Assessment - Media

There are two media types to deal with in regards to their coverage of horse racing, the industry media (DRF, The Bloodhorse, BRISnet,
Thoroughbred Times, etc.) and the mass media (ESPN, NBC, CBS, ABC, USA Today, NY Times, etc.). The mass media plays to public opinion, usually
on the negative side - they were working it when Eight Belles broke down, but this year's Breeders Cup brought only a back page article on ProRide
and Zenyatta in the USA Today. Once upon a time horse races had huge audiences and commensurate coverage in the papers and on TV. The telling
sign has been the shift in perception of the industry from almost wholly positive to a majority now having a negative view of the sport. What they see
are the problems - Eight Belles and PETA make for much better ratings than a story like Barry Abrams' recovery from cancer. They hear the words
steroids, break down and then are fed stories about the ongoing crap between the horsemen and tracks. This isn't going to change, the mass media
will report on bankruptcies, reduced attendance and handle, anything that can provoke and evoke. They will however cover any major rivalries that
appear, because they draw viewers. The one that really is starting to irk me is ESPN. How can you throw Pat Forde, who couldn't find the business
end of a horse on a bet, at a story like Eight Belles or synthetic track surfaces? And would somebody please put "Hammerin' Hank" Goldberg out of
his misery? Kenny Mayne is one of the few who really likes horse racing, but they seemed to have stopped using him. And no more young blonde
girls who don't know sh*t (but definitely an improvement on Goldberg…)

The industry media was dominated for years by the Daily Racing Form and The Bloodhorse, they were the source of information on the industry.
Today with the explosion of the Internet their grip has lessened substantially. There are literally thousands of specialized horse sites like The Paulik
Report, Thoroughbred Times, Thoroughbred Ink, Pedigree Query, Equineline, Equibase, and BRISnet. Let's look at the major players and their role in the
horse racing world:

Daily Racing Form (DRF)

Close your eyes Dan. The venerable daily newspaper, America's Turf Authority since 1894. The problem is they still see themselves as a
newspaper, when in fact they are primarily an online information service. Their thinking is rooted in the glory days of newspapers and has been very
slow on the uptake to an online world.

The two blogs (which DRF promotes heavily) are probably two of the most rudimentary blogs out there, fundamental TypePad applications. No user
control over text formatting, no embedded documents, video, audio or the like. They are almost impossible to search - you have to go out to Google
and enter "FormBlog" and the topic in hopes of finding a post.

They just released their first handicapping DVD (way to go Dan!). Come on, it is 2008, you should be doing a comprehensive series of videos that are
available by physical DVD and online at DRF where purchasers can watch them when they want. Think the minimal physical product you can get
away with - and you have the ability to revise and add to the series without burning more DVD's or creating packaging. This is also true of the books,
they become long in the tooth because they have to be printed, when in reality most customers want them as PDF's or available online at DRF's site.
Again, you can easily revise and update the product without costing a fortune. No packaging, no printing, you can use video, audio, color, whatever
without penalty, no distribution costs, no returns.

Dan - If you had been able to easily update and revise "Betting Maidens and Two Year Olds", what would the product look like today? Video of tails
swishing, changing leads, review of first time starters PP's, updates on freshman sires. The possibilities are endless. And Dan, no one gives a rat's
ass that you have "a face that belongs on the radio". Think about the growing adoption of Kindle and the Sony Book Reader, are you just going to
ignore those growing markets?

Formulator was an application that was created by DRF without any real input from the users, which I think is a horrid mistake. With the wealth of
talent and experience available through the blogs, you could have had a much better product. The reality is that the real handicappers want access to
the raw data as well as the PP's, and they are willing to pay a premium for access. What you all did was basically come down off the mountain with
the clay tablets and said "we have finished it and it is good". That is a very newspaper like thing to do.

The newspaper side of the business is a sink hole - you have the cost of printing, distribution and returns. The downloadable Past Performances are
pure profit, no middleman, no printing, no returns, instant cash flow. Yet you can purchase an eight track edition of the newspaper for $4.50 and the
cost to download the same eight tracks on the cheapest plan is $14.25 (Three card package x 3). That's certainly a great way to attract customers -
make the most profitable version THREE TIMES the newspaper's price. Then if you have problems (the ubiquitous "xxxx was not found on this
server), good luck with the "Customer Service" department. And it takes thirteen separate steps to get at the online version.

Watching Dan and Crist struggle through the blog software and not understand online video, audio, etc. tells me where technology stands at DRF - it
is voodoo that is produced by the guys down the hall (or by contractors).

PGM's comment to me "use Equibase, they cost more but you get service" should raise the hair on the back of every DRFite's neck - your customers
are telling you that in many cases it is "too hard" to deal with you guys. Technological growth comes in waves, rather than incrementally. Coupled
with the predominate non-technology mindset, and you are setting up for a fall. Enter free BRISnet PP's in concert with the online wagering outlets
and you are losing your franchise.

My chat room at Thoroughbred Ink is already overwhelmed, and I am getting a new one
(http://www.flashcoms.com/products/community_video_chat/overview/). The cost for an unlimited license? $995. And this one comes with the ability
to do audio, video, a whiteboard… Do you think YOU could draw an audience with Friday night chats? Or use them as a way to teach people new
skills like body language, injuries, handicapping, lone speed, barbeques, pedigrees, two year olds and maidens, evaluating works… You can also
have user rooms where blog members can chat on subjects or just hang out. I am going to do it, and if I can do it…

We talked about a video library, the software for that is even cheaper. What about PodCasts? I would love to watch/hear Dan's comments on
maidens - it would actually make me buy a subscription to the DRF Plus. Capture the unique angles for new handicappers, make DRF the main site for
anything to do with handicapping. It is all about creating an online community - no less than MySpace, FaceBook or Second Life. In 2008, people meet
people online, and friendships occur among a very diverse group that would probably never happen in "real life".

Creating and keeping horse players is the attendance and handle for DRF - if they learned from you guys, they are probably going to stay put. This
brings up another point, with the growth of the female handicapper sector, where the hell are the women??? Of course after the 86 you guys gave
Lauren… They are good handicappers, have a ton of pedigree knowledge and DRF needs a Laura, Annie, Sharon, or Katie to stir the pot and attract
more females to the sport. Trust me, they WILL let you know when you do something they don't like.

Look at the things we do in FormBlog that creates potential value for DRF - the Binnacle List of horses that are out of action due to injury. Why not
institutionalize that and create a category of "Injuries" like ESPN does for major league players? Also a running list of retirements and deaths.
Handigambling is another that should be institutionalized; give away hats, books, DVD's, whatever to the winner of each contest. Tighten the format
of the exercise, hold a more comprehensive post-mortem, and teach people handicapping and money management/wagering strategies.