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IPTV Overview

Presented to Internet2 IPTV Summit


October 8, 2007
Wes Simpson
Telecom Product Consulting

Internet TV Explodes
March 2007 traffic data shows huge growth
Total streams from US sources: 7 billion
Total unique viewers: 126 million
YouTube: 1.1 billion streams, 53 million viewers

Compares with 100 million streams per


month in mid-2006 for YouTube
Average viewer consumed 55 streams in
March 2007, or nearly 2 per day
2007 data from comScore press release, June 4, 2007

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Why TV over the Internet?


Many user-friendly features
Choose your content and timing (a giant DVR)
Millions of titles available, mostly for free
Social aspects (sharing, linking)

Simple for providers


Uses existing networks (no need to build one)
No negotiations for spectrum or CATV space

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Why Use IP for Video?


Flexibility One network for e-mail, file
transfer, instant messaging, voice, video
Cost Very inexpensive in local area,
reasonable in metro and wide area
Ubiquity Reach anywhere in the world,
vast majority of businesses and most
households have Internet connections

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A Few Key Terms


IPTV Internet Protocol TV
Uses private networks, set top boxes (STBs)
Closely resembles CATV and DTH Satellite

Internet Video
Uses public networks, PCs or network appliances

Mobile TV
Video delivery to mobile phone handsets
Can be IP data or broadcast (DVB-H)
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Video Compression
All digital video is delivered to consumers in
compressed form
Broadcast TV (DTV, HDTV), Satellite TV, IPTV,
CATV, Internet Video, DVD and HD-DVD

MPEG-2 is only approved format for


Broadcast TV
MPEG-4 is often used in IPTV
Other formats include WM9 (VC1)
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Video Rate Comparison

Uncompressed HD Video 1485 Mbps


Uncompressed SD Video 270 Mbps
Video Cameras 25, 50, 100 Mbps
HD-DVD 30 Mbps, DVD 8Mbps
MPEG-2: HD 12-20 Mbps, SD 3-8 Mbps
MPEG-4: HD 6-10 Mbps, SD 1.5-3 Mbps

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Encoders and Decoders


MPEG compression is highly asymmetrical
Encoders are much more complex (and
expensive) than decoders

MPEG-4 is more complex than MPEG-2


2x more efficient compression (half bandwidth)

Both hardware and software decoders


Software typical for Internet Video
Hardware typical for IPTV
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Internet Video vs. IPTV


Related terms, with different meanings
Both refer to video delivery over IP networks
Both used compressed video with decoders
located at the viewers premises
Both can be used for live, pre-recorded and
Video-on-Demand (VoD) applications
But, significant differences exist

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Internet Video
Wide range of sources, compression techniques
Viewed on personal computer or network appliance

Must operate over unreliable network


Delayed or missing packets
Wide range of connection speeds

Dedicated stream to each viewer (no multicast)

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Internet Video Streaming


Architecture

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Internet Video Delivery Options


Streaming
Video file is delivered to viewer at same rate
that it plays out; used for live events

Download and play


Video file is completely sent to viewer and then
played out immediately; prerecorded only

Podcasting
Video file is delivered to viewer for playout in
future; grants some ownership to viewers
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IPTV
Continuous broadcast of video channels
Similar to broadcast, CATV or satellite
Viewed on television via STB

All channels are compressed the same


Typically implemented on private network
Multicasting supported
Rate/priority control of non-video data

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IPTV Basic Architecture


Video Serving
Office (VSO)
Satellite
Video
and Local Compression
Video
Receive

Video Trunking
DSL Access
Multiplexer

Local (DSLAM)
End Office
(LEO)

DSL
Modem
Digital
Subscriber
Line (DSL)

IP Set Top
Box (STB)

Phone

Home Viewer

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IPTV Delivery
DSL circuits have very limited bandwidth
Typically 8-20 Mbps downstream to viewer
Limited number of video streams
One stream per television

Channel change occurs inside network


Switching required at DSLAM
Different from Broadcast, Satellite and CATV

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IPTV vs. Internet Video Summary


IPTV
Continuous TV channels
Private network
Hundreds of channels
STB with Television
Walled content garden
Similar to CATV
Paid by subscription

Internet Video
Discrete video files
Public network
Millions of files
PC or network appliance
Viewer beware
Similar to Web surfing
Often free

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Mobile TV
Can be similar to Internet Video
Uses datacom network (such as 3G)
Discrete video files (mobisodes)

Can also be similar to IPTV


Uses DVB-H or other broadcast network
Continuous channels of video

Key issues are coverage, content prep, and


handheld battery life
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Multicasting Issues
Great for live content all viewers see the
same content at the same time
Limited interactivity no fast-forward
Only on private networks Internet is not
multicast-enabled
Often used in IPTV for broadcast TV

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Summary
Internet Video: Discrete files in variety of formats
from many sources unicasted over the Internet to
PCs; uses streaming, download+play, or podcasting
IPTV: Continuous channels of uniform format,
licensed content multicasted via private networks to
STBs and consumer TVs; uses live streaming
Rapid development is blending these categories
Both technologies have roles to play in the future

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IPTV Issues

Obtaining Content Rights and Data


Cost of Digital Head-End
Speed of Channel Change
Bandwidth per Stream
Scaling to Large Viewer Counts

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IPTV Business Models


Presented to Internet2 IPTV Summit
October 8, 2007
Wes Simpson
Telecom Product Consulting

Key Television Services

Local Over-the-Air Channels (Must Carry?)


Basic-Tier Cable Channels (ESPN, CNN)
Premium Cable Channels (HBO, Showtime)
Local Advertising
Emergency Broadcast System
Video on Demand

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IPTV System Cost Elements


Cost Element

Cost Basis

Description

Video Content

Recurring fee per month


per viewer

Paid to Content Suppliers, such as


Broadcast Networks

Delivery
Network

Fixed, Up Front

Cost of IP Network, part common


equipment, part per-subscriber

STB (Set Top


Box)

Fixed Per Subscriber

Often rentals, sometimes purchased by


consumers

Digital Head End Fixed, Up Front

Receives Video Signals, converts into


proper IP format

Content Servers

Fixed, scales with capacity

Used for Video-on-Demand and


Advertising

EPG (Electronic
Program Guide)

Recurring, scales with


number of channels & subs

May be produced locally by IPTV


provider or acquired from service bureau

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Costs of Programming
Network

Fee Per Subscriber Per Month (2006)

ESPN

$2.91

Fox Sports

$1.67

TNT

$0.89

USA

$0.47

CNN

$0.44

Nickelodeon

$0.41

TBS

$0.39

FX

$0.36

MTV

$0.29

ESPN2

$0.24

Source: Kagan Research, LLC, a division of JupiterKagan, Inc.

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Payment Models
Subscription
Classic model used by CATV, DTH

Advertising Supported
Over-the-air broadcasters

l Carte Channels
Pay only for the channels that you want

Pay-per View/Everything on Demand


File servers deliver (almost) all content
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Content Rights Acquisition


Obtaining legal rights to distribute content
that belongs to third parties
Most TV network content is owned by others

Often the biggest challenge for IPTV


providers
Franchise territories

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Content Aggregators
Negotiate deals with broadcast networks
Example: IP Prime for NRTC members
350 channels, 40 programmers

Can also collect, distribute VOD content


Example: TVN Entertainment Corp.
3000 hours of VOD content per month

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VoD Pricing Models


Pay-per-View
Subscription VOD
Everything on Demand

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The DVR Issue


Digital Video Recorders (a.k.a. TiVo)
Hard disk inside STBs
Revenue source for providers box rentals

Network DVR
Cablevision lawsuit

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IPTV Delivery Architecture


and Technology
Presented to Internet2 IPTV Summit
October 8, 2007
Wes Simpson
Telecom Product Consulting

IPTV Architecture
Video Source Office

Emergency
Alert System
Receiver

Emergency
Alert
System

EAS
Manager

Character
Generator

Interactive
Program
Guide

Billing
System
Interface

10:00

STB E-mail
Internet
Manager

Interactive
Program
Guide

Video
Services
Manager

Network Management
System

VHS/DVD
Player
Ad Insertion
System

Demodulators
Local
Off-Air
Antenna

Head End
Video
Encoders
Monitoring
Switcher

DSL Manager
Video
Aggregator
Gig E

Digital
Turn
Around
Processors

Receivers

Video on Demand
Server

DSL Access Multiplexer


DSL Modem
Internet
Feed

Internet
Access
Router

IP Video Services

Data
Switch/
Router

Data Services

Digital Head End


Manager
Gig E

Content Processor
Digital Head End System

Satellite
Dish

IP
Video
Switch/
Router

DSL
Splitter

DSL
Splitter

STB
DSL Modem
IP
Video

Copper
Loop
Voice

Video
+ Audio

IP
Data

Telephony Services

Local End Office

Home Viewer

Courtesy of Tut Systems

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Middleware

User Identification
Screen Navigation Functions
Text and Menu Generation
Electronic Program Guide Primitives and Utilities
Channel Changing
Back Office Integration
Interactivity

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STB Functions
Network interface, to receive the IPTV signals and
transmit user commands
Video and audio Outputs, which is connected to the
viewers video display and speaker system
User interface, both on the front panel of the STB and by
way of an on-screen display and remote control
The following features are often also provided in STBs
Conditional access hardware/software, to support
secure viewing of valuable content
Hard disk drive, for recording video programs
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Program Guide
On-screen display of content on each
channel
Sources of Data
TV Guide and several others

Navigation support inside STB


Channel change commands sent to network
Issue: How to do channel preview?
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IPTV Contribution Architecture


and Technology
Presented to Internet2 IPTV Summit
October 8, 2007
Wes Simpson
Telecom Product Consulting

Contribution Networks
Gather content from many sources
Wide variety of architectures
Satellite
Leased Telco circuits
Terrestrial (including mezzanine IP compressed
links)

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Transport Applications
Live Sports

Contribution
Remote News
Collection

Broadcast Affiliate

Primary
Distribution

Broadcast
Transmitter

Program
Originator/Broadcaster
Master CATV
Headend

Metro Access
(HFC)

Residence

Enterprise

Increasing Compression

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Digital Turnaround
Converting incoming digital signal into
proper form for distribution network
Typically, all channels are identical format

Codec change
Rate Shifting
Bug insertion

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Typical IPTV System


Head End

Primary
Distribution

Decompress
+
Recompress

VOD

Local

High Speed IP
Video
Compress

Broadcaster

DSLAM

Delivery
Network
DSL

Decompress
STB
DSL

Data

Local CO or Hub

Home Viewer

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Rebalanced IPTV System


Replace satellite primary distribution with
uncompressed IP return links
Head End
IP Adapt
+
Compress

Primary
Distribution

VOD

Local

High Speed IP
Video

DSLAM

Delivery
Network
DSL

Decompress
STB
DSL

Data

Broadcaster

IP Network
Adapter Local CO or Hub

Home Viewer

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Thanks for
your time and attention.
Any questions?

Wes Simpson
Telecom Product Consulting
wes.simpson@gmail.com
+1 203-799-1622

Available at booth 8G4-08 at Computer Books Centre


or from www.focalpress.com or Amazon
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