“INSPIRATION ON DEMAND” FROM THE INSPIRATION NETWORKS MARKS TWO YEARS OF SURPRISING VOD SUCCESS

Inspiration Video On Demand remains the only faith-based VOD platform.

Indian Land, SC, May 16 2008  – After nearly two years in the market, Inspiration Video on Demand is a proven success. “We’ve demonstrated convincingly that there is a market for inspirational content in the ‘on demand’ space,” said Bill Airy, COO of The Inspiration Networks, which produces Inspiration On Demand, the only nationally-distributed inspirational VOD platform. “And we’ve proven that consumers want and will watch the wide variety of inspirational content that we are providing.”

Airy recalled that many were uncertain when the organization announced that it was launching an on-demand product. “There were many questions. How strong was the quality? Was there enough content? How would consumers respond? Now, two years later, we know that there is a market. That people will watch. And that this product is competitive.”

Airy noted that Rentrak data consistently has reported that Inspiration On Demand ranks in the top half of networks offering content in the ‘TV Entertainment’ category. “In March, for example, we ranked 12th among 24 networks in the category in markets where Inspiration On Demand is available. This is very respectable, particularly considering the level of promotion conducted on behalf of some of other content in the general market.” (Data is from Rentrak OnDemand Essentials, from October 2007-March 2008.)

Airy said that Inspiration On Demand is carried on nearly 70 systems representing seven MSOs. “As we have the opportunity to show the results to industry leaders, we believe that more systems will add our VOD product. And more consumers will discover Inspiration On Demand themselves.”

Airy noted that Inspiration On Demand includes a wide variety of content including lifestyle programming for women (e.g., how-to programs, exercise, cooking, as well as discussion of topics of special interest to women) and a variety of inspirational content. “Like everyone else involved in VOD, we have experimented with formats, content, and length.”

One of the surprises of these two years of VOD activity has been the enormous interest in content for kids. “Our organization long has been committed to creating original content for kids, seen on our domestic and international networks,” Airy said. “For our VOD efforts, we have aggregated some of the best of our own content as well as exclusive content from other producers.” Overall, this has received more viewing than any other category with more than 45% of all viewing nationwide.

“The success of our kids’ content demonstrates why our content can be such an asset to cable systems,” Airy said. “We are educating parents about VOD and driving them to see the value of VOD for their kids. And, because of our efforts, people in many markets have realized that VOD is a wonderful, family-friendly resource. Parents love the fact that they can turn to Inspiration On Demand any time, day or night. And they are doing so in increasing numbers across the country.”

Airy also reported strong viewer response to music content, which includes original programs, specials, and concerts from many genres such as urban, traditional, contemporary, Gospel, and Christian Rap. “Music is a solid performer nationwide, and, in some markets, accounts for more than 30% of views.”

There also has been a growing viewership for teens and young people content. “Produced by our Steelroots division, this is fairly radical and not typical inspirational material,” Airy said. “This is attracting yet another audience to the VOD platform.”

“In the coming months, we will be introducing additional content that we know our consumers are eager to watch. Our VOD success represents a huge opportunity to grow digital penetration among inspirational consumers, and help cable operators reach an entirely new audience, one that often is hard to reach. We know that we will be able to build on what we have learned to make Inspiration On Demand even more impactful and important for the industry in the years to come.”

About The Inspiration Networks:

The Inspiration Networks are available to more than a billion people worldwide through multiple distribution platforms, including Internet Broadband ( www.inspiration.net ) and four satellite and cable TV networks (INSP - The Inspiration Network; i-Lifetv - Inspirational Life Television; LFC - La Familia Cosmovision; and INI - Inspiration Network International). The Inspiration Networks also operate “Inspiration Video On Demand,” the first inspirational platform for cable television video on demand (VOD) delivery; and “Inspiration Global,” providing broadband video content in the world’s four major trade languages – French, Italian, German, and Spanish.

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