MHEG-5 and its new features in DVB networks worldwide 25th February 2008 David Cutts Managing Director Strategy & Technology Founder member of IMPALA This presentation sets out the key elements of S&T’s carousel systems and their applications. The tasks addressed include:-   receiver test stream generation application development and test stream generation stream generation for integrated headends integration with data-provision and content playout systems The core technology for these solutions is consistent throughout. S&T’s solutions are compliant with DVB-MHP specifications and are designed from requirements derived from practical application development and deployment experience. 25th February 2008 BES Expo MHEG-5 S&T

Agenda S&T and Impala Benefits of Standardised Middleware MHEG-5 and MHP MPEG4 and MHEG-5 Extended MHEG for 2008 Conformance Regimes MHEG Applications Summary and Contacts 25th February 2008 BES Expo MHEG-5 S&T

Strategy & Technology Independent company Offices in London, Bristol, Denver, Hong Kong Works largely in digital interactive TV Supplies RedkeyTM MHEG-5 engines to receiver manufacturers Leads MHEG-5 specification activity in DTG/ETSI Supplies MHEG-5 applications and playout equipment (Object Carousels) Carousel equipment also used in MHP and in US OCAP rollout in US Cable Customers include RAI in Italy (MHP), Time Warner Cable in US (OCAP), RTM Malaysia, Taiwan TV (for MHP trials) 25th February 2008 BES Expo MHEG-5 S&T

For more information see www.impala.org. The International MHEG Promotion Alliance is a not-for-profit organisation whose principal aim is to promote the use of the MHEG-5 international standard in digital TV worldwide. For more information see www.impala.org. Founder members of Impala are S&T, Echostar Europe and Cabot Communications Supporters include Sony, Samsung, Panasonic, NZ Freeview, Finlux, Hitachi, TopUpTV, TVonics and Zinwell IMPALA promotes. Its members compete. 25th February 2008 BES Expo MHEG-5 S&T

Agenda S&T and Impala Benefits of Standardised Middleware MHEG-5 and MHP MPEG4 and MHEG-5 Extended MHEG for 2008 Conformance Regimes MHEG Applications Summary and Contacts 25th February 2008 BES Expo MHEG-5 S&T

Why specify interactive TV? For maximum benefit from digital TV (for both viewers and broadcasters) a middleware should be specified and deployed on all receivers in a network to support interactive services and applications including: Platform EPG (Electronic Programme Guide) Digital teletext and information services Enhanced TV formats (programme related) Games and voting/participation TV formats And with Interaction Channel (return path) Audience measurement Operator information / account management t-commerce for shopping channels e-government 25th February 2008 BES Expo MHEG-5 S&T

Middleware considerations Interactive TV works best when all (or the vast majority) of the receivers in a market have middleware installed Content and services that reach just a small percentage of a broadcaster’s audience do not support a viable business / commercial model Technical standard considerations are important but not as important as enabling an audience for interactive services No Audience = No Business! 25th February 2008 BES Expo MHEG-5 S&T

Using Public Standards Use of Public Standards enables: widespread adoption and multiple vendors at each part of the industry chain price and performance competition Requires conformance scheme to ensure interoperability and ease of use 25th February 2008 BES Expo MHEG-5 S&T

Agenda S&T and Impala Benefits of Standardised Middleware MHEG-5 Extended MHEG for 2008 Conformance Regimes MHEG Applications Summary and Contacts 25th February 2008 BES Expo MHEG-5 S&T

MHEG-5 Developed in ISO-MHEG group and DAVIC in 1995 Intended as UI for DAVIC interactive services and VOD Simple object oriented interpreted language Standardised in ISO 13522-5 Adopted by UK DTG in 1997 UK Profile includes text, graphics and DSM-CC carousel systems Profile evolved to UK Profile 1.06 (current) ETSI standard ES 202184 NZ profile extends to include extra Maori characters and EPG key New Hong Kong profile released with support of Traditional Chinese Extensions under development for deployment in 2008 IP Interaction Channel (return path) PVR support Improved graphics HD compatibility 25th February 2008 BES Expo MHEG-5 S&T

MHEG-5 Rollout Successfully deployed in UK >18m receivers sold a single S&T customer shipped 700k units in Q3 2007 99% UK Freeview platform penetration, >25% usage Launched in New Zealand in May 2007 DVB-S receiver sales over forecast so far (already >40,000 units) DTT launches 2008 with MPEG-4 HD and MHEG-5 Trials and evaluations in Ireland, Hong Kong, Malaysia, Singapore, Turkey, India and Russia with interest from other countries in Europe and Asia No known essential IPR MHEG middleware software approx US$1 per receiver Lowest retail price in UK <$40 Wide integration into iDTVs in Europe 50% of sales iDTV…MHEG available to most leading brands Note the above applies mostly to MPEG-2 platforms in 2008 25th February 2008 BES Expo MHEG-5 S&T

What is MHEG-5? Simple object orientated programming language to control presentation of content made up from audio, video, text and still graphics objects to provide user interaction with the application supporting real time video and audio presentation focussed on TV requirements low overhead and high speed A complete environment including Authoring tools and data systems Broadcast transmission using DSMCC Object Carousel standard and optional IP-based connectivity Middleware – the MHEG middleware or ‘stack’ that is resident in the STB. This provides an API on which interactive applications can run 25th February 2008 BES Expo MHEG-5 S&T

MHEG vs Java MHEG-5 is designed specifically for TV presentation Remote control operation Displays built on TV layout Works in its own safe memory space Robust interpreted language Java is a complex general purpose tool with adaptations for TV As illustration of comparable complexity MHP (based on Java) has >10000 unit tests There are no other standardised Java systems for TV MHEG has <350 test But there are very few, if any, broadcast applications for TV that can be done in MHP and not MHEG-5 MHEG-5 loads and runs faster 25th February 2008 BES Expo MHEG-5 S&T

MHEG applications are smaller Source: MHP/MHEG Coexistence project. BBC Research. • Smaller applications means faster start and lower cost transmission 25th February 2008 BES Expo MHEG-5 S&T

Agenda S&T and Impala Benefits of Standardised Middleware MHEG-5 and MHP MPEG4 and MHEG-5 Extended MHEG for 2008 Conformance Regimes MHEG Engines MHEG Applications Summary and Contacts 25th February 2008 BES Expo MHEG-5 S&T

MPEG-4 and MHEG-5 Inclusion of HD/SD MPEG-4 in the system makes a difference to a number of issues Cost of silicon Number of receiver suppliers in short term Complexity of receiver outputs MHEG-5 display strategy for HD services Receiver costs are higher in short term but bandwidth utilisation is better Next generation iDTV will include MPEG-4 Receiver solutions have easy IP connection MHEG-5 HD support in development for 2008 25th February 2008 BES Expo MHEG-5 S&T

Projects using MPEG-4/MHEG-5 Freeview NZ DTT Launches 2008 Republic of Ireland Launch 2008 Many iDTV designs for 2008/9 will incorporate both technologies Freesat in UK Hong Kong DTT (TVB) Receiver manufacturers already working on implementation Others in planning phase 25th February 2008 BES Expo MHEG-5 S&T

Agenda S&T and Impala Benefits of Standardised Middleware MHEG-5 and MHP MPEG4 and MHEG-5 Extended MHEG for 2008 Conformance Regimes MHEG Engines MHEG Applications Summary and Contacts 25th February 2008 BES Expo MHEG-5 S&T

Extensions for 2008 Interaction channel (Return path) Uses (broadband) always on IP return path Enables delivery of more interactive content secure commercial transactions HD graphics and fonts PVR Support Including Push VOD Specification work in DTG Will output to ETSI Conformance tests being built by DTG Testing 25th February 2008 BES Expo MHEG-5 S&T

MHEG Interaction Channel Extension of Profile to add ‘always on’ IP connection Connected to home network Could be connected via phone Enables Seamless extension of interactive services using content from known servers Commercial transactions Security Now under development for use in 2008 Including test regime Next version under discussion MHEG control of presentation of streamed or downloaded a/v from IP source Provides Broadcaster-controlled IPTV 25th February 2008 BES Expo MHEG-5 S&T

Agenda S&T and Impala Benefits of Standardised Middleware MHEG-5 and MHP MPEG4 and MHEG-5 Extended MHEG for 2008 Conformance Regime MHEG Engines MHEG Applications Summary 25th February 2008 BES Expo MHEG-5 S&T

Conformance Regime In UK conformance regime was weak until 2005/6. Many problems arose from this, especially for retailers A tough conformance regime, using Pass/Fail tests to achieve brand acceptance, is recommended for SI, Subtitles, MHEG-5, RF, OAD, AFD, etc OAD capability is essential for all receivers Much can be derived or licensed from DTG in UK Including subcontracting work MHEG 1.06 has ~ 350 tests Stable, managed, licensable test suite Development programme in place for extensions Note: MHP has >10,000 tests MHP tests for recent versions not completed 25th February 2008 BES Expo MHEG-5 S&T

Agenda S&T and Impala Benefits of Standardised Middleware MHEG-5 and MHP MPEG4 and MHEG-5 Extended MHEG for 2008 Conformance Regimes Rollout MHEG Applications Summary 25th February 2008 BES Expo MHEG-5 S&T

International Rollout UK has 23m+ MHEG receivers sold Freeview New Zealand Operational on DTH DTT launches April 2008 TVB in Hong Kong on air shortly Hong Kong profile released soon Projects under discussion in ASEAN region 25th February 2008 BES Expo MHEG-5 S&T

MHEG-5 Profile for India Current Baseline is NZ Profile UK Profile plus EPG launch key Profile for India needs support for local languages Graphics and downloadable font system under development allows this to work Discussion already underway with cable operators in India Contract announced today with Digicable (Mumbai) Complete system including applications and playout 25th February 2008 BES Expo MHEG-5 S&T

Agenda S&T and Impala Benefits of Standardised Middleware MHEG-5 and MHP MPEG4 and MHEG-5 Extended MHEG for 2008 Conformance Regimes MHEG Applications Summary and Contacts 25th February 2008 BES Expo MHEG-5 S&T

Providing Interactive Applications Most applications are similar, with different design and content. Publishing information Displaying graphics and pictures Interaction through ‘list and select’ or ‘show and select’. Navigation to different services Most applications in MHP and in MHEG are made with higher level ‘template’ tools and very stable operating applications Most cost in applications is in content production (information and pictures) S&T provides applications and content tools in collaboration with partners 25th February 2008 BES Expo MHEG-5 S&T

MHEG System Architecture Viewer Premises iTV Authoring Tools Broadcast Playout TV Display Program Video & Audio (Video Server playout) TX MHEG Tools Mux MHEG content MHEG Appl’n MHEG content MHEG Engine Live content feeds & updates e.g. Weather, News, Sports (XML) MHEG Appl’ns Set Top Box DSMCC Object Carousel Content Management Systems 25th February 2008 BES Expo MHEG-5 S&T

New S&T Product - MHEGPresenter High-level XML content description language Defines page layout, content, behaviour and navigation Head-end pre-processing into compact files for transmission Compact MHEG-5 Application on STB Renders screen layouts and functions Handles user input and interactions Suitable for publishing services Interactive Advertising Text/information Services Shopping Easy to use with content production/layout tools Can use Latin and Asian character sets MHEG-5 language training and development tools also available 25th February 2008 BES Expo MHEG-5 S&T

Some Applications Text Multiscreen Complex Advertising Games EPG 25th February 2008 BES Expo MHEG-5 S&T

Skytext on Freeview UK 500 ‘pages’ with frequent content updates (mostly automatic) Integrated with SysMedia content management and production system Profit generating (though advertising) 25th February 2008 BES Expo MHEG-5 S&T

Text Service -Traditional Chinese 25th February 2008 BES Expo MHEG-5 S&T

Multiscreen Services MHEG controls the presentation and choice of multi-screen services User chooses which to view Has access to information on each event 40%+ of digital sports viewers in UK use these applications 25th February 2008 BES Expo MHEG-5 S&T

Shopping - QVC (Freeview UK) Integrated with QVC’s existing CMS using XML Runs completely automatically using a data-driven model Profit generating through sales increases Can be extended to include transactions 25th February 2008 BES Expo MHEG-5 S&T

MHEG System Architecture Viewer Premises iTV Authoring Tools Broadcast Playout TV Display Program Video & Audio (Video Server playout) TX MHEG Tools Mux MHEG content MHEG Appl’n MHEG content MHEG Engine Live content feeds & updates e.g. Weather, News, Sports (XML) MHEG Appl’ns Set Top Box DSMCC Object Carousel Content Management Systems Interaction Server Internet connected return channel 25th February 2008 BES Expo MHEG-5 S&T

QVC prototype with online purchase Green ‘Buy Button’ leads to online purchase via the IP interaction channel 25th February 2008 BES Expo MHEG-5 S&T

Games - Tetris Stand-alone gaming application: Free-to-play or pay-per- play via premium rate phone 25th February 2008 BES Expo MHEG-5 S&T

Games “Studio Runners” ‘Sokoban’ maze game for BBCi 25th February 2008 BES Expo MHEG-5 S&T

EPG application for NZ 25th February 2008 BES Expo MHEG-5 S&T

EPG – Traditional Chinese 25th February 2008 BES Expo MHEG-5 S&T

Platform-wide EPG MHEG-5 can provide platform-wide EPG Loads quickly from carousel Data carriage is efficient Compressed in carousel (EIT schedule uses uncompressed data) Same appearance and behaviour on all receivers Branding of platform and per channel Advertising opportunities Needs carriage on all muxes PVR control from MHEG-5 EPG in development 25th February 2008 BES Expo MHEG-5 S&T

Agenda S&T and Impala Benefits of Standardised Middleware MHEG-5 and MHP MPEG4 and MHEG-5 Extended MHEG for 2008 Conformance Regimes MHEG Applications Summary and Contacts 25th February 2008 BES Expo MHEG-5 S&T

Summary Digital TV enables additional interactive services that benefit both viewers and broadcasters MHEG-5 offers a proven and stable middleware with low consumer cost, strong manufacturer support from major brands and suppliers No known essential IPR licensing MHEG-5 is also widely available in flat screen iDTVs from many manufacturers A minimum profile specification and simple conformance testing ensures that all receivers are interactive-enabled at an affordable price Profile with Chinese language support already available Receivers in pre-production to this specification Profile for Indian language support under development PVR, High-definition and IP support are also available for future services 25th February 2008 BES Expo MHEG-5 S&T

Contacts Thank you! Strategy & Technology Contacts: David Cutts Managing Director David.cutts@s-and-t.com Colin Prior Director of International Sales colin.prior@s-and-t.com Distribution in India Novacom Digitronics Private Limited dmanidhar@novacomindia.com 25th February 2008 BES Expo MHEG-5 S&T