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

Telecom Product ConsultingTelecom Product Consulting

IPTV Overview

Presented to Internet2 IPTV Summit

October 8, 2007

Wes Simpson


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


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


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


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, PC’s or network appliances

• Mobile TV– Video delivery to mobile phone handsets– Can be IP data or broadcast (DVB-H)


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)


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


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


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


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)


Internet Video Streaming Architecture


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


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


IPTV Basic Architecture

Home Viewer

Satelliteand LocalVideoReceive

Video Compression

Video ServingOffice (VSO)

Video Trunking

LocalEnd Office

(LEO)

DSL AccessMultiplexer

(DSLAM)

DigitalSubscriberLine (DSL)

DSLModem

IP Set TopBox (STB)

Phone


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


IPTV vs. Internet Video SummaryIPTV Internet Video

Continuous TV channels Discrete video files

Private network Public network

Hundreds of channels Millions of files

STB with Television PC or network appliance

Walled content garden Viewer beware

Similar to CATV Similar to Web surfing

Paid by subscription Often free


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


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


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


IPTV Issues

• Obtaining Content Rights and Data

• Cost of Digital Head-End

• Speed of Channel Change

• Bandwidth per Stream

• Scaling to Large Viewer Counts


IPTV Business Models


October 8, 2007

Wes Simpson


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


IPTV System Cost ElementsCost 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


Costs of Programming

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

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


Payment Models

• Subscription– Classic model used by CATV, DTH

• Advertising Supported– Over-the-air broadcasters

• Á là Carte Channels– Pay only for the channels that you want

• Pay-per View/Everything on Demand– File servers deliver (almost) all content


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


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


VoD Pricing Models

• Pay-per-View

• Subscription VOD

• Everything on Demand


The DVR Issue

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

• Network DVR– Cablevision lawsuit


IPTV Delivery Architectureand Technology


October 8, 2007

Wes Simpson


IPTV Architecture

Home Viewer

CopperLoop

DSLSplitter

DSLSplitter

STB

DSL Modem

IPData

Voice

IPVideo

Video+ Audio

DSL Access Multiplexer

Content ProcessorDigital Head End System

Telephony Services

Local End Office

Video Source Office

DSL ModemData

Switch/Router

InternetAccessRouter

Data Services

InternetFeed

IP Video Services

IPVideo

Switch/Router

EmergencyAlert

System

LocalOff-Air

Antenna

SatelliteDish

EmergencyAlert System

Receiver

10:00

VHS/DVDPlayer

Ad InsertionSystem

CharacterGenerator

Gig E

Gig E

Network ManagementSystem

EASManager

InteractiveProgramGuide

BillingSystemInterface

STB E-mailInternet

Manager

InteractiveProgram

Guide

VideoServicesManager

Video on DemandServer

Digital Head EndManager

DSL Manager

Receivers

Demod-ulators

MonitoringSwitcher

Head EndVideo

Encoders

DigitalTurn

AroundProcessors

VideoAggregator

Courtesy of Tut Systems


Middleware• User Identification

• Screen Navigation Functions

• Text and Menu Generation

• Electronic Program Guide Primitives and Utilities

• Channel Changing

• Back Office Integration

• Interactivity


STB Functions • Network interface, to receive the IPTV signals and

transmit user commands

• Video and audio Outputs, which is connected to the viewer’s 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


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?


IPTV Contribution Architectureand Technology


October 8, 2007

Wes Simpson


Contribution Networks

• Gather content from many sources

• Wide variety of architectures– Satellite– Leased Telco circuits– Terrestrial (including mezzanine IP compressed

links)


Master CATV Headend

Program Originator/Broadcaster

Enterprise

Metro Access (HFC)

Broadcast Transmitter

Residence

Broadcast Affiliate

ContributionPrimary

Distribution

Live Sports

Remote News Collection

Increasing Compression

Transport Applications


Digital Turnaround

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

• Codec change

• Rate Shifting

• “Bug” insertion


Typical IPTV System

Broadcaster

Head End

Local CO or Hub Home Viewer

DSLAM

High Speed IP

Decompress+

Recompress

Compress

Decompress

VODLocal

STB

Data

VideoDSLDSL

PrimaryDistribution Delivery

Network


Rebalanced IPTV System

Broadcaster

Head End

Local CO or Hub Home Viewer

DSLAM

High Speed IP

IP Adapt+

Compress

IP NetworkAdapter

Decompress

VODLocal

STB

Data

VideoDSLDSL

PrimaryDistribution

DeliveryNetwork

• Replace satellite primary distribution with uncompressed IP return links


Thanks for

your time and attention.

Any questions?

Wes SimpsonTelecom Product Consulting

[email protected]+1 203-799-1622

Available at booth 8G4-08 at Computer Books Centreor from www.focalpress.com or Amazon

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