<HTML><BODY style="word-wrap: break-word; -khtml-nbsp-mode: space; -khtml-line-break: after-white-space; ">The changes in network news have little to do with consumer tendencies or entrenched content provider culture. News departments have operated at a financial loss for many many years. The big networks supported news as a service to the public, not as a moneymaker. Furthermore, the internet has really changed the way news is consumed. I really think it falls outside of the entertainment discussion. It is a very different product.<DIV><BR><DIV> <SPAN class="Apple-style-span" style="border-collapse: separate; border-spacing: 0px 0px; color: rgb(0, 0, 0); font-family: Helvetica; font-size: 12px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; text-align: auto; -khtml-text-decorations-in-effect: none; text-indent: 0px; -apple-text-size-adjust: auto; text-transform: none; orphans: 2; white-space: normal; widows: 2; word-spacing: 0px; "><SPAN class="Apple-style-span" style="border-collapse: separate; border-spacing: 0px 0px; color: rgb(0, 0, 0); font-family: Helvetica; font-size: 12px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; text-align: auto; -khtml-text-decorations-in-effect: none; text-indent: 0px; -apple-text-size-adjust: auto; text-transform: none; orphans: 2; white-space: normal; widows: 2; word-spacing: 0px; "><DIV>Gian Anthony Constantine</DIV><DIV>Senior Network Design Engineer</DIV><DIV>Earthlink, Inc.</DIV><BR class="Apple-interchange-newline"></SPAN></SPAN> </DIV><BR><DIV><DIV>On Jan 15, 2007, at 5:53 PM, Richard Naylor wrote:</DIV><BR class="Apple-interchange-newline"><BLOCKQUOTE type="cite"><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">At 09:50 a.m. 15/01/2007 -0500, Gian Constantine wrote:</DIV> <BLOCKQUOTE type="cite"><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">The problem with this all (or mostly) VoD model is the entrenched culture. In countries outside of the U.S. with smaller channel lineups, an all VoD model might be easier to migrate to over time. In the U.S., where we have 200+ channel lineups, consumers have become accustomed to the massive variety and instant gratification of a linear lineup. If you leave it to the customer to choose their programs, and then wait for them to arrive and be viewed, the instant gratification aspect is lost. This is important to consumers here.</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">While I do not think an all or mostly VoD model will work for consumers in U.S. in the near term (next 5 years), it may work in the long term (7-10 years). There are so many obstacles in the way from a business side of things, though.</DIV> </BLOCKQUOTE><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">I don't see many obstacles for content and neither do other broadcasters. The broadcast world is changing. Late last year ABC or NBC (sorry brain fade) announced the lay off of 700 News staff, saying news is no longer king. Instead they are moving to a strategy similar to that of the BBC. ie lots of on-demand content on the Internet.</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">Rich</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><BR></DIV> </BLOCKQUOTE></DIV><BR></DIV></BODY></HTML>