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LEAD WITH ORIGINALS Promote Value and Strength of Movies

LEAD WITH ORIGINALS Promote Value and Strength of Movies. Starz Research  March 2011. WHERE STARZ STANDS. Starz Is the #2 Premium Service in Total Day… . Packs: 722 317 271 240. SOURCE: Nielsen Total Day HH Live + Same Day Coverage Ratings.

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LEAD WITH ORIGINALS Promote Value and Strength of Movies

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  1. LEAD WITH ORIGINALSPromote Value and Strength of Movies Starz Research  March 2011 PROPRIETARY & CONFIDENTIAL TO STARZ, LLC AND ITS SUBSIDIARIES

  2. WHERE STARZ STANDS PROPRIETARY & CONFIDENTIAL TO STARZ, LLC AND ITS SUBSIDIARIES

  3. Starz Is the #2 Premium Servicein Total Day… Packs: 722 317 271 240 SOURCE: Nielsen Total Day HH Live + Same Day Coverage Ratings PROPRIETARY & CONFIDENTIAL TO STARZ, LLC AND ITS SUBSIDIARIES

  4. …And in Prime Time Packs: 1,313 497 414 433 SOURCE: Nielsen Prime Time HH Live + Same Day Coverage Ratings PROPRIETARY & CONFIDENTIAL TO STARZ, LLC AND ITS SUBSIDIARIES

  5. SUBSCRIBER ATTITUDES AND EXPECTATIONS PROPRIETARY & CONFIDENTIAL TO STARZ, LLC AND ITS SUBSIDIARIES

  6. Originals Highly Valued by Subs 80% Starz subs: 23% Q.: Which one of the following statements best describes the reason why you keep subscribing to premium channels? SOURCE: Starz survey of 610 premium subscribers, conducted by Kadence International, January 2011 PROPRIETARY & CONFIDENTIAL TO STARZ, LLC AND ITS SUBSIDIARIES

  7. Original Series=Premium Power Q.: Do you agree strongly, agree somewhat, disagree somewhat, or disagree strongly with each of the following statements? SOURCE: Starz survey of 610 premium subscribers, conducted by Kadence International, January 2011 PROPRIETARY & CONFIDENTIAL TO STARZ, LLC AND ITS SUBSIDIARIES

  8. Premium’s Biggest FansValue Original Series To 34% of subs, premium channels are the most valuable part of their TV package Why? Q.: Do you agree strongly, agree somewhat, disagree somewhat, or disagree strongly with the following statement: Premium channels are the most valuable part of my TV programming package (Agree strongly/somewhat) Q.: What makes you say that premium channels are the most valuable part of your TV programming package? (Base=those who say premium is most important part of package) SOURCE: Starz survey of 610 premium subscribers, conducted by Kadence International, January 2011 PROPRIETARY & CONFIDENTIAL TO STARZ, LLC AND ITS SUBSIDIARIES

  9. Series Fans View Frequently—Frequent Viewers Are Churn-Proof SOURCE: Nielsen quad analysis, Jan-Dec 2010 (excludes months in which free previews took place: Feb for Starz; April for Showtime) Frequent viewers=HHs that tune in 10+ days per month; infrequent viewers=HHs that tune in 1-10 days per month; nonviewers=HHs that do not tune in during month PROPRIETARY & CONFIDENTIAL TO STARZ, LLC AND ITS SUBSIDIARIES

  10. The Impact of Spartacus • 67% of premium subs have heard of or seen Spartacus • Significantly higher than Eastbound & Down and Treme • Awareness 81% among Starz subs • 41% of premium subs have seen ads for Spartacus • 55% among Starz subs • 56% of Spartacus viewers enjoy* watching the series • Higher than enjoyment of Californication, Big Love, Hung, United States of Tara, Eastbound & Down, and Treme—and equal to enjoyment of Entourage *Enjoy=rated 4 or 5 on scale of 1-5 SOURCE: Starz survey of 610 premium subscribers, conducted by Kadence International, January 2011 PROPRIETARY & CONFIDENTIAL TO STARZ, LLC AND ITS SUBSIDIARIES

  11. Spartacus ImpactedViewing and Churn • In 2010, Spartacus converted more than 1 million non-viewing HHs to viewing HHs • 2010 Spartacus viewing HHs averaged 2,500 minutes of SMP viewing per month during the run of the series • In the two months after the season ended, Spartacus viewers were less likely than non-viewers to cancel service SOURCE: Nielsen analysis of subscription status and viewing patterns comparing Feb-April 2010 Spartacus season run to the following May and June. PROPRIETARY & CONFIDENTIAL TO STARZ, LLC AND ITS SUBSIDIARIES

  12. Spartacus ImpactedCSR Recommendations MSO 1 MSO 2 Q.: Have you recently recommended Starz to customers that you would not have 3 months ago, based upon the new Starz Original Series? SOURCE: StarzPoint of Sale Comparison Study, Oct 2010 and Jan 2011

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