Soc Hsummary 102707

Family Ecosystem Forum 2007

Ecosystem Review

Slide 2CABA IHA-RC 2007 Family Forum

Outline

• Who is Zanthus?

• Connected Home Ecosystem Overview

• State of the Connected Home Study – Key Findings


• Automotive

• Digital entertainment

• Digital kitchen

• Home PC networking

• Telecommunications and Internet

• Video gaming

Zanthus has a long-term relationship conducting research on behalf of the Internet Home Alliance Research Council (IHA-RC), now part of CABA (Continental Automated Buildings Association).


Outline

• Who is Zanthus?


• State of the Connected Home – Key Findings


A market taxonomy provides a common reference, encourages comprehensive analysis, reveals opportunities

A market taxonomy is a conceptual framework used for analyzing business opportunities. It should:

• Provide a common language or series of reference points.

• This facilitates communication with consumers and other members, and can lead to shared business strategies.

• Help ensure that complete information is analyzed.

• It should be broad enough to cover the entire marketplace, while providing a convenient way to divide the market.

• Provide a unique perspective on the market, revealing opportunities previously hidden.


EcosystemsConnected Home ‘Ecosystems’ map to consumer needs at home and beyond, is platform-independent

Family“Help me take care

of my family”

Career“Help me with

my career”

Entertainment“Entertain me”


EcosystemsEach Ecosystem reveals insights about consumer evolution

Family“Help me take care

of my family”

Career“Help me with

my career”

Entertainment“Entertain me”

Promises the greatest immediate return.

MusicVideo

Gaming

Has the most unmet demand.Home Systems

Family Communications Scheduling

Health & FitnessCommunity

Mobile workers are key.Productivity

CommunicationsSchedulingCommutingWork Skills

Work/Life Balance


EcosystemsZanthus IHA-RC research covers all three ecosystems

Family CareerEntertainmentiPTV Demand (I & II)

Digital Entertainment Needs Assessment

Digital Kitchen

Laundry Time Pilot

Mealtime Pilot

Health & Wellness

Safe Secure & Comfortable

Asset Management

Future of Collaborative Work

Mobile Worker Pilot

SMB Needs

State of the Connected Home 2003

State of the Connected Home 2005

Home Networking

Digital Youth

Senior Living

Custom Mobile Advertising


Outline

• Who is Zanthus?


• State of the Connected Home – Key Findings


The features of the connected home exist today; they are not dreams of tomorrow. This home is connected in the sense that normally independent systems are linked into one centrally controlled system, which is called a home network. For example, your PC, television, lighting and heating controls, and home security system can all be linked to a home network.

You can control various parts of your home through your home PC or a variety of mobile devices, including your TV remote control. For example, in a connected home you could turn up the heat using your TV remote control. Or you could see your phone’s caller ID on your TV screen. When you’re away from home, you can control your home network using any device with Internet access, like a cell phone, or by going to a special, secure Web site.

Right now, manufacturers and service providers are developing products and services for the connected home. In general, these are products and services designed to provide entertainment programming, automate common household tasks, and let people communicate with each other more easily.

The connected home will be reliable, easy to control, and easy to upgrade. You will not have to rewire or spend an extravagant amount of money to start setting up a connected home.

In 2005, about one-in-five online consumers considered the connected home concept ‘very appealing’


Career

Family

Q39A-Q39E

Cross-Ecosystem Interests% Very Interested, 6-7 Ratings Among Total HHs (n=1,834)

Mainstream consumers interested in entertainment technology; leading consumers also interested in family, career

Media Entertainment

for the Home

Automate Basic Home Systems

Streamline Routine Tasks

Improve Work Productivity

at Home

Improve WorkProductivity

While on the Road

Entertainment

Source: Zanthus IHA State of Connected Home Study, 2005

Total Online HHs (n=612)Primary Market Consumers (n=318)Mass Market Consumers (n=294)


U.S. household ownership of top growing consumer electronics entertainment products

(CEA, April 2007)

Other growth areas:

• Replacement TVs

• Mobile satellite radio

Key drivers of adoption are interest in:

• Time-shifting.

• Ease of control.

• ‘Anywhere’ access.

• Customization.

• Interactivity.

• High-definition content.

MP3 players

HDTV

DVRs

Digital entertainment achieving mass market potential

Mass Market Threshold: 16%


Personal photo (view on computer or TV)

Movies

Recorded music

Internet access

Media Entertainment at Home % Very Interested

(Total Online HHs n=618)

TV programming

Home video/movies Source: Zanthus IHA State of Connected Home Study, 2005

Internet is most desired source of home entertainment


Movies

Radio music programming

TV programming

Recorded music

Audio books

Internet access

Media Entertainment On-the-Go % Very Interested

(Total Online HHs; n=618)


Internet is near top of list for mobile entertainment



Online HHs withOnline HHs Likely

to Have

Home Network (n=491) Home Network

Interest

Current Use

Future Use (n=100)

Listen to PC music on a stereo 22% 18% 36%

View PC video on a TV 9% 19% 31%

Access Internet streaming audio via stereo 17% 15% 24%

Consumers want to distribute entertainment via home network (especially audio)


Consumer NeedsCareer Ecosystem Interests

35%

30%

30%

30%

30%

24%

20%

17%

16%

16%32%

34%

35%

40%

45%

0% 20% 40% 60% 80% 100%

Update or develop new work skills

Communicate with family and/or friends

Remotely access business email

Remotely access electronic files on your

network/computer

Get directions while driving

QC53_1_15; Letters denote statistically significant differences among markets.

Career Ecosystem InterestsTop-5 Responses, % Very Interested, 6-7 Ratings


Updating skills, communication, access are key career interests


Top growth areas (CEA):

• Network routers or hubs

• Replacement phones (including web-enabled cell phones)

• Mobile GPS devices

Networking & portability spur sales of top career products


Routine Tasks (Top-2 Box; % Very Interested)

QY42-QY43Q

Streamlining routine tasks appeals to leading consumers

Cleaning (general)

Running car maintenance diagnostics

Drying clothes

Communicating with other HH members

Paying household bills

Washing clothes

Total Online HHs (n=612)Primary Market (n=318)Mass Market (n=294)


Indoor Lighting

Outdoor Lighting

Heat/ventilation/air conditioning

Home energy consumption

Home Automation% Very Interested



Home energy automation and monitoring are appealing to leading-edge consumers


Source: The Diffusion Group (2004), and Zanthus.

0%

20%

40%

60%

80%

100%

2001 2002 2003 2004 2005 2006

Broadband HH (% HH) Networked HH (% HH) Multi-PC HH (% HH)

A critical mass of consumers is poised to take advantage of connected home technologies.

Among online households:•About 55% have broadband

•53% have multiple PCs

•28% have a home network

Key Technologies Among All U.S. Households

Mass market threshold is 16-17% of all households

Connected home foundation reached critical mass in 2005


Hype Curve

Adoption Curve

Adoption Curve

Time

Innovators

EarlyAdopters

Moore’sChasm

EarlyMajority

LateMajority

Laggards

However, foundational technologies not enough – further convergence of networks, devices, content is needed

Questions?

Carole WiedmeyerZanthus115 S.W. Ash St., Suite 610Portland, OR 97204971.404.0275www.zanthus.com

Technology

Soc Hsummary 102707