Digital Media ServicesDigital Media Services

WAEA Conference & Educational Workshops 2007WAEA Conference & Educational Workshops 2007

May 23 – 24, 2007 – Zurich, SwitzerlandMay 23 – 24, 2007 – Zurich, Switzerland

Portables Portables SessionSession

Scott RalstonScott Ralston

Director Business Development, Director Business Development, Thales AvionicsThales Avionics

Digital Media ServicesDigital Media Services

Thales Avionics, Inc.Thales Avionics, Inc. - Company & Division Company & Division OverviewOverview

One of Two Leaders in the IFE Systems One of Two Leaders in the IFE Systems MarketplaceMarketplace

Global Presence with Headquarters in Global Presence with Headquarters in Southern, CASouthern, CA

Turnkey ApproachTurnkey Approach

Products, Services & SupportProducts, Services & Support

More Than Forty Years ExperienceMore Than Forty Years Experience

Began with simple Personal Control Units Began with simple Personal Control Units (PCU)(PCU)

Evolved to Elaborate, Web-Based Intranets in Evolved to Elaborate, Web-Based Intranets in the Skythe Sky

Digital Media ServicesDigital Media Services

Product Philosophy on PortablesProduct Philosophy on Portables

CurrentCurrent Devices Fulfilling Specific Market Devices Fulfilling Specific Market NicheNiche

Integral to Long Term Strategy at ThalesIntegral to Long Term Strategy at Thales

Anticipate Proliferation of Consumer Devices Anticipate Proliferation of Consumer Devices over Next Decadeover Next Decade

Demand for Content Anywhere / Anytime IncreasesDemand for Content Anywhere / Anytime Increases

800 million 800 million - Projected # of Cell Phones Sold in - Projected # of Cell Phones Sold in 20072007

> 80 million> 80 million - Nokia’s 3G Market - “Media - Nokia’s 3G Market - “Media Enabled Phone”Enabled Phone”

> 8 million> 8 million - iPODS Sold in Q4 2006 - iPODS Sold in Q4 2006

DownloadsDownloads - Bigger Market than CD’s or DVD’s- Bigger Market than CD’s or DVD’s

Digital Media ServicesDigital Media Services

Obstacles to Overcome – Content Owners Answer Obstacles to Overcome – Content Owners Answer the Call…the Call…

DRMDRM

Digital Rights Management Gains AcceptanceDigital Rights Management Gains Acceptance

Proprietary Methods > Standard MethodsProprietary Methods > Standard Methods

UbiquityUbiquity

Technology Increases Ability to Effectively Repurpose Technology Increases Ability to Effectively Repurpose ContentContent

Market MaturityMarket Maturity

Legal Distribution Channels PrevailingLegal Distribution Channels Prevailing

Digital Media ServicesDigital Media Services

Identifying & Converting the Opportunity Identifying & Converting the Opportunity

Market Price Established by Consumer / Market Price Established by Consumer / Ground Based ModelsGround Based Models

Option to Purchase / Rent Content on the AircraftOption to Purchase / Rent Content on the Aircraft

““Grazing” Becomes More Prominent Grazing” Becomes More Prominent

Dead Time Filled by Electronic DistractionDead Time Filled by Electronic Distraction

Motivation Reaches Beyond Capturing Motivation Reaches Beyond Capturing Passenger SpendingPassenger Spending

Global Brand Image CultivationGlobal Brand Image Cultivation

Special Services Capture & Retain Customer Special Services Capture & Retain Customer LoyaltyLoyalty

Digital Media ServicesDigital Media Services

Enabling Innovation Enabling Innovation

General Interface between IFE System & General Interface between IFE System & Consumer DevicesConsumer Devices

Audio & Video Output of Devices to Inputs of Audio & Video Output of Devices to Inputs of Embedded SystemEmbedded System

Power for Consumer Devices (USB and 115 VAC)Power for Consumer Devices (USB and 115 VAC)

MobileIFE™ MobileIFE™

Range of Services and Revenue-Generating Range of Services and Revenue-Generating OptionsOptions

Pay-Per-Access for Applications and Pay-Per-Access for Applications and ContentContent

Content Sales Direct to PAX Content Sales Direct to PAX Portable DevicesPortable Devices

Content Revenue for Streaming Content Revenue for Streaming Media to PAX Devices Media to PAX Devices

Sponsored Web & MicrositesSponsored Web & Microsites

Catalog SalesCatalog Sales

Web Portal (www.topeffects.comWeb Portal (www.topeffects.com))

Digital Media ServicesDigital Media Services

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