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Overcoming IPTV Challenges. Opportunities and Advantages Create Momentum To Overcome Adversity. Ken Lowe VP Strategic Marketing Sigma Designs, Inc. US Video Market Potential. US Households & Subscribers US Households: 116M TV Households: 112M PayTV Subscribers: 97M .
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Overcoming IPTV Challenges Opportunities and Advantages Create Momentum To Overcome Adversity Ken LoweVP Strategic MarketingSigma Designs, Inc.
US Video Market Potential US Households & Subscribers • US Households: 116M • TV Households: 112M • PayTV Subscribers: 97M Income & Expenditures • Median HH Income: $ 48.2K • H/H Income >$100K: 19.2% • Avg PayTV Cost: $60/mo * Data based on 2006/2007 census and estimates
TV Service Operator Mix Key Trends • Emergence/growth of telco (IPTV) services • Emergence/growth of triple-play services
High Definition Wider Media Choices Whole Home DVR Major Feature Trends Trends Portend a Paradigm Shift
High Definition • Enables expanded quality and capability • Large screens with life-like image quality • Multi-channel viewing, mosaic browsing, web portals • Requires 5X more bandwidth per channel Broadcast Forces a tradeoff of HD or quality against the number of channels IPTV Enables an unlimited number of channels for the bandwidth of one.
Whole Home DVR • Matches program choices to viewer time windows • Currently a US market phenomenon • Requires multiple simultaneous channels Broadcast Requires one tuner per simultaneous channel recorded (or viewed). IPTV Can record as many channels as bandwidth allows.
Wider Media Choices • Video-On-Demand (VOD) – expanding home theatre concept with premium content. • Over-the-top-Internet (ala YouTube) – expanding the Internet TV concept. • Home Media Center (photos, music, video) – expanding TV as an access portal concept. Broadcast Requires second mechanism with IP like capabilities. IPTV Unifies access and display of all media types.
Client Software Host CPU High Definition Television Input & Security Control Video Decoding (H.264, VC-1, MPEG) Graphics Acceleration Audio Decoding Display Output Control Hard Disk IO Ports Memory CPE Evolution Media Processor SoC Modems & Tuners
Phone Network Broadcast System IP Network • Voice Delivery • Low Speed • 2-way • Data/Packet Delivery • High Speed • 2-way • Video Delivery • High Speed • 1-way Telco Terrestrial Cable Satellite Network Evolution
Broadcast Advantages/Issues • Bandwidth: currently sufficient for well over 100 channels with some SD and HD mix • Infrastructure: currently passes > 100M homes • Incumbancy: widespread usage & comfort • Cable Issues: • Gracefully addressing trends (HD, DVR, Media Types) • Movement to DOCSIS 3.0 and Tru2way – new infrastructure • Satellite Issues: • One-way medium … uncertain solutions for new media types and no opportunity for triple play offerings.
IPTV Advantages • Channel Selection: • Enables unlimited number of channels • No trade-off with HD or QoS • Simultaneous Channel Access w/o Cost: • Enables multiple channel viewing • Enables near limitless DVR recording • IP Protocol Advantages: • Instantaneous channel changing (tiered servers) • Enables all-IP services integration
IPTV Challenges • Telco bandwidth expansion • Need 5-8 Mbps per TV per room serviced for HD • Telco coverage … more homes passed • AT&T now … Verizon poised …others needed • Large continuing infrastructure investments • Cable adoption … broadcast to IP transition • Movement to DOCSIS 3.0 enables/accelerates IPTV • Increased investment (>$13B/yr currently) • Innovative service offerings – multiview, etc. • Consumer education and demand development
Conclusions • Video Service is a Large Revenue Opportunity but Triple-play Service Will Be Larger • IPTV Offers Many Advantages and the IP Network Phase is Just Beginning • IPTV Will Eventually Become The Dominant TV Delivery Method … Shared By Telco and Cable
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