P2P Media Distribution P2P eCommerce · • 8.3 Million P2P consumers are online at any given moment 8.3 Million P2P consumers are online at any given moment ... · OGSA(Open Grid
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Page 1 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
BackgroundBackground
• 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 6 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
Technology Business RulesTechnology Business Rules
• Information Rules· Disruptions· Adoption Curves· Look Up & Discovery· Trust Brokering· Network Effects· Watch the Military: Sensor overload· Watch the Gaming World
Page 10 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
LetLet’’s just be s just be ““trendstrends”…”…P2P Networks StatisticsP2P Networks Statistics
•• There are an estimated 250 Million P2P users worldwide There are an estimated 250 Million P2P users worldwide
•• There are over 60 Million consumers who trade files via P2P montThere are over 60 Million consumers who trade files via P2P monthly hly
•• The number of consumers on P2P networks doubled every year for tThe number of consumers on P2P networks doubled every year for the he past 3 years past 3 years
•• P2P is estimated to double for the next 5 years with the integraP2P is estimated to double for the next 5 years with the integration of tion of digital video systems digital video systems
•• 8.3 Million P2P consumers are online at any given moment 8.3 Million P2P consumers are online at any given moment
•• There is an estimated 10 Million Gigabytes of Data on the P2P neThere is an estimated 10 Million Gigabytes of Data on the P2P networks atworks a
•• About twoAbout two--thirds (66%) of all searches are by media typethirds (66%) of all searches are by media type
Page 13 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
What is P2P?
•• INTERNET BasedINTERNET Based
•• NOT the WEBNOT the WEB·· A peerA peer--toto--peer (P2P) network is basically a network, the power of which lipeer (P2P) network is basically a network, the power of which lies in es in
the computers that are connected to it rather than in a central the computers that are connected to it rather than in a central server or anything server or anything of the kind.of the kind.
•• Files can be transferred between computers using various Files can be transferred between computers using various techniques,techniques, or or protocolsprotocols·· BitTorrentBitTorrent·· GnuetllaGnuetlla·· Gnutella2Gnutella2·· FastrackFastrack·· OvernetOvernet
•• Decentralized, or Distributed ComputingDecentralized, or Distributed Computing
Page 14 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
TechTech--TalkTalk
• Distributed system architecture· Decentralized control
◊ NOT A centralized system – Client/Server Architecture – Master/Slave models– Dumb terminals / Active broadcaster
• Typically many nodes, & heterogeneous• Takes advantage of distributed, shared resources (bandwidth, CPU, storage) • Fault-tolerant, self-organizing• Operates in dynamic environment, frequent join and leave is the norm
• 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 23 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
Technology Business RulesTechnology Business Rules
• Information Rules· Disruptions· Adoption Curves· Look Up & Discovery· Trust Brokering· Network Effects· Watch the Military: Sensor overload· Watch the Gaming World
Page 31 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
The Current Situation The Current Situation ––Music Sales Are In DeclineMusic 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.
…should be growing with GDP (+2.7%)
…instead will continue to decline if no solution is implemented (-2.1%)
Music Industry Sales…
$
"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.”
Page 32 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
The Music IndustryThe Music Industry’’s Response v. P2Ps 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
“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
• 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.
Page 33 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
P2P Media Market MilestonesP2P Media Market Milestones
• MGM v. Grokster, 6/27/05 signaled beginning of commercial services· Illegal file trading networks dominated· Only legal commercial services
◊ 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
· INTENT MediaWorks· BitTorrent· Others
• Social Networking meets Electronic Commerce·· PeerPeer--toto--peer traffic accounts for 50 peer traffic accounts for 50
to 70 percent of the data traffic on to 70 percent of the data traffic on ISP networks ISP networks -- CNET News August CNET News August 30, 200530, 2005
• P2P Consumer Market Size·· 60MM Users North America60MM Users North America
Page 47 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
INTENTINTENT’’ss MissionMission
1.1. Create the technologies & platform that enable new Digital Create the technologies & platform that enable new Digital Distribution of MediaDistribution of Media
2.2. Help marketers tap into and profit from advertising to the vast Help marketers tap into and profit from advertising to the vast consumer community online in the fileconsumer community online in the file--sharing/P2P worldsharing/P2P world
3.3. Integrate the viral power and authentic nature of peerIntegrate the viral power and authentic nature of peer--toto--peer filepeer file--sharing with esharing with e--commerce and advanced marketing technologies to commerce and advanced marketing technologies to generate brand awareness, drive web traffic, and engage generate brand awareness, drive web traffic, and engage consumers in acquisition oriented marketing programsconsumers in acquisition oriented marketing programs
Page 49 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
Background to the missionBackground to the mission
•• Digital Commerce: Distribution Technology LeaderDigital Commerce: Distribution Technology Leader◊◊ AgentWareAgentWare, Inc.: , Inc.: www.agentware.netwww.agentware.net: Travel : Travel MetaSearchMetaSearch◊◊ CareerfishCareerfish, Inc.: , Inc.: www.careerfish.comwww.careerfish.com: Job Search & Placement: Job Search & Placement◊◊ INTENT INTENT MediaWorks.comMediaWorks.com: Music, Film & Video via P2P: Music, Film & Video via P2P
•• Recognized Leader in Legitimate P2P Media Distribution & UsesRecognized Leader in Legitimate P2P Media Distribution & Uses◊◊ U.S. U.S. Senate,FTC,FBISenate,FTC,FBI, The White House, The White House◊◊ U.S. Supreme Court: MGM v. U.S. Supreme Court: MGM v. GroksterGrokster 20052005
•• P2P Commerce Platform: Media & ApplicationsP2P Commerce Platform: Media & Applications◊◊ Open P2P Media Distribution & Ad supported SalesOpen P2P Media Distribution & Ad supported Sales◊◊ Closed, Private Label P2P NetworksClosed, Private Label P2P Networks◊◊ Web to P2P Cross SellingWeb to P2P Cross Selling
•• First & Largest Distributor of First & Largest Distributor of Licensed Media via Open P2PLicensed Media via Open P2P
·· Only endOnly end--toto--end P2P Media end P2P Media Distribution TechnologyDistribution Technology
·· Mass Encoding SystemMass Encoding System·· Multiplatform DRM DeliveryMultiplatform DRM Delivery·· AD supported, Pay Per Download & AD supported, Pay Per Download &
Pay Per View Media EnginePay Per View Media Engine·· Search Optimization via P2P all Search Optimization via P2P all
major Protocolsmajor Protocols·· Agreement for content place within Agreement for content place within
every major P2P software every major P2P software applicationapplication◊◊ OpenOpen◊◊ ClosedClosed
Page 52 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
How does DRM work?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
•• NonNon--exclusive distribution exclusive distribution •• Digital Rights Management, Digital Rights Management,
(DRM), copy protection (DRM), copy protection software used to prevent software used to prevent copying and sharing content copying and sharing content without authorization without authorization
•• INTENT reviews the content to INTENT reviews the content to make certain it is not illicit, make certain it is not illicit, unauthorized, sexually explicit unauthorized, sexually explicit or unacceptable for or unacceptable for distribution. distribution.
•• AwarenessAwareness:: INTENT enables an Advertiser to generate effective awareness INTENT enables an Advertiser to generate effective awareness
at the lowest cost, for the most qualified and largest consumer at the lowest cost, for the most qualified and largest consumer marketing channel in marketing channel in the worldthe world
Page 74 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
iPeeriPeer: : filter out unauthorized content through P2P filter out unauthorized content through P2P software from INTENT MediaWorks, LLCsoftware from INTENT MediaWorks, LLC
Page 76 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
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 86 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
Links to INTENT 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 97 CONFIDENTIAL: INTENT MediaWorks, Inc.CONFIDENTIAL: INTENT MediaWorks, Inc.
Technology Business RulesTechnology Business Rules
• Information Rules· Disruptions· Adoption Curves· Look Up & Discovery· Trust Brokering· Network Effects· Watch the Military: Sensor overload· Watch the Gaming World