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1 2011 Digital Entertainment Content Ecosystem (DECE) LLC
2 2
3 Disrupt - to tear apart, shatter, to interrupt or cause to cease entirely. Clayton Christensen, The Innovator s Dilemma. Disruption must be viewed as an opportunity rather than a threat. Viewing disruptive innovation as a threat forces the incumbent to attack it and go against the flow rather than seek out market opportunities. Disruption
4 Disrupt - to tear apart, shatter, to interrupt or cause to cease entirely. Digital Parasites Disruption
5 The Next Greatest Generation? Confidentin their ability to succeed Smarterthan previous generations aptitude test scores are up Collaborative team playerswho think in groups They are social networkerswho are eager to share news with friends Millennials - Born
6 Value placed on devices used by Adult Millennials Can t live without Smartphone, Laptop, & Tablet TV, Game console & Desktop Digital music player, DVR, & Digital video player Lower value Satellite radio & Handheld Gaming Device The Adult Millennial Value Pyramid: Smartphones, Tablets and Laptops Surpass TV
7 2004 Boomers Generation X ers X Millennials Milllennials Number of Millennials 41 million million million million million million 0% 20% 40% 60% 80% 100% Domination By 2014 And Beyond Based on U.S. Census population projections
8 DIGITAL DISTRIBUTION: REALIZING POTENTIAL Promise POTENTIAL POTENTIAL POTENTIAL POTENTIAL POTENTIAL POTENTIAL POTENTIAL POTENTIAL POTENTIAL POTENTIAL POTENTIAL POTENTIAL VALUE VALUE VALUE VALUE VALUE VALUE VALUE VALUE VALUE VALUE VALUE VALUE OF OF OF OF OF OF OF OF OF OF OF OF ENTERTAINMENT ENTERTAINMENT ENTERTAINMENT ENTERTAINMENT ENTERTAINMENT ENTERTAINMENT ENTERTAINMENT ENTERTAINMENT ENTERTAINMENT ENTERTAINMENT ENTERTAINMENT ENTERTAINMENT REALIZED VALUE SO FAR Capabilities Future So much promise!
9 CONSUMERS ARE UNSATISFIED BUYING MOVIES ONLINE (on scale of -2=least satisfied and +2=most) Areas of lowest satisfaction are among those directly addressed by UltraViolet Source: UltraViolet Consumer Insights Survey, Oct. 2010; conducted for DECE by AbsolutData Technologies; n = 1,025
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17 ULTRAVIOLET: THE FIRST TRUE DIGITAL PRODUCT FOR CONSUMERS Interoperable Rights Locker for family/household, enabling: Retailer Retailer Retailer Retailer Interoperable download product (crossplatform/drm + App/Device registration) Remote access streaming Bundled digital/physical offers Consistent message and product proposition UltraViolet branded digital product sold by multiple retailers , DECE LLC
18 LOOK FOR THE LOGO WHERE YOU SHOP
19 LOOK FOR THE LOGO WHERE YOU SHOP YOUR ULTRAVIOLET ACCOUNT
20 LOOK FOR THE LOGO WHERE YOU SHOP YOUR ULTRAVIOLET ACCOUNT WATCH WHEREVER, WHENEVER Download Streaming Physical Media
21 MORE THAN 75% OF CONSUMERS ARE INTERESTED IN ULTRAVIOLET (BOTH DISC AND EST). MORE THAN HALF OF SOME HIGH-VALUE SEGMENTS ARE VERY INTERESTED. Interest in UltraVioletif it comes with movies or TV shows that a consumer is considering buying Very interested is more than 50% for Male Current EST Buyers itunes Users Tablet Owners Source: UltraViolet Consumer Insights Survey, Oct. 2010; conducted for DECE by AbsolutData Technologies; n = 1,025
22 MORE THAN 60% OF CONSUMERS ARE LIKELY TO SWITCH RETAILERS TO GET ULTRAVIOLET; HIGH-VALUE SEGMENTS ARE EVEN MORE LIKELY TO DO SO. Very likely for more than 25% of Blu-ray Buyers Blu-ray Renters / Subscribers EST Buyers itunes Users Tablet Owners Source: UltraViolet Consumer Insights Survey, Oct. 2010; conducted for DECE by AbsolutData Technologies; n = 1,025
23 MORE THAN 60% OF CONSUMERS SAY ULTRAVIOLET IS LIKELY TO MAKE THEM BUY CONTENT MORE OFTEN. Impact on consumers choice to buy content vs. renting it or getting via subscription Buy more often AND more-overall > 20% for Male Blu-ray Buyers Blu-ray Renters/Subscribers EST Buyers itunes Users Tablet Owners Source: UltraViolet Consumer Insights Survey, Oct. 2010; conducted for DECE by AbsolutData Technologies; n = 1,025
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25 Good companies don t fail because of radical new technologies, they fail because of the companies reactions to those new ideas. Clayton Christensen, The Innovator s Dilemma.
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