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Ralph Van Lysebeth

Sales & Marketing Director Packard Bell

Belgium, Luxembourg & Switzerland

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Digital Home Entertainment

Why should the channel adapt ?

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The big shift...

Adapted from K. Werbach

The Great Transition

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Trends & contexts

1.The on-demand lifestyle is here

2.Everybody is short in time -> you must make choices

3.No more customer sacrifices

4.Media becomes unbound

5.End of browsing ? -> too much content

6.Consumers start generating own content

Adapted from G. Leonhard

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Music as an example

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Internet is stealing time from other media...

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Internet + PC is beating radio

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272 Digital Music Stores active in 2004

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This is getting real

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The future...

• In less than 5 years, the entire population in most “rich” countries will ALWAYS be connected, anywhere and with a decent bandwith

• All content & entertainment will be available on this “ALWAYS ON” Network (legal or not)

• The content will live on the network – not in your box, therefore the power is in the network.

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Another trend: from buying to renting

• Consequences:– Broadband explodes even faster

– Prices drop dramatically

• CD in store: 16 € • CD online, fysical delivery: 14 €• Album online, downloaded: 9.99 €• Song online, song of choice: 1 €• Song streaming on demand: 0.01 €

Less customer sacrifices

in terms of time & choice

Renting

Buying

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For the channel: what to sell ?

• Hardware:

– Media (Sharing) Devices• Mobile

• Home

• Content Service Provider Contracts

• Own content ?

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Digital Home Entertainment

Recommendations for the channel

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Recommandations for the channel

• Follow the trends• Diversify or enlarge the product offering

– Content providers, products & services• Focus on solutions

– Show benefits to customers– Create needs– “Usage” is key

• Adapt the showroom• Adapt communication

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Packard Bell is evolving…

2004-20052004-2005 - 1 year- 1 year

1990-20001990-2000 - 10 years- 10 years

The brand of the Home Pc

2001-20032001-2003 - 4 years- 4 years

Home Entertainment

Position the brand into the consumer electronic world

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TV LCD& monitors

LCD TVAudio / Video

Devices

DVD

Digital Media Devices

Set Top Box

DVD/DivX

Multimedia adapters

Home Networking

WiFi

CPL Mobile Audio / Video

MP3 Players

PC Home Server

PC Centric

TV programsrecording

Digital Photo, Music and video acquisition

VODVOD

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www.musicstation.be

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Thank you