ni f ty tv standards mar2009 with chart

Company Background

Network Foundation Technologies (NFT) is the leader in online distributed

b d i i li i i LIV d l l idbroadcasting, specializing in LIVE events and long play video.

Founded in 2001, 40 employees, offices in Ruston, LA and Los Angeles, CA.

NFT enables the creation of online broadcast networks for both live and

pre‐recorded content.

Ongoing support from the National Science Foundation for our unique

work in distributed broadcasting (NSF SBIR IIP‐0750136).

One Patent issued (#7,035,933); Three additional patents have been

“allowed” by the Examiner (about to issue); Six additional patents pending.


Management Team

Marcus Morton, Co‐founder and PresidentBusiness entrepreneur, in music, film, multi‐media and technology.

Co‐founder, along with Mike O’Neal, of OneNetNow.com, sold to EarthLink in 2001.

Former VP of EMI Records, senior West Coast officer.

Dr. Mike O’Neal, Ph.D., Founder and Chief ScientistInventor of NFT’s patents.

Former Chair of Computer Science at Louisiana Tech Univ.; Larson Professor.

Ph.D. in Computer Science.

Michael Chin, Chief Operating OfficerFormer Global Head of Customer Relationship Management systems for Apple.

Co‐founder of Vroom Technologies, system software for the Telecom industry.

25 years Technology Industry experience; including Symantec and Time Warner.

John Grindley, Vice President of Operations• Former Executive Director, Robinson Film Center, Shreveport, Louisiana.

• Former Marketing Director for Fox Sports Net Arizona, KSAZ/FOX and KUTP/UPN45.

• Ten year career in television and film industry.


• Recipient of the first annual “40 Under 40” Award – Given by the Greater Shreveport Chamber of Commerce.

• BA in Communications, Northeast Louisiana University.

We bring television to the Internet

• Increase online viewership by as much as 30-40 Times over

t PPV ff tcurrent PPV efforts.

• Build on fan affinity

• Grow relationship with geographically displaced fans• Grow relationship with geographically displaced fans

• Monetize non-network content (cheerleaders, interviews, bios)

• Build fan loyalty with behind the scenes accessBuild fan loyalty with behind the scenes access

“The league (AFL) seemed to have picked a few teams to showcase on TV and selected a few others to broadcast on the AFLNET, the rest of us were left without a way to see our teams when they were out ofwere left without a way to see our teams when they were out of town. When they announced this year that all af2 games would be shown on NiFTyTV our fan base was thrilled. I haven't missed a single game this season because of your efforts.”

St Lit k C d P k TX


- Steve Litaker, Cedar Park, TX

Empowers Dramatic Cost Savings


Traditional Streaming Model

• Central server distributes video feed.

• Content owner pays for each connection viewing the streamconnection viewing the stream.

• Also referred to as the “CDN (Content Delivery Network) Model”.

Diffi lt t l i hi ft• Difficult to scale; viewership often “capped” to avoid excessive bandwidth cost and network congestioncongestion.

• Economics favor ISP and Bandwidth providers.


NiFTyTV Distributed Model

• Central server distributes limited number of direct feeds.

• Users receive video feed through network of users.

• Excess bandwidth of audience is used to distribute broadcast.

• Web traffic efficiency improves with more viewers.

• Scalable architecture, service more viewers with existing infrastructure.

• Content owner pays for a limited number of streams.

• Economics favor content and


Economics favor content and network infrastructure providers.

How NiFTy TV Differs from P2P

• NFT’s core algorithms implement a distributed broadcast technology that overcomes many of the problems associated with P2P (peer-to-peer) systems.

• NFT’s network architecture is tailored to deliver live broadcasts, not just pre-recorded material as with P2P.

• NFT’s technology does not continuously tap end-users’ bandwidth as with P2P, instead it only uses bandwidth while the end user is tuned to a programbandwidth while the end-user is tuned to a program.

• NFT’s technology does not store files on end-user computers. (To be effective P2P systems must cache content throughout the network.)

• NFT’s technology is polite. NFT immediately ceases use of end-user bandwidth when the end-user needs that bandwidth – while continuing to provide seamless video.

• NFT’s technology avoids “super-noding” – no node in a NFT network is ever asked to supply video to more than two other nodesmore than two other nodes.

• NFT’s technology delivers an exceptional Quality of Service. NFT networks use the turnover inherent in distributed networks (as viewers tune in and tune out) to promote the most reliable nodes to the most critical regions of the network, driving the network towards highly stable configurations.


Comparing Models

Viewing model

NiftyTVTraditional StreamingPay‐per view is barrier to entry to the Free‐For‐View ‐ Consumers pay

CriteriaViewing model

Bandwidth

Pay per view is barrier to entry to themost loyal fan.

On‐line viewership is low – none bycasual fan.

Content owner pays for each viewer

Free For View Consumers pay nothing.Advertising supported broadcasts.

Content owner pays for a limited numberBandwidth Expense

Content owner pays for each viewer.Costs are set by projected peak usage

(old cell phone method) .

Viewership is limited to control costs.

Content owner pays for a limited number of server connections. Usually a fraction of the cost of what the leading streaming companies charge.No limit set to viewership.

Branding

User Experience Windows Media Player or embedded b

Nifty allows simultaneous web surfing d th k hil ti i t

Limited opportunity with Windows Media Player or Flash.

Multiple brand opportunities w/ custom players, commercials and hyper‐links.

User Data

in web pages. Web model limits other web activity.

Limited data available on viewers and Demographic, geographic and specific

and other work while continuing to view video feed.Player icon on desktop allows quick launch of the Nifty TV player.


User Data Limited data available on viewers and user behavioral activity. user behavioral data is readily

available.

NiFTyTV Broadcast Model

• Free‐For‐View model– Long form television‐like viewing

– Eliminate barriers to engagement (no cost to the viewer)

– Burden of bandwidth cost not passed to the viewerBurden of bandwidth cost not passed to the viewer

• Patented technology – Dramatically improves broadband network efficiency

– Maximize existing infrastructure; scales easily as audience grows

– Reach large audiences at much lower costs than traditional solutions

– Optimized for both live and pre‐recorded contentOptimized for both live and pre recorded content

• Extensive brand opportunities – Branded players, pre‐roll, interstitial, hyper‐linked scrolls


– Capture of DATA: geographic, demographics and viewing activity

NiFTyTV Players Can Be Branded!

New 16:9 widescreen format. Significantly improved bit rate presulting in Higher Quality Picture.

Your audience will receive a 300‐350receive a 300 350 Kbps (or better) feed. Up from 250 Kbps or 175 kbps in 2008.

Ad Scroll in Full Screen mode: a CNN‐style 'ticker' at the bottom of the screen below the

Result: The picture quality will improve for ALL viewers in 2009 and approximatelythe screen below the

video image. Scroll is now available while player is in full screen mode.

approximately DOUBLE for most viewers.


NiFTyTV Players Can Be Branded!

Custom Branding – Your Logo Here

Linkable scroll bar –

Multi‐Channel Selector(multiple video stream

can be accessed thru a simple player)

Linkable scroll bar Click to any site, link is dynamic, can change

constantly.

Introduction of VOD

Volume Control

Introduction of VOD (Video On Demand) for games that are outside of the one week "encore

t ti " ti


presentation" time frame. Full Screen Toggle

Live Online Sports Market

• Large availability of content

– No traditional media contracts

– Events are already being produced and recorded

– Loyal fan base interested in live events

– Advertisers love sports

• Challenges with LIVE online sports events– Bandwidth – cost increases proportionately to number of viewers

Viewing audience are often “capped” to keep down costs– Viewing audience are often capped to keep down costs

– Content owners pass the cost of bandwidth to the user

– Pay‐per‐view creates barrier to entry for the viewer & punishes loyal sports fan

Long duration content puts strain on traditional streaming infrastructure model


– Long‐duration content puts strain on traditional streaming infrastructure model

NiFTy Partners

• Official Online Broadcaster for:– arena football 2 (29 Teams, entire season, 250+ games)

– Central Hockey League (two complete seasons, 1100+ games)

– National Pro Fast Pitch

– USA Judo

USA Weightlifting Championships– USA Weightlifting Championships

– World Pro Handball 2007 U.S. Handball 4‐Wall Nationals

– The International Baseball Federation (IBAF) 37th Baseball World Cup (Taiwan)

41 games in 2 weeks, 70 countries, 6 continentsg , ,

– 2007 German Bundesliga Baseball Finals (Germany)

– 2007 European Baseball Championship (Barcelona)

– Total Fighting Alliance (TFA) events (Martial Arts)

– Millennium Series – Disney French Open” Paintball Championship (Paris)

• Non‐Sports– 13th & 14th Annual California On Location Awards (COLA)


– The Miss Louisiana Pageant 2007 and 2008

– Barksdale Air Force Base 2007 and 2008 Air Shows

“Sports is our Beachhead”

What af2 fans are saying: af2 and CHL League Geography:

“the replays and getting to see the teams that most of the time I don't get to is great.. It's almost like af2 sundayticket”

“So I'm watching the Lexington game on one computer and the Austin game on another.I have to say, this is pretty sweet. I'm very impressed so far…”

"I have to say the af2 TV went off really good. I watched almost all or parts of all the games. It's really going to help me vote for the fan poll.”

“It far exceeds what our expectations were when we moved into the free model.” Bob Hoffman, Director of C i ti CHL t d i


Communications, CHL as reported in the Loveland, CO Reporter‐Herald

af2 Case study

• Before:– $6.95 pay‐per‐game

– Limited online audience, unhappy fans

• After:– 35X more viewers for the season than with PPV

– Choice of Home or Away team audio feed

– Another stadium full of fans tune in to watch af2 games online each week

– Viewership from all 50 States and the District of Columbia and at least 39 foreign countries, located

5 ti t i l di N th A i S thon 5 continents, including North America, South America, Europe, Asia, and Australia.

Using NFT’s Free-For-View NiFTy TV product,

“I'd have to believe the AFL would switch. Nifty is so much better than the current


this season af2 reached approximately THIRTY-FIVE TIMES last year’s Pay-Per-View audience.

better than the current AFLNET. “ – Sykotyk

CHL Case study

• Before:– 3‐years of Pay‐Per‐View (PPV)

– $7.95 pay‐per‐game

• After:– 1st Pro League to stream full season LIVE & FREE– 1 Pro League to stream full season LIVE & FREE

– More viewers in first 3 weeks than previous 3 seasons combined!

– 40X more viewers per game than with PPV40X more viewers per game than with PPV

– Choice of Home or Away team audio feed

– Viewers from all 50 states and D.C., and 57 international countries across the globeinternational countries across the globe

“Using [NFT's] product, CHL's online audience increased by 4,000% this season with i b d i d l ' i Off i ”


Free‐For‐View broadcasting, compared to last year's Pay‐Per‐View Offering.” ‐ Bob Hoffman, Director of Communications, CHL

Putting the Increase in Perspective

CHL / af2 Audience Size

Before NiFTy After NiFTyy y

2007 2008

Online audience increased by a factor of y35 ‐ 40 (3,500% to 4,000% ) over previous season’s pay per view. In other words for both the CHL and af2 their 2007 pay‐per‐view audiences were less than 3% of their


2008 free‐for‐view audience.

Real World Results


How they stack up!


NiftyTV Product Offering

• Product Services:

Live broadcasts; single events entire seasons or series– Live broadcasts; single events, entire seasons or series.

– Pre‐‐recorded and archived content; “Coach’s Corner”, player profiles, “Game of the Week”, encore broadcasts.

– Dedicated online networks w/ multiple channels (live & pre‐recorded).

i d l• Business Model

– Fee for Service –for set number of events and/or continuous broadcast.continuous broadcast.

– Ad Supported – Revenue share based on sponsorship sold by client and/or NiFTyTV.


– Hybrid of both models.

Recent Product Enhancements

• Significantly improved bit rate resulting in Higher Quality Picture. – 800 Kbits per second (640 by 480 resolution at 24 frames per second – TV quality) for those viewers

with Internet connections capable of uploading at least 1 Mbit per secondwith Internet connections capable of uploading at least 1 Mbit per second.

– 350 Kbits per second (320 by 240 resolution at 24 frames per second – VCR quality) for all other viewers.

• VOD (Video On Demand) library of past broadcasts. VOD content is available both from the video player and branded web pages. VOD content can be paused, fast forwarded, and rewound. A “seek” feature is also supported.

• Ad Scroll in Full Screen mode: a CNN‐style 'ticker' at the bottom of the screen below the video image – now visible even when the player is in full screen modebelow the video image – now visible even when the player is in full screen mode.

• Step by Step Illustrated Instructions and “three‐click installation” make download and installation of your branded player a snap.

• “Invite a Friend” feature enables viewers to invite their friends and family to joinInvite a Friend feature enables viewers to invite their friends and family to join in on the fun and watch content through your branded player.

• A web‐based Broadcast Reminders tool that lets viewers easily schedule and manage alerts to be sent to their cell phones or email accounts prior to broadcast.


Opportunity

It’s the free television model that everyone already understands!

• Potential for increased revenue via advertiser sponsorship

• Reward loyal fans who now need “Never Miss Another Away Game!”

• Dramatically expand the exposure of your sport through online broadcasting of secondary, ‘fan‐centric’ content.

• Reinforces the image of your product as a forward looking, fan‐orientedReinforces the image of your product as a forward looking, fan oriented organization.


NiFTyTV in the News

fans get to kick theirfans get to kick their feet up and watch for free—like the old days of broadcast television. Red Herring

“The USA Weightlifting Championship competition is one of the most important weightlifting events of the year. Making the event available for viewing free over the Internet will generate more awareness for the sport of weightlifting and attract more young athletes ”


more young athletes.Arnold Schwarzenegger, Governor of the State of California and former Mr. Universe

We Bring Television To the Internet.

Questions?Questions?


ni f ty tv standards mar2009 with chart

Technology

nfts network architecture

nodes nfts technology

nft networks

p2p peer

enduser bandwidth

fan affinity

fan loyalty

fan base