Addressing Challenges In Addressing Challenges In Developing CE Solutions Developing CE Solutions With PC TechnologyWith PC Technology

Rod FleckRod FleckAMD FellowAMD FellowDigital Multi-Media Solutions GroupDigital Multi-Media Solutions Group

AgendaAgenda

Summarize some current CE solutionsSummarize some current CE solutions

Convergence of set-top boxesConvergence of set-top boxes

Improving CE device capabilities with PCs Improving CE device capabilities with PCs in home networkin home network

Leveraging PC capabilities in CE solutionsLeveraging PC capabilities in CE solutions

Concepts for better CE solutionsConcepts for better CE solutions

Traditional Digital Home Traditional Digital Home Theater In A Box SolutionsTheater In A Box Solutions

Easy to use – reliableEasy to use – reliable

Good sound/videoGood sound/video

Works right of the boxWorks right of the box

Easy to connect to other Easy to connect to other CE devicesCE devices

Looks great – fits in homeLooks great – fits in home

Small – quietSmall – quiet

Fairly low cost ($199-$999)Fairly low cost ($199-$999)

Home Theater In A BoxHome Theater In A BoxSuccessesSuccesses

Very strong growth in most marketsVery strong growth in most markets4.7 million units in 2004 in US alone4.7 million units in 2004 in US alone

Easy to sell as add-on to HD-TVEasy to sell as add-on to HD-TV

40% are repeat sales40% are repeat sales

Meet many people’s needs for amplifier, DVD, Meet many people’s needs for amplifier, DVD, AM/FM radioAM/FM radio

Good for living room and ideal for bedroomsGood for living room and ideal for bedrooms

Good way for dealers to up-sell DVD capabilityGood way for dealers to up-sell DVD capability

Home Theater In A BoxHome Theater In A BoxWeaknessesWeaknesses

Still need a number of other boxesStill need a number of other boxesSet-top box, DVR, game machine, VCRSet-top box, DVR, game machine, VCR

Issues for single remote, ease of set-upIssues for single remote, ease of set-up

Most devices can not connect to other Most devices can not connect to other ethernet based devicesethernet based devices

Most do not support hi-definition videoMost do not support hi-definition video

Quality (audio/video) varies wildly across many Quality (audio/video) varies wildly across many vendors/modelsvendors/models

Many formats of video are not supportedMany formats of video are not supported

No way to add capabilityNo way to add capability

Set-top Box ConvergenceSet-top Box Convergence

Set-top boxes are incorporating DVD and DVD Set-top boxes are incorporating DVD and DVD authoring capabilityauthoring capability

Set-tops are incorporating photo slide-shows Set-tops are incorporating photo slide-shows and music playback solutionsand music playback solutions

TiVo provides access to TV content from PCs and remote TiVo provides access to TV content from PCs and remote control of recordingcontrol of recording

Many have access to most premium contentMany have access to most premium content

Fantastic Growth In MarketsFantastic Growth In Markets

300300

250250

200200

150150

100100

5050

002004 2004 FCSTFCST

20032003200220022001200120002000 2005 2005 FCSTFCST

2006 2006 FCSTFCST

2007 2007 FCSTFCST

2008 2008 FCSTFCST

2009 2009 FCSTFCST

WW TotalWW Total

Uni

ts in

Mill

ions

Uni

ts in

Mill

ions

Source: Orange BookSource: Orange Book 20032003 20042004 20052005 20062006 20072007

0%0%

5%5%

10%10%

15%15%

% o

f hou

seho

lds

% o

f hou

seho

lds20%20%

25%25%

30%30%

25%25%

19%19%

13%13%

7%7%

55

3.23.2

7.0

13.7

20.920.9

27.727.7Hou

seho

lds

(mill

ions

)H

ouse

hold

s (m

illio

ns)

00

1010

1515

2020

2525

3030

3535

4040

4545

5050

CAGR (%) = 72%CAGR (%) = 72%

DVR Percent of DVR Percent of HouseholdHousehold

DVR DVR HouseholdsHouseholds

3%3%

1. Rapid growth of HDTVs WW1. Rapid growth of HDTVs WW 2. Strong growth of DVR HHs2. Strong growth of DVR HHs

3. High theater-in-a-box interest3. High theater-in-a-box interest 4. Advanced set-top-box growth 4. Advanced set-top-box growth

CAGR (%) = 32%CAGR (%) = 32%HHs expecting to purchase audio products within one year

Portable CD player

Portable MP3 player

CD recorder

Theater-in-a-Box = 4.7M 0

5000

10000

15000

20000

25000

30000

2003 2004 2005 2006 2007 2008 2009

Ship

ments

(K

U)

US OnlyUS Only

World-wideWorld-wide

Source: CEA

Source: IMS Research

Potential ConvergencesPotential Convergences

HD-TVCompanion?

Set-top BoxesSet-top Boxes

Theater-in-a-BoxTheater-in-a-Box

MCE PCMCE PC

Supporting Two Approaches Supporting Two Approaches To Improving CE SolutionsTo Improving CE Solutions

Leverage MCE extender Leverage MCE extender (or Extender-like) technologies to (or Extender-like) technologies to expand the capabilities of traditional expand the capabilities of traditional CE media portalsCE media portals

Enable CE features/capabilities ontoEnable CE features/capabilities ontoPC infrastructure (CE outside/PC inside)PC infrastructure (CE outside/PC inside)

Distributing Content Throughout Distributing Content Throughout The Home And On The GoThe Home And On The Go

Manage pictures,Manage pictures,music, videosmusic, videos

Share TV programsShare TV programswith your PCswith your PCs

Share media and

Share media and

web access

web access

Bring media and access Bring media and access mome media on the gomome media on the go

Leverage OpenLeverage OpenStandards And SoftwareStandards And Software

AMD LIVE! takes advantage of technologiesAMD LIVE! takes advantage of technologieslike UPNP, DLNA, WMC, Microsoft Extender like UPNP, DLNA, WMC, Microsoft Extender technologies, etc.technologies, etc.

Software stacks on target devices are smallSoftware stacks on target devices are smalland leverage low-cost nature of set-top and and leverage low-cost nature of set-top and theater-in-a-box solutionstheater-in-a-box solutions

Primary required support includesPrimary required support includesSome form of IP connectivity Some form of IP connectivity (802.3, 802.11, Powerline, etc.)(802.3, 802.11, Powerline, etc.)

Embedded 100 MIPS core and 2D graphics Embedded 100 MIPS core and 2D graphics

Bringing PC Technology Bringing PC Technology Into CE Media SolutionsInto CE Media Solutions

Trends Creating OpportunityTrends Creating Opportunity

CE Complexity HW/SW

PC Costs / Commoditization

HD-Def C

ontent /

TV

Average per USAverage per USHousehold: $1500Household: $1500

Example 2005 AMD DesignsExample 2005 AMD Designs

AMD Reference DesignAMD Reference DesignDealt with heat/noiseDealt with heat/noise

CE-style/user interfaceCE-style/user interface

Integrated AV connectivityIntegrated AV connectivity

Easy modification of case, Easy modification of case, I/O, drives, CPUs, etc.I/O, drives, CPUs, etc.

First Generation (2005)First Generation (2005)

Windows MCE SuccessesWindows MCE Successes

Wide access to most media types/formatsWide access to most media types/formats

Easy to connect cameras, camcorders, Easy to connect cameras, camcorders, and portable media playersand portable media players

Easy to share and backup mediaEasy to share and backup media

10’ experience is intuitive10’ experience is intuitive

HD picture quality is goodHD picture quality is good

Spotlights offer new media to 10’ usersSpotlights offer new media to 10’ users

HD-Audio is far improved to AC-97HD-Audio is far improved to AC-97

Great for TV and PC with one displayGreat for TV and PC with one display

Easy access to casual gamingEasy access to casual gaming

Windows MCE ChallengesWindows MCE Challenges

Other devices are required in most casesOther devices are required in most casesDigital interfaces preserve qualityDigital interfaces preserve quality

Standard connector plugs missing in many casesStandard connector plugs missing in many cases

Home connectivity is still poor for videoHome connectivity is still poor for video

Many devices are too big, too hot, Many devices are too big, too hot, and lack CE interfaces and styleand lack CE interfaces and style

Full premium content fair use not yet availableFull premium content fair use not yet available

Protected content outputs are rareProtected content outputs are rare

Devices are too expensive in many casesDevices are too expensive in many cases

Some Good News On HorizonSome Good News On Horizon

Windows Vista Premium offers richer Windows Vista Premium offers richer entertainment experienceentertainment experience

More 10’ interface based web contentMore 10’ interface based web content

OCUR or OCUR-like devices should allow OCUR or OCUR-like devices should allow digital access to premium contentdigital access to premium content

Larger amount of internet based content Larger amount of internet based content from music to movies to long-tail contentfrom music to movies to long-tail content

Optical platform will support both HD-DVD Optical platform will support both HD-DVD and Blu-Rayand Blu-Ray

Can We Do Better – YES?Can We Do Better – YES?

Lower cost – higher chip level integration Lower cost – higher chip level integration and higher volumeand higher volume

Smaller designs – mITX or similar motherboards, Smaller designs – mITX or similar motherboards, leverage laptop drives, smaller power suppliesleverage laptop drives, smaller power supplies

Lower noise – lower speed fans, lower power processor, Lower noise – lower speed fans, lower power processor, more efficient video processingmore efficient video processing

Better front-end costs – higher integrated multi-standard Better front-end costs – higher integrated multi-standard and embedded CA solutionsand embedded CA solutions

CE industrial design – better front-panel user interface CE industrial design – better front-panel user interface and better styleand better style

Full HD-support – move beyond today’s HD MPEG2 to Full HD-support – move beyond today’s HD MPEG2 to upcoming H.264 in TV standards and multiple codecs upcoming H.264 in TV standards and multiple codecs for HD-DVD or Blu-rayfor HD-DVD or Blu-ray

Introducing EnergyIntroducing EnergyEfficient AMD ProcessorsEfficient AMD Processors

Energy efficient AMD desktop processorsEnergy efficient AMD desktop processorsCan help OEMs design small form factor (SFF) PCs thatCan help OEMs design small form factor (SFF) PCs thattake up less space and are more aesthetic, giving them the take up less space and are more aesthetic, giving them the opportunity to provide differentiated and competitive opportunity to provide differentiated and competitive solutions to their customers solutions to their customers

Can reduce the noise and heat emitted from systems to Can reduce the noise and heat emitted from systems to extend the longevity of their PCs while offering consumer extend the longevity of their PCs while offering consumer and business users a quieter, more pleasant experience in and business users a quieter, more pleasant experience in their offices or living roomstheir offices or living rooms

When combined with AMD’s award-winning Cool‘n’Quiet™ When combined with AMD’s award-winning Cool‘n’Quiet™ technology, can enhance system energy efficiencytechnology, can enhance system energy efficiency

AMD Energy Efficient ProcessorsAMD Energy Efficient Processors Delivering improved performance-per-wattDelivering improved performance-per-watt

Reducing energy costs Reducing energy costs Energy efficient AMD desktop processors provide greater Energy efficient AMD desktop processors provide greater performance-per-watt over AMD’s standard power desktop performance-per-watt over AMD’s standard power desktop processors to processors to reduce commercial and consumers’ energy billsreduce commercial and consumers’ energy bills

65W AMD Athlon™ 64 X2 dual-core processors provide up to 37%65W AMD Athlon™ 64 X2 dual-core processors provide up to 37%greater performance-per-watt than standard power (89W) processorsgreater performance-per-watt than standard power (89W) processors

35W AMD Athlon™ 64 X2 dual-core processors provide up to 154%35W AMD Athlon™ 64 X2 dual-core processors provide up to 154%greater performance-per-watt than standard power(89W) processors greater performance-per-watt than standard power(89W) processors

Enabling small form factorsEnabling small form factorsEnergy efficient AMD processors enable OEMs and the channelEnergy efficient AMD processors enable OEMs and the channeloffer small, sleek, aesthetically pleasing entertainment PCs and offer small, sleek, aesthetically pleasing entertainment PCs and commercial slim-line and blade PCscommercial slim-line and blade PCs

Consumer and enterprise demand quiet and cool PCs Consumer and enterprise demand quiet and cool PCs By using less electricity, energy efficient AMD desktop processors By using less electricity, energy efficient AMD desktop processors can lead to lower energy consumption, contributing to an improved can lead to lower energy consumption, contributing to an improved global environmentglobal environment

Can we Improve on Audio/ Can we Improve on Audio/ Video Quality? – Video Quality? – YesYes

Newer generation graphics processors Newer generation graphics processors are including higher quality TV, color are including higher quality TV, color accuracy, MPEG decoding, etc.accuracy, MPEG decoding, etc.

Full digital outputs are becoming commonFull digital outputs are becoming common

Full 1080P support is availableFull 1080P support is available

Big Challenges AheadBig Challenges Ahead

PC based solutions will always havePC based solutions will always havecost disadvantages compared to single cost disadvantages compared to single purpose CE solutionspurpose CE solutions

Single function devices will always take Single function devices will always take less effort to be more reliableless effort to be more reliable

Complete multi-function CE devices must Complete multi-function CE devices must have solutions that include many CE have solutions that include many CE devices in rack, but still be easy to usedevices in rack, but still be easy to use

Need To Offer Two SW OptionsNeed To Offer Two SW Options

Windows Vista Premium – for thoseWindows Vista Premium – for thosewho want to load their own applications, who want to load their own applications, games, etc.games, etc.

Embedded XP/Windows Vista – for those Embedded XP/Windows Vista – for those who want a more stable/externally who want a more stable/externally supported solutionsupported solution

Device updated by CE manufacturer or Device updated by CE manufacturer or service operator (cable, sat, or telco) onlyservice operator (cable, sat, or telco) only

Still leverage PC applications base, Still leverage PC applications base, commodity HW, and infrastructurecommodity HW, and infrastructure

Better Device ControlBetter Device Control

Leverage alternative remote controlsLeverage alternative remote controlsCell/cordless/VoIP phones, game panels Cell/cordless/VoIP phones, game panels

Interface to laptops or PDAs Interface to laptops or PDAs for search/control/set-upfor search/control/set-up

Better front panel controlBetter front panel controlEasily find audio music, radio, IP-radio without TVEasily find audio music, radio, IP-radio without TV

Allows users to easily select next media while Allows users to easily select next media while enjoying present content on TVenjoying present content on TV

Allow one room to control other roomsAllow one room to control other roomsControl music, lighting, security, etc., from any roomControl music, lighting, security, etc., from any room

Integrate speech as an optionIntegrate speech as an option

Embrace CE CommunityEmbrace CE Community

Leverage what many do bestLeverage what many do bestHighest quality audio/videoHighest quality audio/video

Video aisle sales channelVideo aisle sales channel

Multi-room supportMulti-room support

Subsidized device via service opportunitiesSubsidized device via service opportunities

Learn from CE successLearn from CE success

Interface to as many devices as possibleInterface to as many devices as possible

Leverage higher quality home networksLeverage higher quality home networksQOS driven (like MoCA or Powerline)QOS driven (like MoCA or Powerline)

Calls To ActionCalls To Action

Microsoft Microsoft Investigate Embedded OS with 10’ MCE/Diamond featuresInvestigate Embedded OS with 10’ MCE/Diamond features

Chipset and processor companiesChipset and processor companiesDecrease cost/power consumption while improving user Decrease cost/power consumption while improving user interface/audio/video qualityinterface/audio/video quality

CE vendors CE vendors Embrace whole home connectivity with truly open standardsEmbrace whole home connectivity with truly open standards

Service providersService providersLeverage PC environment for more personalized content/adsLeverage PC environment for more personalized content/ads

Front-end providersFront-end providersIntegrate OCUR (or equivalent) with demod into single chips Integrate OCUR (or equivalent) with demod into single chips

Motherboard vendorsMotherboard vendorsSupport full range of A/V plugs and HDCP content protectionSupport full range of A/V plugs and HDCP content protection

Home network providersHome network providersProvide true QOS for multiple A/V streams within homeProvide true QOS for multiple A/V streams within home

SummarySummary

CE based home entertainment solutions can CE based home entertainment solutions can easily be extended with middleware allowing easily be extended with middleware allowing access to PC for media and heavy-liftingaccess to PC for media and heavy-lifting

PC technology can be effectively integratedPC technology can be effectively integratedinto next generation CE box solutions, butinto next generation CE box solutions, but

Software is critical to bringing new functions Software is critical to bringing new functions and servicesand services

Audio/video quality should be as good or betterAudio/video quality should be as good or better

Ease of use and cost are critical to successEase of use and cost are critical to success

From Creation …From Creation … … … To ConsumptionTo Consumption

Create at the Create at the speed at inspirationspeed at inspiration

Smarter Digital Smarter Digital EntertainmentEntertainment