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Is IPTV Ready ?


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Is IPTV Ready ?

  1. 1. Is IPTV Ready ? Rudy Roth Consumer Electronics – Home Networks March 27, 2007
  2. 2. Forward Looking Statements Forward Looking Statements This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items (including, but not limited to, cost savings) in particular the outlook paragraph in this report. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, levels of consumer and business spending in major economies, changes in consumer tastes and preferences, changes in law, the performance of the financial markets, pension costs, the levels of marketing and promotional expenditures by Philips and its competitors, raw materials and employee costs, changes in exchange and interest rates (in particular, changes in the euro and the US dollar can materially affect results), changes in tax rates and future business combinations, acquisitions or dispositions and the rate of technological changes. Statements regarding market share, including as to Philips’ competitive position, contained in this document are based on outside sources such as specialized research institutes, industry and dealer panels in combination with management estimates. Where information is not yet available to Philips, those statements may also be based on estimates and projections prepared by outside sources or management. Rankings are based on sales unless otherwise stated. Use of non-GAAP Information In presenting and discussing the Philips Group’s financial position, operating results and cash flows, management uses certain non-GAAP financial measures. These non-GAAP financial measures should not be viewed in isolation as alternatives to the equivalent GAAP measure and should be used in conjunction with the most directly comparable US GAAP measure(s). A discussion of the non-GAAP measures included in this document and a reconciliation of such measures to the most directly comparable US GAAP measure(s) are contained in this document. CE-HN, R.Roth, 03272006, GS-IPTV 2
  3. 3. Philips CE – Home Networks CPE products for operators Home Communication Set-Top Boxes Connectivity Top 3 player Eur. market Top 3 player WW market (addressable market) Retail B2B B2B B2B Retail Europe Retail Products : Products : Products : • Range of DECT –phones • Digital TV • Wireless Gateways • VoIP –phones • Satellite • Media adaptors • MSN • Cable • Digital Links • Skype • Terrestrial • KPN video phone • IP • WiFi Videophone HQ: Paris – France Facilities: NL, USA, India, China Brazil CE-HN, R.Roth, 03272006, GS-IPTV 3
  4. 4. Is IPTV Ready ? 1 • Improves Quality of Life Consumer • Improves Quality of Life • •Awareness of Services Awareness of Services • •Basic Understanding New Technology Basic Understanding New Technology • Ease of Installation 2 Service • Ease of Installation Better TV Better TV • • Attractive Content Attractive Content • • More Choice More Choice • • Better Quality Better Quality • • What I I want, when I want What want, when I want CPE Product 3 4 Network Technology -axis • •Bandwidth efficient Codecs Bandwidth efficient Codecs 5 Business-model • •Content Aggregation Content Aggregation • •Firmware: EtE System software • •Subscription models • •Quality of Services Firmware: EtE System software Subscription models Quality of Services • •Content-security • •Bundled services • •Integrated CMS Content-security Bundled services Integrated CMS • •Product-cost • •Churn reduction • •Customer Support Product-cost Churn reduction Customer Support • •Make Money ?? Make Money For IPTV to be successful all 5 aspects must be ready CE-HN, R.Roth, 03272006, GS-IPTV 4
  5. 5. Philips contribution 2 Hardware Platforms for IPTV supporting multiple Middleware's for launch in 2006 with committed customers 7100 / 7109 8634 WinCE Custom Middleware Telco X May 2006 August 2006 CE-HN, R.Roth, 03272006, GS-IPTV 5
  6. 6. Evolution MPEG 2 Set-Top Boxes Mb/s MPEG-2 MHZ 6 300 5 uProcessor STB 4 200 performance 3 Bandwidth 2 100 Efficiency AVC 1 50 1995 2000 2005 1995 2000 2005 10 years Many discrete Several Single chip SCART STB components components System-On-Chip CE-HN, R.Roth, 03272006, GS-IPTV 6
  7. 7. IPTV starts based on System-On- Chip Powerful Decoders: • Multi-channel MPEG 2 • H.264 / VC 1 • Standard Definition 1.5 Mb/sec • High Definition 4-6 Mb/sec Products based on Single Chip Technology Powerful Microcontroller: • 300 MHz, 350 MIPS Technology fits with • Linux , WinCE ADSL network capabilities • Comparable to Pentium III High Def. TV capable Embedded Secure processor for DRM 3D Graphics Interactive Applications June 2006 I/O- support Securing Content • Hard Disk Drive • USB Right Cost Price Level • Ethernet CE-HN, R.Roth, 03272006, GS-IPTV 7
  8. 8. High Definition Picture Resolution x2 x5 410 000 pixels 920 000 pixels 2 000 000 pixels 720x576 1280x720 1920x1080 • HD Content availability • Strong growth of HD-capable Flat display’s • Consumers’ demand for improved picture quality CE-HN, R.Roth, 03272006, GS-IPTV 8
  9. 9. Partners Philips has established Key-Partner relations Strategic Relations with Telco Or ISP System Application Integrator STB Operator Specific Content Firmware Protection OS Silicon CE-HN, R.Roth, 03272006, GS-IPTV 9
  10. 10. Worldwide IPTV Subscriber Market Forecast Mio Subs Mio Subs 350 50 300 Residential Broadband 40 250 aggressive 200 30 150 20 conservative 100 WW IPTV Subs Philips 10 50 ABI 0 IMS 0 ‘97 ‘99 ‘01 ‘03 ‘05 ‘07 ‘09 2004 2005 2006 2007 2008 2009 2010 Source : ABI Forecast are mainly for Telco TV Forecast are mainly for Telco TV All wired networks will converge to IP All wired networks will converge to IP MPEG 2 only Special brands In next 5 years large % of In next 5 years large % of Residential Broadband Residential Broadband will be IPTV enabled will be IPTV enabled H.264 Established brands CE-HN, R.Roth, 03272006, GS-IPTV 10
  11. 11. Is IPTV Ready ? Remaining challenges 1 Awareness Awareness Consumer Portability of Content Portability of Content 2 Service Attractive Content Attractive Content CPE Product 3 4 Network Technology -axis 5 Business-model Scaling of Performance Scaling of Performance IPTV Technology is ready Home Network Home Network IPTV Technology is ready Self-Installation Self-Installation CE-HN, R.Roth, 03272006, GS-IPTV 11
  12. 12. Philips vision A world where consumers can connect and access entertainment, information and services, independent of time and location CE-HN, R.Roth, 03272006, GS-IPTV 12