Hi, I’m Ben.

LET’S START AT THE BEGINNINGIn 59 B.C. The Roman Empire

Published “Acta Diurna”...

Then some other stuff happened…...THEN SOME OTHER

STUFF HAPPENED

1950 19600

10

20

30

40

50

60

70

80

90

100

PERCENTAGE OF AMERICANS THAT OWN A TV

A CHANGE IN TECHNOLOGY

A CHANGE IN TECHNOLOGY: THE NEW PIPE OWNERS

CABLE PENETRATION

1960 1970 19800

10

20

30

40

50

60

1

16

53

Growth of Cable Subscriptions, in Millions

1955 1965 1975 19850

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

2 Hours, 54 Minutes

4 Hours, 20 Minutes

Hours Spent Watching TV, Daily

...LEADS TO A CHANGE IN CONSUMER BEHAVIOR

Estimated using data from TV Basics

...LEADS TO MASSIVE OPPORTUNITY

NOV ‘72 DEC ‘77 SEPT ‘79 JAN ‘80 JUN ‘80

AUG ‘80MAR ‘83 MAY ‘82 AUG ‘81 DEC ‘80

JUN ‘85APR ‘83 FEB ‘84 FEB ‘84 JAN ‘85

JUL ‘86NOV ‘93 APR ‘91 OCT ‘88 FEB ‘87

Started by a former sports anchor frustrated with the amount of time he was given to report the sports news; with a $9,000 credit card advance and $30,000 from friends and family.

ESPN

Started by the founder of The Cable Educational Network, Inc with $5 million in start-up capital led by investment firm Allen & Company

THE DISCOVERY CHANNEL

Started by a lobbyist for the cable industry looking to create the first network aimed at African Americans with a loan of $15,000 and a $500,000 investment.

BET NETWORK

SUCCESS IS NOT A RANDOM ACT.It arises out of a predictable and powerful set

of circumstances and opportunities.““

- MALCOLM GLADWELL, Outliers

A CHANGE IN TECHNOLOGY

A CHANGE IN CONSUMER BEHAVIOR

A MASSIVE OPPORTUNITYLEADS TO

LEADS TO

SO...THAT WAS BACK THEN

HISTORY REPEATS ITSELF

A CHANGE IN TECHNOLOGY

A CHANGE IN TECHNOLOGY: THE NEW PIPE OWNERS

2000 2010 20200

50

100

150

200

250

Smartphone Users, in Millions

SMARTPHONE PENETRATION

SMARTPHONE PENETRATION VS 1980’S CABLE PENETRATION

0

50

100

150

200

250

1960 1970 1980 2000 2010 2020

Cable Subscriptions (1960-80)V

Smartphone Penetration (2000-Present)

HOURS SPENT ON PHONES & WATCHING TV

1965 1975 1985 1995 2005 20150

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

3 Hours, 20 Min

4 Hours, 20 Min

2 Hours, 50 Minutes

Hours Spent Daily Watching TV(1965-85)Hours Spent Daily on Smartphones (1995-Present)

Estimated using data from TV Basics

...CHANGES IN CONSUMER BEHAVIOR

1Q06 1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q14 1Q15 1Q1676

77

78

79

80

81

82

83

84

85

US Pay TV Penetration Rates

Source: US Census, Company reports, Citi Research

A CHANGE IN TECHNOLOGY

A CHANGE IN CONSUMER BEHAVIOR

A MASSIVE OPPORTUNITY

LEADS TO

LEADS TO

...BUT WHY WILL THE NEW GUYS WIN?

“ “- MAXWELL WESSEL, Harvard Business Review

At the end of the day, corporations exist to make money…They hear about the advantages of ‘disruptive innovation’…and decide that their organization should do ‘some of that’. But their

organizations are designed to do something else very well. Namely, what they’re already doing

LAYOFFS AFFECT MTV, OTHER NETWORKS, AS VIACOM RESTRUCTURING CONTINUES

VARIETY March 10, 2015

Viacom expected to cut around $250 million in costs as a result of the restructuring.

ESPN CUTS 300 JOBS AS SUBSCRIBER FEE GROWTH SLOWS

LA TIMES October 21, 2015

ESPN has been under pressure to control costs as it no longer can depend on steady growth from its most reliable revenue

stream: fees from cable and satellite subscribers

HBO TO CUT 7% OF ITS WORKFORCE BEGINNING THIS WEEK

DEADLINE HOLLYWOOD October 28, 2014

Time Warner’s directive to its divisions to cut head count, part of the media giant’s effort to improve profitability, hits the

premium network operation this week

“Consumer attention doesn’t scale with either volume or

ready availability of content…”

TAL SHACHAR Redef

I HAVE A VERY PARTICULAR SET OF SKILLS

“The joke is that Chorus is a unicorn with a kitten on its back.

People think it is a magical system that fixes

everything.”

TECH CENTRIC

MELISSA BELL Co-Founder, Vox.com

16M Views

“The secret to Buzzfeed’s success is a culture that embraces constant change yet remains devoted to data-driven metrics.”

DATA CENTRIC

FAST COMPANY February 16, 2016

“NowThis has put its emphasis on creating content specifically for social media

platforms – and shortening its news videos to live and thrive on those platforms”

SOCIAL DNA

POLITICO February 6, 2015

“[Bustle] is designed to be mobile-first. Nearly 85% of

Bustle’s readership comes from mobile devices. For millennials,

this is the new normal”

MOBILE FIRST

BRYAN GOLDBERG Founder, Bustle

“The skills required to do what a great real time digital journalist does are different…using the full

capabilities of the digital medium, including covering unfolding

stories in real-time, using text, pictures, video, and commentary.”

REAL TIME NEWSROOM

HENRY BLODGET Founder, Business Insider

TRULY NATIVE REVENUE GENERATION

ABILITY TO SOURCE DIGITAL INFLUENCERS

NETWORK TELEVISION PRODUCTION

COST PER MINUTE

$50,000 - $100,000

NEW MEDIA PRODUCTION

COST PER MINUTE$500 - $1000

Data from MARK SUSTER, Upfront Ventures

CONTENT COSTS IN LINE WITH ABILITY TO MONETIZE

~Half of Millennials Don’t OwnA TV

~Half of Millennials check their phones a few times per hour

44% 51%

RESONATES WITH MILLENNIALS

MODERN TOOLS & TACTICS

MODERN COST STRUCTURES

MODERN MEDIA COMPANIES

PLUS

LEADS TO

...SO WHAT HAPPENED TO THOSECABLE NETWORKS?

SOME ROLLED UP SMALLER PLAYERS

“ABC to Acquire ESPN as Texaco Sells It’s 72%”LOS ANGELES TIMES August, 27, 1985

“CBS Corp. Will Acquire TNN and CMT for Stock Valued at 1.55B”ADVERTISING AGE February 11, 1997

“NBC to Buy Bravo Channel in $1.25B Deal”THE NEW YORK TIMES November 4, 2002

“Weather Channel is Sold to NBC and Equity Firms”THE NEW YORK TIMES July 7, 2008

...MANY GOT ACQUIRED BY THE MEDIA BUSINESSES WHO CAME BEFORE THEM

“Turner to Merge into Time Warner; A $7.5B Deal”THE NEW YORK TIMES September 23, 1995

Viacom Set to Acquire CBS in Biggest Media Merger EverTHE NEW YORK TIMES September 8, 1999

“Comcast to Buy NBC Universal”MASHABLE December 1, 2009

...AND SOME SOLD TO THE PIPE OWNERS

HISTORY IS REPEATING ITSELF, AGAIN...

SOME ARE ROLLING UP SMALLER PLAYERS

“Turner Buys Bleacher Report, Next-Gen Sports Site”FORBES August 6, 2012

“NBCUniversal Buys Big Chunks of Vox Media and Buzzfeed”RECODE August 12, 2015

“Disney Doubles Ownership Stake in Vice to 10%”VARIETY August 12, 2015

“Univision to purchase satirical website, The Onion”VARIETY August 12, 2015

...MANY ARE GETTING ACQUIRED BY THE TRADITIONAL PLAYERS...

...AND I PREDICT THAT SOME WILL START TO GET OWNED BY THE NEW PIPE

OWNERS

PLATFORM CONTENT STRATEGIES ARE TAKING SHAPE

FACEBOOK INSTANTARTICLES

SNAPCHATDISCOVER

TWITTERMOMENTS

GOOGLE AMPPROJECT

And before a bunch oftraditional media people

freak out…

Bye guys. Love ya.

Questions, comments,blah blah blah?