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Agenda
Metacafe Overview
 The Metacafe difference
 Video business model
 Introducing Producer Rewards

TM
Metacafe Overview

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 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
Monthly worldwide page views and unique visitors
600
18.0
16.0
Page views (MM)
14.0
400
12.0
10.0
300
8.0
200
6.0
4.0
100
2.0
0
0.0
Metacafe
Break
eBaumsWorld
Page Views
Source: comScore Media Metrix. September 2006
Bolt
Heavy
Unique Visitors
Grouper
Revver
Unique visitors (MM)
500
Rapid Growth in Metacafe’s Audience
Worldwide unique visitors (MM)
18
16
14
12
10
8
6
4
2
Jan-06
Feb-06
Mar-06
Apr-06
May-06
Jun-06
Jul-06
Aug-06 Sep-06
Over 400% growth since January 2006
Source: comScore Media Metrix. Does not include viewers of client or embeddable player.
Rapid Growth in Metacafe’s Audience
Unique visitors US only (MM)
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06
Jul-06
800% growth since January 2006
Source: comScore Media Metrix.
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
Video makes
it to home page
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.
100,000 reviewers
filter out content that is inappropriate
or only interesting to a few
Video footprint search
eliminates duplicates
Thousands of videos submitted to Metacafe each day
Best Place to Watch & Distribute
Quality Short Video
7,000,000
Total Views for top-200 items
6,000,000
5,000,000
640,000,000
4,000,000
620,000,000
3,000,000
600,000,000
2,000,000
580,000,000
1,000,000
560,000,000
0
12% more views
on Metacafe 
540,000,000
1-40
41-80
81-120 121-160 161-200
520,000,000
YouTube
YouTube
Metacafe
Comparison of top 200 views on October 13, 2006
Metacafe
Metacafe Discovers the
Best of Long Tail Content
# of Views
Video sharing sites
Video submissions
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?



Only 2 players have the content, traffic & global distribution to
deliver “entertainment-grade” UGC video on a regular basis



Traditional media: costly, expertise in long format programming;
copyright concerns
UGC: hard to control; no quality standard; copyright concerns but highly
scalable
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 News
Oct 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

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
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
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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

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
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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

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Investors


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Arik Czerniak, CEO
Eyal Hertzog, Chief Product Officer
Accel Partners
Benchmark Capital
Offices
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Offices in Palo Alto, CA and Tel Aviv, Israel