INNOVATION IN BROADCASTING MARKUS FRITZ, Director Commercial Development & Marketing INNOVATION distinguishes between “a leader and a follower ” INNOVATION IS CHANGE That unlocks new value Value centric innovation INNOVATING… WHILE SAFEGUARDING TECHNICAL RIGOUR
Electric propulsion: already developed for station-keeping At platform level: 3 future satellites in our expansion programme using electric efficiency propulsion for in-orbit raising and station-keeping Opportunity to optimize mission
Signals protected from deliberate or accidental interference At payload level: Improved allocation of electrical power to increase active channels security and flexibility Frequency agile command receivers to expand options for repositioning
Maximizing Quality: Ultra HD - next step in quality and growth
At market level: Optimizing Delivery: OTT, Push VOD, Hybrid TV, Smart-LNB quality and access Maximizing Connectivity: Teleports, Field Force
4 VALUE CENTRIC INNOVATION MAXIMIZING QUALITY
5 MAXIMIZING QUALITY – WHAT DOES ULTRA HD “4K” TV OFFER ?
Ultra High Definition TV (UHDTV) will offer:
Higher resolution Higher frame rate(s) More and deeper colours Higher Dynamic Range (HDR) UHDTV Immersive video and audio
In summary - an unrivalled new TV viewing experience
Industry consensus that Ultra HD is going to be the next “big thing”
6 MAXIMIZING QUALITY – WHAT DOES ULTRA HD “4K” TV OFFER ?
Ultra HD - the better viewing experience
More pixels More colors
UHD 4K 3840x2160 MPEG-2 ca. 40 Mbit/s MPEG-4 ca. 80 Mbit/s Human HEVC ca. 20 Mbit/s vision COMPRESSION
UHDTV Cinema x 2160) 4k(4096 1920x1080 HD (BT.2020) MPEG-2 ca. 19 Mbit/s MPEG-4 ca. 10 Mbit/s HEVC ca. 5 Mbit/s COMPRESSION HDTV (BT.709)
SD 720x576 MPEG-2 ca. 4 Mbit/s MPEG-4 ca. 2 Mbit/s HEVC* ca. 1 Mbit/s COMPRESSION
HEVC will bring UHD bandwidth requirements to affordable levels for broadcasters 7 MAXIMIZING QUALITY – WHAT IS NEEDED TO MAKE IT HAPPEN?
Pre-requisites for Ultra HD
The right content
The right standards
The right equipment
The right demand
The right distribution
The role of satellite to drive
8 MAXIMIZING QUALITY – WHAT IS NEEDED TO MAKE IT HAPPEN?
The right content
“Netflix launches 4KTV streaming offer” “DirecTV first multi-channel provider to deliver 4K to home” “The Weather Channel’s plans” to fully convert to 4K by 2018” “Sky delivers first 4K TV broadcast in the UK” “Sky Germany launches UHD demo for IFA 2014” “Over-the-air 4K broadcast of (Roland Garros) French Open” “Rai screens 1st UHD Documentary (Rossini) and “La Boheme”” “BBC showcases Wimbledon and Wildlife Documentary in 4K”
“Red bull gives wings to 4K” “Tricolor TV launches 4K channel”
9 MAXIMIZING QUALITY – WHAT IS NEEDED TO MAKE IT HAPPEN?
The right content
Major feature films & sports events e.g. FIFA World Cup™ 2104 already captured in 4K
150 feature films and TV shows were available as UHD master copy and almost 800 in UHD source format by 2013
UHD expected to serve a growing segment of TV homes (with > 55’ screens)
10 MAXIMIZING QUALITY – WHAT IS NEEDED TO MAKE IT HAPPEN?
The right content Number of UltraHD Channels*
Over 800 Ultra HD channels within the next 10 years 900 800 800 CAGR predicted with a CAGR of almost 50%* 700 +50% 600 Growth mainly driven by North 500 America (40%), Asia (17%) and 400 Western Europe (14%) 300 200
HTS will support 100
roll-out in selected regions, 0 notably in North America and Western Europe
Plus UHD user generated content Predicted Ultra HD Channel Growth and UHD-VOD
*Northern Sky Research, 2014 11 MAXIMIZING QUALITY – WHAT IS NEEDED TO MAKE IT HAPPEN?
Number of UltraHD Channels The right content by platform* With almost 70% of channels distributed via DTH platforms, 900 satellite will drive Ultra HD 800 roll-out* 700 600 Others 500 DTH For 2015-16, already 12 Ultra 400 HD channels are expected 300 200 70% About 60% of channels 100 broadcast via satellite will be 0 from North America, Europe and Asia Satellite to Drive Ultra HD Channel Growth
*Northern Sky Research, 2014 12 MAXIMIZING QUALITY – WHAT IS NEEDED TO MAKE IT HAPPEN?
The right standards - UHD Phases Technology development of Ultra HD is ongoing
UHD-1 – 4K Phase 1 UHD-1 – 4K Phase 2 UHD-2 – 8K
more pixels better pixels Super Hi-Vison HEVC Main 10 Higher Dynamic Range 7680 x 4320 pixels 3840 x 2160 pixels (HDR) e.g. by NHK at 50/60 fps at 100/120 fps 10-bit color depth more colors DVB standardized better audio Now in EU by 2016-2017 in EU by 2020
Ultra HD is encoded in HEVC – High Efficiency Video Coding
Current data rate via satellite is about 25 Mbit/s with better encoders the bitrate can go down to 20 Mbit/s in 2015-2016 with HEVC bandwidth cost become affordable for broadcasters
13 MAXIMIZING QUALITY – WHAT IS NEEDED TO MAKE IT HAPPEN?
The right standards - DIGITALEUROPE logo Logo Scope
UHD-TV Receiver Scope of DE UHD Display Logo T,S,C,IP UHD TV UHD Display Tuner Minimum conditions Interoperability established by this document DISPLAY Resolution capable of rendering 3840x2160 through at least one path HDMI Aspect Ratio 16:9 Colorimetry BT.709 UHD Source INTERFACES following DE Input HDMI 2.0 with HDCP 2.2 accepts 50/60P (4:2:0) and specification 24P/25P/30P (4:2:2), 8-bit depth
AUDIO 2.0 Stereo PCM
more details: www.digitaleurope.org 14 MAXIMIZING QUALITY – WHAT IS NEEDED TO MAKE IT HAPPEN?
The right equipment Production Ultra HD cameras and encoders are available; although still at higher price levels
Over 2000 UHD cameras units were shipped by April 2014
Companies such as Ateme, dbw, Ericsson, Grass Valley, Hitachi, Panasonic IDC, SMARDTV, Sony, TOYS etc. are actively supporting the Ultra HD trials and productions
Home Equipment
Ultra HD–HEVC chipset are available from several manufacturers
Over 12000 UHDTV sets already shipped globally by CE manufacturers such as Grundig, JVC, LG, Panasonic, Samsung, Sharp, Sony etc. Forecasts revised upwards, x 2 in 2014
First 4KTV STBs are coming to the market from different manufacturers such as Arris, Cisco, Humax, Pace, Technicolor etc...
15 MAXIMIZING QUALITY – WHAT IS NEEDED TO MAKE IT HAPPEN?
The right equipment - at home
UHDTV 1 2013 2014 2015 2016 (4k TV) Demo channels HEVC demo channels First commercial channels Quad HD (MPEG-4) up to (50/60 fps) (50/60 fps) HEVC (single tile) DTH channels via satellite
UHD TV sets HDMI 1.4 (30 fps) UHD TV sets with HDMI 2.0 (up to 60 fps)
TV sets with DVB-S2 & UHD TV sets with DVB-S2 & HEVC decoder (up to 60 fps) HEVC decoder
UHDTV HEVC UHD HEVC (30 fps) UHD HEVC STBs (50/ 60 fps) Set Top Boxes
Ultra HD Blu-ray Ultra HD Blu-ray players and discs (with HEVC + HDR) players
UHDTV UHDTV Consumer Camcorders (up to 30 fps) Camcorders
UHDTV UHDTV Game stations Game stations
16 MAXIMIZING QUALITY – WHAT IS NEEDED TO MAKE IT HAPPEN?
The right equipment - at home - price trends UHD screens saw a 36-41% price decrease between April 2013 and April 2014
FDH & UHD Price Comparison (EUR)
The price comparison shows that UHD screens exhibit a similar price entry point and price decrease as Full HD screens did when first introduced
17 MAXIMIZING QUALITY – WHAT IS NEEDED TO MAKE IT HAPPEN?
The right demand UHD Screen Sales per Region in 2020
2/3rd of consumers would like to 12% have an UHD screen once they 39% have seen it 19% Every 4th consumer would be ready to pay more for receiving High or Ultra High quality (Ericsson Consumer Lab 2013) 8% 55% of European consumers would buy U-HDTV (strategy 22% Analytics Consumer Metrix 2014) MEA APAC LATAM NAM EUROPE
* Source: GfK, IHB, Ericsson Consumer Lab, Strategy Analytics 2014 18 MAXIMIZING QUALITY – WHAT IS NEEDED TO MAKE IT HAPPEN?
The right demand
“They look like 3D pictures.” “An amazing view of a scene that Italy, male, NPTV I felt I could touch, almost smell, feel. Really realistic. Made me want one of those TVs.” Female, NPTV ”You could see every detail, each drop, even ashes falling off the “It was a top quality picture, building, it’s all shown, faces of unbelievable, new technology.” the firemen. Slow motion is also Male, PTV a plus, it features all the details even better.” Poland, 41-65yo - PTV
“This must be 4K – already proposed by Sony and Samsung but no broadcasting available for “… I’d buy a 4K TV, but 4K the moment.” broadcasts will only be available Germany, PTV in 3 years!” Poland, 41-65yo - PTV
Eutelsat 4kTV Focus Groups – Q4-2014 19 MAXIMIZING QUALITY – WHAT IS NEEDED TO MAKE IT HAPPEN?
The right demand
Still low unprompted consumer awareness of UHD, prompted awareness in WE at 64 %* Consumers recognize the superior image quality versus SD and HD Consumers are seduced by UHD but expect UHDTV to be a costly, premium product Genre expectations include movies, series, documentaries and sport Significant difference in markets maturity: UK, Germany and Poland are ready to invest and subscribe France and Italy need more communication
Source: Eutelsat 4kTV Focus Groups – Q4-2014 * Source: Eutelsat TV observatory WE 2014 20 MAXIMIZING QUALITY – THE ROLE OF EUTELSAT SATELLITES
The right distribution - Status of Ultra HD per infrastructure Satellite performance against terrestrial networks
BANDWIDTH COVERAGE IMAGE QUALITY TIMETABLE AVAILABILITY Satellite +++ +++ ++ +++ Cable + +++ ++ +++ DTT ++ +++ + + IPTV + ++ +++ + OTT ++ + +++ +
21 MAXIMIZING QUALITY – THE ROLE OF EUTELSAT SATELLITES
Eutelsat satellite play a crucial role for Ultra HD delivery globally
Ultra HD Ultra HD Ultra HD Ultra HD
OU/SNG Broadcaster Teleport Direct Direct Digital to home to cable terrestrial television Ultra HD via Eutelsat satellite enables Global distribution and local delivery of Ultra HD services Immediate and cost efficient role-out of Ultra HD Broadcasting and Push-VOD services Ubiquitous distribution of Ultra HD - anywhere within the footprint - in urban and rural areas Direct (DTH) and indirect delivery (DTX – feeding and complementing of terrestrial networks) De-congestion of terrestrial networks from bandwidth heavy applications (Ultra HD etc.)
22 MAXIMIZING QUALITY – THE ROLE OF EUTELSAT SATELLITES
4K broadcast via Eutelsat satellites since January 2013
With dedicated 4K demo channel(s)
Full transmission chain in place DTH and DTX
Eutelsat has the right bandwidth availability for 4KTV on global scale
Eutelsat is partnering with key players along the value chain around the globe
Eutelsat building a sustainable 4K eco-system
Enabling growth in viewing experience and ARPU for its customers and audiences
MAXIMIZING QUALITY – THE ROLE OF EUTELSAT SATELLITES
Eutelsat is driving 4KTV partnerships globally
Network Partners Device Partners Content Partners
24 MAXIMIZING QUALITY – CONCLUSIONS
Market forces team-up UHD Alliance for 4KTV mass market Members:
DIRECTV Dolby LG Netflix Panasonic Samsung Sharp Corporation, Sony Technicolor Walt Disney Studios Twentieth Century Fox Warner Bros. Entertain.
The UHD Alliance is a global coalition of leading film studios, TV brands, content distributors, post-production and technology companies that aim to create a unified criterion for premium UHD, from devices to content including next generation features like as 4K resolution, High Dynamic Range, Wide Color Gamut, High Frame Rate and Immersive Audio.
25 MAXIMIZING QUALITY – CONCLUSIONS
UHDTV growth worldwide By 2025
By 2020 1000 UHD channels
200 UHD channels >500 mil UHD screens 100 mil UHD screens 400 mil HEVC STB’s installed 50 mil HEVC STB’s installed
UHD will become mass market in the next decade by 2025 half of all screens and STB’s sold will be UHD
* Source: GfK, IHB, Ericsson Consumer Lab, Strategy Analytics 2014 26 MAXIMIZING QUALITY – CONCLUSIONS
Ultra HD availability is already much higher than what immediately comes to mind
Ultra HD devices are already in the living environment and actively used
Chinese manufacturers offer Ultra HD TV sets for less than US$1,000
Film studios already produce massively Ultra HD content
Ultra HD is in a much better position moving forward compared to the initial HD development life-cycle
Eutelsat satellites are UHD ready and do already delivers Ultra HD direct-to-home and to other infrastructure (feeding and de-congesting)
27 VALUE CENTRIC INNOVATION OPTIMIZING DELIVERY
28 OPTIMIZING DELIVERY – MEETING CHANGING VIEWER EXPECTATIONS
Yesterday Today
TV set Any PC screen Tablet Smartphone
Catch-up TV Any Video on Demand Time Interactivity
Increased quality
29 OPTIMIZING DELIVERY – MULTICAST & MULTISCREEN VIA EUTELSAT
Satellite: up to 6Gbps guaranteed multicast Satellite advantages for multi-room usage Up to 1000 TV channels per orbital position accessible on all screens End customer premise Unlimited number of simultaneous TV screens Constant highest quality standard, whatever the number of screens in the home
Deployed by most of Eutelsat’s clients
30 OPTIMIZING DELIVERY – HYBRID TV DELIVERY
How to address all the viewers Which IP devices are you addressing? expectations? (Broadcasters and DTH TV platforms) Challenges: Tablet or 74% Watch TV on a PC or tablet Smartphone Long-tail catalogue for video on demand PC (website) 51% …
Smart TVs 51% Reaction as of today: To maintain user experience Game 20% excellence, most TV platforms consoles complemented their linear broadcast offer… Other 14% … with new services based on broadband infrastructure (OTT) None 17%
Eutelsat online customer poll, November 2014, based on 37 responses 31 Answered: 35 Skipped: 2 OPTIMIZING DELIVERY – COMPENSATING OTT WEAKNESSES VIA SAT
Growing distribution costs Inability to reach the Lower quality of service, entire population especially at peak hour CDN costs increase with the audience Lower image quality … Broadband networks saturated by OTT … Or even no video demands service at all
OTT distribution cost pattern Broadband penetration Internet bottleneck (2014) at peak hour Cost OTT Switzerland 94% France 92% Homes UK 86% Belgium 83% n x 2 to 20 Mbps Satellite Germany 71% Cabinet Russia 56% x Gbps / n homes Italy 55% <1 Mbps per home Poland 55% at peak hour # viewers POP Turkey 44%
Source: iDate, Eutelsat analysis 32 OPTIMIZING DELIVERY – TV IS STILL PRIMARILY VIEWED AT HOME
DTH continues to be the most efficient delivery means for TV at home
Location when using a tablet Tablet and TV usage pattern to access media along the day (% respondents, 2012-2013) (2013)
Out of home / at office
87% 87% At Home79% 79%
0am 6am noon 6pm Mid 2012 2013 night
Base: All Interactions Among Tablet Users (8591). Q. Were you... Note: Out-of-Home represents net of the following: on-the go, in-store, at work and somewhere else 33 Source: Google/TNS New multiscreen world 2012 2013 OPTIMIZING DELIVERY – COMPENSATING OTT WEAKNESSES VIA SAT
Growing distribution costs OTT distribution cost pattern CDN costs increase with the Cost audience OTT Switching point e.g. in 2013, BBC paid to satellite 30 M£ for streaming 12% of its distribution cost 2% of the audience Satellite Increasing OTT subscriber base Will cause congestion of terrestrial networks Will lead to decrease in viewing experience and increase in cost # viewers
34 OPTIMIZING DELIVERY – NEW SOLUTIONS FOR HYBRID TV DELIVERY
PAY TV FREE TO AIR PLATFORM BROADCASTERS LIVE PROGRAMS CAS-to-DRM IP multicast SAT>IP
ON-DEMAND Sat On-Demand HBBTV 2.0
35 OPTIMIZING DELIVERY – NEW SOLUTIONS FOR HYBRID TV DELIVERY
Satellite-based multiscreen - live Broadband 2 alternatives Satellite Broadcast CAS–to-DRM: bridge DVB and DRM securities IP-multicast: broadcast over Subscriber satellite native IP streams home Main set-top-box routes DRM-protected streams to the IP devices in the home
Ethernet or Wifi Expected benefits TV Flat-fee distribution platform Main STB Wifi Maximum reach Guaranteed quality of service
DRM Internet connexion server (ADSL, 3G or Smart LNB)
Source: Eutelsat 36 OPTIMIZING DELIVERY – NEW SOLUTIONS FOR HYBRID TV DELIVERY
Existing OTT on-demand services Broadband Satellite Broadcast
DRM key, streamed content
browsing Broadband VoD servers Catalogue Existing broadband
Content VoD application Existing solution: OTT web-server
Source: Eutelsat 37 OPTIMIZING DELIVERY – NEW SOLUTIONS FOR HYBRID TV DELIVERY
Enhanced hybrid on-demand services Broadband
Satellite Broadcast ‘SAT On-Demand’
Distribute via satellite, store locally contents pre-packaged for tablets/PCs, ready for immediate watching, … Push VoD server Most viewed broadcast Extension: content stored … fully compatible with locally existing OTT VoD services: DRM key, streamed content Same back-end (incl. DRM) Same customer applications browsing Access to long-tail catalogue Broadband through internet connection VoD servers Catalogue Existing broadband (in lower quality)
Content VoD application Existing solution: OTT web-server
Source: Eutelsat 38 OPTIMIZING DELIVERY – NEW SOLUTIONS FOR HYBRID TV DELIVERY
Open standard for advanced TV Growing adoption of the standard Current deployment 1.x Testing CE manufacturers V2.0 to be deployed
…
Broadcasters
…
HbbTV Association 39 OPTIMIZING DELIVERY – NEW SOLUTIONS FOR HYBRID TV DELIVERY
Push-VoD benefits HbbTV benefits
Flat-fee distribution cost, Free-to-air broadcasters irrespective of the audience Access push-VoD distribution model (standard feature of TV sets and set top boxes) Guaranteed quality of service Small pay TV platforms Broader reach of VoD service CE economies of scale (100% population reachable) No proprietary push-VoD technology to integrate HD or UHD services to all viewers (beyond broadband footprint) PushVOD
40 OPTIMIZING DELIVERY – NEW SOLUTIONS FOR HYBRID TV DELIVERY
HbbTV Push-VoD is a reality HbbTV 2.0 standard ready. Will be published by early 2015 1st end-to-end system demonstrated Technology available to you !
Main partners
With Tested by IBC 2014: EUTELSAT presented the 1st implementation of hbbtv push-vod
41 OPTIMIZING DELIVERY – NEW SOLUTIONS FOR HYBRID TV DELIVERY
OVERALL ARCHITECTURE OVERALL ARCHITECTURE WITH DSL CONNECTION WITH SMART LNB CONNECTION
42 OPTIMIZING DELIVERY – NEW SOLUTIONS FOR HYBRID TV DELIVERY
OVERALL ARCHITECTURE WITH DSL CONNECTION
Smart VOD HD Cost effective & 100% coverage Smart recommendation engine 1000’ s of titles Improve customer’s stickiness Standard LNB + Sat GW + DSL (where available) High Quality Live Multiscreen Cost effective & 100% coverage Reuse already deployed technologies
4K-UHD ready Compatible with 4K smart TV Limited investment
One device supports all services DSL connected where available Use Smart LNB if connectivity not available Smart LNB + Sat GW : 100% territory
43 VALUE CENTRIC INNOVATION MAXIMIZING CONNECTIVITY Global Connectivity… …. Local Delivery.
44 MAXIMISING CONNECTIVITY - 4 PILLARS OF GLOBAL CONNECTIVITY
Global Fleet 34 satellites located on the geostationary arc between 117° West and 172° East Connection 5 continents
Global Teleport Network More than 40 owned and partner teleports – to access our satellites from any geographical location around the globe
Local Field Support Over 10,400 trained installers - to support our customers launch and grow their networks
Local Account Management 19 Regional offices all over the World
45 MAXIMISING CONNECTIVITY - GLOBAL FLEET - COVERING 5 CONTINENTS
34 high power satellites - covering 99% of the world’s population
Global Connectivity ...
... Local Delivery
46 MAXIMIZING CONNECTIVITY – GLOBAL TELEPORT NETWORK
Own teleports… In France (Rambouillet/Paris), Italy (Turin and Cagliari), Madeira and Mexico (Iztapalapa and Hermosillo Sonora) Highest technical and security standards Video broadcast, content distribution and data services
ISO 27001 certifications for Rambouillet Teleport, ISO 9001 certification for all operations: Rambouillet, Cagliari, Turin and Eutelsat Americas Teleports
Network of certified and partner teleports More than 40 teleports
Access to dedicated leased lines, PoPs & dark fibre
Portfolio of value-added ground services directly and through teleport partners
47 MAXIMIZING CONNECTIVITY – GLOBAL TELEPORT NETWORK
CERTIFIED PARTNER AND PARTNER PROGRAMME
Certified Partner Teleports Certified after an audit of their compliance according to our quality standards
Must comply with the technical features and criteria we want to guarantee our customers
Services can be integrated into a bundled solution for clients
Partner Teleports Actively seeking as many partner teleports as possible
That will invest in an uplink pointed to any of our satellites
Must sign self-certification approval according to pre-defined technical specifications and quality standards
48 MAXIMIZING CONNECTIVITY – GLOBAL FIELD SUPPORT NETWORK
Training Campaigns Satëlite In field and online On-line University over 10,400 trained installers
Videos & online training tools 300,000 views of installer videos per year
Training apps 300,000 downloads of dedicated apps per year
49 MAXIMIZING CONNECTIVITY – GLOBAL FIELD SUPPORT NETWORK
Professional satellite installer - full VSAT installations
Trained, certified Tooway installer
Trained, certified DTH installers (“Satëlite” programme)
Also work with professional nationwide installation service companies and installer training schools
The KA-SAT Pointer app All our apps are The KA-SAT Finder app available from iTunes and Google The Eutelsat Finder app Play for free
50 MAXIMIZING CONNECTIVITY – LOCAL ACCOUNT MANAGEMENT
Regional offices in 19 countries, with techno commercial account management
Americas Europe
Mexico City, Mexico Cologne, Germany Miami, Florida, USA Istanbul, Turkey Rio de Janeiro, Brazil London, UK Tampa, Florida, USA Madrid, Spain Washington DC, USA Madeira, Portugal Moscow, Russia Asia Paris, France Beijing, China Rome, Italy Singapore Turin, Italy Warsaw, Poland Middle East Dubai, UAE Africa Jo’burg, South Africa
51 MAXIMIZING CONNECTIVITY – GLOBAL PARTNERSHIP
2012 Summer Olympics in London Capacity on 4 Eutelsat satellites booked by broadcasters from Europe, the Middle East, Asia and South America to transmit live coverage of 300 events
Pope’s canonisation ceremony in HD HD broadcast, uplinked by Globecast direct from St Peter’s Square to the EUTELSAT 5 West A satellite Coordinated immediate redistribution across nine satellites to ensure global distribution
Retransmission of 2014 FIFA World Cup™ in 4k Matches broadcast in 4k Ultra HD from Rio de Janeiro to Europe
– CASE STUDIES
52 Thank you MARKUS FRITZ, Director Commercial Development & Marketing www.eutelsat.com