Deploying VOD in Europe:

1

• Deploying VOD in Europe
• Challenges, Optimisations Results
• SCTE Autumn Lecture Meeting
• Gay Ellis, ntl

2
Welcome to ntl

• Overview of ntl
• Existing digital TV architecture
• Adding VOD
• Analysing cost
• Optimising video quality bit-rate
• Content proposition
• Customer response
• HDTV?

3
Welcome to ntl

• ntls on-net services
• Triple-play over HFC UTP
• 8m homes passed
• The UKs largest provider of consumer broadband
  services
• 1.2 million customers
• 2 Telco
• 2.5 million customers
• 2 Pay-TV provider
• 1.6 million digital
• 0.6 million analogue
• All TV via set-top box

4
ntl Digital Television

• A Family Pack offering that includes over 150
  digital television channels
• Add-on premium channels from Sky, Foreign
  Language providers, Kids, Sports and Adult
• Additional services including enhanced TV,
  interactive TV, TV email, parental controls,
  subtitles and a simple to use on screen guide
• NVOD staggered broadcast PPV since 1999
• The next step - ntl on demandtrue on demand
  television offering a wide variety of content all
  available via existing digital set-top boxes
• Replaces and enhances existing NVOD service

5
TV Architecture
Regional Headend
Regional Headend
National Network
Regional Headend
Hub
NVOD
Hub
6
TV VOD Architecture
Regional Headend
Content Preparation Centre
Encoding
VOD Servers
Content
Content
Store
Distribution
Regional Headend
National Network
Regional Headend
Hub
Hub
7
Regional Headend Architecture
Regional Headend
VOD
Playout
GigE DWDM Transmission
VOD
Playout
Servers
VOD
Playout
Servers
Servers
National Network
Broadcast
Data Network
8
Hub Architecture
Resegmentation
Hub
Node
QAM modulators
GigE DWDM Demultiplexer
QAM modulators
QAM modulators
RF Combine
Lasers
Optical Receiver
RF Amp
CMTS (Davic/DOCSIS)
STB
9
Cost Sensitivity Analysis
Servers Resegmentation QAMs
GigE
where

• Key sensitivities
• R(M) bitrate per QAM
• Cr Contention Ratio
• B Bitrate per stream

10
Sensitivity Diagram top down
of VOD Frequencies
QAM 64/256
Product Mix, Movies, SVOD
Legacy Build Architecture
Purchase Behaviour
Asset Duration
Buy Rate
Network Resegmentation
Video Bit Rate
QAMs per region
No Segments
Customer VOD streams
Gige required
Video Servers required
Video Servers required per region
Contention Ratio
Customer Numbers
Streams required
Fibre Availability and Topology
Regional Data
Video Bit Rate
11
Optimisation (1)
Modulation

• 64 QAM 6 bits/symbol, 38 Mbit/s net in 8 MHz
  channel
• 256 QAM 8 bits/symbol, 50 Mbit/s net in 8 MHz
  channel
• More capacity from existing plant
• Higher C/N and network quality required

Contention Ratio

• Not all customers will simultaneously use VOD

VOD enabled customers in area
Contention Ratio
Active VOD customers

• US deployments have seen ratios of 151 251
• Dependent on pricing, content quality, user
  behaviour

12
Predicting Contention Ratio


Monthly buy-rate
NVOD Buying Pattern
VOD Contention Ratio Prediction
13
Bitrate per Stream

• US deployments at 3.75 Mbit/s
• Cable Labs recommend reduced resolution
  (528/352x480)
• Bitrate and resolution for European market ?
• ntl existing NVOD service at full resolution and
  3.6 Mbit/s
• Trend to bigger screens and component
  connectivity
• Quality / cost tradeoff
• Service must be at least as good as NVOD
• 10 saving in bitrate saves 10 on total project
  cost
• 1.6m MPEG-2 only set-top boxes
• MPEG-4.10 probably best choice for greenfield
  deployments.

14
SD Video Bitrates
Channel Mbps
6
DiviTrack - LookAhead Statistical Multiplexing
5
VC-1
MV50
4
MV100
1st integrated MPEG-2 Encoder
CBR
MPEG-4 AVC
VBR
3
MPEG silicon DVxpert (E4)
2
ClearMotion Integrated Noise Reduction With MCTF
1
2004
2005
2003
1996
1997
1998
1999
2000
2001
2002
NVOD
VOD
Slide courtesy of Harmonic
15
Bitrate testing
Single blind DSCQS Subjective Testing (ITU-R
BT-500.10)
Excellent
Good
Fair
Basic methodology
Poor
Bad
A
B
Objectively selected test material
16
Bitrate Testing Results
17
Content Proposition
Kids A selection of some of the top kids shows
all on demand. Whether its one show, or a whole
series - with no annoying adverts. A selection
of programmes free, and others from 20-50p for
24hrs
Pick Of The Week A pick of some of the best
shows from the BBC channels from the last 7
days. A completely free service that ensures you
never miss Eastenders again!
Movies A video store in your own home! Hundreds
of movies, from new releases to classic
library. From 1.50 to 2.50 for 24hrs, with no
late fees, no trip to the store, and no planning
required!
Music A music video jukebox that you control -
whether its your favourite video or a collection
of your favourite band. A selection for free,
and others from 20-50p for 24hrs
Adult A wide selection of all types of Adult
programming available securely in your own
home. All titles charged discretely on the bill
at 5 per title.
TV Hits A wide variety of your favourite TV
shows from the latest hits to old-time
classics. A selection for free, and others from
20-50p for 24hrs
????
18
Usage and users to date

• Roll-out started in January 2005 in Glasgow. Over
  400K VOD enabled customers now.
• To date with initially conservative marketing
  user numbers have been growing well in early
  regions approximately 60 of customers have
  accessed the service
• Our customers have now accessed over 3 million
  VOD views

Users using playback controls

• Users are averaging over 7 views per month
• Response rates to VOD marketing material is
  outperforming all standard activity
• Post-launch research has shown high levels of
  awareness and satisfaction

Notes Source ntl VOD reporting, August 2005
19
Usage Patterns (1)
Share by total viewing time
Share by selections
20
Usage Patterns (2)
Streams
Time
21
Contention Ratio
Streams
Time
22
Top Titles June/July

• MOVIES
• THE MANCHURIAN CANDIDATE
• WHITE CHICKS
• THE TERMINAL
• THE FORGOTTEN
• THE PRINCESS DIARIES 2
• COLLATERAL
• SHARK TALE
• ANCHORMAN
• THE PUNISHER
• THE STEPFORD WIVES

• MUSIC
• AKON LONELY
• AXEL F CRAZY FROG
• TUPAC GHETTO GOSPEL
• THE GAME HATE IT OR LOVE IT
• EMINEM MOCKINGBIRD
• JAMES BLUNT YOURE BEAUTIFUL
• TONY CHRISTIE AMARILLO
• 50 CENT JUST A LIL BIT
• MARIAH CAREY WE BELONG TOGETHER
• 50 CENT CANDY SHOP

• KIDS
• DINO THUNDER
• BALAMORY
• SPONGEBOB
• TWEENIES
• RUGRATS

• POTW
• EASTENDERS
• LITTLE BRITAIN
• HOLBY CITY
• TOP GEAR
• CASUALTY

23
Product Roadmap

• Future content plans are in development with a
  wide variety of options under review
• The addition of new content categories to add to
  the current offering
• Pick of the Week - expansion of Pick of the Week
  to include additional broadcasters and extra
  volume
• Local content with a centrally managed service
  we remain capable of offering programming locally
• Niche content specialist and niche providers
  will in time be added to the platform
• Subscription (SVOD) offering parts of the
  service for a fixed one off monthly fee will be
  an important addition to the service
• Enhanced functionality giving people more
  control. e.g. multiple playback controls skip,
  chapters etc

24
HDTV?

• HDTV set to become mass market in Europe in next
  two years
• VOD infrastructure HDTV capable
• Same spectrum can deliver SD and HD services
• Will require HD capable set-top boxes
• Trialled delivery of HDTV over IP (ADSL2) on ntl
  network in Spring 2005
• Content supplied by Euro-1080

25
Conclusions

• ntl now biggest VOD operator outside North
  America
• Successful launch, customers delighted with
  experience
• Optimisation of video encoding network can
  yield substantial cost savings
• Possible to deploy HDTV over VOD infrastructure

My son (age 5), likes the idea of watching
certain kids shows at whatever time he can, I
have also found that he can easily navigate the
VOD area, Naveen.
The system I think is very easy to use, nice and
clear and simple. Alistair Owen.
the choice a vast improvement. It's like going
from BW to colour and those still stuck on BW
(i.e. those with Sky) have no idea what they're
missing I showed it to a few colleagues who
couldn't believe the amount of films available,
the instant availability and the excellent prices
compared to Sky's 20-odd over-priced movies shown
every up to couple of hours Jackie G.
I love it!!! I would definitely recommend it to
friends I especially like how there is
something that suits the whole family and there
are no arguments when programmes clash Carol
McGrotty.
Notes (1) Source ntl Trial Feedback logs, Dec
04 and Digital Spy VOD Forum, Jan and May 2005
26
Consumer Comment

• This shiny new on-demand TV service is set to
  dazzle those of us lucky enough to live in cable
  areas. Unlike Sky, ntls on demand service means
  you dont have to wait half and hour for films to
  start
• Stuff Magazine, Essentials for 2005 Apr 05
• ntl's new on demand service is suitably slick
  and seamlessly integrated into the existing EPG.
  it will change the way you watch TV
• Digital Home Magazine Mar 05
• We've always known that cable offers a great
  deal for broadband, but when it comes to
  multi-channel TV, Sky still wins... however at
  last it seems there may be a compelling reason to
  get cable for its TV
• Tech Digest Jan 05
• ntl On Demand does exactly what it says on the
  tin - it gives ntl customers instant access to a
  humungous library of TV content, including
  hundreds of blockbuster movies like Spider-Man 2
  and a massive jukebox of music vids. As with Sky
  you can pause, ffw and rew telly. However, this
  new on-demand service doesnt include any new
  hardware clutter
• T3 Jan 05