P2P Media Distribution P2P eCommerce - MISRC |...

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Proprietary and confidential for Client/Partner. © 2005 INTENT MediaWorks, INC.. All rights reserved. All registered trademarks are the property of their respective owners. CONFIDENTIAL: INTENT MediaWorks, Inc. CONFIDENTIAL: INTENT MediaWorks, Inc. Carlson School of Management Carlson School of Management MIS Research Seminar MIS Research Seminar Minneapolis, MN Minneapolis, MN INTENT MediaWorks INTENT MediaWorks October 7th, 2005 October 7th, 2005 P2P eCommerce P2P eCommerce P2P P2P Media Distribution Media Distribution

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Page 1: P2P Media Distribution P2P eCommerce - MISRC | Homemisrc.umn.edu/seminars/slides/2005/10072005_Seminar_BW.pdf · 2013-01-14 · • 8.3 Million P2P consumers are online at any given

Proprietary and confidential for Client/Partner. © 2005 INTENT MediaWorks, INC.. All rights reserved. All registered trademarks are the property of their respective owners.

CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

Carlson School of Management Carlson School of Management MIS Research SeminarMIS Research Seminar

Minneapolis, MNMinneapolis, MN

INTENT MediaWorksINTENT MediaWorks

October 7th, 2005October 7th, 2005

P2P eCommerceP2P eCommerceP2P P2P

Media DistributionMedia Distribution

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BackgroundBackground

• Les Ottolenghi, CEO: co-founder of INTENT MediaWorks• CEO of AgentWare, Inc.: leading travel search technology• Vice President of Information Technology and Electronic Commerce for Carlson

Wagonlit Travel (developed network tying more than 5,000 travel agents directly to travel suppliers via the Internet

• Holiday Inn Worldwide (launch of the first Internet-based reservations system in the travel industry)

• 1998 Information Week nominated Ottolenghi for CIO of the Year• United Nations advisor ecommerce• Co-Author of eMarketing Book• Adjunct professor at Emory University teaching technology and business strategy; • Bachelor’s degree Duke University • M.B.A. Emory University's Goizueta School of Business• White House, U.S. Senate, FTC, U.S. Supreme Court

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State of the art for P2PState of the art for P2P……

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P2P state of the ArtP2P state of the Art…….Piracy!!!.Piracy!!!

• Napster

• RIAA Suing Grandma’s & Teenagers

• MGM v. Grokster

• Cease & Desist

• It’s Much More!

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Trends & PredictionsTrends & Predictions

• “The Telephone has too many short comings to be seriously considered as a means of communication. The device is inherently of no value to us.”

◊ Western Union --- 1876

• “Who the hell wants actors to talk?”◊ H.M. Warner Brothers, 1927

• “Computers in the future may weigh no more than 1.5 tons.”◊ Popular Mechanics, 1949

• “640K ought to be enough for anybody.”◊ Bill Gates, 1981

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Trend WatchingTrend Watching……

• Information Rules

• Tech Trends

• Quadriviums

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Technology Business RulesTechnology Business Rules

• Information Rules· Disruptions· Adoption Curves· Look Up & Discovery· Trust Brokering· Network Effects· Watch the Military: Sensor overload· Watch the Gaming World

• Quadriviums· Hardware· Software· Media/Information· Connectivity

• Tech Trends· Broadband Wireless & Wifi

· Syndication

· Web Services· WiFi,

· Secure Distributed Media

· Behavioral Targeting

· Broadband Applications

· Media Rich Applications

· Wikis

· Wireless Broadband

· Social Nets.

· Swarming

· P2P· Skype & VOIP

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No predictionsNo predictions……just trendsjust trends……

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New Patterns of Media Production & ConsumptionNew Patterns of Media Production & Consumption

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P2P Consumer TrendsP2P Consumer Trends

100,000•Blubster

100,000•Shareazaa

250,000•TrustyFiles

900,000•iMesh

1 Million•BearShare

1 to 2 million•Limewire

1 to 2 Million•Morpheus/Grokster

2 to 3 Million•Kazaa/Altnet

2 to 4 Million•eDonkey

•Estimated Avg # of consumers at any time•P2P Network

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LetLet’’s just be s just be ““trendstrends”…”…P2P Networks StatisticsP2P Networks Statistics

•• There are an estimated 250 Million P2P users worldwide There are an estimated 250 Million P2P users worldwide

•• There are over 60 Million consumers who trade files via P2P montThere are over 60 Million consumers who trade files via P2P monthly hly

•• The number of consumers on P2P networks doubled every year for tThe number of consumers on P2P networks doubled every year for the he past 3 years past 3 years

•• P2P is estimated to double for the next 5 years with the integraP2P is estimated to double for the next 5 years with the integration of tion of digital video systems digital video systems

•• 8.3 Million P2P consumers are online at any given moment 8.3 Million P2P consumers are online at any given moment

•• There is an estimated 10 Million Gigabytes of Data on the P2P neThere is an estimated 10 Million Gigabytes of Data on the P2P networks atworks a

•• About twoAbout two--thirds (66%) of all searches are by media typethirds (66%) of all searches are by media type

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WhatWhat’’s going on?s going on?

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Not so Subtle differencesNot so Subtle differences

• Client Server = WEB • Distributed = P2P

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What is P2P?

•• INTERNET BasedINTERNET Based

•• NOT the WEBNOT the WEB·· A peerA peer--toto--peer (P2P) network is basically a network, the power of which lipeer (P2P) network is basically a network, the power of which lies in es in

the computers that are connected to it rather than in a central the computers that are connected to it rather than in a central server or anything server or anything of the kind.of the kind.

•• Files can be transferred between computers using various Files can be transferred between computers using various techniques,techniques, or or protocolsprotocols·· BitTorrentBitTorrent·· GnuetllaGnuetlla·· Gnutella2Gnutella2·· FastrackFastrack·· OvernetOvernet

•• Decentralized, or Distributed ComputingDecentralized, or Distributed Computing

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TechTech--TalkTalk

• Distributed system architecture· Decentralized control

◊ NOT A centralized system – Client/Server Architecture – Master/Slave models– Dumb terminals / Active broadcaster

• Typically many nodes, & heterogeneous• Takes advantage of distributed, shared resources (bandwidth, CPU, storage) • Fault-tolerant, self-organizing• Operates in dynamic environment, frequent join and leave is the norm

• Scalable - avoids bottlenecks!

• Controlled: local information storage

• Anonymous & Replicable

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WhereWhere diddid P2P come P2P come fromfrom??

• 1969 - ARPANET· First killer applications like FTP and Telnet were Client/server

• 1979 – USENET & GOPHER· UUCP, NNTP, Gopher· Decentralized control, avoid network flood, path header

• 1994 – Commercial Web

• 1999 - 1st Generation Commercial P2P: Napster. Created by Shawn Fanning in 1999. Napster, unlike modern P2P, used a central server. Because people used to share copyrighted material (obviously violating the copyright laws), Napster got into legal trouble. Finally, it was shut down in 2001. However, the idea remained.

2002 - The 2nd generation of P2P was decentralized --- no central server, the computers connect directly and therefore there is nothing to be shut down even in case copyrighted material was shared: eDonkey, Kazaa, iMesh, Shareaza and the like are 2nd generation p2p clients.

• 2005 – MGM v. Grokster

• 2006 - The 3rd generation is not yet well settled.

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WhatWhat’’s What with architectures & techniquess What with architectures & techniques

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• Centralized (Napster)

• Decentralized

· Unstructured (Gnutella)

· Structured (Chord)

• Hierarchical (MBone)

• Hybrid (EDonkey)

• Google is hiring P2P researchershttp://www.broom.org/epic/ YellowBrix

TechTech--Talk: P2P Architectural ModelsTalk: P2P Architectural Models

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• Workstations have considerable computing power (Moore's Law)

• Workstations provide huge data storage capacity

• The available bandwith is increasing steadily

• Edge computing: benefit from the power at the edges of Internet

• Decentralized applications can scale better (millions of users)

• Nirvana: Low cost multiuser applications with endless resources

• According to several internetservice providers, more than50% of Internet traffic is due toP2P applications, sometimeseven as much as 75%.

• It is a paradigm shift fromcoordination to cooperation, from centralization todecentralization, and fromcontrol to incentives

So why is P2P Important?So why is P2P Important?

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• Organizational shift from hierarchical / centralized models to decentralized / network models

• “The Rise of the Network Society”, Manuel Castells

• P2P can enable the construction of worldwide communities

• Example 1. Teaching: classical lecture/exam model Vs collaborative learning

• Example 2. Mass media: big and few broadcasters (TV, radio) Vs public user publishing (Web blogs, net radio, net TV)

• Example 3. Medical records sharing: secure, private and instantaneous

• P2P technologies will enable a next generation of innovative killer applications.

• P2P and collaboration technologies will promote the creation of worldwide user communities (social networks)

• P2P will permit low cost sophisticated content publishing and distribution tools (net radio, net tv)

Why is P2P important to Society?Why is P2P important to Society?

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• P2P killer applications:· USENET (NNTP)

· Instant Messaging (?)

· Napster, Gnutella, eMule

· SETI@HOME, LHC@home

· Groove (Collaboration), Ray Ozzie

• Buzzword: Grid Computing· OGSA(Open Grid Services

Architecture)

· Like P2P, it aims to leverage peer computing resources

· Widespread acceptance in many companies

• Problems !· Piracy· P2P Worms and viruses

• Good examples· Skype !· BitTorrent· Peercast (P2P Radio)· Share It! by Bringing P2P into the TV-

Domain

P2P ExamplesP2P Examples

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Where is P2P going ?Where is P2P going ?

Development Stage Period Primary Use

•• Internet 1.0: 1969Internet 1.0: 1969--1979 Military1979 Military

•• Internet 2.0: Internet 2.0: 19801980--1993 Science, R&D1993 Science, R&D

•• Internet 3.0: 1994Internet 3.0: 1994--2000 WEB 1.02000 WEB 1.0

•• Internet 4.0: 2002Internet 4.0: 2002--2010 WEB 2.0 Dist. Comp.2010 WEB 2.0 Dist. Comp.

•• Internet 5.0: 2010+ Internet 5.0: 2010+ Integrated, Seamless Integrated, Seamless

ComputingComputing

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P2P Commercialization & UseP2P Commercialization & Use

• B2B - Private exchanges for:◊ Medical records,

◊ Military manuals,

◊ training manuals,

◊ Collaborative computing,

◊ Grids computing

◊ Advertising

◊ Talent identification,

◊ Professional networks,

◊ Sub-Pub Media

• B2C - Private & Open exchanges for:

◊ Entertainment Media ◊ Travel◊ Professional job search◊ Marketplaces

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Technology Business RulesTechnology Business Rules

• Information Rules· Disruptions· Adoption Curves· Look Up & Discovery· Trust Brokering· Network Effects· Watch the Military: Sensor overload· Watch the Gaming World

• Quadriviums· Hardware· Software· Media/Information· Connectivity

• Tech Trends· Broadband Wireless & Wifi

· Syndication

· Web Services· WiFi,

· Secure Distributed Media

· Behavioral Targeting

· Broadband Applications

· Media Rich Applications

· Wikis

· Wireless Broadband

· Social Nets.

· Swarming

· P2P· Skype & VOIP

Page 25: P2P Media Distribution P2P eCommerce - MISRC | Homemisrc.umn.edu/seminars/slides/2005/10072005_Seminar_BW.pdf · 2013-01-14 · • 8.3 Million P2P consumers are online at any given

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P2P Marketplace: Technology MapP2P Marketplace: Technology Map

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CASE STUDY:CASE STUDY:

The Entertainment Industry & P2PThe Entertainment Industry & P2P

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Commercial Disruption of the Entertainment Industry by P2PCommercial Disruption of the Entertainment Industry by P2P

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Commercial Disruption of the Entertainment Industry by P2PCommercial Disruption of the Entertainment Industry by P2P

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Commercial Disruption of the Entertainment Industry by P2PCommercial Disruption of the Entertainment Industry by P2P

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Industry Actions & ReactionsIndustry Actions & Reactions

• 1976 Copyright Act

• Sony vs. Universal Studios (1984) – BETAMAX

• Digital Millennium Act 1998· Anticircumvention

· Online Copyright Infringement Liability Act

• Napster

• RIAA & MPAA

• US Congress

• US FTC

• Whitehouse

• MGM v Grokster: 9th Circuit – Supreme Court (Inducement)

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Industry IssuesIndustry Issues

• Protection of Rights via Protection of Content

• Security

• Licensing

· Alignment of economics◊ Channel Conflict

◊ Transferability

◊ Mobility

· Mark Cuban

· iTunes Pricing v. Industry

· Hurdle Rate for Videos

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The Current Situation The Current Situation ––Music Sales Are In DeclineMusic Sales Are In Decline• According to 2003 RIAA data, US retail music sales were about $990

million per month.

• The industry's retail sales are forecast to continue to decline at a compound annual rate of 2.1% over the next 4 years.

…should be growing with GDP (+2.7%)

…instead will continue to decline if no solution is implemented (-2.1%)

Music Industry Sales…

$

"The root cause for this drastic decline in record sales is the astronomical rate of music piracy.… Computer users illegally download more than 2.6 billion copyrighted files

(mostly recordings) every month. At any given moment, well over five million users are online offering well over 1 billion files for copying through various P2P networks.”

Mitch Bainwol, RIAA CEO

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The Music IndustryThe Music Industry’’s Response v. P2Ps Response v. P2P

• The music industry is resisting P2P while encouraging online content in a limited way· Licensing content to non-P2P Internet sites for limited online distribution

· Suing P2P software companies to slow technology proliferation

· Lobbying Congress to curtail P2P expansion in various ways

· Suing consumers to drive them away from P2P usage

“If the music industry pursued a similar strategy in the offline world, the consequences would be devastating…

If it refused to sell music through large chains like Wal-Mart, Target, and Best Buy –music sales would be crippled.” - DCIA

• But…· The major labels have not tried legitimate online sales of music in a domain that already

has over sixty million users in search of content – the existing P2P marketplace.

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P2P Media Market MilestonesP2P Media Market Milestones

• MGM v. Grokster, 6/27/05 signaled beginning of commercial services· Illegal file trading networks dominated· Only legal commercial services

◊ Open P2P: INTENT MediaWorks◊ Closed P2P: INTENT MediaWorks,

PeerImpact, Rukkus

• Shutdown of Illegal Open P2Ps• Licensing of Major Label & Studio

Music & Film: 9/1/05

• Skype (P2P) sells for $2Billion• Institutional Investment: 8/05

· INTENT MediaWorks· BitTorrent· Others

• Social Networking meets Electronic Commerce·· PeerPeer--toto--peer traffic accounts for 50 peer traffic accounts for 50

to 70 percent of the data traffic on to 70 percent of the data traffic on ISP networks ISP networks -- CNET News August CNET News August 30, 200530, 2005

• P2P Consumer Market Size·· 60MM Users North America60MM Users North America

·· 250MM Users Worldwide250MM Users Worldwide

·· 350MM P2P clients downloaded350MM P2P clients downloaded

• 20MM simultaneous users/second

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 34 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

Case Study: INTENT MediaWorksCase Study: INTENT MediaWorksA P2P Market Based SolutionA P2P Market Based Solution

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 35 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

P2P & INTENT ExplainedP2P & INTENT Explained

INTENT MediaWorks INTENT MediaWorks P2P ExplainedP2P Explained

ONLINE EXPERIENCE ONLINE EXPERIENCE

Experience P2P Experience P2P -- DemoDemo P2P DemographicsP2P Demographics

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 36 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

Video INSERTVideo INSERT

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 37 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

Demo Links to INTENT Demo Links to INTENT

• http://www.intentmediaworks.com/Sponsorships/SurpemeCourt.htm

• Supreme Court Links

• http://www.intentmediaworks.com/Distribution/P2P%20Explained2.swf

• Distribution Explained

• http://www.intentmediaworks.com/Technology/edonkey.htm

• P2P explained

• http://www.intentmediaworks.com/Distribution/edonkey.swf

• IMW Search Optimzation explained

• http://www.intentmediaworks.com/mysite/Videos/joanjett.html

• AD Supported Example in SWF

• http://www.intentmediaworks.com/mysite/Videos/paypal.html

• Payfor example in SWF

Page 39: P2P Media Distribution P2P eCommerce - MISRC | Homemisrc.umn.edu/seminars/slides/2005/10072005_Seminar_BW.pdf · 2013-01-14 · • 8.3 Million P2P consumers are online at any given

Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 38 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

What I doWhat I do……& the world of P2P& the world of P2P……

• Animation Insert

Page 40: P2P Media Distribution P2P eCommerce - MISRC | Homemisrc.umn.edu/seminars/slides/2005/10072005_Seminar_BW.pdf · 2013-01-14 · • 8.3 Million P2P consumers are online at any given

Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 39 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

Flash Presentation INSERT Flash Presentation INSERT

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 40 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

P2P ExperienceP2P Experience

Page 42: P2P Media Distribution P2P eCommerce - MISRC | Homemisrc.umn.edu/seminars/slides/2005/10072005_Seminar_BW.pdf · 2013-01-14 · • 8.3 Million P2P consumers are online at any given

Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 41 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

P2P Experience with INTENTP2P Experience with INTENT

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 42 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

How P2P Works for Consumers How P2P Works for Consumers –– Steps/DemoSteps/Demo

Step1: Search using P2P SoftwareStep1: Search using P2P Software Demo Demo –– YOU YOU MUST BE ONLINEMUST BE ONLINE

Page 44: P2P Media Distribution P2P eCommerce - MISRC | Homemisrc.umn.edu/seminars/slides/2005/10072005_Seminar_BW.pdf · 2013-01-14 · • 8.3 Million P2P consumers are online at any given

Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 43 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

Step 2: Song/Video SelectionStep 2: Song/Video Selection

How P2P Works How P2P Works –– Steps/DemoSteps/Demo

Page 45: P2P Media Distribution P2P eCommerce - MISRC | Homemisrc.umn.edu/seminars/slides/2005/10072005_Seminar_BW.pdf · 2013-01-14 · • 8.3 Million P2P consumers are online at any given

Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 44 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

How P2P Works How P2P Works –– Steps/DemoSteps/Demo

Step 3: Preview & DownloadStep 3: Preview & Download

Page 46: P2P Media Distribution P2P eCommerce - MISRC | Homemisrc.umn.edu/seminars/slides/2005/10072005_Seminar_BW.pdf · 2013-01-14 · • 8.3 Million P2P consumers are online at any given

Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 45 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

How P2P Works How P2P Works –– Steps/DemoSteps/Demo

Step 4: Accept License Terms & DownloadStep 4: Accept License Terms & Download

Page 47: P2P Media Distribution P2P eCommerce - MISRC | Homemisrc.umn.edu/seminars/slides/2005/10072005_Seminar_BW.pdf · 2013-01-14 · • 8.3 Million P2P consumers are online at any given

Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 46 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

How P2P Works How P2P Works –– Steps/DemoSteps/Demo

Step 5: Play MediaStep 5: Play Media

Page 48: P2P Media Distribution P2P eCommerce - MISRC | Homemisrc.umn.edu/seminars/slides/2005/10072005_Seminar_BW.pdf · 2013-01-14 · • 8.3 Million P2P consumers are online at any given

Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 47 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

INTENTINTENT’’ss MissionMission

1.1. Create the technologies & platform that enable new Digital Create the technologies & platform that enable new Digital Distribution of MediaDistribution of Media

2.2. Help marketers tap into and profit from advertising to the vast Help marketers tap into and profit from advertising to the vast consumer community online in the fileconsumer community online in the file--sharing/P2P worldsharing/P2P world

3.3. Integrate the viral power and authentic nature of peerIntegrate the viral power and authentic nature of peer--toto--peer filepeer file--sharing with esharing with e--commerce and advanced marketing technologies to commerce and advanced marketing technologies to generate brand awareness, drive web traffic, and engage generate brand awareness, drive web traffic, and engage consumers in acquisition oriented marketing programsconsumers in acquisition oriented marketing programs

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 48 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

Success Success

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 49 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

Background to the missionBackground to the mission

•• Digital Commerce: Distribution Technology LeaderDigital Commerce: Distribution Technology Leader◊◊ AgentWareAgentWare, Inc.: , Inc.: www.agentware.netwww.agentware.net: Travel : Travel MetaSearchMetaSearch◊◊ CareerfishCareerfish, Inc.: , Inc.: www.careerfish.comwww.careerfish.com: Job Search & Placement: Job Search & Placement◊◊ INTENT INTENT MediaWorks.comMediaWorks.com: Music, Film & Video via P2P: Music, Film & Video via P2P

•• Recognized Leader in Legitimate P2P Media Distribution & UsesRecognized Leader in Legitimate P2P Media Distribution & Uses◊◊ U.S. U.S. Senate,FTC,FBISenate,FTC,FBI, The White House, The White House◊◊ U.S. Supreme Court: MGM v. U.S. Supreme Court: MGM v. GroksterGrokster 20052005

•• P2P Commerce Platform: Media & ApplicationsP2P Commerce Platform: Media & Applications◊◊ Open P2P Media Distribution & Ad supported SalesOpen P2P Media Distribution & Ad supported Sales◊◊ Closed, Private Label P2P NetworksClosed, Private Label P2P Networks◊◊ Web to P2P Cross SellingWeb to P2P Cross Selling

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 50 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

Take a breakTake a break…….My Favorite.My Favorite……

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 51 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

INTENT MediaWorks: 2003INTENT MediaWorks: 2003--20052005

•• First & Largest Distributor of First & Largest Distributor of Licensed Media via Open P2PLicensed Media via Open P2P

·· Only endOnly end--toto--end P2P Media end P2P Media Distribution TechnologyDistribution Technology

·· Mass Encoding SystemMass Encoding System·· Multiplatform DRM DeliveryMultiplatform DRM Delivery·· AD supported, Pay Per Download & AD supported, Pay Per Download &

Pay Per View Media EnginePay Per View Media Engine·· Search Optimization via P2P all Search Optimization via P2P all

major Protocolsmajor Protocols·· Agreement for content place within Agreement for content place within

every major P2P software every major P2P software applicationapplication◊◊ OpenOpen◊◊ ClosedClosed

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 52 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

How does DRM work?How does DRM work?

DRM perpetually tracks content/media as it is passed securely from person to person, with only authorized individuals being able to access the protected content.

-- Who, Why, Where, When, How Much? Is all included in DRM

-- Credit/Debit/Phone card payments

Page 54: P2P Media Distribution P2P eCommerce - MISRC | Homemisrc.umn.edu/seminars/slides/2005/10072005_Seminar_BW.pdf · 2013-01-14 · • 8.3 Million P2P consumers are online at any given

Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 53 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

INSERT DRM VideoINSERT DRM Video

Page 55: P2P Media Distribution P2P eCommerce - MISRC | Homemisrc.umn.edu/seminars/slides/2005/10072005_Seminar_BW.pdf · 2013-01-14 · • 8.3 Million P2P consumers are online at any given

Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 54 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

How INTENT works: the User Experience How INTENT works: the User Experience ––FREE or Pay per Download ContentFREE or Pay per Download Content

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 55 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

Consumer Experience Consumer Experience -- Rich Media & SearchRich Media & Search

Page 57: P2P Media Distribution P2P eCommerce - MISRC | Homemisrc.umn.edu/seminars/slides/2005/10072005_Seminar_BW.pdf · 2013-01-14 · • 8.3 Million P2P consumers are online at any given

Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 56 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

INTENT Distribution ReachINTENT Distribution Reach

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 57 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

Content Owners PerspectiveContent Owners Perspective

•• MultiMulti--Channel: P2P, WEB, Channel: P2P, WEB, Wireless, Satellite, PCWireless, Satellite, PC--TV TV ((PVRs/DVRsPVRs/DVRs))

•• NonNon--exclusive distribution exclusive distribution •• Digital Rights Management, Digital Rights Management,

(DRM), copy protection (DRM), copy protection software used to prevent software used to prevent copying and sharing content copying and sharing content without authorization without authorization

•• INTENT reviews the content to INTENT reviews the content to make certain it is not illicit, make certain it is not illicit, unauthorized, sexually explicit unauthorized, sexually explicit or unacceptable for or unacceptable for distribution. distribution.

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 58 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

P2P Distribution ProcessP2P Distribution Process

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 59 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

INTENT Advertising & Marketing ProgramsINTENT Advertising & Marketing Programs

•• Measurable Measurable -- TrackableTrackable MarketingMarketing

•• AwarenessAwareness:: INTENT enables an Advertiser to generate effective awareness INTENT enables an Advertiser to generate effective awareness

at the lowest cost, for the most qualified and largest consumer at the lowest cost, for the most qualified and largest consumer marketing channel in marketing channel in the worldthe world

•• TrafficTraffic

•• AcquisitionAcquisition

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 60 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

AWARENESS Program AWARENESS Program -- exampleexample

P2P Software AD P2P Software AD PlacementPlacement

Info Page AD Info Page AD PlacementPlacement

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 61 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

TRAFFIC Program TRAFFIC Program -- exampleexample

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 62 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

ACQUISITION Program ACQUISITION Program –– exampleexample

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 63 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

Enabling Technology PlatformEnabling Technology Platform

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 64 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

INTENT MediaWorks INTENT MediaWorks -- PlatformPlatform

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 65 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

Ad centricAd centric

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 66 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

MultiMulti--platformplatform

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 67 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

IntegratedIntegrated

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 68 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

Integrated to P2P: INTENT & Integrated to P2P: INTENT & KaZaAKaZaA

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 69 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

eDonkeyeDonkey –– INTENT Distribution PartnerINTENT Distribution Partner

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 70 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

LimeWireLimeWire -- INTENT Distribution PartnerINTENT Distribution Partner

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 71 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

BearShareBearShare -- INTENT Distribution PartnerINTENT Distribution Partner

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 72 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

TrustyFilesTrustyFiles -- INTENT Distribution PartnerINTENT Distribution Partner

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 73 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

iPeeriPeer: INTENT : INTENT Private P2P NetworkPrivate P2P Network

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 74 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

iPeeriPeer: : filter out unauthorized content through P2P filter out unauthorized content through P2P software from INTENT MediaWorks, LLCsoftware from INTENT MediaWorks, LLC

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 75 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

SMS Networks SMS Networks -- INTENT Distribution PartnerINTENT Distribution Partner

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 76 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

MyPeer™ has an all-in-one solution, combining a full selection of interactive services with DRM driven download features, accessed through a simple easy interface, creating an enjoyable consumer experience. Available in four languages.

MyPeer™

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Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners.

Page 77 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.

There is also a simple integration with CD/DVD Players and DVRs for consumers who wish to play authorized content on additional media devices.

The Ultimate Digital SystemThe Ultimate Digital System

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Viral Marketing EffectViral Marketing Effect

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ReportingReporting

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Travel MetaTravel Meta--Search Screen ShotSearch Screen Shot

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Market StrategyMarket Strategy

SuppliersStudios, Labels, Indies, Artists

DistributorsPhysical Media

Virtual:

RetailersMusic & Video Stores, Online: ex. iTunes, Kazaa

ConsumersOffline & Online: Web, P2P, RSS, PARTICPATORY Networks

ServicesServices

ValuesValues

OpportunityOpportunity

New economics, new licensing, 2 way distribution

Lower costs, control of channel, curb piracy, consumer direct

Encoding, Distribution, Protection, Digital Ad model

New Ad Model, New Channel

Change Behavior, Scale shift of Ad $s

Media-AD “married” in distribution

Music, Films, Video, Games, Software, Music, Films, Video, Games, Software, eBookseBooks, Group information, Group information

Digital Download Systems

Switch to profitable model

Own all licensing for new model

Offer FREE media that is legal, Sharing behavior tools

Resolve Piracy v. legal

Own the consumer behavior

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B2C Commercial P2PB2C Commercial P2P

BitTorrent, Gnutella, Proprietary

BitTorrent, Gnutella, Gnutella2, Fasttrack, Overnet

Communications Methods/Protocols(Point to Point, branch & Leaf,

Swarming)

Distribution

Peerimpact, Rukkus, iMesh, Mashboxx

Kazaa, eDonkey, Limewire,”Darknets”, etc.

P2P Applications

Entertainment

Social, Business, Government, Technical

Entertainment

Social

Content/Media

ClosedOpen

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Revenue SourcesRevenue Sources

• Three Distribution Channels1. Open P2P Networks

2. Closed P2P Networks

3. P2P – WEB Cross Selling

• Media· Indie Licensing & Resale

· Major Label & Studio Resale

· AD Supported, Pay-Per-Download/Pay-Per-View

• Applications· P2P eCommerce: Travel, Tickets, etc.

• Licensing: Distribution Technology (Palladium™) & Closed P2P

CLOSED P2PCLOSED P2P

WEB WEB Cross OverCross Over

OPEN P2POPEN P2P

Competitive Competitive AdvantageAdvantage

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Market FocusMarket Focus

• Media Distribution & P2PApplications: Ads, Transactions, Licensing, Subscriptions

• Full Embedded Ecommerce

• P2P Commerce Platform

2005-2007

2008-2010

2011-2015

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P2P Marketplace: Technology MapP2P Marketplace: Technology Map

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Links to INTENT Links to INTENT

• http://www.intentmediaworks.com/Sponsorships/SurpemeCourt.htm• Supreme Court Links• http://www.intentmediaworks.com/Technology/INTENT%20MediaWorks%20Technical%20Whitepaper.pdf• INTENT Media Works WhitePaper• http://www.intentmediaworks.com/Technology/Palladiumshow_files/frame.htm• Palladium Explained• http://www.intentmediaworks.com/Distribution/P2P%20Explained2.swf• Distribution Explained• http://www.intentmediaworks.com/Technology/edonkey.htm• P2P explained• http://www.intentmediaworks.com/Distribution/edonkey.swf• IMW Search Optimzation explained• http://www.intentmediaworks.com/SuccessStories/casestudies/casestudymh.htm• Music Case Studies • http://www.intentmediaworks.com/SuccessStories/casestudies/casestudyiu.htm• Video Case Study • http://www.intentmediaworks.com/mysite/Videos/joanjett.html• AD Supported Example in SWF• http://www.intentmediaworks.com/mysite/Videos/paypal.html• Payfor example in SWF

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What, Why & HowWhat, Why & How……come? come?

Predicting TrendsPredicting Trends……

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Technology Business RulesTechnology Business Rules

• Information Rules· Disruptions· Adoption Curves· Look Up & Discovery· Trust Brokering· Network Effects· Watch the Military: Sensor

overload· Watch the Gaming World

• Quadriviums· Hardware· Software· Media/Information· Connectivity

• Tech Trends· Broadband Wireless & Wifi

· Syndication

· Web Services· WiFi,

· Secure Distributed Media

· Behavioral Targeting

· Broadband Applications

· Media Rich Applications

· Wikis

· Wireless Broadband

· Social Nets.

· Swarming

· P2P· Skype & VOIP

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DonDon’’t Sneak Offt Sneak Off……no secretsno secrets……

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Technology Business RulesTechnology Business Rules

• Information Rules· Disruptions· Adoption Curves· Look Up & Discovery· Trust Brokering· Network Effects· Watch the Military: Sensor overload· Watch the Gaming World

• Quadriviums· Hardware· Software· Media/Information· Connectivity

• Tech Trends· Broadband Wireless & Wifi

· Syndication

· Web Services· WiFi,

· Secure Distributed Media

· Behavioral Targeting

· Broadband Applications

· Media Rich Applications

· Wikis

· Wireless Broadband

· Social Nets.

· Swarming

· P2P· Skype & VOIP

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Future TrendsFuture Trends

Nameless

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Suggested Readings & ReferencesSuggested Readings & References

• www.dcia.info

• http://www.eff.org/

• http://openp2p.com/

• Provided to the School are a set of research papers and presentations for download. The School will inform you of where these are posted.

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Carlson School of Management Carlson School of Management MIS Research SeminarMIS Research Seminar

Minneapolis, MNMinneapolis, MN

INTENT MediaWorksINTENT MediaWorks

October 7th, 2005October 7th, 2005

P2P eCommerceP2P eCommerceP2P P2P

Media DistributionMedia Distribution