Major industry trends such as the explosion of user generated content, access to and delivery of premium content, cloud-based storage, device innovation, ubiquitous broadband connectivity and social networking, are all converging – creating an opportunity for new digital content experiences. By taking the right approach, operators and device makers can deliver a lifetime of digital content experiences, creating compelling, digital content service offerings that extend the customer relationship beyond the handset. During this webinar, Steve French, VP Global Marketing at NewBay, will explore: - Convergence of industry trends and what this means for traditional telecom players like operators and device makers - Defining the new user content ecosystem - Understanding the various digital content services - New players and their business models - Monetizing user content services

1. Leveraging Digital Content Services to
Increase Customer Lifetime Value
A strategic blueprint for success for operators &
device makers
24 May 2011
© 2011 NewBay Software

2. NewBay Fast Facts
 Our vision:
 All user content stored in the cloud, shared and available
from any device, anywhere
 What we do:
 We provide an open, white‐label software platform that
powers cloud‐based services for storing, sharing, accessing
and organizing digital content from any device
 Company Overview:
 Founded 2002
 Investors: Fidelity Growth Partners Europe & Balderton
Capital
 Europe – Dublin (HQ), London & Dusseldorf
 Americas – Seattle (Americas HQ) & Atlanta
 Asia‐Pac – Seoul & Sydney
 250 plus employees globally
© 2011 NewBay Software 2 Confidential

3. Today’s Speaker
 Steve French, VP Global Marketing
 Responsible for all corporate & product marketing
 Plays an important role in developing strategic
initiatives and overall company stewardship
 Former Marketing Director at Tekelec
 Held several product marketing roles at Hatteras
Networks, Tellium & Nortel Networks.
 US Naval Flight Officer
© 2011 NewBay Software 3 Confidential

4. Agenda
 Unprecedented change
 New user content ecosystem & services
 Changing business models
 The NewBay approach
 Monetizing user content services
 Summary
 Additional resources
© 2011 NewBay Software 4 Confidential

5. Unprecedented Change
© 2011 NewBay Software 5 Confidential

6. Content Growth Driven by User Content
880 billion gigabytes
User generated content in 2010
Growing
by a factor
of 44X
Digital Universe Study, Sponsored by EMC, May 2010
© 2011 NewBay Software 6 Confidential

7. Convergence of Trends
44X Growth Factor
Cloud‐based
Storage
12 TB of content per house
Device Content Explosion
Innovation UGC + Premium
Digital Content
Experience
Social
Broadband
Networking TXT
Everywhere
© 2011 NewBay Software 7 Confidential

8. New User Content Ecosystem & Services
© 2011 NewBay Software 8 Confidential

9. © 2011 NewBay Software 9 Confidential

10. User Content Services
© 2011 NewBay Software 10 Confidential

11. Evolution of Backup Services...
1 2 3
Content Content
Content
Backup & Management
Sync
Restore & Access
• Manual backup • Automatic sync • Search
• Scheduled backup via folder • Organize & share
• Restore monitoring • Create (playlists, slideshows)
• No online access • Sync content • Access & edit content
across multiple • Stream to multiple
devices devices/screens
• Online access for • Compose messages
download & share
© 2011 NewBay Software 11 Confidential

12. Changing Business Models
© 2011 NewBay Software 12 Confidential

13. Apple Strategy
Digital Life
delivered by Apple
Premium Content
3G WiFi Femto LTE/WiMAX DLNA/UpNP Windows 7 DSL FTTH Access & Networking
Multi Screen Lifestyle
User Can Churn Regardless of Network
Operator is a Pipe
© 2011 NewBay Software 13 Confidential

14. Google Strategy
Digital Life
delivered by
Premium Content
3G WiFi Femto LTE/WiMAX DLNA/UpNP DSL FTTH Access & Networking
Multi Screen Lifestyle
User Can Churn to any Google Service or Android Device
Operator is a Pipe
© 2011 NewBay Software 14 Confidential

15. Operator Challenges
Over-the-Top (OTT) Competition Traffic/Revenue Divergence
Device Makers Expand Offerings Diminishing Role of Operator
Transport Transport Transport Transport
Manage Manage Manage (Bit Pipe)
Bill Bill Bill
QoS QoS
Secure Secure
Voice
SMS
& Mobile IM
MMS & Email OTT Apps
© 2011 NewBay Software 15 Confidential

16. The Dilemma
Industry Initiatives
Operators have
many strengths IMS
JIL & OMTP
RCS WAC
 Brand
 World’s largest social networks
 Handset control & distribution CPM eRCS
 Content in network
 Identity & Authentication
 Billing Operator Initiatives
 Converged mobile, TV, Internet
 Scalability & reliability
 Analytics of real‐time data
but...
© 2011 NewBay Software 16 Confidential

17. The NewBay Approach
© 2011 NewBay Software 17 Confidential

18. NewBay LifeCache Portfolio
Mobile Web and Handset
Clients, Camera Pop-up,
Notifications
HTML5 Mobile Web
Widgets & HTML5 Web
Media Transfer and
Pop-up Notifications
LifeCache Platform + Developer Program + Hosting + Professional Services
© 2011 NewBay Software 18 Confidential

19. ©2010 NewBay Software
© 2011 NewBay Software 19

20. Comparison of User Content Services
© 2011 NewBay Software 20 Confidential

21. Monetizing User Content Services
© 2011 NewBay Software 21 Confidential

22. The Cumulative Value of User Content
Subscriber Value
• Most valuable content
• Protected forever
Accelerators • Access & share from any
Content Stored/Managed
device
•Value increases as content
•Increased media size accumulates
•Increased usage of video
•Socialization of content
•Premium content library Provider Value
• Proven anti‐churn effect
• Auto‐cumulative
Cumulative • Montetizable over lifetime
Content Value • Metadata, analytics, BI &
advertising opportunities
Time
© 2011 NewBay Software 22 Confidential

23. Service Monetization Options
Service Subscription
Increased Data Usage
Higher Messaging Usage
Advertising
Deal‐of‐the‐Day (e.g. Groupon)
Premium Content Sales or Rentals
Service Add‐ons and/or Upgrades
Transaction Charges
Retention (Subscription) Savings
Drive High‐end Device Sales
'Cost per Gross Add' Savings
Reduction in Customer Care Costs
$‐ $1.00 $2.00 $3.00 $4.00 $5.00 $6.00
Potential Revenue Scenario
Subscription $2.99
Data Usage $5.00
Premium Content $2.00
PLUS INCREASE IN
Deal-of-the-Day $1.60
CUSTOMER LIFETIME
$11.59 VALUE
Per Subscriber
Per Month
© 2011 NewBay Software 23 Confidential

24. Summary
 Unprecedented change…
 Enabling a new user ecosystem
 Creating new opportunities & services
 Driving new competition and unsettling the status quo
 And forcing changing in the business models of traditional players
 New landscape supports a diverse monetization model
 NewBay can help you become the ‘hub’ of the new user
content ecosystem
© 2011 NewBay Software 24 Confidential

25. Additional Resources
 Visit us: www.newbay.com
 NewBay blog: www.newbay.com/blog
 http://www.newbay.com/registration
 User Content Services comparison
 User Content Ecosystem poster
 White papers, brochures, etc.
 Contact: sfrench@newbay.com
Download Free White Paper
www.newbay.com/registration/whitepapers.php
© 2011 NewBay Software 25 Confidential

26. Enabling a Lifetime of Content
Experiences
© 2011 NewBay Software 26 Confidential