Present Status of IPTV Deployment in Japan

Masahito Kawamori,NTT

Agenda

Background IPTV service deployment by NTT Group Standardized IPTV: NTT’s Approach Conclusion

What is IPTV?

IP-based Video-centric service, usually provided by Telcos

Often coupled with other multimedia services such as text, graphics, and also with more enhanced interactive services like e-commerce

Perceived to have an infinite possibilities, and may encompass broadcasting in the future

IPTV Market

IPTV Market has grown rapidly in 2006. IPTV terminals sales increased 150% Service Provider revenues have increased

178% Many services based on Channel service

and Video-on-demand

Market Growth Projection

IPTV service deployment by NTT

Hikari TV: NTT’s New IPTV Service Services provided by Hikari TV Strategies of Hikari TV

Hikari TV: NTT’s New IPTV Service

NTT Group has launched “Hikari TV” service in March 2008.

Hikari TV: NTT’s New IPTV Service

It provides Video-on-Demand, Linear channel TV service and others on NTT Group’s FTTH networks “Flets Hikari Premium” and “B-Flets” as well as “Flets HIKARI Next”, NTT’s new Next Generation Network also started in March, 2008.

VOD service is offered by NTT Plala, an NTT subsidiary, while Channel broadcasting is provided by I-Cast

IPTV Situation in Japan before 2008

Several Operators are already starting IPTV services since 2004 and 2005.

The services vary, but mostly Video-On-Demand streaming and Channel streaming service

Few, if not no, provide Download service Most of them received by (proprietary) STB Terminals are tightly coupled with the service --

Traditional Vertical Model No standard IPTV in the market yet

IPTV in Japan in 2008

Standardized IPTV service specification TV Terminals in retail shops in addition to

proprietary STB Horizontal as well as Vertical business model High Definition Video Content with Quality of

Service Management Use of Metadata as Attractors Strong Interactivity

NTT’s IPTV Services

Contentaggregator

ServiceProvider

Carrier (Access NW)

Broadcaster (on NW)

4thMEDIA4thMEDIA

On demandTV

On demandTV

OCN TheaterOCN

TheaterHIKARI TVHIKARI TV

Plala Networks,

Inc

NTT-EastNTT-West

OnlineTV

JPC etc.

On Demand

TV

ITOCHU etc.

I-Cast, Inc

NTT-West(NTT-EAST)

NTT-Com

NTT-EastNTT-West

NEO Indexetc.

I-Cast, Inc

ITOCHU etc.

NTT-EastNTT-West

NTT Plala

Since 2008Before 2008

4th Media4th Media

Services provided by Hikari TV

Services provided by Hikari TV

Basic Service: Original Content, Shopping Channel, etc.

Basic VOD Plan “Video Zanmai” : All you can watch from 5000 VOD titles

Basic Channel TV Plan “TV O-susume”: 40 Channels with no additional cost

Value Plan (“O-neuchi”): Basic VOD Plan + Basic Channel Plan

Second subscription of any of the three plans in a household will receive 1,050 discount.

Subscriber to one of the plans can receive the same plan with the tuner-rental fee, if additional subscription with the Basic Service

Pricing

Initial Price (Basic Service): JPY 5,250 (Free until 2008/9)

Monthly Fee– Basic VOD Plan: JPY 2,625 　– Basic TV Channels Plan : JPY 2,625– Basic VOD+TV: JPY 3,675. 　– Optional Service

Karaoke : JPY 525/24 hours or JPY 1,785/Month

– Tuner Rental Fee JPY 525 /Month

Strategies of Hikari TV

Attractive Content Selection – including DTV retransmission

High Definition Video Efficient H.264 Standard-based Metadata and attractors

Attractive Content

Over 10000 VOD titles to choose from About 5000 titles already included in the “Basic VOD

Plan”, which allows one to watch any of them without any additional payment.(The largest number in the industry)

Linear Channel Service includes 40 Basic TV Channels, up to 75

Karaoke Service with more than 13000 song titles will start this summer.

IPTV Retransmission of Digital Terrestrial Broadcasting

To respond to the requests from the user, as attractive content, the retransmission over IPTV of Digital Terrestrial Broadcasting will be provided for NTT’s NGN subscribers.

The service area will start from Tokyo and Osaka, and will spread to other areas as NTT’s NGN service areas expand.

High Definition Video Quality

Efficient and high quality Video compression is achieved by ITU-T H.264, comparable to current high definition videos broadcast in MPEG-2.

High definition with H.264 is provided for Video-On-Demand and Linear Channel services as well as the retransmission of Digital Terrestrial Broadcasting

Platform on Standardized IPTV Spec

Platform is based on the specification recommended by IPTV Forum (Japan), comprising CE manufactures and service providers including NTT. This specification is expected to be used commonly for IPTV services in Japan.

This standardized IPTV service of NTT will expand not only for STBs but also for Digital TV sets in the open retail market, which will enhance the serviceability of the platform and improve the user’s benefits.

Standardized IPTV: NTT’s Approach

The Background of IPTV services Why Standards? Taking Stock of DTV IPTV Forum Japan

Popularity of Internet Access in Japan

Broadband Access in Japan

FTTH in Japan

51 million households128 million people

23

Subs. [million]

20% of households

50% of households

24

over 30 [inch]

Growth of Large Flat Panel TVs

Why Standardized IPTV?

Pros and Cons of STB approach

Pros:– More Versatility and Adaptability– More Resources and Control on Terminal– Easier differentiation

Cons– More expensive for the Service provider– More limited number– More control means more responsibility

How to Maximize the Market without losing Differentiation

Standardized IPTV as Market Driver

Standardized IPTV will create a big market not only for Content but also for various related services

Standardized IPTV will be the new platform for communication and exchange

Players in the Content Eco-system will benefit from Standardized IPTV

What would be the fast, implementable standardized IPTV that responds to the market?

Taking stock of DTV

Television sets are currently ubiquitous Many of the functionalities of IPTV can be

covered by Digital TV Mature technologies are already in place If those DTV sets are all IPTV-enabled, the

market for IPTV service will be propelled A migration of DTV to IPTV would be one

direction in which Standardization should go

Standardized IPTV Terminals

Standardized IPTV will be as ubiquitous as present-day telephones and FAX machines

A wide range of selection and variety of terminals will be in the market just like telephones

Consumers can choose as they want; Differentiation is promoted

Low-priced standard terminal would be good for the wide acceptance of IPTV services

Example of Standardized IPTV (1)

Example of Standardized IPTV (2)

IPTV Forum Japan

MICNext generation broadband Contents distribution forum

IPTV Forum

IP Multicast WG On demand WG PC distribution WG

Steering committee

Contents Development OfficeMinistry of Internal Affairs and Communications

32・ Multicast service・ Re-transmission service

・ VoD・ Download service

observer

With the guidance of MIC, Consumer Electronics Venders, Telcos, and Broadcasters in Japan formed a forum for standardizing IPTV

Call for Unified IPTV Standard

Carriers are expecting “Unified IPTV Service Specification” would accelerate IPTV market development

– TV equipped with IPTV functionality sold in retail market is a key accelerator

• Government is now enforcing to develop this unified IPTV specifications being able to cover terrestrial retransmission

– IPSP, IP Service Platform for IPTV over Smart pipe, managed network Re-transmission will be integrated

– acTVila for IPTV over Dumb pipe, unmanaged network

Hikari TV Portal

An IPTV Implementation based on DTV functions

Communication process

BML browser

Dem

ax

Video decoder

Decrypter

Storage Device

UD

PT

CP

RT

SP

RT

P/F

EC

IGM

P/M

LDIP

HT

TP

/TLS

Ph

ysica

l Data

link

VOD player

EPG

ECG

Presentation process

Remote control

Select program process

Communication I/F

Audio output I/F

Remote control I/F

Descrumbler

CAS cardT

TS

decoder

Video output I/F

Audio decoder

Caption decoder

Conclusion

NTT has started a new IPTV service, Hikari TV, in 2008The growing popularity of Broadband and FTTH services provide a mature environment for IPTV services in Japan. Hikari TV basic strategies:

Standards-based platformhigh definition, high quality contentVersatile and attractive content

Standardized IPTV is an important step for a wide acceptance of IPTV.

Thank you!!