Memo 1
EPIX Demand and Cost
| Price | Number of Subscribers (Thousands) | Cost of License Fees (Thousands) | Divisional Sales, General and Administrative Costs (Thousands) |
| $5.00 | 29.974 | $ 134.883 | $ 14.50 |
| $5.50 | 29.256 | $ 131.651 | $ 14.50 |
| $6.00 | 17.822 | $ 80.199 | $ 14.50 |
| $6.50 | 22.657 | $ 101.956 | $ 14.50 |
| $7.00 | 19.897 | $ 89.537 | $ 14.50 |
| $7.50 | 16.671 | $ 75.017 | $ 14.50 |
| $8.00 | 20.492 | $ 92.213 | $ 14.50 |
| $8.50 | 20.000 | $ 89.998 | $ 14.50 |
| $9.00 | 19.760 | $ 88.920 | $ 14.50 |
| $9.50 | 17.123 | $ 77.053 | $ 14.50 |
| $10.00 | 12.644 | $ 56.896 | $ 14.50 |
| $10.50 | 12.785 | $ 57.531 | $ 14.50 |
| $11.00 | 12.216 | $ 54.974 | $ 14.50 |
| $11.50 | 13.246 | $ 59.608 | $ 14.50 |
| $12.00 | 8.637 | $ 38.867 | $ 14.50 |
| $12.50 | 10.595 | $ 47.678 | $ 14.50 |
| $13.00 | 5.857 | $ 26.357 | $ 14.50 |
| $13.50 | 2.615 | $ 11.768 | $ 14.50 |
| $14.00 | 2.739 | $ 12.326 | $ 14.50 |
| $14.50 | 5.291 | $ 23.809 | $ 14.50 |
| $15.00 | 3.051 | $ 13.730 | $ 14.50 |
Estimates of market penetration in the Tri-State Region based on different price levels. License fees represent the fees that we must pay to Epix for the rights to re-transmit their channels. Fees are based on the number of subscribers.