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US Mobile Video Uptake

#IN1005040MMT#IN1004670MBS

March, 2011

Gerry KaufholdPrincipal Analyst, In-Statgkaufhold@in-stat.com

+1.480.609.4537

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http://www.in-stat.com

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What Future TV Looks Like

SIX VECTORS of Growth – a LOT of Moving Parts

• Technology moving to Ultra High Definition and Mobile

• Delivery Systems connecting inside and outside the home

• Audience Fragmentation by Age Group and Income

• Content needs to be re-purposed to flow to all segments

• Advertising needs to be available in real time, and interactive

• Business Models need to adjust to maintain profitability

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Network-Based TV Content Next Steps

Digital Media Players/ Recorders

Gaming Console

Apple TV/Other STBs

HDTV

PC

Set Top box

Broadband modem

HomeGateway

Converged Upstream IP Network

In-Home data Net

In-Home Broadcast Network

Managed In-Home Unified Net Connections

to TV Devices

This system supports Voice over IP (VoIP) and two-way video conferencing, as well as widgets to share connections, content and services with others

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Network-Based TV Content for Mobile

Source: In-Stat, 6/09

Converged Upstream IP Network

In-Band Mobile Data & Streaming

Overlay Mobile Data & Streaming

Content from a particular end-user’s authorized services

Additional Content from specialized mobile services or from

the Mobile Internet

Mobile Devices:

• Cellular Handsets

• Smart Phones

• Netbooks

• Notebooks

• Mobile Internet Devices

• Mobile Devices (Kindle)

• In-vehicle Entertainment

Portable Devices:

• iPods, iPads, iTouch, MP3

• PNDs, Portable Games

• Other Portable Devices

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The Mobile Devices

In-Stat has a forecast for each of the red dots! And a quarterly device tracker.

Worldwide Phenomenon

• Japan’s ISDB-T

• Latin America’s ISBVD-T

• US ATSC Mobile DTV

• Analog TV in China, India, Latin America

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50

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250

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400

450

2009 2010 2011 2012 2013 2014

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Analog Broadcast TV Viewers

Digital Broadcast Mobile TV Subs

Cellular Mobile TV Subs

Worldwide Mobile TV Viewers and Subs

Source: In-Stat 2/11

US Mobile DTV Gains Momentum

• Open Mobile Video Coalition

– Up to 600 Local TV stations on-air by 2011

– Top 50 DMAs, 98 of top 100 DMAs

• Mobile Content Venture (MCV)

• Mobile DTV Forum

• Mobile500 Alliance

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http://www.omvc.org/_assets/images/OMVC-Coverage-Map.jpg

US Mobile DTV Coverage Plans

US Market Set To Take Off

• Mobile PC-TV Devices

• TVZen Wi-Fi Hot Spot with Tuner

• Emerging Smartphones with Tuners

• In-Vehicle Systems with Mobile Tuners

• Local TV Station Promoting Mobile Services on-air, on-line, and mobile

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US Shipments of Tuner Devices

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Up to 16 million tuner-equipped devicesexpected to ship during 2014

North America 2009 2010 2011 2012 2013 2014Digital Mobile Tuner Shipments (000s) 110 150 1,200 3,500 10,000 16,000

Average Selling Price (US$) $4.00 $3.80 $3.42 $2.98 $2.53 $2.28

Annual Value (US$ M) $0.4 $0.6 $4.1 $10.4 $25.3 $36.4

Annual Growth Rate - 29.5% 620.0% 153.8% 142.9% 44.0%Source: In-Stat, 3/2011

Mobile Tuner Devices in Use

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North America 2010 2011 2012 2013 2014Digital Mobile Tuner Shipments (000s) 150 1,200 3,500 10,000 16,000

Annual Growth Rate - 700.0% 191.7% 185.7% 60.0%

Accumulated Total (000s) 150 1,350 4,850 14,850 30,850Annual Growth Rate - 800.0% 259.3% 206.2% 107.7%

Source: In-Stat, 2/11

Up to THIRTY MILLION devices equipped with Mobile TV Tuners by 2014!

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Related In-Stat ResearchWorldwide Cellular and Broadcast Mobile TV , IN1004670MBS, July, 2010http://www.in-stat.com/catalog/wcatalogue.asp?id=294#IN1004670MBS

World Mobile Silicon TV Tuners in Eight Regions, IN1005040MMT, November, 2010http://www.in-stat.com/catalog/wcatalogue.asp?id=294#IN1005040MMT Future Cellphones: Current User Preferences Drive Future Handset Designs, IN1004741MCM January, 2011 http://www.in-stat.com/catalog/wcatalogue.asp?id=231#IN1004741MCM

China's CMMB Market Update: Subsidies from China Mobile Activate the CMMB Market, IN1004840CCM, June, 2010http://www.instat.com/catalog/Ccatalogue.asp?id=212#IN0904402CM

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Contact In-StatGerry Kaufhold, Principal Analyst

Email: gkaufhold@in-stat.com

Voice: 480-483-4537

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