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engage in real-life pursuits, rather than the more passive entertainment pursuits represented by broadcast television and radio. Because many people are more affluent, they have more toys and hobby options. These activities compete for consumer attention. Because many people have more to distract themselves with, it will be harder to get them to engage with streaming media than it was to create the initial television audiences. Teenagers, in particular, have begun to turn the Internet off. What was once a fascinating pastime has become just another thing to play with. The Internet wasn t what they wanted. The waiting was just too much. For streaming media to succeed, providers of the service will need a full understanding of the competition for attention that exists today so that they can market their services appropriately. There is little evidence that this is happening.

Description Provides a foundation for visibility of information, such as inventory levels by location

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As we mentioned, if digital rights management and protection are seen as too obnoxious and obtrusive, consumers will simply reject streaming media and stick with other more familiar forms of entertainment. Consumers are rightfully concerned that rights management seems to be a one-way street, with protection for the content owners, but little to protect the consumers. They are also concerned that rights management will merely oblige them to pay again for music they have already bought on CDs. They fear that they will have to pay again and again to access music or videos they love. In other words, they fear that the content production industry is using the opportunity to compel them to pay more for their digital media. Any major record label or Hollywood studio that sees rights management as a way of extracting greater profits from media assets, through excessive access charges, could be in for a rude shock. There is already evidence that the movie industry has used DVDs to charge more for media content than they could with VHS tapes, even though the costs of production and distribution are somewhat lower for DVDs. What record labels and movie studios need to understand is that they no longer enjoy a de facto monopoly or control over the production, distribution, and marketing of digital media. Streaming media makes it possible for people with modest production budgets to produce quality entertainment. Distribution is much simpler with streaming media than mastering and

The results of the baseline valuation are shown in ValuePro general input screen (Exhibit 8-13), which shows Merrill to have an 8.53-percent cost of equity, and Merrill s stock to have an intrinsic value of $72.50 significantly higher than its closing price on December 17th, of $40.13.

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Supply Chain Analytics Enables extracting, processing, and pushing data toward decision makers Supply Chain Event Management (SCEM) Alerts designated recipients to exceptions to preset boundary conditions so that corrective actions can be taken as needed Wireless, radio-wave-based technology that allows companies to track tagged items without contact or line-of-sight scanning Enables shared information on orders, forecasts, inventory status, and stockouts Enables shared information on orders, forecasts, inventory status, and stockouts Optimizes use of supply chain resources, including capacity, materials, and labor, while enabling execution in accordance with company-de ned priorities Allows companies and their key customers and suppliers to integrate the requirements and constraints of each collaboration partner in co-developing forward supply plans Integrates the work ows needed for simultaneity De nes business rules and associates them with business processes so that companies can create expert systems that monitor the supply chain

pressing a CD or DVD ever was There is no longer a need to truck product to distribution centers nor to compete for shelf space in music and video retail outlets No intermediaries need to make a profit, since streaming media allows content producers to sell directly to end-users worldwide As for marketing media properties, major labels once used their stranglehold on radio to promote only their product Studios used the limited number of film exhibitors to keep alternative media product out of circulation Streaming media allows marketing directly to the consumer, bypassing these marketing monopolies Building an audience for a media asset is more difficult for the incumbents, due to audience fragmentation, but easier for independent producers, since all the same marketing avenues and many new ones are now available to them.

It is our belief that the 13-percent consensus analyst expectation of earnings growth is too high for Merrill. What if the growth in earnings at Merrill follows a more reasonable 5 percent If we keep other inputs

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