Media 100 Inc.

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Media 100 Inc.
John Molinari Chief Executive Officer (Middlebury
84)
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Agenda

• Media 100 Inc. as an Internet User
• Media 100 Inc. profile
• Applying the Internet
• The Past Year
• Irrational exuberance
• Essentials going forward
• Who will survive who will succumb

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Corporate Profile

• Media 100 Inc.
• Streaming media (Internet video) software,
  systems, and services
• Corporate headquarters and Systems Division in
  Marlboro, MA
• Software Division in Los Gatos, CA
• Service Division media centers in Los Angeles,
  New York, and San Francisco
• 73 million FY2000 revenues
• 325 employees

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Our Mission

• Provide solutions tools and services that
  simplify production and delivery of video on the
  Internet
• We call our technology streaming

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The Problem We SolveCreate and Stream Media on
the Internet
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Streaming Customer Segments
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Applying the Internet

• Our Internet nucleus Oracle-based database (2M
  capital expense)
• Huge repository of customer information
• Permits fast, sophisticated searches
• Were changing how we do business
• Were lowering costs

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Applying the Internet

• Sales / Marketing
• E-commerce (direct) sales to end users
• No resellers, no two-tier distribution
• No human intervention
• Permits end user tracking
• Speeds installed-base sales of future products,
  upgrades
• Real-time, remote territory reporting
• High volume lead generation through our web sites
• Extensive end user tracking
• Targeted email blasts replace direct mail
• We know 100 of our e-commerce end users versus a
  minority thru the channel or voluntary
  registration.

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Applying the Internet

• Operations and Finance
• Decentralization order entry via browser
  interface and Intranet
• ESD eliminates physical costs, physical
  distribution, delays 100 gross margin on
  software and upgrades
• High-volume physical shipping outsourced via
  Internet IT interfaces (our Oracle to their
  Oracle back to our Oracle)
• Intranet for Company info, policies/procedures,
  benefits, job postings, and IT help desk

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Future Applications

• Purchasing (procurement) still done by fax
  today
• Technical support supplement 7/24 telephone and
  email with Internet self-service you pay to
  access our intelligent support database

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The Past Year

• Emperors Without Clothes
• Wall Street rewarded growth at any cost
• Bankers drove IPOs like a Ponzi scheme
• Expectations have not materialized
• Destination sites have no plans to profit
• Not real companies
• Dubious intellectual property
• Weak product offerings low differentiation
• Low barriers to entry
• Competition is one click away
• Billions on branding is not sustainable
• No real equity in brands

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Our View

• The Internet is a tool and a medium (we use the
  medium for broadcasting)
• Leverage the Internet to transform strategic
  pieces of your business
• Leverage the Internet to lower costs

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Essentials Going Forward

• Differentiated product(s) and/or service(s)
  real value
• Customers people who pay you cash for solving a
  growing problem
• Distribution means to transfer
  products/services to customers
• Clear path to profitability
• Sustained liquidity sources of funding
• Management people who can sustain the business
  over many years

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Conclusion

• Going public is not a business model or proof of
  one
• B2B and B2C meld with brick and mortar
• Few independent destination sites survive
• AOL Time Warner, Yahoo!, and eBay survive
• Amazon succumbs as an independent destination
  site
• In Media 100s world, old trends prevail large
  media companies add prominent streaming
  destination sites to their aggregation of
  magazines, broadcasting and cable networks, and
  motion picture studios.