Ultimate TV ApplicationsOctober 2009

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High Margin Applications Creating a connected World

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Secure placeshifting application

1, click on TV app’

2, NXVision service authenticates and shares IP addresses

3, device connects to STB and receives TV programme guide

4, select programme and watch, anywhere

Ethernet WiFi3G

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Secure sideloading application

1, Mobile client tags a TV programme to be recorded.

2, STB transcodes and records a mobile image file.

3, on completion of recording file is pushed to mobile

4, the file is able to be watched on the mobile

Recorded programmes .3pp file

Transferred to mobile over WiFi or 3G

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DTR remote scheduling application

• OPEN app’

• select programme from EPG

• Schedule recording

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Business Opportunity

• Applications provided as an OAD or factory install with subscription on activation.

• Subscription is either per app’ or as a bundle– Placeshifting $ X per month– Sideloading $ Y per month– Remote DTR programming $Z per month– Bundle $X+Y+Z- discount per month

• Ad’/ promotion presents additional revenue opportunity

• Applications can be provided as a promotion on new subscription (6month free)

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How much do you need to invest?

• an advance license fee to NXVision covering an agreed minimum number of application installs.

• representative hardware and support• Middleware support• Qualification • Market launch

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What is the NXVision’s business model?

• Licensing of applications; – placeshifting, – sideloading – and DVR remote scheduler

• Provision of association server software as a service.

• Additional revenue generating opportunity are offered on a revenue share basis. These include – ad’ or promotion insertion – collection of viewing stat’s

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Summary

• Average revenue per Box = $ per month• All boxes can be enabled (HD, DTR, SD).• Factory or OAD install• High Margin > 60%• Additional revenue opportunity• For example 1million application activations,

profit = $ (-) million pm

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BACKGROUND

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What IPR does NXVision bring?

• NXVision background IP covers the area of placeshifting and sideloading – Transcoding– Trans-scaling – Transcrypting– Association server– EPG provision to mobile.

• Foreground IP– Industrial Design– Look and feel of programme guide– MIS integration

• Inventive steps occurring as a result of development and deployment contracts will be owned by the inventing party, with other party having fair access to IP.

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• Transcode to increase compression ratio

• Transcale to match mobile screen size

• Transrate to provide best quality for available connection bandwidth.

• Trans-crypt CA/DRM

Real-time transcode

Broadcast TelevisionStandard and High DefinitionMPEG 2, MPEG 4, H.264, DiVx ........

Dynamic PlaceshiftH.264

QCIF to SD

Sideload file3GP, H.264, Flash.............

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NXVision is available as a embedded solution or a Dongle

90mm

25mm

63mmUSB 2.0 compatible dongle device

Provides placeshifting and sideloading solutions for STBs, DVRs and BD player.• Lowest cost• Lowest power• ST7105 based• uPNP and DLNA compatible

• NXVision software application is • targeted at STB, DVR and BD player products.• Currently supporting ST-Micro, Vixs and NXP chipsets • running on Linux and ST OS. • the most cost efficient way to deploy placeshifting and

sideloading.• easily ported to other chipsets.

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Which handsets will the applications be compatible with?

SYMBIAN

iPhone and

iTouch

NXVision applications are supported on wireless devices that natively support streaming or allow the download of plug-in streaming app’s. Mobile Phones, PCs, PMPs and games consoles.

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Cross platform compatibility

DOCSIS

• NXVision applications are compatible with terrestrial, satellite, cable and IPTV

• any set top box that has an IP connection• and if it has a USB2.0 there is a dongle adaptor

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USE CASE

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To who would the operator market the service?Who Why Where What

In-Home Parents with a teenage family.

Multi-room multi-tuner access.Alternative viewing to main living room

Either with headphones in living room or in bedrooms / home office

PC or games console client most likely via Ethernet or WiFi.

Commuter 25+ graduate employees and white collar staff

Catching up on recorded programmes, News in morning trash TV whilst heading home

Train or Bus to office

Mobile phone via 3G or WiFi

Road-Warrior

Sales Staff and Exec’s,

Access to Native Language programming, keep up with local news and sports

Hotel rooms and Coffee shops

Laptop and Mobile via 3G WiFi or Ethernet

Student/ migrant employees

<30yrs who are studying or working away from home

Access to Native Language programming, keep up with local news and sports

Living accommodation/ dormitory.

Laptop and phone

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In-Home

• Now that they have the family they always wanted, John and Stacey find they can no longer watch what they want on their TV. Their kids (George and Mandy) spend a lot of time on their laptop, but somehow always find time to control the main TV set to show what they want.

• Using NXVision technology, John and Stacey can get the main TV set back as the kids would rather use the laptop anyway, and this way they can get access to everything they want.

• Peace and quiet descends on the house, for now !

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The Commuter• During a 1hr commute into London every morning recently

graduated financial advisor Percy has access to, the FT which he buys but doesn’t read, music and now he can watch TV scheduled or recorded on his I-Phone.

• His long days and hectic lifestyle means that Percy often doesn’t have time to keep up with all the programmes he records and NXVision not only allows him to catch-up on the train but also watch during stolen moments whilst at his desk. When discussing the last episode of Heroes with his work colleagues he is no longer having the experience ruined by one of then inadvertently telling him the conclusion to the most recent episode.

• The £5 per month he pays per month increases the value of his PayTV subscription as now he can watch the programmes that he invariably missed and he now more likely to maintain his subscription.

• Percy’s partner Justine has recently downloaded another client for her Prada phone (LG Viewty) which she watches between clients at the Beauty salon where she works.

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The Road Warrior

• Douglas the mid forties VP of Global Sales loves his gadgets he has frequent trips away from home on business, as much to escape the wife (Susan) as make sales.

• During these trips Doug likes to retire to his hotel room and watch (on his 19” Apple Power Book) the programmes that he has chosen without Susan’ s constant interruptions.

• Additional £5 subscription and the inserted ad’s are a small price to pay.

• Internet access costs but the Company pays.

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The Student

• Craig is finding it difficult enough being away from home at College without having access to all the TV channels he has at home, especially when he is supposed to be studying!

• Thankfully dad has paid for NXVision and internet connection in the halls of residence is free.

• Accessing with friends on Craig’s mobile uses the bundled data package for between 10-20 hours of TV per month, so he can keep up with the latest Skins episode with his mates down the pub.

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Sports fan

• Kevin a lifelong and very loyal football supporter, although he never goes near the stadium.

• He fights his corner for his team every match day in the office and therefore need access to not only his clubs football matches but also their opponents.

• He is more than happy to play back his teams most triumphant moments and their opponents most humiliating defeats from the recoding on his STB at home and display the footage on his phone.

• The price of this enjoyment doesn’t come into it.

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FREQUENTLY ASKED QUESTIONS

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Do content rights need to be obtained to allow consumers to view paid for content on a mobile phone?

• Yes, content rights are required in order to sideload and/or placeshift paid content to be to mobile.

• DRM (OMA, Windows, Apple) protects placeshifted and sideloaded content– Symbian, Window’s mobile and Android handsets – In the specific case of the iPhone that does not support

OMA, native AES encryption is supported.• VOD and PPV content can easily and securely be side-loaded

or placeshifted to mobile device using NXVision applications.• Content owner/provider will have opportunity to increase

revenue.• In the event that a PPV event is restricted either temporally or

geographically, NXVision applications support such restrictions.

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Do content rights need to be obtained to allow consumers to view Free To Air content on a mobile phone?

• Simple answer is ‘No’• If there is no content protection on the received broadcast

then – peer to peer uni-cast of an unencrypted stream should be

acceptable • However, the NXVision applications can supply the FTA

content to handset/PC with or without DRM. • The NXVision applications can ensure that the user is within

the correct geography to watch, and block if required

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Is there a requirement to pay for any software and developer licenses?

• Operator may have pre-standing agreements on codec licensing.

• The manufacturer will be required to pay codec licenses for– MPEG 2 decoder – H.264 video encoder– AC3 audio decoder– AAC audio encoder

• DRM Licenses

• No developers licenses will be required

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What do hosted and managed service look like?• NXVision would provide server hardware in both cases, to

avoid compatibility issues.• either managed or hosted model works equally well for

NXVision.• Hosted by operator:-

– Software support – Maintenance – System Development (additional ARPU generation)

• Managed– Server data centre costs – Software support – Maintenance – System Development (additional ARPU generation)

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What are the dependencies

• A STB would require a data connection, USB2.0 or Ethernet to run the applications

• Customer requires – broadband access– a phone with media streaming capability– or a PC/laptop

• Operator requires – To agree specification,– Provide product design brief– Show volume case– List required compliant handsets and mobile devices.– Specify CA/DRM requirements

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Are there any known commercial risks and how can they be mitigated?• No venture is without risk, however NXV provides a seamless

low capital investment route to a mobile video solution.

• No infrastructure costs mitigate any ramp up delay

• Peer to peer nature of solution mitigates any scale-ability issue as experienced by centralised video distribution.

• End to end content security.

• sideloading allows temporal broadcasting concerns to be addressed.

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How will the customer install and set-up the service (Plug & Play)?

• NXVISION applications are available to customers • Pre-installed in and enabled in STB• as an pre-install that is activated • As an over the air install• As a separate dongle

• Out of Box Experience• Easy customer installation, • one Ethernet connection• Apply power• SMS initialisation to enable handset• Enjoy

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How will software on the handset and dongle get upgraded?

• NXVision application uses mobile browser and media player.(in most cases)

• Access is via a URL or widget.• STB software can be upgraded over the air/net.• The Association Server offers an alternative mechanism

as it will maintain a log of the latest software, and compare with the installed version.

• The user can be prompted to upgrade if required.• The dongle software can be upgraded via the

Association Server.

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Which audio and video codec's does the NXVision system support?

• The NXVision system supports – Input video – MPEG2 / H.264 – Input audio – AAC / MPEG / AC3

• The NXVision system outputs as H.264 / AAC.

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How can the quality of the audio and video be optimised?

• The NXVision system is fully dynamic and uses a number of QoS measurements to adjust the audio and video bit rates based on the network performance.

• The NXVision system also uses information relating to the actual handset being used, and the network (3G, WiFi etc) to set up the dynamic system.