Broedur IPTV Presentation

Understanding IPTVUnderstanding IPTVNRB 2008 – Nashville, TNNRB 2008 – Nashville, TN

Bernie ArnasonBernie ArnasonManaging Partner, Pivot Media LLCManaging Partner, Pivot Media LLC

March 8, 2008March 8, 2008

2

Brief TV Entertainment History

3

IPTV Defined

• Not “Web TV”– Internet Protocol Television

– Often confused with accessing video over the Web/Internet

– Uses the same networking technology/protocol as the Internet, but video services utilize a closed telecom network (most likely DSL or FTTH)

• Introduces a wealth of new features

IPTV expands upon traditional cable TV service by leveraging web and communications

technology to create a compelling entertainment experience.

4

IPTV Fuels New Communications Features

TV Caller ID with TV “Pause” Feature

Screen shows Caller ID, program pauses. Consumer controls voice call w/ remote.

5

IPTV Fuels New Communications Features

Frank wants you to join the Soccer Chat!

“red button”

Instant Messaging and Chat Functionality

6

IPTV Fuels New Communications Features

Instant Messaging and Chat Functionality

Hi Philip, nice having you with us!

7

IPTV Fuels New Communications Features

Instant Messaging and Chat Functionality

Frank Susi Philip Takashi Mohammed

8

IPTV Fuels Web Type InterfacesBetter Organization and Presentation of Many Content Choices

9

IPTV Helps Fuel On Demand Behavior

Beginning to see a shift in TV behavior – away from linear to on-demand

10

IPTV Puts the Viewer in Control

Multiple Camera Angles – User Decides Which to Watch

11

IPTV Today• Empowers Telecom Service Providers to Compete with Cable MSOs

– Completes the triple play bundle of voice , high speed Internet, and video– Cable industry has their own triple play bundle of video, high speed Internet, and

VoIP derived voice service

• High Stakes Competitive Battle– Possibility of losing entire subscriber to competition

• Previously, I might just lose one service– Puts DBS at serious disadvantage

• Unable to offer triple play bundle (for now)

12We are here, ready for broad market acceptance

MPEG-2 MPEG-4

IPTV Adoption

13

IPTV Advantages/Disadvantages

• Advantages– Network architecture affords unlimited channel capacity

– Advanced features

– Allows telecom operator to utilize portions of its existing network

• Disadvantages– Challenged by high bandwidth applications like HDTV

– New technology – still several “kinks” to be worked out

– Content acquisition challenges

14

IPTV Ecosystem

15

Implications of IPTVExisting Pay TV Operators

• Formidable new competitor in telecom service providers

• Downward pressure on ARPU

• Increase in marketing budgets, particularly in emerging IPTV markets

16

Implications of IPTVTelecom Service Providers

• Dramatic repositioning of company

• Extreme cultural shift

• $Billions in new CAPEX expenditures

• “Once in a lifetime” event

• Over 1000 telecom service providers in the U.S.

17

Religious Broadcaster Opportunity

• Traditional carriage opportunities– Large carriers – direct deals\

– Smaller carriers – aggregator deals

• Avail Media, IP Prime, NRTC, NCTC

• Video On Demand– Future of TV?

– Leverage content libraries for a new distribution medium

– Extends to both IPTV and cable

• Internet/BroadbandTV– Video content distribution over the Internet

– Convergence of BroadbandTV and traditional pay TV

18

www.telcotvonline.com

19

Key Takeaways

• Television has been a part of our lives for over 60 years and it is rapidly evolving – IPTV is playing a significant role in this evolution

– Current evolution will result in an entertainment experience that allows consumers to receive their desired choice of content whenever and wherever they want to

• IPTV fuels a new variety of entertainment features and applications– Implications on traditional advertising/marketing

• Existing cable and DBS service providers need to prepare for a new competitor in the marketplace

• Telecom service providers are repositioning themselves as full service providers of telecommunications and entertainment services

• Religious broadcasters have a new distribution medium to exploit

20

Questions

Bernie Arnason

Office: 240-450-2161

[email protected]

www.pivot-media.com

THANK YOU!