Datacasting & Interactive TV Planning for new services in light of world trends

Business ‘re-alignment’ in the world’s leading DTV market Open…  SkyActive OnDigital  ITV digital ntl/telewest - combined marketing; single ad agency Growing uptake & awareness of interactive television ntl - 56% use interactive on a weekly basis for 1 hour or more 27% use interactive services on any given day Interactive shopping: early days, but growing Development of the interactive advertising sector The promise - direct response & direct measurement Demand is present Production costs are still high Environment

‘Back to the future’ …?? Entertainment remains a key element of success Enhancing the TV relationship, rather than changing it’s purpose - The Big Brother phenomenon; BBC Wimbledon Re-focusing t-commerce Time/price sensitive items; low involvement Bundling - a single brand relationship with the customer TV, PPV, Internet, , messaging service, iTV, telephony Diminishing subsidy on receivers eg: Sky+ PVR Set Top Box Trends

Issues Numerous digital platforms cannot compete and survive UK - 3 platforms fighting it out; none in the black Australia - Terrestrial is dominant, but how to maintain that lead? Technical standards Receiver standards; we are too small to matter on a global scale! A single interactive publishing standard on a single platform saves $$$, & is essential for success Legislation Australia’s legislation has delayed development of new services The line between program and advertisement is blurring

Issues Receiver penetration - terrestrial No compelling reason to buy without new services New services are inhibited by current legislation Low value, confusing offering to the consumer

National network deployment - some essential elements Technology management Receiver hardware / software compliance Interactive content conformance Management of Conditional Access systems Return path network Project management Specific knowledge of broadcast and return path networks & issues Integration of disparate technologies, hardware systems & vendors hindsight

National network deployment - some essential elements Operations management Deployment of new applications / services Real-time service monitoring and management Service provisioning for new subscriber accounts Subscriber service entitlements

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Environment Trends Issues Deployment Summary

We are still in the early stages of Digital TV…