Available Now at a Dealer Near YouConnected Cars and What they Mean for Radio

Valerie ShumanVP, Industry Programs

Connected Vehicle Trade Association

2011 – Jill and Mike V Shuman

Ideas in this presentation arenot necessarily those of the CVTA.

Overview

• WHAT is a Connected Car? • WHY are we connecting cars? • HOW are we connecting cars? • WHEN will most cars be connected? and…• What does this mean for RADIO?

WHATIs a Connected Car?

WHATIs a Connected Car?

Safety & Convenience

Infotainment

1.0

Insurance

WHATIs a Connected Car?2.0

WHYAre we connecting cars?$100B wasted

33,000 deaths

>50% drivers want it

HOWAre we connecting cars?

Easy for the consumer Optimal driver interface Integrated with vehicle systems Works when car’s alone Business model issues Quickly obsolete

Fairly easy for the consumer Non-automotive interface Harder to integrate Doesn’t work when car’s alone Business model works well Consumer refreshes device often

Embedded Brought-in

Software-Defined Everything

HOWAre we connecting cars?

Smartphone interfaces

App stores

APIs Virtual Dashboard

Software Defined Radio

Bottom Line:The platform is changing.

HOWAre we connecting cars?

WHENWill most cars be connected?

230M Vehicles

Streaming Radio Capable cars

18M*In-car Streaming Radio listeners

11M

U.S. 2012 90M+ cars with AUX jacks

164M Smartphones

WHENWill most cars be connected?Future

About 50 car models in the United States already have Internet radio app integration or will have it in their model-year 2012 versions.

SiriusXM this year will be factory installed in close to 70% of all new vehicles sold in the U.S. SiriusXM is available in vehicles from every major car company, as well as most specialty auto makers.

Ford and Microsoft, which said the companies’ 5-millionth vehicle equipped with the SYNC system had been sold.

Over 90 percent of new cars sold in the United States have an option for iPod connectivity.

About 40 percent of the cars sold in the United States last year can already connect to wireless data networks.

What does all this mean for radio?

You Are No Longer Alone

http://fromthistothatbybobbalou.blogspot.com/2012/10/leafs-me-bewildered_7.html

The Elephant’s Got A Whiteboard

http://www.visualphotos.com/image/2x3907151/elephants_trunk_and_a_whiteboard

• How do consumers consume content?

• What does “programming” mean now?

• How will you make money in this new environment?

Opportunity: Content Integration

“Traffic on the 8’s: Lane closures on EB and WB I-70 from 2 miles east of I-55/70/270 interchange to the US-40 interchange at Pocahontas.”

“Would you like me to find an alternate route?”

Same content. Same problem.Totally different user experience.

Opportunity: Mobile Advertising

“Tickets on sale now! ”

I’ll have to remember that.

Take an existing process to another level.

“$5 off oil change, auto dealership 1 mile ahead ”

Content & services“budget”

How will you handle nomadicity?

Dividing the Dashboard Dollar

AutoCosContent Providers

Content Creators Hardware & Software

HD Radio IP licensing

Satellite radio fees Dashboard real estate fees

Content licensing (varies)

• How will you make money in this environment?

In Summary

• You are no longer alone– Basic car connectivity

available now• Opportunities are out there– How do consumers consume

content?– What does “programming”

mean now?– How will you make money in

this environment?

2011 – Jill and Mike V Shuman

Learn More…

• CVTA is an international, non-profit trade association formed to advance the interests of industries and organizations involved in vehicle communications

• Membership is open to companies, universities, standards bodies and public agencies globally

• Contact: Valerie Shuman (vs@shumangroupllc.com)

www.shumangroupllc.com