IPTV – Top Half of the First Inning

Kevin Wirick

Motorola Connected Home Solutions

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Top Half of the First Inning

Hitting

Pitching

Fielding

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Top Half of the First Inning

Hitting -IPTV for Traditional Broadcast Services

Pitching -Over the Top Delivery

Fielding -Seamless Mobility with Multi-Screens

Pitching

Fielding

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

DSLAM

Hitting –IPTV for Traditional Broadcast

Central Office

Edge RouterIP Backbone

DRM Encryption

Video Acquisition System & Encoders

Super Headend

VOD Asset Management

Compression

Content

IP DSL Access Network

Home

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

DSL Video Network Traffic

Network capacity for 10,000 residential customers:

64 Kbps, 100% penetration, 2% simultaneous

Voice

2 Mbps, 50% penetration, 50% simultaneous, 2% duty factor

Video

4 Mbps, 50% penetration50% simultaneous,

~10 Mbps ~10,000 Mbps

100X

High Speed Internet

~100 Mbps

10X

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

IPTV DSL Video Challenge

Mux Video

MuxData

Video at Constant Bit Rates

Data Services

• Voice, Video, Data transported on one bandwidth limited connection

VoIP Services

Bandwidth Constrained DSL Connection

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

MPEG4 Compression Efficiency

• MPEG4 delivering 50% bit rate improvement over MPEG2 now• SD: 0.7 – 2 Mbps

• HD: 6 -- 9 Mbps

• Enables two simultaneous High Definition videos plus data over DSL2007 2008 2009 20102005 2006

MPEG 2 Encoder Performance1.0

0.5

Da

ta R

ate

fo

r C

om

pa

rab

le Q

ua

lity

MPEG 4 AVC

Encoders

0.25

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

VDSL2 Reach Enables Video

0

5

10

15

20

25

30

35

40

45

50

0 2000 4000 6000 8000 10000

Reach (feet)

Rat

e (M

bps)

Data

HD PVR

HD

SDSD

VDSL2

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Telco IPTV Subscriber Forecast

0

10

20

30

40

50

Million IPTV Subscribers

2006 2007 2008 2009 2010

North America

Europe

Asia

MRG 10/06

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

IPTV Deployment Progress

• IPTV network deployments gaining momentum• Forecast 50M IPTV subscribers in 2010• $13B in service provider revenue in 2010• $4.5B in annual Telco IPTV Capex

Service Provider Country Subscribers

Free France 2,200,000

France Telecom France 1,000,000

PCCW Hong Kong 800,000

Telefonica Spain 700,000

Softbank Yahoo Japan 700,000MRG 10/06

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Traditional Broadcast Value Chain

Studios & Live Event Producers

Equipment Providers

Content Creators Consumers

TV Watching

Consumer Electronics

Manufacturers

Service

Network Operators

Advertisers

Cable, Satellite, and Telcos

Equipment Providers

Programming

Advertisers

Broadcast & Cable Programmers

Networks

Equipment Providers

Content

$

$$$$

$

$$$

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Baseball Skills

Hitting -Traditional PayTV Services

Pitching -Over the Top Delivery

Fielding -Seamless Mobility with Multi-Screen

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Subscription Video over the Internet GrowthAnnual Fee-based Downloads:

Music and Video Content(Millions of Downloads, U.S. Households)

0

1,000

2,000

3,000

4,000

5,000

Mil

lio

ns

of

Fee

-bas

ed D

ow

nlo

ads

(#M

)

Video (#M)

Music (#M)

Video (#M) 36 111 299 587 988 1,607

Music (#M) 370 780 1,100 1,395 1,685 2,035

2005 2006 2007 2008 2009 2010

Source : Parks Associates' research© 2006 Parks Associates

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Traditional Broadcast Value Chain

Studios & Live Event Producers

Equipment Providers

Content Creators Consumers

TV Watching

Consumer Electronics

Manufacturers

Service

Network Operators

Advertisers

Cable, Satellite, and Telcos

Equipment Providers

Programming

Advertisers

Broadcast & Cable Programmers

Networks

Equipment Providers

Content

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Over the Top Value Chain

Studios & Live Event Producers

Equipment Providers

Content Creators Consumers

TV Watching

Consumer Electronics

Manufacturers

Service

Network Operators

Advertisers

Cable, Satellite, and Telcos

Equipment Providers

Programming

Advertisers

Broadcast & Cable Programmers

Networks

Equipment Providers

Content

Internet

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Internet Speeds

PC Pitstop Market Trends

Greater than 1.5

Mbps

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Disk Storage

95

24

MP

EG

2 S

D

160 GB Drive

340

1500

MP

EG

4 S

D

MPEG4High Def

1000 GB Drive

Ho

urs

Of

Vid

eo

Sto

rag

e

240

55

MP

EG

4 S

D

MPEG4High Def

MPEG2High Def

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Keys for Over the Top Business

• Controlled Content Distribution

• Content Packaging & Marketing

• Advertising

• Billing and Customer Care

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Baseball Skills

Hitting -Traditional PayTV Services

Pitching -Over the Top Delivery

Fielding -Seamless Mobility with Multi-Screen

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

IPTV as Mobile TV

• Mobile broadcast TV forecast 10% of mobile subscribers in 5 Years

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Explosion of Hyper-Mobility Applications

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Service Evolution

BroadcastBroadcast +

VODBroadcast + VOD+DVR

Video services

High Speed Data

Internet services

Digital Cellular

Set top

PC / WiFi

Mobile

Voice services

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Digital Cellular

Service Evolution

BroadcastBroadcast +

VODBroadcast + VOD+DVR

Video services

High Speed Data

Set top

PC / WiFi

Mobile

Internet Video

Internet services

Voice services

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Digital Cellular

Future IPTV Vision

BroadcastBroadcast +

VODBroadcast + VOD+DVR

Video services

High Speed Data

Internet services

Set top

PC / WiFi

Mobile

Voice services

Internet Video

Blended service

Multiple sources to multiple devices

Consistent experience and extensive personalization

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Rich User Experience

Live video

Contextual information enhancing the live event

Interaction zone to exchange messages with friends

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

wireless synch to digital TV

synch to home info appliances

MOBILE HOME CAR

orchestration of distributed contentmultiple access

points and distributed devices

multiple environments and use cases

smart & adaptable devices

wireless media streaming

Your videos while you travel… …extend the experience in the home… …switch to audio in the car

handoff to car entertainment

Seamless Mobility Experience

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Baseball and IPTV

Hitting -IPTV for Traditional Broadcast Services

Pitching -Over the Top Delivery

Fielding -Seamless Mobility with Multi-Screen