TTE Value Proposition • Introduce a “first of it’s kind” in-store tabletop entertainment system with significant brand, flair and personality that delivers a positive, healthy experience • Offer creative reinforcement to the Starbucks brand communication • Offer a personalized one-to-one interface, that will stimulate customer interaction, thereby generating positive brand reinforcement 2 Challenge • Increase customer retention time • Create Family Fun to enhance Starbucks experience • Develop program that will minimize out-of-pocket promotion costs 3 TTE Value Curve • Provides the ‘medium’ to reinforce emotional connection to brand • Provides an ‘inviting’ catalyst to increase consumer traffic flow around specific hours of operation • Generates ‘improved’ store traffic count + retention • Promotes ‘ability’ to motivate new customer traffic • Opens ‘new’ promotion partner opportunities (DreamWorks, FOX, Sony Music, Nike, etc.) 4 TTE Platform • TTE is the first DVD entertainment platform with self contained, playable games Features unique DVD Board Games from iGamz Flexible enough to play iGamz interactive board games and other video content • Everything needed to have stimulating play is in the TTE system No separate game board, game pieces or peripheral hardware • Games are selected and played from Touch Pad on TTE • Battery powered so no electric cord or plug required 5 TTE Licenses • TTE is produced with proprietary “licensed” and “original” concepts Feature popular characters, movies, TV programs, sports figures • TTE licenses include: Yu-Gi-Oh! Dragonball Z HBO (Sex and the City) CBS (Everybody Loves Raymond) Fox (Family Guy) • TTE offers games that target four psychographics: Kids, Teens, Adults, Urban 6 TTE Features • iGamz Gameplay Features: Plays off a programmable, replaceable DVD Manages game play and randomises play Features mini-games and Q&A challenges Keeps track of whose turn it is Keeps track of the progress for each player Shows the game board and player positions Knows where each player is on the board Knows who won/lost and when the game is over 7 TTE Base Universe • DVD’s appeal to a broad and large audience • General DVD market is large and growing Eighty-eight (88) million TVHH $9 billion 5.8 » (70%) own 150 million DVD players (Est. CY2005) • Emerging market of DVD games • Large market for games ($9 billion) appeals all age categories to 2 Video: $5.8B 1.2 Computer: $1.2B Board: $2.0B • DVD owners continue to purchase quantities of product Video Computer Board Billions of Dollars Purchase minimum thirteen (13) titles per HH/year DVD retail sales $15.5B (CY2004) 8 TTE Viability • Interactive games are quite familiar with an ever popular format • One-hundred forty-five (145+) million play one or more forms of interactive game Video Game CD-ROM • Online Mobile TTE is not introducing a totally “new” game concept Traditional board games already translated to a wide range of formats - Video Game - CD-ROM - Handheld • - CD-I - Mobile Consumers already exposed to classic board games with DVD Trivial Pursuit DVD versions selling more than one million units annually 9 Starbucks TTE Offering • Branded Starbucks TTE Table Top Entertainment unit that allows play of short form iGamz DVD Board Games • Compact Table Top Size Footprint:: 7”X8” Height: 9” • Contains four (4) games CBS “Everybody Loves Raymond” FOX “Family Guy” 4Kids Yu-Gi-Oh! FUNimation “Dragonball Z” • Each game allows 2-4 person play • Each game play completes in fifteen minutes 10 Starbucks TTE Offering • TTE games are SF (short form) versions of complete game (LF) LF versions of iGamz available for purchase at mass market retail SF versions developed and rotated by iGameworks • TTE offer SF “free” play with meal purchase in-store Limit to one game play per seating (option) Encourage two or more persons per table to play 11 Starbucks TTE Offering • Option to develop iGamz titles exclusively for Starbucks Option to purchase exclusive games at Starbucks over-the-counter Starbucks branded SKU with purchase Significant promotion revenue generator • TTE games can be rotated on pre-defined timeframe 2 Games change each quarter Replaced with New iGamz offerings • Promotional signage, messages, other promotional opportunities Messaging can be placed on TTE unit or integrated into game disc 12 Starbucks TTE Messaging • Branded POS and supporting materials: Incorporate consistent imagery, messaging and program look/feel Clearly define program ‘fun’ Identify all program aspects, i.e. (contests, etc.) Promote specific day parts (i.e. dinner hour, family hour, etc.) • Identify relevant on-premise POS items Danglers, counter cards, static clings, etc. • Identify customizable usable goods Tray liners • Identify relevant customer deliverables Special partner offerings, SKU packaging 13 TTE Promotional Opportunities • Sell exclusive Starbucks titles Revenue/profit generator to offset TTE promotion cost • Sell iGamz titles at promotional price • Feature promotional videos on TTE disc for customer viewing Preview new films, TV shows, new video games, new products, promotions, etc. Charge promotional partner for viewing opportunity 14