PVR/DVR MarketPVR/DVR Market

November 4November 4thth, 2004, 2004

Brendan Collins

VP, Core Products Marketing

Maxtor Corporation

Maxtor Confidential 2Nov 4, 2004

Total CE Market

173% Portable Video430% Cell Phone

59% Camera

72% Audio/MP3

’02-06 CAGR

59% Overall

Un

its

(mil

lio

ns)

CE HDDs by Application

0

10

20

30

40

50

60

70

80

90

2001 2002 2003 2004 2005 2006

104% Auto

13% Game Box

133% PVR/DVR

Source: TrendFOCUS

Maxtor Confidential 3Nov 4, 2004

3.5” Form Factor

0

50

100

150

200

250

300

2001 2002 2003 2004 2005 2006

97% Personal Storage

44% Enterprise

50% CE

11% Channel Inventory

5% Home PC

5% Business PC

’02-06 CAGR

Un

its

(mil

lio

ns)

3.5” HDD Unit Growth

13% Overall

The CE market is by far the fastest growing segment of the 3.5” space, but is still a long way off from approaching the size of the PC market

Source: TrendFOCUS

Maxtor Confidential 4Nov 4, 2004

Size, Growth, and Penetration of DE Markets

-40%

-20%

40%

60%

80%

100%

100%HDD Penetration

CA

GR

Size of the bubbles is proportional to the size of the corresponding market (in units)

Mobile Phones

Desktops

Laptops

PVR/DVR/STB

MP3 Players

Game Box

Automotive

Digital Photo

PDAs

Handheld Games

Portable Video

Device % w/HDD CAGR Units Desktop PC 100% 5% 125.7

Notebook PC 100% 16% 38.4 PVR/DVR/STB 100% 92% 10.0

Game Box 28% -22% 33.9 MP3 players 8% 74% 32.2 Automotive 6% 50% 10.3

Portable Video 5% 14% 1.2 Digital photo 1% 55% 48.8

PDAs 1% -10% 10.4 Mobile Phones 0% 17% 535.9

Handheld Game 0% -9% 19.7

Full year 2003 actuals

PVR, Laptops, and Desktops all have 100% HDD penetration. All other applications but game box have less than 10%. All would require small form factor drives

Maxtor Confidential 5Nov 4, 2004

0

100

200

300

400

500

600

Desktops PVR/DVR/STB

MP3 Players

Portable

Video

PDAs Mobile Phones

Un

its,

Mill

ion

s

Notebooks Game box Automotive DigitalPhoto

Handheldgames

Devices with HDDs

Devices without HDDs

100%

100%

100%

28% 8%6% 5%

1%

1% 0%

0%

All potential markets are dwarfed by the cell phone market. Applications with a PC-architecture (PVR, Game box) show high penetration

Size and Penetration of DE Markets - 2004

Maxtor Confidential 6Nov 4, 2004

PVR/DVR Market Segmentation

Stand AloneStand AloneDVRsDVRs

Pay TV Set Pay TV Set Top BoxesTop Boxes

Converged Converged Devices & Devices &

Media CentersMedia CentersDVD-R/HDD DVD-R/HDD RecordersRecorders

• 40 - 80 GB • 2 Streams 1 tuner (40 Mbps) • $ 600 - 1200 ASP• Acoustics

• 40 GB • 2 Streams 1 tuner (40 Mbps) • $ 400 - 600 ASP• Acoustics • Power/Heat “Best in Class”

• 80 GB• 2 Streams 1 tuner (40 Mbps) • $100-200 ASP• Acoustics • Power/Heat “Best in Class”

• 40 GB• 2 Streams, 1 tuner (40 Mbps) • $100-200 ASP • Acoustics• Reliability

• 80 - 300 GB • 2 - 4 Streams, 2 tuners (80 Mbps) • $ 700 - 1800 ASP• Acoustics

• 80 - 300 GB • 2 - 4 Streams, 2 tuners (80 Mbps) • $ 700 - 2000 ASP• Acoustics • Power/Heat “Best in Class”

• 80 - 300 GB • 2 - 4 Streams, 2 tuners (80 Mbps) • $ 250 - 400 ASP• Acoustics • Power/Heat “Best in Class”

• 80 - 300 GB • 2 - 3 Streams, 2 tuners (60 Mbps) • $ 250 - 400 ASP• Acoustics

• 400 - 500 GB • 2 - 4 Streams 4 tuners (80 Mbps) • $ 1000 - 2500 ASP• Acoustics

• 400 - 500 GB • 2 - 4 Streams 4 tuners (80 Mbps) • $ 850 - 2000 ASP• Acoustics • Power/Heat “Best in Class”

• 300 - 500 GB • 4 - 7 Streams 4 tuners (140 Mbps) • $ 250 – 2,000 ASP• Acoustics • Power/Heat “Best in Class”

• 300 - 500 GB • 3 - 4 Streams, 4 tuners (80 Mbps) • $ 250 - 400 ASP• Acoustics

EntryEntry

Mid Mid RangeRange

High High EndEnd

Maxtor Confidential 7Nov 4, 2004

Editing Broadcasting On Demand PVR/DVR

Creation Delivery Playback

Multiple AV Content Storage Systems

• Maxtor has participated mostly in the Playback segment• Distributed VOD systems are potential SCSI/SATA opportunity that is being opportunistically supported• Edit and Broadcast area are unknown opportunities and are small but profitable

Maxtor Confidential 8Nov 4, 2004

Digital Entertainment Landscape

Audio

Video

Games

Creation Delivery Creation Delivery PlaybackPlayback

                                                       

Maxtor Confidential 9Nov 4, 2004

Why Maxtor?

Maxtor is the early mover in the DVR market

• An original investor in TiVo• Market share leader• First HDD in a cable STB• Large number of design wins

with ~50 different customers

Maxtor Confidential 10Nov 4, 2004

• Mechanical design consulting, testing and integration support

– Thermal– Acoustics– EMI– Shock and Vibration– Packaging– Power

• Qualification– Joint qualification – Support

• Performance– AV Throughput– AV profiling, modeling, testing– STB system optimization

• AV HDD feature development– QuickVIEW (Advanced)– Industry standard (T13)– Custom (Proprietary)

• Host-based software technology– Core Linux DVR functionality– Content encryption/security

• Manufacturing support services– Factory integration consulting,

training• Quality systems

– Process assistance– AFR Monitoring and Reporting– Failure Analysis

• Systems solutions co-development

– Reference designs– Chipset/middleware compatibility– Open Standards influence

(T13, SATA, 1394 TA, USB2, etc.)

PVR/DVR MarketPVR/DVR Market

November 4November 4thth, 2004, 2004

Brendan Collins

VP, Core Products Marketing

Maxtor Corporation