A global view of the battle for the foyer Lode Nachtergaele 21/06/2006 Mobile TV Content Segmentation Source: Informa telcoms & media 1 iTunes 'outsells' US musicstores , Nr. 7 in Top10 Source: De Morgen, za 10/12/05 Apple: Mac Mini PVR ???? FrontRow 2 Nintendo Wii (Revolution) Nintendo Double Screen Sony 3 Xbox 360 with Media Extender 4 Mobile TV Content Segmentation Source: Informa telcoms & media What media on mobiles ? Percentage of cellphone Activity Percentage subscribers who said Played Games 24,2 they used their phones Wheather 6,9 at least once a month Sports Information 5,9 for the following: News 5,3 Downloaded/streamed music 1,7 Downloaded video clip 1,2 Watched live video 1,1 Note: Survey of 35,000 subscribers; averages are three month averages ended in March 2006 Source: M:Metrics 5 But a Big Deal needs a Big TheEvent: Fifa World Cup is the Event: 3 is one of the two ways to watch the 64 matches in Italy Vendor Devices – at June 2006 T-DMB/ DVB-H S-DMB ISDB-T MediaFLO DAB-IP 6 models 12 models 3 models 2 models (2 concept) 8 models (1 dual-mode (1 dual-mode T-DMB ) S-DMB ) Source: Informa telcoms & media 6 Worldwide Broadcast TV Users, by Network Millions 140 120 DVB-H DAB-IP 100 DMB Other 80 T-DMB S-DMB 60 T-ISDB MediaFLO 40 Hybrid Satellite 20 0 2005 2006 2007 2008 2009 2010 2011 z Informa Telecoms & Media predicts that there will be 210 million broadcast mobile TV users worldwide by 2011, up from a mere 2.56 million expected in 2006 z By 2011, there will be 24 million terrestrial DMB subscribers, compared with 12.5 million satellite DMB users worldwide. z Despite its slow start, DVB-H will become the dominant format in 2008, reaching significant levels in European and US markets, with users worldwide reaching 120 million by 2011, equating to 57% of all broadcast users. z The Japanese terrestrial based system, ISDB-T, will also grow steadily over the period, showing its first subscribers in 2006. By 2010, ISDB-T is expected to have 15 million users, with the assumption that they will all be in Japan. z MediaFLO is only forecast to gain traction in the market from 2007, but is expected to form the second largest single user base worldwide with 25 million by 2011. Source: Informa Telecoms & Media Speculative value shifts 2005-2012 Content Packaging Service CE & Programming distribution Content and Retail Production wireless Traditional Online Short Mid- Term Term devices 2012 • negotiating • ad skipping • niche • interactive • price and • continued • service and power • Telecom content advertising marketshare commodization installation fees • more direct-to- • always services competition • multichannel channels advertiser “on” • video on prices and Why? content demand bundles Best value position Moderate Value position Non-differentiated profitability Source: IBM Institute for Business Value 7.