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7/23/2019 TV OTT Technology Briefing http://slidepdf.com/reader/full/tv-ott-technology-briefing 1/20 Pace plc Technology Briefing OTT : Over-the-top Dr. Paul Entwistle – Head of Investor Relations & Chief Technologist Wednesday, 9 th June 2010
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TV OTT Technology Briefing

Feb 18, 2018

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    Pace plc Technology Briefing

    OTT : Over-the-top

    Dr. Paul Entwistle Head of Investor Relations & Chief TechnologistWednesday, 9th June 2010

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    Over-the-TopAgenda

    I will explain :

    What OTT is

    That TV is part of a spectrum of video content services : OnDemand, DVD, Cinema,Subscription, Free...

    Emphasize that our customers offer Subscription TV and that it is a managed service

    That Subscription TV has a strong business underpinning it

    That the consumer benefits from the robust, easy to use and upgradeable managed services

    And conclude :

    That far from a being a threat OTT allows our customers (the Subscription TV providers) tooffer even more services such as Video-on-Demand, Catch-up TV, Interactive applications...

    That the continuous (relentless) evolution of these services drives demand for ever morecapable STBs

    And that the STB remains the efficient, dedicated, managed device to ensure the delivery ofthose services !

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    BasicsWhat is a Set-top-box?

    STB: Technically standardised, commoditized, retailed

    STB: Service provider managed, bespoke, edge of proprietary network

    98%*

    * 98% of Paces 2009 revenue was for service provider managed STBs

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    DefinitionsWhat is OTT?

    OTT (Over-the-top) (syn. Internet TV)

    The delivery of a service often video using the open internet

    It can be delivered straight from the provider who could be the creator to the viewer

    Without the need for intervening carriage negotiations, or infrastructure investments

    (It is independent of the viewers internet service provider)

    However, it is unmanaged and quality of delivery can not be guaranteed

    IS NOT THE SAME AS

    IPTV (Internet Protocol TV)

    A managed TV service delivered using internet protocols*

    Closed, proprietary network, accessed via a specific internet service provider Services are optimised and customised to suit the network and end-device capability

    Providing control over quality of delivery and end device serviceability

    * internet protocols a basic suite of standardised techniques for moving data packets across a network; used on and off the internet

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    Over-the-TopLandscape...

    User Generated Content

    Internet broadcasters

    Content retailers (rent / sell)

    Distributing content owner

    Traditional broadcasters

    Multichannel Subscription TV

    Broad range of content (inc. premium) (Movies, TV shows, Education ...)

    High Quality Material HD, 3D, Surround Sound

    Robust high quality deliveryManaged ServiceState-of-the-art Device

    PVR, HD, Hybrid, VoD, WholeHome

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    Subscription TVPaying for Content

    Theatrical

    DVD Sale (Full price, discounted price)

    Pay Movie Channels(inc. subscription bundles)

    Free TV

    (Advertising funded)

    Library

    On-Demand

    DVD Rental (Launch price, library price)

    Pay.Per.View

    On-Demand

    < 3 months 6 12 months 12 15 months 2 3 years

    Source: 4 BBC Trust : Report on the Impact of Canvas on Pay-VoD Services

    This [Canvas] is likely to shift value from the DVD Rental market to the PPV / VoD market4

    Pacescustomers

    Subscription TV, Video Rental and PurchaseAre different products with different consumer behaviours

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    Subscription TVPaying for Content

    Source: 5 Entertainment Merchants Association,

    Investing in sport :

    DirecTV $4B NFL Sunday ticketBSkyB 1B Premier league

    Multichannel

    Subscription TV

    US Video Revenues (2008)Total 42B USD

    Opportunity for traditional TVdistributors to offer On-Demand

    Traditional TV distributors havevery strong consumer brand

    Consumers get easy to use,seamless, integrated managed

    service

    On their TV, via an STB

    Available on todays Hybrid STBs: DirecTV, Canal+, Viasat...

    DTO

    8.2

    14.5

    9.8

    2.1

    3

    2.8

    DVD Rental migration to Download-to-rent [DTR] (eg. Netflix, Seesaw) DVD Sales migration to Download-to-own [DTO] (eg. Amazon, Apple)

    DTR

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    Subscription TVHow Big is the PayTV Industry?

    Global PayTV subscription revenue (2009) : ~180 B (USD)2

    Global PayTV STB shipments (2009) : +120 M2

    Global PayTV TV households (2009) : 57%3

    US PayTV households (2009) : 94% (108 M)

    US top 10 TV distributors subscribers (2009) : 89.3 M1

    US top 10* TV distributors aggregate market cap. : 351 B (USD)

    US Cables revenue from residential video (2009) : 53 B (USD)1

    * Based on 8 of the top 10 (excludes Cox Communications & Bright House Networks)

    Source: 1 NCTA, 2 ScreenDigest, 3 IMS research

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    Subscription TVPaying for Content (example US : 2008)

    Source: 6 Bill Gurley, abovethecrowd.com, 7 DirecTV & Dish SEC filings

    CREATORS

    AGGREGATORS

    TV DISTRIBUTORS

    MSO DBSTELCO BCST

    Cable Networks Broadcast Networks

    DirecTV Dish

    Comcast TWC

    Verizon AT&T

    AffiliatedStations

    Discovery ESPN TNT

    ABC CBS FOX

    42B USDADVERTISERS 32B USD6

    Affiliate fees

    21B USD1

    VIEWERS

    51B USD1

    US Video (2008)

    Reve nue (42B USD)5

    14.5

    8.2

    9.8

    3

    2.82.1

    home video - bought

    home video - rental

    Theatrical

    Premium cable

    Basic Cable & Broadcast

    On Demand

    29B USD7

    Pace0.67B USD(US only 2009)

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    Subscription TVPutting OTT into perspective

    Source: 8 DirecTV SEC filing

    Satellite broadcaster - No IP infrastructure Uses OTT to complement and enhance broadcast offering Delivered to the TV via the STB

    DirecTV8 : ~6000 titles

    Primarily impacts the 22.7 B USD DVD rental and sales market Wallmart acquires VUDU (STB and OTT delivery platform)Netflix : 17000 titles

    Apple : 200 TV shows, 400 movies

    On-demand content:

    The television industry fundamentally has a subsidized business model that gives everyone a set-top box, and that pretty much undermines

    innovation in the sector.Ask TiVo, ask Roku, ask Google in a few months. The only way this is going to change is if you start from scratch, tear up the

    box, redesign and get it to the consumer in a way that they want to buy it. But righ t now, theres no way to do that. The TV is going to lose until theres a

    viable go-to-market strategy. Thats the fundamental problem with the industry. Its not a problem with the technology, its a problem with the go-to-market

    strategy. Im sure smarter people than us will figure this out, but thats why we say Apple TV is a hobby.

    Steve Jobs

    Remember 32 B USD of Affiliate fees at stake !! 9.95 USD pcm to be introduced on some content Owners: News Corp/Fox, Disney/ABC, NBC (Comcast tbc)

    Hulu : 190 Content Providers

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    Any time, place, ... deviceGiving viewers what they want (as long as they subscribe)

    TV Everywhere

    TWC & Comcast initiative to allow their subscribers to access content on-line

    Free access to subscribers

    Giving subscribers greater choice of device (and therefore time and place)

    Federated approach allows Content Owner portals

    No single gatekeeper

    Supports important brand identity of creators / aggregators

    BSkyB Sky Player

    For subscribers:

    Access live streaming and On-demand

    Through XBox360 and PC

    IP is the common communication language of Connected Deviceswhether Games Console, Phone, PC or STB...

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    Over-the-TopSummary so far

    Successfully being used by Subscription PayTV to complement and enhance

    their broadcast offerings with on-demand

    Free OTT TV is highly unlikely to replace subscription PayTV (businessmodel dependence on distribution fees)

    Most likely to impact traditional video rental

    Initiatives to meet consumers multi-device demands are underway (any time,

    any place)

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    TechnologyTechnology

    Technology

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    InteractivityOTT is an interactive app.

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    Connected TVStandards & Specifications

    (Software) components of an OTT enabled device:

    IP delivery :

    Signalling and broadcast service integration :

    Presentation and navigation : Security / DRM :

    Metadata :

    Audience measurement :

    Application run-time and management :

    Many pieces no common solution

    Technical StandardsDVB, ETSI, IEC, IETF

    Solutions for specific technicaltasks

    Platform SpecificationsDTG

    Profile and selection of TSs for aspecific service

    Device & Platform SpecificationsCanvas, Bespoke

    Further includes detailedspecification of user experience

    (interaction, presentation, quality)

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    Connected TVTechnology : choices, choices

    HbbTV Hybrid Broadcast Broadband TV European broadcaster supported initiative

    Blended not alternate experience TV optimized browser (HTML / JS / remote control) Minimal specification to ease implementation Middleware and device friendly Completed Nov2009 sent to ETSI for Standardisation

    DTG DBook 6.2 Connected TV feature : MHEG xPlayer

    Published Mar2010DTG DBook 7 Working with Canvas and other stakeholders

    BBC + Arquiva, BT, C4, Five, ITV, TalkTalk Detailed and open specification of an internet TV device & platform Technical details currently confidential / and not yet all available

    A solution available without [a content] subscription

    (that also allows a pay/subscription business model) Keeps control over user-interface / navigation and presentation Seeks to avoid a defacto proprietary solution emerging

    Started Dec 2008 products due Spring 2011

    Technical homogenisation can not provide the Subscription TV industry with competitive differentiation

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    Connected TVTVs with web

    CE Industry(Walled garden aggregations) Sony Bravia Internet Video Panasonic Viera Cast

    Samsung Internet@TV Philips NetTV

    Custom integrations

    Is there a long-term commitment to maintaining portfolio of content / device software?

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    Connected TVThrough a Managed Service Platform

    Pace - Innovation Partner

    Remember STB is a bespoke managed service platform software updates...

    Pace is currently demonstrating Flash Lite apps running on our US HD Cable STBs

    ...

    Internet applications : Social networking Video streaming Information

    FlashLite

    Paces EnginewareTM

    Network Services:

    In-band Docsis OTT

    Subscription TV managed STBs offering video rich, OTT applications

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    Over-the-TopSummary

    Paces customers (Subscription TV Providers)

    OTT expands their service offerings

    Being used today : DirecTV, Viasat, Canal+, ...

    Robust, secure, upgradeable Managed service

    Pace : Trusted Partner, Innovator and Leader

    Delivering : Hybrid (OTT), Whole-Home, ...

    Demonstrating : Advanced interactivity (OTT)

    Increasing need for higher performance and connected STBs

    Convergence : expanding Subscription TV with Over-the-Top

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    Great products to ourcustomers every time.