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Overcoming IPTV Challenges

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Overcoming IPTV Challenges

  1. 2. Overcoming IPTV Challenges Opportunities and Advantages Create Momentum To Overcome Adversity Ken Lowe VP Strategic Marketing Sigma Designs, Inc.
  2. 3. US Video Market Potential <ul><li>US Households & Subscribers </li></ul><ul><ul><li>US Households: 116M </li></ul></ul><ul><ul><li>TV Households: 112M </li></ul></ul><ul><ul><li>PayTV Subscribers: 97M </li></ul></ul>* Data based on 2006/2007 census and estimates <ul><li>Income & Expenditures </li></ul><ul><ul><li>Median HH Income: $ 48.2K </li></ul></ul><ul><ul><li>H/H Income >$100K: 19.2% </li></ul></ul><ul><ul><li>Avg PayTV Cost: $60/mo </li></ul></ul>
  3. 4. TV Service Operator Mix <ul><li>Key Trends </li></ul><ul><li>Emergence/growth of telco (IPTV) services </li></ul><ul><li>Emergence/growth of triple-play services </li></ul>
  4. 5. Service Crossovers
  5. 6. Major Feature Trends <ul><li>Trends Portend a Paradigm Shift </li></ul>High Definition Whole Home DVR Wider Media Choices
  6. 7. High Definition <ul><li>Enables expanded quality and capability </li></ul><ul><ul><li>Large screens with life-like image quality </li></ul></ul><ul><ul><li>Multi-channel viewing, mosaic browsing, web portals </li></ul></ul><ul><li>Requires 5X more bandwidth per channel </li></ul>Broadcast Forces a tradeoff of HD or quality against the number of channels IPTV Enables an unlimited number of channels for the bandwidth of one.
  7. 8. Whole Home DVR <ul><li>Matches program choices to viewer time windows </li></ul><ul><li>Currently a US market phenomenon </li></ul><ul><li>Requires multiple simultaneous channels </li></ul>Broadcast Requires one tuner per simultaneous channel recorded (or viewed). IPTV Can record as many channels as bandwidth allows.
  8. 9. Wider Media Choices <ul><li>Video-On-Demand (VOD) – expanding home theatre concept with premium content. </li></ul><ul><li>Over-the-top-Internet (ala YouTube) – expanding the Internet TV concept. </li></ul><ul><li>Home Media Center (photos, music, video) – expanding TV as an access portal concept. </li></ul>Broadcast Requires second mechanism with IP like capabilities. IPTV Unifies access and display of all media types.
  9. 10. CPE Evolution Media Processor SoC Modems & Tuners High Definition Television Client Software Hard Disk Memory Video Decoding (H.264, VC-1, MPEG) Graphics Acceleration Audio Decoding Input & Security Control Host CPU Display Output Control IO Ports
  10. 11. Network Evolution Telco <ul><li>Voice Delivery </li></ul><ul><li>Low Speed </li></ul><ul><li>2-way </li></ul>Phone Network <ul><li>Data/Packet Delivery </li></ul><ul><li>High Speed </li></ul><ul><li>2-way </li></ul>IP Network <ul><li>Video Delivery </li></ul><ul><li>High Speed </li></ul><ul><li>1-way </li></ul>Broadcast System Cable Satellite Terrestrial
  11. 12. Broadcast Advantages/Issues <ul><li>Bandwidth: currently sufficient for well over 100 channels with some SD and HD mix </li></ul><ul><li>Infrastructure: currently passes > 100M homes </li></ul><ul><li>Incumbancy: widespread usage & comfort </li></ul><ul><li>Cable Issues: </li></ul><ul><ul><li>Gracefully addressing trends (HD, DVR, Media Types) </li></ul></ul><ul><ul><li>Movement to DOCSIS 3.0 and Tru2way – new infrastructure </li></ul></ul><ul><li>Satellite Issues: </li></ul><ul><ul><li>One-way medium … uncertain solutions for new media types and no opportunity for triple play offerings. </li></ul></ul>
  12. 13. IPTV Advantages <ul><li>Channel Selection: </li></ul><ul><ul><li>Enables unlimited number of channels </li></ul></ul><ul><ul><li>No trade-off with HD or QoS </li></ul></ul><ul><li>IP Protocol Advantages: </li></ul><ul><ul><li>Instantaneous channel changing (tiered servers) </li></ul></ul><ul><ul><li>Enables all-IP services integration </li></ul></ul><ul><li>Simultaneous Channel Access w/o Cost: </li></ul><ul><ul><li>Enables multiple channel viewing </li></ul></ul><ul><ul><li>Enables near limitless DVR recording </li></ul></ul>
  13. 14. IPTV Challenges <ul><li>Consumer education and demand development </li></ul><ul><li>Innovative service offerings – multiview, etc. </li></ul><ul><li>Cable adoption … broadcast to IP transition </li></ul><ul><ul><li>Movement to DOCSIS 3.0 enables/accelerates IPTV </li></ul></ul><ul><ul><li>Increased investment (>$13B/yr currently) </li></ul></ul><ul><li>Telco coverage … more homes passed </li></ul><ul><ul><li>AT&T now … Verizon poised …others needed </li></ul></ul><ul><ul><li>Large continuing infrastructure investments </li></ul></ul><ul><li>Telco bandwidth expansion </li></ul><ul><ul><li>Need 5-8 Mbps per TV per room serviced for HD </li></ul></ul>
  14. 15. Conclusions <ul><li>Video Service is a Large Revenue Opportunity but Triple-play Service Will Be Larger </li></ul><ul><li>IPTV Offers Many Advantages and the IP Network Phase is Just Beginning </li></ul><ul><li>IPTV Will Eventually Become The Dominant TV Delivery Method … Shared By Telco and Cable </li></ul>
  15. 16. Question & Answer Q & A
  16. 17. Thank You

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