Contents:

Methodology 2 Research Objectives 4 Key Findings 5 Market Background 8 Part I: Quantitative Research Detailed Findings I. Sizing the Digital Ocean 9 II. Current Storage Solution 13 III. Backing Up 18 IV. Future Storage Solutions 23 V. Targeting User Segments 25 Part II: Qualitative Research Detailed Findings VI. General Feedback about Data Storage 29 VII. When They Do Back Up their Files 34 VIII. When They Don’t Back Up their Files 37 IX. Concerns and Suggestions 40 Conclusions 42 List of Topics Discussed 43-297 Gender Age Race Ethnicity Internet Connection Income Region Ce Ownership Digital File Ownership Number Of Digital Files: Digital Photos? Number Of Digital Files: Other Images (E.G., Graphics)? Number Of Digital Files: Music? Number Of Digital Files: Audio Books? Number Of Digital Files: Other Audio Files? Number Of Digital Files: Home Movies? Number Of Digital Files: Television Shows? Number Of Digital Files: Movies (Not Including Home Movies)? Number Of Digital Files: Other Video Files? Number Of Digital Files: Pdf Files? Number Of Digital Files: Scanned Documents? Number Of Digital Files: Home Office Documents? Number Of Digital Files: Game Files? Number Of Digital Files: Other Types Of Digital Files? Percentage Of Files In Highest Quality Audio Percentage Of Hd Video Files Number Of Digital Files Expected To Create/Capture: Digital Photos? Number Of Digital Files Expected To Create/Capture: Other Images (E.G., Graphics)? Number Of Digital Files Expected To Create/Capture: Music? Number Of Digital Files Expected To Create/Capture: Audio Books? Number Of Digital Files Expected To Create/Capture: Other Audio Files? Number Of Digital Files Expected To Create/Capture: Home Movies? Number Of Digital Files Expected To Create/Capture: Television Shows? Number Of Digital Files Expected To Create/Capture: Movies (Not Including Home Movies)? Number Of Digital Files Expected To Create/Capture: Other Video Files? Number Of Digital Files Expected To Create/Capture: Pdf Files? Number Of Digital Files Expected To Create/Capture: Scanned Documents? Number Of Digital Files Expected To Create/Capture: Home Office Documents? Number Of Digital Files Expected To Create/Capture: Game Files? Number Of Digital Files Expected To Create/Capture: Other Types Of Digital Files? Acces To Files Location Of Files Location Of Long-Term Storage Storage Location Size Of Internal Harddrive Percentage Of Harddrive Space Used For Digital Files Satisfaction With Long Term Storage Length Of Time Files Can Be Stored Without Degrading Length Of Time Files Can Be Stored On Flash Memory Without Degrading Back-Up Files Method Of Backing Up Files Number Of Files Backed Up: Digital Photos? Number Of Files Backed Up: Other Images (E.G., Graphics)? Number Of Files Backed Up: Music? Number Of Files Backed Up: Audiobooks? Number Of Files Backed Up: Other Audio Files? Number Of Files Backed Up: Home Movies? Number Of Files Backed Up: Television Shows? Number Of Files Backed Up: Movies (Not Including Home Movies)? Number Of Files Backed Up: Other Video Files? Number Of Files Backed Up: Pdf Files? Number Of Files Backed Up: Scanned Documents? Number Of Files Backed Up: Home Office Documents? Number Of Files Backed Up: Game Files? Number Of Files Backed Up: Other Types Of Digital Files? Frequency Of Back Up: Digital Photos? Frequency Of Back Up: Other Images (E.G., Graphics)? Frequency Of Back Up: Music? Frequency Of Back Up: Audio Books? Frequency Of Back Up: Other Audio Files? Frequency Of Back Up: Home Movies? Frequency Of Back Up: Television Shows? Frequency Of Back Up: Movies (Not Including Home Movies)? Frequency Of Back Up: Other Video Files? Frequency Of Back Up: Pdf Files? Frequency Of Back Up: Scanned Documents? Frequency Of Back Up: Home Office Documents? Frequency Of Back Up: Game Files? Frequency Of Back Up: Other Types Of Digital Files? Household Member Who Backs Up Files Reasons For Not Backing Up Files Start Of File Back Up Satisfaction With Back Up Preference Importance Of Ability To: Easily Share Them With Others? Importance Of Ability To: Easily Move Them Around? Importance Of Ability To: Easily Print Them? Importance Of Ability To: Easily Listen / Watch / View Them? Importance Of Ability To: Easily Make Back-Up Copies? Importance Of Ability To: Easily Store Them For Long-Term? Agree/Disagree: I Need A Device That Can Better Organize My Digital Files. Agree/Disagree: I Need More Storage Space For My Digital Files. Agree/Disagree: I Need A Better Way Of Backing-Up My Digital Files. Agree/Disagree: I Am Concerned About Losing My Digital Files. Agree/Disagree: I Am More Concerned About Losing My Digital Files Than My Physical Ones (E.G., Music Cds, Paper Files, Printed Photos). Agree/Disagree: I Am Concerned About Running Out Of Storage Space For My Digital Files In The Future. Expected Storage Purchases Expected Storage Expenditures Technology Adoption Marital Status Education Generational Cohort

Methodology

The report described herein was designed and formulated by the Consumer Electronics Association® (CEA). The research includes a quantitative component and a qualitative component. Quantitative Research Methodology The quantitative study was administered via Internet web form to an online national sample of 978 U.S. adults with digital files between December 11 and 18, 2007. The margin of sampling error at 95% confidence for aggregate results is +/-3%. Sampling error is larger for subgroups of the data. As with any survey, sampling error is only one source of possible error. While non-sampling error cannot be accurately calculated, precautionary steps were taken in all phases of the survey design, collection and processing of the data to minimize its influence. As it relates to satisficing behaviors among research respondents, steps were taken to identify and minimize satisficing to ensure the highest quality data. As is common practice in survey research, the data was weighted to reflect the known demographics of the population under study. In this survey, weights were applied to cases based on gender, age, race and type of home Internet connection. As a result, this data can be generalized to the entire online U.S. adult population. The bases shown on all charts and tables are weighted bases. All percentages in the text, charts and tables included in this report are also based on weighted data. CEA designed this study in its entirety and is responsible for all content contained in this report. During the fielding of this study, CEA employed the services of Survey Sampling to provide email- based sample. The e-mails were pulled as a random sample from a nationally representative panel of online households. The Consumer Electronics Association is a member of the Marketing Research Association (MRA) and adheres to the MRA’s Code of Marketing Research Standards. Note: In the analysis and presentation of some data, the following figures were used in calculations: Total U.S. Population: 305 million Total U.S. Adult Population: 231 million Total U.S. Households: 114 million Percentage of U.S. Adults with Internet Access: 75% The above data are 2007 projections made by CEA, based on the U.S. Census Bureau’s 2006 American Community Survey. Qualitative Research Methodology Information for the qualitative portion of this study was obtained through 120 in-depth online interviews completed between December 12 and 13, 2007. The interviews were conducted among targeted respondents from the quantitative survey. CEA commissioned iModerate, an independent third-party research firm that specializes in online one-on-one qualitative research, to conduct the interviews. NOTE: The information contained in this portion of the study is of a “qualitative” nature. That is, this information was gathered through non-scientific means as a way to ascertain thoughts and ideas about the subject matter. In order to draw substantive quantitative conclusions about the population as a whole, a “quantitative” survey must be administered. The scientific survey will reveal the extent to which the thoughts and ideas of these interview participants are held among the wider target population.