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PwC

NBCU Digital Health Voice of the Advertiserand Competitive Landscape

October 10, 2006


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Digital HealthOctober 10, 2006

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Voice of the Advertiser

Needs and Challenges are Opportunities for NBCU

Shifting $ from Direct Response to Direct Relationship New value proposition = health-promoter or disease manager Reaching consumer with much greater, variety of health content Operating in regulated environment (FDA, Privacy, Distribution etc.)

Industry Industry Needs/Challenges

Pharmaceutical

Medical Devices

Consumer ProductGoods

Media Agencies

Technological/Mobile storage and access Creating new B-to-C relationships with consumers Engaging physicians as well as consumers Leveraging empowerment of consumer in health choices

Direct relationships with consumers creates need for content

Educating the consumer regarding health benefits of products Finding innovative channels in government, non-profit programs Competing with pharmaceuticals companies

Seeking more detailed information on consumers (profiles) Moving unique visitors to repeat visitors on health

management/services Communicating need for an integrated multi-platform plan


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Page 3

Voice of the Advertiser

A Diagnosis from Advertisers in Building a Health Portal

Key Themes

360 marketing approach

Deep and multi-faceted healthcontent

Creative Contextual Placement

Segment Consumers

Health/Social Networks, Mobileand Other Emerging Features

We want to engage the consumer in their relevant environments the

ability to offer a continuous message through the integration of variousplatforms could serve as a key differentiator.

NBCU has the potential of coming together as one entity and providing a

one-stop-shop to meet marketing needs.

I want to see a site that covers a specific disease beyond just the high-

level descriptionit should include alternative treatments and procedures,medications, support groups, etc. There is no one site out there that isdoing this right now.

One of our biggest challenges is shifting the image of our product from

purely hygienic to more health benefiting. One of our more successfulmulti-platform campaigns leveraged contextual placement to informconsumers of these health benefits.

There is such a huge fragmentation of media that it is difficult to determinehow to reach the target consumer.

There are very few websites that can effectively segment customers both

demographically and behaviorally.

A potential differentiator would be if NBCU can look towards social

networking tools, like blogs and forums, to engage the consumer.

We are looking towards other channels, like VOD, mobile advertising,

podcasts, TIVO, broadband video, etc. to connect with our customers.


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Page 4

Voice of the Advertiser NBCU Property Feedback

NBCU Property Strengths Areas of Improvement

General

Strong brand and quality

Highly credible source of general newinformation

Need to provide a cohesive offering

Need to improve appeal

iVillage

Highly desirable demographic

Focused plans

iVillage has a very proactive sales teamIhear issues directly from them instead of

finding out on my ownthey come preparedwith a potential solution.

Need deeper health content

Lack a community building environment

Pricey compared to other sites with higher traffic

Strength in demographic is not utilized effectively

Lack of flexibility and creativity

Need to better balance the level of importance placed onthe consumer versus the advertiser while maintaining

journalistic integrity could be less girly pink and focus on providing life-

stage content

I dont choose to advertise my other products oniVillage because it lacks a male audience.

Healthology &

Healthcentersonline

Targeted content

Developed channel with regard to service andcontent

Not as responsive

Not as creative

Not as flexible

The Patient Channel

Provides mechanism to reach out directly topatient

Demonstrate flexibility in content

Lack of measurable results (e.g., provide metrics on thenumber of patients that view The Patient Channel andactually use specific medication)

Need to improve reach; Only 1500 hospitals in network

Does not engage healthcare professional (i.e., motivatephysician to direct patient to the channel)

ROI has been difficult to gage

Newborn Offers capability to connect message at the

very beginning of the infant life stage No mechanism to obtain direct feedback from mothers


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Future Trends

One-stop consumer destination

Integration of health functionsand data online

Developing competency toserve the providers / businessmarket

Enhancing content and tools through acquisitions/partnerships.

Having tools that empower consumer choices about the quality and price.

Having content, tools, communities/social networks in one place.

Conducting health activities online (e.g., e-prescriptions, vitals monitoring,online doctors visit, etc.)

Collecting and integrating medical data to be displayed, shared and accessby multiple providers.

Developing competencies to offer technologies or services to providers orbusiness customers.

Developing online solutions designed to improve efficiencies and reduceoperational costs.

Extending B2B competencies to enhance B2C offerings.

Mobile devices and IPTV foraccess to health content,services

Using mobile access to stored content including health content, storedmedical images, insurance information, etc.

Mobile carriers having content and tools for wellness/fitness management.

Using IPTV/Digital Cable for storage of content, video conferencing.


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Page 7

Opportunities that Emerge

Consolidated online health portals offering:

Interactive, wide range and credible content

Advanced tools: comparison shopping,

personal health management

Transactions: e-prescription, online doctors

visit, insurance, etc

Customizable online health experience through

profiling and segmentation

Multi-level targeted marketing or advertising

Online access to personal electronic records Mobile access to stored medical/health

information and existing content

Private-label health portals for corporate users

and advertisers

Healthcare providers/administrators-owned

online health portals to manage:

Provider directory and physicians profile

Claims, billing, and patient records

Linking medical monitoring devices to other

portable devices and storing information online

Business to business e-commerce solutions

for physicians

Online health portal revenue opportunities can be segmented into two areas:

Business to Consumer Opportunities Business to Business Opportunities


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Page 8

Online Health Portal - Competitive Landscape

Who

Service Providers

Healthia (Vimo)

HealthGrades Prematics Place for Mom

Content Players

Established Microsoft Google *

Yahoo About Discovery NIH Mayo Clinic Merck Aetna WebMD

Relay Health

Sermo, Inc eDiets

Emerging Players: Waterfront Media Revolution LLC*

Real Age Choice Media Healthline

Future Trends

One stop shopdestination for consumer

Use of mobile devicesto access health content

Integration of healthfunctions and dataonline

Developing competencyto serve the providers /business market

Converging Player

Google*

Microsoft* Revolution Health Group* WebMD Aetna Mayo Clinic

Possible Partnerships

NBCU TV Stations GE Healthcare Sprint Rodale Press Conde Nast Harvard Medical RealAge

Cleveland Clinic Healia Choice Media Waterfront Media Aetna Relay Health Healthline

What How

Market trends indicate that the future of online health portal market will be aconvergence of service providers and content players.


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Page 9

Companies Todays Differentiation

WebMD

Revolution

The key players in the online health portal market are the ones that are convergingtheir portal to offer content and services

Online Health Portal Key Players

Microsoft Inc.

Google Inc

The biggest player in online health portal arena withstrong branded content.

Has a credible source of health content.

Paid subscription to electronic medical records.

Recently acquired Rediclinic

Lime.com online health portal with the most multi-platform offering (TV, radio, Internet, mobile,podcast).

Has extensive discussion boards, high traffic, andcredible content

Has the resources to invest and make itself aleading player in the industry within a short period

of time.

Developing and refining Google Co-op, -- avertical search capability

Benefits from the amount of traffic generated by itssearch engine branding.

Expectation of Tomorrow

Integration of business-to-consumer (B2C) andbusiness-to-business (B2B) services

Development of Spanish version of WebMD

Possible partnership with Google

Represents the next-generation health portalwith features and services

Offering products/services online and off-linethat cover the entire consumer life cycle.

Launching Windows Live Healthcare to include acombination of B2B and B2C services

A possible upgrade or restructuring of MSNHealth.

Extending reach to the healthcare sector acrossvarious platforms (i.e. hospitals, physicians,payors, Internet).

Google Scrapbook intends to integrate allaspects of healthcare and managing personalhealth online both for the B2B and B2Cmarkets.

Possible partnership with WebMD


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Page 10

Online Health Portal - Investment

Managing expectations for the long-term

Online health portal returns are long-term investmentsand will take several years to turn a profit.

WebMd Health Corp:

Annual Profit since it went public

2005 2004 2003 2002 2001

7.7M 6.4M (7.4M) (24.4M) (2,529M)

Revolution Health Group:

Steve Case has told investors that it could be up to10 years before Revolution health Group turns aprofit.

Online health portals are a long term investment, but recent momentum suggests this

will be a popular and high-profile segment for investment activities.

Investments range from $7M to $250M by individualcompanies.

New players are emerging:

Choice Media: $36.5M in late 2005

Healthia: $7.9M in 2005

Waterfront Media: $10M in past 2 years

Healthline Network: $17.5M over 5 years

Relay Health: $62.7M over 5.5 years

Revolution Health: $250 M over 2 years

Continuing rapid emergence of new players andconsolidation activity likely to occur in next 2-3 years.

Convergence between content and personal healthmanagement services.

Investment activities likely to center on specialized content,differentiating features (i.e. broadband video) and newservices.

Investment Activities Return on Investments


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Page 11

Online Health Portal - Summary

Competitive Landscape

Trends in media and technologies havehuge influence on the trends in theonline health portal

Leading players have started to position

themselves to embrace the new trends However, it will take them a while to be

able to fully integrate all their offerings

Strategic partnerships need to be madeto enable NBCU to develop an offeringthat can incorporate the future trends

NBCU

OnlineHealthPortal

Positioning

Voice of Advertiser

Advertisersare faced with their ownindustry challenges

However, common themes haveemerged that represents opportunities

for NBCU Advertisers observed a gap in the

market that NBCU can fill

Advertisers view that NBCU is wellpositioned to develop better offerings forthe online health portal market


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Appendix A Engagement Backgroundand Methodology


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Page 13

Objectives & Engagement Background

NBCU has engaged us to perform the following advisory services: assist you in

preparing, organizing and analyzing the development of NBCU's Digital Healthbusiness plan.

The primary objectives of this engagement include understanding and determining:

The market and critical success factors for NBCU's Digital Health initiative The products and services that may be offered through this initiative The current developments and future industry trends The value proposition of the initiative from the advertisers' perspectives Potential strategic internal and external partnerships to launch the initiative in the marketplace The changes within NBCU properties to consider to support this initiative

Scope:

Interviewing potential health related advertisers and/or agencies for an independent understanding

of their needs. Utilizing PwCs Healthcare and Pharmaceuticals industry Subject Matter Experts, research and

thought leadership to understand the opportunities and expectations for such an initiative. Performing a top-line analysis of the market place, including mature and emerging players of

healthcare content and technology providers, for potential partners, alliances and other trends.


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Page 14

Our Methodology

Methodology: Analyzed competitive landscape

Conducted voice of the advertiser

Competitive Landscape:

PwC reviewed over forty companies and

provided a deep dive analysis of thatcame from: NBCUs list of competitors PwC marketplace review and research PwC Pharmaceutical and Healthcare PwC Money Tree - listing of emerging

venture capital backed companies

Covering the following industries: Media and Entertainment Healthcare Technologies

Voice of the Advertiser Research:

PwC interviewed NBCUs current

advertisers from iVillage.com Healthology.com Healthcentersonline.com The New Born Channel The Patient Channel

That came from the following industries:

Pharmaceuticals Consumer Goods Products Medical Devices Media Agencies


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Page 17

Interview Questions

On Marketing and Industry Trends: What are some of the key issues and challenges currently facing your industry? What are some of the key trends in the marketing of products/services that you are seeing in the marketplace?

On the Marketing Partners Background: What are your overall marketing goals? Can you tell us how advertising particularly online advertising plays a role in attaining these goals? How do you define return-on-investment from your marketing efforts? Could you describe a few of what you would consider the more innovative campaigns have you implemented using

digital platforms?

On the Current Market Players: Could you discuss the variety of websites on which you currently advertise and market? (e.g., media outlets, womens

issues, health-related)? Which website(s) stand out as delivering the highest return-on-investment for your advertising dollar? What are the

perceived benefits of advertising on these website(s)? Are there needs you have as an advertiser that are not being fulfilled by any of the health-related websites?

On NBCUs Value Proposition: As an advertiser, what qualities do you like about doing business with the NBCU health-related websites? What are their weaknesses as an marketing partner? What could they do better? What would you like to see from the NBCU online health websites that would differentiate them from other websites?

Note:

Feedback resulting from these questions is captured in the Voice of the Advertiser analysis

PwC interviewed 15 advertisers in regards to the following questions:


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Appendix C Mergers and Acquisitions


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Page 19

Acquired Company Year Description

MyDNA Media

1800Schedule

Simo Software

Wondir, Inc

Extend Benefits LLC

ConnectYourCare, Inc.

Interfit Health

11/2005

11/200511/2005Fall 05Fall 05Fall 05Fall 05

Fall 05

Health news and information

Helps consumers find doctors and schedule appointments with providers

Software that aids consumers in managing their healthcare costs by comparingcosts and finding discrepancies.

Community-based search info about health needs and issues

Benefit solutions for corporations, focused on consumer directed pans

Consumer directed healthcare platform Rediclinics or retail-based convenient healthcare centers

Medsite.com, Inc

Summex Corp.

eMedicine.com, Inc.

Medscape Physicians Online Inc

7/2006

4/2006

1/2006

1/2004

B2B e-commerce, info, and communication products/services to physicians.

Health management services for employers.

Online publisher of medical reference info for physicians and professionals

Comprehensive info to healthcare professional.

Online medical network allows patients to manage their health accounts

Aerodiet.com LLC-Calorie 9/2006 Website offering weight loss tools and nutritional information

Azyxxi Software 8/2005 Software provider for patient information and tracking data for hospitals

RelayHealth Corp

D&K Healthcare Resources

IntelliClaim, Inc

6/2006

7/2005

2/2005

Facilitates online medical consultations and related services

Wholesale distributor of branded & generic drugs and pharmacy services

Claim processing tools for healthcare payors

2

Established Players and their M&A Activities

Established companies are extending their capabilities through merger and acquisitionsin order to position themselves to become integrated players

RevolutionHealth Group

WebMDHealthCorp.

About.com

Microsoft

McKessonCorp.


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Appendix D Your PwC Digital HealthEngagement Team


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Your PwC Digital Health Engagement Team

Michael Kelley, Engagement Partner+1 646 471 [email protected]

Sharly Rungkat, NY Manager+1 646 471 8029

[email protected]

Jeffrey Coseo, NY Associate+1 646 471 7177

[email protected]

Peter Winkler, NY Director+1 646 471 [email protected]

Glorivee Ramirez, NY Senior Associate+1 646 471 0540

[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]

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