PPT

HD is coming to Europe……how to prepare your hotel

HTNG Europe conference, November 2008

CONFIDENTIAL Professional and Business Solutions, June, 2008 3

Royal Philips ElectronicsFacts

– Founded in 1891, HQ in Amsterdam, the Netherlands

– No. 1 in Global Lighting and Patient Monitoring, diagnostic imaging and male shaving

– Among the world top 3 Consumer Electronicscompanies in served markets (€ 26,7 bln in 2007)

– Owner of 60,000 active patents

– No. 42 of the world’s most valuable brands

– No. 38 of the world’s most innovative companies

– Sustainability as the cornerstone of its strategy

PROPRIETARY

CONFIDENTIAL Professional and Business Solutions, June, 2008PROPRIETARY 4

–Installed more than 7 million Hotel TVs worldwide

–More than 28 years of experience and commitment in the Hospitality market

–200 employees worldwide working dedicated for hospitality

–Reached preferred supplier status with several of the major international hotel chains

–Very close working relations with most System Integrators, offering Hotel TV entertainment

–Proven backwards compatibility over time

Philips Hospitality


The road to HDTV


History of HDTV in the US (1/2)

Market has completely switched from CRT to LCD

– LCD revealed poor quality of analogue broadcast signal

FCC has guided the market to move to new digital standard

– FCC has directed the market to digital (NTSC > ATSC)This paved the way for HDTV as well

NTSC

PAL

HD

All covered with ATSC


History of HDTV in the US (2/2)

For the consumer, switching-barriers were kept low..

– Built-in digital tuner is now mandatory in the US (for 20” and larger)– Government offered set-top box vouchers, for people unable to buy new TV– For cable and satellite set-top boxes were often offered by the provider

Buy HD-ready flat screen Change subscription to digital Watch digital TV

HD became common for US consumeras it was part of the digital package


There’s no central European legislation (like FCC)

– Countries pick their own time for analogue switch-off– Countries pick their own distributions standards

(DVB implementation differs per country)

Many languages, many different channels

– All countries have their own channels in their language– There’s no European must-carry regulation

What is happening in Europe (1/3) Europe is different…


What is happening in Europe (2/3) Planning analogue switch-off*

2010 2007

2007

2008

2010

2006

2012

2008

2010

20122011

2010

2012

Determined by region.Between

2008 and 2012

*Terrestrial / over-the-air


What is happening in Europe (3/3) DVB-T MPEG4 developments

Denmark, 2009MPEGP4 SDMPEG2 switch off 2010

Sweden: MPEG4 SD mux added in 2008?

MPEG4 HD follows in 2010?

Estonia / Lithuania: MPEG4 SD channelssince Dec.2006

Latvia still MPEG2

Poland: 7 MPEG4channels in mid 08?

Hungary: MPEG4selected , launch expected 2008-2009

Slovenia: MPEG4selected, launch in 2008

UK, commercially 2009?

Ireland start end 2008,beginning 2009

France: 3 HD FTAchannels in Q4 08/pay-DVB-T platform

Portugal: spring 2008?

Spain: Trial,commercial 2010?After ASO Italy: Trial

CONFIDENTIAL Professional and Business Solutions, June, 2008PROPRIETARY

Technical standards for consumer market all in place– Blu-ray disc, HDCP, HDMI, HD ready / Full HD

All major studios now releasing new movies in HD on Blu-ray Disc

Nevertheless…HD is coming to Europe anyway (1/2)

11


HD ready penetration of European TV-households is already 23% (2007 EOY)

– 37mio HD ready TVs sold so far, from which 22mio in 2007

Already > 135 HD broadcast-channels available in Europe

– And many other broadcasters preparing

Nevertheless…HD is coming to Europe anyway (2/2)

HD will soon be commonfor European consumers as well !


HD cannot be ignored by hotels


TV is a must for hotel guests…

Score 6-7 with 7meaning fits perfectly

AmbienceInfotainment

N-5408, US, Germany and China

Ideal technical amenities/aspects guest room


But often…Perceived as ‘below standards’

Aspects below standards in the real world

N-5408

Score 1-2 with 1meaning almost always below


Ignoring HD

– will drive this experience even further away from the guests standard, as HD will be perceived as a standard by consumers soon

Offering HD

– will enable the hotel to meet customer expectations onin-room-entertainment again

– will enable the hotel to maintain and increase room rates and occupancy, as guests will return to hotels, that do meet their expectations

So next step to HD…Cannot be ignored by hotels (1/2)


So next step to HD…Cannot be ignored by hotels (2/2)

– “With the rise of competing media like internet and mobile devices, the role of TV in the guest-room is changing. Among all these alternatives, the differentiator for the TV will be high quality picture & sound. I therefore believe that HD will be the new standard for TV. For hotels, today it will still be a differentiator. Tomorrow however, HD will be a must, just like it happened with wireless internet. And tomorrow always comes sooner than we think. “

David Esseryk, Innovations & Technology ManagerAccor Hotels


1. In the US the (consumer) market was smoothly guided to HDWith the forced transition to digital

2. In Europe the transition to digital and HD is more fragmentedEverything differs per country, no European legislative directives

3. Nevertheless, HD is coming to Europe anywayBoth living rooms and content providers are ready

4. And this cannot be ignored by hotelsTV is a must for hotel guests, and often already perceived as below standard

What have we learned so far


What does it take to offer HDIn your hotel


What does it take to offer HD In your hotel1. HD TV channelsAlready 136 channels available in Europe

2. HD TV VoD moviesFirst HD movies now available for release in early hotel window3. HD prepared infrastructureSystem integrators are now preparing for HD4. HD prepared TVsNew Professional TVs for hospitality market are all HD ready

IPTV


Learings from HDTV in the USHotels were different…

Hotel-chains were seen as an “extension” of the consumer market

– Hotel televisions were categorized as “consumer” under FCC guidelines– Content security was not at the forefront of the FCC agenda

Hotel-chains were NOT able to make the move to HD

– Infra-structure in hotels was not prepared for content-protected movies– Content Protection measures were still very immature

Hotel-chains did not meet customer expectations anymore– Digital TV and HD had become common in the living room– Hotel guest rooms were still analogue


HD requires additional Content Security measures

– “The protection of content is first and foremost in the minds of both Filmbank and the film studios it represents for all its markets including content distributed via hotel in-room systems.

With the advent of HD being available in hotel rooms, the protection of copyright is further heightened and any system which provides a great level of security for all available content is gladly received by both Filmbank and the copyright owners (the film studios).”

Majella Griffin, General ManagerFilmbank Distributors Limited


HD requires additional Content Security measures

– “We are in discussions with the various right owners in order to be able to offer HDTV programmes to guests in Premiere Hotels as well.

However, the Hollywood studios in particular require a special protection for HD content, which, at present, cannot be sufficiently guaranteed by us.

We are already working on technical solutions together with the right issuers as a matter of urgency.”

Tonio Fruehauf, Vice President Hotel & GastronomyPremiere Hotel Entertainment GmbH


4. HD prepared TVsNew Professional TVs for hospitality market are all HD ready5. HD Content SecurityHD requires additional Content Protection…5. HD Content Security…and Content Identification measures

IPTV


HD content security solutions


Current HD content security solutions

There are lots of content security solutions already available, these are however…

– Often mass-market focused

– Often Video on Demand focused

– Often lacking session-based content identification

– Often suited either for RF or for IP distribution only

– Often set-top box only

None of these solutions truly covers all hospitality market needs


Specifically developed for hospitality market

Widely applicable

– Can be implemented in a set top box, as well as directly in the TV. – Compatible with both DVB (over RF) as well as IP (over ethernet).

Easy to implement

– Can be implemented on existing encryption and decryption hardware.

Open

– Will be made available to the industry (system integrators, head-end providers, STB providers and TV providers) through a licensing model.

A new open standard for hospitality is proposed… (1/2)


VSecure (Content Protection)

– Ensures protection of content against interception & copying while being distributed (in digital format) in the hotels infrastructure

VTrack (Content Identification)

– Enables detection of illegal analogue copies afterwards, by incorporating an imperceptible watermark in the content before presenting it in the TV-screen

A new open standard for hospitality is proposed… (2/2)


A new open standard for hospitality is proposed

IPTV

VSecure Content ProtectionVTrack Content Identification


Approved & embraced


Approved by content providers…

– “Filmbank welcome the launch of the new Philips security system into the technology marketplace.

The Philips system has been tested and approved by a number of studios represented by Filmbank Distributors, meaning that a wide variety of content will be available to hotels who implement the system into their rooms.”

Majella Griffin, General ManagerFilmbank Distributors Limited


Embraced by system integrators…

– “The ability to provide HD content in the hotel room will over time become the de facto standard and Quadriga recognise that the protection and security of this HD content will be a pre requisite for the content owners. To ensure that going forwards Quadriga can continue to offer a compelling selection of entertainment for hotel guests it is critical that a robust and secure mechanism is in place. Quadriga therefore welcome Philips initiative to introduce a specific open content protection solution for the hospitality market.”

Marc BudieTechnology DirectorQuadriga



– "We strongly believe in the importance of offering HD content in the next generation hotel room and are hence pleased that Philips will introduce a complete and cost-effective content-security platform for HD in hotels. As it is an open and easy-to-implement solution, we think this is a serious challenger to become a standard in the European hotel market. We therefore intend to support this solution in the future."

Lorenzo BaroniGroup Managing DirectorVDA Multimedia



– “At the moment, we are a forerunner in offering HD content in hotel environments, with several implementations up and running already. Therefore we are thrilled with Philips introducing an approved and open HD content security solution for the hospitality market and intend to implement this solution in the near future”.

Markus HiebelerCEODeuromedia



– “We strongly believe in the importance of offering HD content in the hotel room and are therefore excited that Philips will introduce a complete and cost-effective content-security solution for HD in hotels. Since it is specifically suited for the hospitality market and open to the industry, OTRUM welcomes and fully supports this solution”

Nigel BatesonVice President productsOtrum



– “We strongly believe in the importance of offering HD content in the next generation hotel room and are therefore excited that Philips will introduce a complete and cost-effective content-security solution for HD in hotels. We have already committed on supporting & implementing this solution as soon as available”

Alistair ForbesCEOAcentic


Embraced by head end providers…

– "VideoPropulsion is proud to be a launch and development partner in the Philips VSecure System. We strongly believe that adding Philips VSecure digital content protection technology to our products will help expand the market for High Definition Linear and VOD services in hotels around the world. VSecure's combination of Open Standards, Advanced Technology and High Security make it a great choice for Hoteliers and service operators."

Don WoelzVice President MarketingVideoPropulsion Interactive Television


…and built-in…In new Philips hospitality range

Philips Ultimate HDWith VSecure & VTrack

Coming next year...

CONFIDENTIAL Professional and Business Solutions, June, 2008

[email protected]

PPT

Documents

open standardfor

hd prepared

offering hd

professional

hd content

mpeg4 selected

content providers

hospitality