Connected Living Rooms 2010.05.20

Connected Living
Rooms:
Analysis of User Preferences
and Market Trends
Melody Akhtari
Vincent Huang
Matt Salazar
June, 2010
Faculty Advisor : Pablo Spiller
UC Berkeley, Haas School of Business

Table of Contents
Executive Summary 3
Context , Definitions , and Objectives 4
Industry and User Trends 5
Industry Highlights
6
User Demographics & Trends
9
Analysis 13
Research Methodology
14
Competitive Landscape
15
SWOT Analysis
17
Primary Research 21
Industry Professionals
22
Connected Living Room User Interviews
23
Quantitative User Survey Analysis
24
Findings & Implications 29
Hypothesis Inventory
2 UC Berkeley, Haas School of Business
30
Hypothesis & Implications
Executive Summary
 Objectives:
 Map both demand and supply side of the connected living room
landscape
 Identify the user preferences of lead users and predict trends in the
mass market landscape
 Primary & Secondary Research:
 Mapping demand and supply-side:
 Qualitative interviews of industry leaders throughout the value
chain: content producers, chip manufacturers, software, and
hardware providers
 Identifying lead user preferences:
 Qualitative interviews of connected living room users
 Quantitative surveys of US lead users

Context, Definitions, and
Objectives
 Context :
 Users are beginning to use devices and services to consume content from the Internet. There
has been an explosion of companies vying for adoption of their device/service.

 Definitions :
 ACS Living Room : Content connected via Antenna, Cable, Satellite . Content is viewed in the
living room.
 Connected Living Room : Content sourced from the Internet. Content is viewed in the living
room.
 Content : Videos
 Production Value: User generated content (UGC), Independent, Mainstream (e.g. movies, TV
shows)
 Length: Short-Form (<10 min), Episodic (10-60 min), Feature-length (60+ min)
 Content Acquisition : Recording , downloading , and streaming of content
 Content Platform : Content providers or content aggregators
 Devices : Companies whose core competencies are to create and sell physical products
 Devices include: Connected Blu-Ray players, connected TVs, game consoles, OTTB
 Services : Companies whose core competencies are to provide content from the Internet
 Services include: Content aggregators, content broadcasters, content platforms, content
applications

 Our specific objectives include :

 Identify drivers and challenges for organizations within the content ecosystem
 Determine US lead user preferences for types of content consumed
 Provide predictions and recommendations for organizations in the content ecosystem


Industry and User Trends
 Industry Highlights
 User Demographics
 User Trends

Industry Highlights: A Complicated
Value Chain
New Content and delivery channels have created

multiple paths for consumption .
Product Co. Cable Network Cable STB TV Manufacturer

ury Fox, ABC, Disney, Endemol
Discovery, TBS, ESPN Scientific America, MotorolaSamsung, LG, Vizio, SONY
Comcast, CableVision, TimeWarner
Antenna
Broadcast Network Roof, Rabbit Ears Component Device
ABC, CBS, Fox, NBC Content Aggregator DVD, Blu-Ray Player
Clickr.com, Boxee
Satellite
Indie Producer
DirecTV, DISH OTTB
ECord, Prom Queen, The Guild
Content Platform (Over The Top Box)
AppleTV, Roku, TiVO
Hulu, Justin.TV, Netflix, Vudu
UGC Consoles
Fred, Shay Carl Internet Provider PS3, Wii, Xbox 360
AT&T, Comcast, Verizon, CableVision, TimeWarner
Internet Broadcaster
PC
Koldcast TV
Traditional to Desktop, Laptop
Traditional
Tradition to New
New to Trad/New

Connected Living Rooms: On the Brink
of Growth
2004 Content Connects to PCs

Windows Media Center 2005
2008 Ease of Installation
Netflix on Xbox
Revenue
2006 PCs Connect to TVs

XBMC 2.0
2009 Jump in Device Processing
Yahoo! Connected TVs
Blu-Ray Plays drops below $100
2007 New Content Platforms
Hulu.com founded
Netflix launches Watch Instantly 2010 Growth in Devices/Services
Walmart.com buys Vudu
Boxee gains 1M users
Time
Stage : Emerging : Growth : Mature : Decline :
Strateg Innovate and Gain Market Incremental Harvest
y: Disrupt Share Innovation Profits
Source: Henry Chesbrough.
Open Innovation Business
Models

Customer Demand and
Implementation:
Key
ThereChallenges
 and Obstacles
are many challenges and obstacles in creating
the perfect connected experience .
mand
nd u stry s
I
l l enge
e
Ch a
D
on sumer
e s in C
len g
Chal

Online Video Has Arrived For All
 Online Video has become mainstream; 62% of online adults have

used the Internet to watch or download video, nearly double since
2006.
 On a typical day, 36% of adult Internet users watched videos online,
up from 30% in 2008.

80%
68%
50%
Source: RBC Capital Markets (September 2009)

User Trends: Increasing Demand for
Internet Delivered Content on the Television
Over a third of Netflix
 The increasing demand for

subscribers consume “ Watch Internet connectivity on the

Instantly ” content on television is bolstered by
something other than a consumers under 44 .
computer monitor US Internet Users Who Would Like to
Connect
 their TV to the Internet

Generation
 2006 2007 2008 2009
Millennials (14-26) 64% 71% 70% 74%
 
Generation X (27-43) 52% 66% 61% 71%
 Boomers (44-62) 40% 49% 51% 59%

Matures/Silent (63-75) 29% 39% 40% 46%
Total 47% 58% 58% 65%
Source: eMarketer (December 2009)

User Trends: Internet Delivered Content is Both
a Compliment and Substitute to Current Video
Consumption
Compliment : Upward trend in
 Substitute : Upward trend of

total video consumption cord cutters ( 1 . 6M over 3

years )
but still small to total
market size ( 101M subscribers )

User Trends: Significant Questions Remain
to Video Content Business Models and
Economics
44 . 2 % o f B a b y B o o m e rs sa y th e y ’ re m o st like ly to g ive u p p a yin g a
subscription fee for TV service over any other subscription-based service
(RBC, September 2009)
Advertising : Support amongst
 Payment : Only moderate support

users but revenue has not for online content purchases

materialized
Source: eMarketer (April 2009) Source: eMarketer (February

2010)
Analysis
 Research Methodology
 Competitive Landscape
 SWOT Analysis

Research Methodology

Scoping: Identifying Key Players
 Competitive landscape analysis of all

companies offering a “10-Foot” living
room experience

 Narrowed list by focusing on:

 Recognizable and identifiable firms
 Firms recognized as industry leaders by
users and industry experts
 Significant install base


Competitive Landscape: It’s Crowded at
the Top
Hardware Content Acquisition Local Content App Platform
Playback
Proprietary OTTB Download via iTunes Yes Closed
OTTB via Partners Stream from Netflix and Yes Open

other Partner Content
Providers
Proprietary Game Download via Playstation Yes Closed
Console Network
Proprietary OTTB Stream from Netflix, No Controlled
Amazon VOD, and other
Partner Content Providers
Propietary OTTB Record from A/C/S, Only Recorded Content Controlled

Stream from Netflix
Embedded w/ Partners Stream from Vudu or Dependant on Hardware Controlled

other Partner Content
Providers
Proprietary Game Zune Marketplace Yes Closed
Console
Bring Your Own Record from A/C/S, Yes Closed
Stream from Netflix,
CBS, and other Partner
Content Providers

Analysis of Key Players: AppleTV
Strengths Weaknesses
iTunes Integration Set-top box solution

Relationship with major content partners (ex. Lack of subscription services
Disney)
High resolution picture quality
Opportunities Threats
Consumer brand equity Embedded devices

Opportunity to capture customers with New subscription services
subscription service Increased competition from download and pay
Leverage relationship per stream (Vudu, Amazon VOD)

Analysis of Key Players: Boxee
Leader in aggregating Internet-delivered Lacks revenue model

video service Hardware solution still pending
Content organization Dependant on device partners
Open app platform for mass adoption

Free licensing model for CE manufacturers App experience still inconsistent
Ability to own users via Payment platform Prevalence of cloud based solutions could
Software embedded into connected CE devices undermine the utility of local hardware because of
Official Hulu-integration updates
Metrics to serve content owners and advertisers Potential to be shut out of highly valued Internet
iPad and mobile integration could drive delivered content (ex. Hulu)
software adoption Competition

Analysis of Key Players: Roku
Low-priced OTTB hardware OTTB solution limits mass market adoption

Simplicity in usability and installation Semi-open app platform has limited adoption
Clear value proposition message: Clear value proposition message:
Netflix streaming on your TV Netflix streaming on your TV

Increasing content partners 
Additional partnerships with Non-exclusive content could


content providers commoditize the solution

Continuing to be the low-cost alternative to
Connected Blu-Ray players/ Connected

Televisions in growing segment

Analysis of Key Players: WMC
Distributed with Windows Requires HTPC/Connected laptop/Extender to

Critically acclaimed UI experience be used in the living room
Proven DVR solution Limited streaming capabilities
Setup requires more advanced technical
expertise
Huge install base to convert to active users Integrated solutions

Consumer preference shifts from recording to
streaming

Primary Research
 Industry Professionals Interview List

 Connected Living Room User Interviews
 Quantitative User Survey Analysis

Industry Professional: Interview
List
De Roku D-Link Trident Microsystems
Brian Jacquet Dan Wong Jackson Huang
vi
Director, Corporate Communications
Director, Product Management
Sr. Director Marketing
ce
s
Netflix Vudu Boxee

Services
Richard Ezekiel Edward Lichty Andrew Kippen
Director, Partnerships
EVP, Strategy and Content VP, Marketing
Endemol Koldcast TV App Content Developer

ContentJerry Kowal Daniel Samuels Rob Spectre
Providers
SVP Digital Media CEO, Koldcast TV Boxee App Dvlpr.

Users Interview Methodology
 Individuals obtained from additional closing question

requesting a phone conversation to better explore
users’ habits
 Questions formed around hypotheses: thoughts on
downloading and streaming, high definition, obtaining
content, consumption patterns
 20-30 minute phone conversations with eleven US-based
individuals
 Interviewees included 44-year old female multi-solution
user, a 25-year old male college student using Boxee,
and a computer engineer using TivoHD with his wife
and two young children, among many others.
 Conversations centered on in-depth insights based on
users’ home
set-up, preferences and behavior, consumption
23 patterns, andUCpersonal media
Berkeley, Haas Schoollibraries.
of Business
Survey Methodology
 Length : 1 0 Q u e stio n s
 Time : Survey Ran from 4/22/10 to 5/6/10
 Forums Surveyed :
 AVSForum.com
 CNET.com
 TheGreenButton.com
 Mac-Rumors.com
 TivoCommunity.com
 Boxee Forums
 Results : 140 Valid Responses


Survey Topline
 Who are they?

 67% consider themselves early adopters
 55% describe themselves as technology experts

 What is their setup?

 85% have multiple computers in their household
 77% have connected a computer/laptop to their television
 70% have created or modified software/hardware to fit their
technological needs


Demographics Chart

Time Spent Watching Chart

Number of Devices Used
4 8 % o f re sp o n d e n ts u se m o re th a n tw o so lu tio n s to

co n su m e d ig ita l co n te n t


Findings & Implications
 Hypothesis Inventory
 Hypothesis Testing & Implications
 Market Trends & Implications

Hypothesis Inventory
User Behavior

1. Users do not watch short-form content on their TVs

2. Control over experience and setup is critical to power users
3. Users predominantly like new and current content.

Where Does Content Reside?


4. People do not care whether content is streamed or downloaded.

5. Users would rather build a digital library for their content

Influencers Towards Connected Living Rooms


6. HD Quality (720p or better) will drive users to connected living rooms

7. The desire to watch content on the living room screen is positively
correlated with length
8. Users use one single device in the connected living room

Content Discovery

9.30Users want social recommendations

UC Berkeley, Haas School
forofcontent
Businessdiscovery
Hypothesis 1: The (Un)importance of
Short-Form
Hypothesis: Users do not watch short-form content on their TVs
Results: True
 Less than 10% of users would like watch short-form content on their TVs.
 The majority of users desire mainstream content.
 “I'd rather watch the full movie. I don't really stream clips, but if it's something I really,
really, really want to watch, then I'll watch a clip. I'll watch post-game
interview/highlight clips. Value-added things that are in addition to the whole show.”
 “Clips are worthless, I want to watch full episodes of things. It's like ‘Hey, here's a great
scene from an episode I can't watch!’”
Implications:
 Most users do not find the offer of short-form video compelling. In few occasions where
short-form is value-add, short-form video is not a strong selling point for connected
devices. users feel that if they’re going to watch something on their television, it might
as well be more significant than a short video.
 Linkages to short-form content libraries, like YouTube, do not provide significant utility to
the user.

Hypothesis 1: The (Un)importance of
Short-Form

Hypothesis 2: Flexibility and Control of
Experience
Hypothesis: Control over experience and setup is critical to power users
Results: True
 “I have a large-screen TV in the living room, PCs in the office, and both wireless & wired
networking at home for my own media library. Entertainment is consolidated in a hand-
made console, with an HTPC and AV receiver with surround sound.”
 “Any TV viewing is either from download or Netflix stream or in-mail DVD. That's the
only way we watch anything. We have a TV with a WDTV Live box in the main living
room downstairs with mostly cartoons for our younger two kids. We have a living room
upstairs, where my husband and I watch Lost and network shows on the Xbox 360. We
only watch the .avis up there because it won't play other formats like .mkv so we watch
a lot of SD. Then in my ‘Me’ room I watch old movies from archive.org using a PC
with WMC on it. It’s important to be able to access content off the network all over the
house.”
Implications:
 Power users will invest more resources (time and money) to perfect their set-up. Most
users believe that there is not a one-stop solution in the market; consequently, they will
invest time and money to customize their experience through multiple platform efforts.
 Given the fragmented preferences, a one-stop solution remains elusive and serves as a
large barrier to mass-market adoption.

Hypothesis 3: Desire for Fresh Content
Hypothesis: Users predominantly like new and current content

Results: Uncertain
 The type of content drives consumption of new versus cataloged content.
 Users followed new episodic content and appreciate cataloged movie content.
 “I prefer new TV shows, and movies I prefer to watch what I haven't seen. If it's an old
movie I haven't seen that's fine. My wife wanted to watch Soylent Green the other day;
since we haven't seen it, I don't mind watching it.”
 It's a mixture. I've found that I'm watching shows that have been off the air for a long time
that users have previously suggested to me. I'm watching Red Dwarf right now because
it's on Netflix and someone suggested it to me. It's easy to find. It's a mixture, I watch
half new shows and half old shows.
Implications:
 To consumers, movies are seen as timeless, while TV shows have a steeper half-life.
 User profiles are complex as they carry over taste preferences from traditional media to
online content. However, availability of content complicates what they can consume.
Further research is recommended.

Hypothesis 4: Streaming Vs.
Downloading
Hypothesis: Users do not care whether content is streamed or downloaded.
Results: True
 While users exhibit preferences, the proportion of people preferring streams is not statistically
different from the proportion preferring downloads (p=.254)
 Streaming or downloading is a means to an end, and not an end unto itself. The preference for
streaming/downloading is driven by other attributes such as content quality and content
availability.
 For Millenials, there is a significant preference for downloading over recording
(p=.047) but not for streaming over recording (p=.187)
 For Boomers, the preferences are reversed, where there is a significant preference for recording over
downloading (p=.028)
 “I just want to watch my show, it If Given
doesn't a Choice
matter where, itWould
comesYou Rather …
from.”

Generation Stream Download Record No
 Preference
Millennials (15- 27) 29% 39% 21% 11%

Generation X (28 – 32% 27% 35% 5%

44 ) Boomers (45 – 32%
Baby 21% 39% 7%
64)

Implications:

 Given the indifference to streaming or downloading, organizations distributing content should

message on performance.

Hypothesis 5: Building Digital Libraries
Hypothesis: Users would rather build a digital library for their content
Results: It depends on the content
 Users prefer to digital libraries for content that are either favorited or consumed multiple
times.
 “We don't add any more drives to our media library. We keep all our kids' content because
they want to watch it over and over, but for our current shows/movies, we download-
watch-delete.”
 "Yes there's a difference between streaming and downloading. Downloaded stuff is stuff I
look forward to seeing and I can't find anywhere (like making a run to blockbuster, it's
special). Streaming, to me, is more like flipping through channels; it's less choices but
it's instant gratification. Streaming is for content that I have a bit of interest in, but I
don't look forward to that content as much as I do to content that I have downloaded
onto my computer, which I've gone out of my way to get.
Implications:
 We thought power users would want to own their shows and movies, but many people
mostly want to watch their content, and then move on. They’ll only want to keep or own
those shows/movies they highly value, their favorites.

Hypothesis 6: HD as a Driver
Hypothesis: HD Quality (720p or better) will drive people to connected living rooms
Results: False
 HD content (p=.358) does not significantly raise the likelihood someone will stream
content to their television.
 "Yes, HD is very important to me. I would say I wouldn’t sacrifice quality for
variety, but I do it now since Netflix's on demand isn't as high quality as I would
like, so yes we sacrifice for the ease of instant playback. But I prefer quality,
which is why we rent Blu-ray discs as well."
 "I like HD, but only care a 'medium' amount for it. For TV shows, what I have right
now is enough (480p and stereo surround on Hulu and PlayOn). But when I buy a
movie, it should only be on Blu-Ray unless it's super rare or super cheap. If I'm
buying something for my collection, it needs to be the best.”
Implications:
 While consumers show a strong preference towards higher quality content, content
selection takes precedence. More succinctly, consumers are going to watch what
they want to watch even if its not available in HD picture quality.


Hypothesis 6: HD as a Driver (Cont.)

Hypothesis 7: Correlation of Place and
Length
Hypothesis: The desire to watch content on the living room screen is positively
correlated with length
Results: False
 On a whole, no significant correlation, no significant difference in likelihood or
watching short form content over medium or long form content on the television.
 Caveat: Boomers have a significantly stronger desire to watch Internet-delivered
episodic content on their televisions (p=0.023) when compared to other
generations.
Implications:
 Length and quality are not key drivers to whether users consume content via
connected living rooms.
 Overall consumption is the single largest driver to whether users consume via
connected living room experiences.

Hypothesis 8: Single Solution
Connected Experiences
Hypothesis: Users have one single device in the connected living room.
Results: False
 48% of respondents use more than 2 connected living room solutions to consume
digital content (this is in addition to a computer/laptop), 14% of respondents use
more than 3 connected living room solutions
Implications:
 No one-stop integrated solution to consume digital content current exists.

To increase market share, companies will need to support multiple use-cases or
convince users to change their behavior onto a consolidated platform.

Hypothesis 9: Social Discovery
Hypothesis: Users want social recommendations for content discovery

Results: False
 Relative to other features, social discovery is significantly less important than most
other features (p=.00) such as availability of mainstream content, HD picture
quality content, and discovery from a recommendation engine.
Implications:
 Despite being in the Web 2.0 era where social discovery is becoming ubiquitous,
connected living room platforms should not be distracted with these type of
features that rank orders of magnitude lower than most desired feature.

Hypothesis 10: Recommendation
Engines
Hypothesis: Users want a content recommendation engine.
Results: True
 Preferences for a recommendation engine is larger than recommendations from

friends (p=.00) but is significantly less important than mainstream content or HD
picture quality (p=.00)
Implications:
 Algorithms and machine learning are crucial skills platform owners will need going
forward. Recommendation engines should be used as tools to help users navigate
expansive content libraries.
 It is intriguing that in the current era of social and peer discovery, recommendation
engines have a significantly higher preference ranking over other forms of
discovery. Further research in this area is advised.

Hypothesis 10: Recommendation
Engine

Market and User Trends: Findings &
Implications
 The concept of a digital locker in the cloud is still very foreign.
Social validation will be a key driver in helping users accept
a digital locker.
 Implication: Companies will need to create user profiles to display
content in “virtual shelves” when purchased from the cloud.
These shelves are public and enable the user to broadcast their
taste preferences and purchases to peers.
 Video streaming will supersede downloading only when HD
(720p or higher) content is available for streaming.
 Implication: Content platform companies should significantly invest
in optimization their distribution systems to deliver HD quality
content without any initial buffering.
There is little room for new content platforms.
 Implication: The content platform is crowded. New entrants have

extremely high barriers of entry. Unless new entrants can deliver
exclusive content or unparalleled user experience, new entrants
should enter through acquisition. Existing companies should
focus on a market share strategy.

Implications
 Physical device product lifecycles, while shortened, will
continue to be much longer than software service lifecycles.
 Implication: Companies within the connected living room space will
need to be extremely agile to keep up with its competitors.
Moving to the cloud will enable companies to quickly iterate and
innovate.
Analytics will serve as the catalyst to incentivizing digital
content distribution.
 Implication: Create infrastructure to collect, synthesize, and act upon
data. Companies that can best serve analytics to content owners
will be best positioned to find new models to monetize the
content.
While many players will build and provide an “apps” platform,
in the long run, these platforms will be undifferentiated.

 Implication: Exclusive content and UI will be key differentiators for
companies. Applications platforms will be will be a baseline
requirement for connected living room devices.
Implications
 In the short term, connected Blu-Ray players are best
positioned to have the best connected living room
experiences.
 Implication: Blu-Ray devices contain both the necessary processing
power and price point for consumers. Device manufacturers
should seek strategic partnership with content platforms to deliver
an integrated device/service.
 The connected living room will drive increased consumption of
independent content
 Implication: While mainstream content will remain mainstream,
connected living rooms encourage the long-tailed consumption of
content. Given the initial explosion of options, UI will be a critical
component of organization and discovery.



Suggested Further Research/
Future Steps
 We chose to focus on intrinsic user behavior and
preferences
 Potential next steps and opportunities for future
research:
 Consumer tastes on “Ownership” and how these preferences will
translate with cloud based streaming services.
 Further understanding of discovery preferences from
recommendation engine and social network.
 Map user preferences along specific product features. This study
focused on intrinsic user behaviors and did not seek to correlate
user behaviors with specific product features.
 Examination of developing business models and economic trends
for video content.
 Create quantitative analysis of findings from the Market & User
Trends: Findings and Implications section. Trends were were
derived qualitative interviews with industry professionals.
 Analyze consumer preferences for new versus cataloged content.
 Examination of developing business models and economic trends
for video content. Monetization and understanding consumers
47 willingness to
UCpay was not
Berkeley, within
Haas Schoolthe scope. However, interviews
of Business
indicate that many players throughout the value chain are deeply
For Inquiries, Contact Us
 Melody Aktari, BS 2011

 melodyakhtari@berkeley.edu
 @iMelody
 Vincent Huang, MBA 2011
 vincent_huang@mba.berkeley.edu
 @huangv
 Matt Salazar, MBA 2011
 matt_salazar@mba.berkeley.edu
 @mattsalazar

Appendix
A: Sample Survey

B: Regression Analysis
C: Sample User Interview Guide

Appendix A: Sample Survey

Appendix A: Sample Survey

Appendix B: Regression Analysis

Appendix B: Regression Analysis

Appendix C: User Interview Guide

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Connected Living

Faculty Advisor : Pablo Spiller

UC Berkeley, Haas School of Business

3 UC Berkeley, Haas School of Business

 Our specific objectives include :

4 UC Berkeley, Haas School of Business

5 UC Berkeley, Haas School of Business

multiple paths for consumption .

Product Co. Cable Network Cable STB TV Manufacturer

6 UC Berkeley, Haas School of Business

2004 Content Connects to PCs

2006 PCs Connect to TVs

7 UC Berkeley, Haas School of Business

8 UC Berkeley, Haas School of Business

 Online Video has become mainstream; 62% of online adults have

Source: RBC Capital Markets (September 2009)

9 UC Berkeley, Haas School of Business

subscribers consume “ Watch Internet connectivity on the

 Boomers (44-62) 40% 49% 51% 59%

10 UC Berkeley, Haas School of Business

total video consumption cord cutters ( 1 . 6M over 3

11 UC Berkeley, Haas School of Business

users but revenue has not for online content purchases

Source: eMarketer (April 2009) Source: eMarketer (February

13 UC Berkeley, Haas School of Business

14 UC Berkeley, Haas School of Business

 Competitive landscape analysis of all

 Narrowed list by focusing on:

15 UC Berkeley, Haas School of Business

OTTB via Partners Stream from Netflix and Yes Open

Propietary OTTB Record from A/C/S, Only Recorded Content Controlled

Embedded w/ Partners Stream from Vudu or Dependant on Hardware Controlled

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iTunes Integration Set-top box solution

Consumer brand equity Embedded devices

subscription service Increased competition from download and pay

Leverage relationship per stream (Vudu, Amazon VOD)

17 UC Berkeley, Haas School of Business

Leader in aggregating Internet-delivered Lacks revenue model

Content organization Dependant on device partners

Open app platform for mass adoption

18 UC Berkeley, Haas School of Business

Low-priced OTTB hardware OTTB solution limits mass market adoption

Clear value proposition message: Clear value proposition message:

Netflix streaming on your TV Netflix streaming on your TV

Additional partnerships with Non-exclusive content could

content providers commoditize the solution

Connected Blu-Ray players/ Connected

19 UC Berkeley, Haas School of Business

Distributed with Windows Requires HTPC/Connected laptop/Extender to

Huge install base to convert to active users Integrated solutions

20 UC Berkeley, Haas School of Business

 Industry Professionals Interview List

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Netflix Vudu Boxee

Endemol Koldcast TV App Content Developer

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 Individuals obtained from additional closing question

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 Who are they?

 What is their setup?

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26 UC Berkeley, Haas School of Business