Datacasting &Interactive TV

Planning for new servicesin light of world trends

• Business ‘re-alignment’ in the world’s leading DTV marketOpen… SkyActiveOnDigital ITV digitalntl/telewest - combined marketing; single ad agency

• Growing uptake & awareness of interactive televisionntl - 56% use interactive on a weekly basis for 1 hour or more

27% use interactive services on any given day

Interactive shopping: early days, but growing

• Development of the interactive advertising sectorThe promise - direct response & direct measurementDemand is presentProduction costs are still high

Environment

• ‘Back to the future’ …??Entertainment remains a key element of success

Enhancing the TV relationship, rather than changing it’s purpose -

The Big Brother phenomenon; BBC Wimbledon

• Re-focusing t-commerceTime/price sensitive items; low involvement

• Bundling - a single brand relationship with the customerTV, PPV, Internet, email, messaging service, iTV, telephony

• Diminishing subsidy on receiverseg: Sky+ PVR Set Top Box

Trends

Issues

• Numerous digital platforms cannot compete and survive

UK - 3 platforms fighting it out; none in the black

Australia - Terrestrial is dominant, but how to maintain that lead?

• Technical standardsReceiver standards; we are too small to matter on a global scale!

A single interactive publishing standard on a single platform saves $$$, & is essential for success

• Legislation

Australia’s legislation has delayed development of new services

The line between program and advertisement is blurring

Issues

• Receiver penetration - terrestrialNo compelling reason to buy without new services

New services are inhibited by current legislation

Low value, confusing offering to the consumer

National network deployment - some essential elements

• Technology managementReceiver hardware / software compliance

Interactive content conformance

Management of Conditional Access systems

Return path network

• Project managementSpecific knowledge of broadcast and return path networks & issues

Integration of disparate technologies, hardware systems & vendors

20-20 hindsight

National network deployment - some essential elements

• Operations managementDeployment of new applications / services

Real-time service monitoring and management

Service provisioning for new subscriber accounts

Subscriber service entitlements

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• Environment

• Trends

• Issues

• Deployment

Summary

We are still in the early stages of Digital TV…