juan ernesto rodriguezaugust 2008 - rev 7

@home@home

2May 13, 2008 2

3May 13, 2008 3

small bizself employed - space reflects my business not my home

shopgarage factory

remote officetele-commuters & no cube @ corp

productivity

security

scalable

accessible

spacedefinition

source: 2008 Kensington Home Research with Matter

open living all becomes one - blend of social & private space

studio/work space private space for adults - shared computing

off-the kitchen workspace for family - shared environment

relax, lounge, peace

individual light/space

reduce effort “efficiency”

uncluttered “hide the stuff”

bedroomprivate space for teens - my stuff

isis is-notis-not

4May 13, 2008

globaltrends

4

source: CEA 2008 International CE Ownership; WSJ 7/29/2008 on Smartphones

ce device explosionqty 25 ’05 vs. 9.7 ’90, my-private-gadget

where do we shopretail 70%, online 40%

content consumptionvideo blog, youtube, tubesock, pc my new stereo

it’s all digitalinstant access, access anywhere, ubiquitous quality

tech attitude shiftproductive vs. fun & pampered

connected laptops rule earth1st 44% lap & 20% desk, 75% on WWW, Top5=70%

snap-shotsnap-shot

structured wiringcommunication, security, entertainment, env controls

ultra-portabilitynetbooks: sub 13 in, 3 lbs, 5hrs battery

crave mobility - smartphone270M out of 1.35B cell ’09, 53% 1st buyers, dolby

ww urban migration50% WWP by 2012, mix urban segments, carbon footprint

what tv? consumption shiftsvideo blogging, internet radio, HD internet-tv

entertain/connect >> commercewww 7 out-of 10 apps, upgrade to larger flagship flat-panels

peek aheadpeek ahead

5May 13, 2008

tippingpoint

5

desktop pc x1

vcr

desktop pc x1

cell phone x1

game console

vcr / dvd

desktop pc x2

cell phone x2

mp3 x1

laptop x1

game console

vcr / dvd

dvr/tivo

device proliferate & functionality converge 50% own 11 discrete devices

device usage mobile >> portable >> stationary • 90% mobile phone, 80% laptops, 70% desktops

all digital content via amazon, bitTorrent, itunes, netflix• iTunes circa Jan 2001 & since sold 5 Billion Songs + 50,000 Movies/Day

device proliferate & functionality converge 50% own 11 discrete devices

device usage mobile >> portable >> stationary • 90% mobile phone, 80% laptops, 70% desktops

all digital content via amazon, bitTorrent, itunes, netflix• iTunes circa Jan 2001 & since sold 5 Billion Songs + 50,000 Movies/Day

80s 90s ‘00 - ‘05 ‘05 - ‘109.7/hh 25/hh

desktop pc x2

cell phone x3

mp3 x4

laptop x3

netbooks

smartphone x2

all-in-one x1

game console x2

dvd

dvr/tivo

vudu/aTV/roku

iptv

digital cameras

nas/personal hdd

53% share

47% share

10% dock

32% own

sub $250

70% photo

source: CEA 2008 International CE Ownership; Kensington 2008 Consumer Research

May 13, 2008

source: CEA 2008 International CE Ownership; Wired Magazine “Android” July 2008; WW Market Share of Laptops DisplaySearch

RIM goesmainstreamwith Pearl

Apple 3G,apps $1M/daycloud mobileMe

Google Androidapps, 5.1 Dolby,pro, casual

smartphone dominancesmartphone dominance

May 13, 2008

contentconsumptionk

device manufacturers

home networksmedia + data

“video qualityis king” - VentureBeat

3 windows“consume thru

multiple screes” - IBM

60%

40%

source: Connections 2008 Conference by Park Associates & CEA ; WSJ 7/22/2008 on “Comcast Unit Cuts Web Deals”

complementary contentlinear tv

video on demandinternet

interactive

5-10% Internet90% TV

8May 13, 2008

8

permane

nt

sanctuary

tem

pora

rysocial 30%68%

49% 85%source: Kensington 2008 Consumer Research

9May 13, 2008

9

permane

nt

sanctuary

tem

pora

rysocial

source: Kensington 2008 Consumer Research

mobile/stationary

laptop 40/60smartphone 90/10

usage:60% monolithic 40% cloud

ownership:70-80% iPod30-40% SmartPhone

May 13, 2008

14%32M

25%58M

231M adults

114M HH

86M WWW 69M BB

72% DeskTop 47% LapTop

17%39M

43%99M

13.2M

14.6M

20% 1st

44% 1st

DeskTop LapTop

devices are becoming ubiquitous & omnipresent, YOY +6%

accessories enhance the device experience, YOY 8-12%

personal story behind each accessory, 335M units 2008

devices are becoming ubiquitous & omnipresent, YOY +6%

accessories enhance the device experience, YOY 8-12%

personal story behind each accessory, 335M units 2008

ushouseholdtam

source: CEA 2008 report on US HouseHolds; SMPhone and MP3s units estimated as function of HH% (+10% YOY); Netbooks Gartner July 2008

smartphoneHH 18% to 23%

MP3s HH 43% to 46%

netbooksnew

27.5M48.5M

5-8M

today

growth2008 - 2009

11May 13, 2008 11

consumerbimodality

remain passive in living-room via

set-top box

remain passive in living-room via

set-top box

search anytime anywhere thru multiple “windows”

search anytime anywhere thru multiple “windows”

Video Consumption Hrs/Month US May 2008 Nielsen Report

TV: 127:15TimeShift: 5:50

Internet: 2:19Mobile: 3:15

Video Consumption Hrs/Month US May 2008 Nielsen Report

TV: 127:15TimeShift: 5:50

Internet: 2:19Mobile: 3:15

source: IBM “The end of TV as we know it ; Nielsen “Three Screen Report” - May 2008

12May 13, 2008

12

extremeattributes

laptopall-in-onesmartphonesipod

cloudmonolith

<$200>$400

gendersplit

mobilephonegps

multipurposeright-toolright-spotfuzzyboundary

one-of-eachtakelittleeverywherehome

express-personalityspecial-feature

extreme attributes = a tool to understand the breadth of customer needs

May 13, 2008 13

“I love technology

but don’t want to

see it”

sergio 33engaged

sw consultantworks @ flat

travels 2 clients

“invisible wall

between my work and life”

“i want

the theater

experience

14May 13, 2008

14

@homeopportunity

✓

smart@home

NEW DEVICE

side-tablealarm and radio

dock to share video

paint with fingers and print for parents

paint with fingers and print for parents

speaker phone and charge

speaker phone and charge

15May 13, 2008

15

@homeopportunity

✓

3windows@homelocal casting - shared and immersive in the living room

31%

19%

19%

share video download

immerse in movie

16May 13, 2008

16

@homeopportunity

✓

4spaces@home

private-anywhere fun create-with-gestures environment-controls out-of-sight ensure-healthy-&-neat conserve-energy home-friendly materials

going beyond “fitting in”

May 13, 2008

aggregators

1 smart device debuts @home

sumofallpartssumofallparts

3 windows for content consumption

4 unique usage models @home

+

“simplicity is the differentiator”

May 13, 2008

thank you...

19May 13, 2008 19

predictioncaution

20May 13, 2008 20

smshomexperience

eliminate

createreduce

raise

“head-to-head competitive features”

“over design”

“eliminate compromise”

“generate immersive experience”

simple: remove frustrations, confusion, complexity, time-waste,

clutter, cost

simple: remove frustrations, confusion, complexity, time-waste,

clutter, cost

smart: new experience, link to my everyday

space, quick-to-learn, share-it with friends

smart: new experience, link to my everyday

space, quick-to-learn, share-it with friends

21May 13, 2008 21

targetextremes

vs.

PROPRO

NOVICENOVICE

22May 13, 2008 22

channelsavvy

May 13, 2008

aggregatorsusbroadband-users

1-2 millionentertainment networks

30-35 milliondata networks

souce: park associates

source: Connections 2008 Conference by Park Associates & CEA

May 13, 2008

end2endcycle

content

premiumuser generated

linear tv

vodsearch t/p shift

interactim

chat

tv 2.0*power shift to consumer

1 to n

n to 1

1* to n

➊

➋

➌

enhance content consumption experiece

t-commerce

interact

review/share

communicate

consumevideo ≠ music

role ofsocial networks

role ofnavigation device

back-end infrastructure

services

tag contentlink to ads

services to users

aggregators“virtual server”

source: Connections 2008 Conference by Park Associates & CEA

May 13, 2008

14%32M

25%58M

content owners

playersconverge

aggregators

device manufacturers

the challenge “how 2 monetize”

players come together for 1st time

partnerships are formed

architecture & standards

the quest - “simple solutions”the

May 13, 2008

May 13, 2008

May 13, 2008

May 13, 2008

aggregators

400+ channels

“can’t find what I want

to watch”

1m+channels“where do istart?”

30million users, 2hours/night, 10minutes/video

business-modelchange

May 13, 2008

aggregators

key to success = monetize content

“think partnerships if you want to be in the game” - george schweitzer, president of marketing group

beyondtechnology

monetize = link content 2 ads

link = metadata tagged content

targeted = viewer consumes

May 13, 2008

32May 13, 2008

32

slimdevices, mini dinovo harmony, gaming controllers

cush-top, pocket-top, wash-mouse

webcam, KB sets, wrls mice

surge protector, powerdock

San

ctuaryPermanent

Temporary

Soc

ial

coolpad, mouse

wireless speakers, wash-mouse