© 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property

and/or AT&T affiliated companies. All other marks are the property of their respective owners.

AUSTRALIAN

OTT TVSUMMIT

TREMAIN WHEATLEY

AVP, Product – AT&T Entertainment Group

© 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside the AT&T companies except under written agreement.

It’s The Customer’s World Now:

Are You Ready to Live In It?

© 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property

and/or AT&T affiliated companies. All other marks are the property of their respective owners.

SESSIONOVERVIEW

TREMAIN WHEATLEY

AVP, Product – AT&T Entertainment Group

• An Industry in Transition

• Good News / Bad News

• OTT Case Studies

• Keys to Success

© 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside the AT&T companies except under written agreement.

© 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside the AT&T companies except under written agreement.

Mobile Is Now The Premier Screen Connected Consumer

Video consumption on mobile devices/ networks continues to

rapidly grow.

Consumers are opting to cut/shave the cord in favor of OTT

services, and expecting highly customized solutions in digital

services across industries.

Fixed and Mobile BB penetration in most global markets now

sufficient to support OTT video.

Improved InfrastructureExplosion in OTT service launches, incl. from new entrants,

traditional MVPDs offering Skinny TV, and content programmers

going D2C

Exploding OTT Market

23%of US broadband households headed by Millennials

now subscribe only to OTT services.

OTT service launches

skyrocket since 2015

> 60% of mobile network traffic.

50% of worldwide

networks capable of 4G.

Video consumption accounts forDISRUPTIVE

TRENDS

SHAPING

THE FUTURE

OF TELEVISION

© 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside the AT&T companies except under written agreement.

© 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside the AT&T companies except under written agreement.

5

What Does This Means for the TV Industry?

A Good News/Bad News Story

Declining Costs to Acquire/Operate

Aggregation Matters

Video Drives Tonnage

2-Sided Business Models

Build Customer Loyalty through Delight

Customers Expect Personalized Solutions

The G’s Don’t Matter

Profits Will Require Scale

Opportunities Challenges

© 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside the AT&T companies except under written agreement.

A personalized entertainment experience anywhere

Compelling premium content

Integrated solutions at scale

Best in class distribution Stunningly simple

What Customers Really Want

© 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside the AT&T companies except under written agreement.

© 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside the AT&T companies except under written agreement.

THE NEWCONSUMER

PLATFORM

Personalized

Content First UX

Any Device

Full Range of Content

Monetization

Data Rich

Software-Driven

Entertainment

© 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside the AT&T companies except under written agreement.

Regional SVOD OTT solution offered by service operators that want to offer a video service to their customers

Subscription VOD Content Positioning

• JV of Singtel Group, WB TV, and Sony Pictures

• Country-specific curated user experience

• Multi-carrier billing integrations

• A mix of popular North American and Asian content

- Popular Hollywood, Bollywood –multi language assets

- Currently offer over 35,000 hours of video content

• Streaming and DVOD

• SVOD/DVOD service rolling out to 6 countries, in 19 languages

• 500M+ mobile active users among Singtel Group with a customer billing relationship

Case Study #1: APAC SVOD

© 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside the AT&T companies except under written agreement.

Expanding the Addressable U.S. Market with Live + VOD OTT Offering

Web-Based Pay-TV Content Positioning

• Packaged live linear channels with On Demand and time-shifting (restart / lookback)

• Accessible through SmartTV’s, Streaming Devices, Tablets, Phones and Browsers

• Expand U.S. market for linear/live streaming to new category of consumers (approx. 20 M households)

- Cord Nevers/Cutters

- Those unable to access satellite

- Price sensitive/adverse to contracts

• Live content that consumers want most at compelling price

• Branding aligned with DIRECTV at launch

• Promotional launch offering Apple TV to attract consumers

• Attractive monthly subscription of $35/month at launch

Case Study #2: U.S. OTT

© 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside the AT&T companies except under written agreement.

© 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside the AT&T companies except under written agreement.

GUIDINGPRINCIPLESFOR SUCCESS

Embrace a customer centric mindset

Measure what matters – passion and engagement

Connectivity alone isn’t enough – but it’s a valuable asset

Treat data as the precious resource that it is

You better be great at software – it is the product

© 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside the AT&T companies except under written agreement.