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The Future of Home Entertainment

The Future of Home Entertainment. Moderator: Steffen Bartschat SVP Engineering, Sonic Solutions & Co-chair, GABA Software IG sbartschat@comcast.net 05 November 2009. Our Panelists. Jeff Klugman - SVP/GM at TiVo.     Jim Taylor - SVP & Chief Technologist at Sonic Solutions. 

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The Future of Home Entertainment

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  1. The Future of Home Entertainment Moderator: Steffen Bartschat SVP Engineering, Sonic Solutions & Co-chair, GABA Software IG sbartschat@comcast.net 05 November 2009

  2. Our Panelists • Jeff Klugman - SVP/GM at TiVo.     • Jim Taylor - SVP & Chief Technologist at Sonic Solutions.  • Roland Vlaicu - Director of Technical Marketing, Dolby.    • Todd Collart - SVP New Media at Deluxe Digital Studios.   • Michael McGuire – VP Research at Gartner. • Jerry Pierce – CEO/Founder at AZEC, Inc, and former SVP Technology, Universal Pictures.

  3. Overview: Technology in Transition • High Definition TV • Blu-ray Disc • 3D • Set-top box / DVR • Smart TVs • Delivery • Casual Consumption & Device Integration • Media Server • Questions • Predictions

  4. High Definition TV • 80% own DVD player • 78% own cell phone • 71% own PC • 40% own video game system • 20% own home theatre system Source: CTAM

  5. Blu-Ray Source: FutureSource Consulting

  6. 3D • Cinema: 30 releases in 3D in 2009 • 3D produces 3x revenue of 2D • 3D TV programming “widely accessible” by 2011..(?) Graph Source: Quixel Research

  7. Set-top Box / DVR • Time Shift (DVR) • Place Shift (e.g. Slingbox) • The “Google of Television” – TiVo CEO Tom Rogers Graph Source: ZenithOptimedia/Nielsen

  8. DVRs Are Changing TV/Ad Viewing ViewersTimeshifting ViewersFastforwarding TiVo Inc. Proprietary Information 8

  9. Where are the commercials? Live Near Live (within 1 hour) 1-6 hour delay 4.6 hour – 2 week delay 10.0% 7.5% 5.0% 2.5% 0.0% Percentage of Viewers in Play Speed Time into Program (Ticks at 10 Minutes) Grey’s Anatomy – ‘Staring at the Sun’ TiVo Inc. Proprietary Information 9

  10. Smart TV • iPhone: 2B downloads, 100,000 apps! • “With iPhone everything changed, we think a similar thing could happen on TVs” – Eric Kim, SVP Intel Graph Source: Parks Associates

  11. “Sofa Factor” Source: The Nielsen Company

  12. Delivery • DVD-by-mail business will peak in 5-10 years – Reed Hastings, CEO Netflix • “The concept of a flat-rate infinitely expandable service is unachievable” – Dick Lynch, CTO Verizon Graph Source: Kaufman Bros., Zoomerang

  13. Device Integration – the Apple Factor • Apple TV – set top box - future DVR? • iTunes – content delivery vehicle & app store! • iPod, iPhone – casual portability “Apple could leverage its deep library of content with many network and cable channel content owners to provide unlimited access to a sub-library of its TV shows for a standard monthly fee” – Gene Munster, analyst Piper Jaffray $30-$40/month for iTunes vs. $85/month for Cable? Graph Source: Apple Inc.

  14. Missing in Action: Media Server • Remember 2007? • “As a software platform and an “always on” device in the home, Windows Home Server offers independent software vendors tremendous opportunities to build innovative products for the digital home. Microsoft anticipates that a wide range of third-party applications and tools will emerge for Windows Home Server, such as family schedule management, home automation systems, security solutions and more. “ – Microsoft, Jan 2007

  15. Questions?

  16. Predictions

  17. Time-Shifting is pervasive in DVR Homes and increases in Primetime About 30M DVR households in US today; +50 M in 3 years Total Live Time-shifted

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