Agenda

Metacafe Overview The Metacafe difference Video business model Introducing Producer Rewards

TM

World’s largest independent video site

Global traffic

Pages viewed

Time spent on site

Only site that mines the collective wisdom of its audience to filter and surface the most entertaining videos

Best platform for connecting a large and global audience with high quality video content 

Metacafe Overview

Metacafe is one of the world’s largest video sites

17 million unique viewers and 500 million page views each month

– comScore, September 2006

3rd largest video site in the world behind YouTube and Google Video

– comScore, September 2006

Top 10 online entertainment destination for males 18-34 – Nielsen Net Ratings, Aug 2006

Metacafe is the Largest Independent Video Site

Source: comScore Media Metrix. September 2006

Monthly worldwide page views and unique visitors

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Page Views Unique Visitors

Over 400% growth since January 2006

Rapid Growth in Metacafe’s Audience

Source: comScore Media Metrix. Does not include viewers of client or embeddable player.

Worldwide unique visitors (MM)

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Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06

Rapid Growth in Metacafe’s Audience

Source: comScore Media Metrix.

800% growth since January 2006

Unique visitors US only (MM)

0.00.51.01.52.02.53.03.54.04.5

Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06

The Metacafe Difference

Metacafe: The Quality Difference

Metacafe is not a video sharing site – it is an online video destination

Metacafe surfaces and serves only “entertainment-grade” content. Video search “footprint” eliminates

duplicates & improves relevancy 100,000 reviewers filter out

inappropriate or uninteresting content VideoRank mines collective wisdom of

viewer to determine site placement.

Metacafe Community at Work

Thousands of videos submitted to Metacafe each day

Video footprint searcheliminates duplicates

VideoRank™ surfaces quality

content to top

VideoRank™ - Proprietary algorithms factor in all aspects of viewers’ interactions with video content to determine rating and placement on the site.

Video makes it to home page

100,000 reviewers filter out content that is inappropriate

or only interesting to a few

Total Views for top-200 items

520,000,000

540,000,000

560,000,000

580,000,000

600,000,000

620,000,000

640,000,000

YouTube Metacafe

Best Place to Watch & Distribute Quality Short Video

Comparison of top 200 views on October 13, 2006

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1-40 41-80 81-120 121-160 161-200

YouTube Metacafe

12% more views on Metacafe

Metacafe Discovers the Best of Long Tail Content

# of Views

Video submissions

Video sharing sites

Benefits to Video Creators & Content Owners

Any great short video can skyrocket to the front page based solely on content quality as determined by VideoRank

Content creators don't have to market their own videos or rely on being "noticed" by a content editor

Content partners can quickly discover the gems in their inventory

Online Video Business Model

Video Is An Exploding Market

Short video is joining film, music and TV programming as a key streaming entertainment format. 24% of all Internet users access videos at least once a week, while 46%

watch videos at least once a month (Online Publishers Association)

Approximately 80% of videos consumed online are short form videos, as opposed to full-length programming. (AP-AOL Poll)

Online video is expected to grow faster than any other form of Internet advertising, including search, reaching $1.5 billion by 2009. (eMarketer)

Revenue from mobile video for entertainment purposes could grow to more than $6 billion per year in the US by 2011. (Instat)

The Next Big Entertainment Opportunity

The market is looking for a steady stream of engaging short video clips that are licensed and ready to distribute on multiple platforms

Where will this content stream come from? Traditional media: costly, expertise in long format programming;

copyright concerns UGC: hard to control; no quality standard; copyright concerns but highly

scalable

Only 2 players have the content, traffic & global distribution to deliver “entertainment-grade” UGC video on a regular basis YouTube is focused on studios and major labels Metacafe is focused on best of class UGC

And now Metacafe is introducing a compelling new program to motivate creators to submit great content…

Metacafe NewsOct 30, 2006

Producer Rewards

Producer Rewards™: Packaging the Best of UGC Video = ULC

Producers are paid $5 CPM once views exceed 20,000 in exchange for licensing their content to Metacafe (non-exclusive)

During one month beta: Producer Rewards videos

were seen more than 10 million times

30 video creators earned more than $60,000 combined from their work

Metacafe gained rights to hundreds of UGC clips with proven appeal

Producer Rewards: Joe Eigo

Name: Joe Eigo Location: Toronto, Ontario Occupation: Martial artist Video: Matrix for Real Number Views: 4.5 million Average Rating: 4.83 $ Earned: $23,000

“It’s almost like winning a jackpot. As an independent video producer, you wouldn’t be able to make that level of income in 5 to 10 years of work, but with Metacafe, you can make thousands a month and reach an amazingly appreciative audience.”

- Tommy Chang, a martial arts master instructor & stunt producer

http://www.metacafe.com/watch/7203/matrix_for_real/

Producer Rewards: Brandon McConnell

Name: Brandon McConnell Location: San Diego, CA Occupation: Groundskeeper at the San Diego Zoo Videos: Amazing Spray Painting, Amazing Sprayer Number Views: 1 million+ Average Rating: 4.52 $ Earned: $5,300

“Metacafe is awesome. I've made thousands of dollars through ProducerRewards and sales of my paintings and videos at my site have tripled in the last four months. I get emails from people around the world saying things like 'you inspire me.”

- Brandon McConnell

http://www.metacafe.com/watch/129667/amazing_spray_painting/

Producer Rewards: Mark Exner

Name: Mark Exner Location: Grayneck, NY Occupation: Student Video: Orcas in Antarctica Number Views: ~200k Average Rating: 3.7 $ Earned: $900

“You can’t just tell people what it’s like to see real orcas in Antarctica, you have to show it. I plan to soon post some videos of penguins in Antarctica; they are very funny creatures!”  

- Mark Exner

http://www.metacafe.com/watch/181730/killer_whales_orcas_in_antarctica/

How it Works: Submitting A Video

Any short video can be submitted as long as it is owned by the creator and suitable for all audiences

Once a video is accepted, it’s exposed to Metacafe’s community of 13 million viewers It’s up to the Metacafe audience to determine the

success of a video Site placement is automatically determined by

VideoRank

Any great short video can skyrocket to the front page No promotion required on part of the creator

How it Works: Getting Paid

Content creators are paid $5 per 1,000 views

Payment begins after 20,000 views for all videos with a 3.0 rating or above

Viewers do not have to click through on an ad

Multiple payment options PayPal; Payoneer; Direct Deposit

Metacafe estimates that 30% of videos on the Metacafe site have exceeded the 20,000 view threshold

Company Background

Founded 2003 Arik Czerniak, CEO Eyal Hertzog, Chief Product Officer

Investors Accel Partners Benchmark Capital

Offices Offices in Palo Alto, CA and Tel Aviv, Israel