DISASTER RECOVERY

• Ability to continue relatively normal business operations following, or even during, a catastrophic event that disables the operation of a channel’s primary distribution infrastructure:

- Revenues from Distribution and Ad sales have increased exponentially over the past several years.

- We have heavily leveraged our regional distribution “hubs” to support expansion and growth while increasing efficiency and lowering operating costs.

- We must “back up” critical components of the distribution infrastructure since so many channels now operate from these regional hubs.

FOUR PRIMARY AREAS OF EXPOSURE

The ContentEach channel’s library usually exist as a single copy residing at a single physical location. The cost, time, and logistics required to replace a destroyed library would be enormous. As long as the content is intact, it can always be transported to an alternate playout facility.

The Playout FacilityAlthough individual system components within the facility are highly redundant and resilient, the facility itself that houses the system could be vulnerable to natural disaster, man-made disaster (e.g., fire, flooding, plane crash), or even terrorism.

The Uplink FacilityThe vulnerability is similar to that of the playout facility.

The Satellite TransponderAlthough there are spare transponders on board, they may not be available for our use. Additionally, the entire spacecraft could be destroyed or rendered inoperable (rare, but it does happen).

STATUS OF DR PREP – EMEA (CE/DE/IT/UK/RU/AF)

Risk Element Mitigation Plan Status

ContentShort-term/Long-term

(ST) Content currently resides in digital form at Encompass w/ some backup on tape at GS.

(LT) Plan is to back up all transmission masters on cloud-based storage. To be deployed

concurrent with MC

Complete

In Progress (FY15)

PlayoutShort-term / Long-term

(ST) Service Provider (Encompass) Mitigation Plan in

place - backup from other Encompass facilities.

(LT) SPT also exploring additional options as part of

long-term goal to bring playout in-house

Completed

In Development (FY17)

Uplink Service Provider Mitigation Plan in place (Eutelsat)

Completed

SatelliteSatellite Operator Mitigation Plan

in place(Eutelsat) Completed

STATUS OF DR PREP – EMEA (MSM)

Risk Element Mitigation Plan Status

ContentBack up transmission masters on digital tape. Store at off-site

locationCompleted

Playout Working with Service Provider to develop Mitigation Plan.

In Development

Uplink Service Provider Mitigation Plan in Place (Arqiva)

Completed

Satellite Service Provider Mitigation Plan in Place (BSkyB)

Completed

STATUS OF DR PREP – SPAIN

Risk Element Mitigation Plan Status

ContentBack up transmission masters on digital tape. Store at off-site

locationCompleted

Playout Contract with secondary provider for provisional back-up playout

service

Completed

Uplink Service Provider Mitigation Plan in Place (Sogecable)

Completed

Satellite Service Provider Mitigation Plan in Place (Canal Plus)

Completed