ITU-T
International Telecommunication Union
International Multimedia Telecommunications Consortium
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006

TV over last 10 years
ITU-T o o o
Increase in digital TV platforms
• 1995 = 5
• 2000 = 100
• 2005 = 230
160
140
120
100
STB prices decreased
• 1995 = $300+
• 2005 = $50-
Worldwide adoption of digital standards
• DVB and ATSC
80
60
40
20
0
1995 2004
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
Subs
2

ITU-T
Continuous changes
Consumed
ƒ Digital TV growing and replacing analog
ƒ Time shifted viewing goes mainstream
(VOD & PVR)
ƒ Interactivity spreading based on a proven business model
Acquired and delivered
ƒ Produce once, deliver many
ƒ IP everywhere!
ƒ Driving new delivery models for contribution and DTH delivery
ƒ HDTV spreading worldwide
Monetized
ƒ New revenue models exploit new technology & changing viewer habits
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
3

High Definition TV
ITU-T o HD is already a mass market in the USA
• 15M HDTV Broadcast Viewers by the end of 2005 – MPEG2
• HD cable boxes up 170% in 2005
• Direct TV = 1,650 channels by
2007 – H.264
o APAC is already there
• Australia and Japan
• PCCW launching HD over DSL
60
50
40
Millions
Viewers
30
20
10
0 o
Global HDTV Viewers
2005 2006 2007 2008 2009
H.264 HD services happening in
Europe
• 14m HD homes receiving HDTV by 2009
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
Source: In-Stat Mar 05
4

On demand content
ITU-T o o
Digital VoD Growth
10% of today’s television is time shifted
• 2010 – 50% of television will be viewed on the PVR
80
70
60
50
40
30
20
47
43
7
39
4
36
4
33
3
30
2
35
27
3
38
24
2
42
21
2
45
20
0
49
-
17
52
12 27
31
10
23
17
7
-
Video on demand will drive cable and IPTV growth
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
• Comcast on
Demand:
— 2003: 1,400 titles with
21M views/month
— 2005: 3,400 titles with
107M views/month
— 2007: 50,000+ titles!
San Diego, 9-11 May 2006
Digital: VoD Digital: non-VoD Non-digital
5

Interactive Television o o
Service providers need to differentiate
US Operator Revenues from Interactive Services
Interactive allows delivery of specific content FOR the consumer
• No longer just the push model of broadcast TV
• Logical extension of on demand content
Interactive is the future of
Television
• Red button applications in
UK
• Over 20,000 hours of iTV in
USA last year
$m
$1,000m
$800m
$600m
$400m
$200m
$0m
Year
2005
$34m
2006
$102m
2007
$233m
2008
$452m
2009
$780m
Source : Kagan 2005
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
6

Broadband TV
ITU-T o o
Broadband networks allow delivery of TV directly to the home
• Direct connection between the content owner and the consumer
• No platform operator!
• Forrester estimating 2006 broadband TV advertising revenues of $200 M o Already there
• SKY movies
• MTV Overdrive
• VH1 VSpot,
• Nickelodeon,
• CNN Pipeline
• Comedy Central,
• Country Music
Television),
• ESPN,
MTV Overdrive broadband site delivered 13 million video streams from the Video Music
Awards, during or after the show ran on cable networks.
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
7

Mobile video
ITU-T o o o o
Mobile will have a significant impact on the TV industry
• For both the creation and delivery of content
2005 market for mobile content was £600m
By 2008 there will be 10.8 million mobile video users
• 2004 revenue $29M
• 2008 revenue $1.4B
O2 UK trial
• 3 hours per week average and 23 minutes per viewing session
• 36% used it at home!
Mobile Video Users
12000
10000
8000
6000
4000
2000
0
2004 2006 2008
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
8

IPTV
ITU-T o o
Telcos, ISPs and utility companies are engaging in IPTV
• Defensive strategies
2005 - Real success stories
• Imaginio (Telefonica Spain)
• Jazztelia TV (Jazztel)
• Belgacom (Belgacom)
• Fastweb TV (Fastweb)
• MaLigneTV (France Telecom)
• Lyse Bredbånd TV (Lyse)
• NOW Broadband TV (PCCW)
• Dubai Internet City (Dubai)
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
9

European IPTV market
ITU-T o o
700k subscribers by end of 2005
• France = 281,000
(Free + Maligne)
• Italy = 190,000
(Fastweb)
• Spain = 58,000
IPTV penetration
• Norway = 1.5%
• France = 1.1%
• Italy = 0.86% o Forecast = 9m by end of 2009
• France = 2.4m
• Italy = 1.5m
• UK = 1m
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
10

ITU-T
European IPTV launches
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
11

European IPTV Subscriber Growth
ITU-T
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: External research Nov’05
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
12

Market Trends by Region
ITU-T
Total IPTV Households
18
16
14
12
10
8
6
4
2
0
2004 2005 2006 2007 2008 2009
Europe
US
Asia
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
13

ITU-T
IPTV reality - 2005
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
14

IPTV market offerings
ITU-T o o o o
H.264 is the key enabling technology for DSL
• SD = 1.5 Mbit/s
• HD = 6 – 8 Mbit/s
• Hybrid TV services
But “me2TV” is not enough
• Very competitive market
• Telcos need to capitalise on inherent 2-way
IP network
Content on demand – including video
• Everything is an asset
• On demand and push models
Enhanced TV experience
San Diego, 9-11 May 2006
15

ITU-T
IPTV service offering
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
16

Challenges for IPTV
ITU-T o Network
• Improved access technologies for higher rate
DSL
• True end to end QoS – in to the home network
• Intelligent network resource allocation
(BRAS) o IPTV Service provision
• Picture quality on DSL (Advanced video coding)
• Advanced “Content on demand” services
San Diego, 9-11 May 2006
(Network PVR) 17

AVC – bit rates for HD and SD
ITU-T
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
0.0
SD
HD for Europe?
720p50
High end HD broadcast
1080i30 (1920 pixels)
8.0
2,000+ channels
AVC delivered!
2.0
4.0
Resolution
6.0
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
MPEG-2
Media™ 9
18

Challenges - VoD and advertising
ITU-T o o o o o
IPTV operators must run Ondemand services
On demand changes the revenue model
• Linear advertising no longer works
Dynamic on demand ad insertion enables revenue generation
• For free and premium content.
As VoD volumes build so does the attractiveness to the advertising world
Targeting on demographic/geographic basis now possible
• Particularly in an IP network
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
19

Intelligent Ad Placement Decisions
ITU-T
Media Types
• iTV
• DVR
• RFI
Tech
Info
Long Form Ads
Neighborhood
Tagging
Targeting Engines
• Geographic
• Demographic
• Psychographic
Tag Information
• Local Dealers
• Proximity Mapping
Site
Info Placement
Decisions
Dynamic
Streams
Placement Rules
• Genre/Type
• Avail Rules
• Brand Associations
Title
Info
DVR Ad placement
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006 iTV
20

ITU-T
VOD/DVR Ad Placement architecture
Program
Asset
Delivery
Avail-Enabled
Program
Assets
Internet Push
Delivery
Satellite
Push
Delivery
Ad Assets
Avail-Enabled
Program
Assets
Inventory
& Delivery
Schedule
Internet
Pull
Ad Assets
Ad
Assets
Campaign Delivery
Asset Avail
List
Placement
Rules
Reporting
As Run Log
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
Real-Time
Placement
Messages
21

ITU-T
On demand content in the network o o o o o o
Open architecture for greater flexibility
Distributed architecture across the network
Content encrypted throughout the entire network
Content ingest process must be streamlined
Produce once, know where it is and deliver many time!
Timeshift TV brings technical and legal challenges!
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
22

Multi platform delivery
ITU-T o o o o o o
Consumers will expect content delivery to a range of devices
Platform operators want common infrastructure
Many challenges
Technical:
• Format for many devices
• Content work flow and storage for multiple formats
Production:
• Content does not look the same on different devices
• Wide screen shots
• Contrast ratios
Role of standards?
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
23

Open standards
ITU-T o Digital TV’s success is directly related to open standards o Core to the success of IPTV is non-proprietary, standard based delivery architecture
• Published, open APIs
• no vendor lock-in o In particular:
• Open interfaces/API for content management
• International Metadata standards for IPTV and cable
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“
San Diego, 9-11 May 2006
24

ITU-T
Summary o The future is not just delivery of content to the viewer but for the consumer
• When, what and where the consumer wants it o Revenue models will change
• VoD vs linear
• There will be winners and losers o IPTV is happening and will become an important player in the content delivery market
• But not just “me2tv”
• Build flexible networks and
Joint ITU-T Workshop and IMTC Forum 2006 “H.323, SIP: is H.325 next?“ play to their strengths
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