1. Putting the consumer first: the effect of mobile on broadcast NAB @ MWC, February 2014

2. Our focus is service design We differentiate providers in ways that create an emotional bond between the customer and the service. Our business is delight.ConfidentialPage2 3. We help the worlds leading businesses create great services through the power of design LONDON HELSINKI BERLIN MADRID NEW YORK STOCKHOLM PARIS SAN FRANCISCO ISTANBULConfidentialPage3 4. We work with the worlds top brandsConfidentialPage4 5. Design for data Retail price of roasted coffee, 2013England riots: what happened to the rioters?INNOVATIO NConfidentialPage5 6. The ultimate companion for game day and beyondConfidentialPage6 7. Re-imagination of the phone billConfidentialPage7 8. From desktop to pocket: mobilizing TV to millionsConfidentialPage8 9. Some facts (and speculation) TVs go online By 2017, over 80% of all TV sets sold worldwide will be enabled for online connectivity and smart features Media are going mobile >50% of BBC and Guardian consumed on mobile Video is going mobile In 2014, >50% of video consumed on mobile in the US will be 10 minutes+ConfidentialPage9 10. Some facts (and speculation) Are tablets settling into media devices? Google Play launched on iOS But its not seamless: You cannot buy movies or shows (Apple doesnt allow) No offline capabilitiesInnovation frenzy Comcast launch (Feb 2014) of X1 DVR allows downloads to take on the goConfidentialPage 10 11. Some facts (and speculation) Consumers are using mobile to: Access movie information View trailers, buy tickets Check TV show times Engage with social media sites during shows Preorder and buy DVDs, video games, digital downloads Watch contentConfidentialPage 11 12. Some facts (and speculation) Mobile display advertising is growing According to Gartner, worldwide mobile display advertising spending is estimated to grow from $1.8 billion in 2011 to approximately $13.5 billion in 2015. But has it found its form factor? Social TV is dead Either our friends have terrible taste or we know of it already. Says Gigaom in January 2014: People dont want to know about poor choices old high-school friends made on their living room couch.ConfidentialPage 12 13. Confusing. Especially for the customer. The media industry may be the least customer friendly on earth.ConfidentialPage 13 14. Proliferation of channels causes confusion Where can I watch VEEP? BT Vision? Confused pricing Netflix? Simple at 5.99/month Apple TV? Expensive, delivers Netflix too Digital Terrestrial? YouTube? Sky Now? Somewhere illegal my kids know about? Maybe Amazon/Facebook? There are multiple user experiences (plus remotes and interfaces)Can I use offline as well as online? ConfidentialPage 14 15. But Mobile Drives SimplificationConfidentialPage 15 16. But Mobile Drives SimplificationConfidentialPage 16 17. Questions Where is the Spotify/Beats for video? Playlists Social (recommendations and feed) Easy-to-grasp pricing Multiplatform delivery True On Demand Where is search for broadcast content? What is a newspaper? What is a TV channel? Twitter and Facebook lead the way. Snapchat, Vine, and Buzz are redefining media. ConfidentialPage 17 18. ConfidentialPage 18 19. ConfidentialPage 19 20. Service Priorities Use data Better understand the users context Find gaps in market like House of Cards What are Amazon/Facebook doing with data and content? Make payment amazing Focus on mobile: device upgrade cycles way faster than TV Use the second screen to personalise experience - even in group viewing situationsBuild services on top of the product for advertisers and consumers ConfidentialPage 20 21. Digital transformation wavesDesktop web 1990s2000s2010s ConfidentialPage 21 22. Digital transformation wavesDesktop web 1990sMobility 2000s2010s ConfidentialPage 22 23. Digital transformation wavesDesktop web 1990sMobility 2000sLiving services 2010s ConfidentialPage 23 24. ComplexityDigital transformation wavesDesktop web 1990sMobility 2000sLiving services 2010s ConfidentialPage 24 25. The living services waveCHARACTERISTICS PersonalisedENABLERS Constantly evolving Self-learning and Each person's experience is unique adaptiveCustomization, at scaleData used intelligently and in real timePhysical & digital merge Distinction between digital and physical channels blurredBiometric input, natural interfaces, and multimodality Fast-growing range of devices and sensors Faster, cheaper data transfer Cloud ubiquity Context-sensing Natural interfaces Identity & privacy solutionsConfidentialPage 25 26. Five consequences for broadcast mediaConfidentialPage 26 27. 1. Fragmentation of consumer attention Further fragmentation of customer attention attention as conversations with objects proliferate.ConfidentialPage 27 28. 2. The home needs a platform The home will first be distributed and then connected, and this will demand a platform. Whoever owns this will also play a key role in media distribution.(Why did Google pay $3.2bn for a thermostat and smoke alarm?) ConfidentialPage 28 29. 3. Data expertise is required Do media have permission to play in this space?ConfidentialPage 29 30. 4. Customer centricity How can the media industry become genuinely customer centric?ConfidentialPage 30 31. 5. Relationships with customers are changing Every business will need to redefine its relationship with customers. Broadcast is no exception.ConfidentialPage 31 32. Were in the re-imagination business Re-imagination of nearly everything powered by New Devices + Connectivity + UI + Beauty Mary Meeker of KPCBConfidentialPage 32 33. Thank you! mark.curtis@fjordnet.com @fjord