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>> Video in the living room, Flash arriving on TVs and things like that. Where do we stand with that? I know there are some cool products coming out. People have eluded today to a Visio TV with that has Flash on it, there are a number of these products coming out. Tell us what to be excited about and what it all means.

>> Ok well the real exciting transition that's happening is that Flash is coming to a bunch of different devices, non personal computer devices. Smart phones as well as televisions and other devices in the digital living room set top boxes, game consoles and other devices. But one of the exciting things is televisions themselves are becoming IP enabled and so you have embedded processor inside the TV as well as network connectivity and we're working with both a system on chip vendors as well as some of the TV manufacturers to enable Flash for a variety of different television platforms and those are coming out starting this coming year. So we'll start seeing the first wave of those and that's about delivering not only consistent video experience across devices so as you're streaming video in Flash you can reach all these different screens but also this kind of future of interactivity on the television and the experimentation with that and what does it mean to kind of just kind of passively watch the video but start interacting. We're seeing that on PCs today that I think is gonna start coming into the living room as well.

>> So if I think of a processor in my TV and I think of Flash on there I have to extrapolate out to software layers and things like widgets and applications that might be there the basic infrastructure of what you'd find on a computer. Are we gonna see that kind of software ecosystem arrive?

>> Well I think it's going to be specific to each different kind of device type. You wouldn't want to have the same kind of binder experience that you would you know on your PC On your television but I think that the concept of viewing content from the internet will be on the television and interacting with little applications will be part of the TV experience as well whether those are widgets or other forms of expression but the idea of having kind of icons and apps on your television I think is something that we'll start seeing more of but it can't be at the same level of kind of complexity that we're seeing on personal computing.

>> Right so you're not gonna have your Internet Explorer tree but you might have a widget that's stores your 1 click ways to get to your favorite shows, things like that.

>> Exactly and be able to watch or interact with the same content across multiple screens is what we're working on so if you're creating even a game for example like a Suduko game you might want to play that on your cell phone when you're walking around. It was built in Flash can run on smartphones next year and also you can continue that game on your personal computer. So our goal is to make it so that those applications can run not only on devices but you can also drag that application to your computer and continue running that same application and place that same application on your television set so if you're playing this game you can even have continuity not only with the same app but the same game your playing so you stop playing it on your cell phone, you resume on your PC and then you get home and there's a commercial and you want to pull it up again to play it a little more you can and the idea is to not only enable these experiences to run consistently but have them be an integrated experience across these different screens.

>> Ok so this is really some of what we were hearing years ago would happen that took so long to happen, its really convergence between the television and the computer.

>> Right and it's really about getting network connectivity to perform fast enough to deliver these rich experiences to the screens and getting processing power to get to the point where you can actually run code on the different devices and have it perform well enough and we're just getting there now with television so.

>> Ok so you have some pretty major overhauls of Flash coming up and Flash of course is number one out there in the video world. It's I think the figures Adobe quotes are 80-90% of all video watched online is Flash.

>> Yep.

>> I go back to the days when Flash was kind of like a plug in in Netscape like Shockwave was and they had very small audiences out there and it was a big thing if you could get your plug in and browser and all of that. Look at it now.

>> Right.

>> So what are you what are you gonna deliver with the next version of Flash and will we see things like improvements in video quality?

>> Yeah absolutely. So already we have HD quality inside Flash player. We introduce that in an update to Flash player 9 last year and we're also support H.264 which is a great video format and it's widely adopted and there's good hardware acceleration for that so what we're working on now is Flash player 10.1 and that is aiming at getting Flash to work consistently across devices. So we're updating on the personal computer too but the big focus is on smartphones and digital living room and so that means taking advantage of GPUs, graphical processing units across these different devices, supporting the different input mechanisms on these devices whether it's touch screens or remote controls or other ways of getting input it, getting that consistently across different operating systems as well as for video supporting streaming video over HDTP if you want to do that. Something that we're introducing in Flash Player 10.1 as well as P to P support so if you want to take advantage of other distribution models to more efficiently get your video out you can do that as well.

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