Creating a New Age of Video Entertainment

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• Creating a New Age of Video Entertainment

• Telecom at NAB
• April 15, 2008

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What is Building B?

• New entertainment services company
• 1st Complete next generation TV offering
• Comprehensive content lineup, including
  traditional TV, internet and movies
• Seamless integration of live, stored,
  downloadable and internet video
• Centered on on-demand viewing
• Personalized and tailored to the individual
  viewer
• Distributed through broadband service providers
  and national retailers

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Major Disruptions in the TV Industry A Catalyst
for Consumer Change

• 70 million consumers will make Digital TV choice
  over the next 4 years

Mobile Video
DVR
Internet Content
HDTV
Triple Play
Digital Transition
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Complaints Include High Prices, Inflexible
Bundles and a Poor Experience
Value is critical
Opportunity to improve the experience
Simplicity is key
Upgrade to HD
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Current Approaches are Not Working

• Broadband is challenged to deliver HD television
• A pile of special purpose boxes
• Television STB / DVR
• Movie boxes
• Internet video boxes
• Legacy systems are difficult to upgrade

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Upgrading Existing Infrastrucure is Prohibitively
Expensive
IP backbone providers will not be able to
economically light the existing and new fiber
necessary to deliver broad based TV access at
reasonable consumer prices.- 2007 Telecom
Predictions Report, Delloite and Touche Consulting
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The Key Align the Network with Content
Viewership
Broadcast Networks
53
Leading Networks
34
of TV Viewing
Premium Content Movies
Niche Networks
Internet Video
ABC, NBC, CBS, FOX, Univision, Telemundo, My
Network, CW, Telefutura, other independents
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0
Short-Tail (87 of TV viewing)
Long-Tail
Source Nielsen HH ratings 2005-2006 TV season
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Video Delivery Cost Optimized by Combining
Broadcast and Broadband
Digital TV Spectrum
Broadband
Unicast
Private Broadcast
Broadcast
Group Delivery
Deliver to All
Direct
Viewers
Least Expensive
Most Expensive
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Video Imperatives for the Broadband Industry

• Differentiated television offering
• A complete content lineup (including HD)
• Works in Americas homes todaywith existing
  broadband
• Limited infrastructure investment
• Enhanced brand and customer relationships

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Simple Self-Install
Comprehensive Content
Wireless
BreakthroughVideo EntertainmentSolution
PersonalizationandIntelligence
Time Shifting and On-Demand
Compelling Pricing
Relevant Advertising
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Unlocking the Next Generation of Television
Breakthrough video entertainment service to be
launched in 2008

• Low entry cost
• Simple out of the box setup
• Tailored to individual viewer's routines and
  preferences
• High Definition and On-Demand
• Community and Web Features
• Broadcast networks and local channels
• Cable networks
• Studio library channels
• PPV movies and events
• Internet content
• Delivered straight to the living room television
• No need for a PC
• Works with any broadband service

Accessible
Personalized Experience
Comprehensive Content
Works in Homes Today
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The Industry Has an Opportunity to Capitalize on
a New Chapter of Consumer Video
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Building B is A Turn-key Video Solution for
Broadband Service Providers
Triple Play
Telco's and ISPs

• Differentiated video services
• High-capacity wirelessnetwork for content
  delivery

• DSL and 4G Wireless
• Voice data services
• Marketing distribution

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Building B Partnership Model
Partner

Partner
Partner
Partner
Partner
Partner
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The Time is Now

• Major partnerships complete
• Broadband providers
• Content providers
• Advertisers
• Created nationwide content distribution network
• Broadcast partners in initial launch markets
• Infrastructure Partners
• Announced with Harris Corporation and Sun
  Microsystems
• Commencing trials for commercial pilot

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• Creating a New Age of Video Entertainment

• Telecom at NAB
• April 15, 2008