Mobile Video: Dollars & Sense

Alain Fernando-SantanaChief Marketing Officer

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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 R&D 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

Mobile TV

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Agenda

•Market Dynamics

•Technological Options

•MoTV Deployment - MBCo

•Market Growth Projections & Business Models

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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

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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

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ProductionStudio

Outside Broadcast

Affiliate

Broadcaster

Aggregator

Mobile

Mobile

Telco

Metro

Utility

DTV

MSO

Satellite

3GPP / DVB-H

Residential

Multi-Dwelling Unit

Hospitality

Education

Enterprise

Government

ADSL 2+/ VDSL

WiFi / WiMax

FTTH / BPL

DVB-T

DVB-C

DVB-S

The Video Ecosystem

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Digital Video - Many Terminal and Network Choices

2.5 G Solutions 3G Mobile Solutions Hybrid Solutions Broadcast Solutions

Source: Irdeto

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Mobile TV Resolutions

• Data rates and resolutions depends on terminal and network type

• CellphoneQCIF – QVGA 30-356 kbpsGPRS, 2G, 2.5G- India – below 30

• PDA/Smart phoneCIF – VGA 256-768 kbps3G, DMB-T,DVB-h

• Automotive / Portable / Home:VGA - D1 768kbps - 1 MbpsWimax, HSDPA

VGA-D1

CIF-QVGA

QCIF

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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

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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

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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

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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

MPEG-4 Video in Mobile

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MBCo (Mobile Broadcasting Corporation)

• World’s 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

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Mbco (Mobile Broadcasting Corporation)

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

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20

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40

50

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Sub

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ers

(MM

)58% CAGR

Market Growth Projections

Source: In-Stat, Frost and Sullivan

Global Mobile Video Subscribers

• Mobile Operators Looking to Increase Revenues and Decrease Churn

• Solidifying Standards Resulting in Increased Adoption

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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. developer’s application price)

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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!!!

Thank You