Adding COOL to our Video Services in the world of Over-the-Top April, 2011

1. Adding COOL to our Video Services in the world of Over-the-Top April, 2011

2. Next Generation Of video consumption TV EVERYWHERE REMOTE USER INTERFACE IP SIMULCAST GATEWAY EBIF APPLICATIONS Over-the-Top Video

3. Content-on-Demand • We all know the viewing habits and consumption of entertainment & information is changing quickly for the young, middle-age, and even some older consumers. • Faster Broadband as an enabler • The quality of video streaming over the Internet • Open standards are driving rapid development • Over-the-top video (OTT) providers • Content providers • IPTV hardware connecting OTT content to televisions • Content is King • Broadband is now more than ever a NEED-TO-HAVE service • The i-Pad is a game changer….The Daily from News Corp.

4. Content-on-Demand • The Three Screens • TV Everywhere • Any content, on Any screen, Anywhere • Authentication to access certain content • Multi-Video Service Provider without owning a network infrastructure • If Content is King then Advertising is the Queen • Content Creators • Content Aggregators • Content Distributers • Customer purchase decision – Both-And NOT Either-Or

5. Content-on-Demand • Streaming multimedia over unmanaged networks like the Internet • Adaptive Rate Encoding – HTTP Live Streaming (HLS) • Benefits of HTTP for streaming video • Video-on-Demand transition to Content-on-Demand • Akamai and Google Cache • Pushing content closer to the consumer

6. The Opportunities for Cable Operators • Opportunities for cable operators in the IPTV streaming business. • Cable Operators App for iPhone, iPad, Droid, or PC. • Streaming to i-Pad and SmartPhones • Quick entry options for TV Everywhere • Small Capital Investment before revenue stream becomes clearer • Transition to in-house back office systems as revenue streams are proven

7. The Opportunities for Cable Operators The need for a new CPE • Legacy Motorola Conditional Access Platform and IPTV • Old proprietary Set-Top platform limitations to next generator of IPTV delivery • Application development • Arcadia testing • How we squeeze more out of legacy Set-Tops (more on EBIF in a bit) • The IP SIMULCAST HOME GATEWAY • Standards work underway at CableLabs • Ethernet distribution within the home • New Program Guide • What SIMULCAST means

8. The Opportunities for Cable Operators A new way to delivery IPTV over existing HFC/FTTH Networks • Next Generation delivery of MPEG video over DOCSIS • IP streaming from Headend to IP Simulcast Gateway • Headend requirements • Next Generation CMTS bypass architecture • The IP Simulcast Gateway functionality • DOCSIS 3.0 Cable Modem for Zoom • e-MTA for Armstrong Telephone • IP Gateway for Zoom Share • Receive legacy video QAMs using CableCard for decryption • Receive next generation of DOCSIS QAMs • Whole Home DVR • Security system, camera, and home automation interfaces

9. The Opportunities for Cable Operators A new way to delivery IPTV over existing HFC/FTTH Networks • IP Simulcast Gateway will enable a new era of revenue-generating services. • Targeted advertizing and search revenue • Video commercials, banner ads, and other forms of highly targeted advertizing • Ad Insertion at the home • Switched Mutlicast and requesting streams…learning viewing habits for marketing • Vendors in this space • CableLabs standards development

10. Life Still left in Legacy Set-Top boxes • Whole-Home DVR • Internet Widgets • Even with legacy Set-Top box limitations, they can’t be ignored since we have multi-millions of dollars invested in them • Embedded Binary Information Format (EBIF) • The Remote User Interface • i-Pad could go down in history as a tipping point for video viewing • EBIF applications for existing Set-Tops • Existing Set-Top box limitations (DCT 2000s)

11. Remote User Interface on an i-Pad for Legacy Set-Tops and Home Gateway Enhanced Program Information

12. Examples of the Remote User Interface on an i-Pad Watch a movie trailer Quickly Access the Internet Movie Database Site http://www.imdb.com/interfaces Read Interesting Trivia • iPad To IP Remote Web Server • Simple API over Web Services interface • Fetch Catalog (get guide information) • Select Channel • Channel Up • Channel Down • Get Device Status (get current channel, etc.) • Device Status Notification • Channel Change Notification

13. Examples of the EBIF Applications available for Legacy Set-Tops • Personalized applications that offer compelling and diverse content to your subscribers. • Eleven news categories, local weather and weather from any zip code in the US, a personal stock portfolio and business news and much more…

14. Examples of the EBIF Applications available for Legacy Set-Tops • Personal stock portfolio with any stock from any US exchange. • Personalized Stock Portfolio allowing users to track any stock from any North American exchange. Business headlines and major indices updated throughout the day. • For Operators: • Sticky application with default settings for local companies. • For Media Sales: • Affluent, self selecting audience is perfect target for finance and stock trading companies. • For Programming: • Highly competitive business news category. Opportunity to cross platform with established portfolios and brands. • Usage Profile: • Low Impact, good repeat usage among portfolio owners.

15. Examples of the EBIF Applications available for Legacy Set-Tops • A new advertising ecosystem for the cable industry. • Seeding mechanism for new ad inventory of thousands of categories, new advertiser base (8,000 in San Juan, PR), and context for valuable VOD verticals. • For Operators: • Positions the operator as the source of local search on TV. • For Media Sales: • Migration of hundreds of new advertisers to the platform. Up sell of VOD product yr 2. • Wealth of features: click to call, RFI, Buy Button, telescoping, etc. • For Programming: • Non-traditional partnership with print or online publishers migrate their advertising base for share of revenue. • Usage Profile: • Low impact. 85% of those who use YP buy a product.

16. Examples of the EBIF Applications available for Legacy Set-Tops • Search, bid, buy. Synchronized ebay accounts across all platforms. • Search, bid, be alerted when auction or watch list changes, regardless of what you’re watching on TV. • For Operators: • Widget that allows MSO to partner with company having world wide name brand recognition. • For Media Sales: • Targeted advertising opportunity to place ad in front of consumer shopping for such a product. Opportunity for VOD telescoping to products or merchants. • For Programming: • Potential product placement connections. • Usage Profile: • Low impact. Consistent use of alerts.

17. Examples of the EBIF Applications available for Legacy Set-Tops • Fantasy sports trackers for football, baseball and basketball. • Real-time player level data with personalized rosters, games, teams, leader boards, stat lines for Football , Baseball, and Basketball Tracker are set with local or regional teams as defaults. • For Operators: • The stickiest application for avid sports fans. Competitive offerings already in market. • For Media Sales: • Ownership of fantasy sports trackers is a unique opportunity and valuable position. Consumer product companies, fantasy sports companies, auto, beverage, etc. • For Programming: • Obvious partner opportunities for unbound and bound applications. Some already in marketplace. • Usage profile: • High usage, up to 45% of market, using up to 19 minutes per session.

18. Examples of the EBIF Applications available for Legacy Set-Tops • Custom widget for high school, college and pro sports teams. • Create team widgets for advanced coverage of local teams, including high school, college and professional teams. • For Operators: • More local than anything satellite can deliver. • For Media Sales: • Opportunity for sponsors to tie themselves to local and national sports loyalties. • For Programming: • Unique opportunities at a local level to take advantage of community loyalty. • Usage Profile: • Consistent and high. Greater usage with localization, particularly local universities.

19. Examples of the EBIF Applications available for Legacy Set-Tops • A suite of customer services allowing subscribers to review, pay bill and upgrade service • Customers can review bills, make payments and add instant upgrades to their accounts. • Available Q1, 2011, with instant upgrade available Q3, 2011.

20. The Opportunities for Cable Operators A new way to delivery IPTV over existing HFC/FTTH Networks • Bandwidth Reclamation mustoccur first • This means reducing the number of linear video QAMs or analog television channels inserted at the Headend • There are three primary methods of Bandwidth Reclamation on an HFC network. • Switched Digital Video • Digital Transport Adaptors (DTAs to allow turning off analog) • Amplifier upgrade to 1GHz that would add 250MHz (in 750MHz systems) or 130MHz (in 860MHz systems) • Switched Digital is the least capital intensive • Switched Digital Video (SDV) makes lesser-viewed content available to an EdgeQAM to be added to a downstream only transmitted into a Set-Top Service Group when at least one tuner is set to that channel. • SDV has been deployed for several years, especially by Time Warner Cable. Experience shows that while SDV required eight to twelve QAMs, it saves another eight to twelve QAMs. These QAMs would be used for next-generation DOCSIS.

21. Broadband Internet Access • While DOCSIS 3.0 is no longer a new technology with its widespread deployment, higher Broadband speeds have help contribute, but not entirely, to a HUGE growth in consumption. In this form consumption can be though of more frequency to constant use of the Internet. • A larger Broadband pipe to the home and elsewhere in the network is allowing simultaneous applications to be run with excellent performance. This means you can surf the Web, download music, upload pictures, send huge emails, and WATCH TELEVISION all at the same time. • Consumption Highlights • Average individual consumption has grown about 400% since the beginning of 2004 (range varies from 250% to 525% across operators) • Depends on system: Demographics, operations management and network management are all factors • Composition analysis indicates big shift to real time entertainment • Major shift in individual symmetry to more downstream-centric behavior observed in all North American markets • Big shift to real-time entertainment

22. Broadband Internet Access Update Downstream Consumption Total Consumption

23. Broadband Internet Access Update Monthly Consumption Rates Upstream Consumption

24. Broadband Internet Access Update • Broadband Traffic Composition Trends • Traffic Class UpstreamDownstream • Real-time Entertainment 16.3% 45.7% • Web Surfing 11.0% 24.3% • P2P File Sharing 53.3% 13.2% • Real-time Communications 5.5% Not Available • Social Networking Not Available 2.4% • Gaming Not Available 2.4% • Average taken across North American Cable, DSL, and FTTH operators • Real-time entertainment clearly dominates the downstream on North American Broadband Networks. • During peak 21% of all downstream traffic is Netflix • P2P is still the major upstream traffic component

25. Broadband Internet Access Update North American Downstream Traffic Profile

26. Broadband Internet Access Update Top 10 Applications at Peak Times RankUpstream Application %of TrafficDownstream Application% of Traffic 1 BitTorrent 34.31 HTTP 22.7 2 HTTP 12.36 Netflix 20.61 3 Gnutella 11.18 YouTube 9.85 4 Netflix 4.34 BitTorrent 8.39 5 Skype 3.28 Flash Video 6.14 6 SSL 2.99 RTMP 6.13 7 YouTube 2.47 iTunes 2.58 8 MGCP 2.46 Facebook 2.44 9 PPStream 2.41 Gnutella 2.12 10 Facebook 2.28 Xbox Live 1.61 Total 78.08 Total 82.57

27. Broadband Internet Access Update • How Netflix Can Affect Consumption • Assume an average download rate range of 1 Mbps (Netflix SD) to • 4 Mbps (Netflix HD) • Downstream usage of 100 hours in a month creates a load of 45 GB/mo to • 180 GB/mo • Assuming an application symmetry of 45:1, this implies an upstream load of • 1 GB/mo to 4 GB/mo • Total incremental consumption contribution of 46 GB/mo to 184 GB/mo

28. Conclusions & Critical Thinking • There appears to be a transformation by consumers with watching television • Tipping Point doesn’t appear to have occurred yet • Watching television on multiple screens is happening because of the ease and convenience. Viewing content on a HD Television continues to be choice. • Over-the-Top video to the television is now simple to install and navigate • TV Everywhere for viewing Anytime, Anywhere, on any Screen fits into our portfolio quite nicely • Forward-thinking MSOs like can make the transition to a solution coming into focus. The end-game is still being defined. • Video delivery will make the transition to IP over HFC/DOCSIS Networks • Next Generation of CPE platform will enable new revenue streams through advanced advertising and new in-home services such as security, monitoring, and home automation • Legacy installed base of Set-Top box investment secure for many applications using EBIF and Remote User Interface on I-Pads, Tablets, and SmartPhones