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REDACTED - FOR PUBLIC INSPECTIONBefore theFEDERAL COMMUNICATIONS COMMISSIONWashington, D.C.In the Matter ofGame Show Network, LLC,Complainant,v.Cablevision Systems Corporation,Defendant.))))))))))))File No. CSR-8529-PEXPERT REPORT OF MICHAEL EGAN

REDACTED - FOR PUBLIC INSPECTIONTABLE OF CONTENTSI.PageINTRODUCTION .1II.QUALIFICATIONS .1III.METHODOLOGY .4IV.SUMMARY OF CONCLUSIONS.5V.THE PROGRAMMING ON GSN IS NOT AND WAS NOT SIMILAR TO THATON WE tv AND WEDDING CENTRAL .11A.B.C.GSN Is Not Similar In Genre To WE tv. .111.WE tv devoted 93% of its broadcast hours to its top five genres ofReality, Comedy, Drama, Movie, and News while GSN aired contentof those genres in less than 3% of its airtime. WE tv offersprogramming in 10 different genres while virtually all of GSN’sprogramming is found in just two genres. .112.The 2012 public {{****}} statements of GSN’s seniorexecutives affirm that it has been a Game Show network and not anetwork airing programming labeled by the Complaint as “relationshipand female-oriented reality.” The executives have stated bluntly thatthey hope to add a new genre of “real-life” shows in the future.23GSN And WE tv Do Not Have Similar Target Programming.251.The subject matters of GSN and WE tv programs differ dramatically.WE tv typically displays content for and about women in their familycentered ages with an emphasis on weddings, their families, and theirchallenges, all told from a distinctly female point of view. On theother hand, GSN airs programming centered on contests and the gamesare the primary subject. It is designed to attract those adults, both menand women, seeking, as GSN’s programming chief explained, “theexcitement and fun of winning.”.272.The programming content on WE tv and GSN looks and feels verydifferent, resulting in dissimilar network personalities and brands. WEtv’s appearance and point of view are traditionally female andpersonal. In general, GSN’s visual and audio qualities are genderneutral and “showbiz”-y. Like a traditional Game Show, GSN often“flashes and buzzes.” .353.An evaluation of the record of competition and cooperation betweenGSN and WE tv in the areas of programming, talent, and promotionreveals that there is no special relationship between the networks.39GSN And WE tv Are Not Similar In Programming Expenditure.42i

REDACTED - FOR PUBLIC INSPECTION1.WE tv’s {{****}} programming budget provides thefinancial resources for it to produce and acquire {{****}} programming, containing the attributes MVPDStypically value most. .432.Examined by multiple measures, WE tv invests {{****}} .473.VI.Compared to their broadly-penetrated cable network peers, WE tv{{****}}.49D.Conclusions Regarding Programming Content Similarity. .50E.Flaws In GSN’s Discussions Of Programming Similarity. .531.Regarding Genre. .532.Regarding Target Programming: GSN and Mr. Brooks fail to providea target programming analysis. .75GSN IS NOT AND WAS NOT SIMILAR IN AUDIENCE TO WE tv ANDWEDDING CENTRAL .76A.B.GSN Is Not Similar In Target Audience To WE tv. .771.An Abundance Of Consistent Evidence Makes It Clear That WE tv’sTarget Audience Is Females 18 - 49 and 25 - 54. .772.The Evidence Reveals That GSN’s Primary Target Audience Is AllAdults 18 Interested in Game Shows and Game Playing. .81GSN Is Not Similar In Actual Viewing Audience To WE tv. .871.A Comparison Of Audience Size By Household Ratings Reveals ThatWE tv’s Audience Varied Dramatically In Size Between Daytime AndPrimetime, While GSN’s Was Comparatively Stable, Indicating ThatTotal Day Averages For Household Ratings, By Themselves, Can BeMisleading In An Investigation Of Whether Or Not Two NetworksHave Similar Actual Viewing Audiences. .902.An Audience Size Comparison Of The Two Networks UsingCablevision’s Audience By Network Reports Evinces That WE tv IsViewed By A Far Larger Percentage Of Cablevision’s Customers.933.A Comparison Of Audiences Using Nielsen Ratings Makes It ClearThat GSN’s Viewing Audience Is Not At All Similar to WE tv’s InDemographic Composition, Specifically In The Demos Alleged ByGSN To Be The Audience Target For Both Networks And TheSubstance Of The Similarity, Women 18 – 49 and Women 25 – 54.95ii

REDACTED - FOR PUBLIC INSPECTION4.GSN Has Little In Common With The Other Members Of ItsInvention of “A Core Group Of National Cable Networks Predominately Viewed By Women.”.103C.Conclusions on Audience Similarity. .108D.Flaws In GSN’s Discussions Of Audience Similarity. .1091.Regarding Target Audience: GSN and Mr. Brooks fail to provide ananalysis of the target audiences of GSN and WE tv. .1092.Regarding Actual Viewing Audience .1103.Regarding Cablevision’s STB Data And Audience By NetworkReports. .1174.Mr. Brooks and GSN Misrepresent The Design Intent And Purpose OfThe Beta Research Study. It Is Not Used As A Cable SubscriberSatisfaction Survey, But Rather, It Is Employed As A Cable NetworkSales Tool.1185.The Price Per Rating Point/Ratings-Adjusted Price Metric Cited ByDr. Singer Is Not Designed For Or Intended To Be Used By A CableOperator When Making Carriage Decisions. As A Result, It Does NotInclude Most Of The Factors Considered By An MVPD When MakingSuch Evaluations.122iii

REDACTED - FOR PUBLIC INSPECTIONList of ExhibitsEgan Exhibit 1 –Documents Relied Upon by the ExpertEgan Exhibit 2A – Programs Aired During the Twelve Sample Weeks on WE tv and GSNEgan Exhibit 2B – Programs by Network with Show Descriptions and Genre IdentificationsEgan Exhibit 2C – Programming Schedules for WE tv for Each of the Twelve SampleWeeks with Each Program Color-Coded by GenreEgan Exhibit 2D – Schedules for GSN for Each of the Twelve Sample Weeks, Color-Codedby GenreEgan Exhibit 3 –Slide from WE tv’s 2010-11 Upfront Presentation, “Programmingmirrors key turning points in WE tv viewers’ lives”Egan Exhibit 4 –Excerpts from July 26, 2012 WE tv Affiliate Sales Team Presentation toComcastEgan Exhibit 5 –Slide from WE tv’s 2012-13 Upfront Presentation, “WE tv gets what herfamily is about”Egan Exhibit 6 –WE tv.com and GSN.com Screenshot ComparisonEgan Exhibit 7 –History of WE tv’s Promotional Barter Deals With Cable NetworksEgan Exhibit 8A – Actual Programming Production Expenses by NetworkEgan Exhibit 8B – Amortized Expenses for Acquired Programs by NetworkEgan Exhibit 9 –Detailed Listing of the 24 Networks Within 10% of GSN’s Subscriber TotalEgan Exhibit 10 –Slide from AMC Networks Lenders Presentation, April 2011Egan Exhibit 11 – Netflix TV Genres as of 9-13-12Egan Exhibit 12 – Two Slides from WE tv Presentations to MVPDs: (1) 2010 – Best YearEver For WE tv! and (2) 2011 – WE KEEP GROWING – BEST YEAREVEREgan Exhibit 13 – Two Slides from WE tv Presentations to National Advertising andProgramming Communities: (1) 2009 Was WE tv’s Best Year Ever! and(2) Research Study Regarding Women And The RecessionEgan Exhibit 14 – WE tv’s Presentation to Enlist MVPD Affiliates in “WE EmpowersWomen” Public Affairs Programiv

REDACTED - FOR PUBLIC INSPECTIONEgan Exhibit 15 – Two WE tv Advertising Sales Client Leave-Behind Pieces: (1) “WEFact Sheet (2010/2011)” and (2) “WE tv Marketbreaks – 1Q11”Egan Exhibit 16 – Three WE tv Internal Competitive Tracking Reports Of Ratings andAudience Delivery: (1) WE tv And Key Competitors PrimetimePerformance By Week For W18-49; (2) Oct 2010 Program Schedule ByNetwork With Ratings; (3) Monthly Comparisons – WE tv, Lifetime,Oxygen, Style, TLC, Bravo and E!Egan Exhibit 17 – Two Slides from WE tv Presentation to Comcast Regarding AfricanAmerican AudienceEgan Exhibit 18 – Four Slides from GSN Presentations to CablevisionEgan Exhibit 19 – Two Slides from GSN.com’s Affiliate Resource Portal: GSN StyleGuide, “Promise” and “Audience”Egan Exhibit 20 – List of Networks Included in Beta Research Corp. StudyEgan Exhibit 21 –Curriculum Vitae of Michael Eganv

REDACTED - FOR PUBLIC INSPECTIONI.INTRODUCTION1.My name is Michael Egan. I have been asked by counsel for CablevisionSystems Corporation (“Cablevision”) to assess, from a programming expert’s perspective, theclaim made by Game Show Network, LLC, (“GSN”) in its Program Carriage Complaint filedOctober 12, 2011 (“Complaint”) and in its Reply filed January 17, 2012 (“Reply”) that its cablenetwork, GSN, is and was “similarly situated” with WE tv and Wedding Central in programmingcontent and audience. I have also been asked to respond, as appropriate, to the declarations andreports of Timothy Brooks and Hal J. Singer in this proceeding, including as set forth in theDeclaration of Timothy Brooks dated November 19, 2012 (“Brooks 2012 Decl.”) and the ExpertReport of Hal J. Singer, PH.D. dated November 19, 2012 (“Singer Report”).II.QUALIFICATIONS2.I have worked in the cable television industry for more than 30 years, firstentering the business in 1979 with Satori Productions, a New York City-based televisionproduction company, where I soon became Producer and Production Manager. I joined the cabletelevision multiple system operator Cablevision Industries (“CVI”) in 1980, working there until1996. My initial position was corporate Director of Programming, and with the continuedexpansion of my responsibilities, I became Senior Vice President of Programming and ProductDevelopment and a member of the senior management team. During my tenure with thecompany, CVI grew from 38,000 to 1.25 million customers, becoming the eighth largest cableoperator in the United States, owning and operating cable systems in 16 states.3.As a senior executive at CVI, I was involved in all aspects of cable operations andstrategic planning, from policy development to system builds and purchases to content1

REDACTED - FOR PUBLIC INSPECTIONacquisitions and investments. Regarding content specifically, I had the senior responsibility forthe company for the negotiation of and company-wide compliance with hundreds of affiliationagreements encompassing license fees, marketing support, retransmission consent, carriagerequirements, and other arrangements with cable networks and broadcast programmers. I alsosupervised all aspects of channel lineup development and revision, product tiering, advertisingsales, and copyright administration; managed the company’s introduction of new products; andled CVI’s investments in the start-up cable networks Golf Channel, Food Network, and SunshineNetwork. As head of TV production activities for the company, I was responsible for allregional television studios and local programming departments. Through the years, CVI wonmany honors for excellence in production and programming from local and nationalorganizations, including NCTA, NFLCP, and local Emmys.4.In 1996, I co-founded Renaissance Media, LLC (“Renaissance”), which acquireda number of cable systems in partnership with private equity investors. In addition to myinvolvement in devising the business plan and the partnership structure, raising capital, andanalyzing and bidding on cable properties for Renaissance, I led corporate and field operations inprogramming, new product development, and advertising sales.5.During my 19-year tenure at CVI and Renaissance, I worked continuously withprogrammers as they sought my feedback on and involvement with their plans for networklaunches, proposed programming and/or branding evolutions of existing networks, and arguedfor distribution or revised business arrangements to address dynamic marketplaces. I also led allCVI research efforts in the programming, advertising sales, pay per view, and new productdevelopment areas.2