This document discusses the evolution and future of television. It covers the shift from analog to digital TV, the rise of high-definition and 3D TV, and changing consumer behaviors around accessing content. Emerging platforms for TV include terrestrial, satellite, cable and internet-based IPTV. Global TV shipments and revenue are also discussed. The future of TV is predicted to include technologies like hybrid broadcast broadband TV and over-the-top internet services delivered on new devices beyond traditional set-top boxes.

1. Click to edit Master title style
Evolution and Future of TV
Presenter: Vishal

2. Agenda
Background, Global TV - Shipments and Revenue
Evolution of TV, Emerging Platform
Evolution of IPTV, Triple Play
The Emergence of new TV platform services
Changing Landscape, Battle Across TV Landscape
Value Chain, Hybrid TV, IPTV in the Living Room
IPTV Architecture, Opportunity For Service Providers
Google vs Apple and Rest, Google TV Under The Hood
Status Today & Predictions - Gartner Hype Curve
Appendix - Emerging Trends and Standards

3. Background
Analog is Legacy - switch off is planned for the next decade around the world
Boom in Digital TV - terrestrial, cable, satellite, IPTV, in all forms
HDTV is becoming prevalent and technologies such as 3DTV and mobile TV are taking off
Shifting Consumer Behavior - access content wherever, whenever and on the device of their choice
* HDTV - Television with resolution substantially higher than traditional television systems
(standard-definition TV, or SDTV, or SD), usually with a resolution of at least 720P Source: BSI Report 2010, Future of TV

4. Global TV - Shipments and Revenue, 2009-2010
6% increase in TV shipments,
will rise from 205m units in 2009
to 218m units in 2010
Avg. selling prices for all TV
technologies decreased 9% in
2009, the first year of declining
average prices since the flat
panel TV transition began.
Source: Display Search, BSI Report 2010, Future of TV

5. Global TV - Revenue Source
2009 saw a drop in total TV
revenues, with the global
economic crisis particularly
impacting on advertising
revenue
Subscription fees overtake
advertising revenue in
importance and with the
projected economic recovery.
TV industry to grow and hit total
revenues of $450.3bn in 2013
Source: iDate, BSI Report 2010, Future of TV

6. Evolution of TV
3D TV
High
Blu-ray HD
HD On Demand
Quality
DTT Pay TV DVD
Mobile TV VOD
Analog Broadcast TV
Low
VHS
Legend
Color Cinema & Sound
On Demand
Low Choice/Convenience High Broadcast
Source: BSI Report 2010, Future of TV

7. Emerging Platform
Four Platforms:
• Terrestrial
• Satellite
• Cable
• IPTV
* Terrestrial - transmission on earth from one point to another that doesn't make use of satellites.
Source: iDate, BSI Report 2010, Future of TV

8. Emerging Trends and Standards
HDTV
• Moving from backlit LCD to LED & OLED, Kodak owns the patent, hampering the price and uptake
• 3 Formats – 720p, 1080i (HD ready), 1080p (full HD, true)
3DTV
• Success of Avatar and Alice in Wonderland is pushing Hollywood
• Delivers 2 separate stream of - one for Left eye, other for Right eye, requires a specliaised glass
• No Standards yet, though work is going on
IPTV
• Video stream encoded as a series of IP Packets, one programme sent at a time, requires a Set Top Box (STB)
• Uses multicasting (IGMP V2) for Live TV and Real Time Streaming Protocol for On Demand
• iTV - content distributed by via Web
Video On Demand (VOD)
• Offered over converged IP network, offers a highly interactive, customised „anytime‟ video experience
• most promising element of the multiplay service bundle, and can lead to an array of new, revenue-
producing services for providers such as the marketing and selling of DVD, customised content
Mobile TV
• Video and voice content on a platform, capable of moving, provides personalised and interactive TV
• Digital Video Broadcasting(DVB -H) - for Handheld terminals, Terrestrial Digital Multimedia
Broadcasting, Integrated Services Digital Broadcasting – Terrestrial
• Delivered via, 2-way cellular network – 3G (Unicast) or 1- way dedicated broadcast (Multicast)
* p – progressive scan, i - interlaced, used by analogue
Source: BSI Report 2010, Future of TV

9. Evolution of IPTV
Analog TV Digital TV IPTV
ALL Live Themed channels, Any Time, Any where
Usage Collective On The TV Set Time shifted TV Any Terminal
Terminal - TV Pay TV network bypassed,
Pay TV Networks,
Access Network - Broadcast
Multichannel providers
direct channel/content
Gatekeeper - TV Channel owner relationship
Personal TV
Services Broadcast TV Multichannel TV, VOD
Social TV
TV Channels Subscription
Program Advertising
Funding Public Funding, Advertising TV Package Subscription
Program Purchase
Advertising
Content Right holders
Key Content Owners Content Owners, Cable Device Manufacturers
Players Broadcast TV Channels Channels, Pay TV Networks Search Engine (Google)
Social Networks
Source: iDate Consulting & Research- Understanding The Digital World, 2009

10. IPTV
A viable platform for digital TV services - driven by telcos’ desire to deploy triple-play services in
order to reduce customer churn levels and boost ARPU
Internet enabled TV sets are expected to reach 93m units by 2013, compared with 14.9m in 2009
Companies are creating widgets to embed their services within connected TVs. Skype will be
embedding its service in a number of HDTVs
Consumer habit - evolved from passive consumption of TV to an interactive user experience
Global subscribers will grow 31% (CAGR), from 28m in 2009 to 83m in 2013
Internet video now accounts for approximately 1/3 of all consumer Internet traffic
Source: BSI Report 2010, Future of TV

11. Triple or Multiple Play
Internet
Mobile,
Games,
Home
Video on
Surveillance
Demand
Telephony
TV(Video)
(Voice)
Source: BSI Report 2010, Future of TV

12. Battle Across TV Landscape
Content Provider
Broadcast
Or Studios
Cable Youtube,
Facebook
Hulu
Google, Computing
Network Telcos Customers Amazon,
Power Power
Microsoft
TIVO
Consumer
Electronic
Manufacturer
Device Power Source: Report 2010, TV Delivery Evolution, Alan Quayle

13. The Emergence of new TV platform services
Right TV Content
Network Terminal EPG/OS Consumer
holders Channel Packager
New services providers
managing the content
Source: iDate Consulting & Research- Understanding The Digital World, 2009

14. Changing Landscape
Right TV Content
Network Terminal EPG/OS Consumer
holders Channel Packager
Advanced STB
to move into the
digital home
(T-Box, T-Hub)
Securing exclusive
content
Gaining space
shelve on all
platforms
Controlling the
eco-system
New competitors on the VOD market
Theme channels challenged by OTT services
Triple-play value proposition threatened
Direct distribution of (non premium) programming by US majors
Network congestion
Source: iDate Consulting & Research - Understanding The Digital World, 2009

15. IPTV in Living Room
The traditional Pay Tv Set
Top Box is only one of the
many ways consumers can TV set Internet-enabled
access rich video content on TV set DTT Es: Sony Bravia, Philips Net TV
Embedded
the sofa screen
OTT TV
BOXES
Traditional Set Top Boxes: BB STB “Ibrido” Lettori Blu-ray/ BB STB Game console BB STB Open
Cable, Sat, DTT , (DTT, Sat, Cable, IP) DVD Apple TV Es: xBos 360, PS3 Es: Roku
hybrid,IPTV Es: Tivo, CuboVision
A whole new set of devices
are aimed at allowing
online Video consumption IP
Broadcast: Internet IP
on TV through the (Managed)
Satellite, Cable (Unmanaged)
Broadband connection
• Over The Top TV Boxes
• Internet Enabled Tv Sets TELCO IPTV BroadBand
Network
Source: Telco2.0 2010 Forum

16. Hybrid TV Landscape
Broadcast Network
Centric
Hybrid Telco
Terrestrial + IPTV
Telco IPTV
One Way Cable Hybrid Cable
Terrestrial TV Cable+ IPTV
Satellite TV Hybrid Satellite
Satellite + IPTV
Terrestrial/Satellite + Telco/Cable +
OTT OTT
Internet TV or
Over The Top TV (OTT)
Network
Agnostic
Source: Report 2010, TV Delivery Evolution, Alan Quayle

17. Opportunity for Service Providers
A distribution platform open to all Content Providers (with no cultural obstacles, as
broadcasters have, aimed at defending mainstream/premium content ) business
A new models primarily depend on Content Owners
paradigm Service Providers have to build a Business Model around the nature of the content
alongside with the Content Owner, looking for “shareable” sources of revenue
If a Service provider has the ambition to place itself at the center of the new Ecosystem ,
new engagement rules with Content and Application providers have to be set
These rules go far beyond the traditional negotiation process with majors/publishers
What the Telcos can Offer What the Telco are looking for
Content :
• Quality of Service and Quality of Experience even • Professional
in condition of Traffic Congestion • Rights Cleared
• Reach of a big multiplatform customer base • Strongly differentiated by mainstream TV
Anytime, Anywhere, Cross-Device • able to reach a wide public individually, or a
• Parental Control and DRM critical mass of niches, able generate
• Billing, CRM, eTech Support significant revenue
• Mass Market Proof Marketing /Communication • That does not require a strong localisation
Resources effort (dubbed/subtitled) language-neutral
• Digital Identity Management aimed at (ex: Music, Vimeo, Arte Live Web)
maximizing Client Contact AND Application Applications:
Value • That do not create discontinuity in the UX
• That do not set new knots for the Ecosystem
Source: Telco2.0 2010 Forum

18. Opportunity for Service Providers
In the most favourable regulatory scenario, Telcos can take advantage of the
quality/quantity of data generated by Users while consuming online video, in
Generating the perspective of an accurate management of their Digital Identity on three
value from screens (Desktop, Mobile, TV)
User Generated
Data Telcos can rely on a wide consumer base and a pervasive set of capabilities:
3- screens IP Profiling
Presence
Location
Billing
Business Impact
• Integrating these capabilities in the User Experience Management on the main TV Screen means:
• Maximizing video ADV returns, on a degree hardly allowed by other video distribution platforms
(context based, behavioural based)
• Returning Value To Services and Applications through User Generated Data
• Maximizing personalized offering value (Ex: Pay VOD)
• Chance to expose User Data as part of Upstream offering to Third parties (Content Providers but
also Merchants)
• This kind of strategy is possible only if:
• Privacy-related regulation allows User Data Management (User Opt-in on selected Services)
• IP profiling is validated by the two key markets involved (Advertising e Marketing Services)
Source: Telco2.0 2010 Forum

19. Opportunity for Service Providers – App Store
As the iPhone case widely demonstrated, an open
Application Store that can leverage on
crowdsourcing, with an SDK open to third party
developers (keeping control on what apps are
phisically distributed on the official store) is key to
reaching a critical mass not only on “service”
applications but also on “content applications” that
offer CPs a personalized environment for distributing
their “signed” library
This solution is ideal to generate value from free
content with public APIs, as it transfers the effort of
building the application to the developer‟s
community
At the same time, it gives users access to the widest
possible free catalogue (a problem for broadcasters,
not for telcos).
When Premium (Pay) Content is involved, the
developement of an application (that leverages on the
high powered telco backend), can be part of the
Telco’s proposition to Content Providers
Source: Telco2.0 2010 Forum

20. Source: PCWorld

21. Google TV
Google launched its own OTT TV software-based proposition (Google TV)
Based on Chrome, this software will allow navigation on the sofa screen among all the video content
that is normally available via desktop browser, as Open Source Applications like Boxee have already
made possible
Provides a TV-friendly interface for popular Social Media apps like Hulu, Facebook, Twitter
SDK for independent content providers to develop widgets to access their content, and – most
important – participation in the advertising rev- sharing program
Users can use their Android phone or iPhone to control Google TV instead of using a remote control
Announced in partnerships with Sony (Connected TVs), Logitech and Intel (chipset for a future
dedicated STB)
Source: Telco2.0 2010 Forum

22. Google TV
Source: Endgaget

23. Status Today - Gartner Hype Curve
Source: Gartner Hype Curve - 2010