Available Now at a Dealer Near You Connected Cars and What they Mean for Radio

1. Available Now at a Dealer Near YouConnected Cars and What they Mean for Radio Valerie Shuman VP, Industry Programs Connected Vehicle Trade Association 2011 – Jill and Mike V Shuman

2. Overview • WHAT is a Connected Car?  • WHY are we connecting cars?  • HOW are we connecting cars? • WHEN will most cars be connected?  and… • What does this mean for RADIO? Ideas in this presentation are not necessarily those of the CVTA.

3. WHAT Is a Connected Car?

4. WHAT Is a Connected Car? 1.0 Safety & Convenience Insurance Infotainment

5. WHAT Is a Connected Car? 2.0

6. WHY Are we connecting cars? $100B wasted 33,000 deaths >50% drivers want it

7. HOW Are we connecting cars? Embedded Brought-in • Easy for the consumer • Optimal driver interface • Integrated with vehicle systems • Works when car’s alone • Business model issues • Quickly obsolete • Fairly easy for the consumer • Non-automotive interface • Harder to integrate • Doesn’t work when car’s alone • Business model works well • Consumer refreshes device often

8. HOW Are we connecting cars? App stores Software-Defined Everything APIs Virtual Dashboard Software Defined Radio Smartphone interfaces Bottom Line: The platform is changing.

9. HOW Are we connecting cars?

10. WHEN Will most cars be connected? U.S. 2012 90M+ cars with AUX jacks 230M Vehicles 164M Smartphones 11M 18M* Streaming Radio Capable cars In-car Streaming Radio listeners

11. WHEN Will most cars be connected? Future SiriusXM this year will be factory installed in close to 70% of all new vehicles sold in the U.S. SiriusXMis available in vehicles from every major car company, as well as most specialty auto makers. Over 90 percent of new cars sold in the United States have an option for iPod connectivity. Ford and Microsoft, which said the companies’ 5-millionth vehicle equipped with the SYNC system had been sold. About 40 percent of the cars sold in the United States last year can already connect to wireless data networks. About 50 car models in the United States already have Internet radio app integration or will have it in their model-year 2012 versions.

12. What does all this mean for radio?

13. You Are No Longer Alone http://fromthistothatbybobbalou.blogspot.com/2012/10/leafs-me-bewildered_7.html

14. The Elephant’s Got A Whiteboard • How do consumers consume content? • What does “programming” mean now? • How will you make money in this new environment? http://www.visualphotos.com/image/2x3907151/elephants_trunk_and_a_whiteboard

15. Opportunity: Content Integration “Traffic on the 8’s: Lane closures on EB and WB I-70 from 2 miles east of I-55/70/270 interchange to the US-40 interchange at Pocahontas.” “Would you like me to find an alternate route?” Same content. Same problem. Totally different user experience.

16. Opportunity: Mobile Advertising I’ll have to remember that. • “$5 off oil change, auto dealership 1 mile ahead ” “Tickets on sale now! ” Take an existing process to another level.

17. Content & services “budget” How will you handle nomadicity?

18. Dividing the Dashboard Dollar Content Providers AutoCos Satellite radio fees Dashboard real estate fees Content Creators Hardware & Software Content licensing (varies) HD Radio IP licensing • How will you make money in this environment?

19. In Summary • You are no longer alone • Basic car connectivity available now • Opportunities are out there • How do consumers consume content? • What does “programming” mean now? • How will you make money in this environment? 2011 – Jill and Mike V Shuman

20. Learn More… • CVTA is an international, non-profit trade association formed to advance the interests of industries and organizations involved in vehicle communications • Membership is open to companies, universities, standards bodies and public agencies globally • Contact: Valerie Shuman (vs@shumangroupllc.com) www.shumangroupllc.com