Strategy Analytics’ Digital Consumer Practice

1. Strategy Analytics’Digital Consumer Practice Delivering a 360° Research Perspective of the Digital Ecosystem

2. Delivering Custom Insights Advice Services Work- shops Multi-client Syndicated Research Proprietary Consulting Projects Reports User Experience Labs Supporting Client Business Planning through Custom Insights SpecTRAX RF Components Wireless Devices Handset Components GaAs Defense Systems Connected Home Devices Smartphones Baseband Tracker Count Share Tracker Multi-play Market Tablets/Touch Screens Tablets &Touch Screens Wireless Operator Strategies Digital Media Insights For Success Digital Home Observatory Mobile Broadband Opportunities Gaming Strategies Wireless Enterprise Automotive Consumer Insights Wireless Media Automotive Electronics Mobile Apps Tracker Emerging Wireless Markets Automotive Multimedia & Communications Wireless Media Labs Revenue and Tariff Strategies Wireless Device Labs Global Forces: Competitive Intelligence

3. Delivering a 360° Research Perspective A Holistic View of the Emerging Digital Content Ecosystem Media & Entertainment Consumer Behavior • How is the television industry changing? • What industry challenges is this new TV paradigm creating? • What is driving early adopters to seek out Connect TV experiences? • How are they changing their behavior around what TV they watch? Consumer Behavior Media & Entertain- ment DIGITAL CONTENT ECOSYSTEM Consumer Electronics Service Providers Consumer Electronics Service Providers • How much traffic will OTT video bring onto the networks? • Is pay TV doomed or will 3D TV save the day? • How many connected TV devices will be sold in the coming years? • What are the CE vendors strategies for OTT video?

4. Comprehensive Research on the Content Technology Value Chain Digital Media Strategies (DMS) • “How will connected consumers adopt and use emerging video services and applications?” • “Which digital video business models will be mostsuccessful?” Multiplay Market Dynamics (MMD) Tablet and Touchscreen Strategies Connected Home Devices (CHD) • “How will digital TV and broadband service providers compete effectively to win new and retain existing customers?” • “What is global demand for tablets and touchscreen devices? • “Which online devices will form the basis of digital home ecosystems?” • “Which strategies should SPs deploy to meet the Over-the-Top Video Challenge?” • “What is the disruptive impact of tablets on the value chain” • “Which vendors are best positioned for growth?” Digital Home Observatory (DHO) ConsumerMetrix (pre-launch) • “Large scale surveys of consumer usage, ownership and buying intentions” • “Early adopter technology ownership, configuration and behavioral audits” • “Customized cross tabs across content, devices, services, brands, demographics” • “Ethnographic and qualitative interviewing” Media & Entertainment Perspective “SA’s Digital Consumer Practice Focuses on the Opportunities arising from Emerging Digital Content Experiences” Consumer Behavior Service Provider Perspective Media & Entertain- ment DIGITAL CONTENT ECOSYSTEM Consumer Electronics Consumer Device Perspective Service Providers Consumer Perspective

5. Digital Consumer Practice: ConsumerMetrix(pre-launch)

6. DCP ConsumerMetrix: Content Outline User Survey Data Tailored To Client Needs Demographics Attitudes towards Personal Finance Content Consumption Device Ownership Purchase Intentions Price Expectations Technology Brands Service Providers Service Brands TV Channels Advanced TV Services Online TV and Video Advertising Emerging Concepts Social Media FOCUS ON 3DTV FOCUS ON SMART HOME • 4800 surveys every 6 months = 9600 surveys • 5 countries: US, Europe (Fra, Ger, Ita, UK) • Video and television focus • Traditional and emerging platforms (TV, online, PC, portable)

7. Technology Brands:Ownership, Purchase Intention, Preference

8. Service Availability and Providers Note: Non-exclusive list

9. TV Channels and Networks:“Must Have” Top 5

10. Typical questions ConsumerMetrix can address • Which demographics are most interested in telepresence? • How do nations vary in usage of digital video recorders? • How familiar are consumers with 3DTV? • Which television channels do consumers consider as “must have”? • How many Sky Digital customers plan to drop the service during the coming 12 months? • How concerned about personal finances are Comcast customers relative to those of Time Warner Cable? • How many Sony TV owners plan to buy Sony next time? • How do Apple device owner profiles vary by nation?

11. Digital MediaStrategies

12. Digital Media Strategies Analyzing the market for digital media services Online video and OTT TV Competitor Strategies • WebTV, OTT video, online video services • Forecasts of online video and TV usage, ARPU and revenues worldwide • Media strategies and partnerships of service providers & device vendors • Application developers and aggregators position in the media value chain Recorded Music Audiovisual Content • Global market trends and developments for online music services • Global market trends and developments for OTT video, Film & Home Video, Pay Television and TV Advertising Video Games Advertising • Forecasts of TV advertising, Print advertising, Other traditional advertising and online advertising • Global market trends and developments for offline and online games Social media • Global market trends, user and revenue forecasts • Impact on content strategies

13. Scaling the Global Media & Entertainment Industry

14. Digital Media StrategiesAnalyzing the market for digital media services Coverage Description • The industry leading source for audiovisual, TV & Video, usage and revenues • Global market trends and developments for WebTV & OTT video, Filmed Entertainment & Home Video, Pay Television and TV Advertising Audiovisual Content • Analysis of the strategic position of media brands in the online sector • Media strategies and partnerships of service providers & device manufacturers • Application developers and aggregators position in the media value chain Digital Media Strategies • DMS is the industry leading source for Digital Media metrics • WebTV, OTT video, games, music and social media • Forecasts of digital media usage, ARPU and revenues worldwide Digital Media Adoption • The industry leading source for video games metrics and revenues • Global market trends and developments for electronic sell-through of games, massively multiplayer online games and online games subscription services Video Games • The industry leading source for recorded music usage and revenues • Global market trends and developments for online single track, album, online music subscription services and freemium streaming services Recorded Music • The industry leading source for analysis of advertising-funded business models • Forecasts of the market for TV advertising, Print advertising, Other traditional advertising and online advertising for media companies and advertisers Advertising • Insight on the rapidly changing media applications and services landscape • The changing nature of consumer behaviour and the approaches media companies, operators and device manufacturers are taking to reach connected consumers Value Chain Analysis

15. Digital Media StrategiesKey Research Themes - 2011 • Comprehensive global coverage of the key media industries: • Audiovisual (Television & Filmed Entertainment), • Advertising, • Recorded Music • Video Games • Social Media • Value Chain Analysis • How are key stakeholders positioning themselves in the digital media value chain? • Consumer Research • Digital Media Survey: How are consumers changing their media habits? • Case Studies & Best Practice • What companies and what business models are most successful in digital media? • Market Tracking • Quarterly tracking of leading companies in the digital media space • Market Forecasts • Global, regional and country level forecast of 25+ key media & entertainment sectors

16. Digital Media StrategiesValue Added Additions 2011 • Further country level splits for all key forecasts, including: Argentina, Australia, Brazil, Canada, China, Czech Republic, Denmark, Finland, France, Germany, India, Italy, Japan, Mexico, Norway, Poland, Russia, S. Korea, South Africa, Spain, Sweden, UK, USA • Digital Media Survey: How are consumers changing their media habits? • Increased focus on Connected TV and OTT video and the rapid transition of the audiovisual industry: What industry challenges and opportunities is the new TV paradigm creating? • Increased focus on Case Studies & Best Practice: What are the most successful digital media companies & services doing right? What new business models will emerge in the “Era of Cloud Media” and which players will prevail? • Increased focus on tracking & indexes: How are leading digital media companies performing on a quarterly basis?

17. Digital Media Strategies2011 Report Schedule (non-exhaustive list)

18. Multiplay Market Dynamics

19. Multiplay Market DynamicsUnparalleled Coverage of the Triple and Multiplay Market Coverage Description Consumer Broadband Adoption • Regular and detailed forecasts of broadband adoption in 60+ countries • ARPU, broadband revenue and platform forecasts • Constantly expanding country base, including key emerging markets • Quarterly operator tracking and benchmarking for 200+ global service providers • Revenue and subscriber reporting, market sizing and operator-level market share forecasting Service Provider Strategies • Coverage and commentary on bundling strategies employed worldwide • Analysis of the bundle’s “insulating” effect • What works and what doesn’t. Vulnerability analysis of various strategies Multiplay Bundling Digital Television Adoption • Global DTV forecast, including subscribers and platform splits • IPTV Take Up; service provider imperatives • Advanced Television Services, 3DTV • Regularly updated consumer surveys, measuring customer satisfaction with Broadband, DTV, and Phone providers, spend intentions and service prioritization • Measures propensity to churn, barriers to switching and sensitivity analysis Consumer Satisfaction, Willingness to Pay and Churn Propensity Future of Fixed Voice • Effect of Fixed Mobile Substitution on PSTN. Service provider strategies for maximizing lifespan of copper network. Role of VoIP, adoption. • Expanded country coverage and focus on emerging Triple Play/Multiplay markets, including Central and Eastern Europe (CEE), BRIC and Latin America • Next Generation Network Assessments and Forecasts (FTTx, Wimax, etc) Emerging Market Opportunities

20. Multiplay Market Dynamics Key Research Themes - 2011 • Multiplay Bundling Trends and Forecasts • Consumer Cord Cutting: Assessing the Threat of OTT to “Traditional” Service Providers • 3DTV: In Search of a Monetizable Business Model • Value Added Services as Churn Mitigators, Consumer Interest in and willingness to pay for: • Home Security • eHealth • Financial Services • Remote Management • Storage • The Exabyte Era: Consumer Generated Network Traffic Forecast and Implications • Fulfilling the Promises of IPTV • Addressing Addressable Advertising • Consumer Telepresence Market Opportunity

21. Multiplay Market Dynamics Value Added Additions 2011 • Enhanced focus on overall Video Ecosystem • 3DTV, HD and OTT • Traffic Measurement and Forecasting • New focus on country-level data traffic • Forecasting of average actual bandwidth on regional basis • Broadband Composite Index • Enhanced measurement tool for assessing broadband development • Five factor analysis and comparative rankings • Value Added Service Coverage • Coverage of growing Value Added Service (VAS) market • Leverages survey work on customer interest in specific VAS

22. Multiplay Market DynamicsProposed Research Calendar: 2011

23. Connected Home Devices

24. Connected Home Devices (CHD) ServiceTotal coverage of the fixed and portable device landscape Coverage Description • TV, DVR, DVD, Blu-Ray, Set Top Box, Digital Media Players/Adapters • Google TV, Canvas, HbbTV and many other platforms demanding different devices Connected TV Devices • Pocketable: WLAN Smart Phone, MIDs, • Mobile: Netbooks, Tablets & Notebooks E-Book Readers. • Who can challenge the iPad? And what will iPad cannibalize? Connected Convergent Devices • Fixed & Portable Games consoles. • No longer just for gaming – they drive HD, 3D, VOD and connectivity. Could they take over the home? Connected Gaming Devices • Connected MP3/4 players • Digital Cameras, Shoot & Share Video, Digital Photo Frames. • Consumer Desktops, Network Attached Storage, Navigation, Connected Ad-hoc Devices • When will HD Devices catch up with HD TV sets? • When will 3DTV sets catch up with 3D-Ready STBs and Consoles? HDTV & 3DTV • Opportunities and Challenges for the current batch of no-new-wires technologies Home Networking • Mobile operators move beyond the handset into convergent or non-traditional devices – what are they and how many? • Wi-Fi still needed by Mobile Ops to offload and ease pressure on the networks – how many Wi-Fi enabled devices? Mobile Broadband & Wi-Fi

25. Connected Home Devices(CHD) ServiceKey Research Themes - 2011 • Which devices will bring the most immersive consumer experience – Google TV-type experience or Managed Services from existing Pay-TV providers? • Tablets, E-Books, Netbooks and MIDs will be hot product categories for 2011. Which ones will win?, where? And why? • I want what I want, where I want! What are the enabling technologies to achieve this? Connected TV Devices Connected Convergent Devices Enabling Technologies

26. CHD Forecast Coverage Device Unit Sales, Installed Base, Market Value, Household Penetration Japan RoW BRIC Global US Europe (E&W) UK, FR, DE, IT, SP

27. CHD How We Forecast Our Devices The Total Addressable Market Networked Devices Wi-Fi Devices WWAN Devices Segment IP Enabled Devices Segment Wi-Fi Enabled Devices Segement 3G/4G devices All Devices Start here

28. Connected Home Devices (CHD) ServiceValue Added Additions 2011 • Further country level splits for all key forecasts, not just the main Connected CE devices. Current coverage is: Western Europe, UK, France, Germany, Italy, Spain, USA, Japan, BRIC region, RoW and Global summaries • Connected Device Survey: What are consumers buying and why? • Increased focus on the rapid transition of the TV industry: What industry challenges is the new TV paradigm creating? • Connected Home Leaderboard: Further Competitive Strategy Analysis of the key industry players

29. Connected Home Devices (CHD) ServiceComprehensive Coverage and Forecasts for 21 Connected Device Product Categories Currently covers key regions of USA, Western Europe, C&EE, Japan, BRIC, and ROW

30. Connected Home Devices (CHD) : Major Deliverables and components

31. Tablet & Touchscreen Strategies An Overview

32. What is Tablet & Touchscreen Strategies (TTS)? Devices Content Access Enterprise Behaviour In 2010, Many SA teams have covered Tablets from their own perspective: Devices, Media, Enterprise, Consumer Research etc Each will now feed material into a new Service Tablet & Touchscreen Strategies (TTS) is the ‘go to destination’ for tablets and touchscreen devices, applications and related services research at Strategy Analytics.

33. Summary: TTS provides a holistic approach covering all aspects of the Tablet market Market Forecasts: unit sales, quarterly vendor market share, ASP, market value , 3G, Wi-Fi, Screen Size, OS, Price Band. and by ~25 enabling technologies eg HDMI, Flash, 3D, USB, BT Target Audience: device manufacturers and their enabling technology suppliers, media & content players, service providers and internet brands. Device Landscape : Focus on Tablets, But also E-Book Readers (EBRs), Mobile Internet Devices (MIDs) & future touchscreen portables

34. Summary: TTS provides a holistic approach covering all aspects of the Tablet market Cannibalization Behavioral Perspectives The impact of Apps on media consumption Prepay vs. Monthly subscriptions Traffic Implications For SPs Verticals Enterprise Consumer Vendor Competitive Positioning

35. TTS: A Summary of Device Coverage Tablets Future Touchscreen Products Eg Gaming Mobile Internet Devices MIDs TTS Service EBRs What’s excluded Tablets E-Books (EBRs) MIDs This category refers to a slate-shaped mobile casual-computing device, equipped with a touch screen or stylus. This would be typified by the Apple iPad Dedicated eBook readers or devices. These are turnkey products that employ Electronic paper, also sometimes called e-paper or electronic ink and include some eBook Reading software Touchscreen Handsets, Touchscreen PCs • Pocketable, truly mobile consumer devices enabling a PC-like Internet experience. Typically a MID will have a display between 4 inches and 6 inches, with the bulk in the 4.5 to 5.3 inch range.

36. 3 Worlds (Mo/CE/PC) converge in the Touchscreen Device Landscape between smartphones & notebooks Fixed networked devices 20+ Connected TVs The lines are blurring – cannibalization is inevitable Display Size (Inches) 14+ Notebooks 12 Netbook Non traditional devices 10 Tablet. 8 E-Book 6 MID 4 Smartphones Smartphones Smart feature phones 2 ‘Smart Feature’ phones US$500 Unsubsidized Retail Price US$1k Source: Strategy Analytics Tablet & Touchscreen Strategies Service

37. TTS Service Scope A familiar SA Model..

38. TTS : Value-Adds of a single service solution • Benefits: • More granularity for this high-growth sub-segment • More dedicated support • More data • Thought-leadership (qualitative) • World-class enquiry support

39. Summary: Key Takeaways • Quantitative and qualitative analysis of Tablet products: unit sales, quarterly vendor market share, ASP, market value , 3G, Wi-Fi, Screen Size, OS, Price Band, and by ~25 enabling technologies eg HDMI, Flash, 3D, USB, BT • The impact of Apps and services on media consumption and the traffic implications for fixed and mobile service providers. • Assessing the impact of subsidies and data pricing. Studying the business models required to drive mobile broadband usage - Prepay vs. Monthly subscriptions. • Tablet usage by consumers as an entertainment and personal productivity device, and as an Enterprise device, as the corporate world wakes up to the opportunities available with this new platform. • Usage patterns are still unfolding, but TTS will cover usage within the home, on the road, or in the office; studying in detail the split between Wi-Fi devices and 3G devices. • Consumer analysis: examining current Tablet ownership, buying intentions, price expectations. • Tablet Database with detailed specifications.

40. Digital Home Observatory

41. Delivering a 360° Research Perspective A Holistic View of the Emerging Digital Content Ecosystem Media & Entertainment Consumer Behavior • How is the television industry changing? • What industry challenges is this new TV paradigm creating? • What is driving early adopters to seek out Connect TV experiences? • How are they changing their behavior around what TV they watch? Consumer Behavior Media & Entertain- ment DIGITAL CONTENT ECOSYSTEM Consumer Electronics Service Providers Consumer Electronics Service Providers • How much traffic will OTT video bring onto the networks? • Is pay TV doomed or will 3D TV save the day? • How many connected TVs devices will be sold in the coming years? • What are the CE vendors strategies for OTT video?

42. Digital Home Observatory Observing online video users Understanding emerging behaviors Identifying needs and preferences 500+ hours annually 100+ consumers 8 markets

43. Digital Home Observatory Research Scope Coverage Description • Which OTT Consumer Segments are Emerging? What is driving adoption? • How are OTT consumer behaviors different from traditional media consumers in terms of content discovery, storage, consumption and sharing? • What is the optimal UX for integrating online video? Which offerings best meet user needs for Hardware, Controllers, Software, Content and Value Added Services? Online Video • How is consumer use of social networking while watching TV developing? • What are the core motivations for social networking related to media and how should you implement social TV applications to provide the optimal experience? Social TV • How are consumer behaviors changing relative to multi-screen adoption? • What new multi-screen experiences do users want? • How can you deliver a superior multi-screen experience? Multi-Screen • Which segments will adopt 3DTV? • What are the barriers to adoption and how can these be overcome? • How can you deliver a superior 3DTV experience? 3DTV

44. Digital Home Observatory 2011 Research Topics • Profiling Online Video Consumers • Consumer Profiling, Behavioral Insights, Implementation Preferences • Reports on Consumers in 5 Markets: USA, UK, Germany, Spain, China • Online Video Discovery and Sharing • Examines online content discovery processes for movies, TV shows and video clips • Defines approaches for optimizing the online content discovery expertience • TV Apps: User Profile and Insights • Observing and interviewing consumers who use connected TVs with app interfaces • Multi-Screen: User Profile and Insights • Observing and interviewing consumers who consume media across smartphones, tablets, laptops and TVs • Social TV: User Profile and Insights • Observing and interviewing consumers who use social networking while watching TV • UX Benchmarks: • Placeshifting Solutions (Sling Media, Orb TV etc.) • Controllers for Web TV • OTT Media Boxes (Google TV, Apple TV, Boxee, Roku Box etc.) • Connected TV/Tablet Apps (AT&T U-verse, Comcast Xfinity, TWC TV-On-Your-Tablet… • Innovation Reviews

45. Observing the Digital Media Consumer Directly Observing Digital Media Lead Adopters in the Home Global Research Scope Explaining Behaviors, Motivations, Preferences Identifying Unmet Needs & Barriers to Adoption Defining Best Practice Experiences Recommendations for Developers of Controllers, Digital Media Hardware, EPG/GUIs and Connected Services

46. Key Contacts • David Mercer • VP, Digital Consumer Practice • +44 1908 423610 • dmercer@strategyanalytics.com • Peter King • Director, Tablet and Touchscreen Strategies • +44 1908 423615 • pking@strategyanalytics.com • Jia Wu • Senior Analyst, Connected Home Devices • + 1 617 614 0712 • jwu@strategyanalytics.com • Kevin Nolan • VP, User Experience Practice • +44 1908 423609 • Knolan@strategyanalytics.com • Ben Piper • Director, Multiplay Market Dynamics • +1 617 614 0723 • bpiper@strategyanalytics.com • Martin Olausson • Director, Digital Media Strategies • +44 1908 423611 • Molausson@strategyanalytics.com Research alerts: Register at www.strategyanalytics.com Strategy Analytics Blog: http://blogs.strategyanalytics.com/