1. Gabriel Dusil Chief Marketing & Corporate Strategy Officer Visual Unity Global cz.linkedin.com/in/gabrieldusil gdusil.wordpress.com gabriel.dusil@visualunity.com

2. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  2 View this video presentation from our Digital Video Forum ’13, or download the native PowerPoint slides, here:here http://gdusil.wordpress.com/2014/01/27/entertainment-vs-the-internet- turning-threats-into-opportunitieshttp://gdusil.wordpress.com/2014/01/27/entertainment-vs-the-internet- turning-threats-into-opportunities http://gdusil.wordpress.com/ Additional presentations, white papers, and winning solutions can be found on our corporate web-site, here:here http://www.visualunity.com/en/resources/

3. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  3 Sources: *Cisco, **Informa, ***ARM, by 2016

4. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  4 Front Lines Subscriber Ownership Industry Relevance Revenue Protection Computing EntertainmentCommunication

5. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  5 Internet Broadcast Services TV Cloud Services STBSTB router “Over the Top” PC Tablet mobile

6. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  6 Sources: Sandvine, Cisco, GCI, Internet World Stats Netflix penetration numbers are for the USA only. Penetration Opportunity 

7. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  7 Video will be  70% of Global Traffic by 2016  11.0 billion HD movies* Cisco - Visual Networking Index, Forecast & Methodology ‘11–’16 * Using an average of 6GB for a 1080p movie

8. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  8 Mobile Telephony Interaction 3 apps: voice, text, contacts DistributionOperator Mobile Operator Differentiation High (speed & performance) Handset Differentiation Reliability & Quality of Service PurchasingPhone-centric Mobile Lifestyle 1+ million apps: all needs Internet Low (price & consumption) User Experience, Efficiency & Flexibility App-centric

9. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  9 Envisional - An Estimate of Infringing Use of the Internet (11.Jan)

10. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  10 Napster Shuts down @26m users 20002001200220032004200520062007200820092010 2011 20121999 BitTorrent Inc. announces 150m active users (Jan ‘12), growing at 50% per year Napster KaZaA Megaupload BitTorrent KaZaA peaks @34m users Megaupload shuts down @180m users

11. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  11 USA 2412345670 Own Rent Pay TV TV months Cinema International VoD Int’l Head-end Long-tail Revenue

12. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  12 Social Apps Broadcast

13. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  13 Computing EntertainmentCommunication

14. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  14

15. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  15

16. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  16 OTT - 37b US$ by 2017 CAGR = Compounded Annual Growth Rate TV & Video market estimated at $395b globally, by 2017

17. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  17 Tier 1 National Broadcasters Tier 2 Regional Broadcasters & Affiliates Content Aggregators Telco & MSO (i.e. Cable) Tier 3 Corporations & Government Education & House of Worship etc.

18. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  18 USA Europe, Canada, Asia  18-24 months behind USA Emerging Markets  36-48 mths behind USA

19. cz.linkedin.com/in/gabrieldusil gdusil.wordpress.com gabriel.dusil@visualunity.com

20. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  20 The entertainment landscape has changed more in the last decade, than in the 60+ years of broadcast. Much of this disruption can be attributed to the growth of the internet. From this infrastructure, several battles are raging under the feet of consumers; Broadcast has a new adversary called OTT (Over the Top Video); ISPs are struggling to keep up with bandwidth demands of video; mobile infrastructures have also witnessed significant changes in consumer behavior as applications overshadow handset features. This presentation explores the various battles taking place between the communication, computing and entertainment industries. The global landscape in subscriber behavior continues to change rapidly, and OTT has the potential to be at the center of it all.

21. ©2013  gabriel@dusil.com  gdusil.wordpress.com Page  21 BitTorrent, Blu-Ray, Broadcast, Connected TV, Copyright Infringement, Digital Millennium Copyright Act, Digital Rights, Digital Video, DMCA, DRM, File Sharing, Gabriel Dusil, Internet Piracy, Internet Video, KaZaA, Linear Broadcast, Linear TV, Megaupload, Megauploader, Motion Picture Association of America, MPAA, Multi-screen, Multiscreen, Napster, New Media, Online Video, Online Video Platform, OTT, Over the Top Content, OVP, P2P, Peer to Peer, piracy, Piratez, PlayReady DRM, Recording Industry Association of America, RIAA, Search & Discovery, Search and Discovery, second screen, Smart TV, Social TV, TV Everywhere, Visual Unity