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DVAC SCTE Meeting February 14, 2008

DVAC SCTE Meeting February 14, 2008. Harry Emmerich Staff Network and Applications Engineer. Agenda. SDV Drivers / Competitive Landscape Cherry Hill Viewership Analysis TWC Architecture overview – comparison with NGOD. Why Switched Digital Video?. Powerful bandwidth management tool

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DVAC SCTE Meeting February 14, 2008

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  1. DVAC SCTE MeetingFebruary 14, 2008 Harry Emmerich Staff Network and Applications Engineer

  2. Agenda • SDV Drivers / Competitive Landscape • Cherry Hill Viewership Analysis • TWC Architecture overview – comparison with NGOD

  3. Why Switched Digital Video? • Powerful bandwidth management tool Decouples bandwidth from offered content • Works on existing MPEG-based set-tops Fully supported on existing S-A set-tops • Enables new programming offerings Premium, ethnic tiers – enables “the long tail” • Transparent to consumers More choice - no change in viewing experience • Improves visibility to consumer demand Provides detailed viewership data Can be used to enhance targeted advertising • A key component of Next Generation Networks

  4. HDTV is Penetrating the Mainstream Market 1. Increased attractiveness of HDTV sets • Price (ASP) declines • Functionality increases (image quality, size, form factors, connectivity, etc) • Popularity 2. Increased availability of HDTV content • Produced content (lifetime value protection) • Competitive advantage for Networks (ESPN, HBO, ABC, etc) • Competitive advantage for Service Providers (DBS satellite capacity expansion, cable expansion in # of channels) Mass adoption of HDTV is in full force as early adoption ends.

  5. Competition facing the MSO industry….. "This is DIRECTV's break-out year for HD," said Chase Carey, president and CEO, DIRECTV, Inc. "The launch of our two new satellites will complete the largest capacity expansion in DIRECTV history, and no other video service will be able to match the sheer volume and quality of our HD programming. With HD adoption now reaching critical mass in the U.S., and 40 million homes projected to have HD-capable TV's this year, DIRECTV will be uniquely positioned as the best choice for HD programming.“ With the launch of DIRECTV 10 and DIRECTV 11 satellites in 2007, DIRECTV will have the ability to deliver more than 1,500 local HD and digital channels and 150 national HD channels, in addition to new advanced programming services for customers. DIRECTV currently offers standard-definition local channels in 142 markets, covering nearly 94 percent of television households in the country, as well as local HD broadcast channels in 49 cities, representing more than 65 percent of U.S. TV households.

  6. Niche experience: Dish Networks offers extensive international programming Farsi French Chinese Armenian Arabic African 3 channels - $32.99/mo. 3A Telesud - $14.99/mo. ABN America - $14.99/mo. Armenia TV - $14.99/mo. 17 channels - $29.99/mo. 15 channels - $39.99/mo. Al Jazeera Kuwait TV Italian Japanese Korean Israeli Greek German 4 channels - $36.99/mo. TV Japan - $25.00/mo. 2 channels - $12.99/mo. 1 channel - $14.99/mo. 6 channels - $36.99/mo. Israeli Network - $19.99/mo. Urdu Tagalog South Asian Portuguese Russian Polish 3 channels - $34.99/mo. 4 channels - $38.99/mo. TV Globo - $19.99/mo. 2 channels - $24.99/mo. 1 channel - $14.99/mo. 6 channels - $49.99/mo. The high price of these offerings demonstrates the value to niche consumers.

  7. HD Additions 2008 2009 2007 17 19 27

  8. Agenda • SDV Drivers / Competitive Landscape • Cherry Hill Viewership Analysis • TWC Architecture overview – comparison with NGOD

  9. Objectives of Analysis • Objective Evaluate viewership dynamics Develop a sizing model for SDV systems Number of streams (QAMs) required vs. SG size and channels switched Demonstrate potential programming gain provided by SDV • Approach Collect and reduce viewership data collected by Retriever Create a range of “virtual service group” sizes over which to generate results Rank channels based on cumulative viewership seconds. Analyze each virtual Service Group over time to estimate peak SDV stream usage Fit a curve to the data using curvilinear regression and generate prediction intervals.

  10. Global Cumulative Viewership Minutes (demonstrating the long tail) (5 HD) (2 HD) (8 HD) (4 HD)

  11. Usage Over Multiple Hubs Cherry Hill East (CE), Cherry Hill West (CW), Medford (MF), and Pennsauken (PN) December 2nd – 8th

  12. Usage Over Time – Cherry Hill East HubVirtual Service Group CE-5 (687 DHCTs) Peak for All (247) Channels is 132 Peak for 80% (198) Channels is 85 Peak for 60% (149) Channels is 46

  13. Cherry Hill East Hub – Peak Unique StreamsUsing a Global Channel Ranking Peak for All (247) Channels at V.S.G. CE-5 is 132 Peak for 80% (198) Channels at V.S.G. CE-5 is 85 Peak for 60% (149) Channels at V.S.G. CE-5 is 46

  14. Cherry Hill East Hub – Peak Unique StreamsUsing a Local Channel Ranking Notice, the Orange Data (representing All Channels) did not change & All other Data, on the whole, shifted down slightly, but with no LARGE change

  15. Summary of Peak Unique Streams for V.S.G. CE-5

  16. Summary of Sample Peak Unique Streams

  17. Usage Over Cherry Hill East Hub (CE) over multiple weeks December 2nd – 8th December 23rd – 30th December 31st – January 6th January 7th – 13th January 14th – 20th

  18. Usage Over Time – Virtual S.G. CE-512/2/06 – 12/8/06

  19. Usage Over Time – Virtual S.G. CE-512/23/06 – 12/30/06

  20. Usage Over Time – Virtual S.G. CE-512/31/06 – 1/6/07

  21. Usage Over Time – Virtual S.G. CE-51/7/07 – 1/13/07

  22. Usage Over Time – Virtual S.G. CE-51/14/07 – 1/20/07

  23. Summary of Peak Unique Streams for V.S.G. CE-5 Over Time

  24. 180 160 140 120 100 Number of Unique Streams 80 60 40 20 0 0 200 400 600 800 1000 1200 1400 1600 Bottom 20% Bottom 40% Bottom 60% Bottom 80% All Peak Streaming vs. SG Size Peak Streams at 99.99% - Cherry Hill Hub 8 Dec 15.2006 - Jan 9, 2007 4 QAMs SG Size (Tuners) Max Observed

  25. Agenda • SDV Drivers / Competitive Landscape • Cherry Hill Viewership Analysis • TWC Architecture overview – comparison with NGOD

  26. TWC Phase II SDV Characteristics • Next-Generation TWC Switched Digital Video Solution • Replaces proprietary Phase I solutions • Re-architected to provide: Open, standards-based solution Scalability Interchangeable components Innovation by vendors Support for standard IP networks QAM sharing • System Components communicate via standard, open interfaces • Phase II Requires Adherence to Five Key Interface Definitions SSP-SIS – Session Setup Protocol for Server Interactive Sessions CC-MIS – Channel Change Message Interface Specification MC-MIS - Mini Carousel Message Interface Specification SDV Server - Edge Device Interface Definition DNCS – Edge Device Interface Definition

  27. Phase II: Open IP Architecture for Switched Digital Video All interfaces are open and published Separates server from switch SDV Manager Management & Provisioning Control IP Network HFC Network Master SRM QPSK Out-of-Band Channel Server Interactive Session Request Channel Change Message Enables QAM Sharing SDV Server Bulk Encryptor Shell Session Setup VOD Pump Encrypted Multicast Video Mini Carousel Settop with SDV Client Session Binding Video Content IP Network In-Band Channel Staging Processor Video Sources IGMP Join Content Sources Edge QAM Groomed Video Open Interface Specification • Based on IP Multicast • Separates switch from QAM Management Video Content

  28. “Movie” SDV ch8 (HD) 12 Phase II SDV / VOD Session Setup Messages SDV Manager SDV Manager -4) Provision SDV Servers SDV Server -5) DNCS sends SourceIDs, multicast addresses, bit rates to SDV Manager 0) Channel change to SDV ch8 (HD) -3) Give me 36x 625kb/s sessions DNCS w/ App-Independent Session and Resource Manager (SRM) DNCS 4.2 Master SRM ServerInteractiveSessRequest/response -1) Take sessionIDs 1-36 on GQAM X 2) Tune to GQAM X 2) Mini Carousel 1) Use sessID 12 for HD-SDV ch8 incl: actual bit rate and multicast addresses 1) Buy VOD “Movie” -5) set up multicast CF sessions on Netcrypt 3) Send VOD “Movie” to GQAM X -2) Reserve sessionIDs 1-36 “shell sessions” for SDV 4) SDV ch8 Netcrypt 2) Reserve 37 for VOD VOD Pump 6) “Movie” 4) “Movie” 5) “Movie” 37 CMC Staging Processor 2) Join multicast for SDV ch8 DCM Staging Processor 3) SDV ch8 (HD) -6) set up CBR SPTS IP unicasts to Netcrypt GQAM “Easy 80” Headend Hub

  29. Switched Digital Video Reference Architecture HFC Plant Primary Hub / Hub S6 Interface with VOD System for QAM Sharing L W N L W N CMC Infrastructure CCP/MCP New Infrastructure Changed Infrastructure S6 SDV Client (SARA or Aspen) SDV Session Manager Edge Resource Manager CMC / Headend / Primary Hub R6/D6 QAM SD Re-encoder QAM Multicast Or Unicast Broadcast Source IP Network Encryptor CBR/SPTS … Node HD Re-encoder QAM QAM Controller Source: Phil Gabler - Comcast

  30. Example SDV Implementation – SA N W L N W L S6 Existing Infrastructure CCP/MCP New Infrastructure S6 Changed Infrastructure SARA/AspenSDV Client SDV Session Manager Edge Resource Manager S-A/CiscoUSRM R6/D6 Harmonic Scientific-Atlanta NetCrypt QAM SD Re-encoder Bulk Encryptor QAM Multicast Or Unicast Broadcast Source IP Network … CBR/SPTS Node QAM HD Re-encoder QAM Harmonic NSG9000orArris D5 Showcase will use XDQA-24then BG1 (Most likely not needed) Controller Scientific-Atlanta DNCS (DNCS 2.7.1 or 4.3) Source: Phil Gabler - Comcast

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