Set-Top Box Market Trends Towards Smaller, Faster, Cheaper

IEEE SCV-CE Chapter

• Hoan Tran – Micron Global Sr. Segment Mgr, Connected Home

February 28, 2017

©2017 Micron Technology, Inc. All rights reserved. Information, products, and/or specifications are subject to change without notice. All information is provided on an “AS IS” basis without warranties of any kind. Statements regarding products, including regarding their features, availability, functionality, or compatibility, are provided for informational purposes only and do not modify the warranty, if any, applicable to any product. Drawings may not be to scale. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners. Agenda

. Introduction

. Overview of Set-Top Box Market Trends and Dynamics

. Set-Top Box System Architecture and Key Feature Trends

. System Design Challenges – Mechanical designs – Thermal Managements – High Performance – High Speed design rules

. Q&A

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Eastern Europe Russia Canada •DTT Conversion •DTT Conversion •Low-Cost Sat/Cable/Telco STB •Low-Cost Sat/Cable STB •Low-Cost Sat/Telco STB •Low-Cost Services •Low-Cost Services Western Europe (WU) •Low-Cost Services •Increase MSS & Rev thru Consolidation: Cable-Sat China (PRC) •Push for 4K Content & TSB •DTT Conversion •Smart Media Gateway for •Low-Cost Sat/Cable/Telco STB IoT and OTT BW demand •Low-Cost Services

North America (NA) •Increase MSS & Rev thru Consolidation: Cable-Telco Japan/Korea (JPK) •Push for 4K Content & TSB •Push for 4K Content •Smart Media Gateway for •Low-Cost Sat/Cable STB IoT and OTT BW demand •Low-Cost Services

India Latin America (LA) Central Africa (CA) •DTT Conversion •DTT Conversion •DTT Conversion •Push for 4K Content Australia •Low-Cost Sat/LTE STB •Low-Cost Sat/Telco STB •Low-Cost Sat/LTE STB •DTT Conversion •Low-Cost Services •Low-Cost Services •Low-Cost Services •Low-Cost Sat/Telco STB •Low-Cost Services

5 © 2017 Micron Technology, Inc. Feb. 28, 2017 Pay TV Multimedia Service Operator* (MSO) Trends Consolidation: Europe Top MSO: Russia* Top MSO: Canada •Vodafone-Kabel Deutschland+ONO •RSCC (Sat) Top MSO: Korea/Japan •Rogers Comm •LGI-Ziggo-Virgin Media •VimpelCom (Telco) •J.Com/NTT – Japan •Videotron-Bell Canada •Sky (BSkyB); On Digital •Rostelecom •KT, SK; LG Uplus – Korea •Easynet: O2/BE/EU Sat

Consolidation: NA Top MSO: PRC* •Comcast •China Telecom (South) •AT&T-DirecTV •China Unicom (North) •Charter-Bright House-TWC •China DBSat (Rural) •Verizon-Intel OTT Top MSO: LA Acquisitions: CA Top MSO: India •NET; DirecTV: Brazil •Vodacom-Neotel •Tata Sky: Sky/STAR/ •Televisa; Megacable: Mexico •Multichoice -So.Africa Tata Grp Top MSO: Australia •VTR: Chile •Den Networks •Foxtel & Telstra •Sun; Reliance - India . What does this all Mean to an MSO? Source: Various MSO Press Releases – Acquisitions = More Subscribers = Greater leverage Price Negotiation of Content . Premium Content (Live TV, Movies, Sports) . Immediate increase in market penetration with “new” technology and services – Government Influence* = MSOs are tightly regulated by local government: content, services, cost

. Satellite: Mu Global STB + CPE Units 140. – Lower Infrastructure cost - Emerging Countries – Partnership with Telco & CPE to grow IP-STB 120.

100. . Cable & Telco: – Expand Gb/s Network & CPE to grow IP-STB 80. – Expand Smart Media Gateway to grow users 60. . IP-STB to grow as it gets bundle with CPE Media 40. Gateway and Internet services 20. – Smaller and lower costs: No HDD, No Fans

. – High performance: 4K/8K UHD & Gb/s support Satellite Cable IP DTT DSL CPE Cable CPE FTTH CPE CY13 CY14 CY15 CY16 CY17 CY18 CY19 . DTT slowing – Digital Conversion slowing

Source: Note: CPE = Customer Premise Equipment (Home Modem, Gateway) Infonetics 3Q15

B$ . Revenue Declining – Flattening $25 Global STB Revenue

$1 $2 $2 $2 $2 – “Cut the Cord” OTT, Mobile, and Smart DTV $20 $2 $2 $2 $2 $2 $2 $2 $2 $3 $2 $2 $2 $2 $15 $2 $2 $2 • SVoD (Netflix*, Hulu*, HBO*, Channel-Apps) $7 $7 $7 $7 $6 $6 $6 $10 – “Skinny Bundle”

$5 $10 $9 $9 $9 $9 $9 $9 • SlingTV*, DirecTV NOW*, Dish Flexpack*, etc $ – Market Consolidation CY13 CY14 CY15 CY16 CY17 CY18 CY19 Source: Infonetics 3Q15 Satellite Cable IP DTT OTT Media Servers HDMI Dongles

Mu 400 Global STB Units . Unit Shipped Flattening – Growing 350 7 15 18 20 22 23 – Smaller, Faster, Cheaper Boxes 23 25 27 300 12 19 27 27 31 39 44 46 49 38 31 250 . 4K/8K IP/Client STB 28 26 28 31 33 34 36 200 93 96 95 93 89 84 86 . Hybrid STB 150 100 . Emerging market “new wealth, ” adoption of 141 136 132 133 133 50 126 130 Western trends, & new infrastructure investment

Source: CY13 CY14 CY15 CY16 CY17 CY18 CY19 – Cross-Ventures: TV/Telco/Mobile MSOs and SVoD Infonetics 3Q15 Satellite Cable IP DTT OTT Media Servers HDMI Dongles

32 Average Weekly Live TV Viewing in US Historical TV Watching Source*: Nielsen Q1 2016 Total Audience Report Emerging TV Watching 30

28 Home Home Home Day Prime-Time Night 26

@Work Hours per Week Commute Night Life In Bed 24

Source: Ericsson 3/24/15 22 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Source: NScreenMedia 6/27/16 . Time-Shift and Place-Shift are Top Priority and . Monetizing Personalized TV is about high ROI Highly Valued Emerging TV Watching Trends Dynamic and Targeted Advertisements . Time-Shift TV = Watch “Live TV” . US TV habits will proliferate to other GEOs when you want to, wherever you want to ... – Average Weekly TV time ~ 28 Hrs/wk . Place-Shift TV = TV anywhere – any device – Time-Shift TV (18yrs – 49yrs) ~ 3 Hrs/wk . MSO and CDN tracks viewing habits: (Time watch before jumping to new content) In-Home continue to dominate TV viewing time – TV at Home and TV ads are still relevant *Other names and brands may be claimed as the property of others 9 © 2017 Micron Technology, Inc. Feb. 28, 2017 TV Anywhere Market Announcements

• Roku* TV sets can now pause live TV • Comcast* offers cDVR with X1 • AT&T DirecTV* offers Online Streaming service; cDVR in ’18 on a 16GB USB drive (Roku OSv7.5 ) Platform: Gateway + IP-STB Various The Verge: 1/1/16 ARS Technica: 11/29/16 • Sling TV* Introduces (100hrs) Cloud ̶ Gateway adds Local PVR capability • Comcast* adds Netflix* App on DVR Beta Program on Roku devices ̶ IP-STB drops HDD, adds NVM storage X1 Platform Comcast: 11/4/16 Sling: 11/28/16 • Comcast* license X1 Platform to US & • MSO adds Apps on OTT device Canada MSO – expands X1 platform Various Various  IP/OTT STB to offer Cloud DVR  Cloud DVR & Local Storage  STB & OTT merging with and Local Card PVR PVR proliferating Local Storage Model

Cloud DVR (cDVR) and Local Storage PVR are being explored by MSO and SVoD providers

Storage Pros Cons Cloud • Unlimited storage capacity & bi-directional update • Content licensing: Single vs Shared vs Distributed • MSO controlled the contents & infrastructure costs • Infrastructure upgrade costs (Backend vs Edge) • Increase revenue with “ala-carte” add-on services • Must upgrade CPE to existing customer base • Low cost to set-up, “self-installation” • Balance showing Ads vs Consumer behavior of Ads • Streams content “anytime, anywhere, any device” • Customer QoE due to network lag/buffer/glitch HDD • Legacy additional revenue for DVR service • High-cost of service (send tech to home) • Easy to use, and Fast deployment to consumer • High reliability issue (mechanical failures) • Limit storage capacity @ time of deployment • Device must send to Service Center, down-time • No content “anytime, anywhere, any time” Video • Similar to HDD, but lower power, cost, & small size • Similar to HDD, but less effort to service by tech Storage • Removable & Easy Field Service by tech, quick-turn Cards • Masks temporary Cloud Network lag/buffer/glitch e.MMC • Similar to HE-Cards, but as “unified” or Data NVM • Similar to Video Card, but more effort to service • Higher Quality & Reliability, Design-in Isolation by tech Retail • Available thru Retail & inexpensive • Unreliable, No quality control, Not tested in system USB/SDCard • Consumer decides density & where/when to buy • Customer dissatisfaction impacts Brand reputation

. Set-Top Box (STB) = Pay TV services from . OTT Box (Over The Top) = Free Internet TV & 3rd party Satellite, Cable, Telco, or Free Antenna (DTT) TV Paid Subscription Video on-Demand (SVoD) services . STB Services*: Premium Linear (Live TV) and SVoD . SVoD Services*: Premium and non-premium – Linear TV: Live TV with scheduled programs/shows Streaming On-Demand Video services – VoD TV: Video-on-Demand TV from library of – Premium: Paid Streaming On-Demand & recorded-Live recorded current and past Live TV programs/Shows TV/Video from library offered these popular services – Non-Premium: Free Streaming On-Demand & recorded- MSO* Broadcaster & Content Owner* Live “Free Internet” TV/Video with Advertisement Comcast ABC FIFA HBO

AT&T CBS ESPN Showtime SVoD Content Provider* Dish NBC NFL Disney Netflix YouTube Hulu DirecTV Now LGI AlJazeera Canal+ CCTV Amazon Starz SFR Freeview Sky BBC TF1 Univision Vivendi Alibaba PPTV Pickbox.tv

*Other names and brands may be claimed as the property of others 12 © 2017 Micron Technology, Inc. Feb. 28, 2017 Set-Top Box and OTT Box – Hardware Satellite Set-Top Box (STB) OTT (Over The Top) Box Cable Internet Connection Telco + SVoD Antenna Services

. STB : . OTT*: – Traditional STB = link to PayTV service – OTT device: Roku, Amazon Fire, Google Chromcast, – Hybrid STB = Traditional STB + Home Network AppleTV, SlingTV, LeTV, NowTV; – DTT (Digital Terrestrial Transmission) = Free OTA – Game Console: PlayStation Vue, Xbox, Wii TV STB Converter Box – Smart DTV with OTT function (Roku TV, GoogleTV) . Note: Modern DTV have DTT Tuner inside . Flexibility: YES – OTT can be connected to any . Flexibility: NO – STB is a 1:1 connection between Internet connections and SVoD goes where you go STB and Pay TV service provider per Household – SVoD content can also be streamed from Mobile – PayTV service providers starting to offer devices subscription streaming of their content over – MSO are now offering Hybrid IP/OTT-STB to Mobile devices compete and re-gain new consumer (Cord-Cutters)

Mbit/s

Gbit/s IoT Modem/Gateway Gbit/s

OTT-STB

Gbit/s Streaming IP-STB

• Today: STB (per room) + Modem + Router + Gateway + IoT Hub • Tomorrow: IP-STB (per room) + Modem/IoT Gateway • Accessory: Game Console + OTT Device compliments STB devices Mbit/s

Legacy STB IP-STB Next Gen IP-STB

10/100 Ethernet 10/100 Ethernet WiFi 802.11 SoC WiFi 802.11 SoC WiFi 802.11 SoC 5G LTE SoC Transceiver Transceiver

NOR Flash NOR Flash NOR Flash NOR Flash Memory Memory Memory Memory

WiFi 802.11 SoC 10/100 Ethernet SD Transceiver SoC Smart or SoC SoC HDD (Video Decoder) Card µSD (Video Decoder) (Video Decoder) Card

NOR Flash e.MMC Flash e.MMC Flash LPDRAM DRAM (x16) DRAM (x16) DRAM (x16) DRAM (x16) Memory Memory Memory (x32) NAND Flash DRAM (x16) DRAM (x16) DRAM (x16) DRAM (x16) e.MMC + Memory LPDRAM (x32) MCP Average Box size: 12” x 8” x 4” Average Box size: 6” x 6” x 3” Average Box size: 4” x 4” x 2”

IP-STB OTT Next Gen IP-STB / OTT

10/100 Ethernet 10/100 Ethernet WiFi 802.11 SoC WiFi 802.11 SoC WiFi 802.11 SoC 5G LTE SoC Transceiver Transceiver

NOR Flash NOR Flash NOR Flash NOR Flash Memory Memory Memory Memory

WiFi 802.11 SoC 10/100 Ethernet SD Transceiver SD or SoC or SoC SoC uSD (Video Decoder or Card (Video Decoder) µSD (Applications Processor) Card Applications Processor)

e.MMC Flash e.MMC Flash e.MMC Flash LPDRAM DRAM (x16) DRAM (x16) DRAM (x16) DRAM (x16) Memory Memory Memory (x32)

DRAM (x16) DRAM (x16) e.MMC + LPDRAM (x32) MCP

Average Box size: 12” x 8” x 4” Average Box size: 6” x 6” x 3” Average Box size: 4” x 4” x 2”

IP-STB OTT Next Gen IP-STB / OTT

WiFi 802.11 10/100 Ethernet WiFi 802.11 10/100 Ethernet WiFi 802.11 5G LTE SoC Gbit/s SoC Transceiver Gbit/s SoC Transceiver Gbit/s SoC

NOR Flash NOR Flash NOR Flash NOR Flash Memory Memory Memory Memory

SD SD WiFi Gbit/s SoC 10/100SoC Ethernet SoC Transceiver or SoC or (4K/8K UHD (32-bit Applications uSD (4K UHD Video Decoder) µSD Video Decoder or 64-bit Processor) Card Card Applications Processor)

LPDRAM e.MMC Flash DRAM (x16) DRAM (x16) e.MMC Flash e.MMC Flash DRAM (x16) (x32) Memory 1866 MT/s 1866 MT/s Memory Memory 1866 MT/s 3200MT/s DRAM (x16) DRAM (x16) DRAM (x16) 3200 MT/s 3200 MT/s 3200 MT/s e.MMC + LPDRAM (x32) MCP 4266 MT/s

Legacy STB IP-STB Next Gen IP-STB

10/100 Ethernet 10/100 Ethernet WiFi 802.11 SoC WiFi 802.11 SoC WiFi 802.11 SoC 5G LTE SoC Transceiver Transceiver

NOR Flash NOR Flash NOR Flash NOR Flash Memory Memory Memory Memory

WiFi 802.11 SoC 10/100 Ethernet SD Transceiver SoC Smart or SoC SoC HDD (Video Decoder) Card µSD (Video Decoder) (Video Decoder) Card

NOR Flash e.MMC Flash e.MMC Flash LPDRAM DRAM (x16) DRAM (x16) DRAM (x16) DRAM (x16) Memory Memory Memory (x32) NAND Flash DRAM (x16) DRAM (x16) DRAM (x16) DRAM (x16) e.MMC + Memory LPDRAM (x32) MCP . Reduce Box size from (12” x 8” x 4”) to (4” x 4” x 2”) = Significant Saving

. Mold Injected Plastic Enclosures = Significant Saving vs Metal Enclosure . Remove HDD and Fan = Reduction in Power and Significant Saving . Integration of SoC = Simplify PCB Design and Significant PCB Saving . Use of Multi-Chip Memory Device = Simplify PCB Design and Significant PCB Saving

Flash Memory SLC or MLC NAND e.MMC or SD/µSDCard SPI NOR or pNOR • Operator Apps Configurable • Secure Boot Code • Programming Guide • Temporary storage of Cloud Video • OS & Syst Code & Library • Extended Channel & (PVR/DVR) Programming screen data • Video Time-Shift Buffer • Pre-loaded Games

At Boot-up, Codes SoC Stored in flash will Download into DRAM (SnD)

Video Decoder Downloaded from Downloaded from Work Space x32 Video Frame Buffer Flash (density grows from Flash STD-HD to HD to (main driver for higher density) 4KUHD) DRAM

. Smaller and “Artistic” form-factor – No or very little ventilation = Elevated Thermal accumulations – Plastic enclosure has very poor Thermal Dissipation property

. Faster SoCs and Memory components – High Clock Speed CPU and Memory generates Heat > JEDEC test standard – Heat causes Charge Loss in Memory = Risk incorrectly read “1” or “0” – Heat may cause Drifts in High-Speed Signals if relaxed design rules are used

. Consumer Usage Model are not fully understood – Design for Worse-Case: Continuous Viewing TV Content 24/7 x 7yrs – Denial Design Approach: Under design to cut cost – Ticking Time to Failure

1 0 Vt SLC case: useful Vt limit are much wider and higher

11 01 00 10 Vt MLC case: useful Vt limit are much narrower and lower

Incorrect Vt charge loss from “Heat” = Incorrect Detection of “1” or “0”

SoC

External “Ambient” Temp = 25°C DRAM

DRAM SoC Flash PCB Flash t ~ 68°C tC ~ 60°C tC ~ 78°C C

Note: tC = Case Temperature of the IC

Note: The result may be slightly different with different measurements

Enclosure

External Surface “Ambient” Temp = 65°C Internal “Ambient” Air ~ 101°C

DRAM SoC Flash PCB

t ~ 91°C tC ~ 91°C tC ~ 101°C C

Note 1: tC = Case Temperature of the IC Note 2: External “Surface” temp - Gov Fire Hazard Temp (>65°C) Note: The result may be slightly different with different measurements

5G LTE SoC . PCB designs requires Very High-Speed Design Rules – Gbit/s WiFi and 5G LTE = Requires Very High Speed Design Rules 10/100 Ethernet WiFi Gbit/s SoC SoC Transceiver (4K/8K UHD – 4K/8K UHD or 32-bit/64-bit Apps SoC = Lots of high-speed I/O Video Decoder or 64-bit Applications Processor) – DRAM/LPDRAM at 3200MT/s to 4266 MT/s may require Terminations

LPDRAM (x32) . High Quality DRAM are required to minimize design variations 3200MT/s e.MMC + LPDRAM . Small PCB = potential higher PCB Layers = Higher cost (x32) MCP 4266 MT/s . Proper Shielding are required – But too much shielding isolates and limits Thermal Dissipation from Heat source: SoC (WiFi, Video Decoder, Apps Processor)

Smaller Faster Cheaper

. IP/OTT-STB will lead the . 4K/8K UHD Decoding SoC . Smaller enclosure & PCB market volume . Up to 50Mb/s (typ 12-25Mb/s) . Use of latest memory . “Artistic” shapes, round edges per Compressed Video stream technology – DDR3/4 – LPDDR4 – LPDDR5 . “Hockey Puck” Size Enclosure . Gigabit/s WiFi support – NOR – NAND – e.MMC – Shift from HDD to SD/µSDCard . Thinner profile . Future 5G integration

. No HDD or Fan . Future “Cloud” only storage – Legacy STB has HDD and Fan

Thermal Dissipation must be High-Speed design rules must Lower Cost can be achieved considered be strictly follow with using latest component  High Quality and Reliability  High Quality and High Speed technology integrations Component are needed Components can’t be swap  Memory Component decision with low-cost/quality devices can impact system costs

Smaller Faster Cheaper

Micron has Flash and DRAM Flash memory operating up to Micron Flash device cost devices in small form-factor 200MHz DDR reduce to 3D MLC/TLC NAND

Low to High Density Flash and DRAM operating up to 3200 DRAM devices cost reduce DRAM designed for MT/s with DDR4 and with latest DRAM technology Code/Data requirements 4266MT/s with LPDDR4 to maintain “best” cost/supply – DDR4 on 2017 designs Flash High Data Reliability @ Next generation DDR5 and – LPDDR4 on 2018 designs Extended High Temperature LPDDR5 are being defined – DDR5 or LPDDR5 in 2019/2020 Flash designed for Video Recording (TSB and PVR) Contact your Local Micron Sales for a Confidential Review of your Designs