Jefferies & Company, Inc.

Jefferies 3rd Annual Internet Conference

February 28, 2007

CONFIDENTIAL DRAFT

Member, SIPC

Panel III: Video Symposium

Panelists

Doug StevensonFounder and CEO

Panelists arerepresentative of themany facets of the videoopportunity

Media Technology Internet TV Large corporate and

SMEs Ad Networks

Keith RichmanFounder and CEO

David LiuManaging Director

Internet & Digital Media Group

Lou KernerCFO

Gus WarrenVP, Strategic Partnerships

1

Sector Snapshot

2

The Future of Video Entertainment?

3

What is the Video Market Opportunity?

118116115113111

0

40

80

120

160

2005 2006 2007 2008 2009

89108

123137 149

0

50

100

150

200

2005 2006 2007 2008 2009

(1) Source: Wallstreet Research, 2005. Includes paid-subscription and free (over-the-air) television households.(2) Source: eMarketer, November 2006. Online video viewer defined as an individual ages 3+ who downloads or streams video (content or advertising) at least once a month.(3) Source: FCC, Kagan Media Research, Company Reports, WPP Annual Report.(4) Source: eMarketer, November 2006.

US Television Households, 2005-2009E1

(millions)US Online Video Viewers, 2005-2009E2

(millions)

1.4% CAGR13.6% CAGR

US Television Advertising Revenue, 2005-2009E3 US Online Video Advertising Revenue, 2005-2009E4

($ millions)($ billions)

66 72 7582 87

0

20

40

60

80

100

2005 2006 2007 2008 2009

2000

1300

775410

2250

500

1000

1500

2000

2500

2005 2006 2007 2008 2009

8.5% CAGR

72.7% CAGR

4

49% 47%

33%

26%21% 20%

11%9%

News Clips Music Videos Movie Trailers TV Shows User Generated Videos Movies Sports Clips Other

How Do We Find Video Today? What Do We Watch?

100%

53%

35%30% 28%

23% 23%17% 15%13% 16%

9% 11% 8% 9% 8% 5% 4%

33%30%20% 22% 23%

18% 16%11% 10%

From search engineresults

Recommendationsfrom friends

From a portal TV or moviepreviews/trailers

Directly from onlinevideo sites

From a link in an e-mailnewsletter

From ad on TV, radio,or print

From print article From a blog

Video Searchers

Video Users

Online Users

(1) Source: Jupiter Research, November 2006.(2) Source: InsightExpress for Advertising.com, January 2007.

From Search Engine Results

Recommendations From Friends

From a Portal

TV or Movie Previews/Tra

ilers

Directly From Online Video Sites

From a Link in an E-mail Newsletter

From Ads on TV, Radio,

Or Print

From Print Article

From a Blog

Methods Of Online Video Discovery1

Video Content Viewed Online2

News Clips Music Videos

Movie Trailers

TV Shows User Generated

Videos

Movies Sports Clips Other

5

Who are the Online Video Media Players?

(1) comScore Media Metrix, February 2007.

0

5

10

15

20

25

30

35

40

45

50

55

Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06

Google Network

MySpace

Yahoo Network

Time Warner Network

Viacom Network

MSN Network

Disney Online

Lycos

ESPN

IMEEM

Total Unique Video Streamers – July 2006 to December 20061

(millions)

6

Meet the Panelists

7

Dave’s Top Ten

8

Dave’s Top Ten

6. Agree or disagree? “Content is king!” “Content should be free!” “User Generated Content is trash!”

7. Mobile. Opportunity or money pit?

8. What will be the advertising unit for video?

9. Video can be viewed free with ads (network, online), subscription (cable, satellite), and a la carte (pay-per-view). What’s the best model?

10. What will limit growth in online video? Bandwidth? Devices? Content? Distribution? Search and Discovery Tools?

1920s

1950s

1940s

9

Dave’s Top Ten (Cont.)

1980s

2000s

Beyond?

1. If you could LONG or SHORT any stock to exploit Video 2.0 what would it be?

2. If you could start ANY Internet based business in 2007 what would it be?

3. Who loses the most if you gain? Network TV? Radio? Cable? Newspapers? No one!?

4. What is your biggest competitive threat? What are the big Internet companies doing? Worried?

5. Overpaid or underpaid? Sony buying Grouper for $65 million? News Corp buying MySpace for $0.6 billion? Google buying Youtube for $1.7 billion?

10

Appendix

11

8

15

22

28

37

0

5

10

15

20

25

30

35

40

2003 2004 2005 2006 2007

Online Video – Hot or Not?

(1) Source: Accustream iMedia Research.

Online Video Has Tremendous MassAppeal Overwhelming abundance of online video content While YouTube and MySpace Video have accumulated massive collections, they only encompass a portion of what is available Every Website either has or is considering video offering

Total Video Streams Served1

46.7% CAGR

(billions)

12

What is Tomorrow’s Advertising Unit?

Video Site Monetization Strategies

“Pre/post-roll” / In-Stream Ads – 15-30 sec video ads inserted before or after video “In-Page” / Rich Media Ads – Ads with video/audio or interactivity which run on any site Sponsorship – Superimposed logos, integrated content, branded channels or media

players Promotions – Unique contests such as user-generated commercials

(1) Source: JupiterResearch Internet Advertising Model, July 2006.

1.3 1.9 2.0 2.1 2.3 2.5 2.92.5 2.1 2.0 1.9 1.7 1.6 1.50.9 1.4 1.8 2.2 2.6 3.0

3.60.8

1.01.3

0.60.50.40.3

0.0

2.0

4.0

6.0

8.0

10.0

2005 2006 2007 2008 2009 2010 2011

Text Ads Static Image Rich Media (excluding video) Video

US Online Display Advertising Spending, 2005 to 20111

($ billions)

13

What are the Major Media Companies Doing?

Rapid Growth of Online Video Demonstrates Major Shift in Viewing Behavior

– Rise of UGC (aka User Generated Content)

– On-Demand Entertainment: work isn’t just for sleeping anymore!

Traditional Media Companies Trying to Use Online in Cost-Effective / Profitable Manner

– Pressuring free video-sharing sites to remove copyrighted material

– Launched branded sites allowing access to proprietary content

– iTunes and Wal-Mart.com Pay-Per-Download currently seen by major networks as safe online bet

“The Children Are Our Future”

– Despite tensions between old and new media, online sites access to the younger demo has necessitated partnerships and M&A

Partnerships

Google / YouTube ($1,650MM) Sony / Grouper ($65MM) Viacom / Atom ($200MM) Viacom / iFilm ($49MM) AOL / Truveo ($50MM)

Investments

Limelight Networks ($130MM) BrightCove ($60MM) Heavy ($20MM) CinemaNow ($20MM) MetaCafe ($15MM)

M&A

YouTube: NBC, CBS, Warner Joost: Viacom Akimbo: AT&T Veoh: Time Warner Blinkx: AOL, Dow Jones

14