The 4K business through the value chain René Lambers Principal Consultant Building a Better Connected World www.huawei.com Topics • The video value chain • The effect of 4K • 4K service releases • Take away’s Building a Better Connected World www.huawei.com Video value chain Content creation Content Platform Distribution Access Devices Aggregation / aggregation UI share 50% 10% 15% 10% 15% (estimate) Content Bundling branding Head-end, encoders Outlet channels to Access network STB, Android & iOS User interface production, actual and pricing of content SI, provisioning, push packaged DSL, fiber, LTE, HFC, devices through which making of new for consumer billing content DVB-C/T, OTT, 4G Mobile terminals and consumers obtain description content AD insert, data Network capacity for eMBMS tablets content mining, CRM wholesale or retail Smart TV App store SD, HD, 4K, 8K CDN Film studios Broadcasters Infrastructure vendors Telco’s Telco’s Device vendors Telco’s TV producers TV stations MSO’s MSO’s MSO’s Sport Leagues ISP’s players Warner Bros, BBC, RTL, BSkyB, E///, Arris, Huawei, Astra, Orange, Free, Swisscom, BT, Cisco, Intel, Huawei, AT&T, Belgacom, T- Universal, FOX, Springer, Cisco, VMX, Rovi, T-Home, Time UPC/Ziggo, KPN, Broadcom, Arris, Home, KPN, Buena Vista, Pixar, Harmonic, ZTE, Warner, O2, Canal+, AT&T, Verizon, Samsung, LG, Sony, TeliaSonera, Telenor, Endemol, FIFA, Nagra, SeaChange, TeliaSonera, Telenet, Telecom Italia, Apple, HTC, Pace, Telefonica, UPC, examples UEFA Agama Telenor, Vodafone Telefonica, Telenor, ADC, ZTE, Nintendo, Yahoo, Ebay, Amazon, TeliaSonera, Microsoft Vodafone Deutsche Telekom YouTube (UGC), Al Netflix, Hulu+, Zattoo, Akamai/Octoshape, Google (US) Roku, Tivo/DS, Apple, Facebook, Whatsapp, Jazeera, 3D Pixar Amazon TV, Vudu, Limelight, Amazon Amazon Fire, Nexus iTunes, Spotify, DailyMotion, Magine YouTube, GooglePlay, new entrants Twitter, AndroidTV Page 3 HUAWEI TECHNOLOGIES CO., LTD. 4K value chain Content creation Content Platform Distribution Access Devices Aggregation / aggregation UI Film studios Broadcasters Infrastructure vendors Telco’s Telco’s Device vendors Telco’s TV producers TV stations MSO’s MSO’s MSO’s Sport Leagues ISP’s TV manufacturers are drivers of the chain. Needed a new feature to increase the sales of new screens Followers. They are interested on the new Despite stronger formats for increased sales but also face encoding increased increased production costs demand for network storage and streaming capacity New players using OTT distribution Face the network impact. Driver for fiber 4K players and STBs New and adapted access sales. Can benefit in an early market. become available portals specifically for 4K content 4K user interface 25 Mb/s required 15Mb/s used Page 4 HUAWEI TECHNOLOGIES CO., LTD. 4K is more than a bigger picture 4K provides high performance equals to the 35mm film strip More colors higher dynamic range smoother experience with higher frame rate 2014~2015, 8~10bits; 2017~, 10~14 2014~2015, p50/60; 2017~, p100/120 Cinema level 4K color space HDTV standar d color space Page 5 HUAWEI TECHNOLOGIES CO., LTD. Key operators world-wide release 4K services in 2015 BT launched Ultra HD sports channel in August 2015 New HBBTV2.0 usecase that was tested at Roland Garros, June 2015 Page 6 HUAWEI TECHNOLOGIES CO., LTD. Huawei help Sichuan Telecom commercial launch China Telecom’s first 4K service Huawei FTTx Network Huawei 4K Video Platform Launch 4K service step Huawei 4K TV STB by step coding H.265 Frame rate 25-30F/s Bit rate 30Mbps EC6108V9@3798M December, 26th, 2014 Based on the excellent performance in Sichuan 4K Channel launch Telecom 4K project, Huawei is 4K Service 4K VOD service (CCTV 4K movie channel) undoubted a world-leading 4K Trial launch video solution provider Cooperation and 4K 2012 2013 2014 2014.H2 2015 2016 ready capability Video + HD-Video + Blueray Video + Broadband Broadband Broadband building Page 7 HUAWEI TECHNOLOGIES CO., LTD. Sichuan Telecom is a typical case, that promotes FTTH deployment by providing 4K experience 1, Acquires 1m subs. in 6 months 2, Establish partnership with 4K content provider LETV, Sohu 2012 2013 2014 2015 Service SD Live + SD VOD 720p Live + 1080p VOD 720p Live + Blueray VOD Roadmap 720p Live + 4K VOD Bundle Plans 4M / 2M (SD BB) 20M / 8M(HD BB） 50M / 20M(Blueray BB) 100M / 35M(4K BB) Business developmen FTTH Home Connect: 7m Home Connect: 1m Home Connect: 3m Home Connect: 5m t Development (estimated) iTV 3.8m XXX 1.8m Development (10%@50M plans) (20%@50M,10%@100M) Content CCTV + TV Stations + CCTV + TV Stations + Content CCTV + TV Stations Cooperation YouPeng(HD) YouPeng(Blueray) Page 8 HUAWEI TECHNOLOGIES CO., LTD. Key Take Away’s • The technology and eco-systems are ready for it • 4K is mainly pushed by TV manufacturers • OTT delivery will be earlier than delivery over managed networks • Content is still key • HDR is more likely to be an early mass market product than 4K resolution Building a Better Connected World www.huawei.com Thank you www.huawei.com Copyright©2015 Huawei Technologies Co., Ltd. All Rights Reserved. The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice. 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