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Media. Mobile. Social.
Staying Ahead of Technology Trends




DUVON CORPORATION
The information contained in the following marketing materials is proprietary and strictly
confidential. It is solely intended to be reviewed by the party receiving the materials from Duvon
Corporation, its agents, and/or affiliates, and should not be made available to any other person or
entity without the written consent of Duvon Corporation or its affiliates.

The information contained within these marketing materials is strictly for illustrative purposes, and
the figures herein are not guaranteed for accuracy. The information used in preparing these
materials are from sources we believe to be accurate, or reasonably estimated, however Duvon
Corporation has not made any investigation into the accuracy of these sources. Duvon Corporation
does not intend for these marketing materials to be a substitute for appropriate due diligence
investigations. Duvon Corporation, or its agents, and/or affiliates make(s) no further warranties,
express or implied, for any reason or purpose to any party in possession of these marketing
materials.
Media. Mobile. Social. Staying ahead of Technology Trends
Digital media is a key contributor to the projected growth of the personal cloud and cloud
storage industry. Combine the consumer’s love of their favorite music, videos and photos
with the increasing use of mobile devices and social networking, and the need for a cloud-
based media management system quickly becomes evident.


Digital Content is on the Rise

According to a recent report from Nielsen, in 2004 digital music files made up less than
1% of total U.S. Album sales. Compare that to 40% of total album sales in 2009, and over
100 million digital albums purchased by consumers in 2011. By the fourth quarter of
2012, digital album sales had risen 15% from the previous year. The music download
sector of the industry continues to expand internationally, with legitimate digital
download stores offering libraries of up to 20 million tracks for purchase by consumers
and over 1.3 billion tracks purchased by consumers in 2012. 1

IFPI’s 2012 Digital Music Report points out that the music industry is far ahead of other
creative industries in terms of digital popularity, with film and publishing just beginning
their shift to digital channels. As the “ownership” mode of digital music continues to
thrive, IFPI credits developments in cloud technology with transforming the way
consumers store and manage their growing digital music collections.2

Digital music may be leading the pack, but Facebook reports that 250 million photos are
uploaded to the social media site daily. 2011 research from Experian Simmons reports
that 73% of all cell phone owners had used their phone to take a photo in the last 30
days. The study also predicted that video will be the fastest growing trend on mobile
devices, reporting that 27% of today’s smartphone owners watch video on their mobile
phone. 3 Gartner International predicts that consumers’ ability to easily capture photos
and video on mobile devices will lead to increased demand for cloud storage solutions.


Demand for Mobility is Unstoppable – Smartphone Ownership Booms

Consumers’ growing demand for a mobile digital lifestyle is also driving the increase in
ownership of digital content. Experian Simmons found that 29% of cell phone owners
today believe that their cell phone will be the primary device for their entertainment
needs in the future.4 Nielsen analysts announced in September of 2012 that 74% of


1
  A Neilsen Report: Global Online Consumers and Multi-Screen Media Today & Tomorrow, May 2012
2
  IFPI, Digital Music Report 2012
3
  Experian Simmons, The 2011 Mobile Consumer Report
4
  Experian Simmons, The 2011 Mobile Consumer Report
                                                                                                1
young adults (age 25-34) now own smartphones. Teenagers are the fastest growing
group of smartphone owners, jumping from 58% ownership from 36% just a year earlier.5

This growth trend is expected to continue, with Nielsen again reporting that large
percentages of survey responders plan to own a smartphone within the next 12 months.
While 31% of North American participants already own such a device, 45% plan to own
one in the next year. In Asia-Pacific the projected number jumps even more significantly
from 44% to 70%. Tablets are a fast-growing segment of the mobile device market as
well, with the Nielsen survey reporting that tablet ownership is up 70% from 2010.6


More is Better – Multiple Device Ownership Projected

It seems that mobile device owners won’t be satisfied with owning just one device, as this
projection from ITU shows:




Ownership of multiple mobile devices will further drive the necessity for cloud-based
media management. The ability to access a complete media library from any device is a
key expectation of mobile consumers today. With limited hard-drive storage space on
devices, the cloud becomes the logical place to store media files in order to access them
from multiple devices.




5
    A Neilsen Report: Global Online Consumers and Multi-Screen Media Today & Tomorrow, May 2012
6
    A Neilsen Report: Global Online Consumers and Multi-Screen Media Today & Tomorrow, May 2012
                                                                                                  2
Smartphone = Lifeline. How Consumers Use Mobile Devices

Beyond simply storing media, a cloud-based media management system has to
incorporate the social aspects consumers tie to their media files. The Experian Simmons
National Consumer Study uncovered trends in behaviors and attitudes that consumers
have toward their mobile devices, establishing five categories of users:

Mobirati: Representing the mobile generation, they have grown up with cell phones and
cannot imagine life without them. Mobile devices are a central part of their everyday
lives.
Social Connectors: Communication is central in their lives, and mobile devices allow
them to keep up-to-date with friends and social events. Their mobile device is the bridge
to their social world.
Mobile Professionals: Smartphones help them keep up with their professional and
personal life. Their phone has become their all-in-one device for communication and
information needs.
Pragmatic Adopters: Cell phones came into being during their adult years. They are now
learning to use their mobile devices in simple ways.
Basic Planners: They have little interest in technology. Use of their mobile device is just
for basic communication.

The consumer segments that are
dependent on their mobile
devices and use them for
connecting with others daily
make up almost half of all adult
cell phone users. Add the
mobile professionals who use
their phones to enhance both
their personal and professional
lives, and the percentage grows
to 60%.7


Social Ties and Mobility

The study also showed that a growing number of mobile device users are accessing social
media accounts from their mobile devices. In 2011, 20% of social media participants
accessed their accounts from their mobile device, up from 11% in 2008. Increasing
numbers of those active in social media are posting photos and videos directly from their
mobile devices as well.8 A July 2012 study of US internet users by GfK Group found that
31% of time on mobile devices is spent on social media activities, as compared to only


7
    Experian Simmons, The 2011 Mobile Consumer Report
8
    Experian Simmons, The 2011 Mobile Consumer Report
                                                                                          3
18% of PC internet users.9 Further evidence of the mobile/social connection is found in
the rapidly growing numbers of mobile users on social media sites. As of the third quarter
of 2012, Facebook alone was reported to have 604 million mobile users.10


Solutions from StoAmigo

Trends in digital media growth, combined with surging mobile device use and the
importance of social networking on those devices all point to the need for systems that
combine all of these components. StoAmigo, Duvon Corporation’s cloud-based digital
media management system offers consumers ubiquitous access to their digital media -
across multiple devices and locations, as well as a central location for storage and
organization of all of their favorite digital media files. Because media is stored in the
cloud, users access their original files, as opposed to downloading multiple copies to
various devices.

This is also a key factor when it comes to sharing. StoAmigo users don’t have to generate
copies of digital media files in order to share them, and when they post directly to
Facebook from StoAmigo, they retain the rights to their photos, videos and music. Users
can easily share the things they love with family and friends anywhere in the world, all
from StoAmigo’s user-friendly interface.

StoAmigo’s unique permission settings also support sharing in the truest sense – where
media is not given away. Share permissions can be set for view only, without giving
downloading privileges. Any share can be customized based on what permission level the
user wants to give to each of the recipients, and shares can be modified or retracted at
any time. If a user wants to share a digital media file for a certain time-frame, it can be
retracted with just a few clicks.

The StoAmigo system supports a return to the true idea of sharing when it comes to
media, giving users complete control of their owned media and protecting files from
inappropriate downloads or duplication. At the same time, it removes the restrictions of
location and inadequate hard drive space that often make consumers’ favorite media files
inaccessible when they are away from home. StoAmigo is an innovative solution for
providing increasingly mobile and social consumers with access to the digital content they
love the most.




9
    GfK Group, July 2012
10
    Ben-Evans.com, January 2, 2013
                                                                                            4
About Duvon Corporation

Duvon Corporation operates globally with offices in the United States, Europe and Asia.
Duvon is committed to being a leader in providing unique solutions for a changing world.
Our passion is personal cloud innovation as it relates to human interaction – enhancing
the way that people interact with one another and with technology.

The Duvon team is made up of a diverse group of computer scientists, networking
professionals, mathematicians and business professionals who are dedicated to
conceiving, building and delivering advanced applications that merge social networking
with the personal cloud, increasing productivity and enriching our lives.

Our mission is to anticipate and meet consumer demand for a complete digital lifestyle
that provides storage, file synchronization, streaming and social interaction. As the
personal cloud becomes central to our everyday life, our goal is to provide an
unparalleled ecosystem that enhances the human experience and is secure, enjoyable,
and consistent across multiple screens and multiple environments.


Duvon Corporation
5538 S. Eastern Avenue
Las Vegas, NV 89119
702.948.9770
info@duvon.com
Want to learn more? Please visit us online at www.duvon.com.




Copyright © 2013 Duvon Corporation. All rights reserved.
                                                                                      5

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Media.Mobile.Social. Staying Ahead of Technology Trends

  • 1. Media. Mobile. Social. Staying Ahead of Technology Trends DUVON CORPORATION The information contained in the following marketing materials is proprietary and strictly confidential. It is solely intended to be reviewed by the party receiving the materials from Duvon Corporation, its agents, and/or affiliates, and should not be made available to any other person or entity without the written consent of Duvon Corporation or its affiliates. The information contained within these marketing materials is strictly for illustrative purposes, and the figures herein are not guaranteed for accuracy. The information used in preparing these materials are from sources we believe to be accurate, or reasonably estimated, however Duvon Corporation has not made any investigation into the accuracy of these sources. Duvon Corporation does not intend for these marketing materials to be a substitute for appropriate due diligence investigations. Duvon Corporation, or its agents, and/or affiliates make(s) no further warranties, express or implied, for any reason or purpose to any party in possession of these marketing materials.
  • 2. Media. Mobile. Social. Staying ahead of Technology Trends Digital media is a key contributor to the projected growth of the personal cloud and cloud storage industry. Combine the consumer’s love of their favorite music, videos and photos with the increasing use of mobile devices and social networking, and the need for a cloud- based media management system quickly becomes evident. Digital Content is on the Rise According to a recent report from Nielsen, in 2004 digital music files made up less than 1% of total U.S. Album sales. Compare that to 40% of total album sales in 2009, and over 100 million digital albums purchased by consumers in 2011. By the fourth quarter of 2012, digital album sales had risen 15% from the previous year. The music download sector of the industry continues to expand internationally, with legitimate digital download stores offering libraries of up to 20 million tracks for purchase by consumers and over 1.3 billion tracks purchased by consumers in 2012. 1 IFPI’s 2012 Digital Music Report points out that the music industry is far ahead of other creative industries in terms of digital popularity, with film and publishing just beginning their shift to digital channels. As the “ownership” mode of digital music continues to thrive, IFPI credits developments in cloud technology with transforming the way consumers store and manage their growing digital music collections.2 Digital music may be leading the pack, but Facebook reports that 250 million photos are uploaded to the social media site daily. 2011 research from Experian Simmons reports that 73% of all cell phone owners had used their phone to take a photo in the last 30 days. The study also predicted that video will be the fastest growing trend on mobile devices, reporting that 27% of today’s smartphone owners watch video on their mobile phone. 3 Gartner International predicts that consumers’ ability to easily capture photos and video on mobile devices will lead to increased demand for cloud storage solutions. Demand for Mobility is Unstoppable – Smartphone Ownership Booms Consumers’ growing demand for a mobile digital lifestyle is also driving the increase in ownership of digital content. Experian Simmons found that 29% of cell phone owners today believe that their cell phone will be the primary device for their entertainment needs in the future.4 Nielsen analysts announced in September of 2012 that 74% of 1 A Neilsen Report: Global Online Consumers and Multi-Screen Media Today & Tomorrow, May 2012 2 IFPI, Digital Music Report 2012 3 Experian Simmons, The 2011 Mobile Consumer Report 4 Experian Simmons, The 2011 Mobile Consumer Report 1
  • 3. young adults (age 25-34) now own smartphones. Teenagers are the fastest growing group of smartphone owners, jumping from 58% ownership from 36% just a year earlier.5 This growth trend is expected to continue, with Nielsen again reporting that large percentages of survey responders plan to own a smartphone within the next 12 months. While 31% of North American participants already own such a device, 45% plan to own one in the next year. In Asia-Pacific the projected number jumps even more significantly from 44% to 70%. Tablets are a fast-growing segment of the mobile device market as well, with the Nielsen survey reporting that tablet ownership is up 70% from 2010.6 More is Better – Multiple Device Ownership Projected It seems that mobile device owners won’t be satisfied with owning just one device, as this projection from ITU shows: Ownership of multiple mobile devices will further drive the necessity for cloud-based media management. The ability to access a complete media library from any device is a key expectation of mobile consumers today. With limited hard-drive storage space on devices, the cloud becomes the logical place to store media files in order to access them from multiple devices. 5 A Neilsen Report: Global Online Consumers and Multi-Screen Media Today & Tomorrow, May 2012 6 A Neilsen Report: Global Online Consumers and Multi-Screen Media Today & Tomorrow, May 2012 2
  • 4. Smartphone = Lifeline. How Consumers Use Mobile Devices Beyond simply storing media, a cloud-based media management system has to incorporate the social aspects consumers tie to their media files. The Experian Simmons National Consumer Study uncovered trends in behaviors and attitudes that consumers have toward their mobile devices, establishing five categories of users: Mobirati: Representing the mobile generation, they have grown up with cell phones and cannot imagine life without them. Mobile devices are a central part of their everyday lives. Social Connectors: Communication is central in their lives, and mobile devices allow them to keep up-to-date with friends and social events. Their mobile device is the bridge to their social world. Mobile Professionals: Smartphones help them keep up with their professional and personal life. Their phone has become their all-in-one device for communication and information needs. Pragmatic Adopters: Cell phones came into being during their adult years. They are now learning to use their mobile devices in simple ways. Basic Planners: They have little interest in technology. Use of their mobile device is just for basic communication. The consumer segments that are dependent on their mobile devices and use them for connecting with others daily make up almost half of all adult cell phone users. Add the mobile professionals who use their phones to enhance both their personal and professional lives, and the percentage grows to 60%.7 Social Ties and Mobility The study also showed that a growing number of mobile device users are accessing social media accounts from their mobile devices. In 2011, 20% of social media participants accessed their accounts from their mobile device, up from 11% in 2008. Increasing numbers of those active in social media are posting photos and videos directly from their mobile devices as well.8 A July 2012 study of US internet users by GfK Group found that 31% of time on mobile devices is spent on social media activities, as compared to only 7 Experian Simmons, The 2011 Mobile Consumer Report 8 Experian Simmons, The 2011 Mobile Consumer Report 3
  • 5. 18% of PC internet users.9 Further evidence of the mobile/social connection is found in the rapidly growing numbers of mobile users on social media sites. As of the third quarter of 2012, Facebook alone was reported to have 604 million mobile users.10 Solutions from StoAmigo Trends in digital media growth, combined with surging mobile device use and the importance of social networking on those devices all point to the need for systems that combine all of these components. StoAmigo, Duvon Corporation’s cloud-based digital media management system offers consumers ubiquitous access to their digital media - across multiple devices and locations, as well as a central location for storage and organization of all of their favorite digital media files. Because media is stored in the cloud, users access their original files, as opposed to downloading multiple copies to various devices. This is also a key factor when it comes to sharing. StoAmigo users don’t have to generate copies of digital media files in order to share them, and when they post directly to Facebook from StoAmigo, they retain the rights to their photos, videos and music. Users can easily share the things they love with family and friends anywhere in the world, all from StoAmigo’s user-friendly interface. StoAmigo’s unique permission settings also support sharing in the truest sense – where media is not given away. Share permissions can be set for view only, without giving downloading privileges. Any share can be customized based on what permission level the user wants to give to each of the recipients, and shares can be modified or retracted at any time. If a user wants to share a digital media file for a certain time-frame, it can be retracted with just a few clicks. The StoAmigo system supports a return to the true idea of sharing when it comes to media, giving users complete control of their owned media and protecting files from inappropriate downloads or duplication. At the same time, it removes the restrictions of location and inadequate hard drive space that often make consumers’ favorite media files inaccessible when they are away from home. StoAmigo is an innovative solution for providing increasingly mobile and social consumers with access to the digital content they love the most. 9 GfK Group, July 2012 10 Ben-Evans.com, January 2, 2013 4
  • 6. About Duvon Corporation Duvon Corporation operates globally with offices in the United States, Europe and Asia. Duvon is committed to being a leader in providing unique solutions for a changing world. Our passion is personal cloud innovation as it relates to human interaction – enhancing the way that people interact with one another and with technology. The Duvon team is made up of a diverse group of computer scientists, networking professionals, mathematicians and business professionals who are dedicated to conceiving, building and delivering advanced applications that merge social networking with the personal cloud, increasing productivity and enriching our lives. Our mission is to anticipate and meet consumer demand for a complete digital lifestyle that provides storage, file synchronization, streaming and social interaction. As the personal cloud becomes central to our everyday life, our goal is to provide an unparalleled ecosystem that enhances the human experience and is secure, enjoyable, and consistent across multiple screens and multiple environments. Duvon Corporation 5538 S. Eastern Avenue Las Vegas, NV 89119 702.948.9770 info@duvon.com Want to learn more? Please visit us online at www.duvon.com. Copyright © 2013 Duvon Corporation. All rights reserved. 5