1. Drivers of Media Convergence Drivers of Media Convergence 1

2. Technological Innovation  Internet  Broadband technology  Digital revolution 2

3. Deregulation & Globalization  Telecommunications Act of 1996  Formation of the EU  Privatization  Ten Flatteners (Thomas L. Friedman) 3

4. Changing Consumer Tastes & Search for Synergy  Interactivity  Mobility  Personalization  1+1 = 3 4

5. Fear of being left behind and big egos Fear of being left behind and big egos (e.g.) M&A (e.g.) M&A 5

6. Repurposing of old media content for distribution via various forms of new media Repurposing of old media content for distribution via various forms of new media 6

7. Media Convergence & Communications 7

8. Telecoms (Voice) -Telco IT (Data) -ISP Media (Video) - Cable IP 8

9. Cross-Platform  Cross-Platform: Same media contents delivery through diverse media Same media contents delivery through diverse media 9

10. Convergence between Platforms for Video Contents - YouTube  YouTube videos can be viewed on devices including fixed broadband, Apple TV, iPad and iPhone (smartphone).  Voice) -Telco http://www.youtube.com/watch?v=07uzMGdUI1I&feature=related http://www.youtube.com/watch?NR=1&v=XhCNUgWI6TY 10

11. Any questions? 7/1/201611

12. 7/1/2016 12 IPTV: Market Development & Regulation

13. Ofcom Chairman said… –As broadcast television overtook radio, then newspaper, so internet-delivered video content will overtake broadcast television. –And advertising will follow suit, causing shifts in traditional business models. - Lord Currie, Chairman, Ofcom - Lord Currie, Chairman, Ofcom 7/1/2016 13

14. Voice Revenue is falling... o Fixed-line phone calls will account for less than half of operators’ revenues in developed countries o Voice revenue is falling o New core product: broadband Internet access 7/1/2016 14

15. Definition of IPTV Definition of IPTV by ITU-T’s IPTV Focus Group: “IPTV is defined as multimedia services such as television/video/audio/text/graphics/data delivered over IP based networks managed to provide the required level of QoS/QoE, security, interactivity and reliability.” QoS: Quality of Service QoS: Quality of Service QoE: Quality of Experience 7/1/2016 15 IP TV is viewed over fixed broadband connection (e.g. DSL or FTTH) with standard TV set!!!

16. IPTV vs. Internet TV 7/1/2016 16 Users Video Quality Video format Receiver dev. ResolutionReliabilitySecurityCopyright Customer rel. IPTV Customers & IP-address known, closed network Controlled QoS MPEG-2,-4, MS VC1 Set-top box w/ TV Full TV display Stable Users authenticated Content protected Onsite installation & customer support Internet TV Any users (gen. unknown) QoS not guaranteed Windows Media, Real- Networks, QuickTime etc PC QCIF/CIF Subject to contention Unsafe Often unprotected Generally no

17. 7/1/2016 17

18. Movie Trailer Channel On-Line Ticket Booking via IPTV 7/1/2016 18  Hong Kong’s first-ever instant box office on TV through partnership with UA Cinemas and Cityline  Customers can preview theatrical trailers then pick the seats and purchase tickets from UA Cinemas by clicking on the buttons on their remote control

19. An interactive IPTV service concept 7/1/2016 19 My picture is now on the TV… all spectators can see the video coming from my house… and I can talk with the cameramen and with the champion… let’s start my PERSONAL INTERVIEW… What an unforgettable race !!

20. IPTV & Interactivity 7/1/2016 20 o Interactivity: An IP-based platform also allows significant opportunities to make the TV viewing experience more interactive and personalized. o VoD (Video on Demand): VoD permits a customer to browse an online program or film catalogue, to watch trailers and to then select a selected recording for playback.

21. IPTV: Regulation Issues Program Access Rule (PAR ): Program Access Rule (PAR ): regulations requiring cable operators that own programming to make that content available to rival pay-TV distributors such as satellite broadcasters and IPTV providers LLU policy Bundling services can raise antitrust issues (e.g.) Italy: (e.g.) Italy: –Telecom Italia: dominant in both fixed and mobile –Fastweb: only in fixed-line market –Vodafone: only in mobile market 7/1/2016 21

22. World Star Baby Flocke !!! 22