SMITH-TRG led September 2010 Digital-Media CXO meeting, post event collateral presentation provided attendees - excluding proprietary information.

1. Copyright 2010 SMITH-TRG, All rights reserved. September 2010
iPopped
POST ‘Blood in the Boardroom’ UPDATE
DIGITAL-MEDIA CXO Meeting led by Richard D. Smith, CEO
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2. September 2010
agenda
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introduction
 BOARDROOM HIGHLIGHTS
 PLAYERS UPDATE
 YOUR FUTURE
Attendee collateral presentation for reading, not presenting. Excludes proprietary information.
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3. September 2010
introduction
Richard D. Smith is President & CEO at SMITH-TRG a
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business performance and value creation advisory firm.
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He is a frequent speaker and publisher of presentations
on visioning, innovation, enterprise transformation,
iPopped/Apple Centric age, future-world markets, and
value creation.
Richard, as ‘Trusted Business Advisor’, assists CEO’s
to create business value; CXO Stakeholders to solve
business performance problems; Innovators to develop
more successful ‘customer centric’ propositions; and
Business Developers to maximize return on their
investments.
His global consulting, IT/telecom & digital-media roots
uniquely enable him to work with media industry line-of
business CXO’s to develop and execute business value
Richard D. Smith, CEO creation strategies.
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4. September 2010
BOARDROOM HIGHLIGHTS
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iPopped
the Paradigm Shift – led/driven by Steve Jobs
as change agent with iPhone (smartphones) and iPad
(tablets) as catalysts for digital-media transformation.
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IMPACT . . .
September 2010
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Accelerated
media sector fragmentation -
up & down the value-chain
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Impacted?
anyone, small to large, U.S. or foreign, in and/or
around digital-media eco-system markets!
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Next Steps
 Stop the Hemorrhaging SURVIVAL
 Regain Market RELEVANCE
 Position to Drive VALUE CREATION
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SURVIVAL
of the smartest & quickest
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RELEVANCE
no playing field advantage without market relevance
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VALUE
no future without sustainable value creation
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12. September 2010
‘Chasm’
The
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Response Delay Impacts –
Survival, Relevance & Value!
Visionaries Early Early
& Leaders Adopter Majority Late Majority Skeptics – 16% of
2.5% 13.5% 34% 34% total population
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Time to go ahead make the
TOUGH
DECISIONS
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14. September 2010
PLAYERS UPDATE
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Media’s
INTERDEPENDENCY PUZZLE
players adjust across the digital-media value chain
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Apple
RELEVANCE
Keeps gaining iPopped playing field advantage . . .
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16. September 2010
Apple: Strategically morphing
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itself into a broader media company
(Apple officially a computer
hardware & software company)
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People have downloaded –
iPod family 11.7billion songs from iTunes.
275 million Sold Over 450million TV episodes.
100million movies & 35million
books.
Number one online media store in the world.
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18. September 2010
Apple . . .
iOS apps -- Over 6.5billion apps downloaded.
Over 200 every second...
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Apple . . .
Retail store chain…80,000 1on1 customer technical sessions weekly
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20. September 2010
Apple . . .
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The Store and In-Store experience…customer relationship driven.
London Paris
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Equipment
Hardware & Software
(delivering media to the mind)
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“There is at least one point in the history
of any company when you have to change
dramatically to rise to the next level of
performance. Miss that moment - and
you start to decline.”
– Andy Grove, former Intel Chairman
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23. September 2010
Dell
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In Transformation
From PC maker to technology
solutions.
Dell lost bidding war for 3PAR
Inc. to H-P @$33.
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24. September 2010
Dell's consumer-PC business lost $4 million over past six months
Dell launched tablet, ‘Streak’, & 3.5-inch touch-screen phone, ‘Aero’,
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which runs on Google Android operating system
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25. September 2010
Motorola
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Splitting in Two
The proceeds will increase
Motorola's cash pile as it plans
Exiting wireless-networking to spin off its cellphone and
business with a $1.2 billion cable set-top box divisions.
sale of much of its equipment
division to Nokia Siemens The cellphone division is trying
Networks. to turn itself around with a set
of popular smartphones.
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26. September 2010
Intel
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Strategic Acquisitions
To buy Infineon Technologies’
Wireless Solutions business.
The Germany-based
company makes chips Enables Intel to offer a portfolio
for Apple's iPhone and of products that covers the full
other smartphones. range of wireless options from
Wi-Fi and 3G to WiMax and LTE.
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Here come
THE
TABLETS
Before the critical holiday shopping season . . .
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Samsung
Introduces its iPad called Galaxy Tab
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Toshiba
The Folio 100, Android based, is not Toshiba's first tablet.
JournE Touch, touch-screen tablet running on Microsoft
Windows, unveiled September 2009 before Apple started
selling the iPad in April.
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Asustek
Computer Inc. (Taiwan)
Building Eee Pad tablet running
Microsoft Windows due Q1/11 Eee netbook demand declining
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Amazon
Third-generation Kindle, digital book reader, that's lighter,
smaller and faster than the current model
Sharper display, longer battery life, twice the storage,
and Wi-Fi reception to download e-books.
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Barnes & Noble
NOOK e-book reader. Brick-and-mortar
declined faster than expected.
Posted net loss of $62.5 million for first quarter compared to
$12.3 million profit a year earlier.
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Smartphones
Global annual sales doubling
to 506 million units
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Wireless
Carriers
U.S. State of Play
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Verizon vs. AT&T
Subscribers: 92.1 million Subscribers: 90.1 million
Users Smartphones: 18.5% Smartphones: 33.7%
4G: Due in 25-30 cities 2010 4G: Plans to roll out 2011
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Sprint/Nextel vs. T-Mobile
Subscribers: 48.2 million Subscribers: 33.6 million
Smartphones: 29% Smartphones: 27.9%
4G: Available 49 cities 4G: NONE
(via Clearwire network)
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37. September 2010
September 2010
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Wall Street
ISSUES . . .
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Pricing Clearwire
Sprint’s/Virgin Mobile offers Needs billions to finish 4G!
unlimited broadband prepaid
packages for $40 a month. Sprint currently owns 54%!
Stability of new AT&T/Verizon Sprint could sell percentage
metered pricing model starting of ownership to competitor
to fall apart. T-Mobile?
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BATTLE
For control of Living Room TV
(entertainment platform)
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40. September 2010
Apple
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Introduces Updated
Apple TV
Connects to a high-definition television - can show
rented movies and TV shows from Apple's own
service, plus content from Netflix, photos on Flickr,
YouTube clips and more.
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41. September 2010
Apple . . .
Refining plans to annex the living room into its entertainment empire.
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42. September 2010
Google
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Launched
Google TV
Angles to become a bigger player in the living room with a
technology called Google TV, based on its Android software
for cellphones, that will let viewers search for Web video and
run Internet apps alongside TV programs.
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43. September 2010
Amazon
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Subscription Push
Challenges Rivals
Working on a new subscription service that would
deliver TV shows and movies over the Internet.
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44. September 2010
Logitech
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Seeks Living Room
Dominance
Partnering with Google… set-top box to bring the Web to the
TV-viewing experience.
At Logitech, revenue declined from $2.3 billion in 2007 to $1.9
billion in 2009.
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45. September 2010
Sony
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Using PlayStation
Consoles
Millions of PlayStation3 and PlayStation Portables
already connected to the internet, allows them to
download movies.
90 percent of Sony products would be able to connect to
each other and the Internet by 2011
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46. September 2010
YOUR FUTURE
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is all about . . .
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47. September 2010
Potential Disruptive Innovation
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Value-Chain
IMPACT
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Where do you want
to be on the curve
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49. September 2010
‘Chasm’
Response Delay Impacts –
The
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Survival, Relevance & Value!
1 2 3 4 5
Visionaries Early Early
& Leaders Adopter Majority Late Majority Skeptics – 16% of
2.5% 13.5% 34% 34% total population
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gaining and maintaining
Control . . .
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Vision
Mission
Purpose
September 2010
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52. September 2010
Embracing being different!
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What Now
September 2010
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What Decisions Do
You Plan to Make?
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55. Copyright 2010 SMITH-TRG, All rights reserved. September 2010
For value creation assistance, e-mail
RDSmith@SMITH-TRG.com
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