SeaChange Infusion Spot

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1 Quick Spec SeaChange Infusion Spot

2 Share of Worldwide Ad Spending by Medium % 9.3% 26.8% 8.0% 12.4% 7.6% % 29% 12.8% 6.5% 6.5% 7.4% TV Internet Newspaper Radio Magazine Outdoor & Cinema Source: Publicis Groupe s ZenithOptimedia (Advertising Expenditure Forecasts, December 2015)

3 Television s Opportunities SeaChange pioneered the way local ad insertion is done by having introduced the world s first automated digital ad insertion system in This gave local advertisers the ability to affordably advertise on nationally broadcast television and likewise enabled national advertisers to target regionally. Despite the recent growth in digital, advertisers continue to rely on television s proven model and focus dollars there first. Television remains the biggest advertising medium, representing more than 37% of all spend. The 2016 projected worldwide spend for television advertising is $214 billion 1. And it s no wonder given that, on average, U.S. adults are exposed to more than 4 hours of television a day 2. The SeaChange Infusion Spot ad insertion system opens doors to these revenue streams from both local and national advertisers who want to target regionally. SEACHANGE INFUSION SPOT Proven heritage as the market-leading ad insertion system Complete system automation High reliability ensures revenue opportunities are not missed Integrated with other industryleading solution providers Unmatched price and performance Scales with increases in channel capacity, geographic zones and DMAs 1 Source: WPP s GroupM (This Year, Next Year, December 2015), more info: groupm.com 2 emarketer, September 2015

4 SeaChange Infusion Spot The Infusion Spot ad insertion system is an intelligent and completely automated system that allows providers to offer regionally-targeted, brand-building advertising opportunities on multichannel television. It opens doors to entirely new revenue streams from local and national advertisers who want regionally-focused campaigns rather than expensive, national promotions. Infusion Spot also supports providers own marketing efforts with tremendous upsell opportunities since they can now promote additional services as well as premium television offerings based on different DMAs. Infusion Spot has a proven heritage in allowing providers to maximize their ad targeting abilities as well as increasing their advertisers efficiency. Local ad insertion is not inserting advertisements into local network s stations; rather it is the local service providers inserting advertisements into the cable network s broadcasts. Typically 2-3 minutes per hour are designated for local insertion. Targeting is done based upon pre-determined, designated marketing areas (DMAs), allowing advertisers to target advertisements to specific regions a luxury not afforded with nationally broadcast advertisements. For providers who are looking to effectively increase advertising revenues in their operations, Infusion Spot offers the leadingedge mix of software and hardware components that make it effortless to do so. It allows the quick and easy expansion of revenue streams and scales effortlessly when the time comes to add channel capacity. Most importantly, Infusion Spot is a completely automated system that seamlessly integrates into existing day-to-day operations.

5 Complete SeaChange, along with our established partnerships, offers everything necessary for an end-to-end, completely automated digital ad insertion system. Infusion Spot supports MPEG-2 and H.264 in both standard definition and high definition formats as well as provides support for both short and long form content. From transcoding to insertion to verification, a fully integrated solution helps to eliminate drop outs, black screens and bad splices that can result in unhappy customers and costly make-goods. Additionally, Infusion Spot+ offers redundancy to ensure ad delivery and further protect ad insertion revenue. To help complete the picture, SeaChange has established business partnerships with the industry s leading manufacturers, ensuring a complete and fully integrated end-toend operation and can recommend thoroughly tested solutions from our technology partners, including Harmonic, Cisco, Imagine and others. Targeted Infusion Spot can be easily enabled to target beyond the traditional DMA. Utilizing established partners, providers have the ability to target with demographic information, right down to the household level. Providing this type of targeting allows advertisers to further tune their campaigns, ultimately making them more effective. This in turn means advertisers will pay a premium for these new avails, and generate more revenue for providers.

6 Automated Infusion Spot is a completely automated process from the moment the insertion schedule is set and the spots are provided. It completes every task necessary for fulfillment without intervention. A third-party splicer monitors the network feed for an embedded SCTE 35 message indicating an upcoming commercial break The splicer notifies the inserter of the pending commercial break At the scheduled time, the inserter begins playing the commercial and sends a command to the splicer to insert the commercial into the network feed Once the commercial insertion is complete, the system notes successful playout. These verifications are delivered to a third-party Traffic and Billing system for verification and billing Network Feed SCTE 35 Message Splicer SCTE 30 Video (Spot) Video (Spot) Content Prep Spot Master Video Library Spot Inserter Schedules Spot Scheduler Station Spot Database Infusion Spot System

7 Proven Infusion Spot is the pre-eminent television advertising delivery system. With Infusion Spot, our provider partners have streamlined the cable advertising industry as we know it today. With over 75,000 channels deployed worldwide inserting over 5 million advertisements each day, Infusion Spot continues to prove invaluable. With more than 60 million hours of advertising delivered it is the very essence of a proven solution. THE INFUSION SPOT FAMILY OF PRODUCTS Spot Software schedules, manages and tracks the insertion workflow Spot Scheduler Station receives and distributes schedules and provides real time, centralized monitoring of the system Spot Database stores schedules, logs, verifications, configurations and Spot tables Spot Inserter cues ads for playback Spot+ provides redundancy for Spot Third-Party Splicer inserts local advertisements into a network feed Third-Party Traffic and Billing system generates schedules and provides billing from verifications Inserting over 5 million advertisements every day increase your advertising revenue with Infusion Spot.

8 ABOUT SEACHANGE INTERNATIONAL, INC. Enabling our customers to deliver billions of premium video streams across a matrix of pay-tv and OTT platforms, SeaChange (Nasdaq: SEAC) empowers service providers, broadcasters, content owners and brand advertisers to entertain audiences, engage consumers and expand business opportunities. As a three-time Emmy award-winning organization with over 20 years of experience, we give media businesses the content management, delivery, measurement and analytics capabilities they need to craft an individualized branded experience for every viewer that sets the pace for quality and value worldwide. Visit SeaChange International, Inc. 50 Nagog Park, Acton, MA USA T F _ SeaChange International, Inc. SeaChange is a registered trademark and SeaChange Infusion Spot is a trademark of SeaChange International, Inc. All other marks are the property of their respective owners. While every effort is made to ensure the information given is accurate, SeaChange does not accept liability for any errors or mistakes which may arise. All features, specifications, system requirements and/or compatibility with third party products described herein are subject to change at any time without notice.