Transcript Overcoming IPTV Challenges

Overcoming IPTV
Challenges
Ken Lowe
VP Strategic Marketing
Sigma Designs, Inc.
Opportunities
and Advantages
Create
Momentum To
Overcome
Adversity
US Video Market Potential
US Households & Subscribers
– US Households:
116M
– TV Households:
112M
– PayTV Subscribers: 97M
100%
90%
80%
70%
60%
50%
Income & Expenditures
– Median HH Income: $ 48.2K
– H/H Income >$100K: 19.2%
– Avg PayTV Cost:
$60/mo
40%
30%
20%
10%
0%
Pay TV Free TV No TV
* Data based on 2006/2007 census and estimates
3
TV Service Operator Mix
Cable
Satellite
Telco
Key Trends
• Emergence/growth of telco (IPTV) services
• Emergence/growth of triple-play services
4
Service Crossovers
Telco IPTV Subscribers (W/W)
30
25
20
15
10
5
0
Q204
Q205
Q206
Q207
Q208
5
Major Feature Trends
High Definition
Whole Home DVR
Wider Media Choices
Trends Portend a Paradigm Shift
6
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.
7
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.
8
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.
9
CPE Evolution
Client Software
Media Processor SoC
Host CPU
Modems
&
Tuners
Video Decoding
Input &
Display
(H.264, VC-1, MPEG)
Security
Output
Graphics Acceleration
Control
Control
Audio Decoding
Hard Disk
IO Ports
High Definition
Television
Memory
10
Network Evolution
Phone Network
•Voice Delivery
•Low Speed
•2-way
Broadcast System
•Video Delivery
•High Speed
•1-way
IP Network
•Data/Packet Delivery
•High Speed
•2-way
Telco
Terrestrial
Cable
Satellite
11
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.
12
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
13
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
14
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
15
Question & Answer
Q&A
16
Thank You