The document discusses delivering video over IP networks and Microsoft's role in IPTV solutions. It describes IPTV as an entertainment service that delivers broadcast TV and video on demand over a closed, QoS-enabled IP network. It outlines opportunities for service providers with IPTV to enter the pay TV market and expand their reach. Microsoft provides options for service providers with encoding, subscriber management, and their "TV2" end-to-end video delivery solution.

1. Delivering Video over IP

2. Reaching New Audiences Delivering Video to TV DVB, DAB WM9S Server IP encapsulation WM9S Encoders Media IP (DSL) Mobile IP-based Streaming

3. Forces Shaping TV’s Future Market Dynamics Regulation Market Opportunity Broadband IP Networks Moore’s Law Content, Ad Models Better Video Compression

4. What is IPTV? Direct to consumer entertainment service Broadcast television Video on demand High quality, resolution, available streaming Delivery over a closed IP, QOS enabled network Fixed wire delivery Offered by last mile network service provider

5. Service Provider Opportunity with IPTV New Business Models Enter Pay TV market Compete for the Triple Play New Audiences Expand reach Retain current customers New Applications Differentiation through Video Premium subscription services New Revenue Streams Ad insertion, subscription and PPV Re-monetize content distributed to multiple channels and devices

6. IPTV and VOD Architecture On-Demand Encoder Live Media IP (DSL) On-Demand Media Live Encoder Live Streaming Server VOD Streaming Server TV via STB Media Center Edition PC Subscriber Management Server

7. Microsoft Delivers IPTV Providing Options for Service Providers Encoding STB Subscriber Management

8. Windows Media 9 Series Windows Media Server Windows Media Audio/Video Windows Media Player Windows Media Encoder Windows Media DRM Windows Media SDK Better Together

9. “ TV2” from Microsoft TV End-to-End Video Delivery Solution The Experience Deliver fundamentally Better TV experience More programming choices Multimedia program guide Live TV and on-demand Instant channel changing Multi-TV households High-definition capable TV joins the home network Key Components Secure and scalable Open standards for security Scales to millions of viewers Drive low-cost CPE “ Universal” Client software for embedded TVs, STBs, PCs Partner for chip integration Modern Video Compression Windows Media 9 beats MPEG2 Microsoft Server Headend Built on Windows Server 2003 and supports WM9

10. 3rd Party IPTV End-to-End Video Delivery Solution Operator Benefits Compete in the ‘triple play’ Economically deliver high-quality video Developed on Microsoft Platform End-to-end functionality for Live and ‘Pay Per View’ Supports Pay TV model Choice in ‘go to market partners Reach new customers Build new revenue streams Customer Benefits Value View HQ video and broadcast TV content from a single provider TV-like experience with remote control Rich programming guide Instant channel change Fast forward/reverse

11. Microsoft 3 rd Party End-to-End Video Delivery Solution Live Encoding Subscriber Management VOD STB Internet

12. © 2003 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.