Viacom International, Inc. v. Youtube, Inc.

Filing 126

APPENDIX, on behalf of Appellant Black Entertainment Television, LLC, Comedy Partners, Country Music Television, Inc., Paramount Pictures Corporation and Viacom International, Inc., FILED. Service date 12/10/2010 by CM/ECF. [165101] [10-3270]

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A. Why Online is screwing up the TV Ad Model .........................................................................A 1. Viewership Many Predict TV Consumption will ShrinR.....................................................A-1 But We Have a Problem Even if It Doesn't...................................................A-2 2. Ad Sales: Online is Stealing our Buzz......................................................................A-3

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B. Why Online Video Alone is Not the Answer............................................................................B 1. Viewership More TV Online Has Not Increased Unique Visitors.......................................B-1 More TV Online Has Not Increased Time Spent.............................................B-2 We Can't Get TV Sized Audiences on our Sites...............................................B-3 We Don't MaRe Enough TV..................................................................................B-4 (MTVN Original Content) ...............................................................................B-4a More TV Online Has Not Crushed Our Competitors......................................B-5 2. AdSa[es.....~..........~...~.....~._...........~.....~ .....................................................................................B-6 Online Ad Loads are a Fraction of TV...............................................................B-7 Online CPMs are High on our Sites, Poor elsewhere......................................B-8 Per Episode Watched: On-Air> MTVN Sites> Syndication ..........................B-9 More TV Doesn't Bring BacR the Buzz...............................................................B-10 Side Bar: Why License Fees are Anathema to Ubiquity Online...................................B-ll The closed circuit is dying.......................................................................................B-12 New Distribution Systems have no GateReepers............................................B-13 3. Online Video Syndication ..............................................................................................B-14 Billions of Streams =Tens of Millions of Doliars...............................................B-15

_ _ Online "Distributor$" Hate UbigUiM.TV ..

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ALTERNATIVE PERSPECTIVES C. Online Ad Sales Monetizes Time Online-Not Just Streams........................................................C 1. 91% of Online Ad Revenues from Non-Video...........................................................C-1 2. Portfolios are as Good as Portals.................................................................................C-2 3. Performance Beats Buzz...............................................................................................C-3

O. Understand the Online Consumer.....................................................................................................0 1. Qualitative Analysis-Understanding Why and How........................................... 0-1

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E. Follow The Consumer............................................................................................................................E 1. Community and Communications Communications are 40% of All Online Activity.............................................E-1 Communications are 67% of Teen Online Activity...........................................E-2 YouTube is a-Social Networtl & MySpace·runs Videos.................-...................E-3 Its Not the Tools-Its How You Use Them............................................................E-4 A Oozen Ways to enable the User to Engage....................................................E-S Learn from NewsPapers...........................................................................................E-6 Our Audience Will Mabe Content for us-and watch it..................................E-7 Community is The Free Lunch (Time Spent) ......................................................E-8 Community increases Uniques (Viral Oistribution) ...........................................E-9 Community and Frequency....................................................................................E-10

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E. Follow The Consumer (con't)

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2. Experiences.........................................................................................................................E-ll Content is Everywhere-Experiences Are Rare....................................................E-12 Experiences =Re-Aggregating Dispersed Audiences.........................................E-13 The Devoted Niche-How Cable Beat Broadcast..............................................E-14 What is An Experience? .............................................................................................E-l5 Experiences Can Mean Hyper-Demo Targeting .................................................E-16 Experiences Can Mean Re-Defining Affinities......................................................E-17 Embrace the Portfolio of Consumer Wants..........................................................E-18 The Vidiot-Horizontal Aggregation......................................................................E-19 The SuperFan-Let Users Go Deep.........................................................................E-20 The "Experience" Drives Integration of Community & Applications............. E-21

F.

tV· is Still tV'-:BeatourCompefifors 'Silly With 'It...........................................................................F
1. TV is still TV.........................................................................................................................F-l 2. Old Habits Die Hard-so does TV viewing...............................................................F-2 3. Our Audiences still spend more time with us..........................................................F-3 4. Cultural Activators are Rare........................................................................................F-4 5. MTVN activates our audience online........................................................................F-5 6. Online and On-Air: Co-Viewing is Pervasive.........................................................F-6 7. Online is the New Water Cooler...................................................................................F-7

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G. How Do We Do It? Some Early Thoughts.......................................................................................C 1. Phase I - Nuts and Bolts.................................................................................................G-l Enable Email (Very Easy Viral Distribution) ........................................................G-2 Syndicate and Lin~-Bac~..........................................................................................G-3 Clean Out Video Search Noise..................................................................................G-4 Get Into Daily Consumption ......................................................................................G-5 Program Community..................................................................................................G-6

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2. Phase II - Thoughts on Process....................................................................................G-7 Learn Lessons from Others - Newspapers and Music.........................................G-s 1. What Experiences Do We Want to Create? ......................................................G-9 2. Build Experiences (integrated Apps & Community) Across Platforms......G-l0 3. Distribution = Connecting Audiences with MTVN Experiences...................G-ll 4. Ad Sales = Harmoniously Monetizing New Consumer Behavior...............G-12 5. Research =Ta~ing Advantage of New Media Trac~ing ...............................G-13 H. Syndicate Video for Traffic. Monetize All Inventory for Revenue...........................................H 1. Own Video AND Display (or Community) to Ma~e Money.................................H-l 2. Pure Video Syndication: Optimal for non-core content or awareness............ H-2

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APPENDIX A - WHY ONLINE IS SCREWING WITH THE TV AD MODEL
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1. Viewership: Many Predict TV Consumption Will Shrinb
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For younger users, the Internet displaces TV
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Time spent using the Internet per week

_:tiltlc.a.CIt_ July 2006, Data Overview "The State Of Consumers And Technology: Benchmark 2006"

Gen Yers spend more time online every week than they do watching television

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Total

Gen Xers

Younger Boomers

Older Boomers

Seniors

IIln a typical week, how many hours do you spend doing each of the following?" !ill Watching movies on video or DVD fIJ Playing video games 0 Reading newspapers

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Source: Forrester's North American Consumer Technology Adoption Study 2006 Benchmark Survey

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APPENDIX A - WHY ONLINE IS SCREWING WITH THE TV AD MODEL
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1. Viewership: But we Have A Problem Even if it Doesn't

Media Consumption is Growing. New Media is growing faster than TV.

Problem: If there are more "impressions" split among same Ad Dollars.

TV can grow Ratings and Still Shrinb as % of Total Media Consumption.
Change In Media Usage by Medium (1998 vs. 2008 Projected)

Num ber of Hours per Person per Year

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Daily Reach (per million)

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Debatable: The Profitability of Many New Media Business Models.
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Not Debatable: That almost no one cares.

YouTube Nearly Doubles Traffic In May
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APPENDIX 8 - WHY ONLINE VIDEO ALONE IS NOT THE ANSWER - VIEWERSHIP

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"More TV" Online HAS NOT Increased Unique Users

Despite the online video explosion, we've seen modest online growth (excluding Nic~).
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We won't get TV-Sized Audiences on Our Sites

Time Spent Online (Per User) is a Fraction of TV Time Spent (Per Viewer)
Time Spent - On Air vs. Online
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MTVN Original Content
Available Today via Archive 2007 Premieres 10** 10 to 12 6 to 8 6 to 8 4 4 4 to 6 8 54 to 62 330 100 328 42 32 25 96 150 1103 2007 Current - L o n g & Short 1000/0 of on ai r 12.5 new hours / month (10Spot and daytime) 6-8 hours / month
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APPENDIX 8 - W H Y ONLINE VIDEO ALONE IS NOT THE ANSWER - VIEWERSHIP

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"More TV" Online

HAS NOT Crushed Our Competitors

"Super-niche" online video providers-such as Heavy and Brea~-are generating more traffic than we are.
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Online Ad Loads are a Fraction of TV

Online Ad Loads = 1/3 to 1/4 of On-Air Ad Loads
Total Minutes Total :30 Avails

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Online CPMs are High on our Sites, Poor elsewhere

MTVN Sites: Target Video CPM of --$35

Syndicated Video: Net Effective Video CPM of $9
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Video Aggregators

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APPENDIX 8 - W H Y ONLINE VIDEO ALONE IS NOT THE ANSWER

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Per Episode Watched: On-Air> MTVN Sites> Syndication
Impact of Ad Loads and CPMs

TABLE: NET REVENUE PER 22 MINUTE EPISODE (OR RELATED CLIPS)
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A d v e r t i s i n g Sales
Ad Load Effective (PM
12

Ad Revenue
Per Episode

Traffic Source
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APPENDIX 8 - W H Y ONLINE VIDEO ALONE IS NOT THE ANSWER
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"More TV" Online Doesn't Bring BoeR the Buzz

The Broadcast NetworRs are putting content online, launching their own video sites and partnering with portals.

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Availability Full-length content continues to grow online, yet ABC found the average online user watched only 5 minutes of their 44 minute episodes.

Coogle, YouTube, MySpace-the folRs with the Mojo aren't providing content-they are connecting people to it.

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APPENDIX 8 - W H Y ONLINE VIDEO ALONE IS NOT THE ANSWER

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SideBar: Why License Fees are Anathema to Ubiquity

License Fees are anathema to Online Distributors

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· In the offline world, we partner with G.telleepe·· to enable them to charge fees to consumers for access to our content · · In the online world-unless users are charged an admission tee-content is ..tree" · Admission fee models have largely failed-they chili con.umptlon-in medium mart:?ed by unllmltecl content p.oulcle·· (no distribution costs =low barriers to entry) who are in a con.tant m ··llet.h··e b.ttle. (low switching costs). · Moreover, in an online world that is increasing "open"-where sites deep lint:? into other sites, where search generates 30+% of traffic-content th.t hlcle. be.oncl aclmlt.lon fee···e ue·· cllfflcult for u.e·· to set to [e.g., WSJ online-one of the most successful premium destination-suff-ers· tremendous loss ·of CIflciHary troffk ·andcanstantly battle .amount of· opent o - w e b content vs. premium walled garden]. · End Result: Content is EITHER free but ad-supported with broad distribution OR Premium and ad-free with a much narrower subscription base.

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Online, you pay to get distribute (i.e., Traffic costs money) · An extension of the above: When content is free, those who have excess traffic charge to share it. For non-relevant content, this is called advertising. For relevant content, it is usually a revenue share ranging from 30% to 50% of ad revenues generated from such content. See Appendix: More is Worse for Online "Distributors."

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The closed circuit is dying ...
=

The ·CI··eel Cl,eulttt

video distribution only through Broadcast TV or MVPDs.

Wirel."

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Data
(PC)

Broadcast

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New Distribution Systems have no Gatebeepers...
·Open Clrcalttt = Gateways (access is no longer an issue)
I. Direct

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Ie. Direct/via
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APPENDIX 8 - W H Y ONLINE VIDEO ALONE IS NOT THE ANSWER
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We'd need to nearly match the number of streams we are doing today via HyperSyndication-or Inc......., h.lf via Yahoo-in order to mabe an incremental $10M in online advertising revenue via Video Syndication.

Video Streams on Distributed Sites Required to Generate $10 Million for MTVN*

A-525

Traffic Source

(PM

Rev Share 1000/0 700/0 700/0 500/0 7.0 10.5 12.5 5.0
---

Effective (PM

Streams to Hit $10M 2,OOOMM
--- ---

0/0 of MTVN Annual Streams*

Viral (Embedded)

$
5 10 15 25

1100/0
1,428MM 952MM 800MM

HyperDistribution**

790/0 530/0 440/0

Video Aggregators

Yahoo/Portals

*Excludes iFilm and Gametrailers **Assume 0% ad skip vs. current -25% ad skip

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Online "Distributors" Hate Ubiquity

As the number of distributors grows, online content becomes less valuable to each distributor

· Online distributors value content only to the extent that a consumer spends incremental time with that distributor by consuming the content (which 11111. I. lIIonellzed with advertising). · As the number of sites offering our content increases: · a given consumer is more libely to have already consumed that content somewhere else; · decreased consumption =less advertising revenue =lower incentive to use precious real estate to promote content instead of something which distributor can better monetize. · Don't Forget: This same "devaluation" can affect MTVN sites-i.e., cannibalization-as we are also a direct distributor of our content (through our sites).

A-526

Example: · Yahoo cangeneraUygenerateatleast $1.3M promoting content areas on the 'lahooHomePage · If Yahoo is the ONLY or A PRIMARY place to get that content, users will clicl:?-thru to that content · But, if consumers are libely to have already been exposed, clicb-thrus value (and value to Yahoo to promote drops preCipitously)
Click-Thru on Yahoo Homepage 5.00% 2.00% 0.50%
7

MTVN Distribution Strategy

Uniques Users to Yahoo Comedy 1,250,000 500,000 125,000

Revenue per Unique User

Total Revenue from Promotion

Yahoo Exclusively

$ $ $

3.00 3.00 3.00

$ $ $

3,750,000 1,500,000 375,000

MTVN sites + Yahoo

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91 0/ 0 of Online Ad Revenues from Non-Video

To generate an additional $10M from our sites we'd only need to increase traffic by an aelelilional 5%.

2006 Projected Online Ad Revenues
A-527
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Non-Video Video as % of Advertising Total Online

$ 15M

$ 145M

9.4%

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Portfolios are as Good as Portals
MTVN Games/Entertainment
70 Younger

We can sell Horizontally-across brands and sites-to meet advertiser-driven metrics

Male
SpikeTV.com .. Games/E,"*ertainment

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MTV Networks RESEARCH Ii PLANNING

Median Age Line represents total internet median age

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Performance Beats Buzz

Ope··llon.1 I.cellence · Opllllliae .elllnil 1111. to generate more higher value impressions · Determine opll ..... p.icin··1.lIclll.e to both drive revenue and maximize impact of

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house ads Explore and expand p ··lne ·· hip. with technology providers, traffic drivers and inventory managers to m·· imlaa ,ielel on every impression Leverage our c.o···lle con.llme. In.l.hl. - these are the game changers; shared data drive audience insights which drive advertiser commitments Establish leadership in IInowleel.e of online .lIellence. through data mining

P.oclucl · 'c.le matters - f o r our sites and for content experiences outside our sites · Get the ....Ic. - frequency capping, sequential messaging, targeting, reporting · Cross-networi:? cI.l. capture · Inventory oplllllla.llon and yield management · Innovation and .peecl to mari:?et

P.cll.,lng · OWN 1IIIIIIi-pl.lfo.m and convergence in the mari:?etplace · Power in numbers - h o . l a o n l . ' ····e ··llon according to advertiser-desired, data-driven

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Qualitative Analysis-Understanding Why and How
Getting t ···e.t u.e. e.pe.lence··nllne A wl.ele··

Continuous usability testing (including multivariate testing) Persona-driven search, brand and competitive analysis Behavioral user experience heuristic analysis Reality mapping for attracting and retaining consumers Experience-based planning (relationships, dependencies, scenarios, features)

A-531

E.pl··ln. new .n" p ··'lt...le ....n..·c.n.ume··el.tlon.hlp.
Virtual world development Influencer, 'Net Promoter' activation Games' play and extending into new affinities External partnerships value creation Acquisition support (forward-facing, integration-minded)

I"entl'wln. new, .wn."le .evenue c.nt.I"ut···
ROI excellence Social media expansion (brands, franchises, behaviors) Lifetime value exploration (portfolio, mindset-based)
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A-532

"It's not just about bringing people to the site, it's about keeping them engaged, enticing them to share and create their own content, and making sure they come back./I
Lloyd Braun, Head of Yahoo Media Group Business Week, March 13,2006

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Communications are 40 0/ 0 of All Online Activity

Ac.oSS ALL Use.SI
-

Total Time Spent Online (Millions of hours) Total % 170/0 Commerce

39% of Time Spent on

Communication

A-533

Communications
50/0 1000/0

39%

Content Search Total

- C o m m u n i c a t i o n tied with Content as the Dominant Online Activity

I

Video = < 5% of Content Time Spent.

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Communications are 67% of Teen Online Activity

67% Total
ime Spent = munications
A-534

Teens Age 12 to 17 Top Categories - A v e r a g e Minutes Per Visitor February 2006 vs. February 2005 Year over Year Percentage of Grawth Time Scent Instant Messenger / 400/0, ............. 410/0" Email 330/0 t t 140/0 I Discussion/Chat \... 46%/ \. 13% /

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Retail Online Gaming Auctions

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YouTube is a Social Networb & MySpace runs Videos
0.110"

MarLet Share of US Internet Visits
0.15"

0.14"

0.12"

"YouTube is BOTH a video viewing site and social networi:?ing site:
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Hitwise, May 2006
18 25 04 11 18 FEB FEB "AR "AR "AR .. 111111. VOUlUBE. CO" .. IJ IDS .11¥SPACE. COI1

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Top Video Sites
Domain

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WWW.,outube.colII uicl··m,.pace.colII

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Its Not About the Tools-Its How You Use Them

Context Will Rule the Next Generation of Social Networbs

the next wave of successful social networbing (and userg e n e r a t e d content) communities will come from major media websites and other content providers that offer their audiences conte.t... llp specific reasons to aggregate.
Eric Alterman CEO, Kicl:?Apps

A-536

-Exomple!C-elbert -Gr-een-SreenGhGl-lenge·_·
Content Creation is Not Just "Cats urinating in toilets"
· 88 Unique Mashups of Colbert fighting Bears, Monsters · 7K Reviews and Ratings by viewers of Mashups · 1.7 Million Video Streams on YouTube Alone

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A (Baber's) Dozen Ways to enable the User to Engage
Conlenl
Made for Web
UGC

Parallel Storylines

A-537

Extras, Outtakes

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Newspapers Lessons - The First Internet-Disrupted Media

As newspaper publishers become convinced current online growth rates will not counteract the downward spiral of print readership and ad revenues, more and more solutions are being brought to the table.

Niche. user-generated and data-driven content as well as more targeted and cost-per-action advertising are among the recommended ways newspapers can open up new revenue streams.

"We need to move from the old monolithic business model ... to a diverse and growing portfolio," declared Steve Gray, managing director of API and Newspaper Next.

The recommended "portfolio solution" encompasses an array of free and paid products beyond just news.

A-538

"The online strategy chosen by most newspapers -- e s s e n t i a l l y reproducing the newspaper online -- f a l l s into a common disruption trap .... attempting to reproduce the old product in the new technology, and thereby missing many of the best new opportunities," notes the recently-released "Newspaper Next: The Transformation Project" report.

Serving niche audiences through vertical content is one obvious way newspaper companies can offer contextually-targeted advertising. The report suggests categories such as entertainment, travel and high school sports, as well as even more ad-themed verticals like autos, homes and coupons.

Data-driven information resources and opportunities for users to create content are also recommended. For example, E.W. Scripps Company's naplesnews.com, the Web edition of Florida's Naples Daily News, has searchable databases for local team and athlete comparisons. And sites like Enterprise NewsMedia's Plymouth, MA-based WickedLocal provides news content and lets users write blogs, join in discussion forums, and submit photos. The American Press Institute (API)/lnnosight Report

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Our Audience Will Mabe Content for us-and watch it

By enabling our audiences to communicate through our platforms, we harness very powerful new content that we can monetize

Web content creation
8%

_us
4%

POSTED A SLOG

·

Australia

A-539

ADDED INFORMATION TO OWN WEBSITE

· User-generated video is not the only form of consumer content · Blogs, Tags, Posts (Message Boards), Photos are significant contributions made by users · Moreover, the younger the audiences, the more litlely to engage in online content creation-nearly 500/ 0 of all online users between 18 and 29.
Web content creation by age
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10%

ADDED INFORMATIONTO ,A. WORK OR GROUP WEBSITE OR A BLOG

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And More Community is a Free Lunch

TheN initiated Community Features in Profile Pages: Traffic grew dramatically with NO adverse impact to content consumption.

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Community increases Uniques (Viral Distribution)

Let the Audience be the evangelist.

Letting Others Know About Online Video Is Common
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Community and Frequency

"-w+e"W'""w",#","'w,,*,,,~,,,,,,,"","''''_''''','''',"'''''''',''k,,"'','';';"";"""""""';'

Communications, social networking, and game playing are the most common daily activities (sorted by % dOing activity daily of those that do it at all)

More do activity daily

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Even for those who have been on the Web the longest (18-34), uncontexted TV content provides no added value to users.
Jupiter, 2006

A-544

Experiences, not content, will be the basis of success for media companies -going forward. Media outlets have great expertise in creating one-size-fits-all experiences - liRe mabing a movie, producing an album, or filming a TV show. However, content experiences of the future will differ in many ways.
Forrester, 2006

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The Web Has Dispersed Traditional Audience Clusters

"What we are experiencing in fragmentation is a little libe the aftermath in the Big Bang theory. After the "bang," all of the matter in the universe was deconstructed and dispersed. Over time, the pieces re-grouped in new, meaningful ways-- planets, stars, moons, et cetera.

A-545

Similarly, the introduction and adoption of digital technologies in our sOciety has effected a deconstruction and dispersion of audiences across channels. The fear among media practitioners evolves from the disorder, the change in how we understand our universe~ the media-scape, and the implications on our business models. The opportunity -- in fact, the silver lining -- is in the discovery of new patterns that may ultimately prove more compelling for consumers and more instructive and efficient for advertisers.

Let me put it more simply. Fragmentation is just an opportunity to re-aggregate audiences in more meaningful ways."
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The "Focused" Approach Can Build a Meaningful Audience

~ Technorati"
Blogs and MSM
Washington Post 1$1&" . l i l l l U U i .___ .__ ~. _____ " __ "._____..._ ,__._.__._.. _..,,.._.. _ _____ ..._......__ .~__ Tahoo t\lews .. .. BBC
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E -15

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Programming (1) Content + (2) Software + (3) Navigation for Specific Effects.
Opportunities:

"I
Story telling techniques Tools and features Site navigation Interaction with audience

Content selection

· Reactions - a t t i t u d i n a l / i n t e l l e c t u a l / e m o t i o n a l Example: anti-authority Jacbass Portal · Interactions - w i t h content, functionality, community Example: "in control" of my video on Horizontal Platform · Activity - passive vs. full immersion Example: Watching TV vs. Networbed Video Game

A-547

HiUh
ooks out for people like me

The JacRpot:

Satisfying Experiences that are otherwise absent from Consumers' Lives
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A credible. safe place

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"Disney.com, when it relaunches in early '07, will create a customized point of entry so the experience matches the age and interests from pre-school up."
PaidContent.org, 9/20/06

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APPENDIX E - FOLLOW THE ONLINE CONSUMER - EXPERIENCES
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Consumer-Regulateel; full con.u..er accett

· A Full experience around a passion (e.g. music, politics) · Initiated by trusted entities-brands, franchises, characters

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Vieleo Experience

A-549

Vieleo it ........ Experience

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We get:
· More Engagement (Time) · Ability to guide/drive usage

- experIences that go well beyond our video (e.g., we are now the voice of Political Satire)

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E - 19

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They want to Control their Video
· Breadth of Content · Personalization, Interactivity · Ability to Create, Edit, Mash-up YouTube
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E - 20

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They want to Go Deep
· Full access, immersive experiences · To interact, to shape, to identify with Franchises If we Build It: ??

Today they go to: UnOfficial Fan Sites

A-552

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"Design [must] lead users to community. [Creators must] analyze what community means to the organization and its constituents. Virtually live through the consumer to understand how they move through the site to understand how the idea of community should manifest itself.

Message boards and other interactive community forums can't be located in just one area, on a separate subsite - they must be woven community features throughout the site -- no matter where someone is on the website, she should easily find her way to a chat room, message board or other appropriate tools."
"People who need People," CIO

A-553

Production capabilities are extremely high based on capital investment and expertise.

Professionalism is a characteristic of mainstream media cuts both ways - there are clear standards and a high degree of talent, yet alism is a box th

Marry the Unique Elements of Professional Content with the Power of Community
Self-exposure is a more powerful driver of social media than selfexpression. The exhibitionism and associated voyeurism of blogs and social networks are a key factor driving participation.
Future of Media 2006, Future Exploration Network

Annotation is commentary on and reference to existing information and ideas.

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APPENDIX F - TV IS STILL TV
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TV provides a crucial distinction-and critical advantage.

A-555

· TV initiates behavior and induces shared passions and experiences · MTVN consistently demonstrates unparalleled creative leadership · We are the Inventors of breabthrough genres and content · We Innovators of popular culture · Our audiences want deep tailored "Experiences" that are easy to use--not just more content · Watching an event as it happens gives an indescribable jolt to those most engaged - q u i c b e n i n g their concentration, giving them a sense of participation

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APPENDIX F - TV IS STILL TV
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"The rate of change is larger for new media (Internet and e-mail) than the rate of decrease for traditional media. In other words, growth happens faster than decline.

This goes a long way towards explaining why we can have overall increases in media consumption: new habits are acquired while old habits are maintained.

A-556

Traditional media seems to be able to retain or even grow users in core areas. For example, TV was up in primetime, radio was steady or up in drivetimes, and newspapers were up in the morning.

It mabes sense that traditional media will compete hardest to retain users in their most successful time periods."
Jay Newell

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Time Spent on MTVN Nets Still Beats Even Top Internet Sites
Time Spent - MTVN vs. Selected Online

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Cultural Activators:

A-558

· They give audiences something to do - some activity, some roles and goals, some meaningful form of participation. · This can be literally the case in terms of the mechanisms of participation that surrounds reality television or computer games. · Or it can simply be the show embeds lots of secrets and thus opens itself up to a prolonged process of decryption, as seems to be the case of Lost

Almost all TV attracts Culture-it tabes a unique show to activate it.
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Initiation: Colbert films himself in mocb light-saber fight in front of green screen. Result: (on YouTube ALONE) · 88 Unique Mashups of Colbert fighting Bears, Monsters, the Star Wars Kid · 7K Reviews and Ratings by viewers of Mashups · 1.7 Million Video Streams (approx same number of mash-up streams as monthly streams of Colbert clips on Motherlode)

Initiation: Colbert urges viewers to vote for him on online poll to name new bridge in Hungary.

A-559

Result: Colbert leaps to first place with over 17M votes (leads second-leading votegetter by over 15M votes).
-

I n i t i a t i o n : Colbert encourages viewers to change Wibipedia entries to say the elephant population had tripled in the last six months. ["Any user can change any entry, and if enough other users agree with them it becomes true. If only the entire body of human bnowledge worbed this way."] Result: Under deluge of changes from audiences, Wibipedia bans further changes to Elephant entry.

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Due to recent vandalism, editing of this article by anonymous or newly registered users is currently disabled. Such users may discuss changes, request unprotection, or create an account.

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Audiences are aoing Online while Watching TV

· 16% of ALL online usage occurs in front of the TV

· 66% of Users regularly/occasionally watch TV while online A-560

And they are loobing online for MORE from Us
showswhiiethey are watching

· 60%of Users visitwebsites of TV

· 80% of Users visit the websites-at some point-of the television

networRs and/or programs they watch

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APPENDIX F - TV IS STILL TV
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Initiate with TV, Enable with Online

Online is the New Watercooler
A-561

· 54% of Users would consider participating in online

communities, discussion groups, chat rooms or blogs about T

· 13% of Users currently DO!

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SUMMARY NUMBER
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(!)
Inillate with Oil. F.anchbes/B.ancls/Content

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Engage with

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Increase Uniques 1. SEO - A p p r o v e Budget and Keep Implementation GOing 2. Enable .. Email or 1M A Friend" on Every File 3. Syndicate and LinR-BacR-You Tube and Others 4. Clean out the Video Search Noise 5. Go Viral-With a Plan

A-564

Increase Frequency (aRa Change Consumption Patterns) 1. Alerts (e.g., Let Users RIJOW when new content is available) 2. BooRmarRs (e.g., "BooRmarR this page") 3. Get into Daily Consumption: Instant Messenger, Widgets & Modules

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It's the Most Popular Way to Share Video
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Distribute Content with Focus to Drive Traffic Bacb

1. Call-To-Action on Our Sites 2. Leverage Content Mix that Generates Awareness
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Click to Vote on Green Screen Finalists.
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Yahoo, Coogle, MSN, UnCut - All the "Search Engines" already have our content - w h y send users to us? We need to give them a reason
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Buddies (6/11)

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