Cdigix: Transforming Digital Media Services for Educational Needs

1. EDUCAUSE Policy Conference May 16, 2007 .

2. Academic Learning Community and RelationshipDevelopment Experiential Learning The Cdigix Vision To be the leading global provider of digital media services to the educational market • by enabling universities to solve their entertainment and educational media needs; and • by empowering students, alumni and faculty to consume, connect, and communicate via digital content. Strategic Intent - Where faculty, students and alumni love to experience any entertainment and educational media on demand.

3. Company rededicates its focus to C-Labs product Dec 2006 -Feb 2007 Sept 2005 -Dec 2006 • Sign 43 additional commercial contracts • Raise first institutional investment capital May 2004 -Aug 2005 • Sign 30 commercial university contracts • Deploy at 21 schools in ’04-’05 school year including Purdue, Michigan, Tufts and Tulane May 2003 -April 2004 • Launch Ctrax at Yale University • Raise Additional Investment $$ May 2002 -April 2003 • Secure additional content deals w/ Warner Bros. & others • Pilot at Duke & Wake Forest • Develop C-Labs & Cvillage May 2001 -April 2002 • Secure content deals w/ Disney & others • Beta launch at Duke May 2000 -Apr 2001 • Raise initial seed capital • Launch initial venture 6/00 Business Timeline

4. Phase 1: Video • The “Extra Slice” Syndrome • Students will not pay $0.01 but, • Students will devour content if free • However, studios not yet willing to offer free or low cost to schools

5. Phase 2: Legal Music Services • Labels have been generous in offering lower content cost for students • Many schools have been willing to subsidize legal music services, but • Students don’t see them as competitive with peer to peer • DRM restrictions and limits on selection, and • The Model is changing to a “direct to consumer” advertising-only business • Music services work best if paired with filtering system • Some Campuses at 70+% penetration

6. Phase 3: Video and Audio for Curriculum • Digitizing audio and video libraries for academic on-demand use by students is core for schools • Technology that delivers legal consumer services is same backbone for a/v curriculum delivery • Schools need a shared solution as it’s too expensive to do it yourself • Great possibilities for content sharing across schools to enhance learning and as source of new revenue

7. Take control of your media • Stored in a central location • Content is digitized & archived • Presented in a unified format - regardless of source

8. A Solution for Students: Anytime, anywhere access Never checked out Pause, restart, watch on the go A Solution for Staff: Minimal impact on IT Purchase 1 copy of media Resource saving Video Procurement A Solution for Professors: Control Viewing Periods Limit Access Distribute Lectures The Whole Campus Wins Students Librarians & Staff Professors

9. Sample Partner Schools

10. What Others are Saying… “We’ve had wonderful use of C-Labs in bringing digitized movie material into our educational environment but we’re just scratching the surface nevertheless.”Charles Phelps, Provost, The University of Rochester

11. Summary • Music market has moved to “direct to consumer” with advertising model • Video (television) will likely follow but has not yet priced itself accordingly • University demand for entertainment services has cooled within the last 12 months • Schools need educational media services such as C-Labs to enhance the educational experience • Cdigix will be back with consumer services if universities see a future need and the business model makes sense