Next Generation Playout & Content Delivery Platform Tony Berthaud Vice President, Sales, APAC May 9th, 2017

Worldwide Leader in Video Delivery Infrastructure 2015 Revenue $455M Employees 1,532 10 Major Sites Worldwide San Jose CA Leading Content & Service Providers 1,700 R&D Spend $97M In Asia Pacific 15 locations across the region One major R&D center in Hong-Kong Strong technical support team

State of the Video Market Content Explosion Changing Consumer Behaviors Global Screen Time Increasing Monetization Increasing but Shifting Legacy Distribution Models Being Challenged

Video Technology Transitions New Compression Technologies Migration to IP Software, Virtualization and Cloud Migration to HD & UHD Switching now to the detail on technology trends. We see three major maturing technology trends in 2015 and beyond. <> First, virtualization and cloud. Long used in the IT industry to achieve efficiency and flexibility. We see Tier 1 content and service providers adopting this approach globally. However, switching from an appliance based solution to a virtualized, or cloud based approach, requires many operation and architectural changes by our customers. Therefore, we believe this transition will vary region by region and customer by customer. Harmonic is excited to be leading the virtualization and cloud effort in our industry with our VOS platform. Second, HEVC or High Efficiency Video Coding. This is a new video compression algorithm that will compress video signals up to 50% over MPEG4. It is officially a standard and has been adopted worldwide. This is the enabling technology that will distribute UHD signals to consumers. However, it will also compress SD and HD signals more efficiently as upgrades to these networks occur to free up bandwidth. We expect rollout of this technology to occur first with UHD and with mobile only use cases. Slowly over time, it will evolve to IPTV, satellite and cable service providers. Primary distribution networks that deliver content to service providers will switch to HEVC over the coming years. Finally, on to 4K

The complete UHD ecosystem is ready! UHD Capture UHD Contribution Link (4:2:2) Live, File & Graphics Encode & Package (4:2:0) UHD Distribution UHD Camera Electra VS UHD HDR STB UHD Passthrough ViBE CP9000 Encoder HC11000D Decoder Spectrum X Playout Electra VS OTT UHD to HD UHD Server MediaGrid Storage ProMedia X Origin Tablet And it is HDR compliant too! 1080p Distribution

NextGen Content Delivery Platform Relies on IP and IT Data centers Unified infrastructure Efficient networking Elastic capabilities Software Faster rate of innovation Flexible business models Dynamic workflows IP Standards AIMS / SMPTE2022-6

Why Media Over IP & Open Protocols? Move away from proprietary devices in production systems Leverage COTS computing, cloud & virtualization Scale-up and adapt in rapidly changing environments IP represents a single medium for all media Ensure complete interoperability Seamless workflow integration Real-world testing Avoid standards fragmentation of the past – opens more competitive business models

Example of SMPTE ST 2022-6 Interoperability Workflow SDI IP emSFP IP Production Server V_link4 Viz Engine Media Processor IP MCR CiaB PRISM Production Server House Feed Contribution Production 1 2 4 Multiviewer Feeds Multiviewer Outputs Production SDI Out Production IP Out MCR SDI Out MCR IP Out Ethernet Fabric

NextGen Content Delivery Platform is Hybrid Appliances Software Cloud Complementary Solutions

NextGen Content Delivery Platform Transition Hardware Appliance Software Appliance Software Cloud SaaS Proprietary Hardware Appliance demand is declining Software Appliances (software on off-the-shelf servers) are growing Tier 1 operators are starting transition to Cloud and SaaS models

Playout: from Appliances to Cloud Software Appliance (Harmonic turnkey server) Bare Metal / VM (Dedicated server, on premise) Private Cloud (Can be shared resources) Public Cloud (Can be shared resources) Traditional Playout Harmonic provides integrated server + SW Spectrum X Spectrum XE Virtualized Appliance Customer provides server + hypervisor Harmonic provides SW or VM Spectrum XE/VM Spectrum XVM Cloud Native Customer provides hardware + cloud infrastructure Harmonic applications VOS Cloud Cloud Native Cloud infrastructure from a cloud service provider (AWS, Azure etc) Harmonic applications VOS Cloud VOS 360

Harmonic Playout leadership in China market Harmonic Playout – Spectrum X is used in All Province level TV Stations Harmonic Playout – MD7000 has a strong market share in City level TV Stations Our mission is to support you in making the transition to new technologies, new formats and new infrastructures smooth and swift

Thank You