Mobile Video: Dollars

1
Mobile Video Dollars Sense

• Alain Fernando-Santana
• Chief Marketing Officer

2
Envivio Snapshot

• Leading provider of MPEG-4 based IP video
  technology powering new video services over any
  number of devices and networks from mobile
  phones to High Definition televisions and from 3G
  to xDSL
• Originated as a RD division of France Telecom in
  1996 then established as a private company in
  2000
• Worldwide Presence
• Headquartered in South San Francisco, California
• Research Development in Rennes, France
• Sales Offices in New York, London, Beijing and
  Tokyo
• Experts in MPEG-4 technology
• Pioneering contributor to the MPEG-4 standard
• 3 ISO MPEG-4 group leaders and committee chairs
• 11 patent licenses 5 additional patents pending
• 150 customers worldwide

3
Agenda

• Market Dynamics
• Technological Options
• MoTV Deployment - MBCo
• Market Growth Projections Business Models

4
Market Dynamics

• In the beginning Service Providers grazed on
  their own patch of land
• Video was provided by a cable operator
• Telephony was provided by a telephone company
  fixed line or mobile
• Data was provided by an ISP
• Video Content was produced professionally
• Telephony content was produced on the spur of
  the moment
• Then a new player showed up Satellite TV and
  the broadband wars began
• Cable operators lost market share quickly and
  began looking at their neighbors patch of land
  (350M Cable subs and 100M satellite subs ww)
• Cable operators began offering Data then they
  offered telephony using VoIP
• In parallel the Telcos started offering Data and
  then TelcoTV
• Wifi data and telephony and FTTH also entered the
  scene entirely new service providers
• Convergence, Triple play, Multi-play is
  everywhere all service providers are affected
  all are concerned

5
Market Dynamics

• A new generation of mobile handsets has reached
  the market and the mobile operators have joined
  the war!
• Mobile operators added data services
• Mobile operators are now adding VIDEO
• The future of Telephony is spelled T E L E V I S
  I O N while the future of TELEVISION is spelled
  TELEVISION better, smarter and more ubiquitous
  
• There are approximately 2.5B mobile subscribers
  worldwide some may want to watch TV

6
The Video Ecosystem
Affiliate
DVB-S
Production Studio
DVB-C
DVB-T
Satellite
Aggregator
Broadcaster
MSO
FTTH / BPL
DTV
Outside Broadcast
WiFi / WiMax
Hospitality
Enterprise
Utility
ADSL 2/ VDSL
Metro
3GPP / DVB-H
Mobile
Telco
Multi-Dwelling Unit
Government
Mobile
Education
Residential
7
Digital Video - Many Terminal and Network Choices
Source Irdeto
8
Mobile TV Resolutions

• Data rates and resolutions depends on terminal
  and network type
• Cellphone
• QCIF QVGA 30-356 kbps
• GPRS, 2G, 2.5G
• - India below 30
• PDA/Smart phone
• CIF VGA 256-768 kbps
• 3G, DMB-T,DVB-h
• Automotive / Portable / Home
• VGA - D1 768kbps - 1 Mbps
• Wimax, HSDPA

9
Mobile Video Technologies

• 3GPP
• Good early adoption
• 40 of French Orange 3G customers took up
  service watching an average of 25 min.
• Application is one to one
• DVB-H (Digital Video Broadcast Handheld)
• Extension of DVB-T widely used in Broadcast
• Robust / 5Mbits/s payload
• Application is one to many
• Features High Data Rate / Good Quality Service
  Spectrum Issues
• Issue When will the spectrum be made available
• DAB / DMB (Digital Multimedia Broadcasting)
• Extension of Digital Audio Broadcast Standard
  with additional forward error correction
• Pilot trials in Korea and UK
• Application is one to many
• Lower Data Rate than DVB-H

10
Mobile Video Technologies

• ISDB-T (integrated Services Digital Broadcasting-
  Terrestrial)
• Part of a much wider Satellite and Terrestrial
  Broadcast system
• Japanese Government endorsed Spectrum already
  allocated, free- to-air service
• Phones have same common browser to simplify
  access
• Application is one to many
• Features Good quality service / optimized for
  mobile
• MediaFlo
• Proprietary system developed by Qualcomm using
  similar approach to DVB-H
• Offered as a complete Mobile TV solution,
  including billing and DRM
• Application is one to many
• Features Good Quality Service/ Optimized for
  Mobile

11
DVB-H Trials and Deployments - 2005

• Finland, Helsinki
• YLE, Digita, Telia-Sonera, MTV3, Nelonen, Elisa
• UK, Oxford
• Arqiva, mmO2
• Australia, Sydney
• The Bridge Networks, Telstra
• Netherlands, The Hague
• DigiTenne, Nozema Services, KPN
• USA, Pittsburgh
• Crown Castle
• Germany, Berlin
• Bmco, Phillips, Universal Studios, Vodafone

• Spain, Madrid Barcelona
• Abertis Telecom, Telefonica Moviles
• South Africa
• MultiChoice
• Taiwan
• CMC
• Malaysia
• MiTV, Astro, Maxis
• France
• SFR, Canal
• Switzerland
• Swisscom

12
MPEG-4 Video in Mobile

• MPEG-4 Video well positioned
• Selected by all mobile systems
• Audio
• AAC, HE AAC BSAC
• Provides Interactive Technologies
• Recognized as key shortcoming of Satellite and
  Terrestrial Mobile services
• Users want a TV Red Button
• Intuitive User Interfaces

13
MBCo (Mobile Broadcasting Corporation)

• Worlds first satellite digital broadcasting
  service (S-band, 2.6 GHz band)
• Obtained license for mobile multimedia
  broadcasting service in July 2003
• Launched Video / Audio service in 2004
• Under brand MobaHO!
• Subscribers can view and listen to multimedia
  content using only 25 MHz of bandwidth
• 20 video channels including news, sports and
  entertainment
• 30 audio channels, including overseas FM radio
  and genre-specific music
• 10,000 users
• All H.264

14
Mbco (Mobile Broadcasting Corporation)

• Early Stage deployment required custom terminal
  (Sharp) without telephony are transitioning to
  Mobile handsets (Mitsubishi Music Porter X)

15
Market Growth Projections
Global Mobile Video Subscribers

• Mobile Operators Looking to Increase Revenues and
  Decrease Churn
• Solidifying Standards Resulting in Increased
  Adoption

Source In-Stat, Frost and Sullivan
16
Business Models

• Various Business Models available
• Mobile Operator Centric
• MO controls all and content providers pay to play
• Mobile Video Content Provider Centric
• Content provider has most control and MO is only
  a pipe.
• Technology Provider Centric
• A software platform dominates Mobile Video
  deployments
• Closed system? Proprietary System?
• Royalty to be paid by Application developers?
• Revenue Sharing
• Operators provides Mobile Video Development
  Platform to third parties for subscription fee
• Vcast 15 for subscription to suite of 3G MM
  applications
• Qualcomm 20 of the wholesale price of the
  mobile content application (i.e. developers
  application price)

17
Business Models - Bundles

• Verizon Vcast (Channels)
• 15 subscription of which 35 to 45 is kept by
  the mobile operator and the rest goes to the
  value chain.
• Cingular Mmode (streaming video, news, sports,
  weather other)
• GoTV 2.95 p/ month
• RealOne 4.95 p/month
• MobiTV 9.99 p/month (20 channels)
• Sprint (Channels or clips)
• GoTV 2.95 p/ month
• RealOne 4.95 p/month
• MobiTV 9.99 p/month (20 channels)
• PCS Vision Premium Pack (15 p/ mo.) / Vision
  Multimedia Pack (25 p/ month)
• According to Telephia
• Non Mobile TV Subscribers spent an average of 54
  per month on Mobile Phone
• Vcast and MobiTV subscribers spent an average of
  94
• 40 more per month!!!

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Thank You