TV Group Portfolio Overview Jeff Zucker September 13, 2006
NBCU TV Group Diverse portfolio ($ in billions) TV Group Divisions (% of Revenue) ~$16B Film / Parks / Digital Media ~$6B ENTERTAINMENT (~35%) ENTERTAINMENT CABLE (~20%) TV Group ~$10B ~64% of NBCU NEWS & INFO (~15%) TV STATIONS (~10%) 2006 Revenue $2+B Op Profit TV Group SPORTS & OLYMPICS (~10%) TELEMUNDO (~10%) NBCU TV Group / 2
TV Group business overview Prime Time Turnaround Strong Growth Everywhere Else + Excellent buzz around 06 Fall lineup FNL, Heroes, Kidnapped, Studio 60, 30 Rock + NFL catalyst for strong momentum + Good summer 14 Emmy wins + News & Info Cable + Entertainment Cable + Telemundo Making Big Bets + NFL + Increased content ownership + Digital investments + Mexico Digital Strength + TV 360, ipod, EST, VOD, FOD Strong Momentum Leading into 2007 NBCU TV Group / 3
06 NBCU upfront summary (Gross sales $ Billions) $3.8 NBCU Upfront sales grew in a market that appears to be down 2 to 3% NBC Prime + NFL up vs. a year ago - Strong advertiser interest in NFL and new Primetime Shows Gained market share in Today, Late Night, and Nightly TLMD up > 25% with very strong price growth 05/ 06 Digital, Branded Entertainment, and Alternative Guarantees initiatives drove > $300+MM of volume * Status as of 9/11/06 NBCU TV Group / 4
NBCU Television Portfolio NBCU TV Group / 5
Entertainment Overview ($ in billions) $1.9 Prime Revenue Won 14 Emmys, most for any broadcast net The Office won best comedy series Good summer performances from Last Comic Standing, America's Got Talent NFL cornerstone of turnaround Strong momentum heading into Fall 2006 Est Continue to re-establish NBC brand maintain the not there yet mentality NBCU TV Group / 6
NFL Big Win for both GE & NBCU Deal: 6 season rights for $3.6B Flexible scheduling last third of season Preferred vendor for all GE products -Stadium construction, other ops -Opportunity for $1B+ for GE businesses Great Schedule NBC: The Peacock Network gets the bluechip schedule that used to go to Monday nights. Houston Chronicle NBC got the prettiest girl in the class status from the NFL schedule-makers Sunday night is the new Monday night. SI.com Positive Early Indicators NBC s first NFL Sunday Prime game scores 14.3 Rtg higher rating than any ABC opening MNF game since 2000 more viewers than any ABC opening MNF game since 1996 After 2 games, NBC s NFL Sunday package averaging 13.5 rtg 10% ahead of last year s ABC S MNF Future Looks Bright for NFL Partnership * Excluding preemption impact NBCU TV Group / 7
NBC Primetime Back on Brand NBC s new fall shows are generating strong industry buzz Newsday Of the five new shows that consumers were discussing the most often online in May and June, according to the report (PropheSee), four will be on NBC: Heroes ranked first; Studio 60 on the Sunset Strip second; 30 Rock fourth; and Friday Night Lights fifth. New York Times NBC s line-up of Studio 60, Heroes, Friday Night Lights and 30 Rock has critics buzzing the peacock is strutting for the 1 st time in years Broadcasting & Cable comedy-wise, NBC has the closest thing to a slam dunk in what is adding up to a highly competitive season Toronto Star NBC s new shows are particularly striking NY Post NBCU TV Group / 8
Great press for all new Fall Shows... When we say that Aaron Sorkin s Studio 60 on the Sunset Strip is this season s big new TV show, that s not Fall Preview hype. We mean that literally Newsweek NBC has the best new comedy 30 Rock New York Post Named number 8 in TV s Top 10: The new must see shows this fall New York Daily News This is the best pilot of the fall season. Breathtaking in how it captures ordinary life set against extraordinary passions and world-class skills...the ensemble is splendid Associated Press Surprisingly funny Media Week This one rocks right out of the box Toronto Star NBCU TV Group / 9
Entertainment Overview ($ in billions) Prime Revenue Turnaround at NBC Prime in full swing $1.9 #1 in Daytime strong content wins #1 in Late Night future remains secure Strong franchises already exist: L&O, House, The Office 2006 Est NBCU TV Group / 10
News & Info Overview ($ in billions) Revenue #1 Network News Division $1.4 ~5% CAGR $1.5 #1 Morning News program - Today only morning news program up year over year in total viewers - Meredith on board strong addition to the morning team #1 Nightly News program #1 Sunday talk show #1 Business news channel - CNBC Business Day Ratings +88% vpy in 3Q QTD 2004 Act 2006 Est MSNBC delivered best monthly demo ratings in Mon-Sun Prime since Sept 05 NBCU TV Group / 11
Evening News Update CBS 13,583 Daily Evening News Viewers (Sept 5 th Sept 11 th ) 10,144 9,480 NBC ABC 7,584 7,440 7,116 7,771 6,596 7,041 6,582 6,295 8,270 7,870 7,490 NBC ABC CBS Sept 5th Sept 6th Sept 7th Sept 8th Sept 11th * Sept 7 th NBC News pre-empted by NFL NBCU TV Group / 12
TV Stations Overview ($ in billions) Revenue $1.4 $1.4 10 O&O Stations All #1 / #2 in Early AM & Late News Strategic sale of 4 Stations in 2Q Margins ~50% Politicals, NFL, & local programming offsetting prime pressure 2004 Act 2006 Est NBCU TV Group / 13
Entertainment Cable ($ in billions) Revenue $1.6 ~10% CAGR $2.0 USA #1 basic cable channel best summer ever (Monk, Psych, WWE) Bravo #1 upscale channel best summer ever (Project Runway, Workout) Sci Fi #7 basic channel channel strong brand Emerging Channels off to great start strong 07 growth more to come 2004 Act 2006 Est NBCU TV Group / 14
Telemundo Overview ($ in billions) Revenue + 6% CAGR $0.6 Fastest growing broadcast network Eleven consecutive months of yearover-year growth in prime ratings $0.5 ~25% ratings growth vpy Producing 100% of primetime lineup extending to other dayparts Yahoo-Telemundo launched: #1 Hispanic online site Mexico production & distribution 2004 Act 2006 Est Rejuvenated Mun2 NBCU TV Group / 15
Telemundo Ratings/Upfront Average Prime Delivery ~25% vs. PY Broadcast Upfront Dollars $1.1B ~$260 3.1 3.3 3.2 Mon-Sun A18-49 2.2 2.5 ~$800 ~$830 Telefutura Galavision 2Q05 3Q05 4Q05 1Q06 2Q06 Share of Upfront $ 05/06 24% Year over Year Ratings Growth Increasing Market Share of Upfront $ NBCU TV Group / 16
Digital Overview NBCU TV Group / 17
NBCU Online Strategic Rationale Launched NBBC yesterday Unprecedented digital rights deal with Warner Brothers Free streaming of all new NBC shows Users Reach Content Anytime, Anywhere Not Just TV TV360 Monetize Sites Advertising + Transactional Opportunities Promote Networks And Enhance Brands Use Content to Create New Broadband Channels Develop Fan Base Creating Innovating & Diverse Mechanisms to Reach Viewing Audiences NBCU TV Group / 18
Programming for Content 360 Online Create Organic Web Extensions from TV Online Helps Promote TV (Office, BSG) Develop New Online Brands Within Current Sites (NBC 24/7, SciFi Pulse, etc.) Mobile Online TV360 Broadband Channels EST Use EST to Broaden Show Reach Anytime, Anywhere Complement Network, Home Video and Syndication Windows EST Mobile Integrate Wireless and Web Website2Go Distribute TV Shows and Channels TV2Go Interactive TV Interactive TV SMS Added to TV in Organic Way (DOND, Project Runway, Treasure Hunters, 4400) More 2-screen and 1-screen Projects (Top Chef, Mad Money) Programming Strategy Includes Numerous Digital Media Complements NBCU TV Group / 19
NBC.com #1 Broadcast Network Website In 1H06.. 140MM page views per mth TV360 Huge Success In Upfront Generating Traffic And Revenue - The Office - The Biggest Loser - Passions - The Tonight Show - Saturday Night Live - America s Got Talent Launching Network s Fall Shows - NBC First Look - Streaming all new shows on NBC.com in 4Q NBCU TV Group / 20
New windows Fall launch FRIDAY NIGHT LIGHTS 1 PRE- PREMIERE 2 NETWORK RE-AIR ON AIRING 3 CABLE 3 1 week before, stocked w/ ads & promotional air & monetize on NBC re-run & monetize on USA/SCIFI or 3 rd party network FREE ON DEMAND 4 VOD/EST 5 FOD w/ads + fee for 2 weeks only VOD/EST thru end of season, then off DIGITAL HOME VIDEO full season on DVD + EST box sets ~$39.99 retail TUE 8PM TBD HEROES MON 9PM TUES 7PM STUDIO 60 Sell to: MON 10PM TBD NBC.com 6 Clips / extra video (w/ ads) blanket ALL platforms to reach ALL demos push virally Shows everywhere, on every platform, reaching new young audiences, building excitement + generating new digital revenues NBCU TV Group / 21
TV Group business overview Prime Time Turnaround Strong Growth Everywhere Else + Excellent buzz around 06 Fall lineup FNL, Heroes, Kidnapped, Studio 60, 30 Rock + NFL catalyst for strong momentum + Good summer 14 Emmy wins + News & Info Cable + Entertainment Cable + Telemundo Making Big Bets + NFL + Increased content ownership + Digital investments + Mexico Digital Strength + TV 360, ipod, EST, VOD, FOD Strong Momentum Leading into 2007 NBCU TV Group / 22