XOS Digital

vI

Kickoff with Vince Dooley on the SEC Digital Network

In this issue...

Main Feature ............... 1

Licensing ...................... 2

Legal Affairs ................ 3

Tech Update ................ 5

Industry News ............. 6

General News .............. 7

Get connected...

XOS DigitalSports Report

Learn More

Need Support?

ISSUE 03: October 2012

All football season, the SEC Digital Network is hosting the legendary Vince Dooley

every Friday morning at 10 a.m. EST.

Fans can watch post-game highlights from the week’s biggest games and hear Coach Dooley’s thoughts and analysis on the upcoming week.

SEC fans can catch the show on the SEC Digital Network website, www.secdigitalnetwork.com, SEC Digital Network YouTube or the SEC mobile and tablet apps, presented by PNC Bank.

The show also includes a full weekend TV schedule, conference news, player interviews, head coach interviews and classic flashbacks. Each week’s program is archived on SEC Digital Network as well.

Vince Dooley was the head football coach at the University of Georgia for 25 strong years. As he coached his players with great tactics and strategies, he led his team to six Southeastern Conference wins and a National Championship win in 1980.

After the 1980 season, Dooley was acknowledged as college football’s “Coach of the Year” by many different organizations.

After his 25 years of hard work and coaching for University of Georgia, Dooley became Georgia’s athletic director. Through this position, Coach Dooley built one of the most successful athletic programs in America.

01

Presented by:

XOS Digital02

Licensing NewsFeature Film

The Warner Bros Pictures film, “Trouble with the Curve,” hit theaters this month. The film

stars Justin Timberlake, Amy Adams and Clint Eastwood and features game action footage from many of XOS Digital’s licensing partners, and will be seen in the background of many scenes throughout the movie. Adding to the uniqueness of this particular licensing opportunity is the speculation that “Trouble with the Curve” will be Eastwood’s last on-screen effort in his storied career.

Primetime Sitcoms

This fall, a new comedy series starring Matthew Perry as a sports radio talk show host dealing with the recent loss of his wife, now on NBC. “Go-On” will chronicle Ryan King (Perry) as he makes his way through forced grief counseling meetings surrounded by hilarious misfit group members.

The show features a famous sports figure written into nearly every episode. The subject matter lends itself nicely to seamlessly incorporate archive game film into the background of many scenes.

XOS anticipates “Go-On” to frequently seek content from the XOS library to enhance the authenticity of the scenes.

XOS has also licensed footage from the following games to be used as incidental playback: -USC vs. Arizona football (09/23/2006) -Tennessee vs. Kentucky men’s basketball (01/28/2007) -Washington vs. Stanford baseball (04/22/2005) Digital Content Licensing

‘One of a Kind Films,’ based in Atlanta, recently finished development on a long-anticipated mobile and tablet application.

The UGA Vault app is a first-in-kind application that gives consumers the opportunity to access the most extensive collection of historic Georgia football content available anywhere.

The UGA Vault features recent and current season content as well as historic game film, with footage from a 1929 game versus Yale, for example.

This endeavor makes excellent use of XOS Digital’s advanced Vault technology that efficiently transforms archive game films into an easily accessible digital format perfect for viewing on today’s digital devices.

This app can be found by searching ‘UGA Vault’ in both the Apple and Google Play stores. XOS also cleared copyrights from the SEC, Georgia, the Cotton Bowl and Margate Entertainment for the game film featured in the application.

Trouble With The Curve

Industry Insider 03

Legal & Business AffairsRecord Labels Facing the Music: Artists Continue to File Lawsuits in Conjunction with Digital Download Rights

digital downloads and other new revenue sources have contested this issue with their labels.

This past March, it appeared that Sony had put to bed much of the legal nightmare over digital downloads, after coming to an $8 million settlement with a group of artists who had been battling the label for years.

Nevertheless, this month, separate lawsuits were filed in New York federal court by REO Speedwagon and William “Boz” Scaggs against Sony alleging the popular record label had breached recording contracts by counting digital downloads as “sales” rather than “leases” or “licenses.”

Sony is not the only record label being forced to face the music. James Taylor has recently filed a similar lawsuit against Warner Bros. Records after the result of two audits have purportedly turned up showing vast underpayments in digital royalties, while Universal has been dealing with litigation from catalog artists including The Temptations, Peter Frampton, Rick James, and Chuck D among others for this same issue.

With digital downloads continuing to grow each year and traditional sales of physical albums on the decline, the music industry is once again finding itself behind the times.

Absent re-negotiating past recording contracts or coming to swift settlements with many of its catalog artists, legal insiders believe litigation over the treatment of digital royalties will continue in the years ahead.

Since the advent of iTunes and other popular digital outlets, artists and record labels have

disagreed over the way artists should be compensated for the sale of digital downloads. In most traditional recording contracts, a “sold” record is treated differently then when a recording is “licensed.” For example, a royalty rate for a “sale” is usually between 10 and 15 percent for established artists, whereas a royalty rate for a “license” can be as high as 50 percent of net receipts.

As a result of this royalty discrepancy, rap artist Eminem sued his record label, Sony, alleging he was owed millions of dollars in past due royalties, as his iTunes and other digital downloads were inappropriately being categorized as “sales.”

In 2010, in what was a welcome victory for artists, the Ninth Circuit Court of Appeals in California sided with Eminem and suggested that digital downloads should be treated as “licenses.”

Since that time, catalog musicians looking to collect more money on

October 2012

“Royalty rate for a ‘sale’ is usually between 10 and 15 percent ... royalty rate for a ‘license’ can be as high as

50 percent”

XOS Digital

Vimeo are expected. In each case, the courts will be forced to interpret the 2nd Circuit’s reasoning in the YouTube case.

Hotfile has apparently received some 8 million infringement notices from copyright owners.

The plaintiffs in the Hotfile lawsuit, which include a group of Hollywood movie studios, contend that Hotfile has failed to reasonably implement a repeat infringer policy causing upwards of 90 percent of Hotfile downloads to include infringing content.

The movie studios believe that the YouTube ruling tips in their favor, in that Hotfile had the ability to control the infringement and gain a financial benefit from such infringements.

The plaintiffs in the Vimeo case consist of many of the major record labels who allege that Vimeo engaged in much of the same infringing activity as Hotfile.

04

Legal & Business AffairsCopyright Decisions Looming for Hotfile and Vimeo

However, Vimeo contends that it has a pro-active system that allows users or other third parties to report videos for terms of service violations.

Additionally, it has a staff that manually reviews flagged videos for copyright violations. The company also has implemented a policy for terminating the accounts of repeat infringers.

Using the YouTube ruling to their advantage, Vimeo cites the court’s wording that “mere generalized knowledge” of likely infringing activity is not cause to deny safe harbor protections under the DMCA, and that pre-screening of video content is “an impossible task.”

Legal scholars are closely monitoring both outcomes and are curious to see whether either court seeks to broaden or add clarification to the YouTube ruling in the process.

It’s now been several months since the 2nd Circuit Court of Appeals revived Viacom’s historic

and contentious lawsuit against YouTube and handed down a major ruling on the liability of websites which host copyrighted material.

Both Viacom and YouTube were quick to proclaim some legal victory in the 2nd Circuit’s decision; however, most legal observers felt the ultimate issue concerning an internet service provider’s “right and ability to control” infringing activity under the safe harbor provisions of the DMCA was largely left unanswered.

Before the end of the year, two important copyright infringement decisions, the first involving cyberlocker Hotfile and the second involving popular video website

Upwards of 90 percent of Hotfile downloads to include infringing content.

Industry Insider

Consumer Tech Update

05

Here Comes Windows 8, Now with AppsSource: Techcrunch.com

month or so, very few have any concrete plans to do so and even fewer were actually working on Windows 8 apps already (the same, by the way, remains true for Windows Phone).

Maybe the real killer app for Windows 8 – and especially on the tablet – is Microsoft Office anyway, but that’s probably more of an argument for business users and most businesses and enterprises aren’t likely to switch to Windows 8 very soon. Right now, to get consumers interested, Microsoft needs more good and distinct apps in the Windows Store before Windows 8 launches. There is still time until October 26, of course, but the first crop of apps that is currently available is disappointing.

Editor’s Note: XOS Digital partnered with Microsoft and Nokia to publish the first college sports app on the Windows 8 platform, the SEC Digital Network. XOS will also be publishing other college sports apps on Windows Phone and Windows 8 platforms this month in an effort to provide all smartphone users a way to connect with their favorite conferences and teams.

Love it or hate it, but Windows 8 will soon arrive on computers around you. While virtually

all of your old programs will likely run without a hitch in desktop mode, it’s the Windows 8 Metro interface (or whatever Microsoft now wants to call it), that brings the biggest changes to the OS for users and developers alike. What Microsoft really needs right now more than anything else, though, is applications that can showcase the power of the new Windows 8 user interface. The company is still working to bring other developers on board, but for the time being, it doesn’t look as if there will be a lot of content available for Windows 8 that users aren’t already familiar with on other platforms.

Microsoft has worked hard to get developers on board with Windows 8 and now that they can even use JavaScript and HTML5 to write Metro apps, the number of developers who could write apps for Windows without facing

a major learning curve is huge. Given the size of the Windows ecosystem, there is also massive revenue potential for developers who can score a hit in the Windows Store.

Still, most of the companies I talk to every week aren’t even thinking about Windows 8 yet (and very few are even thinking about Windows Phone at this time). I started asking developers about their plans for Windows 8 ever since Microsoft launched its first public “consumer preview” in February. While I’ve noticed a slight uptick in developers who tell me that they are keeping an eye on Windows 8 over the last

October 2012

SEC Digital Network Windows App

XOS Digital

XOS’ Licensing team is pleased to announce the annuity contract extension

with long-running licensee, the NFL Network! The NFL Network extensively covers highly sought-after prospects and highlights many of their athletic achievements throughout their collegiate careers in yearly NFL Draft coverage. The effort to provide in-depth player highlight packages requires many man hours from the content sourcing team at here at XOS. This contract extension is good for all licensing partners, as the NFL Network coverage is positive exposure for both standout athletes and the schools they play for.

We are also pleased to announce a new service offering to create and manage official conference and team branded YouTube channels as part of the XOS Digital Sports Network platform.

XOS Digital will build and manage branded YouTube channels for several of its current collegiate athletic partners including: the Southeastern Conference, BIG EAST Conference, Mid-American Conference, Southland Conference, Sun Belt Conference, the National Football Foundation, NCAA Football, the University of Florida and Florida International University, with more in coming months. All of these channels are part of the XOS Digital Sports Network on YouTube which can be accessed at www.youtube.com/xossportsnetwork.

06

Industry NewsThrough this new partnership, XOS Digital can now provide its sports partners with the ability to publish, manage and monetize original content and live events on the YouTube platform directly through the XOS Vault™ digital asset management system.

The official YouTube channels enable XOS Digital to publish partner events such as press conferences, interviews and awards ceremonies, and then make them available On Demand immediately after they conclude. In addition, live events can be streamed on a YouTube channel, which provides partners with another opportunity to connect with fans. Plus, partners retain full editorial and creative control.

“We’re always looking to expand our digital network offering in ways that benefit the audiences we serve,” XOS CEO McCleary said. “Partnering with YouTube benefits both fans, by adding another convenient access point to watch their favorite sports videos, and brands, enabling them to expand their reach.”

Industry Insider 07

General NewsNew Products

Teams are looking to XOS Digital for ways to provide fans with live stats and scores.

In response, XOS now provides a device called a ScoreBot which connects to video boards at venues across the country. This new Live Score Service provides real time, live scoring data to feed a number of applications. XOS installs and manages the service end-to-end and equips clients with a complete data feed of scoring information, guaranteeing accuracy down to one-tenth of a second. The ScoreBot brings automated scores, ads, graphics and real time video and data right to fans on mobile and tablet applications.

New Digital Networks

XOS welcomes new Digital Network partners including the Sun Belt, National Football Foundation, Florida International University and PAC-12.

XOS Digital is Moving

XOS Digital is excited to announce we will be moving our Lake Mary headquarters to the heart of Downtown Orlando.

The relocation will begin in December and wrap up in spring of 2013 in order to keep the technology infrastructure in place throughout the football and basketball seasons.

“This is an exciting time for XOS, as we are quickly expanding and outgrowing our current office,” said Mark Hudgins, Executive Vice President of Finance and Administration.

XOS Digital will host a grand opening and ribbon-cutting ceremony after the final stage of relocation this spring. We invite all sports organizations that find themselves in Orlando, whether it be for work or pleasure, to stop by XOS Digital for a tour to get a behind-the-scenes look at the leading provider of content management solutions and digital media services for collegiate and professional sports organizations.

XOS is co-headquartered in Orlando and Wilmington, Mass. For more information and the latest XOS Digital news, please visit our newsroom.

For Your Entertainment

Have you ever seen a marching band do this? Skip to minute six for our favorite part!

Contributing Writers

Jared Kalmanson Esq., associate general counsel

Nathan Christopher,director - consumer marketing

Scott McDonald, partner relations coordinator

Becca Greenwood, corporate communications coordinator

XOS will move to Downtown Orlando

October 2012