Exent Sales Presentation

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(No Transcript)
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Gaming Services the needed differentiator

• By Sagi Katz
• Director Sales and Business Development EMEA
• March 2005

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Agenda

• Few words about Exent Technologies
• Gaming is a mainstream business
• Games-on-demand explained
• Telco benefits
• Telco opportunities

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Exent - secured on-demand delivery
provisioning of entertainment services
More local global players
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Gaming is a mainstream business
Gaming is by far the most sought after activity
online
Stanford Center for the Quantitative Study of
Society, Dec 2004
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Gaming is a mainstream business

• Media giants like News Corp are entering the
  market
• According to PWC, Global Entertainment and Media
  Outlook 2004-2008
• Women are making their presence felt in gaming
  26 of all adults in 2003 more than boys aged
  6-17
• Adult males 18 years still constitute the
  largest group - with 38 of gamers
• Overall, adults of both sexes constituted 64 of
  players
• The average age of gamers has risen to 29
• In a comprehensive survey conducted by a leading
  European operator, gaming was chosen as the 1 BB
  application after email, before video or music

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PC and Online Gaming

• PC is by far the most prevalent gaming and
• connected device
• 60M PCs shipped in EMEA in 2004 only
• 36M BB connections in Europe in Q3 2004
• U.S. Online PC gaming is estimated to grow from
  656M in 2004 to 2.2B by 2008 IDC December
  2004
• Subscription fees for MMORPGs (Everquest, Ultima
  Online, etc)
• Subscriptions for multiplayer casual games
  (Disneys Toontown, etc.)
• Advertising fees for casual web/java/flash games
  (Yahoo! Games, MSN Games, etc.)
• Purchased downloadable games (try-buy model)
• Subscriptions for PC games (games-on-demand)

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Games-on-Demand explained

• Game programming (PC Gaming Channel)
• A BB-only interactive PC gaming service (the real
  thing)
• Offering all kinds of games and genres
  (Something for Everyone)
• Via all pricing models (trial, subscription,
  rentals, purchases)

Convenience
Selection
Safe, Secure, Legal
Value for money
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GoD market expanding opportunity
New release windows for games
Gaming Life Cycle?
Subscriptions Rentals
Syndication Repurposing
Effects of the Long Tail (double retail sales
in books)
Retail
2-3 months high street store life
Offered today
Offered tomorrow
Strengthened by digital distribution
subscriptions
Programming guided Mass market appeal Community Ga
me of the day
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Is this important for a Telco? Depends whether
you are into programming
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Telco Benefits

• Build uniqueness into ADSL/Triple Play
  subscriptions
• Increase subscriber loyalty (reduce churn)
• Motivate ADSL package upgrades
• Reduce price-sensitivity (this is not a commodity
  offering)
• Enjoy additional ARPU
• 1st mover advantage (innovation)
• Offer something of significant value to your
  subscribers

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Current Opportunities in Games-on-Demand
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Current Opportunities
Games-on-demand services for the PC
Try-Buy
Premium Gaming Package (20)
Adult Education Package (10)
Subscription
Basic Gaming Package (10)
Kids Edutainment Package (6-7)
Bundling of an Introductory Package
Games Education on Demand Service
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Facts and Figures

• Paid Subscription Services Direct Value
• 2-3 conversion rate from unique site visitors
  to free trials
• 60-70 from trials to paid services (opt-out
  model)
• Service churn rates are at 10-11 and dropping
• Direct subscriber value is approximately 120-150
• Avg. Sessions per User per Month 25
• Avg. Session Time 1hr21min (excluding demo
  users)
• Paid Subscription Services Indirect Value
• Loyalty GoD subscribers are 75 less likely to
  churn from their operator with a GoD service

Gaming subscription services have significant
programming value
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Facts and Figures

• Bundling makes sense for GoD
• Expectations A prominent operator expects 20
  BB penetration rate for bundled gaming services
• Actual results 7-8 of all BB subs accessed a
  bundled offering in 2 weeks
• Deployment European operators are already in the
  process of tying gaming and education with BB by
  offering an introductory package built into the
  general access offering their main concern
  churn from BB from the family sector
• Use the Inbound and Outbound Channels
• High conversion rates over 16
• Significant reduction in cost of acquisition

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Games-on-demand market is maturing

• 2-week exclusive pre-release of Take 2s Safari
  Adventures
• Games introduced online few weeks after retail
  release
• Prince of Persia (12), Splinter Cell (12),
  Beyond Good Evil, XIII (Ubisoft)
• Tomb Raider Angel of Darkness, Deus Ex
  Invisible war (Eidos)
• Warhammer 40K (THQ)
• PainKiller (Dreamcatcher)
• Leisure Suit Larry (Vivendi)
• and many more

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Opportunities around the corner
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Opportunities around the corner

• Enhance games programming
• (integrate game playing with your video
  business)
• 10 game experience in the living room, over
  next generation STBs, Media Center

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Summary
Games and education on demand services are of
great strategic value to a Telco today Exent is
well positioned to support such services
For more information, please contact Sagi
Katz Tel [phone] Mobile 972 544
510360 Email skatz_at_exent.com