Digital Entertainment onCampus:

The Ruckus Approach

Michael BebelCEO, Ruckus Network, Inc.

IFPI – International Federation of the Phonographic Industry – The Recording Industry 2006 Piracy Report

Industry Response - TechnologyDigital Rights Management (DRM) – Enables protected

online distribution

DRM

Content locked in DRM requires a keythat contains usage rights enabling variousbusiness models including:

• Permanent Downloading• Subscription Downloading• PPV or Rental

Industry Response - TechnologyDigital Rights Management (DRM) – Interoperability Problem

Open Magic Gate

DRM

Fairplay

The Ruckus ApproachWhat is RUCKUS? “Free & Legal”

A college community focused, advertising supported online media company enabled by technology and fueled by passion

Market Opportunity:

• Entry point is 16.5 million full time college students

– Media Servers on Campus – Optimizes user experience and reduces bandwidth costs

– According to Harris Interactive, U.S. college students carry $122 billion in spending power, including $24 billion in discretionary spending

21st Century Student Profile

Trend Setters…Defining Media consumption The computer is the media center

Average of 6 hours a day online Most media is consumed through a PC

Music & movies are essential elements of their identity 3,200 average number of music tracks on their PC 92% listen to music daily Watch at least 1 movie/week…often ‘jump around’

Sharing & Networking is a critical part of everyday life New channels for Communication and expression Sharing…part of a digital ‘identity’

Ruckus Bridges the gap…delivers lasting value A library of licensed content that Social Networks do not

offer An online ‘community’ that music services lack

Digital Media is about discovery & sharing…building identity & prestige!

RUCKUS Today

RUCKUS: Digital Media Community

Music…Unlimited Access– 2.8 million tracks and growing…Key: stay current– Next generation Music Discovery

Video (Beta)… Movies, Music Videos and Shorts– Unlimited access to hundreds of titles– Movies: Independent films – Major studios…coming

soon – TV – coming this Fall

Sharing…Creating Connections through shared interests– Enable Discovery & Sharing…licensed Content

Monetization– Banner & Videos Ads – Sponsorships

RUCKUS is all about Sharing & Discovery!

Experience & Expectations It’s Working:

– Delivery Network in place, local caching on campus optimizes user experience

– Over 120 schools live with a full pipeline– Proven Adoption Rates – 60+% of on campus students register in the first week– 100s of thousands of active users downloading tens of

millions of songs on a monthly basis

Positive Usage Patterns – 50% of users return weekly– 8 Sessions per week (5 player, 3 site)– 150 to 200 minute Average Player Sessions– 10 page views per Site Session

Moving Forward– Announced “Free for All” students program on Jan. 22– Adding more content and media types – More robust Video offering in the Fall