Exhibit 4:

Ad Revenue
Calculator
Ad Revenue
Calculator
Current

2007 Base

Scenario 1

Scenario 2

Scenario 3

TV HH

110,000,000

110,000,000

110,000,000

110,000,000

110,000,000

Average Rating

1.0%

1.0%

1.2%

0.8%

1.2%

Average Viewers
(Thousand)

1100

1100

1320

880

1320

Average CPM*

$2.00

$1.80

$1.80

$3.50

$2.50

Average Revenue/Ad
Minute**

$2,200

$1,980

$2,376

$3,080

$3,300

Ad Minutes/Week

2016

2016

2016

2016

2016

Weeks/Year

52

52

52

52

52

Ad Revenue/Year $230,630,400

$207,567,360

$249,080,832

$322,882,560

$345,945,600

Incremental
Programming Expense

15,000,000

20,000,000

2006 Actual

2007 Base

Scenario 1

Scenario 2

Scenario 3

Assumptions

Exhibit 5: Financials
Revenue
Ad Sales $230,630,400
Affiliate Fees

$80,000,000

Total Revenue $310,630,400

$207,567,360 $249,080,832 $322,882,560

$81,600,000

$81,600,000

$81,600,000

$289,167,360 $330,680,832 $404,482,560

Insert scenario results from

$345,945,600revenue calculator
Grows 2% per year with
$81,600,000population
$427,545,600

Expenses
Cost of Operations
Cost of
Programming
Ad Sales
Commissions
Marketing &
Advertising

$70,000,000

$72,100,000 $72,100,000 $72,100,000

$72,100,000 Grows 3% per year with inflation
$
$
$
$
Add incremental programming
$55,000,00055,000,000
55,000,000
70,000,000
75,000,000
expense

SGA

$6,918,912

$6,227,021

$7,472,425

$9,686,477

$45,000,000

$60,000,000

$60,000,000

$60,000,000

$40,000,000

$41,200,000

$41,200,000

$41,200,000

Total Expense $216,918,912

$234,527,021 $235,772,425 $252,986,477

Net Income

$93,711,488

$54,640,339

Margin

30%

19%

$94,908,407 $151,496,083
29%

37%

$10,378,368 3% of ad sales revenue

Reflects increased spending of
$60,000,000$15M
$41,200,000 Growing with inflation 3%
Spreadsheet calculates
$258,678,368automatically

Spreadsheet calculates
$168,867,232automatically
Spreadsheet calculates
39%automatically

Dana Wheelers Strategy No. 3

Targeting the Fashionistas and the
Planners/Shoppers 50% of total viewers

1.

Includes a high percentage of premium

segment of women (18-34).

2.

Planners/Shoppers appeal to advertisers of

new products in the league. They are also
most vulnerable to convert to Fashionistas.

3.

This is the only strategy that increases both

CPM ($2.5) and rating (1.2). Thus the
additional $20m annual expenditure can
be met with the increased advertising
revenue.

4.

Covers 50% of the households which

helps them maintain the MARKET LEADER
position.

5.

Resolves Fraziers fears of reducing

advertiser's cost.

6.

Programming must be focused to both

groups; there will be place to extend to
Situationalists.

7.

Higher percentage of the premium

segment (women aged 18-34) which is
the core group. This reduces the
chances of failure of strategy.

8.

This will help get back the lost viewer

from Lifetime (younger women)