LG 9/15

Modeling and Incremental Funding Dynamics

• Incremental Funding Dependency: Financial allocations for incremental media spending hinge directly on the operational success and performance validation of underlying predictive models.

• Clarity and Forecasting: Operational visibility into global market support will improve as modeling performance stabilizes and validates initial projections.

• Content Support Influx: Contingent on modeling results, incremental funds are designated to support major streaming titles, including:

  • Yellowjackets

  • Dexter

  • Tulsa King

  • Frisco Kings

• Leadership and Market Expansion: Ongoing discussions with executive leadership focus on operational outlines, responsibilities, and market investments. Current entry roadblocks persist across LATAM and Australia while line-of-sight clarity remains pending.

Global Market Activations and Paid Media Capabilities

• LATAM Paid Media Operations: Paid media execution capabilities are active and operational across key Latin American territories, specifically Chile, Argentina, and Colombia.

• Pluto TV Campaign Launch:

  • A major campaign integration with Pluto TV launches on October $1$ following tech stack migration and platform convergence across LATAM, Brazil, and Mexico.

  • This launch represents a sizable financial commitment for Q$4$.

  • Smaller active line items are deployed in Argentina, Chile, and Colombia to establish a competitive presence for global Paramount investments compared to local operators.

• Post-World Cup Momentum: Media strategy aims to leverage momentum built during the World Cup to drive expanded distribution in regional markets via paid media.

• Property Distribution: Paid campaigns are being evaluated for high-impact content, including South Park and active UFC fight rights.

• Media Buying Leadership: Campaign execution and regional media buying across these territories are directly managed by Aaron and Nick.

Campaign Launch Strategies and Asset Delivery

• MobLand Launch Focus:

  • The primary operational agenda item centers on the global launch of MobLand.

  • Asset delivery is fully squared away for international markets, adhering to routine asset provision without high-impact custom units.

  • Rotational asset delivery is confirmed across Canada, the UK, and Germany.

• Dexter Campaign Execution:

  • A dedicated campaign brief for Dexter covers execution in the UK and Germany.

  • A premium roadblock placement has been signed off and locked in for the UK, targeting a high-visibility platform presence on the $30\text{th}$.

  • Expectations and budgets for Germany are being processed alongside the UK brief.

South Park Campaign Strategy and Content Policy

• Season Storyline and Branding Shift:

  • The upcoming season of South Park introduces an in-show storyline where Donald Trump renames a local lake to "Lake America."

  • As a direct consequence within the show's narrative, the title of the show itself is temporarily changed from South Park to South America for the new season.

• Ad Policy and Compliance:

  • The campaign creative is adjacent to political commentary but does not violate standard ad policies regarding political statements.

  • Promotional materials contain no graphic content and do not depict explicit political figures or Trump characters directly.

  • Audio-visual (AV) trailer assets consist of benign, historical show clips, some dating back several years.

• Subscriber Deficit Recovery Strategy:

  • South Park launches within $4\text{ days}$, though creative assets experience standard production delays from South Park Digital Studios.

  • The title is integrated into Canada's rotational plan but is being leveraged as a key performance driver to make up a global subscriber deficit.

  • The deficit resulted from a significant subscriber shortfall following a recent Zufa photo event campaign in Canada and other international territories.

  • Because South Park possesses a proven track record, it is positioned alongside MobLand as a turnkey lever to acquire subscribers and close the financial delta.

  • Unallocated media funds can be rapidly deployed to expand South Park campaigns across restricted partner networks globally.

Operational and Financial Administration

• Invoice Processing and Error Resolution:

  • Invoice tracking across global media partners is managed by Pascal.

  • A billing discrepancy occurred in the GSA region where an invoice was issued with an incorrect date of $12/01/2025$ instead of $12/01/2026$.

  • Ernie from the finance team resubmitted and reprocessed the corrected invoice documentation following requests from the LG finance group.

• Operational Scheduling Constraints: Operational communications must accommodate travel schedules, train connectivity dropouts (such as past dropped calls with Mike), and executive commitments involving Michelle Garcia.

Connected TV (CTV) Share of Voice (SOV) Analysis

• ATL Agency Planning Gap:

  • Above-The-Line (ATL) agencies plan broad traditional media buys but do not directly execute Connected TV (CTV) media, leading to underinvestment in CTV environments.

• Spend Threshold Modeling:

  • An evaluation model is requested for a $4\text{-week}$ campaign across LG smart TV ecosystems in the UK and Germany.

  • The study determines the spend required to achieve $20\text{\%}$ Share of Voice (SOV) and $30\text{\%}$ SOV on LG devices.

• Execution Paradigms:

  • Untargeted Deployment: Broad reach across the entire LG device universe.

  • Targeted Deployment: Narrowed execution focusing on heavy streaming households or an Adult $25\text{--}54$ demographic if broad targeting proves cost-prohibitive.

  • Takeover Mechanics: Incorporating one or two $4\text{-hour}$ platform takeovers during a $4\text{-week}$ flight versus standard rotational media buys.

• Diminishing Returns: Higher SOV targets ($40\text{\%}$, $50\text{\%}$, $60\text{\%}$) encounter exponential cost increases for incremental reach.

• European Expansion Potential: Once validated in the UK and Germany, this CTV share-of-voice framework may be extended to secondary European markets like Italy and France, where no ATL media spend is currently allocated.

Streaming App Ecosystem and Platform Metrics

• Consumer App Usage Benchmarks:

  • Across target international markets, smart TV consumers actively utilize an average of $2.5$ SVOD applications over a $30\text{-day}$ period.

  • The vast majority of active households limit regular streaming usage to between $2\text{ to }3$ total applications.

• Paramount+ Platform Ranking:

  • Paramount+ currently ranks between $7\text{th}$ and $11\text{th}$ in Monthly Active Users (MAUs) within the international LG TV ecosystem.

• Tiered Ecosystem Hierarchy:

  • Top Tier (Market Leaders): Prime Video, Netflix, and Disney+ consistently occupy the top three positions in every region.

  • Middle Tier (Local Competitors): Comprising $2\text{ to }3$ market-specific SVOD services that capitalize on localized content, native language programming, local sports rights, competitive pricing, and hardware bundle discounts.

  • Lower Tier (Global Challengers): HBO, Paramount+, and Apple TV+ occupy the remaining user base.

• Growth and Acquisition Strategy:

  • Strategic objectives require advancing Paramount+ from an $11\text{th}$ place ranking to at least $5\text{th}$ place.

  • Bridging this gap requires acquiring an active base of approximately $10,000\text{ to }100,000$ incremental monthly active users.

  • Sustained growth requires an continuous, "always-on" CTV presence entering Year $4$ of platform alignment.

  • Tactical execution relies on running permanent non-installed targeting line items (e.g., "Paramount+ Not Installed") optimized continually across dayparts, creative assets, and featured titles.

  • A dedicated CTV media line item in the $2027$ budget is necessary to secure persistent home-screen placement and drive platform acquisition.