Member Station Affiliate ProgramMember Station Affiliate Program

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• Our award-winning products provide an outlet for retail partners to generate revenue and support PBS

• PBS Video aggregates many of the great programs that have aired on public television and distributes them through a wide assortment of distribution channels

• PBS business extends from traditional retail to direct-to-consumer channels

– Product supported by new mass retail distribution partner, Paramount– PBS Direct-to-Consumer distribution with new partner GSI Commerce – PBS Educational Video extensions

• 250 Unique on-air DR campaigns viewed by millions of people per year• 500+ new releases each year• PBS acquires 3rd party titles that appeal specifically to the PBS

demographic• Dedicated staff focused on sales, marketing and merchandising

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• Over 4,000 products carried in store

• Over 50 special interest categories

• History• Arts • Issues & Events

• Over 300 PBS Kids products across 10 properties

• Plush dolls• Bedding • Personalized products

• Wide selection of program related merchandise

• Books• CDs

• Over 500+ new products added per year

PBS Ecommerce Merchandising

Q1’07

This is a sku intensive business, driven by This is a sku intensive business, driven by volume to make moneyvolume to make money

37%

34%

19%

6% 3% 1%

Arts

History

News, Science &Religion

Nature, Health & Travel

Business & Home

Kids

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PBS has three distinct direct-to-consumer distribution channels that have enormous reach and potential

– PBS Home Video Catalog • 8M Circulation• Promote membership

– ShopPBS Online– PBS On-Air offers

PBS Direct-to-Consumer Distribution Channels

Integrated across channels to ensure a holistic customer experience

ShopPBS was named one of the top 400 ecommerce sites by Internet

Retailer

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2007

Online StoresOnline Stores50+50+

Net Merch SalesNet Merch Sales$$1,000,000,000+1,000,000,000+

VisitorsVisitors795,000,000795,000,000

Pages ServedPages Served11,170,000,00011,170,000,000

Active SKUsActive SKUs 3,170,0003,170,000

Unique Images & Unique Images & DescriptionsDescriptions6,800,000+6,800,000+

OrdersOrders14,700,00014,700,000

GSI’s Leading Retail Partners

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GSI Commerce Company Overview

• Three fulfillment centers in KY (~1,500,000 sq. ft. )

– Purpose-built for multi-category direct fulfillment

– Expect to ship 32.7 million units in 2007

– Manage a ~600 drop ship network

• Two customer contact centers in Florida and Wisconsin

– 500+ seats each, with category-trained CSRs

– Associates drive 10-30% of partners’ direct revenues

– Expect to manage 12,000,000 contacts in 2007+

• GSI International based in Barcelona, Spain

– 12 languages, 10 currencies, 43 countries

– GSI International partners include HP, Skype, Logitech and Iomega

– Planned Asian language support in 2008

• Headquarters in King of Prussia, PA; (NASDAQ: GSIC)– 2,400+ employees across the organization; ~475 in

technology– Common Engine™ and Technology Services teams

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Function

Technology • Invested $60M in technology in 2006• Leading edge usability design and implementation• ShopPBS.com to be re-launched with Best-in-class technology

in 2007

Customer Service • Manages over 12,000,000 contacts per year• 24X7 Operations• Multiple 500+ seat Call Centers

Fulfillment • 1,500,000 Sq ft of warehouse space• Process & Ship over 30,000,000 orders per year• Multiple shipping methods offered to customers

Merchandising • Manage over 3,170,000 active SKUs• Sophisticated inventory management tools (JDA, Arthur

Planning, Retail Decisions)

Marketing • Over 100,000 Affiliates in our network• Dedicated in-house Interactive Design and Usability Agency

Services Provided by GSI Commerce

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ShopPBS.com Features

Layout & navigation• Daily updates• Boutiques• Top Sellers• Recently Featured• Fully Integrated Promo Engine• Features & Benefits Tables

Personalization• Targeted messaging• User registration/login • My Account• Order History/Tracking• Personalized

recommendations• Wish list• Email A Friend• Address book

Search• Filtering• Spell check/stemming• Advanced indexing• Synonym mapping

Shopping & Merchandising• Comprehensive

cross-sell/up-sell• Back-order/pre-sell• Product Bundling• Email a friend• Real-time content • Multiple product views• Product Collections• Product Sequencing• Cross-Category Product Population• Back-Order Management• Pre-Sell Management• Related content

Cart & checkout• Gift Card Redemption & Purchase• Persistent Cart • Accept Multiple Forms of Payment• Standard & Expedited Shipping• Canada• Ship Windows by SKU• Delivery Options by SKU• Drop-Ship Management• Real-Time Tax Calculations• Real-Time Shipping Calculations • Local tax calculator• Secure checkout• Gift Wrapping & Messaging

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Phone & email support• 24/7 operations• Skill based routing• Event management• Escalation procedures

Inbound contact• Cross sell/ up sell• Real time inventory view• Transaction history• Corporate/group sales

QA & training• Remote monitoring• Partner seminars• Rigorous hiring standards• Training rooms and auditorium• Online training tool• Mentoring/feedback ensures

quality service• Integrated performance

appraisals

Interactive voiceresponse• Call re-routing• Sales & service

segmentation• Automated phone orders

Call center access• Basic personal data• Customer profiles• Service history• Previous purchases• Personal preferences

GSI Commerce Customer Contact

Center

Dedicated PBS Customer Contact Team already in place

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Receiving & put away• Flexible receiving capability• All SKUs profiled• 7 day/week receiving

Storage• Bin size/location

optimization• Air conditioned facility• Wide variety of

shapes & sizes

Pick & pack• Pick to cart (by order)• Carton size optimization• Multiple systemic QA

checks

Reverse logistics• Returns processing• RTV management• Reconditioning

Inventory control• 4 cycle counts per year• Daily cycle counting• Intensified counting of

high value items

Shipping management• Rate shopping• Zone skipping• Multiple carrier relationships• Product profiling• Shipping windows set at SKU

level

Security• High-value goods stored in

secure storage systems• 24x7 digital security cameras• Security staff at all entry/exit

points

Value-added functions• Gift-wrapping• Gift messaging• Gift cards• Pre-sell management• Product bundling• Package inserts/bounce backs• Bulk orders• Back-order management

GSI Commerce Customer Fulfillment Center

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There is an opportunity for member stations to capitalize on the ShopPBS ecommerce solution at no cost or risk and to share in the financial success from the sales of these titles to your viewers

What - Promote commerce to your viewers and earn money on every purchase that comes from them

Why - Stations will generate new revenue and increase member loyalty at no cost to the Station

Affiliate Program Overview

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Affiliate Program Goals

INCREASE INCREASE REVENUEREVENUE

Increase Membership Increase Membership & Customer Loyalty& Customer Loyalty

NO SUPPORT COSTSNO SUPPORT COSTS

Our Goal is to present an easy way for all PBS Member Our Goal is to present an easy way for all PBS Member Stations to generate new revenue streams through e-Stations to generate new revenue streams through e-

commerce and to monetize web traffic to benefit the stationcommerce and to monetize web traffic to benefit the station

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• Generate new revenue by offering all PBS titles, including DR titles at the same time the national spots are running

• Begin selling other PBS merchandise including a wide selection of popular PBS Kids items

• Best of Breed e-commerce platform leads to high conversions and generates new sales

•Improved user interface helped grow PBS e-commerce revenue by 45%

Affiliate Program Benefits

INCREASE INCREASE REVENUEREVENUE

If you don’t make money, we don’t make If you don’t make money, we don’t make moneymoney

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• Large and diverse product offering will produce unparalleled shopping experience. Customers will come back more often to see what is new in your store

• Customers will receive superior support by a dedicated Customer Service and Call Center team

• Happy customers = higher future donations and potential new members

Affiliate Program Benefits

Increase Membership Increase Membership & Customer Loyalty& Customer Loyalty

Your Members are shopping online – they can be Your Members are shopping online – they can be spending their dollars with you!spending their dollars with you!

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• No inventory costs

• No IT costs

• No capital expenditures

• No customer service costs

• No overhead

•NO HEADACHES

Affiliate Program Benefits

NO SUPPORT COSTSNO SUPPORT COSTS

A $1Billion e-commerce infrastructure at your A $1Billion e-commerce infrastructure at your disposaldisposal

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Affiliate Program Business Terms

Revenue Share OpportunityRevenue Share Opportunity

Participants in the Member Station Affiliate Program will receive a revenue share of 12% of sales. (This is Net Revenue to the station!)

Your level of participation determines your level Your level of participation determines your level of profit of profit

Standard Affiliate Commission 10%

Local Station Affiliate Commission 12 %

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•Member Stations market titles and merchandise to your viewers:• On air • Online • In outbound emails to member base• Within program guides• Direct mail• Other

•Member Stations receive 12% of all sales resulting from customers that were referred by the Member Station

•There are no minimum sales requirements to earn commissions

•Member Stations are provided an online reporting tool to monitor sales activity through LinkShare

Overview

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•A new revenue stream for participating Member Stations

•Opportunity to venture into e-commerce without diverting precious funds from programming or from your station’s content website

•Opportunity to provide your viewers the best products and service

•Increased member loyalty as your station becomes the viewer’s main resource for all things PBS

•Monetization of web traffic

World Class Store = Happy Customers = Happy World Class Store = Happy Customers = Happy MembersMembers

Summary of Benefits

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Affiliate Program Overview

On-Air Spots

On-line Promotions

Email Marketing

Program Guides

Member Station

Process Orders

Fulfill Orders

Customer service

PBS & GSI

Merchandise and Manage Web Store

The PBS Affiliate Program enables you to be The PBS Affiliate Program enables you to be

profitable from profitable from Day One!Day One!

2020

Next Steps

• All parties sign PBS/Member Station Online Affiliate Contract

• Member Station signs LinkShare Affiliate Network agreement available on the website

• Kickoff marketing meeting to discuss implementation and strategies for increasing revenues for the station.

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AppendixAppendix

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On-air PromotionsOn-air Promotions

•PBS will produce generic spots promoting e-commerce that can be localized by Member Stations

•Member Stations will run spots in local inventory

•Spots have a call to action to purchase, driving traffic to your website or your unique store URL

(e.g. www.memberstation.org/shop)

Now you can combine tune-in and sale messages Now you can combine tune-in and sale messages and monetize your local airtimeand monetize your local airtime

Marketing to Viewers

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•Member Stations integrate promotions for video titles on your station website or e-mail newsletter:

• Product Modules • Banners• Buttons• Link in navigation bar

•PBS will provide template graphics

•GSI will track customers that come in from Member Stations’ websites so that Member Stations get credit for sales

On-line PromotionsOn-line Promotions

Marketing to Viewers

Our Online Marketing infrastructure will provide Our Online Marketing infrastructure will provide you with the tools to be successfulyou with the tools to be successful

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•Member Stations will include full page advertisements in Program Guides directing customers to your web site or unique shop URL

•Contextual mentions of your site within program articles and visual tags on programs available for sale within on-air guides

•Include your site URL in all direct mailings

•Remind your members of their special discount in their pledge fulfillment acknowledgements

Program Guides & Direct MailProgram Guides & Direct Mail

Marketing to Viewers

With new items to promote every month, your With new items to promote every month, your marketing messages remain freshmarketing messages remain fresh

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JOIN US TODAY!JOIN US TODAY!http://www.pbs.org/remotecontrol/basic/shoppbs.html http://www.pbs.org/remotecontrol/basic/shoppbs.html

FAQ FAQ http://www.shoppbs.org/affiliate/index.jsp http://www.shoppbs.org/affiliate/index.jsp