User Experience and Application of the FlixStix^TM method - The core of the FlixStix^TM concept is a patented method for video content distribution and rental that is scalable, utilizes proven industry standards, and is well suited for publicly accessible locations with broadband connectivity. Titles can automatically be stocked through a secure internet connection, and content replacement can be managed based on predetermined content expiration.

An Easy, Convenient User Experience

1. Subscribe online, at a FlixStix^TM enabled location, by phone or by mail (set-up, parental control/ratings, payment info), and acquire an industry standard USB media stick.
2. Sign in with a password at a FlixStix^TM enabled location and insert a media stick.
3. Search and select movie titles (or pre-order upcoming releases).
4. Download (watch ads and/or trailers while selections are copied to the media stick)
5. Insert the media stick into a set top box, portable media player, TV or computer and press play. Movie selections on the reusable media stick will automatically expire after viewing.

The FlixStix^TM method differs from other content distribution arrangements in several ways.

• Brick and mortar movie rental stores require the overhead of employees, large storefronts, have limited inventory, with selection limited to in-stock items. Consumers spend time & travel, wait in line at checkout (often just to purchase a single item) and must then return the DVD. Additionally, store employees spend time managing SKUs and assisting customers in finding selections. The FlixStix^TM concept targets consumers who enjoy the simplicity of physical media and provides them the opportunity to rent videos at the same location where they purchase other goods & services. A user driven video catalog reduces the need for customer assistance, and the high durability of media sticks means fewer complaints and product returns due to damaged media. Automatic content expiration saves the customer time & travel as there is no need for a return trip.

• Video rental by mail requires cost of shipping, transit time, and loss or damage in transit can occur. Sensitive title selections by mail also lack privacy. The FlixStix^TM method supports impulse buyers and offers fast point of sale. USB media sticks (that are used as transfer vehicles) can remain privately in the possession of the primary customer.

• Popular internet movie rental services such as Netflix^® and Apple TV^TM require broadband internet access, a fast computer or the purchase of a digital media player. Also, internet movie rental services may not satisfy a consumer’s desire for physical media. The FlixStix^TM method does not require the consumer to have a broadband connection or special hardware, provides for a standard interface at all FlixStix^TM enabled locations, and utilizes standard media.

• Automated DVD rental kiosks are limited to the stock on hand and require a return trip. The FlixStix^TM method does not require a return trip. As innovations in high quality playback from small digital file size continue, the FlixStix^TM method will offer higher quality content. Advancements in solid state media density provides that the FlixStix^TM method can offer multiple titles per device.

• “Pay per view” services require subscription fees, and selections resident on a person’s TV or set top box are not playable on other devices. The FlixStix^TM method offers consumers the satisfaction of physical media, has no subscription fees, and title selections will play on a variety of industry standard devices.