Country Video Outlet Status Report

September 15, 2007

Prepared byThe AristoMedia GroupPO Box 22765Nashville, TN 37202info@aristomedia.comwww.aristomedia.com

Copyright 2007 AristoMedia

As visual images in entertainment marketing become an increasingly prevalent part of our daily lives, the importance of projecting a strong artist image through video should not be underestimated. Visual images in music continue to add to an artist’s ability to reach potential consumers and maintain strong relationships with their fans.

Over the past 3 years, we have seen use of music videos reach an unprecedented level on the internet. As television programming models change, music programming continues to reach more consumer’s TV and cable networks as well. Through this annual report, AristoMedia tracks the current outlets being used to showcase music videos. The following pages will display the resources AristoMedia works with in marketing music videos, and the varied approaches these resources take to maximize their own potential in reaching a wide range of consumers. The following outlets will be discussed in this report:

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• National Cable Networks • Internet Outlets

• Multi-Regional/Syndicated Outlets• Video Pools

• Closed Circuit Distributors• International Distributors

• Regional Programs• Specialty/Mixed Format Outlets

• Summary Overview

GAC Reaches 50 million cable households• Supports continued investment in long-form music based programming with productions such as Edge of Country, My Music Mix, GAC Nights, Positively GAC and featured artist specials with recent productions including Lonestar and Neal McCoy as well as new artists like John Corbett and Taylor Swift. GAC is also the exclusive television home of the Grand Old Opry. • Recent concert specials include: Kenny Chesney, Keith Urban, Brad Paisley Allison Krauss, Alan Jackson and a Riverfront Concert Series "Hit Men of Music row."• GACtv.com recently re-launched the website where videos can be seen on-demand. Currently averages 900,000 unique visitors per month. 5 million page views monthly and 250,000 monthly video plays.

CMT Approaches 85 million Cable Households • Viewership now exceeds 84 million cable households• Current programming using video content includes CMT Power Picks, the Top 20 Countdown, Wide Open Country, and new programs including Video Joint and the Top 10 Countdown featuring 10 videos from one artist. • CMT.com continues to gain traction as one of the most visited music and entertainment websites, and boasts unique content with the Studio 330 sessions, CMT Loaded and their own digital download service, “Urge.”•CMT is currently venturing in to the mobile era with the CMT Mobile Network, allowing users to stream full- length music videos on their cell phones.

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The networks below support country music television programming on a national level. The trends show that in order to have successful programming, you must have web representation as well. The outlets below are well-established names and have morphed web site development into their objectives to promote country music.

National Cable Networks

National Cable Networks (continued)

Pure stays true to Music Video programming• On air now for one year since converting from VH-1 Country, reaches 17 million households• Airs contemporary country music videos and catalog country favorites on a 24/7 basis with shows including Pure Vintage, Studio 330 Sessions, Up Close, Wide Open Country and the fan voted Pure 12 Pack Countdown.• On the web at www.CMTPureCountry.com

On-Demand is On Target for Music Choice• As the most popular On Demand network in the U.S., Music Choice has realized over one billion views since its launch, with recent statistics placing views at more than 55 million per month. • Available on over a dozen cable systems including Comcast, Time Warner and Cox Cable and to cable modem subscribers in 23 million households.• New in 2008: Look for an enhanced On Demand offering featuring thousands of videos, programmed and customizable channels and Music Choice Originals.

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Gospel + Country = Positive Message • Atlanta-based GMC was the first advertiser supported 24/7 network devoted to Christian and positive message music videos.• Regularly airs videos with a positive message from country artists. Devote Monday nights to Country and Southern programs. Recent playlists have included clips from Leann Rimes, Josh Turner, Emerson Drive, Tim McGraw and Rascal Flatts• Through their website and their on demand services they have reached more viewers on a regular basis.• Currently in 18.5 million households with projected growth expected to double in the fourth quarter of 2008.

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Internet Outlets

Online, music videos continue to gain traction among an ever growing and seemingly infinite audience. There are thousands of special feature, interview and promotion opportunities. Recent statistics are staggering. As of June of 2007, 1.1 billion people worldwide were online 1 and 40% of the U.S. population 2 viewed more than 7 billion videos in March of 2007 3. The average viewer consumed 55 video streams, or 145 minutes of video in the same month 4. While licensing issues continue, on occasion, to impede clearances between record labels and websites, the number of agreements cleared is steadily growing as videos become an integral part of the online experience.

1 Internet World Stats, June 10, 20072 Percentage based on U.S. population reported by U.S. Census Bureau, www.census.gov 3 Biz Report, www.bizreport.com, Viral Marketing June 15, 20074 Com Score, www.comscore.com/press/release.asp?press=1460, June 18, 2007

YouTube, MySpace, Facebook and Google Video - Four of the most recognizable names on the net these outlets depend on consumer generated content and represent a large amount of monthly impressions. Each network allows linking so consumers can post video links on their personal pages or profiles while we maintain overall control of the content.

Yahoo Music: In March of 2007, Yahoo received close to 11 million unique visitors to their video site. Other distinctive site features include reviews, top news stories, and lyrics index.

AOL Music: Features include countdowns, videos on-demand, artist interviews, photos, and trivia. In March 2007, reported 7.5 million unique visitors to the site.

CMT.com: Digital arm of the nations most well known Country Music television outlet. CMT.com hosts artist profiles and news pages for virtually all of country music's finest. Select videos are streamed online and are tied into the many features such as voting and fan discussion that CMT.com has to offer. Loaded, CMT’s broadband video player, has streamed more than 100 million videos since its launch in July 2006. CMT.com will now feature flash-enable video streaming, allowing an even wider audience of both PC and Mac users to view video on-demand.

Clear Channel Online Music and Radio: This service provides video content to all Clear Channel radio station websites, which have recorded 11.2 million cumulative online viewers to date.

GACtv.com: Features include the latest headlines, videos on-demand, artist photos, requests from fans that make up the Top 20 Countdown, sweepstakes and trivia. Reported current average of 900K unique visitors monthly to the site.

Goldbucklenetwork.com: Email goes out to 63,000 members and 500,000 additional newsletter recipients. Participates in monthly contests with country artists and provide feature placement for artist during contest period.

GotuitMusic.com: Maintains featured artist pages and has hundreds of thousands of unique visitors per month.

JustEnoughTV.com: “110% committed to independent artists,” JustEnoughTV receives150K unique visitors per month. JustEnoughTV also services content to MSNVideo.com.

ManiaTV.com: This streaming internet TV show runs 24/7 with all genres of music videos. In March of 2007, they had almost 4.5 million unique viewers.

Singingfool.com: This music video based website allows members to set up their own profiles and video playlists. Singingfool also services video content to AllMusicGuide.com, Billboard.com, Friendster, GuitarWorld.com and Entercom Communications radio station websites. Maintains newsletter that is sent to 350,000 members and industry contacts with feature opportunities and the most popular videos on the site regularly receive more than 30,000 plays per day.

Starstyle.com: This retail based site allows users to click through products in posted videos to purchase them online. They launched their Country service with Sugarland’s “Everyday America” in May of ’07 and the site currently pulls in thousands of unique views per month.

Yallwire.com: Launched in November of 2006, Yallwire.com is the country and Christian arm of Blastro Networks which also includes music video sites Blastro.com, featuring dance, latin and hip hop content and Roxwel.com, which includes rock and heavy metal. The entire network receives approximately 2 million unique page visits per month, with Yallwire receiving approximately 100,000 of those in its early stages of development.

As of August 2007, www.eMarketer.com reports that 21% of video downloaders are satisfied with the videos they’ve downloaded from the web. 19% of the sample interviewed, plans to download videos on the internet in the future. With the phenomenon of YouTube, that number will only continue to grow. There are immeasurable opportunities for video streaming on the internet. The following are the most significant websites that are maximizing exposure for country music videos.

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Internet Outlets

American Chart Show• Show airs video clips from current chart-topping records in mixed formats to over 25 million households.  • Program airs one hour weekly on the Black Family Channel Network based in Atlanta.

BlueHighways TV • Uses music videos on two series, The Sampler and Country Classics• Reach of 3 million households• BHTV currently in 3.5 million video-on-demand households and 100,000 cable households as a on-demand channel. BHTV expects to be in 2 million additional cable households as a 24/7 linear channel by the end of 2007.• The Sampler Focuses on “roots music” genres of bluegrass, traditional country, gospel, Western, folk, and blues. Also combines music videos, original performances, and lifestyle segments Country Classics: Series on Blue Highway that features classic country music videos from the 80’s and 90’s. Airs five episodes a week with each repeating 2-3 times per week.

Country Video Spotlight• Based in Cincinnati, reaches 10 additional markets including Louisville, Pittsburgh, Dayton, Indianapolis and Springfield, Illinois.  • One-hour video show includes interviews, artist news, and new artist features.  • Reaches 3.6 million potential viewers on Insight Cable systems. Music Row Profiles• Based out of Nashville, this one-hour music video television program reaches 8 million households. In Seattle WA, Waco TX, Dallas TX, Philadelphia, PA, and Clarksville, TN. Inside Music Row : Companion show to Music Row Profiles, utilizes interviews and news footage, in addition to music video content. Available in the same markets. Airs over the GameZnFlix satellite network.

Power Play Country• Syndicated show based in Newark, NJ with a weekly reach of 7 million households.  • Airs one hour weekly with multiple repeats and produces a wide range of music video and entertainment programming.  • Key markets include: New Jersey, Philadelphia, Baltimore, Detroit and Atlanta.

 

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The use of multi-regional shows is beneficial in maximizing the audience reach and capitalizing on the cross-promotions that are available from tours, local meet and greets, interviews, and other grassroots marketing efforts. The number of outlets below has doubled since last year’s report and will continue to grow throughout this year.

Multi-Regional and Syndicated Video Shows

Essentially a subscriber-based music video service, Video Pools distribute monthly compilation reels with family-rated content to locations that desire music video programming.  They are long-tenured companies with clients established in retail and entertainment, sending content to over 33,000 individual locations. The appeal of country videos is they provide appropriate content for all ages and therefore play an integral part in a video pools’ programming choice.

• The largest provider of out of home video content for retailers in North America. Reaches over 25,000 unique locations from 47 different clients

• Creates a variety of different reels geared toward their diverse client base, with one third of total content made up of Country music videos. In association with Channel M, country reels are programmed and distributed to restaurant and hotel chains including The Fox and Hound restaurant group.

• In addition, country clips can also show up on more mainstream reels used by chains including Ashley Furniture Home Store, Blockbuster, MGM Grand Casino, Steve&Barry's, and Steve Madden.

• Country reels are distributed to approximately 480 club locations and radio stations based on a subscriber system. • Opportunities for inclusion on mainstream reels occur here with distribution to retail outlets including 5-7-9, Macy’s, Circuit City, and Western Wear stores, nightclubs and restaurants such as Hard Rock Café, Dave and Busters, and Buffalo Wild Wings. These reels also go out to a variety of sports arenas, theme parks, casinos, and hotels.

• Recognized as an international design think tank that creates brand experiences for commercial environments. • Distribution to over 100 locations.• Sends country reels to AMF Bowling Centers.

• Includes the Rock America video pool service, which services night club and entertainment locations.

• Country content is included on a variety of retail programming shown at Virgin Megastores, FYE, Fred Meyer, Rent-A-Center and Rentway.

eVision • Services 225 different locations

• Uses Country videos on a limited basis on reels reaching entertainment destinations including Encounters, Pasadena, House of Blues on Sunset, and Princess Cruises and retail locations including Wet Seal and Arden B.

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Video Pools

Closed Circuit Distributors provide content within an internal network, unlike broadcast television where any correctly tuned receiver can pick up the airwave signal. Closed Circuit providers tend to target a specific network of businesses or locations.

Clubcom• Currently available in 250 clubs in the New York metro area. • Programming can be seen in Brunswick Bowling Allies and Health clubs including Gold’s Gym, Powerhouse, Lifestyle Fitness, New

York Sports Club and 24 Hour Fitness (includes mixed formatting).• In 2007, launched a new technology called ChannelCast. This allows club members several channel choices to pick from on the

personal viewing screens located on the cardio equipment.

Destination TV• Services a weekly reel to Gym TV (1,000 locations), Bar TV (400 locations), Hotel TV (over 70,000 hotel rooms nationwide), Jillian’s

(20+ locations) GETv Network (1,400 locations, 500,000 daily viewers).• Reaches a potential of 25 million+ viewers per month.

In-store Sports Network• Division of The Programming Group• Provides music for Champs Sports, Foot Locker, Footaction and Harley Davidson dealerships where country videos are especially

integral to programming.• Services 2365 locations with country videos on a limited cross-over basis.

RTO-TV• Currently services over 630+ retail locations.• Produces a 2 -hour video reel each quarter incorporating Country videos plus crossover Christian clips, and EPK/Interview footage.

Top Hits USA• Produce a monthly mixed format DVD reel.• Currently distribute to 375+ roller rinks and 400+ retail locations.

Travel Entertainment Network• Provides in-house music channel to over 25 hotels in four states.• Potential weekly audience of 60,000+.

VMS/VME Media• Produces a monthly reel that is distributed to 350 Djs and nightclubs.While many Video Pools are Closed Circuit distributors producing country-specific reels, there is a growing tendency to incorporate country music clips in to pop/adult contemporary mainstream reels. When crossover opportunities arise, the country video has the potential to reach many more locations and a much broader audience. 8

Closed Circuit Distributors

Show Name: Country: Households: Show Type:Country Music Channel Sydney Australia 4 million 24 HourCMT Canada Canada 9 million 24 HourCountry Do Club Romania 1 million 3x/weekCountry Roads Germany 8 million WeeklyCountry Connection Chihuahua, Mexico 200,000 Weekly Sound of Country Shanghai, China 10 million WeeklyCountry With Lili Bulgaria 6 million Bi-weekly

Left: Zhou Jin host of “Sound of Country” airing in Shanghai, China

Right: Lili Drumeva host of “Country with Lili” airing in Bulgaria

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International OutletsWith the advent of the internet, more countries have access to country artists and their music. This has created a growth in the number of appointment-based country video shows around the globe. Country Music Channel Australia and CMT Canada program country videos to run 24/7.

Regional outlets continue to make millions of impressions weekly throughout the USA. Shows are located in a variety of markets, including top-rated Designated Market Areas (DMA’s) such as New York, Philadelphia, San Francisco, Dallas, Boston, Detroit and Los Angeles where they build long-standing relationships with local country fans. New markets that have added outlets in 2007 include Nashville, Cincinnati and Cleveland. Because of their local nature, regional outlets tend to cross-promote music videos with concert tours, local appearances and radio singles on affiliated radio stations. Regional programmers have the ability to create effective promotions to enhance consumer audiences and participation at events. Many programs also have companion websites through which they distribute artist information, post current promotions and link visitors to official artist pages.

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Regional Programs

DMA # DMA Market Show

1 New York Sudzin Country

7 Dallas/Ft. Worth Crossroads Live!

9 Boston Video Jam

16 Minneapolis/St. Paul Viva & Jerry’s Country Videos

20 St. Louis St. Louis Country

39 Las Vegas P. Bowman Country

41 Indianapolis Country Hit Videos

44 Raleigh-Durham Honky Tonk Country

55 Louisville Now That’s Country

57 Atlanta Bobby T Show

This table represents a sampling of some of the shows in major

cities with long standing support for country video plays.

Regional Programs

Little Big Town in an interview with The Stage

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178

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17P1 P2P3 P4/Closed CircuitSpecialty/Pop

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2332

East Central West

Number of Regional Outlets are separated here by geographic location and household reach.

Household (HH) Reach: P1: 250,000+ HHP2: 150,000+ HHP3: Less than 150,00 HHP4: Closed Circuit ClubsSpecialty/Pop: Limited Country

SHOW NAME RADIO TIE MARKET

WSSL Trax WSSL 100.5FM Greenville, SC

St. Louis Country KSD 93.7 St Louis, MO

Country Hit Videos WFMS 95.5 Indianapolis, IN

Cross Country WNGC 106.1 Athens, Georgia

The Marquee KITX 95.5/ KDOE102.3 Paris, TX/ S. Central OK

Dixie Country WRSF 105.7 Nagshead NC

KWCK Country Video Hour KWCK 99.9 Searcy, AR

Son Country WTVY 95.5 Dothan, AL

Selected Sampling of Regional Radio Ties

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Several regional outlets have ongoing ties to local radio stations in their area. Video shows are hosted, promoted by, or directly scheduled by local radio stations. These relationships provide unique cross marketing opportunities. Below is a sampling of shows with radio ties in the East and Central regions of the U.S.

The regional outlets in the East have been our biggest growth area since last year’s report. The Eastern outlets have grown 15% since last year. Part of that growth is attributed to shows with radio station affiliations.

Along with regional programs, there are numerous shows/outlets across the country that use Country Music video content along with pop, rock, adult contemporary and/or Christian music. This facilitates exposure to different audiences that might not have otherwise come into contact with Country artists. Following is an overview of some of these outlets both syndicated and regional in nature. We service over 20 shows like this:

MHD (National Cable)• Viacom’s High Definition music channel, pulls content from their other music television stations, including MTV, VH1 and CMT.• Programming includes Light and Heavy rotations for Pop videos, Light and Heavy rotations for Country videos and a category for Country cross-overs.

MHZ Network/ Strictly Global (Regional Program)• Based in Washington D.C. with a reach of 4 million+ households.• Dedicated to airing an eclectic mix of music, with recent playlists including Porter Wagoner, Yonder Mountain String Band and The Duhks

Music Mix USA (Syndication)• Broadcast out of Naples, Florida on NBC, CBS, FOX and UPN affiliates in 9 markets across Florida, Georgia, and Alabama.• Potential household reach is approximately 16 million.

Son Country (Syndication)• Positive Message Show out of Dothan, AL reaching 100K+ households through Fox affiliate WDFX, Time Warner, and Comcast.• Mix of country, Christian country, and Southern Gospel. Radio station used to cross-promote show on WDJR Dothan, AL.• In production nearly 10 years, also produces weekly radio show and uses this to cross promote Son Country

The Stage (Regional Program)• A half hour national award winning television show airing in more than 10 counties and nearly 100 cities throughout New Jersey and Eastern Pennsylvania on Service Electric/Blue Ridge Cable• Airs 5 days a week in more than 1.5 million households weekly• This traditionally mainstream show out of Allentown, PA, works closely with The Crocodile Rock Cafe, a popular club in Allentown and has been featuring more Country artists and videos lately as the country shows at the club have increased in recent months.

TV Guide Channel (National Cable)• Emphasizes entertainment and entertainment news, reaching 70+ million households. • Includes TV Guide Channel, TV Guide Online and TV Guide Interactive, which all use clips from videos, interviews and EPKs.

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Specialty Mixed Format Opportunities

Over the past three-five years, the use of video content has grown significantly through new internet opportunities, expanded cable penetration, and continued growth of regional programming. The major country networks and their major syndicated regional counterparts are taking expansion seriously, using internet and other technological advances to expand their content exposure.

The possibilities for internet streaming and improved delivery of music videos over the web make broadband websites a valuable partner in the expansion of video audiences around the world. With many websites logging millions of videos streamed and thousands of unique visitors, these internet destinations create vast potential for artist development and promotion.

In conjunction with these, television exposure continues to provide a reliable and popular outlet for consumers to experience music. The potential of regional outlets should not be underestimated by their household reach. Their ability to implement localized marketing plans and cross promote projects between venues, radio, and Internet consistently secures their status as an integral part of building grassroots fan bases.

By providing visual images that connect audiences to individual artists, music video marketing remains a vital part of an effective promotional package for both established artists and developing acts.Here’s the breakdown of AristoMedia’s resources making an impression in country:

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Status Overview

5 National Cable Outlets

13 Broadband Sites

4 Outlets in Multiple Regions

15 Video Pools and Closed Circuit Distributors

7 International Outlets

60 Regional Programs