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IPTV – Brave new World

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  1. IPTV – Brave new World Alan Delaney IPTV Business Development Director

  2. Interactivity—media Portability Media Convergence (any content, any device, anywhere, anytime) Choice and control Mobility—voice Interactivity—transactional Expandinginformation access HDTV User-defined content TV- commerce VOD - PUSH and Pull Unicast television Contextual ad serving Time-shifted TV (TiVo) IPTV Dial-up Internet Fixed broadcast video & radio Mobile phones Digital Music (iPod) Evolution of consumer media experience Consumer demand 2007~ 2004 2006 1950 1990 1995 2003 Enabling technology

  3. More content, more devices… “Nokia N95 - What computers have become”

  4. More channels for media consumption

  5. UK Changes in Programme Consumption • “Steptoe & Son” – 28.5M (1966!) • ITV & BBC today - 11.5M & 9.2M highest viewing • BSkyB – USA Flagship programme Lost : 898k • Viewing is changing, as are the business models • You Tube – “Evolution of Dance” : 46.3M views

  6. Business model implications • IPTV was about “sending TV down the tubes” • Ground is shifting before IPTV is even established • Established DRM models changing (EMI DRM free) • Multiple routes to the consumer • Increasingly complex content business model navigation • IPTV: Friend or Foe?

  7. IPTV: Friend or Foe? • Historically perceived as foe • The solution: umbrellas !!! • 1 stop shop for content across multiple devices • Subscriber reacquisition prohibitively expensive • Deliver sticky services to reduce churn (triple/quad)

  8. Triple / Quad Play Reduces Churn • 1.3% reduction in per month churn from Triple Play Source: Kagan, December 2003 • 1M IPTV Subs • 15.6% reduction in annual churn, SAC of $x00/sub • Potentially tens of millions saved in revenue • Single % point reduction equates to millions saved

  9. New Advertising Business Models • Babelgum • $5 for each 1000 unique views of a clip • Google advertising (my guess) • $10 / 1000 unique views • Therefore 1 cent /page • If 100M pages / day viewed = $1M/day • Equates to >$360M / year • My Space – 1.5 Billion page views a day ! • Comcast has served 3 Bn+ vod assets to date • Majority of which are free and ad supported • Power of advertising transitioning over to iptv and bbtv

  10. TANDBERG Television solutions

  11. HDTV Video On Demand Network PVR Switched Digital Video Interactive advertising TANDBERG Television solutions

  12. Expanded TANDBERG Offering

  13. Summary • IPTV is happening • Disruptive business models • Embrace the change • Solutions are here to meet the market requirements • TANDBERG delivering solutions to meet those needs