1. Look and Feel Issues and Usability at Imagenio Telefonicas IPTV Platform TELEFONICA DE ESPAA IPTVCompetence Centre + Multimedia Services Berlin November 28, 2007 [email_address] [email_address]

2.

Introduction to Telefonica

• Worlwide IPTV presence

Imagenio Spain- User Interface Analysis

• User Interface Structure

• • Navigation Tree

• • Purchasing Trees

• Remote Control Analysis

• Barker Channel

• Electronic Program Guide (EPG)

• Customer Demostration Videos

• Advertising

Channel Changing

Operator Usability Tools

Usability Evolution & Future Product Integration

Conclusions

Index 3. Telefnicas deep transformation over the last twenty years Clients 8.9millionsubscribers 203,2 million subscribers(*) 1984

X 21

Financial Data Revenues:2.3B Assets:10.3B Mkt. Cap:1.6B Revenues:52.9Bn (*) Assets:108.9Bn(**) Mkt Cap:107 **Bn (*)

X22

x10

x69

Spainwith a population of38 million Worldwide Latin America, Europe, Africa & Asia >market potential of 760 million Footprint

X 20

Human Resources67,000 employees More than230,000employees

x3

Note: Financial data as ofNote: Financial data as of the end of 1984 Services Diversifiedandlarge offeringofproducts& services Fixed linevoiceand otherbasicservices @

x

2006 *Dic 2006 ** Oct 2007 4. Telefnica a global and multiservice operator, present in 23 countries worldwide 5. IPTV situation inside Telefonica SPAIN : +470.000 CZECH REPUBLIC : +60.000 UK&Ireland : From mobile tobroadband, IPTV being analyzedGERMANY : IPTV commitment Chile : Innovation Commercial Field Test, massive commercial deployment in 2008 Brazil, Argentina & ColombiaIPTV lauch planed for 2008 EUROPE LATAM 6. Telefnica LATAM

FIRST generation user interface pending launch in many countries

Very generic in order to able to adapt it in many different countries that use practically same language (except local modisms and Portuguese Brazilean

7. Telefnica SPAIN- Imagenio-3 Generation User Interface O2 Telefnica CESCK REPUBLIC-3 Generation User Interface 8. Telefnica Spain- Imagenio Audience SOURCE: Internal Analysis Telefnica

Customer Base: 477,395 users Oct 2007

Audience (2,8 people per household):1.336.706 people

21%ofcustomers buy Video On Demand(average 3 films per month)

19%ofcustomers buy football( average 2 games per month )

20%ofcustomersat least aresubscribed to one service

350cities >10.000inhabitants have Imagenio coverage (aprox 45% household coverage )

Evolution Customer Base(in 000) Geographic Distribution Of ImagenioCustomer Base(in %) 45% userbaseInMadrid & Barcelona 132 % 9. User Interface Structure Advertisement & Communication Selection Multimedia & Informative Common apps across services Shortcuts Branding Branding Notifications 10. User Interface Feedback From the Customer KEYATTRIBUTES VALUED BY IMAGENIOCUSTOMERSWHEN ASKED ABOUT NAVIGATION CLEAR SIMPLE FUNCTIONAL EASY TO USE EASY TO NAVIGATE OPERATIONAL WELL ORGANIZAED PRACTICAL

The key to a good EPG is the combination ofgood esthetics and functionality

Convey personalizationthrough a dedicated section ej: My Favourites

Never loose TV viewingwhile accessing product user interface

SOURCE: 7 Focus Groups with 8 people each conducted amongst Imagenio users and potential users plus competitors customers as well- November 2006 in Madrid and Barcelona 11. Navigation Tree 12. TV Package Purchase Procedure 1 From CoD to Broadcast and select A la carta 2 Select package/channel 3 Detailed information 4 Extended Information 5 PIN introduction 6 Operation completed 13. Video On Demand (VoD) Purchase Procedure 1 Main Page 2 VoD Categories 3 Surf Titles 4 Detailed Info 5 Purchase Options 6 PIN Introduction 7 Operation Completed 14. Remote Control Analysis

Full VCR functionality for VOD and PVR

Recent introduction of:

• REC button

• Consolidation of Play & Pause Buttons

• Back to live TV button (ej: after a Shift Tv action)

Consolidation of other TV peripheral controls in service remote in order to try and save number of remotes on users table

Colored buttons orient the user to quick action functions in order to save time and improve future usage experience

Particular service related buttons

• Invoke keyboard and internet

• Go to home page, go back

• Menu and help

• Button based navigation wheel

Invoke EPG

15. Barker Channel

By default service sets on to this channels

Channel entirely produced by Telefonica with permission from content providers

The main objective is to:

• Promote new contents and services

• Promote channels

• Promote new promotions

How ever it is also a very important tool in order to show the user how to really use the different services

The following video promotes i) Spanish cinema,ii) Letters from Iwo Jima and iii) Final Report from History Channel 16. Electronic Program Guide (EPG)

EPG accessible from blue action button while TV watching-

• first the user gets more information on the program

• then he/she gets more information on all programs

Filter/SearchBY CHANNEL Filter/SearchBY THEME Filter/SearchBY TIME OF PROGRAM 17. Mini EPG

This EPG appears during 4 seconds each time the users changes channel

The objective is to constantly inform the user about the content and what he can do with Imagenio at any point in time

PVR- zapping functionality(shows time delay towards real time TV and time scheduled for recording) Channel Number Invoke-Metadataon content , EPG, Stereo/Original Language Version Content Name Content Duration 18. Demostration Videos Telefnica has produced a series of videos to teach users about the service capabilities of the application.The following video is about the users My account where a user can see his/her consumptions and the different payment methods he can use (promotion, gift certificate, real purchase): 19. Spaceon digital Magazine Pure Advertising FormatsPromotes Internal Content & Advertiser Brands 10 sec. spotbefore some VOD, SVOD and Trailers Banneron user interface SponsorMiniguide Various spotsbefore, during intermission and after Football matches 20. Integrated Advertising Formats Adapt a PC site and convert it to a TV Site 21. Channel Change Improvements 1,5-2 seconds External Enhancements: MS Instant Channel Change, Cisco Rapid Channel Change Implies high investments or strong modifications

• Offer to the user what they want and they

• wont look for r-t profiling and

• r-t recommendation engines will be the keys

• of Next Generation Middleware capabilities.

• Why Channel Change is important?

• It was important in one-way TV services,

• IPTV allows us for a different approach

Channel Change Variables IR modem DSLAM STB 0,43s*x3 (*)Perceived Quality of Channel Zapping, Contribution 24 ITU-T Q9/SG12,February 2006. 22. Operator Tools for Better Usability Flexible Interface Management System

System that enables the operator to change any title or section of the applicationwithout any technical knowledge in less than 30 minutes

• _ Enables stimulation of specific VOD usage

• _ Enables fast promotion of new sections

• _ Gives the end user the feeling that content is being constantly refreshed

= Cinema IMAGENIO LANDING PAGE Cycles VOD INITIAL PAGE Bruce Lee 23. Main Evolution Trends Real Time Audience MeasurementEPG 3rd Party Development Integration

Tools for development

Templates for quick developments

USABILITY-END CUSTOMER End Customer inputs to be included in its creation Remote Control Platform Interface Personalization WEB 2.0 * Purchasing

To rank content

Show most popular content

LAYOUT-OPERATOR Adapt to Operator needs Communication New ServiceInformation Personalization Skins Advertising Billing Purchasing

Based on User Behavior

Based onUser Defined Criteria

Friends recommendation

RECOMENDATION ENGINE

Basedon promotion campaigns

Based on editor criteria

24. Some Evolution Trends Program Guide

Picture inpicture functionality: Example

Main program watched Program in search 25. Some Evolution Trends Event Notification

Customers can program their TV to notify them when an event of interest is on the air.

So while they are watching TV, a banner will appear onscreen to remind them.

26. Some Evolution Trends Pictures functionality

Users can get an enjoyable experience playing photos through the TV, and sharing them with other IPTV customers subscribed to Service.

27. Some Evolution Trends Multiple picture- in- picture

TV spectators could enjoy watching multiple camera angles of a sporting event or concert.

This special feature could be seen as an useful element for customer value creation

28. Some Evolution Trends Unified Messaging 29. Some Evolution Trends Videoconference

Integrated caller ID-It shows the name and number of an incoming telephone call

This convergence between television and telephone allows customers to continue watching the show and, at the same time, deciding whether they want to pick up the phone or not.

Unnecessary interruptions are reduced and watching TV becomes a more pleasant experience.

30. Conclusions

IPTVusability is dependent on multiple factorsthat improve the whole TV viewing experience not only the user interface

User interfaces shouldconvey personalization , goodestheticsandfunctionalityand mustnever lose TV viewing

Additional product/packages/contentpurchasingmust be done from application and must be assimple and flexibleas possible

Remote controlsmust besimplebut there a tradeoff because they need to holdlots of functionality

EPGsare thebackboneof IPTV services- have them integrated, device ubiquitous and have them hold metadata on the content

An image says a 1001 words- use videos as much as you can

In order toavoid channel changeissues, bring to the main page what the user would like to have

Open the platformfor multiple development pipelines and enhance a creative environment for new applications fromthird parties .

31.