1. Ad Sales Strategy for Digital Networks
[NEW]
Opportunities
Challenges
Objectives
Capture new advertising dollars as they flow into the digital space
Attract advertisers seeking quality content and a more controlled environment
Use portfolio of distinct platforms to deliver greater value (hyper-targeting and enhanced messaging)
Lack of consistency between distribution partners (technologies, ad servers, etc.)
No breakout form of advertising creative
Lack of scale and quality content is slowing the adoption of advertising against online video
Establish a single ad-serving platform to improve operational performance
Create consistent types of ad units and measurements to standardize sales and reporting
Integrate networks and leverage content to deliver desired audience and experience to advertisers

2. Key Learnings and Response Early Success w/ Crackle Model
Crackle Revenue Plan
[NEW]
Key Learnings and Response
Market did not develop as quickly as expected; advertisers looking for differentiated, controlled experiences
Modified model to focus on higher quality, prosumer content
Executed necessary operational deals (24/7 for ad serving)
Early Success w/ Crackle Model
Integrated with 4 international rep partners covering a large percentage of monetizable inventory
Secured 5 Blue-chip advertisers: Pepsi, Honda, Sony, Ford & Epson
Additional $2MM in pipeline
Emphasize Crackle’s higher quality content and controlled environment to attract top advertisers
Focus on sponsorships will continuing to modify ad units and targeting tools to meet advertiser needs
Drive additional revenue through international rep firms and using 24/7 to compete with video ad networks
Key Strategy for MRP

3. Overview of Ad Sales Environment
[NEW]
Traditional TV marketplace continues to evolve
Upfronts bounce back after two years of declines; exhibiting signs of a strong scatter marketplace
Television Ratings currency change (C3 Ratings); reformatted commercial placement in order to maximize performance and ad dollars
Total rating points in marketplace down due to continued fragmentation and new currency; challenging for programming but makes television more valuable for ad sales
Other challenges to our business persist
Satellite space (???)
:10 representation (need to go program by program – like :30s)
SPTAS continues to look for opportunities to add to our television portfolio
Strength of cabling programming positions us in high-growth area
HD advertising marketplace still growing
Leverage our leadership in digital (e.g., bundling)
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4. 3rd Party Represent-ation
SPT’s Ad Sales Businesses Will Continue to Grow
[NEW]
Syndication
Hold back inventory and maximize dollars with higher scatter pricing
Bring on new advertisers, leveraging digital assets and new opp.
Developing custom metrics with Nielsen to acquire new ad partners
The :10 Solution
Expand client list with traditional :30 buyers
New program representation opportunities (Crosswords)
Create Upfront marketplace for :10 business
3rd Party Represent-ation
Continue to build Hi-Def ad sales with MOJO, seek new HD nets
Focusing on Cable: Tennis Channel/Trio, Gospel Music Channel
MRP includes $10MM in 07/08 sales and $20MM in annual sales thereafter
Digital
Create digital sales verticals: MUSIC, ENTERTAINMENT and GAMES
Position MINISODES as digital network across all platforms
Establish SPTAS as SPE’s digital ad sales group – currently representing SonyBMG, talking with Playstation
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