Sinclair, Inc. · NASDAQ:SBGI
Sinclair — Sinclair Broadcast Group — Investor Day (July 2015)
86 slides from Sinclair's investor day presentation, July 2015
Slide 1: Sinclair Broadcast Group
SINC LAT? =: ALR 5SRO}D CGH Sw YDC N . 10% at ST GROUP
Slide 2: Safe Harbor
SAFE HARBOR The following information contains, or may be deemed to contain, "forward-looking statements" (as defined in the U.S. Private Securities Litigation Reform Act of 1995). Any statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance are not
Slide 3: Company Overview
Company Overview David Smith President & Chief Executive Officer / David Amy EVP & Chief Operating Officer
Slide 4: Who We Are
Who We Are • Television broadcast leader • Diversified broadcaster • Revenue innovator • Original content creator • Multi-platform distributor • Technology innovator • Free cash flow generator
Slide 5: Leading Consolidator
Leading Consolidator 2008 2015 58 TV stations 161 TV stations 58 channels 375 channels 35 markets 79 markets 24M TV HHs 43M TV HHs 26 news markets 75 news markets
Slide 6: Only Broadcaster With Scale & Reach
Only Broadcaster With Scale & Reach Owned and Operated Television Stations 161 107 77 71 53 46 42 33 30 29 28 28 17 8 SBGI NXST GTN MEG Raycom GCI TRCO Scripps CBS Hearst FOXA NBC MDP ABC U.S. TV Households Reached 44% 38% 38% 38% 36% 31% 23% 23% 18% 18% 18% 13% 11% 8% TRCO SBGI CBS FOXA NBC GCI MEG
Slide 7: Diversified By Content Offerings
Diversified By Content Offerings 2014 Revenues By Content Type 35% 30% 30% 30% 28% 25% 20% 15% 10% 8% 5% 4% 0% Syndicated Local News Network Local Sports Paid/DR Net Time Sales by Content Type
Slide 8: Diversified By Channel Offerings
Diversified By Channel Offerings 2008 2014 Non- Spanish, Network, 1 FOX, 45 1 Non- NBC, 1 FOX, Network, 20 162 CBS, 29 MNT, 20 B CW, 43 CBS, 2 ABC, 32 ABC, 9 CW, 9 Spanish, MNT, 26 15 NBC, 23 Number of channels by affiliation
Slide 9: Diversified By Affiliation Revenue Mix
Diversified By Affiliation Revenue Mix 45% 26% 27% 20% 20% 19% 12% 9% 9% 8% 3% 1% 0% 1% ABC CBS FOX NBC CW MNT Other 2008 2014 Advertising Revenues by Affiliation
Slide 10: Diversified Geographically
Diversified Geographically Market % of Total Revenue Washington DC 5% San Antonio 4% Columbus 4% Seattle 4% Cincinnati 4% Baltimore 3% Las Vegas 3% Portland OR 2% Nashville 2% Salt Lake City 2% 34% **Based on 2015 forecasted revenues, excluding retransmission revenues
Slide 11: Benefits of Scale
Benefits of Scale • Negotiating power with vendors ranging from software to equipment to programming. • Strategic advantage for marketing to political advertisers. • Ability to create an unwired network using stations to compete with cable networks. • Contiguous regional footprints to leverage regio
Slide 12: History of Creating, Innovating & Leading
History of Creating, Innovating & Leading • One of the first UHF stations in the country • Introduced the first Local Marketing Agreement (LMA) • Lead broadcasters’ petition to FCC for a more robust and flexible standard for digital television technology • Launched the first digital multichannel air
Slide 13: Our Strategic Focus
Our Strategic Focus • Content Creation • News, sports, original content • Multi-platform distribution • OTA, digital, cable • National reach and local focus • Consolidation • Next Generation Broadcast Platform • Deregulation • Free cash flow generation
Slide 14: Outperforming Equity Returns
Outperforming Equity Returns Ticker: SBGI Market Cap: $2.9B Enterprise Value: $6.7B 200% 183% Equity Performance 2009 - 2015 150% SBGI: 136% p.a. 103% S&P 500: 21% p.a. 100% 50% 39% 30% 30% 23% 13% 11% 13% 11% 10% 0% 2% 0% 2009 2010 2011 2012 2013 2014 2015 -23% SBG S&P 500 -50% Source: Yahoo Financ
Slide 15: Operating Strategy
Operating Strategy Steve Marks and Steve Pruett Vice Presidents/Co-Chief Operating Officers Sinclair’s Television Group
Slide 16: Steve Pruett
Steve Pruett VP/Co-Chief Operating Officer Sinclair’s Television Group
Slide 17: Broadcast Continues to Dominate Cable Audiences
Broadcast Continues to Dominate Cable Audiences Avg Weekly Reach during February 2015 Sweeps In millions 140 42% 39% 39% 120 33% 100 80 60 17% 13% 13% 12% 11% 11% 40 8% 7% 20 0 NBC CBS ABC FOX CW USA TBSC TNT ESPN DISC FOXNC CNN Source: Nielsen Media Research Note: Numbers represent the weekly reach
Slide 18: Importance of Local News
Importance of Local News • Local TV news combined with a digital platform is surpassing combined newspaper and newspaper digital as the primary source of local news. • Critical to our stations’ local brand, it drives our connection to local viewers. • Responsible for much of our 40M+ unique web visi
Slide 19: Positive News Viewing Trends
Positive News Viewing Trends Local News Viewership Increasing in Early Evening and Morning News Millions 30 Late Night News 25 20 Early Evening News 15 10 Morning News 5 - 2010 2011 2012 2013 2014 Source: Nielsen Media Research Note: Numbers represent average daily viewership of all Industry ABC, CB
Slide 20: Sinclair is the Local News Leader
Sinclair is the Local News Leader • 2,200 hours of local news produced per week • 75 markets • 35% - 40% 2-year avg. News EBITDA margins SBG Newscasts Ranked #1 or #2 in their markets* • 36 newscasts in morning news • 37 newscasts in early evening news • 38 newscasts in late news *Source: Nielsen
Slide 21: SBG Legacy Stations Growing Morning News Share
SBG Legacy Stations Growing Morning News Share M-F 5a-7a News 12.5 12.8 11.6 11.8 11.4 Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 Source: Nielsen, Sweeps as Indicated. Average P25-54 share for Big 4 news stations owned and/or operated prior to 2012.
Slide 22: SBG Acquired Stations Growing Morning News Share
SBG Acquired Stations Growing Morning News Share M-F 5a-7a News 15.2 14.7 Nov-10 Nov-14 Source: Nielsen, Sweeps as Indicated. Average P25-54 share for Big 4 news stations acquired in 2012 (Four Points, Freedom and Newport),
Slide 23: Sinclair Local News Outperforms Cable News in All Dayparts
Sinclair Local News Outperforms Cable News in All Dayparts 1,313,514 Morning News 1,608,108 Early Evening News M-F 5A-7A News M-F 4P-7P News Feb '15, A25-54 Feb '15, A25-54 486,000 595,000 406,000 236,000 99,000 121,000 95,000 73,000 60,000 33,000 33,000 15,000 Sinclair Sinclair FXNC HLN CNN MNBC CN
Slide 24: SBG News Reaching Millenials on Digital Platforms
SBG News Reaching Millenials on Digital Platforms Sinclair News Audience Composition by Daypart 100% 7% 8% 90% 23% 16% 36% 21% 80% 45% 70% 19% 25% 60% 21% 23% 50% 12% 21% 24% 40% 10% 26% 30% 26% 8% 22% 20% 19% 15% 14% 10% 9% 7% 14% 4% 10% 2% 2% 3% 3% 3% 2% 0% Morning News Early Evening News Late Eve
Slide 25: Local News Important to Advertisers
Local News Important to Advertisers • Large audience delivery and key demographics yield significant value to advertisers • Informed viewers of importance to politicians • Creating innovative news advertising products • Quickcast • Vignettes • Town Halls • Connect to Congress • National News Show
Slide 26: SBG Expanding Into Higher Growth Media
SBG Expanding Into Higher Growth Media Annual Revenue ($Millions) by Media- 2014-2019 in Sinclair Markets CAGR 2014 2015 2016 2017 2018 2019 (2014-2019) Mobile 1,540 2,377 3,285 4,374 5,459 6,482 33.3% Television Online 345 393 446 497 553 610 12.0% Online 5,059 5,397 5,756 6,164 6,626 7,174 7.2% Em
Slide 27: Growth Opportunities in Our Local Markets
Growth Opportunities in Our Local Markets 2008 Revenues by Media in Sinclair TV Markets 2014 $49.4B Estimated Revenues in Sinclair TV Markets Broadcast, Broadcast, 14% 12% Direct Mail, Newspaper, 27% 25% Direct Mail, Newspaper, 28% 15% Magazines, 3% Magazines, 2% Email, 1% Mobile, 1% Mobile, 3% Onli
Slide 28: Creating Advertising Product Strategies
Creating Advertising Product Strategies • Sinclair addressing other advertising media to grow share • NTR 360 marketing packages – integrate multi-screen and sponsorship • State, regional and national ad networks – leverage our scale and concentration for targeted integrated marketing plans • New Di
Slide 29: Growth in Largest Ad Category - Auto
Growth in Largest Ad Category - Auto Average SAARs (in millions) 1% 16.57 16.43 growth 6% growth 15.53 2013 2014 2015YTD Source: Wards Auto (2013 and 2014); NADA.org (Jan through April 2015) Shows the Seasonally Adjusted Annual Rate (“SAARs”) (in millions) of U.S. Light Vehicle Sales for the full ye
Slide 30: Dealership Spending is Growing
Dealership Spending is Growing Source: NADA
Slide 31: Auto Shifting Ad Money to TV
Auto Shifting Ad Money to TV 2002 2014 Internet, 5.0% Other, 9.2% Other, 8.5% Direct Mail, 7.4% Internet, 26.3% Television, 16.7% Television, 23.1% Direct Mail, Radio , 10.7% 15.7% Newspaper 46.7% Radio , Newspaper, 15.8% 14.9% Source: NADA
Slide 32: Steve Marks
Steve Marks Vice President/Co-Chief Operating Officer Sinclair’s Television Group
Slide 33: 2016 Political Expected to Exceed 2012's Levels
2016 Political Expected to Exceed 2012’s Levels ($ in Millions) Sinclair well- positioned for 2016: $258 Nation’s capital $161 $147 21 state capitals 10 swing states Relevant 2010PF 2012PF 2014PF 2016 cities in swing states
Slide 34: 2016 Political Growth
2016 Political Growth Heavy Activity Markets Impacted Notes Florida Gainesville, Pensacola, Tallahassee, West Palm Senate/President Nevada Las Vegas, Reno House/Senate/President Ohio Columbus, Cincy, Dayton, CHWV, Steubenville, Toledo Senate/Senate North Carolina Raleigh, Greensboro, Asheville Gover
Slide 35: Programming Strategy
Programming Strategy • High-quality syndicated • Games – Wheel of Fortune, Jeopardy, Family Feud • Off Net – Big Bang Theory • Court – Judge Judy • Talk – Ellen, Dr. Phil, ET • Local news – over 2,200 hours per week • Local sports – ASN, ROH • Original Programming – focused on low-cost unscripted pr
Slide 36: Securing Quality Shows at a Lower Cost
Securing Quality Shows at a Lower Cost • Our depth of content needs combined with national reach mean we get first-look at new shows • Fall 2014 important Early Fringe program acquisitions: • Ellen – Added in 3-markets, Total of 21-markets • Dr. Phil – Added in 11-markets, Total of 30-markets • Stev
Slide 37: Ring of Honor Wrestling
Ring of Honor Wrestling • Purchased Ring of Honor, a professional wrestling promotion, in 2011 • Reaches over 50M HHs, including SBG markets and syndicated HHs. • 52 weeks of original hourly programming • 40 live events per year • 6 PPV and IPPV events yearly • 500k+ social media fans • 445k Faceboo
Slide 38: American Sports Network
American Sports Network • In 2014, we established a college sports initiative – American Sports Network (ASN). • Locked up rights from a 11 NCAA Division 1 Conferences • Produced 275 live games across 9 sports in year 1 of operation • Distributed across Sinclair stations and syndicated to other broa
Slide 39: Programmatic/Audience Network Sales Strategy
Programmatic/Audience Network Sales Strategy • Partner with Visible World to create Audience Network for Local Broadcast TV. • Develop new revenue streams by aggregating and selling Sinclair and other broadcasters’ impressions on a national scale across multiple dayparts • Represent national buying
Slide 40: Programmatic/Audience Network Sales Strategy
Programmatic/Audience Network Sales Strategy • Build premium value CPMs through an overlay of consumer qualitative data and yield management system • Build dedicated staff in NY, Chicago and Los Angeles to call on agencies to develop and grow network business. • Sell additional Sinclair properties:
Slide 41: Expanding into Different Revenue Streams
Expanding into Different Revenue Streams $32.75 Internet 2 Broadcast TV 1 TV Syndication 1 Cable Channels 1 $19.00 $17.00 $17.00 $11.60 $9.85 $9.25 $9.00 $9.25 $7.55 $6.50 $5.50 $3.30 Daytime Fringe Primetime Untargeted Video Targeted Video Daytime Early Primetime Late Daytime Early Prime Late News
Slide 42: Digital Strategy
Digital Strategy Rob Weisbord Vice President & Chief Operating Officer Sinclair Digital
Slide 43: Digital Strategy
Digital Strategy • Create and innovate solutions across all screens, all devices, all platforms (desktop, mobile, OTT, social media) • Engage consumers and deliver an ROI to advertisers • Combine linear and non-linear for greater branding capabilities • Respond to and participate in evolving media c
Slide 44: Developed a Content Management System
Developed a Content Management System Real-time publishing on both web and mobile platforms provides means for filing stories directly from the field Created from scratch and designed for flexibility to meet ongoing needs
Slide 45: Enhancing the Consumer Experience
Enhancing the Consumer Experience Content experience is optimized for each screen without loss of news or information Video management system created for both live and VOD experiences Ad unit size and placements are designed for performance and interaction
Slide 46: Offering Personalized Mobile Apps
Offering Personalized Mobile Apps Highly configurable to address the needs of all smart phones and smart phone users Both content and design can be customized
Slide 47: Offering Unique Mobile Apps
Offering Unique Mobile Apps Research shows that a multiple app strategy increases brand awareness and market penetration Sinclair apps include a Morning News app with wake-up features, Super News app for comprehensive news coverage, and Weather apps for in-depth meteorological reporting
Slide 48: Developed A Proprietary Video Ad Serving Technology
Developed A Proprietary Video Ad Serving Technology Commercial insertion in live digital video streams on all digital platforms Ads served dynamically through integrations with existing ad serving infrastructure As content delivery platforms proliferate and consumers respond to new options, Sinclair
Slide 49: Digital Audience
SinclairDigital ‘ADIVISION OF SINCLAIR BROADCAST GROUP
Slide 50: Digital Platform that Rivals the Most Popular Websites
Digital Platform that Rivals the Most Popular Websites 175.0 Most Popular News Websites 150.0 Unique Monthly Visitors (mils) 110.0 95.0 70.0 65.0 63.0 53.0 47.0 42.0 40.0 36.0 35.0 35.0 34.0 32.0 110.0 Most Popular Political Websites Unique Monthly Visitors (mils) 35.0 25.0 21.0 16.0 15.0 14.0 13.0
Slide 51: Cumulative Uniques
Growth in Monthly Average Unique Visitors • Increases in mobile unique visitors will continue to build as new apps are released in 2015 In Millions 40 41% Mobile Web 35 Cumulative Uniques 30 130% 25 20 381% 15 10 5 -- 2012 2013 2014 2015 YTD
Slide 52: Page Views
Growth in Monthly Average Page Views • Traffic from mobile devices now accounts for 39% of all web traffic to Sinclair Digital products 300 In Millions 19% 250 75% 200 Page Views 150 Mobile 707% Web 100 50 0 2012 2013 2014 2015 YTD
Slide 53: Number of Facebook Fans
Monthly Average Facebook Fans Increasing • Cultivation of social audience continues to be a core competency and priority 8 In Millions 82% 7 Number of Facebook Fans 6 5 217% 4 3 2 151% 1 -- 2012 2013 2014 2015 YTD
Slide 54: Leading Digital Platforms
Leading Digital Platforms Uniques Page Views 450,000 12,000,000 401,000 10,522,000 400,000 365,000 10,000,000 350,000 300,000 8,000,000 250,000 6,000,000 200,000 4,187,000 150,000 139,000 4,000,000 112,000 100,000 2,000,000 50,000 477,000 274,000 0 0 Vox Vice Buzzfeed Sinclair - KOMO Vox Vice Buzzfe
Slide 55: Sales Strategy
SinclairDigital ‘ADIVISION OF SINCLAIR BROADCAST GROUP
Slide 56: Full suite of service products for marketing needs
• Full suite of service products to fit a wide variety of marketing needs • 2,500 sellers in 75 markets focused on servicing the local SMB’s • Google Preferred Partner
Slide 57: Sinclair Digital Revenues Growing
Sinclair Digital Revenues Growing • eMarketer forecasts a +16.7% increase in digital ad spending in 2015 across web and mobile 17% growth PF YTD 6/30/14 YTD 6/30/15E 2014 is pro forma for all closed acquisitions through 6/30/2014; 2015 is expected forecast through 6/30/15.
Slide 58: Digital Ventures
Digital Ventures Investing in companies that help extend our core business assets. Targeted investment sectors: • Mobile • Digital Agencies • VideoTech • Content & Distribution • Advertising & Marketing Solutions • AdTech and Saas Platforms • Social Media • Advanced TV • Data & Analytics • eCommerce
Slide 59: Network & MVPD Relations / OTT / Deregulation
Network & MVPD Relations / OTT / Deregulation Barry Faber Executive Vice President & General Counsel
Slide 60: Symbiotic Network Affiliate Relations
Symbiotic Network Affiliate Relations • Networks contribute: • High-quality entertainment & sports content • Affiliates contribute: • Ability for networks to reach 100% of the country • Local branding of network • High-quality lead-in/lead-out news & syndicated content • Programming fees • Sports fe
Slide 61: Broadcast Fees Under-Index Cable Nets
Broadcast Fees Under-Index Cable Nets $7.44 Monthly rate paid by MVPD per subscriber1 $1.65 $1.12 $1.00 $1.12 $1.09 $0.73 $0.89 $0.74 $0.64 $0.50 $0.39 ESPN & ESPN2 TNT FOX News USA Nick/Nick At Nite CNN MTV CBS FOX ABC NBC CW 3.5 3.6 3.1 Household ratings2 2.5 1.1 0.9 0.8 0.8 0.6 0.7 0.3 0.2 ESPN &
Slide 62: Net Retrans Expected To Grow As Gap Closes
Net Retrans Expected To Grow As Gap Closes Broadcasters should be receiving at least $16B on 36% audience delivery versus $6B today Cable Nets Broadcast $56.6 $52.7 $48.5 $8.2 $44.3 $7.5 $39.8 $6.7 $35.5 $5.9 $4.9 $48.4 $45.2 $3.6 $41.8 $38.4 $34.9 $31.8 2013 2014 2015 2016 2017 2018 Source: SNL Kag
Slide 63: Broadcast Attracts and Retains Viewers
Broadcast Attracts and Retains Viewers Broadcast is more important than 36% audience share: • 90 of the top 100 shows are on Broadcast TV (CBS, ABC, NBC and FOX) • 9 of the top 10 shows are on Broadcast • 24 of the top 25 shows are on Broadcast • 48 of the top 50 shows are on Broadcast Based on tota
Slide 64: Sinclair's Net Retrans Expected to Grow by Teen %s
Sinclair’s Net Retrans Expected to Grow by Teen %s 31% % of SBG Subs Due to Renew between now and 2016 % of SBG Big-4 HHs Expiring between now and 2016 74%
Slide 65: Over-the-Top (OTT)
Over-the-Top (OTT) • Early in life cycle • Networks need affiliate approval on linear basis • We expect to get paid
Slide 66: Seeking Equal Regulatory Treatment
Seeking Equal Regulatory Treatment • Why can cable, satellite, the phone companies, networks and the web reach 100% of the country; but broadcast is limited to 39%? • Why can the largest cable system own TV stations in the largest markets, 2 broadcast networks, cable channels and production studios;
Slide 67: Cable and Multichannel Strategy
Cable and Multichannel Strategy David Amy Executive Vice President & Chief Operating Officer
Slide 68: Cable Strategy
Cable Strategy • Securing rights for cable channel carriage • News – News Channel 8 or other • Sports – ASN, ROH • Other • Ability to monetize content nationally • Expands affiliate fees
Slide 69: Largest Multichannel Distributor
Largest Multichannel Distributor Number of Number of Providers Channels Markets Grit 55 48 Get TV 32 32 This TV 13 11 News & Weather 13 11 Zuus Country 12 12 Me TV 11 10 Antenna TV 6 2 Retro TV 6 6 Bounce Network 4 4 Estrella TV 3 3 MundoFox 3 3 Azteca 2 2 Heartland 1 1 OSN 1 1 Live Well Network 1 1
Slide 70: Largest Multichannel Distributor
Largest Multichannel Distributor # of simulcasts of Number of Number of primary channel Network Channels Markets (A) CW 19 15 5 ABC 7 5 4 MNT 7 7 5 MNT/ThisTV (B) 6 6 0 FOX 4 4 1 NBC 4 4 4 CBS 3 3 2 50 (A) The programming that is broadcast on these multichannels is a simulcast of the same programmin
Slide 71: Financial Highlights
Financial Highlights Christopher Ripley Chief Financial Officer
Slide 72: Free Cash Flow Generator
Free Cash Flow Generator 14% FCF yield Free Cash Flow ($ in Millions) 51% payout ratio in 2014 80% $403-$442 $4.51 PF FCF per share 2014 $377 70% 68% $4.21-$4.63 avg per share 58% 60% 56% 54% expected over next 2 years 52% 53% 52% $263 50% $213 40% 2014 Uses of FCF: $160 30% 39% Reinvest in LT growt
Slide 73: Growing Key Financial Metrics
Growing Key Financial Metrics 1,600 2013: $1,500 Acquired 58 1,400 4-Year CAGRS: 2012: stations for Net Broadcast Revenue: 25% Acquired 31 $1.0B 2014: stations for Acquired 14 1,200 EBITDA: 26% $1.1B stations for $1,069 Free Cash Flow: 22% $1.2B 1,000 $784 800 $652 $605 $592 600 $442 400 $341 $320 $
Slide 74: Stable Credit Metrics
Stable Credit Metrics 7 6.33x 2012: 2013: 2014: Acquired Acquired Acquired 6 31 stations 58 stations 14 stations for $1.1B for $1.0B for $1.2B 5 4.61x 4.69x 4.18x 4.25x 4.03x 4 3.82x 3 2 1 0 2009 2010 2011 2012 2013 2014 Avg '15/'16 **Stations acquired net of dispositions.
Slide 75: Strong Balance Sheet
Strong Balance Sheet No near-term refinancing risk for 3 years Healthy credit statistics 2014 Total Net Leverage of 4.7x 4.8% Avg. Cost of Debt $1,700 Revolver Senior Unsecured Notes Term Loans $950 $640 $750 $500 $550 $348 1 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Excludes capital lease o
Slide 76: Hidden Asset Value
Hidden Asset Value - Digital Investments - Other Operating Division Investments - 17% Average annualized ROI on investments sold ¢- Spectrum opportunities ee
Slide 77: Under-Valued Sector
Under-Valued Sector Enterprise Value/2015E EBITDA Valuation Metrics DHX Media Lions Gate DreamWorks MSG 16.0x Walt Disney SBG CBS Discovery Nexstar Time Warner AMC Gray 21st Century FOX Scripps Networks Media General Viacom E.W. Scripps Comcast 10.8x Tribune 9.5x 8.8x Diversified Media Pure Play Cab
Slide 78: Next Generation Broadcast Platform
Next Generation Broadcast Platform
Slide 79: Spectrum Auction
Spectrum Auction Applications to participate are due Fall 2015; Bidding process early 2016. Options with respect to the auction: • Keep spectrum: • Improve multicast monetization • Pursue other opportunities through the Next Generation Broadcast Standard including mobile and UHDTV. • Sell spectrum •
Slide 80: What is NGBP
What is NGBP • NGBP is a data agnostic wireless IP pipeline that supports much more than television services • Increased bits for delivery • More robust bits designed for portability and mobility • Universal bits that are IP compatible • UHDTV and better HDTV (HDTV+PLUS) in addition to multicast HDT
Slide 81: What is NGBP
What is NGBP • NGBP will support a SFN (Single Frequency Network) infrastructure • Better service inside of coverage contours including deep building penetration • Geographic (SFN zoned) services • Interference mitigation
Slide 82: Why NGBP
Why NGBP • NGBP will open opportunities to deliver new services • 4K Ultra high definition television • Mobile TV • Personalized viewing • Targeted advertising • Vehicular connectivity • Large event video distribution • Broadcast overlay data distribution
Slide 83: Why We must Adopt NGBP
Why We must Adopt NGBP Stationary Mobile Wholesale Price of Wholesale Price of Wireless Wired Transmission 4G LTE Transmission 1¢ - 5¢ / GB $2 - $3 / GB 100x Difference Upgrading the industry’s standard would enable TV spectrum to move from competing in the stationary wired marketplace to competing
Slide 84: Economics of IP/Mobile Enabled Spectrum
Economics of IP/Mobile Enabled Spectrum Current Spectrum Future Spectrum Future Spectrum (Additional (Additional (Wireless) Channels) Channels) $1.5bn $146mm $43mm Broadcast Price per $.00002(1) $.00002(1) $.0002(2) Gigabyte Wired / Wireless $0.01 – 0.05 $0.01 – 0.05 $2.00 - 3.00 Wholesale Price Wir
Slide 85: Why Sinclair
Why Sinclair • Television broadcast leader • Diversified broadcaster • Revenue innovator • Original content creator • Multi-platform distributor • Technology innovator • Free cash flow generator
Slide 86: ALR SB RIORSDex
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