The document discusses the evolution and impact of media and entertainment trends from 2006 to 2013, including global spending projections and the rise of digital media. It emphasizes the importance of mobile devices as primary access points to the internet and the role of consumer influence in product development. Additionally, it highlights the globalization of the entertainment marketplace and the significant growth in international box office grosses for Hollywood films.

1. S t u a r t W. Vo l k o w
VP Strategy and Development
www.theinstitute.tv
UCLA Entertainment Studies
svolkow@ucla.edu
Copyright 2011, Stuart W. Volkow Media Marketplace
1

2. Media & Entertainmnet
M e g a t r e n d s
1
2
Stuart W. Volkow, Copyright 2009
2

3. Piero Golia
Copyright 2009 Stuart Wayne Volkow. Xtropia Partners
3

4. “The computer will disappear
into the environment. …all these
devices will be connected to the
wireless Internet.”
Bill Gates
4
Stuart W. Volkow, Copyright 2009
4

5. • “Societies have always been shaped more by
the nature of the media by which men
communicate than by the content of the
communication.”
• “The new electronic interdependence recreates
the world in the image of a global village.”
11/13/2006 Copyright 2006 Stuart Wayne Volkow 5
5

6. “Media, by altering the environmont, evoke in us unique
ratios of sense perceptions. The extension of any one
sense alters the way we think and act- the way we
perceive the world”.
Copyright 2010 Stuart W. Volkow 6
6

7. Opportunities for Semiconductor / Hardware / Software / Services
Car Electronics Mobile
Computing Growth Drivers Over Time, 1960 – 2020E GPS, ABS, A/V Video
Home
1,000,000 Entertainment
Mobile Consumer Games
100,000 Wireless Home
Devices / Users (MM in Log Scale)
Appliances
n Cellphone /
atio Desktop Internet Smartphone
10,000 r
t eg Kindle
n
gI
1000
asin PC 10B+
Tablet
re
100 Inc Units??? MP3
Cell phone /
Minicomputer 1B+ Units / PDA
Users
100MM+
10
Units
Mainframe
10MM+ Units
1
1MM+ Units
1960 1970 1980 1990 2000 2010 2020
7
Note: PC installed base reached 100MM in 1993, cellphone / Internet users reached 1B in 2002 / 2005 respectively;
Source: ITU, Mark Lipacis, Morgan Stanley Research. 32
Stuart W. Volkow, Copyright 2009
7

8. UN Stats
The Global Picture
• World Population: 6.6
Billion
• Total Phone Lines: 4
billion
• Mobile Accounts: 2.68
billion
• 574.63 million in PRC
• People Living on less than
$1/day: 900 Million
8
8

9. Content Distribution Advertising Infrastructure Services
MSOs Agencies Satellites Google
Studios
Telcos Interactive
Spectrum Amazon
Networks Agencies
DBS Online Ad Skype
Community Data Centers
Networks
Broadcast Facebook
Brands Fiber
P l a t f o r m s
HTML Android IPV6 FLASH iOS
9

10. PWC
http://www.pwc.com/outlook
Copyright 2010, Stuart W. Volkow Media Marketplace 10
10

11. PWC
E & M Outlook 2009-2013 FINDINGS
• Global entertainment and media spending will
rise to $1.6 trillion in 2013, amounting to 2.7%
compound annual growth driven by digital
gains
• U.S. will underperform the world at a 1.2% CAGR
rate to reach $495 billion in 2013
• Digital media revenue will expand from 17% of
U.S. revenue in 2008 to 25% by 2013
• There is a downward pressure on ad rates in the
digital environment: Over capacity, falling demand
PricewaterhouseCoopers' annual "Global Entertainment and
Media Outlook 2009-2013."
Copyright 2010, Stuart W. Volkow Media Marketplace 11
11

12. E & M Outlook 2009-2013 FINDINGS
• TV advertising is declining 0.6%, with recorded
music expected to drop 4.7% on a compound annual
basis.
• Ability to monetize brand/rights across platforms is
Critical for Success. music labels monetize events,
producers go into talent management, broadcasters go
into Web TV, leveraging branding, and customer data
they own and/or can collect.
• Consumers’ rising influence
Companies are increasingly listening to their consumers and
involving them in product development.
Copyright 2010, Stuart W. Volkow Media Marketplace 12
12

13. E & M Outlook 2009-2013 FINDINGS
New platforms are boosting consumption of old content
• Innovation in devices and applications is enhancing the
experience of the consumption of content.
• Early adopters of tablets read more and access more content,
suggesting that tablets could prompt a revival in book
reading.
• HDTV is supporting television revenues, 3-D is boosting film,
and authorized music sites are steadily restoring the value of
recorded music that was lost to illegal peer-to-peer
downloading.
Copyright 2010, Stuart W. Volkow Media Marketplace 13
13

14. The Internet is Becoming the
Dominant Media Platform
Worldwide
14

15. Total Internet Users
Worldwide
1,966,514,816
2000-2010 Growth
444.8 %
www.internetworldstats.com
Active
Digital Media Universe
May ’09
381,285,866
Nielsen
15
15

16. Copyright 2007 Stuart Wayne Volkow. Xtropia Partners
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17. Most of the World’s Internet Traffic Travels
By Submarine Cables
www.telegeography.com
17

18. Copyright 2007 Stuart Wayne Volkow. Xtropia Partners
18

19. Pew Internet and American Life Project
11/13/2006 Copyright 2006 Stuart Wayne Volkow 19
19

20. Why The “BRIC” Countries are Important
2/3 of the Worlds Pop. in 15 Countries
Copyright 2007 Stuart Wayne Volkow. Xtropia Partners
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21. Copyright 2007 Stuart Wayne Volkow. Xtropia Partners
21

22. 11/13/2006 Copyright 2006 Stuart Wayne Volkow 22
22

23. 23

24. “The mobile device will be the primary
connection tool to the internet for most
people in the world in 2020. “
The Future of the Internet III, The Pew Internet and American Life
Project (www.pewinternet.org).
24

25. “...we view the mobile Internet, and
related device proliferation, as one of
the biggest opportunities in the history
of the technology industry.
The opportunity to connect the 4+ billion
mobile device users to the Internet is
arguably 40x the opportunity to connect
100 million PCs to the Internet in the
1990s.”
MORGAN STANLEY RESEARCH
NORTH AMERICA, Apple Report, May 2009
25
Stuart W. Volkow, Copyright 2009
25

26. The Dominant
Internet
Platform
Will be
Wireless/
Mobile
26
26

27. 27

28. 28

29. 29

30. Impact of Google SMS
Kisaakye Bukenya who heard about MTN Google SMS
from staff training, asked over 6 000 community members
about HIV/AIDS: how one can get infected with the
virus, how to prevent infection, how to care for someone
infected with the virus and more. This information
prompted him to get tested at Mulago Kitoni, a clinic near
his home in rural Masaka, Uganda
30

31. 31

32. iPhone + iTouch Users = 8x AOL Users 8 Quarters After Launch
iPhone + iTouch vs. NTT docomo i-mode vs. Netscape vs. AOL Users
First 20 Quarters Since Launch
~57MM
60 Mobile Internet Desktop Internet
iPhone + iTouch Netscape*
50 Launched 6/07 Launched 12/94
40
Subscribers (MM)
~25MM Mobile Internet
30 NTT docomo i-mode
Launched 6/99
20
~11MM
Desktop Internet
10
AOL*
~7MM v 2.0 Launched 9/94
Q1 Q3 Q5 Q7 Q9 Q11 Q13 Q15 Q17 Q19
Quarters Since Launch
iPhone + iTouch NTT docomo i-mode AOL Netscape
32
Note: *AOL subscribers data not available before CQ3:94; Netscape users limited to US only. 33
Source: Company Reports , Morgan Stanley Research.
Stuart W. Volkow, Copyright 2009
32

33. 2010E Inflection Point, Penetration >20%
Global 3G+ Subscribers & Penetration, 2007 – 2014E
3,500 43% 45%
2010E: Inflection Point
3G+ Penetration Reaches
38% 40%
3,000 Sweet Spot
2,776
33% 35%
2,500 2,348
3G+ Penetration (%)
27% 30%
3G+ Users (MM)
1,928
2,000 25%
21%
1,503
1,500 20%
15%
1,055 15%
1,000 11%
8% 688 10%
430
500
273 5%
0 0%
2007 2008 2009E 2010E 2011E 2012E 2013E 2014E
3G+ Users 3G Penetration
33
Note: 3G+ technologies include WCDMA, HSPA, TD-SCDMA, 1xEV-DO, LTE and WiMax.
Source: Ovum, Morgan Stanley Research. 35
Stuart W. Volkow, Copyright 2009
33

34. Global Mobile Phone Subscribers
to Reach 4.5 Billion by 2012
34

35. On the typical day, nearly one-fifth
(19%) of Americans use the internet
on a mobile device.
The Future of the Internet III
Dec 4, 2008 (Pew)
35

36. Evolving Competing Wireless Standards
EVDO
WiMax
3G HSPA / HSDPA 3.5 G
(high speed downlink packet access)
4G?
36
36

37. 4G
37

38. 38

39. The Ascent of Smartphones
From Geek to Chic
January 2005 February 2009
45 models 202 models
Source: Levi Shapiro
www.m-e-f.org (Mobile Entertainment Forum) 0
39

40. Smartphone Owners (Millions)
JA
N
0
2
4
6
8
10
12
14
16
FE 200
B 5
M 20
AR 05
AP 200
R 5
M 200
AY 5
JU 200
N 5
2
JU 00
L 5
AU 20
G 05
SE 200
P 5
O 200
C
T 5
N 20
O 05
V
D 20
EC 05
JA 200
N 5
FE 200
B 6
M 20
AR 06
AP 200
R 6
M 200
AY 6
JU 200
N 6
2
JU 00
L 6
AU 20
G 06
SE 200
P 6
O 200
C
T 6
N 20
O 06
V
D 20
EC 06
JA 200
N 6
FE 200
B 7
M 20
AR 07
AP 200
R 7
M 200
AY 7
JU 200
N 7
2
Smartphone Adoption*, Jan'05 to April'08, US
JU 00
L 7
AU 20
G 07
SE 200
P 7
O 200
C
T 7
N 20
O 07
V
D 20
EC 07
JA 200
N 7
FE 200
B 8
M 20
AR 08
AP 200
R 8
20
08
40

41. Motorola Atrix Dual Core
T-Mobile’s G1
Nokia’s 5800 Android Android
41

42. Apple Mobile Share Should Surprise on Upside Near Term
Near term, Apple is driving the platform change to mobile
computing. Its mobile ecosystem (iPhone + iTouch + iTunes +
accessories + services) market share / impact should surprise on
upside for at least the next 1-2 years.
Long term, emerging markets competition, open mobile web
(paced by likes of Google Android) and carrier limitations pose
challenges. RIM likely to maintain enterprise lead for 1-2 years
owing to installed base.
Morgan Stanley Presentation from Web 2.0 Summit
37
42
Stuart W. Volkow, Copyright 2009
42

43. Fastest Hardware User Growth in Consumer Tech History
Global Cumulative Unit Shipments in First 10 Quarters
iPhone + iTouch vs. Wii / DS / PSP / iPod / BlackBerry
60
Nintendo Wii
Cumulative Unit Shipments (MM)
50
Apple
iPhone + iTouch Nintendo DS
40
Sony PSP
30
20
Apple RIM
iPod Blackberry
10
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10
Quarters Since Launch
43
Note: iPhone launched in CQ2:07; iTouch launched in CQ3:07; iPod launched in CQ4:01; Wii launched in CQ4:06; DS
launched in CQ4:04; PSP launched in CQ1:05; Blackberry smartphone launched in C2002. Source: Apple, Nintendo, Sony,
38
RIM, Katy Huberty, Morgan Stanley Research.
Stuart W. Volkow, Copyright 2009
43

44. The iPhone Changes Behavior
Service Penetration, Market v. iPhone
Owners,
51% iPhone
Social Network/Blogs
5%
Market
31%
Video
6%
74%
Music
8%
88%
Browsing
14%
32%
Playing Games
21%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percent Phone Owners Using Service in Month
44

45. Open Mobile Video Coalition
800+ TV Stations and Growing ...
800+ TV Stations, 4 Networks, ~100MM Homes Passed,
Public and Commercial Stations, NAB / MSTV / ATSC Coordination
Confidential Property of the Open Mobile Video Coalition—Not for Distribution Without Authorization
45

46. Apps as a Medium
75,000 iPhone Apps, 1.8 billion downloads,
$200 million USD in August 2009
46

47. 47
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48. 48
Stuart W. Volkow, Copyright 2009
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49. 49
Stuart W. Volkow, Copyright 2009
49

50. Apple’s iPad Sales
Accelerate: Three Million
Sold in 80 Days
50

51. Copyright 2010, Stuart W. Volkow Media Marketplace 51
51

52. How Many iOS Devices Have
Been Sold as of Jan 2011?
160 million!
8 million iPads
Copyright 2010, Stuart W. Volkow Media Marketplace 52
52

53. Who Has More Cash, Apple or
Microsoft?
• Microsoft: 43.25 Billion (Yahoo Finance)
• Apple: $39.8 billion in cash and short-term
investments (Apple Jan 25 Earnings Call)
Copyright 2010, Stuart W. Volkow Media Marketplace 53
53

54. Globalization of the
Entertainment Marketplace
Hollywood Economic
Challenges
Copyright 2010 Stuart W. Volkow 54
34
54

55. • More than 50% (60%?) of Hollywood B.O. Gross is
International
• The entertainment industry is growing fastest in
the Asia-Pacific region, which will see a 6.8%
annual growth rate
• Asia Pacific has been the second TV market after
North America for more than a decade.
Copyright 2010 Stuart W. Volkow
55

56. Universal joins the $1 billion club.
THR, 14 August 08
“Third studio to reach international
milestone in '08. Paramount International
Pictures hit the mark on June 17, and
20th Century Fox International and
Warner Bros. Pictures International joined
on July 9 and July 19, respectively.”
Globalization has raised the financial
importance of many overseas markets,
including Russia and Brazil—both of
which are among the top 10 markets for
"Avatar," WSJ, 5 Jan 2010
Copyright 2010 Stuart W. Volkow 56
34
56

57. Domestic: $600,788,188 32.6% +
Foreign: $1,242,091,767 67.4%
===========================
Worldwide: $1,842,879,955
Copyright 2010 Stuart W. Volkow 57
57

58. In 2006, six films accounted for
nearly 30% of all the major
studios’ international grosses
Copyright 2010 Stuart W. Volkow
58

59. “Tentpole” Hits Are Still Hollywood’s Engine
$306 Million $471 Million
$244 Million
!
Est. Gross % Share Gross
1. ! WARNER BROS. ! $2101 ! 14.1%
2. ! UNIVERSAL ! $1664 ! 11.2%
3. ! 20TH CENTURY FOX !$1518 ! 10.2%
4. ! PARAMOUNT ! $1402 ! 9.4%
5. ! BVI !$1246 ! 8.4%
Copyright 2010 Stuart W. Volkow 59
34
59

60. Domestic Total as of Foreign Total as of
Jan. 4, 2010: Jan. 4, 2010:
$360,209,452 $702,942,307
Copyright 2010 Stuart W. Volkow 60
60

61. Behind Momentum of
'Avatar' Are Big Sales
Boosts From Abroad
By ETHAN SMITH, ALAN
CULLISON And MAX
COLCHESTER
Copyright 2010 Stuart W. Volkow 61
61

62. Total Lifetime Grosses
Domestic: $163,214,888
33.1%
+ Foreign:
$330,000,105
66.9%
= Worldwide: $493,214,993
Domestic Summary
Opening Weekend:
$61,235,105
(#1 rank, 3,777 theaters, $16,213 average)
% of Total Gross: 37.5%
Widest Release:
3,802 theaters
Close Date:
July 22, 2010
In Release:
112 days / 16 weeks
Copyright 2010 Stuart W. Volkow 62
62

63. Digital Cinema
Stuart W. Volkow
63

64. Copyright 2010 Stuart W. Volkow 64
64

65. Electronic Projection
DLP
65

66. Christie Digital
2048x1080
66

67. •SONY CRX
SONY SXRD 4 K Projector- Fantastic!!
67

68. Digital Cinema Server with a Digital Cinema
Distribution Master. 180 GB for “CASANOVA”
68

69. Christie 2K Digital Projection System
At The Entertainment Technology Center, Hollywood CA.
69

70. 70

71. 71

72. In Moscow, 3-D screenings of "Avatar" have
been booked for a week in advance, and some
theaters have scheduled screenings at 3 a.m.
and 5:30 a.m.
Tickets for 3-D screenings typically cost about
50% more than for a two-dimensional movie,
a fact that has fueled the sales numbers for
"Avatar." About 30% of the screens outside the
U.S. are showing the picture in 3-D, according
to distributor Twentieth Century Fox; those
have generated 64% of the movie's
international total.
WSJ, 5 Jan 2010
Copyright 2010 Stuart W. Volkow 72
72

73. 3D Digital Cinema
 CHICKEN LITTLE
 MEET THE ROBINSONS
 BEOWULF
 JOURNEY TO THE CENTER OF
THE EARTH
 U2
 HANNAH MONTANA & MILEY
CYRUS
Concerts and  FLY ME TO THE MOON
Sports Events  AVATAR
 MONSTERS VS ALIENS
 9 3D movies planned from Pixar/
Disney
Stuart W. Volkow
73

74. Gaming and
Gamification
74

75. $22 Billion USA 2008
75

76. 76

77. Bestselling Game in the USA Jan, Feb ‘09
6 million units of Wii Fit
77

78. 8 million sold in its first quarter
78

79. 79

80. 80

81. Trends...
Online, Casual,
Social,Mobile
STEAM App Store
81

82. 82

83. Social media
Copyright 2010 Stuart W. Volkow 83
34
83

84. Chris DeWolfe
Tom Anderson
84

85. $580 million
NYT, June 16, 2009, 1:34 PM
MySpace Cuts Work Force by 30
Percent
By BRAD STONE
$15 Salary million over two yrs
85
85

86. http://tctechcrunch.files.wordpress.com/2011/01/facebookgraph-r7big.jpg
Copyright 2010 Stuart W. Volkow
86

87. 26 yr old Facebook
Billionaire
Mark Zuckerberg
USERS:
2006: 7 million
2007: 40 million
2010: 500 million
Authenticity of ID
Opt-In News Feed
Open APIs
Microsoft would pay $240 million
for a 1.6 percent stake in
Facebook. The investment values
Facebook, Copyright 2007 Stuart Wayne Volkow. Xtropiahalf
which is three and a Partners
years old and will bring in about
$150 million in revenue this year, at
$15 billion. NYT, 10/14/07
87

88. Copyright 2007 Stuart Wayne Volkow. Xtropia Partners
88

89. Copyright 2007 Stuart Wayne Volkow. Xtropia Partners
89

90. Largest Share Gainer of Online Usage Over Past 3 Years
Share of Global Online Time Spent, 6/06 – 8/09
14%
12%
% Share of Global Minutes
10%
8%
6%
4%
2%
0%
6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09
Yahoo.com Msn.com Google.com YouTube.com Facebook.com
Copyright 2007 Stuart Wayne Volkow. Xtropia Partners
Source: comScore global, 8/09. 4
90

91. 91

92. Copyright 2007 Stuart Wayne Volkow. Xtropia Partners
92

93. Copyright 2007 Stuart Wayne Volkow. Xtropia Partners
93

94. Transformation of
the Television
Industry
Stuart W.Volkow 2007
94

95. From Fortune Magazines 25 most Powerful People In
Business:
Steve Jobs, Apple
Rupert Murdoch, News Corp
Bob Iger, Disney
Jeff Imelt, GE
Schmidt, Page, Brin, Google
11/13/2006 Copyright 2006 Stuart Wayne Volkow
95

96. Copyright 2010, Stuart W. Volkow Media Marketplace 96
96

97. Copyright 2008, Stuart W. Volkow TV Reborn 97
97

98. CATV Largest MSOs
>80% subs
‣US CATV Revenue: 86 Billion USD
‣26 Billion USD in Advertising
‣Source: NCTA.com
Copyright 2010, Stuart W. Volkow Media Marketplace 98
98

99. DBS
32 million subs
Copyright 2010, Stuart W. Volkow Media Marketplace 99
99

100. Te l c o s
Copyright 2010, Stuart W. Volkow Media Marketplace 100
100

101. assets and cash estimated at $6 billion to $7 billion
Copyright 2010, Stuart W. Volkow Media Marketplace 101
101

102. Copyright 2010, Stuart W. Volkow Media Marketplace 102
102

103. 103

104. Digital Mobile TV
MobiTV subscribers will reach
seven million this year, or about 2%
of all U.S. cellphone users.
AT&T Mobile TV
AT&T CV
DVB-H
DMB (470-750MHz)
104

105. 105

106. 1 billion
served
(per day)
Sold to Google
for $1.65B
★ 52% of U.S. users use a
video sharing site (May ’08)
★ 27% of online video
consumers use YouTube
★ 49% of online viewers
18-29 use YouTube
Pew Survey Chad Hurley
106
Chad Hurley
106

107. YouTube: We’re Bigger Than
You Thought
By Miguel Helft ,October 9, 2009, New York
Times
The company released more precise viewing
figures than it had in the past, saying it serves
more than 1 billion videos a day, or roughly
30 billion in a month.
The post appeared intended, in part, to rebut a
much-quoted report by Spencer Wang, a Credit
Suisse analyst, who predicted that YouTube
would lose $470 million in 2009.
107

108. 36% of recent Internet users have
watched a TV show or other video
stream online, compared to 28%
at the end of 2005, while three-
quarters of these adults have done
so in the past 30 days.
Ipsos “Face The Web Report”
108

109. CES 2010 CES 2011
109
Stuart W. Volkow, Copyright 2009
109

110. Anywhere.....
Satellite TV Company Echostar
Acquired SLING MEDIA in 2007
for $380 Million
110
110

111. VOD over the Internet
Copyright 2010 Stuart W. Volkow
111

112. Copyright 2010 Stuart W. Volkow 112
112

113. TODAY DIGITAL DISTRIBUTION HAS TAKEN A
COMPLETELY DIFFERENT COURSE WITH THE
POPULARITY OF INTERNET SITES AND VIDEO ON
DEMAND
Stuart Wayne Volkow, Copyright 2009 113
113

114. 114
114

115. Original Content with Distribution
Copyright 2009 Stuart Wayne Volkow. Xtropia Partners
115

116. Home Media Networking, IP TV,
7/15/06
Copyright Stuart W. Volkow 2006
116
Media Connector ?
116

117. http://www.youtube.com/watch?
v=vS0la9SmqWA&feature=player_embedded
117

118. 118

119. 2/3 Screen Experience
We estimate that over 66 million US consumers are
simultaneously using a PC while watching TV. With
broadband service becoming nearly ubiquitous, and
consumers using a PC while watching TV,
Copyright 2008, Stuart W. Volkow TV Reborn 119
119

120. Marketing and
Advertising Budgets
Are Shifting
120
Stuart W. Volkow, Copyright 2009
120

121. $23 Billion
Google’s Ad
Revenue ’09
$70 Billion Annual TV
Advertising Revenue in USA
>20 Billion to $26.8 Billion
major Networks Internet Ad
Spend ’10
(CPG and Auto are largest)
CATV Newspapers
$34 Billion
26 Billion (2008)
121
121

122. PWC Internet Advertising Revenue Report
“The fundamentals of interactive advertising spend continues to be positive and I would expect to
see continued growth in the future.” said David Silverman, partner, Assurance,
PricewaterhouseCoopers “The cyclical fourth quarter to first quarter drop in traditional media
advertising spend, combined with an overall economic slowdown, resulted in a not so unexpected
first quarter slowdown in the growth of online advertising.”
Copyright 2006 Stuart Wayne Volkow 122 11/13/2006
122

123. PWC, IAB Internet Advertising Revenue Report 2008 Full
Year Results
123

124. Copyright 2010, Stuart W. Volkow Media Marketplace
124

125. IN CONTEXT ADVERTISING Works
Revenue (ttm): 22.68B
Revenue Per Share (ttm): 71.861
Qtrly Revenue Growth (yoy): 7.30%
Gross Profit (ttm): 13.17B
EBITDA (ttm): 9.24B
Net Income Avl to Common (ttm): 4.93B
Diluted EPS (ttm): 15.504
Qtrly Earnings Growth (yoy): 27.10%
ttm = Trailing Twelve Months (as of 6 Jan 2010)
yoy = Year Over Year (as of 6 Jan 2010)
(from Yahoo Finance)
125

126. USA Trends
Stuart Wayne Volkow, Copyright 2008 126
126

127. 2007-2008
U.S. Census Bureau
Population 300 million
HHs 116.8 million
Within Major Cities 39 million
Persons / HH 2.59
% < 18 24.8
% > 65 12.4
Hispanic 14.4
Black 12.8
Median HH income $50,303
Per Capita Income $27,000
Rank in UNDP Index 19
Copyright 2007 Stuart Wayne Volkow. Xtropia Partners
Table 1.
Income and Earnings Summary Measures by Selected Characteristics: 2007 and 2008
(Income in 2008 dollars. Households and people as of March of the following year. For information on confidentiality protection, sampling error,
nonsampling error, and definitions, see www.census.gov/apsd/techdoc/cps/cpsmar09.pdf)
Percentage change in
2007 2008 real median income
(2008 less 2007)
Characteristic
Median income Median income 127

128. Pew Internet & American Life Project
Feb-March ’07 Survey
% of USA Population Activities by % of Users
who Use the internet Email 91
Total Adults 71% Search for Info 91
47% have “high-speed” access
-------------------------- Get Map/Directions 86
Women 70 Medical Info 80
Men 71 Weather 78
-------------------------- Buying Research 78
Age
Travel 73
18-29 87%
30-49 83 News 72
50-64 65 Watch a Video Clip 56
65+ 32
Recieve a Video Link 75
Copyright 2007 Stuart Wayne Volkow. Xtropia Partners
View Video Daily 19
128

129. woman, and child in a particular group. It is derived by dividing the total income of a particular group by the total population in that group (excluding patients or inmates in
institutional quarters).
Source: U.S. Census Bureau, Current Population Survey, 2008 and 2009 Annual Social and Economic Supplements.
Figure 1.
Real Median Household Income by Race and Hispanic Origin: 1967 to 2008
2008 dollars Recession
80,000
70,000
$65,637
60,000
Asian
$55,530
50,000 $50,303
White, not Hispanic
All races
40,000
$37,913
Hispanic (any race) $34,218
30,000
Black
20,000
10,000
0
1959 1965 1970 1975 1980 1985 1990 1995 2000 2008
Note: Median household income data are not available prior to 1967. For information on recessions, see Appendix A.
Copyright 2007 Stuart Wayne Volkow. Xtropia Partners
Source: U.S. Census Bureau, Current Population Survey, 1968 to 2009 Annual Social and Economic Supplements.
U.S. Census Bureau Income, Poverty, and Health Insurance Coverage in the United States: 2008 7
129

130. Copyright 2007 Stuart Wayne Volkow. Xtropia Partners
130

131. Gen X Vs Millennial Media Consumers
Gen X Millennials
Born 1965-1976 Born 1977 – 1998
51 million 75 million
Accept diversity Celebrate diversity
Pragmatic/practical Optimistic/realistic
Self-reliant/individualistic Self-inventive/individualistic
Reject rules Rewrite the rules
Killer life Killer lifestyle
Mistrust institutions Irrelevance of institutions
PC Internet
Use technology Assume technology
Multitask Multitask fast
Latch-key kids Nurtured
Friend-not family Friends = family
Casual, friendly work Structured, supportive work
environment environment
· Involvement · Personalized work
· Flexibility and freedom · Interactive relationship
· Work as A place to learn · High demands & expectations
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132. 75 Million Millennials in USA
‣ Tech Savvy Digital Natives
‣ Optimistic
‣ First Gen to take computers for granted
‣ Excellent Ability to Filter Out Advertising
‣ Hard to Impress
‣ The Internet is their most important
medium
Copyright 2007 Stuart Wayne Volkow. Xtropia Partners
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133. C o n s u m e r E l e c t ro n i c s
http://gallery.me.com/svolkow100330
133

134. 134

135. 135
Copyright Stuart W. Volkow 2006 7/15/06
135

136. 136

137. Restructuring of The
Music Business
Most people are getting music from their
friends — either burning CDs or ripping digital
files. And despite the record industryʼs
crackdown, there is no reduction in the
number of people of peer-to-peer file sharing
service. NPD Market Research 2008
Will movies / TV be next?
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