*unlimited power andtotal control from the next generation of content networks

Interoute The Media Network*

Oisin Lunny - 31/03/08

Global Product ManagerOnline Distribution & Media Services

Interoute

oisin.lunny@interoute.com

Interoute, Europe’s biggest Next Generation Network...

...which we leverage for Global content delivery services.

Our network connects to media companies, mobile operators and ISPs. Media clients get the advantages of our connections.

Converged Network Solution

Interoute’s Next Generation Network is a uniquely converged solution.

Major global clients trust us to deliver 24/7/365 and only settle for the best quality.

Our clients include:

• Bulldog

• Akamai

• Tiscali

• Vodafone

• EMI (18TB per month)

• Universal Music Group

• Warners

• EMAP

We are trusted by over 14,000 customers including:

Interoute ExtraContent Delivery Network (CDN)No need to wwwait - live in seconds

Interoute’s CDN product family

Media ManagerOn Demand Streaming - Audio / VideoPodcasting / listen again / Pay Per View

Media Live Stream 24/7 or Single Live Event streamingGeo locking + advertising

Share Market leading security solution for musicWatermarking + marketing + tracking

Interoute Express Fast method to deliver filesReduces strain on email systems

My past in music!

What I do these days for kicks...

I used Apple technology as soon as I could afford to, since then it’s been at the heart of what I do creatively. Their technology gets better and cheaper.

Apple has always offered creativity anytime anywhere

...you can even write music for TV while commuting.

Confessions of a Musically Obsessed Geek...

So...I technologyI “content”I Apple technology

CV so far:Music business for 18 yearsDigital content 12 yearsNetworks 9 yearsWeb development 8 yearsContent aggregation 6 yearsInteroute over 3 years

“If the music business is a corpse, lets put it in the ground and grow interesting things from it” Peter Gabriel, 2008

As one music and technology expert put it:

interesting things...

Advertising - is rapidly moving online

According to the EU, advertising revenueswill be mostly digital in two years:

“From an estimated €849m revenues in 2005, we expect newspaper and magazine publishers revenues to amount to €2bn in 2010,

almost exclusively from online and mobile advertising.”

Blyk - an interesting new model:

SIM cardadvertising opt-infree calls and SMS creative advertising

extends the model targeted delivery

*(TVs Paradigm Shift - Tejpaul Bhatia)

Consumers

Devices

Operators

Advertisers

Programmers

Consumers

Devices

Operators

Advertisers

Programmers

Schedules, Linear, Limited Choice

TV, VCR

Free broadcast, Pay Cable and Satellite

TV, Print, Radio, Public Space

Broadcast Networks, Cable Networks

Time/Place Shifting On Demand, Infinite Choice, Long Tail

HDTV, DVD, STB, DVR, Slingbox, PC, XBox, iPod, Mobile, PSP

Broadband, Cable, Satellite, Telco, IPTV, DSL, Mobile etc

TV, Print, Radio, Public Space, Online, 360 Campaigns, Branded Content etc

Broadcast and Cable Networks, Google, YouTube, MySpace, Blyk, Microsoft, Apple, Users, Operators, Carriers, Aggregators, Websites

OLD NEW

The Changing Media Climate

Seth Godin’s Changing Music Business Climate

“The internet is the new radio.

Now you have infinite air time.... the ability to get any song you want in

front of the people who want to hear it with huge reach and no barriers. What

matters isn’t how many, it’s who.”

Seth Godin, 2008

Apple have consistently made “interesting things” from the changing music business, including THE breakthrough of iTunes and the iTMS:

Apple’s content model established with iTunes then expanded to cover movies and TV content , including hardware support with the Apple TV.

Now the ultimate converged content device, the iPhone

Apple is “likely to sell 45 million iPhones by 2009”.

The iPhone is driving innovation in mobile content:

"Music has been the first 'killer app' for the operators to drive the consumption of premium content on the handset." (MMI, March 08)“Freemium” access to iTunes music library, like Nokia’s Comes With Music but with lower cuts for record labels (FT, March 08)Superior UI drives consumer uptake of advanced content apps

M:Metrics on the iPhone: 50% accessed social networking site (average 4%)30% iPhone users watch mobile TV / Video (average 4.6%)30.4% YouTube (average 1%)74% listen to mobile music (flat rate data charges a driver)

However... Olista research states that (across all devices): 85% of mobile TV users give up the service after 1st viewing

Other handsets in development include:

Samsung “Anycall Haptic”Thinner than iPhone, large touchscreen display with haptic feedback - analogue style vibrations, feedback built in to the phone.

LG Electronics LG-SH240Silicon to give a “human” feel to the interface.

Motorola TV DH02Five minute memory buffer for Live and Time Shifted TV viewing.

The big questions remain:“Why is the design process that leads to simple and highly effective products like the iPhone, rarely understood or well integrated into mobile development? How and why the design of the iPhone itself is successful? What we can learn from Apple?”

Future iPhone / laptop hybrids?09.07 Apple applied to WIPO to patent a track pad that is translucent, touch sensitive on both sides and can be used as a displayeg: two-part, fold-up mobile phone:

•Open, one section would act as a track pad device with optional numeric keypad display.

•Closed, the input device would act as a translucent touch screen, displaying information from the screen underneath.

•A user could, for example, select an entry from phone's address book before opening the phone, which would initiate the call.

•The technology could turn a closed laptop into a Tablet PC-style device with a touch-sensitive screen.

•When the laptop is opened, the touch screen could function as a normal keyboard.

iPhone applications

The SDK was well received by the developer community!

Over 100,000 downloads in the first 4 days

There are some limitations....

•3rd party apps are prohibited from “running in the background”(this can make sense in terms of stability, but a difficult limitation)

•SDK beta does not allow access to iTunes functionality(this makes sense in terms of Apples strategic alignment to music)

•No Flash support as yet (limiting services like Pandora)

Who is developing apps already?Present at the launch:Games:

•Sega (Super Monkey Ball)

•EA (Spore) Applications:

•Genentech (internal enterprise application)

•epocrates (dosing and medication guidelines for doctors)

•SalesForce (sales/team management)

•Gameloft (developer of previous gen ipod games)

• ID software (Doom)Other interesting sites:

•BBC iPlayer / EMI Sigur Ros DVD microsite

Example apps:

•Flytunes: radio broadcasts

•Rovr: social networking tool

Location based: Geopedia

•Takes your iPhone's positional data and pulls up Wikipedia articles relevant to your current position in an iPhone menu.

•“Like having your very own Wikipedia tour-guide following you around and clueing you in to interesting stuff in your area”

•Uses GPS and cell triangulation which are now supported by iPhones, a GREAT idea - imagine this on Facebook or dating websites.

IM+ for Skype

• IM+ for Skype is a web service that enables voice and text communication with other Skype users.

•Provides cost-effective calling to landlines and mobiles.

•Pure SkypeOut quality with no extra voice delays.

Mobiola

•Video Converter and a Remote File manager for iPhone/iPod Touch.

•Convert your favourite YouTube, DVD, WMV, AVI etc. videos.

• It converts video files to the format playable by your iPhone / iPod Touch.

Dailymotion mobile uploader

DailymotioniPhoneportal

Tittr

•Quick and easy way to get pictures from your iPhone to the web.

•Micro-blogging newcomer Tittr combines the ease and immediacy of Twitter with the public image sharing of Flickr to deliver a truly addictive on-line experience.

•Free service that allows users to send pictures to the Tittr website from their phone via email.

•Although primarily aimed at iPhone users, many major brands are supported.

MoboVivo iPhone TV

•TV downloads for iPhone and iPod Touch.

•Use Buy and Sync to purchase and download.

MobileScrobbler

•Last.fm client for Apple iPhone and iPod Touch

•Requirements

•A “jailbroken” iPhone or iPod Touch

•Firmware 1.1.1 or newer

•A last.fm account

BIG NEWS.... Google API for iPhone released March 08Google has released a set of APIs in their GData Objective-C Client Library that will allow iPhone developers to use Google APIs alongside Apple's APIs in the iPhone SDK.

The Google API includes:

•Google Blogger API

•Google Spreadsheet API

•Google Contacts API

•YouTube APIEg: upload videos to YouTube, publish photos to a Picasa Web Albums account.

"iPhone will match" corporate features found in BlackBerry, Windows Mobile, and Symbian Series 60 (Gartner, March 08)Ready for use on corporate networks for accessing calendar and contact information, e-mail and business applications. Biggest corporate enhancements include support for:

•Microsoft Exchange e-mail server,

•Cisco virtual private networks,

•the WPA2 security standard for Wi-Fi connections.SAP in development, customized by each user like iGoogleSun developing a Java Virtual Machine (JVM) for the iPhone BUT apps can not be executed unless by Apple published interface.Microsoft generate over $350m pa in revenues from Mac appsiPhone with Microsoft Exchange = Blackberry Killer

VERY significant: iPhone for the Enterprise

How will the apps be accessed?

•Addition of an AppStore to iTunes in June

• iPhone users download apps the same was as Music & Video

•Will charge 30% royalty and $99 developer fee, pay monthly

•Digital Application Signatures will authenticate apps as trusted

•FairplayDRM will prevent software piracy between iPhone users

•Apple can disable apps at any time if found to violate AUP

•Danger/Sidekick, Handango, Nokia, Motricity 40%-80% cut

•Qualcomm, Verisign, Symbian charge $200-$500 developer fee

The final word from “Steve Jobs secret diary”....

www.interoute.com

Thank you

oisin.lunny@interoute.com

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