This presentation is the result of a 24 hour case competition sponsored by Boston University and Motorola. The question was, "how can Motorola play a leading role in the future of digital media?" Our presentation suggest that they leverage their position in the set-top box market to make the livingroom the center of content distribution.

1. Team ROKR Garret Dodge Damian Fernandez-Lamela Ryan Hudson Bala Venkatrao March 31, 2007

2. Seamless Mobility: Enabling Cool Experiences Cable TV/Music System Upstairs TV IP Set-top box Consuming content at any time in any place Wireless Carrier

3. How can Motorola play in the media delivery ecosystem?

4. The Video Long Tail “ Blockbuster: The top 100 titles account for 69.4% of sales. Netflix: The top 100 titles account for 38.8% of sales. www.thelongtailblog.com “

5. A New Opportunity Peer IP STB Peer IP STB Create a P2P media distribution network TV/Music System Upstairs TV Home IP STB Wireless Carrier

6. The Video Long Tail

8. Set Top Box P2P Architecture

14. Revenue Potential Source: 2006 Annual Report/eMarketer 4691.5 2551.2 1563.8 815.6 401.9 Total Revenue ( $ millions) 2816.1 1200.3 316.5 18.0 0 Service Revenue ($ millions) 60 48 24 6 0 Revenue per subscriber ($) 0.35 0.25 0.15 0.05 0 % STB Using P2P Services 1875.4 1350.9 1247.3 797.6 401.9 STB Revenue ($ millions) 80 80 80 80 40 Profit on Unit (20%) ($) 23 17 16 10 10 Box Upgrades (millions) 134.1 100.025 87.925 59.9 50.24 Total Motorola Boxes (millions) 447 400.1 351.7 299.5 251.2 World Broadband Households (millions) 2010 2009 2008 2007 2006

21. Questions?

22. Appendix STB Growth Driven by HD & Broadband Adoption