Executive Update for the Workflow Automation Project

1. Workflow Automa-on Project
Program Review

2. Workflow Automa-on Project
For the past 3 years, the Ericsson account team has submi:ed numerous proposals to
HBO and we have engaged Ericsson in three major projects.
2
Cri-cal
Design
Review
Workflow
Automa-on
Phase I
Mezzanine
File Transfer

3. Ericsson Professional Services Engagements (1 of 3)
3
CDR was our first professional services venture with Ericsson. Ericsson delivered sub-
par end products to HBO and we negoHated a 25% cut in its final payment.
2009
Cri-cal Design
Review
CDR aimed to define
HBO’s workflow auto-
maHon requirements
for encoding, water-
marking, QC, and dis-
tribuHng our non-
linear content and
design a soluHon
based on the CMS
WatchPoint product
architecture.
Project Results
$21
$35
$19.00
0
20
40
60
80
Proposed Fee Jan-10 Payment Apr-10 Payment Reduced Fee Total Payment
$ Thousands
$75
$56
-
Project Financials
Expected End Products Delivery Results
• HCC workflow detailed requirements
• HCC Technical Architecture (Current)
• SoluHon for non-linear DR
• ImplementaHon roadmap
• Requirements were very high level (aber rework)
• Tech architecture lacked substance (aber rework)
• Proposed pricing was $892,851
• No forward movement was approved
HBO reduced the proposed fee by $19K (25% discount) because we were not saHsfied with the final deliverables.

4. Ericsson Professional Services Engagements (2 of 3)
4
Workflow AutomaHon aimed to automate HOD workflows. Its first manifestaHon was
GO Mobile workflow. Due to project delays we went with Plan B (WorkflowTracker).
2010
Workflow Auto-
ma-on Project
WAP aimed to imple-
ment the Azuki work-
flow in support of the
GO Mobile iniHaHve.
However, due to
schedule delays and
unacceptable deli-
verables, MPO had
to revert to our Plan
B soluHon, i.e., Work-
flowTracker.
Project Results
$2.94
$0.28
$0.32
0
1
2
3
4
Proposed Fee HW/SW Professional Services Reduced Fee Total Payment
$ Millions
$3.53 $3.21
Project Financials
Expected End Products Delivery Results
• HSE Templates and Adaptors
• HCC Templates and Adaptors (GO Mobile)
• Template and Adaptor Plug-ins
• Requirements/Design docs
• Completed but not validated/accepted by HBO
• Completed but not validated/accepted by HBO
• Completed but not validated/accepted by HBO
• Incomplete
HBO reduced the professional services fee by $316K (53%) because we were not able to validate their acceptance
nor were they delivered on Hme.
-

5. Ericsson Professional Services Engagements (3 of 3)
5
Phase I Mezzanine File Transfer enables the transfer of AS02/J2K mezzanine assets
between our Hierarchical Storage Management systems.
2011
Mezzanine File
Transfer
Phase I aims to deliver
the ability to transfer
complete AS02/J2K
bundled assets
between the high
speed, highly-
concurrent USP-V
storage and the high-
capacity Central
Repository storage
at HSE. This workflow
will track all assets
placed in the Central
Repository and main-
tain the metadata
associated with them.
Project Results
$118
$92
$200
$117
0
100
200
300
400
500
600
Proposed Fee PM ArHfact
(Paid)
Ingest Template/
Metadata Plugin
(Paid)
Purge/Archive Purge/
Transfer
and MXF Adapter
Total Payment
$ Thousands
$527 $527
Project Financials
Expected End Products Delivery Results
• Project Management arHfact
• Ingest Template and Metadata Plug-in
• Purge/Archive Purge/Transfer templates
• MXF Wrapper/Un-wrapper Adapter
• Completed and accepted by HBO
• Completed and accepted by HBO
• Delivered 12 weeks late (currently in UAT)
• AwaiHng final delivery (target 12+ weeks late)
To date, PM arHfact, Ingest template, and Metadata plug-in were delivered to and accepted by HBO. We are
awaiHng the final delivery of Purge, Archive Purge, and Transfer templates and MXF Adapter.

6. Outstanding Financial Obliga-ons
Contractually, we have the following financial obligaHons to Ericsson. These
were included in the current budgets.
6
• Phase I Statement of Work – 2011 Budget
– Purge/Archive Purge/Transfer Templates (Delivered and currently being tested)
– MXF Adapter
$317,025
$199,910
$117,115
• CMS WatchPoint Maintenance1 per annum – 2012 Budget $540,000
• Onsite Support Staff2 (per annum) – 2012 Budget
– MediaPath
– CMS WatchPoint
$253,800
Total
$1,110,825
Notes: 1. Maintenance fee applies to years 2, 3, and 4 of the contract
2. Support fees is based on a 4 year commitment

7. Show-stopper Issue
Ericsson has a contractual issue with Metaglue, which is delivering the MXF/ASO2 SDK
for the MXF Adapter.
7
• The issue is that Metaglue is offering to
indemnify Ericsson in the U.S. only,
whereas Ericsson is demanding global
coverage
• Ericsson needs this SDK in order to deliver
on the wrapping/un-wrapping capability
required by the MXF adapter
– Metaglue is actually the “Plan B”
soluHon; the original SDK vendor was
MOG
• Ericsson has asked HBO to get involved
with its Metaglue contract negoHaHons by
“weighing” in on the need for global
indemnificaHon
Current Issue Recommenda-ons
• Accept Purge/Archive Purge/Transfer
Templates (aber User Acceptance TesHng)
• Do not accept the MXF Adapter – there’s
no firm delivery date because the Ericsson/
Metaglue contract is subject to approval by
Ericsson headquarter in Sweden
• Stop Phase II project with Ericsson
• Bring CMS WatchPoint development in-
house (per Ma:’s recommendaHon on the
three possible HCC use cases)
• Re-negoHate our maintenance agreement
and on-site support contract in light of the
smaller CMS producHon footprint