1. Digital Update Digital Television = Increased Audience Satisfaction Richard Doherty, Director The Envisioneering Group October 13, 1999 rdoherty@envisioneering.net

2. What is The Envisioneering Group? Largest independent DTV contract test lab Largest independent DTV contract test lab Focus on early adopter, early majority 1:1 research Focus on early adopter, early majority 1:1 research Assist clients to transition interactive DTV technologies to market Assist clients to transition interactive DTV technologies to market

3. Digital TV Update Trends Broadcast Audiences increasingly distracted Broadcast Audiences increasingly distracted Internet fractional eyeballs highly overrated, overcounted Internet fractional eyeballs highly overrated, overcounted Digital Television comes to the rescue! Digital Television comes to the rescue!

4. Digital TV Update Trends Good News: Network Broadcasters will reach 50% of US Homes Fall ‘99 Good News: Network Broadcasters will reach 50% of US Homes Fall ‘99 Bad News: Digital TV Tuner audience is smaller than Levittown, NY Bad News: Digital TV Tuner audience is smaller than Levittown, NY Potential of 250K this year Potential of 250K this year

5. Digital TV Update Trends Good News: Much more primetime HDTV fare Good News: Much more primetime HDTV fare Bad News: Most primetime commercials drop to SDTV Bad News: Most primetime commercials drop to SDTV Bad News: Full Digital TV interactivity is years away Bad News: Full Digital TV interactivity is years away

6. Digital TV Update Trends Good News: Digitally enhanced Analog TV is here, growing Good News: Digitally enhanced Analog TV is here, growing Good News: Standards slowly maturing over hype Good News: Standards slowly maturing over hype Consumers increasingly want Personalized TV!?! Consumers increasingly want Personalized TV!?!

7. Digital TV Update Trends Good News: Digital TV households tend to be advertisers’ dream homes Good News: Digital TV households tend to be advertisers’ dream homes HDTV makes primetime an engaging event again HDTV makes primetime an engaging event again HD families, guests recall HDTV shows, ads better HD families, guests recall HDTV shows, ads better

8. Digital TV Update Trends Good News: Gen Y viewers expect, actually anticipate interactivity Good News: Gen Y viewers expect, actually anticipate interactivity Gen Y spending is an attractive psychographic Gen Y spending is an attractive psychographic PC, DTV, handheld or Enhanced TV, they wait... PC, DTV, handheld or Enhanced TV, they wait...

9. Digital TV Update Trends Why? Events are Live. Few VCRs, no PVRs (yet...) Why? Events are Live. Few VCRs, no PVRs (yet...) HDTV delivers twice the action, detail of DVD, six times more than NTSC HDTV delivers twice the action, detail of DVD, six times more than NTSC HD early adopters 2x likely to show off their “new toy” HD early adopters 2x likely to show off their “new toy”

10. Internet Audience Addressability Is Forever Changing Television!

11. Digitally enhanced TV metadata streams support full credit for signal carriage, viewership, purchase intent, consumer sale

12. FT 100 6199.4 CAC 40 4721.93 DAX 30 Geneva My Favorites TV Tonight News Finance Sports More Info Targeted Ad e-Commerce Television Personal TickerLocal Weather Individual Preferences The Digitally-Enhanced TV of Tomorrow

13. Enhanced Television ATVEF- Advanced Television Enhancement Forum ATVEF- Advanced Television Enhancement Forum Open industry group created content spec for enhancing TV using Internet standards Open industry group created content spec for enhancing TV using Internet standards More than 80 licensees, from all key industry groups More than 80 licensees, from all key industry groups

14. Enhanced Television WebTV, Wink, TiVo, TAK, etc. WebTV, Wink, TiVo, TAK, etc. Scaleable content audits, recognizes all contributions Scaleable content audits, recognizes all contributions Operating today! (NBCi, PBS) as digitally enhanced analog, soon as interactive digital Operating today! (NBCi, PBS) as digitally enhanced analog, soon as interactive digital

15. Digitally Enhanced TV Popular CPU Enhanced Open Source OS, Browser IP, ATVEF, HTML, MHP, Flash, MP3 Enhanced Television Programming DVB or Open Cable ATSC

16. Digitally Enhanced TV Popular CPU Enhanced Open Source OS, Browser (Your html Message Here) Enhanced Television Programming DVB or Open Cable ATSC

17. Digitally Enhanced TV Popular CPU Enhanced Linux OS, Mozilla Browser (Your html Message Here) Enhanced Television Programming DVB or Open Cable ATSC

18. Digital Television The Multicast Opportunity ABC Network transmits HD, Multiple SD and Data services ABC Network transmits HD, Multiple SD and Data services PBS Multiplex supplies children, seniors, adventure, news and documentary all at once PBS Multiplex supplies children, seniors, adventure, news and documentary all at once Sub $300 PC cards will lead to sub $200 set tops Sub $300 PC cards will lead to sub $200 set tops

19. ABC Multiplex: WTNH-DT Network Feed 24 hr News/Weather Data Slate

20. Summary Digital Television is a journey, more than a finite destination Digital Television is a journey, more than a finite destination The best entertainment & ads will wed linear programming with web personalization The best entertainment & ads will wed linear programming with web personalization Digitally enhanced analog will provide returns ahead of DTV Digitally enhanced analog will provide returns ahead of DTV Early embracers benefit longest Early embracers benefit longest

21. Calls to Action Let broadcasters, Digital TV & set top makers know your targeted digital consumer needs Let broadcasters, Digital TV & set top makers know your targeted digital consumer needs Prepare new psychographic & demographic models to better measure new DTV audiences Prepare new psychographic & demographic models to better measure new DTV audiences Prepare to reap the benefits of highly targeted viewership! Prepare to reap the benefits of highly targeted viewership!

22. Thank you! Questions? Questions? Rdoherty@envisioneering.net Rdoherty@envisioneering.net