The document discusses the history and innovations of MultiChoice, a television provider in South Africa, including: 1. MultiChoice pioneered pay television and digital satellite TV in South Africa, introducing the first analogue pay channel in 1986 and becoming the second company worldwide to launch digital satellite TV. 2. MultiChoice has introduced several interactive and dual viewing innovations like dual view decoders, dual view personal video recorders, and mobile TV services. 3. The document outlines MultiChoice's rollout of high definition television services starting in 2008, including the costs and challenges of providing multiple HD channels.

1. Highway Africa - 2008 Phil Nicholson “ Television and the Citizen Consumer”

2. The Citizen Consumer, A television journey with MultiChoice

3. Pioneering with MultiChoice - Analogue Analogue Pay television pioneered in South Africa  1 analogue channel Next 2008 2007 2005 2003 1997 1995 1986

4. Pioneering with MultiChoice - Digital Satellite Analogue Digital multi channel Second company in the world to introduce Digital Satellite TV  Multiple channels through a digital decoder Next 2008 2007 2005 2003 1997 1995 1986

5. Pioneering with MultiChoice - Interactive Analogue Digital multi channel Interactive applications introduced on the platforms  News, Weather, Sport, Games etc Interactive Next 2008 2007 2005 2003 1997 1995 1986

6. Pioneering with MultiChoice - Dual View Analogue Digital multi channel Dual View World first Dual View decoder developed by MultiChoice  One decoder, two independent viewing environments Interactive Next 2008 2007 2005 2003 1997 1995 1986

7. Pioneering with MultiChoice - DV PVR Analogue DV PVR Digital multi channel Dual View World first Dual View PVR developed by MultiChoice  Full PVR functionality in two viewing environments off a single decoder Interactive Next 2008 2007 2005 2003 1997 1995 1986

8. Pioneering with MultiChoice – DVB-H Analogue DV PVR Digital multi channel Dual View First DVB-H service in Africa  10 – 12 TV channels on a mobile phone Interactive DVB-H Commercially available Namibia Kenya Nigeria Ghana Commercially Available Namibia Kenya Nigeria Ghana Next 2008 2007 2005 2003 1997 1995 1986

9. Pioneering with MultiChoice – HD & XtraView Analogue DV PVR Digital multi channel Dual View High Definition launched television so clear it feels like someone has wiped Vaseline from your eyeballs Interactive DVB-H HD & XtraView XtraView is launched  Two decoders, one subscription Lounge Bedroom One subscription Next 2008 2007 2005 2003 1997 1995 1986

10. Pioneering with MultiChoice – The Future Analogue DV PVR Digital multi channel Dual View Interactive DVB-H HD & XtraView What does the Future Hold? Video on Demand User Generated Content – “YouTube” Digital Migration IPTV Viewer participation Future 2008 2007 2005 2003 1997 1995 1986

11. Pioneering with MultiChoice – Technology Cycles Analogue DV PVR Digital DV Innovation cycles are becoming shorter and shorter DVB-H HD + XtraView + On Demand 9 years 8 years 2 years 2 years 1 year 9 months Increasing suite of interactive applications on the platform 2008 2007 2005 2003 1995 1986

12. The MultiChoice HD Offering

13. HD PVR Features Show HD and SD channels Same price as SD PVR R2,999 150 hours of SD recordings or 50 hours of HD recordings Record 2 programs at the same time Personalised channel list Trick modes Multi-Room

16. Availability – August 2008

17. Availability – September 2009

18. What our customers say “ This evening’s football is completely mesmerising – particularly when you switch to the normal SD channel, and then back to HD. It feels like someone has wiped the dust out of my eyes and restored 20/20 vision when I switch back to HD. Awesome. Awesome. Like a kid in a candy factory  Please Sir, may I have some more!!”

19. Why only one channel? Start up costs - $25m plus, once people, training and content included HD OB Van R60m HD Studio R30m Play out facility R10m Compression equipment R1m Develop HD Decoder R40m Satellite capacity R8m

20. HD Market Development

21. LCD Sales – South Africa 6620 6613 6913 9387 11425 10304 10074 10144 12792 13511 14240 17345 23236 13387 13190 17674 17972 17455 18251 Dec06 Jan07 Feb07 Mar07 Apr07 May07 Jun07 Jul07 Aug07 Sep07 Oct07 Nov07 Dec07 Jan08 Feb08 Mar08 Apr08 May08 Jun08

22. Plasma Sales – South Africa 5726 3366 3958 4399 5640 5342 5539 5619 6700 6853 6209 7443 9315 6378 5847 6634 6836 7371 7637 Dec06 Jan07 Feb07 Mar07 Apr07 May07 Jun07 Jul07 Aug07 Sep07 Oct07 Nov07 Dec07 Jan08 Feb08 Mar08 Apr08 May08 Jun08

23. Combined flat panel TV screen Sales – South Africa Potential HD Customers

24. LCD vs Plasma Older model Plasmas were subject to “burn in” from static images  Burn in Plasmas are more fragile and heavier  Durability/handling LCD 2” to Plasma 3”  Width LCD are generally more power efficient (30%)  Power consumption LCD 3 to 6 years of 24/7 usage, Plasma 3 years of 24/7 usage. Newer Plasma models have improved  Life expectancy LCD dominates  Small screen sizes At 42 inch and above Plasma ± 10% cheaper  Price 42” and above Plasma black level, brightness and contrast are generally better in ideal conditions but with a lot of ambient light LCD performs better as Plasmas tend to reflect light  Picture quality Notes LCD Plasma Compared item

25. HD Explained

26. How is better picture quality achieved? Full HD HD Africa SD America SD 2 to 4 times more pixels on the screen producing a much sharper image 2 to 4 times more pixels on the screen producing a much sharper image 2 to 4 times more pixels per screen – denser pixels = better picture quality Number of pixels Lines down Pixels across Type 367,500 525 700 SD (NTSC) 479,808 576 833 SD (PAL) 921,600 720 1280 HD 2,073,600 1080 1920 HD

28. Interlaced Video Displays odd lines, then even lines, then odd…at 25 frames per second Odd lines Field 1 Even lines Field 2 Field 1 + Field 2 = Frame (complete image) Image taken from: www.anchorbaytech.com/.../interlaced-scan

29. Progressive Video Displays complete frames at 50 frames per second Frame 1 Image taken from: www.anchorbaytech.com/.../interlaced-scan Frame 2

30. Interlaced vs Progressive Video Progressive Scan Image taken from: network-surveillance.co.uk/images/prog_scan Interlaced Scan

31. Interlaced vs Progressive Video Interlaced Scanning also has a problem of motion Artifacts Image taken from: http://justsayyes.wordpress.com

32. How the different TV sets treat the video broadcast SD channels are broadcast in this manner and up scaled by the HD TV sets when displayed. Poor quality TV sets tend to result in poor video experience Bandwidth efficient and handles high motion scenes better than 1080i. MultiChoice uses this standard Bandwidth efficient and a lot of content is filmed in 1080i Adhoc broadcast standards only just emerging, but Blu-ray players such as Sony Playstation 3 handle this format Comments Inserts 144 lines and displays progressively Inserts 504 lines and displays progressively Displays interlaced without manipulation 576i Displays all lines without manipulation Inserts 360 lines and displays progressively Requires downscaling device (decoder) to display a picture 720p Merges odd and even lines, discards 360 lines, then displays the remaining 720 lines progressively Merges odd and even lines then displays all lines progressively Requires downscaling device (decoder) to display a picture 1080i Discards 360 lines and displays the rest Displays all lines without manipulation Requires downscaling device (decoder) to display a picture 1080p HD TV set 720 lines Full HD TV set 1080 lines Traditional CRT TV 576 lines Broadcast format

33. When is 1080p better than 720p?

34. What is the Optimal Distance for combined SD and HD (720p) Viewing?

35. Thank you Require further contact: Phil Nicholson Mobile : 082 373 5807 Email : pnichols@multichoice.co.za

36. Full HD HD Ready Africa SD America SD : : : : 4 4 16 16 Number of pixels Aspect ratio Lines down Pixels across Type 367,500 3 525 700 SD (NTSC) 520,833 3 625 833 SD (PAL) 921,600 9 720 1280 HD 2,073,600 9 1080 1920 HD