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NexTV Project IIR’s Interactive Television Conference December 2000, London

NexTV. NexTV Project IIR’s Interactive Television Conference December 2000, London Yaniv Garty, yanivg@optibase.com. Optibase. Founded in 1990 (Nasdaq: OBAS) 190 employees worldwide: Israel , US (CA, MA), UK, France, Japan, China Target markets: Enterprise Broadcast Broadband Internet

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NexTV Project IIR’s Interactive Television Conference December 2000, London

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  1. NexTV NexTV Project IIR’s Interactive Television Conference December 2000, London Yaniv Garty, yanivg@optibase.com Confidential to Optibase

  2. Optibase • Founded in 1990 (Nasdaq: OBAS) • 190 employees worldwide: • Israel , US (CA, MA), UK, France, Japan, China • Target markets: • Enterprise • Broadcast • Broadband Internet • 1999 Revenues: $26.1M; Net Income: $4.4M • Recently acquired: ECI’s Hi-TV group (7/00), and Viewgraphics Inc (12/00) Confidential to Optibase

  3. Optibase • Mission: • Bridge the gap between the Content and the Pipe • Core Competence: • Streaming/ Networking Protocols • IP, ATM, DVB, Protocol Conversion (e.g., DVB -> IP) • Video/Audio algorithms • MPEG-1/-2/-4, WMT, RN, MP3, transcoding • Portfolio: • Digital Video Streaming Servers • End-point platforms • Customers: Confidential to Optibase

  4. Agenda NexTV Project – the basics The business model The applications Technologies NexTV Confidential to Optibase

  5. NexTV NexTV Project New media consumption in EXtended interactive TeleVision environment Confidential to Optibase

  6. Operators: T-Nova, DTAG (D) CSELT, Telecom Italia (I) KPN Research (NL) CNET, France Telecom (F) Vendors: Philips (NL) Sony (B) Sun Microsystems (USA) Optibase (ISR) Research Institutes: GMD (D) ETRI (KR) The Imperial College of Science Technology and Medicine (UK) Nederlandse Omroepproductie Bedrijf (NL) NexTV – Who we are? Confidential to Optibase

  7. NexTV – What are we trying to achieve? • New business models for interactive digital TV • Building an end-to-end system, integrating the various technologies involved: • MPEG-2, HTML, MPEG-4, XML, etc. • Creating tools for the creation, delivery and consumption of the new interactive services • Creating applications serving the new services • Validating the project’s results through extensive trials Confidential to Optibase

  8. New Business Models Confidential to Optibase

  9. Market Opportunity • Around 30% of U.S. home Internet users watch TV and surf the Internet at the same time (Frank N. Madrigal Associates) • EPGs will bring in $3.2 billion in ad revenues and $1 billion in commerce by 2004 (Forrester) • 30 million U.S. households will have Interactive TV by 2004 (Jupiter Communications) • $3.8 Billion will be generated by enhanced broadcasts by 2004 (Forrester) • More than 15 million enhanced TV sets will be in use by 2004 (Deutsche Bank Alex Brown) Confidential to Optibase

  10. Forecasting the Interactive Television Market: Increased Adoption Expected * Source: Gartner Group Confidential to Optibase

  11. New Distribution Channels for Media Avg. hrs/week* 15.4 * Among Online Users, 12/99 * Source: Jupiter Communications 13.2 10.8 4.5 3.7 TV Radio Newspapers Magazines Online Appliances Broadband Internet Confidential to Optibase

  12. EU Access Delivery Broadcaster Creator Producer • Content creation or initiative generation for content creation or content production • Input driver for t-commerce production • Advertiser The Traditional Supply Value Chain • iDTV STB supplying and updating • Packaging creator’s work for the broadcaster • Accommodation or production of t-commerce for any e-business • Preparing and delivering the interactive digital video streams from various sources • Transport Infrastructure Confidential to Optibase

  13. e/t-commerce The e/t-Commerce Attempt to Change the Traditional Supply Value Chain EU Access Delivery Broadcaster Creator Producer Confidential to Optibase

  14. Interactivity Manager IM • Sessions • Rights • Payments • Billing NexTV Supply Loop Layer EU Access Delivery Broadcaster Creator Producer Confidential to Optibase

  15. The Apps Confidential to Optibase

  16. iTV Personalization • Customization • Preference-based personalization • Ignores behavior • Static Profiles • Individualization • Pattern-based personalization • Follows behavior • Dynamic Profiles • Group Characterization • Recommendation-based personalization • Maps behavior • Active Profiles Confidential to Optibase

  17. Enhanced Advertising • Interactive TV Banners • Streamed Ads in EPGs • Additional revenue streams • Effective Targeting • Higher CPM rates • By User • By Group • By Location • Merchandising • Direct marketers • E-Commerce • Pay-Per-View Confidential to Optibase

  18. The Technology Confidential to Optibase

  19. MPEG-4 • Focused on Interactive applications • Streaming technology • High quality @ low bit rate • Varied end-points • Client – Server topology Confidential to Optibase

  20. MPEG-4:Low bit rate/ low motion Confidential to Optibase

  21. MPEG-4:Low bit rate/ high motion Confidential to Optibase

  22. VHS Quality MPEG-4 Confidential to Optibase

  23. Representation of Media Objects • Movie • 2-dimensional fixed background • Picture of a talking person (without the background) • Voice associated with that person Little boy in front of his home • Animated human bodies • Subtitles of a scene containing text and graphics Confidential to Optibase

  24. MPEG-4 Server-Client Application Confidential to Optibase

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