1. The Future of Home Entertainment Moderator: Steffen Bartschat SVP Engineering, Sonic Solutions & Co-chair, GABA Software IG sbartschat@comcast.net 05 November 2009

2. Our Panelists Jeff Klugman - SVP/GM at TiVo. Jim Taylor - SVP & Chief Technologist at Sonic Solutions. Roland Vlaicu - Director of Technical Marketing, Dolby. Todd Collart - SVP New Media at Deluxe Digital Studios. Michael McGuire – VP Research at Gartner. Jerry Pierce – CEO/Founder at AZEC, Inc, and former SVP Technology, Universal Pictures.

3. Overview: Technology in Transition High Definition TV Blu-ray Disc 3D Set-top box / DVR Smart TVs Delivery Casual Consumption & Device Integration Media Server Questions Predictions

4. High Definition TV 80% own DVD player 78% own cell phone 71% own PC 40% own video game system 20% own home theatre system Source: CTAM

5. Blu-Ray Source: FutureSource Consulting

6. 3D Cinema: 30 releases in 3D in 2009 3D produces 3x revenue of 2D 3D TV programming “widely accessible” by 2011..(?) Graph Source: Quixel Research

7. Set-top Box / DVR Time Shift (DVR) Place Shift (e.g. Slingbox) The “Google of Television” – TiVo CEO Tom Rogers Graph Source: ZenithOptimedia/Nielsen

8. DVRs Are Changing TV/Ad Viewing Viewers Fastforwarding Viewers Timeshifting TiVo Inc. Proprietary Information8

9. 9 Where are the commercials? Grey’s Anatomy – ‘Staring at the Sun’ 10.0% 7.5% 5.0% 2.5% 0.0% Percentage of Viewers in Play Speed Time into Program (Ticks at 10 Minutes) Live Near Live (within 1 hour) 1-6 hour delay 4.6 hour – 2 week delay

10. Smart TV iPhone: 2B downloads, 100,000 apps! “With iPhone everything changed, we think a similar thing could happen on TVs” – Eric Kim, SVP Intel Graph Source: Parks Associates

11. “Sofa Factor” Source: The Nielsen Company

12. Delivery DVD-by-mail business will peak in 5-10 years – Reed Hastings, CEO Netflix “The concept of a flat-rate infinitely expandable service is unachievable” – Dick Lynch, CTO Verizon Graph Source: Kaufman Bros., Zoomerang

13. Device Integration – the Apple Factor Apple TV – set top box - future DVR? iTunes – content delivery vehicle & app store! iPod, iPhone – casual portability “Apple could leverage its deep library of content with many network and cable channel content owners to provide unlimited access to a sub- library of its TV shows for a standard monthly fee” – Gene Munster, analyst Piper Jaffray $30-$40/month for iTunes vs. $85/month for Cable? Graph Source: Apple Inc.

14. Missing in Action: Media Server Remember 2007? “As a software platform and an “always on” device in the home, Windows Home Server offers independent software vendors tremendous opportunities to build innovative products for the digital home. Microsoft anticipates that a wide range of third-party applications and tools will emerge for Windows Home Server, such as family schedule management, home automation systems, security solutions and more. “ – Microsoft, Jan 2007

15. Questions?

16. Predictions

17. Time-Shifting is pervasive in DVR Homes and increases in Primetime Time-shifted Live Total About 30M DVR households in US today; +50 M in 3 years