2011 03-i m-breakthrough-nextgentvmarketing

You Are Not A Couch Potato

Or words of wisdom from a guy who likes to push buttons

Things You Get When You Google “Smart TV”

Your Television is Evolving• Larger Screen Size• HD now the norm• DVR reaches Critical Mass• 3D begins• Wi-Fi now standard on TV

and Blu-Ray• Gaming Consoles deliver

content

Ways to make your TV Smarter

Buy a New TVBuy a BluRay

PlayerFIOS/Uverse

Buy an OTT (Over the Top)

Gaming Consoles

TVs with Built In WiFi

Panasonic VieraConnectTC-P50ST30-Plasma$1,250 – Best Buy

Samsung UN55D8000YF-LED$3,599 – Buy.com

SonyBravia XBR HX909 52”

$2,049 – East Coast TVs

Connected TVs

Sony Internet TV (GoogleTV)NSX-46GT1

$1,399– BestBuy.com

Panasonic TC-P55GT30

$2,199

Vizio Razor LED M550NV

$1,304 Sears.com

Samsung is making apps a central focus

Sony Bravia Internet

Vizio App Ecosystem

Yahoo Connected Product on Vizio and LG

Twitter on FIOS

Facebook on FIOS

HSN on FIOS

Consumers still don’t understand connected TVs

Marketer attention is looking towards ITV again as technology catches up

• Cable boxes are being upgraded with EBIF (Enhanced Binary Interchange Format) enabling limited 2-way functionality

• Cable Operators are feeling pressure from Internet and Over the Top Set Top Boxes (AppleTV, Boxee, XBOX, PS3) to modernize and offer advertisers Advanced TV Services

• Third Party Biased Independent shops over-selling ITV for their own purposes• DirecTV has seen significant uptick in campaigns, moving from 10 ITV campaigns 2 years

ago to 60 in 2010.• While more marketers seem to be trialing ITV, Unilever seems to be the only marketer

using it with consistency.

Strengths & Weaknesses of ITVStrength• Created new response channel for

consumer with TV• More likely to engage a loyal and

highly involved TV viewer• Lengthen engagement with mid-

funnel prospects

Weakness• Expensive• Limited and spotty geographic

reach• Incremental production costs and

Project Management hours• Short time availability to notice,

grab, and click

Canoe & ITV• Launched initial overlay/RFI

partners• 20MM EBIF HHs in 2010• 35MM EBIF HH by end of

2011

• Polling and Trivia in 2011

• No telescoping to Long Form due to Network demands that viewers not be taken away from content

Currently Available

Q1 2011 (Likely)

Future RFI Enhancements • Expand core capabilities and template options• Add electronic fulfillment• Enable RFI in-program segments• Integrate with backend systems for T-commerce applications

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Future Polling & Trivia Enhancements

• Enable use in commercial pod• Integrate with RFI• Enable deterministic voting

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Dish ITV Options

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Dedicated Long Form Channel

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iTV Costs•As a benchmark, local TV schedules generally have 15% premium for Interactivity with most providers recommending weekly spend levels of $150K - $200K to generate enough reach to drive significant interactive engagement.•Production Charges range from $10K - $50K depending on level of functionality and complexity. (again, most providers are happy to implement the creative execution without the help of 3rd Party Developers, unless major functionality is required)•Widgets on FIOS/U-Verse are technically free (Developer Kit is Open Source), but promotion of widgets are recommended between $75K - $100K to launch.

Game Consoles morph

Source: Nielsen March 2011

Consumers seem to want content over utility from ITV

Is there a demand for Connected TVs?

What’s the consumer preferred response tool?

Yet, Manufacturers will move forward

ROVI

Copyright ® 2010 Rovi Corporation. Company Confidential.

Installed Base of US Connectable Devices

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Copyright ® 2010 Rovi Corporation. Company Confidential.

Connected TVs by Brand

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Copyright ® 2010 Rovi Corporation. Company Confidential.Page 34

The Future = TV + Internet

Apps

Interfaces

Foreign Interfaces (Yahoo!, Google)

Native (Samsung, LG, Sony, Vizio)

Copyright ® 2010 Rovi Corporation. Company Confidential.

Applications

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Service ProvidersService Providers

Connected DevicesConnected Devices

Connected TV’sConnected TV’s

WebWeb

AppsApps

Copyright ® 2010 Rovi Corporation. Company Confidential.

Foreign Interfaces – Yahoo!

Page 36

Copyright ® 2010 Rovi Corporation. Company Confidential.Page 37

Samsung Smart Hub. Ads Powered by Rovi.

Copyright ® 2010 Rovi Corporation. Company Confidential.Page 38

Samsung Smart Hub. Ads Powered by Rovi.

Copyright ® 2010 Rovi Corporation. Company Confidential.

Sony NUX Advertising. Ads Powered by Rovi.

Default Banner SizeUnfocused State

Effective dimensions = 312w x 58h

Default Banner SizeUnfocused State

Effective dimensions = 312w x 58h

Expanded Banner SizeDefault Focused State

Effective dimensions = 312w x 125h

Expanded Banner SizeDefault Focused State

Effective dimensions = 312w x 125h

User presses Up arrow

Copyright ® 2010 Rovi Corporation. Company Confidential.

Where Internet TV is Going

Enhanced :30s

Telescoping commercials

Commercial bookmarking

Enhanced programming, product placement

Commerce

Targeted ads (demographic, geographic, psychographic)

Page 40

3-D: Real or Not Again?

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"It remains to be seen whether 3D TV is just a novelty or a new product category in the consumer electronics space," stated Paul Reynolds, electronics editor for Consumer Reports. But he added: "We can tell you 3D TV is the real deal: realistic, compelling and exciting."

What is 3-D?• Creating the illusion of depth or three

dimensions on a flat two dimensional display.

– With visual signals from two eyes separated slightly, the brain receives two versions of the same image at slightly different perspectives.

– Two cameras/lenses set side by side at the same distance from each other as a person’s pupils.

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Types of 3D

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Anaglyph

Stereoscopic

Auto-Stereoscopic

The Legacy Problem

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Three Key Areas of Distribution

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In Theater Home Theater 3-D Gaming

In a recent CTAM study on 3-D:The Good News:•57% of viewers agreed that 3D TV makes them feel like ‘they are part of the action’•48% said it makes them feel closer to the characters

The Not So Good News:•Only 29% of those currently in the market for a TV set would consider a 3-D set

Reasons:•Cost (68%)•Have to wear Glasses (57%)•Limited content availability (44%)

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A Look at 3-D Movies

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Grossed $20MM WW – 600 Screens#4 Best Reviewed Film 2008 – Rotten Tomatoes

Grossed $31MM WW – 681 ScreensOnly planned to run 1 weekend, ran 4 weeks

Grossed $1011MM WW (includes 2D) Grossed $114MM WW

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Gross $51.5MM $114MM WW

Gross $75.3MM$121.9MM WW

Gross $19.2MM$23.2MM WW

Gross $198.4MM$381.5MM WW

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Gross $19.7MM$20MM WW

Gross $293.0MM$381.5MM WW

Gross $196.6MM$884.6MM WW

Gross $119.4MM$285.1MM WW

And then there was Avatar…• $749.6MM Domestic as of 7/1/2010• $2.7B Total WorldWide• Widest release of an IMAX 3-D movie in

history: 261 screens

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Release Date: 3/26/2010Gerard Butler, America Ferrara, Jonah Hill

$216.2MM Domestic$478.2MM Total WW

Release Date: 3/19/2010IMAX Only

$9.4MM

Release Date: 3/5/2010Tim Burton Film

Biggest Opening Weekend for 3-D$334.2MM Domestic

$1,021.8MM Total WW

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Release Date: May 21, 2010

$232.2MM Domestic$324.2 Total WW

Release Date: June 18, 2010$289.0MM

$439.8MM Total WW

Release Date: April 2, 2010$162.8MM Domestic$491.2MM Total WW

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Release Date: 8/6/2010$42.4MM Domestic

$159.2MM WW

Piranha 3-DRelease Date: 8/27/2010

$25.0MM Domestic$79.8MM WW

Release Date:7/25/2010$251.5MM Domestic

$543.7MM WW

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Release Date: 9/10/2010$60.1MM Domestic

$296.2MM WW

Release Date: 10/15/2010$117.2MM Domestic

$170.0MM WW

Release Date: 9/24/2010$55.7MM Domestic

$139.9MM WW

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Release Date: 11/5/2010$147.9MM Domestic

$317.7MM WW

Release Date: 10/8/2010$14.7MM Domestic

$19.8MM WW

Release Date: 10/29/2010$45.7MM Domestic

$130.9MM WW

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Release Date: 11/24/2010$193.3MM Domestic

$503.3MM WW

Release Date: 12/17/2010$169.7MM Domestic

$381.7MM WW

Release Date: 12/22/2010$41.9MM Domestic

$191.4MM WW

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Release Date: 1/14/2011$92.3MM Domestic

$199.5MM WW

Release Date: 2/4/2011$17.5MM Domestic

$20.6MM WW

Release Date: 2/4/2011$72.2MM Domestic

$81.5MM WW

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Release Dte: 1/14/2a011$84.0MM Domestic

$120.7MM WW Release Date: 2/25/2011 Release Date: 3/112011

Upcoming Films

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Release Date: 3/25/2011 Release Date:4/8/2011 Release Date: 4/15/2011

Upcoming Films

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Release Date: 5/6/2011 Release Date:5/13/2011 Release Date: 5/20/2011

Upcoming Films

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Release Date: 5/26/2011 Release Date:6/17/2011 Release Date: 6/24/2011

Upcoming Films

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Release Date: 7/1/2011 Release Date:7/15/2011 Release Date: 7/22/2011

Upcoming Films

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Release Date: 8/3/2011 Release Date:8/19/2011 Release Date: 8/19/2011

Upcoming Films

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Release Date: 8/26/2011 Release Date:9/16/2011 Release Date: 9/23/2011

Upcoming Films

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Release Date: 11/4/2011 Release Date:11/18/2011 Release Date: 11/23/2011

Upcoming Films

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Release Date: 12/9/2011 Release Date:12/16/2011 Release Date: 12/23/2011

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Why Should Advertisers Care About 3-D?

What 3-D Brings to Advertising?

• A full 360 degree real world view of the product. Impacts “sexiness” of products.

• At least for the next year, a “WOW!” factor with both depth of field and pop out of screen effect.

• Consumer in-home entertainment will be 3-D enabled, so In-Cinema provides training and testing for Best Practices

• Event/Sponsorship Opportunities with Live 3-D Events

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Perceived benefits of 3D

• Immersion: Viewers feel they are in the environment.• Depth: Depth of field substantively better• Detail: Vivid detail contributed to immersion.• Color: Aesthetic beauty apparent. Colors appeared better • Engagement: Glasses confined the consumer to one activity and

overall immersion kept them engaged.

70Source: CTAM 2010 3D Study

Areas where 3-D will heat up first

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Source: PWC 2010

Explosion of 3-D Content and Networks• ESPN launched with World Cup

in 2010• 13 College Football Games• 30 College Basketball Games• 14 NBA Games (incl. Playoffs)• Winter X Games

• ESPN 3-D Goes Live 24/7 on February 14, 2011

• Discovery/Sony/IMAX (3NET) Launched on February 13, 2011

• DirecTV Launch for Ad Hoc 3-D events• AT&T/Verizon open to solely sponsored

3-D Events• Giants/Patriots Game in September 2010

• Wealth TV launches 3D Channel via Roku OTT Box

3NET