Jim Benz, Vice President of CSG International, discusses effectively monetizing video content over the internet. He introduces CSG, which has experience in digital content and the pay TV market. New technologies allow video to be monetized across devices. Case studies show how CSG helped companies launch online video stores. Russia is an opportunity due to market trends like increasing internet speeds and device adoption. CSG is well positioned to help Russian companies succeed with digital content.

1. Effectively Monetizing Video
Content Over the Internet in
North America
5 March 2012
1 © 2011 CSG Systems International, Inc. Confidential and Proprietary

2. Introduction
 Jim Benz, Vice President Business Development
 20+ Years Cable Experience
 6+ Years in Digital Content
2 © 2011 CSG Systems International, Inc. Confidential and Proprietary

3. Today’s Topics
 Introductions – CSG International
 CSG’s Cable Experience and Pay TV Market Trends
 CSG’s Online/Digital Media Division
 Latest technologies to monetize video content over Internet.
 Case Studies:
• Monetizing Video Content Over the Internet in North America
 CSG in Russia/CIS
3 © 2011 CSG Systems International, Inc. Confidential and Proprietary
Content Direct

4. CSG International
– Publicly traded (CSGS)
– 2nd largest BSS provider worldwide with 500+ clients
– Interact with 45M consumers every day
– Process $4B+ monthly financial transactions
– 36 offices in 24 countries around the globe
– Serving tier 1 brands across the globe
EMEA APAC AMERICAS
4 © 2011 CSG Systems International, Inc. Confidential and Proprietary
Content Direct

5. Cable/Satellite/Broadband Experience
 Ranked no. 1 in North American cable billing market
 Clients include top NA Cable and Satellite companies
including Comcast, TW Cable, Dish & Charter
 Strong client focus, R & D investment
 Long term customers
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6. CSG Customers
Example of supported Cable/Satellite/Broadband Service Providers
 Support customers at all levels (Tier 1, 2 and 3)
 30 Cable/Satellite/Broadband customers
 Largest provider serving ~16 million subscribers
 Smallest provider serving ~10,000 subscribers
6 © 2011 CSG Systems International, Inc. Confidential and Proprietary

7. Pay TV Market Trends
 Economic Slowdown Impact
• Delay of countries moving to digital
• Increasing opportunity for Pay-TV operators
 New Competition
• Telcos, OTT providers, Content Aggregators, Content Creators
 Rapidly Changing Customer Expectations
• Customer centric, devices, “a la carte” programming
• Audience demographics = younger audiences
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8. Pay TV Market Trends (continued)
 Video Content Convergence
• Merging content from shows and internet industry
• Online video, Mobile video, TV Everywhere
• Advance Advertising: Digital, Targeted, Product Placement, Brand-
funded programming
 Devices are an extension of the user experience
• Devices enable customers to watch quality video anytime/anywhere
8 © 2011 CSG Systems International, Inc. Confidential and Proprietary

9. Global Video Market Trends
1. Video Competition is rising
2. Tablets and mobile devices are changing
the way customer consume video
3. Technology has made online video viable
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10. Over the Top Today
Delivers Over the Top… Content from the Cloud
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11. Content Direct
Digital Content Monetization
• Broadband &Mobile Content Monetization Platform
• Subscriber, Content & Commerce Management
• PCI, SSAE16, Safe Harbor certified
• Delivered as SaaS or Dedicated Enterprise Models
11 © 2011 CSG Systems International, Inc. Confidential and Proprietary
Copyright 2011 Proprietary & Confidential to CSG International
Content Direct

12. Technology needed:
Effectively monetize video
content over the Internet
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13. Content Direct
Premium Digital Content Management &
Monetisation
Digital Content Supported
Video (VOD & Live), Games, Digital Books, Music, etc.
Models Supported
Commerce – Advertising – Merchandising
Devices Supported
Tablets – Mobile – Connected STB and TVs – PC/Mac
Global Support
Multi-Language – Multi-Currency – Global Taxing
13 © 2011 CSG Systems International, Inc. Confidential and Proprietary

14. How Content Direct can help
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15. Content Direct “Smart” Locker
iPad
Silverlight
Content Direct “Smart” Locker
Device Content Direct DRM
Profile Access Policies Keys
Credentials Locker
RTMP/E & Security Entitlements
AES PlayReady Profile
Access 2
DRM DRM
DRM Subscriber
Apple Adobe Microsoft Subscriptions
Video Video Video Device
Authentication Registered Devices
Format Format Format
Content Direct Content Management Content Direct Subscriber Management
15 © 2011 CSG Systems International, Inc. Confidential and Proprietary
Copyright 2011 Proprietary & Confidential to CSG International
Content Direct

16. Content Marketplace Results
 Moved traditional broadcast video to create new online
revenue streams
 Created new customer opportunities by syndicating content to
partner sites and social media (Facebook)
 Video content available across iPhones, iPads, android devices,
tablets and internet connected TVs
 Content is protected via DRM policies
 Video experience is HD quality
17 © 2011 CSG Systems International, Inc. Confidential and Proprietary
FOR INTERNAL USE ONLY
Copyright 2011 Proprietary & Confidential to CSG Systems Content Direct

17. Case Studies:
Effectively Monetizing Video
Content in North America
18 © 2011 CSG Systems International, Inc. Confidential and Proprietary

18. Why US Companies Choose Content Direct?
1. Experience and High Functionality
2. Time to Market
3. Robust Full Suite solution or Components
4. Low CapEx
19 © 2011 CSG Systems International, Inc. Confidential and Proprietary

19. Paramount UV Video Store
20 © 2011 CSG Systems International, Inc. Confidential and Proprietary
Copyright 2011 Proprietary & Confidential to CSG Systems
Content Direct

20. Sony Pictures
21 © 2011 CSG Systems International, Inc. Confidential and Proprietary
21 Copyright 2012 Proprietary & Confidential to CSG International

21. NBC Universal Sports – Live Sports Storefront
Model
• Live and On Demand Sports
• Single Subscription Tier did not work
• Micro Subscription around affinity
• Pay Per Event saw dramatic uptick
• Promo to Subscription Migration
• Package/ Bundle Upsell
Content Direct Components
• Subscriber Management
• Content Management
• Commerce Management
• Ad Management
• Web Service Integration
• Content Metadata Ingest
22 © 2011 CSG Systems International, Inc. Confidential and Proprietary
Copyright 2011 Proprietary & Confidential to CSG International
Content Direct

22. Social Network Storefront
Model
• Event-based transactions
• Leverage Facebook Identity, Social
Graph, Likes, Share & Facebook
Credits
• Rental / Purchase Models
• Streaming Content
Content Direct Components
• Subscriber Management
• Content Management
• Commerce Management
• Linked Identity / SSO (Facebook)
• Coupons, Promotions
• Video Player / DRM
23 © 2011 CSG Systems International, Inc. Confidential and Proprietary
Copyright 2011 Proprietary & Confidential to CSG International
Content Direct

23. OnLive - Gaming Storefront via Web Services
Model
• Subscription Gaming Model
• Passes, Promos, Trials, Coupons
• Physical & Virtual Goods
• In Game Purchase
Content Direct Components
• Subscriber Management
• Content Management
• Commerce Management
• Web Service Integration
• Physical Goods
• International Footprint
24 © 2011 CSG Systems International, Inc. Confidential and Proprietary
Copyright 2011 Proprietary & Confidential to CSG International
Content Direct

24. Russia & CIS
25 © 2011 CSG Systems International, Inc. Confidential and Proprietary

25. CSG Investment in Russia/CIS
 CSG Office and staff in Russia/CIS
 Successful implementations in Russia/CIS countries since 2003
 Expanding CSG Partner teams in the region
 Content Direct Product localized for Russia
26 © 2011 CSG Systems International, Inc. Confidential and Proprietary
FOR INTERNAL USE ONLY
Copyright 2011 Proprietary & Confidential to CSG Systems Content Direct

26. Russia/CIS Localized Product Example
27 © 2011 CSG Systems International, Inc. Confidential and Proprietary
FOR INTERNAL USE ONLY
Copyright 2011 Proprietary & Confidential to CSG Systems Content Direct

27. Russia/CIS Localized Product Example
28 © 2011 CSG Systems International, Inc. Confidential and Proprietary
FOR INTERNAL USE ONLY
Copyright 2011 Proprietary & Confidential to CSG Systems Content Direct

28. Russia/CIS Localized Product Example
29 © 2011 CSG Systems International, Inc. Confidential and Proprietary
FOR INTERNAL USE ONLY
Copyright 2011 Proprietary & Confidential to CSG Systems Content Direct

29. Russia/CIS Localized Product Example
30 © 2011 CSG Systems International, Inc. Confidential and Proprietary
FOR INTERNAL USE ONLY
Copyright 2011 Proprietary & Confidential to CSG Systems Content Direct

30. The Russian Market Opportunity
31 © 2011 CSG Systems International, Inc. Confidential and Proprietary

31. Russian Market Trends
 Small video on demand (VOD) usage/revenue for cable/IPTV
operators ( < 5%)
 Very limited multi-device support (Video content available across
iPhones, iPads, android devices, tablets and internet connected TVs)
 Operators are building a new generation of Content Distribution
platforms
 High Speed internet becomes more and more available in large cities
across Russia ( ADSL, Wimax,3G). LTE will be rolled over starting
from 2012.
 Accelerated adoption of smartphones , tablets and mobile laptops
creates a big audience for Video Content over Web
32 © 2011 CSG Systems International, Inc. Confidential and Proprietary
FOR INTERNAL USE ONLY
Copyright 2011 Proprietary & Confidential to CSG Systems Content Direct

32. Perfect Opportunity for Digital Content
 The Market is in complete disruption as over the Top Services
are entering the marketplace.
 Technology can now support quality digital experiences
• Over-the-top models have aggressively moved into the
marketplace.
 Market for premium digital content is increasing globally
- Driven by consumer expectations tablets, video, 3G
 Customers want content everywhere, all of the time…and will
pay for quality content, unique content and experiences
33 © 2011 CSG Systems International, Inc. Confidential and Proprietary

33. Your Opportunity for Digital Content
 Improves “Stickiness” with your client base
• Unique experiences, Bundling of services
 Strengthens your long-term position with customers
fights “dumb-pipe” syndrome
 Additional Revenue opportunity with current customers
• And competitors customers!
The time is now!
34 © 2011 CSG Systems International, Inc. Confidential and Proprietary

34. Thank You!
Jim Benz, Vice President Business Development
jim.benz@csgi.com
Leonid Belsky, Business Development Director, Russia & CIS
leonid.belsky@csgi.com
CSG Office ( Russia/CIS)
Phone: +7 495 225 8684 I Fax: +7 495 225 8500
Building 4, 4th Lesnoy Lane, Moscow, 125047
35 © 2011 CSG Systems International, Inc. Confidential and Proprietary

35. Thank You!
CSG Office: +7 495 225 8684 I Fax: +7 495 225 8500
Building 4, 4th Lesnoy Lane, Moscow, 125047
36 © 2011 CSG Systems International, Inc. Confidential and Proprietary