Mobile TV Avenues to Revenues

Paolo Gessaga Multimedia, Nokia

1 © NOKIA NMC_04_ppt_template_7.PPT / 15-09-2004 / tn

Today’s Mobile Reality

• Almost 2 billion mobile phone users worldwide

• Mobile phones are no longer “phones”

• Multi-media devices • Creating content • Being entertained

• Digitalisation, Miniaturisation, Mobility, Connectivity, Communities

• New media is emerging • By 2010 there will be 3 billion users of ‘mobile devices’ and 3 billion TV viewers

2 © NOKIA Contents

What is Mobile TV DVB-H Solution Consumer Expectations Consumer Case Studies Trials and results Business Potential

3 © NOKIA

How to watch TV & video content

Mobile TV PC and home connectivity •Live broadcast TV using DVB-H •Video download from PC to device •Video streaming services over cellular network (personally created or downloaded content)

Watch Record Store Share

On-demand video services Scheduled video delivery •Instant download video services over •Scheduled download based video services over cellular or WiFi network cellular network

4 © NOKIA Mobile TV industry structure Collaboration is key

DevicesDevices Content AggregationAggregation DistributionDistribution Content && ApplicationsApplications

TV TVTV StudiosStudios TVTV ChannelsChannels BroadcastBroadcast networknetwork TV Set-TopSet-Top BoxBox

Mobile TV Mobile Mobile TV Mobile Broadcast network Mobile channelschannels Mobile Broadcast network TerminalTerminal

CellularCellular networknetwork

5 © NOKIA

Mobile TV Solution

Terminal Content Stream Encoder Broadcast network Nokia Mobile TV Server Solution Content provider service mgmt Cellular Purchase network

Content Providers Open Air Interface • management of services • based on open standards • security by encryption • enabling interoperability • flexible distribution • creating a market with terminals • easy service access via internet from several vendors • flexible pricing • Available now • Content agnostic www.nokia.com/mobiletv

6 © NOKIA DVB-H Advantages

• Based on open standards • Flexible, scalable, cost efficient - Can utilise current DVB-T networks for transmission network roll out - Leverages IP multicast core networks for distribution and broadcast network management - Rapid and easy indoor coverage implementation (with repeaters and gap fillers) -Up to 52 channels / 11 mbps in one DVB-H multiplex

• Optimized for mobile device use - Small screen and antenna - Battery power - True mobility and indoor coverage • Industry commitment

7 © NOKIA

Industry Benefits

• New business/revenue opportunities for all industry players

• Media Industry: expand audience, widen prime time, re-use of popular content and new distribution platform, new connection to mobile consumers

• Broadcast Network Operators: new growth market

• Mobile Operators/Service Providers: offering Mobile TV services to customers and additional opportunities for interactive services, billing and invoicing, increases cellular traffic, differentiates services from competitors

• Infrastructure, Equipment Vendors: new business opportunity

• Regulators: efficient use of broadcast spectrum

8 © NOKIA Consumer Expectations from Mobile TV

GoodGood picturepicture andand soundsound qualityquality

RightRight selectionselection ofof channelschannels ServiceService availabilityavailability

SimplicitySimplicity ofof useuse ValueValue forfor moneymoney

MultimediaMultimedia DeviceDevice

9 © NOKIA

No liberatoria su Video Clip

10 © NOKIA TV goes Mobile with the Nokia N92

• Watch up to 4 hours TV • One Key TV access • Large 2.8’’anti glare screen with 16 million colours • 30 second replay, 30 minute recording • Always up to date Electronic Service Guide • Dedicated 4-in-1 media keys • Music player, FM radio & Visual Radio • 2 MP camera

11 © NOKIA

12 © NOKIA DVB-H Worldwide

•• Spain,Spain, Madrid,Madrid, BarcelonaBarcelona 20052005 •• South-AfricaSouth-Africa 20052005 •• AbertisAbertis Telecom Telecom •• TelefonicaTelefonica Moviles Moviles Espana Espana •• TaiwanTaiwan 20052005

•• NetherlandsNetherlands HagueHague 20052005 ••MalaysiaMalaysia 20052005 Text•• DigiTenneDigiTenne •Text•• KPNKPN •• FranceFrance 20052005 •••TextNozemaNozema Services Services •• SFRSFR •• CanalCanal ++ •• AustraliaAustralia SydneySydney 20052005 •• TheThe BridgeBridge networksnetworks •• SwitzerlandSwitzerland 20052005 •• TelstraTelstra •• SwisscomSwisscom

•• Finland,Finland, HelsinkiHelsinki 20052005 ••Germany,Germany, BerlinBerlin 20042004 •• YLE,YLE, Digita,Digita, TeliaSoneraTeliaSonera •• bmcobmco MTV3,MTV3, Nelonen,Nelonen, ElisaElisa •• Philips,Philips, UniversalUniversal StudiosStudios ofof Germany,Germany, VodafoneVodafone •• UK,UK, OxfordOxford 20052005 •• argivaargiva • mmO • mmO22 •• USA,USA, PittsburghPittsburgh 20052005 •• CrownCrown CastleCastle

•• 13 © NOKIA

FinPilot Overview

500 test users, different ages, using Nokia 7710 media device with SU-22 streamer: March - July 2005 Broadcasting coverage in Helsinki Metropolitan area 20 minutes average viewing time / day Basic Package (€4.9/month) Premium Package (€3.9/month) TV channels TV channels • MTV3 • CNN • Sub TV • BBC world • YLE TV 1 • Eurosport • YLE TV 2 • Euronews • Nelonen • ViVa + • Snadi TV • Fashion TV • Nelonen Extra • Urheilukanava (sport channel) Radio channels • Radio Nova PPV channels (€2/weekend) • YLE Radio Peili • MTV3 Extra • YLE Radio Extrem • Indica TV

14 © NOKIA Viewing habits

Often / Quite often Every now and then

To pass the time (e.g. while waiting for 43 33 something)

To stay updated (e.g. 40 31 watching the news)

To relax / entertain 18 32 oneself

As background entertainment while 16 28 doing other things

To create own space (e.g. in public 10 19 transportation)

As a second TV while the household's TV is 9 20 used by others N=466

15 © NOKIA

58% believe that Mobile TV will become popular

‘Based on your experience, do you believe that Mobile TV, as a service, will gain popularity among consumers’ 100

58% 80

46 50

28 30

20 12 12 10 1 0 5 Most 4 Fairly 3 I cannot say 2 Fairly 1 Most certainly yes certainly yes certainly no certainly no N=466

41% 100

90 15% Late 80 majority 70

Early 60 majority 47 Early 50 adopters Laggards 40 / Rejecters 26 30 Innovators 14 20 11 10 1 0 Would buy it I would buy it I would buy it I might acquire I will never as soon as it is at the same when its usage the service at acquire the available time of has become some point in service acquiring a more common future next new mobile N=466

17 © NOKIA

Market Potential – devices and technology

Smartphone market, 2003-2008 Units millions

300

250 238

200 149 150 149

100 94 52 50 23 7,1 0 2003 2004 2005 2006 2007 2008

Nokia DVB-H devices roll-out DVB-H is seen as the preferred technology across the smartphone range

Nokia 7710 S60 Terminal Nokia 7700 Open Air Interface

MobileMobile TVTV ServiceService e-CommerceManagementManagement

e-CommerceMobileMobile TVTV ServiceService ManagementManagement Mobile TV Server Solution 3.0 e-Commerce MobileMobile TVTV ServiceService Mobile TV Server Solution 2.2 ManagementManagement • over 15 pilots Mobile TV Server Solution 2.1 • three pilots

2003 2004 2005 2006

19 © NOKIA

Key Messages

• Positive consumer feedback • DVB-H is right technology – scale and scope • Its happening now – act now – train is leaving station

• Collaboration is needed in respective business systems • different views of value chain • build on your strengths

• Open standards – level playing field

Mobile TV Write the script Paolo Gessaga Multimedia, Nokia