BNS The New Battleground For Iptv1

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True Convergence: The New Battleground for IPTV

June 2009

Anke Gill, VP of Marketing


IPTV – Continuing StrongGrowth

• Despite the worldwide economic crisis, subscribers to grow at an CAGR of 29% to 47 million subscribers globally by the end of 2011. (ABI)

– Expected revenues 2008:$4.5 billion and 2012:$19 billion

• Main growth markets: Western Europe, USA, China & other Asian Markets – Currently, 7 out of 17 Western European countries

account for 94% of all IPTV customers


IPTV Demographics in Asia

Market IPTV/Video subs/ 000 Market

Ann. change in IPTV/Video subs/ 000

China 2,450 China 1,638

South Korea 2,113 South Korea 803

Japan 1,561 Japan 586

Hong Kong 772 Taiwan 282

Taiwan 709 Hong Kong 74

India 107 India 49

Singapore 58 Singapore 31

Thailand 15 Thailand 9

Source: Pyramid Research / Light Reading, 2009.

Asia Top 10 Markets for IPTV, 2008

• ABI expects APAC to continue leading subscription growth, delivering a 37% CAGR over the next three years.

• The uptake of IPTV in China is set to accelerate dramatically during the next four years following the reshuffle of the country's carriers.


The Age of Convergence

• Emergence of video as almost ubiquitous entertainment medium

• Appliances that further blur the lines between the TV and Internet

• Hardware alone is no longer enough: applications and services and their convergence across platforms will rule


Convergence: Consumers want it

Source: Ovum


The biggest Issues for IPTV

• Majority still Pay TV replica services• Defensive business model: churn preventer

rather than ARPU generator• Not using two way technology capability for

interactivity• Not maximising network utilisation

IPTV needs to move to the 2.0 stage … and beyond


The Leap Ahead with IPTV 2.0

A fully converged environment

• goes further than audience interacting with different applications on the TV screens

• delivers crucial measurable metrics and enables marketer to interact with target audiences for enhanced advertising models and accountability

• converges video related services such as VOD, P2P video, video conferencing, games and application sharing, video security services etc


Evolution of Interactive IPTV Service


Example1 : South Korea

• Networks, solutions and contents related to the Korean IPTV now an export driver

– The Korean IPTV consortium and a related consortium in Peru have signedcontract for the “development of human resources using IPTV”

• All three IPTV operators (KT, LG Dacom, SK Telecom) offer distinctive education programs for young children, from kindergarten to elementary school levels

– Play content at different speeds for pronounciation exercises

– Interactivity to solve problems, check correct answers and discuss with teachers through the television screen live.

– Chat with friends while watching TV

– Look up additional information on actors and performances while watching programs on a different picture window.


Example2 : PCCW Hong Kong• Video-On-Demand

• Online Shopping

• Gaming

• Online Banking

• Interactive Advertising

• Stock Quotes

• TV Betting

• Split Screen Gaming

• Weather

• Online Ticketing

• Traffic and Instant Polling


IPTV 3.0 Example: Platform and Content convergence

Online service and entertainment system that marries the familiarity of printed catalogues with the information-rich online world

• Comprises a pen-like device which connects to the IPTV STB for seamless connectivity between printed catalogues and online information

• The pen reads invisible dot-code printing and triggers information on the TV screen

• Applications: online shopping, food ordering, Karaoke, education, VoD selection…


In Summary

• Convergence of platforms, applications and content becomes more entrenched in peoples’ expectations

• IPTV operators need to think aheadwith innovative services to stay competitive and generate new revenue streams

• Transform IPTV service from a ‘dumb’ Pay TV platform into smart interactive entertainment and communications that converges all aspects of consumers’ life


About BNS

• Long-standing and proven experience with telco-grade IP- entertainment, automation and AV systems– Telco and Hospitality focus

• Extensive content expertise• Open platform philosophy guarantees

future proofing of technology• Understanding the needs and expectations

of the “i-Pod generation” (access anywhere, over any device)


• Blue Chip Client Base• Regional Focus

Regional office

Customer deployments


The BNS Products and Solutions Portfolio

(BNS Touch)

(BNS Touch)


Globally Renowned PartnersEncoder

VideoServer

CA/DRM

M/W

NetworkEquip.

Codec

STB

Others


29/F, Siu On Centre188 Lockhart RoadWanchai, Hong KongPh: +852 2180 9918Fax: +852 2180 9919www.bnsltd.com

Thank You

Technology

BNS The New Battleground For Iptv1