P2P P2P eCommerce Media Distribution INTENT MediaWorks October 7th, 2005 Carlson School of Management MIS Research Seminar Minneapolis, MN CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client/Partner. © 2005 INTENT MediaWorks, INC.. All rights reserved. All registered trademarks are the property of their respective owners. Background • Les Ottolenghi, CEO: co-founder of INTENT MediaWorks • CEO of AgentWare, Inc.: leading travel search technology • Vice President of Information Technology and Electronic Commerce for Carlson Wagonlit Travel (developed network tying more than 5,000 travel agents directly to travel suppliers via the Internet • Holiday Inn Worldwide (launch of the first Internet-based reservations system in the travel industry) • 1998 Information Week nominated Ottolenghi for CIO of the Year • United Nations advisor ecommerce • Co-Author of eMarketing Book • Adjunct professor at Emory University teaching technology and business strategy; • Bachelor’s degree Duke University • M.B.A. Emory University's Goizueta School of Business • White House, U.S. Senate, FTC, U.S. Supreme Court Page 1 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. State of the art for P2P… Page 2 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. P2P state of the Art….Piracy!!! • Napster • RIAA Suing Grandma’s & Teenagers • MGM v. Grokster • Cease & Desist • It’s Much More! Page 3 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Trends & Predictions • “The Telephone has too many short comings to be seriously considered as a means of communication. The device is inherently of no value to us.” ◊ Western Union --- 1876 • “Who the hell wants actors to talk?” ◊ H.M. Warner Brothers, 1927 • “Computers in the future may weigh no more than 1.5 tons.” ◊ Popular Mechanics, 1949 • “640K ought to be enough for anybody.” ◊ Bill Gates, 1981 Page 4 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Trend Watching… • Information Rules • Tech Trends • Quadriviums Page 5 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Technology Business Rules • Information Rules · · · · · · · • Page 6 Tech Trends Disruptions · Adoption Curves · Syndication Look Up & Discovery Trust Brokering Broadband Wireless & Wifi · Web Services · WiFi, Watch the Military: Sensor overload · Secure Distributed Media Watch the Gaming World · Behavioral Targeting · Broadband Applications · Media Rich Applications · Wikis Hardware · Wireless Broadband Software · Social Nets. Media/Information · Swarming Connectivity · P2P · Skype & VOIP Network Effects Quadriviums · · · · • CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. No predictions…just trends… Page 7 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. New Patterns of Media Production & Consumption Page 8 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. P2P Consumer Trends •P2P Network •Estimated Avg # of consumers at any time •eDonkey 2 to 4 Million •Kazaa/Altnet 2 to 3 Million •Morpheus/Grokster 1 to 2 Million •Limewire 1 to 2 million •BearShare 1 Million •iMesh 900,000 •TrustyFiles 250,000 •Shareazaa 100,000 •Blubster 100,000 Page 9 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Let’s just be “trends”…P2P Networks Statistics • There are an estimated 250 Million P2P users worldwide • There are over 60 Million consumers who trade files via P2P monthly • The number of consumers on P2P networks doubled every year for the past 3 years • P2P is estimated to double for the next 5 years with the integration of digital video systems • 8.3 Million P2P consumers are online at any given moment • There is an estimated 10 Million Gigabytes of Data on the P2P networks a • About two-thirds (66%) of all searches are by media type Page 10 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. What’s going on? Page 11 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Not so Subtle differences • Client Server = WEB Page 12 • Distributed = P2P CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. What is P2P? • INTERNET Based • NOT the WEB · A peer-to-peer (P2P) network is basically a network, the power of which lies in the computers that are connected to it rather than in a central server or anything of the kind. • Files can be transferred between computers using various techniques, or protocols · · · · · BitTorrent Gnuetlla Gnutella2 Fastrack Overnet • Decentralized, or Distributed Computing Page 13 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Tech-Talk • Distributed system architecture · Decentralized control ◊ NOT A centralized system – Client/Server Architecture – Master/Slave models – Dumb terminals / Active broadcaster • • • • Typically many nodes, & heterogeneous • Scalable - avoids bottlenecks! • Controlled: local information storage • Anonymous & Replicable Takes advantage of distributed, shared resources (bandwidth, CPU, storage) Fault-tolerant, self-organizing Operates in dynamic environment, frequent join and leave is the norm Page 14 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Where did P2P come from? • 1969 - ARPANET · • First killer applications like FTP and Telnet were Client/server 1979 – USENET & GOPHER · · UUCP, NNTP, Gopher Decentralized control, avoid network flood, path header • 1994 – Commercial Web • 1999 - 1st Generation Commercial P2P: Napster. Created by Shawn Fanning in 1999. Napster, unlike modern P2P, used a central server. Because people used to share copyrighted material (obviously violating the copyright laws), Napster got into legal trouble. Finally, it was shut down in 2001. However, the idea remained. 2002 - The 2nd generation of P2P was decentralized --- no central server, the computers connect directly and therefore there is nothing to be shut down even in case copyrighted material was shared: eDonkey, Kazaa, iMesh, Shareaza and the like are 2nd generation p2p clients. • 2005 – MGM v. Grokster • 2006 - The 3rd generation is not yet well settled. Page 15 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. What’s What with architectures & techniques Page 16 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Tech-Talk: P2P Architectural Models • Centralized (Napster) • Decentralized · Unstructured (Gnutella) · Structured (Chord) • Hierarchical (MBone) • Hybrid (EDonkey) • Google is hiring P2P researchers http://www.broom.org/epic/ Page 17 YellowBrix CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. So why is P2P Important? • Workstations have considerable computing power (Moore's Law) • Workstations provide huge data storage capacity • The available bandwith is increasing steadily • Edge computing: benefit from the power at the edges of Internet • Decentralized applications can scale better (millions of users) • Nirvana: Low cost multiuser applications with endless resources Page 18 • According to several internet service providers, more than 50% of Internet traffic is due to P2P applications, sometimes even as much as 75%. • It is a paradigm shift from coordination to cooperation, from centralization to decentralization, and from control to incentives CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Why is P2P important to Society? • Organizational shift from hierarchical / centralized models to decentralized / network models • “The Rise of the Network Society”, Manuel P2P can enable the construction of worldwide communities • Example 1. Teaching: classical lecture/exam model Vs collaborative Example 2. Mass media: big and few broadcasters (TV, radio) Vs public user publishing (Web blogs, net radio, net TV) • technologies will promote the creation of worldwide user communities (social networks) • P2P will permit low cost learning • next generation of innovative killer applications. • P2P and collaboration Castells • • P2P technologies will enable a Example 3. Medical records sharing: sophisticated content publishing and distribution tools (net radio, net tv) secure, private and instantaneous Page 19 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. P2P Examples • • P2P killer applications: · USENET (NNTP) · Instant Messaging (?) · Napster, Gnutella, eMule · SETI@HOME, LHC@home · Groove (Collaboration), Ray Ozzie Buzzword: Grid Computing · OGSA(Open Grid Services • Problems ! · · Piracy P2P Worms and viruses • Good examples · · · · Skype ! BitTorrent Peercast (P2P Radio) Share It! by Bringing P2P into the TVDomain Architecture) · Like P2P, it aims to leverage peer computing resources · Widespread acceptance in many companies Page 20 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Where is P2P going ? Development Stage Period Primary Use • Internet 1.0: 1969-1979 Military • Internet 2.0: 1980-1993 Science, R&D • Internet 3.0: 1994-2000 WEB 1.0 • Internet 4.0: 2002-2010 WEB 2.0 Dist. Comp. • Internet 5.0: 2010+ Page 21 Integrated, Seamless Computing CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. P2P Commercialization & Use • B2B - Private exchanges for: ◊ Medical records, • B2C - Private & Open exchanges for: ◊ training manuals, ◊ Entertainment Media ◊ Travel ◊ Professional job search ◊ Collaborative ◊ Marketplaces ◊ Military manuals, computing, ◊ Grids computing ◊ Advertising ◊ Talent identification, ◊ Professional networks, ◊ Sub-Pub Media Page 22 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Technology Business Rules • Information Rules · · · · · · · • Page 23 Tech Trends Disruptions · Adoption Curves · Syndication Look Up & Discovery Trust Brokering Broadband Wireless & Wifi · Web Services · WiFi, Watch the Military: Sensor overload · Secure Distributed Media Watch the Gaming World · Behavioral Targeting · Broadband Applications · Media Rich Applications · Wikis Hardware · Wireless Broadband Software · Social Nets. Media/Information · Swarming Connectivity · P2P · Skype & VOIP Network Effects Quadriviums · · · · • CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. P2P Marketplace: Technology Map Page 24 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. CASE STUDY: The Entertainment Industry & P2P Page 25 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Commercial Disruption of the Entertainment Industry by P2P Page 26 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Commercial Disruption of the Entertainment Industry by P2P Page 27 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Commercial Disruption of the Entertainment Industry by P2P Page 28 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Industry Actions & Reactions • 1976 Copyright Act • Sony vs. Universal Studios (1984) – BETAMAX • Digital Millennium Act 1998 · Anticircumvention · Online Copyright Infringement Liability Act • Napster • RIAA & MPAA • US Congress • US FTC • Whitehouse • MGM v Grokster: 9th Circuit – Supreme Court (Inducement) Page 29 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Industry Issues • Protection of Rights via Protection of Content • Security • Licensing · Alignment of economics ◊ Channel Conflict ◊ Transferability ◊ Mobility · Mark Cuban · iTunes Pricing v. Industry · Hurdle Rate for Videos Page 30 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. The Current Situation – Music Sales Are In Decline • According to 2003 RIAA data, US retail music sales were about $990 million per month. • The industry's retail sales are forecast to continue to decline at a compound annual rate of 2.1% over the next 4 years. Music Industry Sales… $ …should be growing with GDP (+2.7%) …instead will continue to decline if no solution is implemented (-2.1%) "The root cause for this drastic decline in record sales is the astronomical rate of music piracy.… Computer users illegally download more than 2.6 billion copyrighted files (mostly recordings) every month. At any given moment, well over five million users are online offering well over 1 billion files for copying through various P2P networks.” Mitch Bainwol, RIAA CEO Page 31 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. The Music Industry’s Response v. P2P • The music industry is resisting P2P while encouraging online content in a limited way · Licensing content to non-P2P Internet sites for limited online distribution · Suing P2P software companies to slow technology proliferation · Lobbying Congress to curtail P2P expansion in various ways · Suing consumers to drive them away from P2P usage • But… · The major labels have not tried legitimate online sales of music in a domain that already has over sixty million users in search of content – the existing P2P marketplace. “If the music industry pursued a similar strategy in the offline world, the consequences would be devastating… If it refused to sell music through large chains like Wal-Mart, Target, and Best Buy – music sales would be crippled.” - DCIA Page 32 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. P2P Media Market Milestones • Social Networking meets • Electronic Commerce · Peer-to-peer traffic accounts for 50 MGM v. Grokster, 6/27/05 signaled beginning of commercial services · Illegal file trading networks dominated · Only legal commercial services to 70 percent of the data traffic on ISP networks - CNET News August 30, 2005 • P2P Consumer Market Size · 350MM P2P clients downloaded • 20MM simultaneous users/second Page 33 Open P2P: INTENT MediaWorks ◊ Closed P2P: INTENT MediaWorks, PeerImpact, Rukkus • Shutdown of Illegal Open P2Ps • Licensing of Major Label & Studio Music & Film: 9/1/05 • Skype (P2P) sells for $2Billion • Institutional Investment: 8/05 · 60MM Users North America · 250MM Users Worldwide ◊ · INTENT MediaWorks · BitTorrent · Others CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Case Study: INTENT MediaWorks A P2P Market Based Solution Page 34 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. P2P & INTENT Explained ONLINE EXPERIENCE INTENT MediaWorks P2P Explained Experience P2P - Demo P2P Demographics Page 35 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Video Page 36 INSERT CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Demo Links to INTENT • http://www.intentmediaworks.com/Sponsorships/SurpemeCourt.htm • Supreme Court Links • http://www.intentmediaworks.com/Distribution/P2P%20Explained2.swf • Distribution Explained • http://www.intentmediaworks.com/Technology/edonkey.htm • P2P explained • http://www.intentmediaworks.com/Distribution/edonkey.swf • IMW Search Optimzation explained • http://www.intentmediaworks.com/mysite/Videos/joanjett.html • AD Supported Example in SWF • http://www.intentmediaworks.com/mysite/Videos/paypal.html • Payfor example in SWF Page 37 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. What I do…& the world of P2P… • Animation Insert Page 38 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Flash Presentation INSERT Page 39 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. P2P Experience Page 40 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. P2P Experience with INTENT Page 41 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. How P2P Works for Consumers – Steps/Demo Step1: Search using P2P Software Page 42 Demo – YOU MUST BE ONLINE CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. How P2P Works – Steps/Demo Step 2: Song/Video Selection Page 43 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. How P2P Works – Steps/Demo Step 3: Preview & Download Page 44 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. How P2P Works – Steps/Demo Step 4: Accept License Terms & Download Page 45 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. How P2P Works – Steps/Demo Step 5: Play Media Page 46 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. INTENT’s Mission 1. Create the technologies & platform that enable new Digital Distribution of Media 2. Help marketers tap into and profit from advertising to the vast consumer community online in the file-sharing/P2P world 3. Integrate the viral power and authentic nature of peer-to-peer filesharing with e-commerce and advanced marketing technologies to generate brand awareness, drive web traffic, and engage consumers in acquisition oriented marketing programs Page 47 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Success Page 48 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Background to the mission • Digital Commerce: Distribution Technology Leader ◊ ◊ ◊ AgentWare, Inc.: www.agentware.net: Travel MetaSearch Careerfish, Inc.: www.careerfish.com: Job Search & Placement INTENT MediaWorks.com: Music, Film & Video via P2P • Recognized Leader in Legitimate P2P Media Distribution & Uses ◊ U.S. Senate,FTC,FBI, The White House ◊ U.S. Supreme Court: MGM v. Grokster 2005 • P2P Commerce Platform: Media & Applications ◊ Open P2P Media Distribution & Ad supported Sales ◊ Closed, Private Label P2P Networks ◊ Web to P2P Cross Selling Page 49 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Take a break….My Favorite… Page 50 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. INTENT MediaWorks: 2003-2005 • First & Largest Distributor of Licensed Media via Open P2P · Only end-to-end P2P Media · · · · · Distribution Technology Mass Encoding System Multiplatform DRM Delivery AD supported, Pay Per Download & Pay Per View Media Engine Search Optimization via P2P all major Protocols Agreement for content place within every major P2P software application ◊ Open ◊ Closed Page 51 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. How does DRM work? DRM perpetually tracks content/media as it is passed securely from person to person, with only authorized individuals being able to access the protected content. -- Who, Why, Where, When, How Much? Is all included in DRM -- Credit/Debit/Phone card payments Page 52 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. INSERT Page 53 DRM Video CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. How INTENT works: the User Experience – FREE or Pay per Download Content Page 54 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Consumer Experience - Rich Media & Search Page 55 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. INTENT Distribution Reach Page 56 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Content Owners Perspective • • • • Multi-Channel: P2P, WEB, Wireless, Satellite, PC-TV (PVRs/DVRs) Non-exclusive distribution Digital Rights Management, (DRM), copy protection software used to prevent copying and sharing content without authorization INTENT reviews the content to make certain it is not illicit, unauthorized, sexually explicit or unacceptable for distribution. Page 57 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. P2P Distribution Process Page 58 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. INTENT Advertising & Marketing Programs • Measurable - Trackable Marketing • Awareness: INTENT enables an Advertiser to generate effective awareness at the lowest cost, for the most qualified and largest consumer marketing channel in the world • Traffic • Acquisition Page 59 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. AWARENESS Program - example P2P Software AD Placement Info Page AD Placement Page 60 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. TRAFFIC Program - example Page 61 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. ACQUISITION Program – example Page 62 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Enabling Technology Platform Page 63 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. INTENT MediaWorks - Platform Page 64 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Ad centric Page 65 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Multi-platform Page 66 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Integrated Page 67 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Integrated to P2P: INTENT & KaZaA Page 68 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. eDonkey – INTENT Distribution Partner Page 69 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. LimeWire - INTENT Distribution Partner Page 70 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. BearShare - INTENT Distribution Partner Page 71 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. TrustyFiles - INTENT Distribution Partner Page 72 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. iPeer: INTENT Private P2P Network Page 73 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. iPeer: filter out unauthorized content through P2P software from INTENT MediaWorks, LLC Page 74 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. SMS Networks - INTENT Distribution Partner Page 75 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. MyPeer™ MyPeer™ has an all-in-one solution, combining a full selection of interactive services with DRM driven download features, accessed through a simple easy interface, creating an enjoyable consumer experience. Available in four languages. Page 76 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. The Ultimate Digital System There is also a simple integration with CD/DVD Players and DVRs for consumers who wish to play authorized content on additional media devices. Page 77 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Viral Marketing Effect Page 78 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Reporting Page 79 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Travel Meta-Search Screen Shot Page 80 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Market Strategy Music, Films, Video, Games, Software, eBooks, Group information Services Values Opportunity Suppliers Distributors Retailers Consumers Studios, Labels, Indies, Artists Physical Media Music & Video Stores, Online: ex. iTunes, Kazaa Offline & Online: Web, P2P, RSS, PARTICPATORY Networks Encoding, Distribution, Protection, Digital Ad model Virtual: Media-AD “married” in distribution Digital Download Systems Offer FREE media that is legal, Sharing behavior tools Lower costs, control of channel, curb piracy, consumer direct New Ad Model, New Channel Switch to profitable model Resolve Piracy v. legal New economics, new licensing, 2 way distribution Change Behavior, Scale shift of Ad $s Own all licensing for new model Own the consumer behavior Page 81 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. B2C Commercial P2P Content/Media P2P Applications Open Closed Entertainment Entertainment Social Social, Business, Government, Technical Kazaa, eDonkey, Limewire,”Darknets”, etc. Peerimpact, Rukkus, iMesh, Mashboxx BitTorrent, Gnutella, Gnutella2, Fasttrack, Overnet BitTorrent, Gnutella, Proprietary Distribution Communications Methods/Protocols (Point to Point, branch & Leaf, Swarming) Page 82 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Revenue Sources • Three Distribution Channels 1. Open P2P Networks 2. Closed P2P Networks 3. P2P – WEB Cross Selling • · Indie Licensing & Resale · Major Label & Studio Resale · AD Supported, Pay-PerDownload/Pay-Per-View • Competitive Advantage Applications · • CLOSED P2P OPEN P2P Media P2P eCommerce: Travel, Tickets, etc. Licensing: Distribution Technology (Palladium™) & Closed P2P Page 83 WEB Cross Over CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Market Focus 2005-2007 2008-2010 2011-2015 Page 84 • Media Distribution & P2P Applications: Ads, Transactions, Licensing, Subscriptions • Full Embedded Ecommerce • P2P Commerce Platform CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. P2P Marketplace: Technology Map Page 85 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Links to INTENT • • • • • • • • • • • • • • • • • • • • http://www.intentmediaworks.com/Sponsorships/SurpemeCourt.htm Supreme Court Links http://www.intentmediaworks.com/Technology/INTENT%20MediaWorks%20Technical%20Whitepaper.pdf INTENT Media Works WhitePaper http://www.intentmediaworks.com/Technology/Palladiumshow_files/frame.htm Palladium Explained http://www.intentmediaworks.com/Distribution/P2P%20Explained2.swf Distribution Explained http://www.intentmediaworks.com/Technology/edonkey.htm P2P explained http://www.intentmediaworks.com/Distribution/edonkey.swf IMW Search Optimzation explained http://www.intentmediaworks.com/SuccessStories/casestudies/casestudymh.htm Music Case Studies http://www.intentmediaworks.com/SuccessStories/casestudies/casestudyiu.htm Video Case Study http://www.intentmediaworks.com/mysite/Videos/joanjett.html AD Supported Example in SWF http://www.intentmediaworks.com/mysite/Videos/paypal.html Payfor example in SWF Page 86 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Predicting Trends… What, Why & How…come? Page 87 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Technology Business Rules • Information Rules · · · · · · · Adoption Curves · Syndication Look Up & Discovery · Web Services Trust Brokering · WiFi, Network Effects · Secure Distributed Media Watch the Military: Sensor overload · Behavioral Targeting · Broadband Applications · Media Rich Applications · Wikis · Wireless Broadband · Social Nets. · Swarming · P2P · Skype & VOIP • Quadriviums Page 88 Tech Trends Disruptions · Watch the Gaming World · · · · • Hardware Software Media/Information Broadband Wireless & Wifi Connectivity CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Don’t Sneak Off…no secrets… Page 89 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Page 90 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Page 91 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Page 92 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Page 93 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Page 94 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Page 95 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Page 96 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Technology Business Rules • Information Rules · · · · · · · • Page 97 Tech Trends Disruptions · Adoption Curves · Syndication Look Up & Discovery Trust Brokering Broadband Wireless & Wifi · Web Services · WiFi, Watch the Military: Sensor overload · Secure Distributed Media Watch the Gaming World · Behavioral Targeting · Broadband Applications · Media Rich Applications · Wikis Hardware · Wireless Broadband Software · Social Nets. Media/Information · Swarming Connectivity · P2P · Skype & VOIP Network Effects Quadriviums · · · · • CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Future Trends Nameless Page 98 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. Suggested Readings & References • www.dcia.info • http://www.eff.org/ • http://openp2p.com/ • Provided to the School are a set of research papers and presentations for download. The School will inform you of where these are posted. Page 99 CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client. © 2005 INTENT MediaWorks,. Inc. All rights reserved. All registered trademarks are the property of their respective owners. P2P P2P eCommerce Media Distribution INTENT MediaWorks October 7th, 2005 Carlson School of Management MIS Research Seminar Minneapolis, MN CONFIDENTIAL: INTENT MediaWorks, Inc. Proprietary and confidential for Client/Partner. © 2005 INTENT MediaWorks, INC.. All rights reserved. All registered trademarks are the property of their respective owners.