1. CES Consumer Electronics Show The Next Big Thing

2. Mobile Video Single task – can’t do something else while doing this Where will users get content? Install base potential? Cell phone: 180 million in U.S. Towers have 3G capability Digital Rights Management – “nightmare for consumers” Citizen media – blogs, podcasts don’t face DRM hurdles

3. Mobile Video Who will drive this? Movies – 12% TV – 57% Gaming – 20% Citizen media – 11%

4. Mobile Video Biggest hurdle: Screen size – 18% Content availability – 40% High speed communication limits – 21% DRM – 21%

5. Mobile Video What will win Phone – 44% Media specific device – 16% Converged device (Treo, PSP- PlayStation Portable) – 40%

6. Mobile Video TV – users don’t want to miss anything Content from any era at any time User doesn’t want to pay for content twice – DRM for video is much more restrictive than other media at the moment. There will not be only one model. People want downloaded, stored media AND streaming media on demand.

7. Blue Ray vs HD-DVD DVD in current format doesn’t do HDTV Blue Ray 25-50 GB (more capability for additional content?) HD-DVD – 15-30 GB (although new development of triple layer HD-DVD allows 15-45 GB Blue Ray getting majority of support Format war keeps consumer wallets shut Blueray requires a more expensive re-tool for equipment producers

8. Blue Ray vs HD-DVD What do you want to do: Watch – 61% Record – 25% Burn data – 11% Dub old DVDs/Videos – 3%

9. Blue Ray vs HD-DVD What is in the way? Not an HD household yet – 28% Quality not driver – 18% Format war – 29% Cost – 25%

10. Blue Ray vs HD-DVD Which will win Blue Ray – 55% HD-DVD – 17% Stalemate – 28%

11. Blue Ray vs HD-DVD VHS, DVD, HD-DVD - All will be backward compatible High fidelity is a motivation People will watch anything if hi-def. Modest increase for HD media over current cost

12. Home Entertainment Network/Hub March to the living room Media Center PC – Microsoft – serves content to other units Network savvy separates – harder Network headaches are a big roadblock Fidelity issues – hubs must scale down content to be transmittable.

13. Home Entertainment Network/Hub What will you use this for? Music – 33% Photos – 5% Video – 62%

14. Home Entertainment Network/Hub What will hold you back? DRM – 5% Different setup – 67% No HDTV – 15%

15. Home Entertainment Network/Hub What model will you use? Network DVR/Tivo – 49% Media Center PC – 42% Networked DVD – 9%

16. Home Entertainment Network/Hub Video is the real issue. The ability to distribute audio via networking has been solved in many homes already Home networking is moving ahead HDTV and home media hub technologies are evolving in parallel – not together but side by side DRM will get there - translators being developed Tangibility of media – virtual access a roadblock – important to users not but not important to future users (e.g. magazine databases)