1. Copyright © 2011, Zanthus. All rights reserved. 2011 State of the Connected Home Market Study February 25, 2011 Webinar 2011 State of the Connected Home Market Study February 25, 2011 Webinar

2. Full-service research-based consulting firm focused on high-tech Founded in 2000 Staff of 13 professionals based in Portland, Oregon Our mission To provide consultative excellence and exceptional execution on every project engagement. Fast Facts About Zanthus 1Copyright © 2011, Zanthus. All rights reserved.

3. Digital Entertainment Video content and services Games (across platforms) Digital Information Applications Content portals Search Digital Communications Social networking Messaging, voice and video Connected home 2 Devices and Platforms Laptops, netbooks, PCs, tablets Mobile devices Emerging form factors Software and device usability Services Cloud services Delivery (wireless, HSI, VoiP, etc.) Connected Home Home control & automation Energy management Home networking Zanthus Key Content Areas Copyright © 2011, Zanthus. All rights reserved. We are skilled at looking across these domains – our goal is to be attentive to the total user experience.

4. Michael Lehman, President Mike has over 25 years experience in the wireless and high technology sector. At Zanthus, he focuses on market opportunity assessment, with particular attention given to convergence-related devices and services. Zanthus CABA Account Team Carole Wiedmeyer, Partner Carole has many years of experience in market research and a background in marketing communications. At Zanthus, she has done extensive research on the ‘connected home’ for CABA and other clients. Copyright © 2011, Zanthus. All rights reserved.3

5. 2011 State of the Connected Home Market Study Proposed Scope 4Copyright © 2011, Zanthus. All rights reserved.

6. CABA intends to accelerate the connected home market, in part, by encouraging its members and other market leaders to adopt a holistic or systems perspective. As part of that effort, CABA has commissioned Zanthus to conduct several State of the Connected Home Market research studies over the years to track consumer attitudes and behaviors. CABA plans to conduct another wave of this "Landmark Research" study in 2011. 5 Background Copyright © 2011, Zanthus. All rights reserved.

7. Are Consumers Ready for the Connected Home? 6Copyright © 2011, Zanthus. All rights reserved. % Saying Connected Home Concept is ‘Appealing’ U.S. Online Consumers

8. The study will enable sponsors to: Identify the most desired features and combinations of features for connected home solutions, and how these map to improving consumer lifestyles. For example, security, comfort, energy savings, family communications, entertainment, etc. Identify the state of enabling network technologies for the most desired solutions, and needed improvements to facilitate adoption. Characterize the most promising consumers in terms of their lifestyles, family dynamics, demographics, likely purchases, and decision-making processes for new purchases. Understand how to make the benefits of connected home solutions clearer to consumers, while effectively addressing concerns. Update channel approaches to more easily entice consumers to consider purchase of connected home solutions. 7 Research Objectives Copyright © 2011, Zanthus. All rights reserved.

9. Three separate web surveys, each with a special focus on a specific ecosystem: Entertainment Family Career Sample size = 1800 in U.S. and 600 in Canada (600 and 200 per ecosystem). Average interview length of 20 minutes. 8 Approach Copyright © 2011, Zanthus. All rights reserved.

10. Historically, the State of the Connected Home Study has used an ‘ecosystem’ approach to uncovering market opportunity in three main lifestyle domains: Entertainment, Family and Career. We propose continuing this approach in 2011 because each area constitutes a distinct set of behaviors and needs tied to consumer technology adoption: Entertainment includes areas such as music, video and gaming. Family includes home systems (including home energy management and control), family communications, scheduling, health and fitness, and community. Career consists of productivity, communications, scheduling, community, work skills and work / life balance. 9 Ecosystem Framework Copyright © 2011, Zanthus. All rights reserved.

11. The study will maintain a core set of questions around behaviors, attitudes, and needs of the general adult online consumer population up to age 64. For the Family ecosystem, we will screen for multi-person households. For Career, we will target those who use a computer for work. The study will also incorporate some new lines of questioning focusing on key topics of interest, including convergence-oriented capabilities and networking. Project sponsors will be able to contribute specific questions, as well as specific product or service concept descriptions for testing. Proprietary questions or concepts will require a separate fee. 10 Survey Design Copyright © 2011, Zanthus. All rights reserved.

12. Tentatively, the 2011 study will cover the following topics: Ownership of relevant products/services. Reasons for purchasing (or not purchasing) current products/services. Networking usage and intent to network various systems, devices and applications. Consumer understanding and awareness of Home Energy Management Systems (HEMS) and interconnectivity to Smart Grid development. Satisfaction with current products/services and network connections. Appeal of, and intent to purchase/select new products/services in category. Reaction to 4 to 6 value propositions and/or messages, which may be incorporated into advertising and other messaging campaigns. Preferred channels and installers for select products (time allowing). 11 Survey Topics Copyright © 2011, Zanthus. All rights reserved.

13. Key Findings from 2008 Study: Behaviors Most U.S. Home Networks are Basic; Canadians Have Webcams Letters denote statistically significant differences among segments. U.S. 2008 (n=1,742; A) Canada 2008 (n=610; B) Copyright © 2011, Zanthus. All rights reserved. Home Network Status None Basic Computer-only network Intermediate Common device with discrete functionality (videogame system; webcam) Advanced Uncommon device (home control/security system, media server) 12

14. Key Findings from 2008 Study: Interests Entertainment is Leading Interest; Remote Work Interest is Growing Letters denote statistically significant differences among segments Improve work productivity at home Automate or control basic home systems Media entertainment for the home Streamline routine tasks Home security Improve work productivity while on the road NA Copyright © 2011, Zanthus. All rights reserved. (% Very Interested; Top-2 Box) Canada 2008 (n=649; C) U.S. 2008 (n=1,849; A) U.S. 2005 (n=1,834; B) Specific Interests 13

15. 14Copyright © 2011, Zanthus. All rights reserved. Appliance Operation & Maintenance Service Consumer Electronics Recycling Program Home Energy Management Gateway Integrated Home Management System U.S. 2008 Total Online HHs Canada 2008 Total Online HHs 16% 26% 21% 11% 12% 30% 18% Maximum Total Addressable Market (TAM) Networking Retrofit 19%9% Visual Voicemail 17%12% Key Findings from 2008 Study: Concept Testing Device Recycling and Home Energy Management Are Appealing

16. 15 Survey Analysis Will Focus on Convergence Optional Methods Copyright © 2011, Zanthus. All rights reserved.

17. Survey Analysis Example Encourage initial purchase and subsequent upgrades through product migration path, bundles. Copyright © 2011, Zanthus. All rights reserved.16

18. One full report in presentation style in Microsoft PowerPoint with an executive summary, detailed findings and conclusions and recommendations, plus a teleconference review of the findings with project sponsors. The report will track trends from prior years of the study, where possible. Three sets of cross-tabulations with results for all survey questions. Optional: One full report in narrative style in Microsoft Word, including an executive summary, detailed findings, conclusions and recommendations. 17 Deliverables Copyright © 2011, Zanthus. All rights reserved.

19. The research is expected to take up to 21 weeks to conduct, depending on the number of research sponsors and the scope of the study. 18 Timing Copyright © 2011, Zanthus. All rights reserved. ActivityAnticipated Date(s) Project approvalWeek 1 Finalize project parametersWeek 2 Questionnaire designWeeks 3 – 6 Questionnaire programming, testing, fielding Weeks 7 – 12 Data processing, analysis, reporting Weeks 13 – 21 Data files and report/presentation delivered Week 21

20. Costs are quoted in U.S. dollars. Level 1: $15,000 per participant Benefits: Featured case study, Study Steering Committee participation, study scope definition, survey design, final reports, and complete 2008 State of the Connected Home Study Level 2: $10,000 per participant Benefits: Study Steering Committee participation, study scope definition, survey design, final reports Level 3: Contributor: $5,000 per participant Benefits: Study input, final reports Optional, regardless of sponsorship level: Proprietary Question Added to Survey - Deliverables: cross-tabulations of findings 19 Study Sponsorship Opportunities Copyright © 2011, Zanthus. All rights reserved.

21. Contact Information John Hall CABA Research Director hall@caba.org Phone: 613.686.1814 x227 Ken Gallinger CABA Marketing Director gallinger@caba.org Phone: 613.686.1814 x229 CABA Phone: 613.686.1814 Fax: 613.744.7833 George Grimes CABA Business Development Manager grimes@caba.org Phone: 613.686.1814 x226 2008 State of the Connected Home Market Executive Summary available at: http://www.caba.org/resources/Documents/StateofConnectedHomeMarke tStudySummary%20[Read-Only].pdf http://www.caba.org/resources/Documents/StateofConnectedHomeMarke tStudySummary%20[Read-Only].pdf