1. 1 Ralph Van Lysebeth Sales & Marketing Director Packard Bell Belgium, Luxembourg & Switzerland

2. 2 Digital Home Entertainment Why should the channel adapt ?

3. 3 The big shift... Adapted from K. Werbach The Great Transition

4. 4 Trends & contexts 1.The on-demand lifestyle is here 2.Everybody is short in time -> you must make choices 3.No more customer sacrifices 4.Media becomes unbound 5.End of browsing ? -> too much content 6.Consumers start generating own content Adapted from G. Leonhard

5. 5 Music as an example

6. 6 Internet is stealing time from other media...

7. 7 Internet + PC is beating radio

8. 8 272 Digital Music Stores active in 2004

9. 9 This is getting real

10. 10 The future... In less than 5 years, the entire population in most “rich” countries will ALWAYS be connected, anywhere and with a decent bandwith All content & entertainment will be available on this “ALWAYS ON” Network (legal or not) The content will live on the network – not in your box, therefore the power is in the network.

11. 11 Another trend: from buying to renting Consequences: –Broadband explodes even faster –Prices drop dramatically CD in store: 16 € CD online, fysical delivery: 14 € Album online, downloaded: 9.99 € Song online, song of choice: 1 € Song streaming on demand: 0.01 € Less customer sacrifices in terms of time & choice Renting Buying

12. 12 For the channel: what to sell ? Hardware: – Media (Sharing) Devices Mobile Home Content Service Provider Contracts Own content ?

13. 13 Digital Home Entertainment Recommendations for the channel

14. 14 Recommandations for the channel Follow the trends Diversify or enlarge the product offering –Content providers, products & services Focus on solutions –Show benefits to customers –Create needs –“Usage” is key Adapt the showroom Adapt communication

15. 15 Packard Bell is evolving…2004-2005 - 1 year 1990-2000 - 10 years The brand of the Home Pc 2001-2003 - 4 years Home Entertainment Position the brand into the consumer electronic world

16. 16 TV LCD & monitors LCD TV Audio / Video Devices DVD Digital Media Devices Set Top Box DVD/DivX Multimedia adapters Home Networking WiFi CPL Mobile Audio / Video MP3 Players PC Home Server PC Centric TV programs recording Digital Photo, Music and video acquisition VOD

17. 17 www.musicstation.be

18. 18 Thank you