1. Prepared for: CMAG Lee Shupp Kathleen Chattin Leigh Marriner Joanne Mendel Cheskin Guiding clients to innovative solutions Date: March 2008 Cheskin Added Value 255 Shoreline Dr., Suite 350 Redwood Shores, CA 94065 650-802-2100

2. 2 © Cheskin 2007 Cheskin is a consulting firm that guides innovation through its deep understanding of people, culture, and change. Who is Cheskin? Additional information and several relevant case studies can be found at www.cheskin.com

3. 3 © 2008 Cheskin Added Value Cheskin Overview Integrating disciplines for innovative solutions Cheskin is an innovation consulting firm that offers a unique and powerful combination of disciplines and offerings. As an integrated approach, these synergies deliver results far greater than the sum of their parts. Cheskin methods are used to drive customer insights to where they’ll have greatest impact on business outcomes. Design methods Business analytics Customer insights Innovation consulting

4. 4 © 2008 Cheskin Added Value Three Practice Areas with Deep Expertise Leverage Three Perspectives on the Problem Space Business analytics – our consultants analyze complex business landscapes, programs, and opportunities to deliver revenue-generating strategies that help our clients tackle their business issues. Customer insights – our researchers uncover the deepest and most meaningful needs, desires and motivations of customers to guide clients in developing compelling products, services and brand experiences that deeply engage the customer. Design methods – our designers turn data into insights and insights into concepts and strategies. They translate solutions in ways that can be understood, owned and applied by a range of client audiences. Design methods Customer insights Business analytics

5. 5 © 2008 Cheskin Added Value At the Convergence of Each Discipline are New Synergies Design methods Business analytics Customer insights Design/research customer insights design methods & thinking Cheskin leverages synergies at the intersection of our practices in an integrated, problem-solving approach. Decision tools business analysis & insights visual synthesis & modeling Investigation: market opportunity assessments customer needs, desires & motivations

6. 6 © 2008 Cheskin Added Value Approach Cheskin methods are used to drive customer insights to where they’ll have greatest impact on business outcomes. Business outcomes Problem solving Communication Insight generation

7. 7 © 2008 Cheskin Added Value Approach Systems thinking We employ various modes of thinking in our approach. Business outcomes Problem solving Communication Insight generation Pattern & meaning recognition Targeted communication of insights Translating knowledge Divergent / convergent thinking

8. 8 © 2008 Cheskin Added Value Approach Systems thinking Our methods and tools are used to facilitate our thinking. Business outcomes Communication Design language assessments Analytic frameworks Insight generation Segmentation collateral Presentations Visual synthesis & modeling Design principles Ideation & prototyping Immersion workshops Digital stories Customer insight repositories Pattern & meaning recognition Targeted communication of insights Product/ service concepts & strategies Translating knowledge Divergent / convergent thinking Problem solving

9. © 2008 Cheskin Added Value Case study Should we become a content provider? 24

10. 10 © 2008 Cheskin Added Value The Challenge A high tech company came to us to help refine their approach to enter the TV & movie content business They assumed it was a large market And that they could enter it fairly easily Our work helped them understand the real size of this opportunity and the barriers to entry

11. 11 © 2008 Cheskin Added Value Insights from Business Analysis What’s happening at the broad business level? Delivery channels & advertisers are battling for viewership Service providers (cable, satellite & telcos) are battling to own connection to the home Equipment makers & Service Providers are battling to control the home Business analytics

12. 12 © 2008 Cheskin Added Value Customer Insights What’s happening with consumers? Companies are battling to establish themselves as the hub, expected to be the focus of consumer attention Two audience segments present opportunities for client. They discover, evaluate, avoid, select/acquire, watch and store, and return, share, content for different reasons. Customer insights

13. 13 © 2008 Cheskin Added Value “Stories” were created by synthesizing insights from a market opportunity assessment with consumer insights Partnerships, Competitors, Triple & Quad plays among Cable, Satellite & Telcos Video: Cable vs. Teleos break into the TV market MOA p 25 MOA p 24-26 What’s occurring at the broad business level? Service providers (cable, satellite & telcos) are battling to own connection to the home Design methods

14. 14 © 2008 Cheskin Added Value Stories are clustered into three interrelated views; the market, home & consumer levels Content types available thru broadband MOA p 21-23 What’s occurring with consumers? Delivery channels & advertisers are battling for viewership What’s occurring in homes? Service providers (cable, satellite & telcos) are battling to own connection to the home Cable vs. Satellite: offering advanced services MOA p 30 Design methods

15. 15 © 2008 Cheskin Added Value TV Movies landscape From content creation through delivery to the consumer Key Size correlates to amount of aggregated annual sales dollars Size correlates to amount annual sales dollars * Advertising dollars spent Design methods Business analytics Customer insights

16. 16 © 2008 Cheskin Added Value What’s happening at the broad business level? Delivery channels & advertisers are battling for viewership Key Size correlates to amount of aggregated annual sales dollars Size correlates to amount annual sales dollars * Advertising dollars spent

17. 17 © 2008 Cheskin Added Value Key Size correlates to amount of aggregated annual sales dollars Size correlates to amount annual sales dollars * Advertising dollars spent What’s happening at the broad business level? Service providers (cable, satellite & telcos) are battling to own the connection to the home

18. 18 © 2008 Cheskin Added Value What’s happening at the broad business level? Equipment makers & service providers are battling to control media within the home Key Size correlates to amount of aggregated annual sales dollars Size correlates to amount annual sales dollars * Advertising dollars spent

19. 19 © 2008 Cheskin Added Value Large scale market and home opportunities vary depending on the client’s criteria IPTV Home Video DVD Players Mobile phone services TV Tuners DVR/STB SizeGrowth Good Fit Disruptive- ness Innovation Potential Competition Cable Satellite Online Content Services Digital TVs Media Center PCs PMP 2003 market size ratings: Very high$ Billions High$ Billions Medium$ Billions Low$ Millions Very low< $ Millions Market growth projection ratings Very high%+ CAGR High% CAGR Medium% CAGR Low% CAGR Very lowDeclining market Disruptiveness High Nascent market with significant potential Growing market with limited potential Mature market with little potential Medium Low Competition ratings: High Market dominated by stronger players ($ revenue) Market dominated by mid-tier players ($ revenue) Market dominated by smaller/weaker players ($<revenue) Medium Low Strategic fit ratings: High Clear role for the client that fits with our core strategy/competencies Possible role for the client that fits with our core strategy/competencies No clear role for the client to play that fits with our core strategy/ competencies Medium Low Innovation Potential High Market likely to be driven by technology yet to be developed Market dependent on evolving technology with moderate innovation potential Market dependent on already- existing technology with limited innovation potential Medium Low Control of the Home battle Home connection battle Viewer

20. 20 © 2008 Cheskin Added Value Opportunity generation framework used in an executive work session

21. 21 © 2008 Cheskin Added Value Value to Client – Saved $MM! These integrated insights directly guided client’s decision to forego this space, saving hundreds of millions in development costs Saved $$ that would have been spent to enter this market Re-focused team on better opportunities Re-directed engineering resources to more profitable areas

22. © 2008 Cheskin Added Value Contacts 24

23. 23 © 2008 Cheskin Added Value Contacts Lee Shupp EVP Technology Practice Office: 650.596.6218 Cell: 415.336.3558 lshupp@cheskin.com Kathleen Chattin Director, Account Management Office: 650.802.2100 Cell: 408.750.6658 kchattin@cheskin.com

24. 24 © 2008 Cheskin Added Value Contacts Leigh Marriner Sr. Director, Business Consulting Office: 650.802.2100 Cell: 415.847.8433 lmarriner@cheskin.com Joanne Mendel Design Methods Studio Leader Office Phone: 650.802.2100 Cell: 415.637.4492 Email: jmendel@cheskin.com Cheskin website www.Cheskin.com

25. © 2008 Cheskin Added Value Thank You 24

26. © 2008 Cheskin Added Value Appendix 24