1. Evolution of the Home-MovieIndustry Team Rock Solid: Hannah Houshian Jonathan Kaplan Tara KuhnerDaniel Westfall Michael Yen

2. Preview Today we will: Address how things were previously done Explain how the industry has been affected byadvances in data communication Describe the major data communication vendorsand what their products enable Define the competitive structure of datacommunications in the industry Forecast where the industry is headed 3. How Things Were DonePreviously 4. VHS Comprised of television pictures and soundplaced onto a magnetic tape Linear method of storing information First widespread video cassette can be creditedto Sony in 1969 Inability to store mass amounts of data, videorecordings becoming digital, inconvenient size,and viewing quality 5. DVD Phillips and Sony joined together to develop amedia format that could hold large amounts ofdata Replaced VHS tapes in the entertainmentindustry because they produced high qualityvideo and audio Remain a popular media format 6. Blu-ray Shuji Nakamura, a University of California atBerkley Professor, invented the blu-ray disc Came in as a major player in the format warsbecause of the need to record play and recordHD content Use shorter wavelengths, which in return enablehigh-density storage Analysts expect more than 32 million blu-raydiscs to be sold in the United States in 2011 7. Internet-Streaming YouTube leads the way in video streaming Convenience, cost, quality, variety, and ease of use have lead consumers to choose internet streaming over physical formats. 8. How The Industry Has Been AffectedBy Advances In Data Communication 9. Technologies as a Source ofRevenue Digital events streaming 3D movies IMAX VOD 10. Replacing Previous Technologies DVD sales dropping Illegal downloading 11. New Ways to Cut Costs No more film reels Digital files 12. New Costs Associated withChanging Technologies New equipment Transition costs Hardware Software 13. Major Data Communication VendorsAnd What Their Products Enable 14. Redbox Founded in 2002 33,000 kiosks Low price andconvenience DVDs, Blu-ray,Games QR Codes, iPhoneand Droid Apps Streaming servicefuture 15. Netflix Founded in 1997 23 million subscribers;worlds largestsubscription service Wide selection andconvenience DVD by mail andstreaming service Service realignmentannouncement Expanding into globalterritories 16. Blockbuster Began in 1985 selling video rentalsout of physical store location Strategies: 60-40 revenue sharing model with movie studios No initial waiting period Customized store shelves upon demographics Decline: $1.6 billion to a mere $300million in company value Netflix, Redbox, Apple TV, On-demand Cheaper, more convenient,technological advances to fitcustomer needs Dinosaur of home-movieindustry 17. Apple TV Sold in 2007 to enable streamedmedia driven from content online toplay on TV Access to iTunes, rent/purchase movies, TV shows, audio files, MobileME, Flickr, YouTube, and Netflix Strategies: Peer to peer digital media receiver Works in similar fashion as an iPod AirPlay allows home-sharing and streamlines to TV Growth: 1st to 2nd generation models Improved Processor Smaller Bo with same storage Additional application 18. Video On Demand A DSL service over InternetProtocol networks Digital subscription packagefrom service provider whichuses cable tv or satellite tobroadcast programs Spurred out of YouTubecraze Strategy: Convenience of instant play on preferred video content Enjoyable features such as pause, play, rewind, jump Growth: TIVO already implemented VOD deliverance throughmobile devices 19. The Future 20. Change in Trends Digital distribution rising Physical distribution dominant Quick change 21. Downloading Apple TV Increased convenience Netflix addition Amazon Instant Video Prime membership All methods 22. Netflix Netflix Streaming Physical disc Online/physical combination Cross-device service Xbox PlayStation DVD players 23. UltraViolet Digital Rights Locker Physical Digital Partners Necessary for growth Possibly Vudu 24. UltraViolet Advantages to Distributor Curb piracy Efficient distribution Effects Increased smartphones and tablets Potential for over-usage 25. Predictions Continued growth Apple TV Netflix UltraViolet Legal official Ease of cloud Familiarity of physical disc 26. Questions?