IPTV new trends and recommendations for planning and roll out strategies - Centralized Platform for Service Delivery and Content Handling - Cost saving while providing enhanced service experience - From service planning to live deployment

1. Multi-Platform Services: Increase Service Provisioning and Decrease Costs IPTV Forum London 26th of March 2009 Thomas Grota Head of Center of Excellence New Media Detecon International GmbH Think forward Designing Future Business

6. Profitability Challenge of New TV Subscription Pay TV, VoD, HD Advertising Interactive Services Subsidization Core & Access IP Network Middleware with QoS Service Development Content Licensing Francising of UCG & Social Networks Revenue Streams Cost Drivers Without a viable business model subsidizing triple-play to defend from cable operators will not be sustainable in the long term. ++ +/- + ++ +/- +/- + + +/- + Profitability Gap Baseline Financial Perspective 2 Costs will be stable in current model due to scalability concerns. New costs will raise due to the need of social services Costs will increase due to new models for different channels Cost will increase by in-house activities. Cost per user will decrease but prove is to be made. Cost will be stable for subsidizing STB’s and Contracts Revenue will increase due to new services. Revenue will increase due to new advertising models. ARPU will increase due to “lean forward” trend. Pricing will decrease while numbers grow. +/- = Trend Indicative

7. Content is King …. But it comes at a Price ! Value of Content Ranking Value of Ownership of operator A B C Low High Live Nation Movie Studios Soccer Leagues NFL, MLB, NBA NY Times, WSJ Bloomberg Apple, et. all. Cable Operator Satellite Operator IPTV Provider (Telco) Amazon, et. all Google, et. all Customer Relation Struggle for leadership Licenses The Power of Ownership Selecting the Best Content Establishment of Platforms Content Creation Licensing Costs Content ranking and analysis of ownership is needed to master the struggle between content providers and platform operators regarding indecisiveness & leadership.

10. The future New TV platform: Smart, Efficient & Social Social Networks: Content, Status Feeds, Messages, Friends recommendations Core IP Network Wireline Access Network Mobile Network Common User Experience 3G / LTE WiFi WiMax xDSL xPON New TV Backend Interactivity: Widgets, Chats, Communications, Voting, Gaming Customer Devices: Adaptive Screens, Variable Resolution, Various Firmware /OS Nomadic Usage: Remote Device Management, Location Based Services, Head end & Encoding Media Management EPG & VAS CRM, Billing & Accounting Provisioning & OSS Platform Efficiency Ever-increasing user expectation will demand the integration of new processes, Web 3.0 content and require support for interactive applications across all devices and networks.

12. Intelligence lives at the Edge of the Content Network Device centric Network centric Timeline of Technology Development Set Top Boxes (including HD VCRs) Low Cost Streaming Box (Linux, Flash based) Hybrid Content Feed (DVBT, IP, QoS) TV Sets (Home Network, UPnP, embedded IPTV Clients) HD VCRs (embedded, Smartcards) Media Center TVs (Software Plug-in) Media Management within the Cloud Wireless Broadband IPTV (WiMax, LTE) P2P enabled CDNs, SIP for IPTV Signaling, VoD via RTSP Roadmap of Device Development in the Future “ All in One” IPTV Devices Integrated IPTV Devices Cloud Based Services Future Development Fundamental changes will occur within the development of the ITPV premises. The IPTV termination will shift focus from a device driven to a network driven approach.

13. IPTV on IMS & SDP – “Doing more with less” Remote Device Management Embedded Devices Cloud Services SIP / RTSP P2P CDN Wireless Networks Interactive Advertising Voting Telephony and Chat Auctioning Red Button Service Content Tracking Process Architecture Service Architecture Application Architecture Technical Architecture SDP IMS Services Analysis Functional Components Map Target Architecture 1. 2. 3. Design Principles On all levels the costs must be lowered through the IPTV product lifecycle. Service allocation & distinguished planning is key for efficient development and roll-out. 1. Business Requirements 2. Service Assesment 3. IPTV Architecture

14. Planning New TV Services starts in the Middle(ware) IPTV Architecture Domain Model Interaction Domain Infrastructure Domain 3rd Party Interfaces Domain Identity Mgmt. Domain Service Control Domain Service Creation, Mgmt. and Execution Domain Content Provisioning Domain Business / Operations Subsystems Domain Service Impact Cluster on Domain Model Design Principles Analyzing the impact of interactive services on the IPTV domain model will identify weaknesses of current technologies and supports implementation of new technologies. Illustrative

15. Service Planning and Live deployment Service Assessment Service Roadmap Financial Evaluation In Out Service Definition Methodology Derive cost from service assesment and roll out scenarios to define service roadmap – Capex can be minimized by outsourcing operations to IPTV vendor – Start discussion. Illustrative Illustrative Illustrative

18. DETECON’s Clients in New TV projects around the globe Detecon’s Media Expertise In the dynamic media business, Detecon has proven expertise in leading edge business topics as well as deep knowledge in related state-of-the-art technologies. Selection of Important Media Projects Network Strategy IPTV-Strategy / Interactive Service Strategy IPTV Service Strategy Content 2.0 Android application strategy for major European incumbent Advertising / Media Strategy Assesment and Blueprint for IPTV and Media Unit All-IP NGN Service & Product Roadmap IPTV-Strategy Production Workflow Process Alignment Category Management IPTV-Innovations Interactive Advertisement PSN @ New TV and EPG Network Architecture Go-to-market strategy for international mobile software launch Strategy Mobile TV

20. Thomas Grota Head of CoE New Media DETECON Consulting Detecon International GmbH Oberkasseler Str. 2 53227 Bonn · Germany Phone (+49 228) 700-1943 Email:thomas.grota@detecon.com http://www.detecon.com Supervisory Board: Hans-Jürgen Wickenhöfer (Chair) Management Board: Dr. Klaus Hofmann (Chair) Registered at: Court of Bonn HRB 2093 Company location: Bonn The future‘s looking good Thank you for your Attention!