Deutsche Bank Markets Research Industry Date 17 December 2014 Mobile & Consumer North America Internet United States TMT Internet Ross Sandler Research Analyst (+1) 415 262-2028
[email protected] Lloyd Walmsley Research Analyst (+1) 212 250-7063
[email protected] Deepak Mathivanan Research Associate (+1) 415 6173246
[email protected] Kevin LaBuz Research Associate (+1) 212 250-2463
[email protected] Shawn Rassouli Ghazikalaye Research Associate (+1) 415 617-3244
[email protected] F.I.T.T. for investors Entering The Connected Life Era Investor Guidebook For Navigating The Ecosystem Wars The Connected Life era we are heading into is marked by two major trends: 1) huge ecosystems battling to enforce their standards and ensure a consistent user experience across any connected screen, and 2) traffic distribution and commercial activity is fragmenting and into different areas, creating opportunities for new entrants and challenges for incumbents. Content that once resided on PC websites or Smartphone apps is likely to be decentralized, broken down into smaller formats, and pushed to new “smart” devices. The TAM is enormous, 3B users generating $1500 in ARPU from software, services and advertising, or ~$2 trillion, just the biggest game in town. ________________________________________________________________________________________________________________ Deutsche Bank Securities Inc. Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED IN APPENDIX 1.