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