The Future of Personalised Broadband Edutainment

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 Market Opportunity

Broadband is now a reality

> 40m European broadband accounts by 2005

Video and interactive media drivers

No Internet buffering and congestion...

ShortMedia is the compelling format

for all platforms

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 US Market Maturing Fast
Online Subscriber Forecast
80 75
72
Millions of US Households

70 65

60 57
50
50
40
30 26
20.2
20 14.7
9.6
10 5.1

0
2000 2001 2002 2003 2004
Over a third of all online homes will subscribe to high speed access by 2004

shortmedia confidential Source: The Yankee Group, 2001

 Market Opportunity
Global streaming media revenue growth ($Billion)
12

CAGR of
122% between
2000-2005
4.2

2.5

0.078

2000 2004 2005 2008

Source: Jupiter; USDATA; Paul Kagan Associates

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 Broadband Players and Needs
Carriage
Network operators need to acquire customers, reduce churn
and increase value per customer while lowering costs

Content
Rights owners must distribute content to the largest possible
audience and exploit new revenue windows

Consumers
Broadband users demand compelling, varied content in an
accessible and easy to use format

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 ShortMedia’s Model
Shortmedia Solution

Video DSL
Encoding and
Meta-Tagging

Content Content
Games Licencing Delivery Cable
System Network

Distribution
System
Interactive Wireless

Source Package Distribute

Production Access

Revenues Revenues

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 Phase 1 Target Market
UK, F, D, NL, S : 80% of European market

= Phase 1

= Phase 2

…followed by Asia and Americas

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 Content Universe
Special Mainstream Cutting Edge
Micro-Niche Games
Interest Film/TV Digital Media

Content Trailers
Dispersal

Highlights

VOD
Archery Club Animation Films, TV Sports,
Content Arts,
Religious Education Soap, comedy, ‘shoot-em-up’
“Exploratory”
Example etc Corporate Sports... Role-playing

Fragmented, Minority Mainstream Youth, office New-adopters

Audience Minority - mainstream etc Niche

Small production WAAG; V2; ZKM,

ARTE, AtomFilms BBC; France TV Virgin Interactive
houses, Le Fresnoy,
Oxford Uni. Press TF1; KIRCH; UbiSoft
Players Users Art Schools,
Bloomberg AOL/TW; C4 Sony
Artists

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 Content Examples
Classics Cutting Edge Education
Short films and animation
Golden sporting moments Adult education

Short comedy sketches

Funniest comedy clips Professional training

Music performances
Great drama scenes Language Learning
& installations

Music videos and concerts National curricula

Micro-niche sports

Classic games Travel Guides

Talk shows / Interviews

Classic cartoons & adverts Hobbies

Innovative digital media

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 Content Examples
Consumer Corporate Education

Golden sporting moments Corporate training Adult education

Funniest comedy clips Market information Professional training

Great drama scenes Sectoral updates Language learning

Music videos and concerts Language learning National curricula

Classic games Travel Guides

Classic cartoons & adverts Hobbies

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ShortMedia Offer to Content
Encoding
Distribution Solution
New
– Audience & Format
– Revenue window

Builds or Improves
– Brand
– Promotion & Merchandising opportunities
– Customer Knowledge

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 Value Drivers
Faster Acquisition
• Consumer awareness of compelling content
• Common needs among targetable communities

Greater Customer Retention

• Better content, with true VHS-level quality
• More focused on their needs
• Personalisation is a barrier to exit > lower churn

Increased Network Use

• Broadband consumption drives revenues and future services
• Replaces current revenues such as voice and dial-up
• Increases utilisation of core assets

Integration  Commoditisation
• Increasing value added services to consumers and businesses
• Increased visibility of consumer preferences
• Reduced risk of relegation to access only provider

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Re: Inventing Regulation:
Being Broadband
www.re-think.com/knowledge1.htm

Marsden@re-think.com

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The Future of Personalised Broadband Edutainment

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