Next 5 Years in Online Media

ICT Summit: June 15th, 2010 Fuji TV TV Tokyo

NBC FOX

The Next 5 Years will be a Renaissance for Traditional Media The Crunchyroll Time-Machine

6 million+ visitors worldwide Core: 13 - 34 Year Old Anime & Drama Audience Internationally

Monthly Unique Visitors1

4,000,000 US Global 3,500,000

3,000,000

2,500,000 Transition to 100% +16% Q/Q Professional Growth 2,000,000 2.2x growth since 1,500,000 Series A

1,000,000

500,000

0 source: 1. quantcast, google-analytics The Crunchyroll Time-Machine

Rest of World 22.05% United States Mexico 44.01% Germany 1.43% 1.95% Indonesia 2.20% Malaysia 2.73% Singapore 4.09% Philippines 7.23% Australia Canada 2.13% 8.37% United Kingdom 3.82% The Crunchyroll Time-Machine

13 – 34 Year Old Affinity 60

50

40

30

20

10

0 Youtube Crunchyroll Google Video Hulu Crunchyroll users are early adopters of technology 1. Shift in Eyeballs

Viewers and Advertising will shift quickly to Online in next 5 years

1 TDG: http://www.maxxomedia.com/blog/americans-will-be-watching-more-online-video-than-broadcast- tv-by-2020-tdg-report/ 2. Explosion of Media Consumption Devices

Personal Experience Living Room Experience

Media Consumption Devices will open entire new markets while revitalizing existing ones 3. Rise of Social and Gaming

Naruto Shippuden Gundam Wing The Last Airbender

Interactive consumption of media critical to reach users 4. Anti-Piracy

Legal solutions, platform, and proactive measures will drastically reduce the effects of piracy How to Make Money Online?

Media/Entertainment - US $204 Billion (USD)  Monetization: Subscription and

Music Advertising will still dominate. Gaming 5% 6%

DVD/BR  11% Distribution: Content needs to be

Broadcast TV everywhere. Social and anti-piracy 34% Movie are very important to grow mindshare. 5%

Satellite TV 10%

Cable TV 29%

The core businesses of subscription and advertising are still very viable. These core business models must be complemented by 360 degrees of periphery services to maximize content’s true value online. The New Model for Content Business

Core business is a freemium model of advertising and recurring subscription. Surround core businesses with a comprehensive set of periphery services to reach today’s audience. Leverage social gaming, anti- piracy, syndication and devices as marketing and user acquisition vehicles.

Web Stream (on-site) Anti- Piracy Console (xbox, (DMCA) wii, ps3) Traditional Models

TV Advertising (set-top, Embed net-tv) (mrss) Subscription

Mobile Feed (iPhone, Android, (twitter) iPad)

Social (facebook, myspace) Crunchyroll Platform lets Content Licensors reach Worldwide Audience Directly

CR Video Experience: Crunchyroll users can stream on CR.com, on facebook Robust system allows content to CR powers Anime videos on sites such as: apps, mobile devices, all with a single login TV.com (CBS), Atlusonline, PerfectWorld, ANN be seamlessly distributed across sites, platforms and devices

Since TV Tokyo started working with CR on Naruto: - Piracy down over 70% - Generating significant revenue - Naruto is a Top 10 brand in Yahoo and Google search