Memo 1

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Epix.xlsx

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.