1. In-Stat, we provide Numbers The Digital Entertainment Ecosystem Broadband Speeds by Technology Broadband penetration versus Pay- TV and Free TV services The Race for VOD and HD-VOD How many PEOPLE are in the mix?

3. Broadband Speeds: How Much is Enough? 2 Gigabyte file takes 30 minutes to download on FTTH 12 Gigabyte HDTV files will take three hours on FTTH Concurrency (many simultaneous users) slows this down US Residential Broadband Speeds

4. Service Penetration in US Households

5. The Race for HD VOD By 2012, 45% of US HHs will have VOD, 35% will have HD-VOD By 2012, about 35% of US HHs will have Broadband > 10 Mb/s

6. Entertainment Voice and SMS Computing iPod Feature phone iTouch Mobile Internet Device Portable Media Player Multimedia phone CellphoneUltra-Mobile PC BlackBerry Cellular Devices Portable Entertainment Devices Ultra Mobile Devices Personal Nav Device iPhone Portable Digital/Sat Radio Receiver Smartphone Mobile Boundaries are Blurring

7. How Many People Are Involved? By 2012, 250 Million People in the US will be accessing Content for use with TV, PC, Mobile or Portable Devices

8. Conclusions We need Peer-to-Peer Networks to deliver all this stuff economically Distributed Networks need to be: –Efficient and well-mannered –Managed to control applications –Secure to protect content, transactions and users Finally, need to create revenues !

9. http://www.in-stat.com Elaine Potter, Manager Tel: +1.480.483.4441 epotter@reedbusiness.com Gerry Kaufhold, Principal Analyst Voice: 520 363-9752 gkaufhold@reedbusiness.com