Since 1895. Member SIPC and NYSE.

Piper Jaffray – HPA Retreat 2008

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Mike Olson

• Research analyst covering creative software and digital media technology at Piper Jaffray for 7 years.

Piper Jaffray

• Investment bank specializing in growth industries (headquartered in Minneapolis)

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Who Are We?

What Do We Do And Why?

•Identify growth markets

•Find companies with a leadership position or competitive edge

•Share our findings with VCs and Institutional Investors

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What Do We Do And Why cont….?Why Do We Do This?

•Try to provide Wall Street with unique ideas based on real research

•Focus is on connecting with experts on specific products and technologies

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Content Creation & DistributionPrimary focus area for our research is content creation & distribution:

•Covering Avid, Adobe, Apple, Dolby, etc., looking for changes in mkt share, product developments etc.

•Have spoken with hundreds of post & broadcast professionals at IBC and NAB over last few years

Goal: Information Exchange With HPA Over The Coming Years

• Work with HPA to hear opinions of members and share results

•First step was laying a foundation at HPA 2007…now we actually have data to share

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2008 HPA / Piper Jaffray Study:

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• Overview of Last Year’s HPA Survey Results

• Brief Questionnaire

• 5 questions --- **iPod Giveaway**

• Once data is compiled we will share the findings with you and hopefully provide an update next yr

Last Year’s Results – 2007 HPA

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161 Participants

• % of the way through updating post production technology for HD?

57%

• % of work being done in HD today?

50%

Last Year’s Results – 2007 HPA

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• Editing Tools Used Most In The Last 12 Months:

Avid 48%

Final Cut 32%

Autodesk/Discreet 9%

Adobe Premiere5%

Other 6%

Last Year’s Results – 2007 HPA

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• Intentions to switch from current editing tools to Final Cut in 12 months:

-Already On Final Cut 32%

-Not moving to Final Cut 63%

-Will move from Avid to FC 4%

-Will move from Adobe to FC1%

Last Year’s Results – 2007 HPA

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• Expected Spending on post production editing equipment in 2007 vs. 2006:

-Expected to spend more: 54%

-Expected to spend less: 11%

-Expected no chg in ’07: 35%

Avg expected chg in ’07 vs. ’06: +10%

2008 HPA / Piper Jaffray Study

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• 5 Questions – Blue Paper

Will collect at the end and come back shortly to draw winner of iPod nano from surveys

Not quoting anyone, just compiling the data (this is totally anonymous)

Write name at top for iPod giveaway, name will not be used by us for anything

2008 HPA / Piper Jaffray StudyQuestion # 1:

What % of the way through the transition (upgrading systems) to HD post production editing equipment is your business? (If this doesn’t directly relate to you, what % of the way through the transition to HD editing equipment do you believe the industry is?):

(circle one of the options or fill in)

2008 HPA / Piper Jaffray StudyQuestion # 2:

What % of post work at your business is done in HD today?

(If this doesn’t directly relate to you, what % of post production do you believe is done in HD today in the industry?):

(circle one of the options or fill in)

2008 HPA / Piper Jaffray StudyQuestion # 3:

What post production editing tools have you used most in the last 12 months?

(If doesn’t directly relate to you, what post production editing tools have you seen your peers using most in the industry?)

(circle one of the options or fill in)

2008 HPA / Piper Jaffray StudyQuestion # 4:

If you are not currently using Apple for your primary editing system, do you plan to switch to Apple in the next 12 months?

(circle one of the options or fill in)

2008 HPA / Piper Jaffray StudyQuestion # 5:

Expect your business (or if not directly tied to your business – the industry) will spend more, less or the same on post production editing tools in CY08 vs. CY07?

(circle one of the options or fill in)

(If up or down, estimate % chg in ’08)

Thanks For Your Time Today

• Back this shortly with iPod winner

• Once data from today’s study is compiled, will distribute report to HPA with the details & conclusions

• Hope to be back next year to review findings of our ‘08 study in detail and complete another study that we can all compare to this year’s findings

• Please pass to the aisles for collection