affiliated stations * 2009 Figures CBS Corp. Online TV through Internet, mobile, tablet,… YouTube Netflix Own websites Hulu TV Everywhere

5. Future Trends Online TV will be consolidated, fostered by better internet access, and will offer new capabilities thanks to digital density The Cloud will allow digital content to be available in several platforms, and players will be able to store and process a huge volume of content online. Multiplatform: Mobile internet will make possible online TV through mobile, tablets, watches, glasses, Car TV, and maybe other new platforms… Thanks to Big Data analysis and user interaction TV advertising will change: It will be targeted to each user. It will appear recommendation engines TV networks will be able not only to advertise, but also to directly sell!! Advertising Integration Social media will allow people a higher interaction with the content especially in live shows.

6. CBS position in the online TV in 2016 In 2016 these changes will be underway budgets in online TV advertising increasing exponentially We will have to maintain for some years the old station infrastructure but without doing new investment Value proposition for CBS network: o For fans:  Good programs available online, everywhere, for little or no additional cost  Innovate with new entertainment experiences and user interaction  Recommendations about the content we guess they would like  Less advertising but more interesting o For advertisers:  Maintain own advertisement revenues (main stream for CBS) and develop targeted advertising based on database from users  Develop the integration of advertising with the content  Integrate a maketplace for the advertising: Compulsive buying!!  Better ROI with less investment

7. Tangible options for CBS Allow several platforms (mobile, Xbox…)? Allow live content to be streamed? Allow CBS to manage own adv. revenues? Allow data gathering and targeted adv.? Other networks onboard ? (growth may be limited if not) Bargaining power for CBS network? Own and partner websites (AOL...) TV everywhere (through cable oper.) Hulu iTunes NetFlix Google as a partner (to be developed) Recommendations for CBS network: CBS to manage own advertisements revenues, data collection Take advantage of our alliances with Studios and advertisers to improve the advertising experience: advertising integration and recommendation engine Increase revenues with the commissions of the Marketplace Prioritize our own enhanced online channel and make it multiplatform Only license our platform in the case we can control the advertising process  ?    ? ?  ?  