WCL323

Why should we care? One of the fastest growing & largest categories Opportunity for new business models (services, content, subscriptions) Why should we care? One of the fastest growing & largest categories Opportunity for new business models (services, content, subscriptions) What value does it offer consumers? Seamless integration of key digital entertainment scenarios in one box (TV, Internet content, personal media playback) What value does it offer consumers? Seamless integration of key digital entertainment scenarios in one box (TV, Internet content, personal media playback) What is it? Simply put, it is a network enabled consumer electronics device, such as a connected TV, set top box, or DMR. What is it? Simply put, it is a network enabled consumer electronics device, such as a connected TV, set top box, or DMR. Source: Strategy Analytics, Digital Media Devices Global Market Report, 8/09 FY10FY11FY12FY13FY14CAGR Flat Panel TV % Set-Top Box (1) % Digital Media Adaptor % TOTAL % YoY Growth97%84%55%31%21%

The New World Manageability and extensibility Standards driven HW and SW ecosystem Faster TTM, lower TCO, higher ROI Ubiquitous network and Internet connectivity The Old World Firmware only Limited user interface No connectivity and never updated

A Wide Spectrum Of Options for Manufacturers High End-to-end turnkey entertainment solution Optimized for 3 screen device scenarios Low Microsoft PlayReady® Smooth Streaming Core enabling technologies Maximum flexibility and applicability Reach Rich An operating system platform for entertainment solutions Customizable in SW, HW, and business models

Consumer Robotics Portable media Industrial Automation Telematics Thin Client Industrial Automation Medical Entertainment Thin Client Office Automation ATM/Kiosk Flexibility, Source Level Control, Multiple CPU Architectures Fixed Features, Express Development, Windows Desktop Compatibility Point of Service Dedicated Servers Kiosks Entertainment Handheld Automotive

A high performance and highly reliable platform designed to deliver the power of Windows 7 to specialized devices that seamlessly connect to a world of Windows.

PC Brains Microsoft Leadership in PCs Ability to Play any Internet Content Customer familiarity with Media Center (MC) UI OTT MC Content – Netflix, MSN, Canal+, Sky PC Brains Microsoft Leadership in PCs Ability to Play any Internet Content Customer familiarity with Media Center (MC) UI OTT MC Content – Netflix, MSN, Canal+, Sky Home Theater Comfort Large Screen Size – HD Hi Fi Sound Living Room - Comfort, Social Activity Home Theater Comfort Large Screen Size – HD Hi Fi Sound Living Room - Comfort, Social Activity CMD/Connected TV Product CMD/Connected TV Product

Internet content Personal content Broadcast content

Customizable, expandable, and flexible UX platform Full digital media feature set Optimized for a range of non-PC hardware (TVs, STBs, etc.) Low Power Consumption Robust and Secure platform Fast Boot Time Responsive 10’ user interface

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Internet 99.9% Future Proof Internet TV Web services and app platform PC / Home Server “Play To” Home Group Broadcast TV Support for all major global TV standards: cable, satellite, terrestrial, and IP Conditional access Rich, local electronic program guide (EPG) data Full DVR functionality High-definition viewing DLNA Play content to and from Win7 PCs or other CMD devices CMD

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