The Business of Television

The Business of TelevisionPowerful Open Video Delivery

Software

Mark GrayChairman

Chief Executive Officer

The Business of Television 3

Kasenna is the world’s only open and complete IPTV solution including content, content management,

security, applications, and video network infrastructure

We enable customers to quickly and easily deploy profitable, triple-play video services and brand them as

their own.

The Digital Tollroad-Content on Demand

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The Digital Tollroad-Content on Demand

• Who’s Selling– Studio and other content owners-Direct

– Aggregators (In Demand, TVN, ViewNow)

– Download Services

• Who’s Buying– Telco

– Cable

– Satellite

– Hospitality

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Service Provider Digital Home

Around the Home

DMADMA A/V ReceiverA/V Receiver

DVD Players DVD Players STB STB

Home TheaterHome Theater Game BoxesGame Boxes

TVsTVs PVR/DMRPVR/DMR*Other names and brands may be claimed as the property of others

Laptops, Portable Media Players,Laptops, Portable Media Players,

PDAs, Cell PhonesPDAs, Cell Phones

On the Go

Broadcast channels, Broadcast channels,

Movies, Music, GamesMovies, Music, Games

Films, Local Programming,Films, Local Programming,

Internet AccessInternet Access

CreateCreate

EnjoyEnjoy

EntertainEntertain

GameGame

On the PC

SP AccessSP Access

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State of the Industry

• Fight for customers between Satellite, Telco and Cable

• Differentiation is key– Telco: All IP switched network -- wired - wireless

convergence – elegant architecture for the future

– Cable: HFC networks (will be IP over time), more advanced today (for video)

– Satellite: Economies of scale, limited interactivity

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View across Regions

• North America– Cable is strong. HFC upgrades done

• SA & Motorola Chokehold (STBs and Conditional Access) – breaks in 2006

• RBOCs are waking up– Showing strong ROI

• Europe– Telco is strong, cable is weak– VDSL, ADSL2, etc. is predominant

• Looking for solutions to use limited pipe (H.264)

• Asia– Cable is weak, Telco is strong– Wired-Wireless convergence is important– India and China are sleeping giants!

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Market Needs

• IP Television has required several hardware & software components to be integrated and functional• Content Licenses

• Content Management

• Content Tracking/Reporting

• “Middleware”

• Video Network Management

• DRM/Encryption

• Video Servers

ApplicationsContent Infrastructure

• Until now, operators are forced to choose from myriad of options. Integration cycles are long, complex, risky, costly.

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Kasenna’s Approach

Physical Network(Switched IP, PON, HFC …)

Video (and Audio) Content Delivery Network(Logical network Implemented by

Kasenna’s Video Delivery Platform)

Transactional Network(Implemented by Kasenna Middleware AND

providers infrastructure – OSS, BSS (COS, in Reliance’s case)

VODPVR

NPVR3rd-partyGames

3rd-partyGames

Other 3rd-party

Apps(email, chat, etc.)

Other 3rd-party

Apps(email, chat, etc.)

Broadcast

MusicDownloads,

DigitalCinema,

Etc.

MusicDownloads,

DigitalCinema,

Etc.

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Kasenna Position

• Advanced & cost-effective end to end solutions• Video Servers running on

mainstream H/W (MediaBase XMP)

• Video Network Management System (vFusion VNM)

• Video Application Server for Integration and Application deployment (vForge VAS)

• Encryption/DRM system for broadcast and VOD

• Pre-integrated with Broadcast headends

• Integrated with over 24 different STBs

ApplicationsContent Infrastructure

• Proven, scalable, cost-effective and faster time to deploy

• Global Market Leader

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Video Networks are the PVR

Content Aggregation

Center

Headends

Caching Network

Caching Hubs

Access Network

HomeNetworks

BusinessRulesReports

ContentPreparation

ContentIngest

ContentPackaging

ContentPropagation WAN

Headend-2

VS

BMS

VS

VS

Content Propagation Network

Headend-1

BMS

VSVS

BMS

VS

AccessNetwork

VSVS

VS

GigE or ATM

AccessNetwork

VSVS

VS

G-QAM or DSLAM

Headend-n

BMS

VSVS

BMS

VS

Hub-1

Hub-2CachingNetwork

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Key Issues

• Content, Content, Content– Without good and steady content, service languishes

• HK Broadband, PCCW, etc.

• Technology– Physical Network Design

– Content Delivery Network Design

– Scalability

– Applications

• Axes of profit are Network Management and Service Roll out

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The Business of Television