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THE OPPORTUNITY

“OTT, Going where the viewers are”, 8/27/18

“Stations are in a unique position to take full advantage of OTT.”

1978 1981

TV stations produce… TV shows I want my… Alternative

KEY INFLUENCES: GROWING UP IN NYC

1989 20152000

Think like an… underdog

Fandom is… criticalStreaming is… for real!

30+ YEARS IN MEDIA

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WHY NOW?

WHY SINCLAIR?

WHY NOW?

0

25

50

75

100

125

2005 2010 2015 2020

Us

Them

More of Them

OBLIGATORY “WAKE UP CALL” GRAPH

“Cord Cutters, Cord Shavers, Cord Nevers"…

KEY ADVANCEMENTS

1970 2002 2005 2007 2008

“The Box” Streaming Download TV Shows The Rise of OTT

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Is it really about CORD whatever-ing?

BOX switching?

or

THE BATTLE OF THE HDMI

“ TV Episode IV - A New Hope ”

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65.3 MILLION

Source: Nielsen NPower, November 2017. Total US Households, Excludes BBO Homes, Connected TV device = Video Game consoles, Smart TVs, Roku, Apple TV, Chromecast or Fire TV.

US HOMES OWN ONE!

59% OF US HAVE GONE OTT!

THEY’RE WATCHING…

Source: Kagan “OTT Services & Devices” database, Q2 2018

THE RISE OF AD SUPPORTED OTT-TV

Source: Kagan “OTT Services & Devices” database, Q2 2018

DRIVING RISE IN AD SPEND

• OTT spending up 750% year to year

• $20 billion by 2021

• It’s actually TV - viewers expect a lean-back long form experience

• LINEAR TV VIEWING

• Longer session times

• High quality, brand safe environments

• With less commercials - More :30 / less :15

• Targeted rich analytic driven addressable opportunities

Rise in data - driving in local OTT ad growth

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WHILE OTT ADVERTISING IS GROWING…

ALMOST ALL CONTENT SERVICES IGNORE LOCAL.

LOCAL NEWS IS A GIGANTIC OTT OPPORTUNITY

Source: THE NIELSEN WATCH REPORT, Q4 2017

51% of streaming device owners typically watch local news.

1-2 DAYS

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WHY SINCLAIR?

SINCLAIR DOUBLES DOWN ON LOCAL

• 2300+ hours of local news every week• 191 TV stations across the US• 607 over-the-air channels• 89 US Markets• New Regional Sports Network - Cubs• 40 million uniques a month • 45 million Facebook fans• Leader and innovator in local advertising solutions• Ability to promote on… TV• National OTT footprint

Source: THE NIELSEN WATCH REPORT, Q4 2017

OTT TV Markets DMA

1 Los Angeles 1 New York

2 Washington D.C. 2 Los Angeles

3 San Francisco - 3 Chicago

4 Atlanta 4 Philadelphia

5 New York 5 Dallas - Ft Worth

6 Seattle 6 Washington D.C.

7 Chicago 7 Houston

8 Denver 8 San Francisco -

9 Dallas - Ft Worth 9 Boston

10 Sacramento 10 Atlanta

11 Orlando 11 Tampa - St Pete

12 Boston 12 Phoenix

13 Houston 13 Seattle

14 Portland 14 Detroit

15 Philadelphia 15 Minneapolis - St Paul

16 Baltimore 16 Miami - Ft. Lauderdale

17 Phoenix 17 Denver

18 Minneapolis - St Paul 18 Orlando -

19 Miami - Ft. Lauderdale 19 Cleveland -

20 Charlotte 20 Sacramento -

21 Detroit 21 St. Louis

22 Tampa - St Pete 22 Portland, OR

23 St. Louis 23 Charlotte

24 Cleveland 24 Pittsburgh

25 Pittsburgh 25 Raleigh

OTT TV Markets DMA

26 San Diego 26 Baltimore

27 Salt Lake City 27 Nashville

28 Jacksonville 28 Indianapolis

29 Las Vegas 29 San Diego

30 Columbus, OH 30 Salt Lake City

31 Austin 31 San Antonio

32 Providence, RI 32 Kansas City

33 Norfolk - 33 Hartford - New Haven

34 Cincinnati 34 Columbus, OH

35 Hartford - New Haven 35 Cincinnati

36 Raleigh 36 Milwaukee

37 New Orleans 37 West Palm Beach -

38 Dayton 38 Greenville - Spart - Asheville -

39 Ft. Myers 39 Las Vegas

40 West Palm Beach - 40 Austin

41 Kansas City 41 Harrisburg -

42 San Antonio 42 Jacksonville

43 Richmond 43 Birmingham -

44 Milwaukee 44 Norfolk -

45 Buffalo 45 Oklahoma City

46 Oklahoma City 46 Greensboro -

47 Nashville 47 Albuquerque -

48 Albuquerque - 48 Louisville

49 Louisville 49 Grand Rapids -

50 Tulsa 50 New Orleans

Source: THE NIELSEN WATCH REPORT, Q4 2017

TO

P 2

5 26-5

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INTRODUCING STIRR

• A new free ad supported OTT service

• All key platforms

• Line up of linear TV channels and VOD

• Customized by market

• Local First: STIRR City Channel - 24/7

• Live News, Sports, Entertainment, Movies, Lifestyle, Family, Game Shows and more

Select City Live Local News Watch TV

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INITIAL RESULTS

• Launched on 1/16/19• 75% of downloads come from OTT• 24% iOS and Android• 1% desktop• Weekly growth among all key metrics• Multiple sessions per user• 40+ minute session times• 65% Linear / 35% VOD• Most watched channel - STIRR CITY

|23Source: eMarketer July 2018. Ages 18+ who no longer have access to traditional Pay TV services.

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