1. Presentation to CABA Digital Home Forum March 21, 2012

2. Disruptive Tech: Open-Standard Secure Vid. Net Open-Standard Secure Video Network  Open-Standard NNW Networking  Open-Standard Public-Private Key Encryption  Open-Standard Content Search & Discovery  Inexpensive MPEG-4 AVC Decoders Why Its Disruptive  Open-standard clients … could be anything! Key Complements  Open-standard remote user interface (Necessary in some Mkts.)  Broadband Cable Tuners / Full-band Capture  Inexpensive transcoding ASSPs  iPads

3. Distance + Generic Clients = Game Changer  Open-standard Secure Video Net dislocates the STB: 5m -> 100m  One server per home Diagram courtesy of ARRIS

4. No-new-wire Video Networking  HD MPEG-2 is 16 Mbps, HD MPEG-4 AVC is 8 Mbps  Overhead needed for low latency, reliability, fast forward & other trick modes  MoCA currently dominates open-standard deployments  HomePNA only real deployed competitor  802.11ac and G.hn are real possibilities  In North America, video over coax to most TVs, only over Wi-Fi to tablets & notebooks  NNW networking standard is operator-specific, CE will have Wi-Fi & Ethernet. Transceivers common.

5. Open-standard Encryption  For the home, “fancy” encryption isn’t needed, only link protection  “Fancy” digital rights management is nice to have, BUT  The home can be “fenced in” by a max 7ms lag  Role of the DTLA / DTCP-IP  Certification & Indemnification  How to secure HLS+  In the apps for iOS / Android  i.e. iOS / Android API is the open standard  Its Just Software (i.e. can be updated)

6. Open-standard Content Discovery & Streaming  Earliest of the parts to emerge  DLNA / UPnP A/V – A great starting point  HLS + web or app based discovery works too  Its “Just” Software  Note DLNA calls DTCP-IP-secured DLNA video: DLNA Premium Video

7. Inexpensive MPEG-4 AVC Decoders  The price premium of HD MPEG-4 AVC over MPEG-2 is less than $3.  Cost in TVs subsidized by Internet video royalties

8. Remote User Interface  In North America, remote UI is a key part of this technology  DirecTV has deployed RVU  Most other solutions looking to HTML5  W3C has become key standards body for this effort  Without good remote UI, operator-branded experience can’t be delivered to clients

9. Regulation in US  CableCARD  In North America, the $40-$50 cost of adding CableCARD to a STB is a key economic driver of Server/Client architecture  Best to keep it to one CableCARD per household  AllVid  The FCC has learned of the open-standard secure video network  Mandating its use was discussed in national broadband plan  Called “AllVid”  AllVid has been in the “Notice of Inquiry” stage for 2 years  Industry consensus: No action pending unless democrats sweep in November – even then maybe not

10. Complementary Technologies  Broadband Cable Tuners / Full-band Capture  A new generation of tuners that aren’t really tuners  Able to capture 8, 16, 24 channels from across cable spectrum  Shipping from Broadcom, Announced by MaxLinear  Broadcom has applied to satellite as well  Simply tilts the economics more in favor of a server/client architecture  Transcoding  Fit the signal over Wi-Fi  Optimize for viewing on different devices  “Fair-use” limits to one unmanaged device per server  I am not a lawyer

11. What it looks like - Japan  Japan wrote DTCP-IP & DLNA into their broadcast standard  All TV is encrypted in Japan for enforcement of NHK TV tax  TV has conditional access card  Stores on NAS  Client gets encryption key from TV on network, content from NAS Encrypted Recording Decryption Key

12. What it looks like – North America  Open-standard implementation of multi-room DVR  1 st Generation – Distributed tuners  2 nd Generation – TV Gateways & Thin Clients  3 rd Generation – TV Gateways & Connected TVs Operator-owned equip. Cost-savings Prevent churn to Internet Video DirecTV, Comcast, Shaw, Time Warner, DISH

13. What it looks like – Everywhere Else  The Android smartphone is set to become the first media hub of the global smart home  Non-iOS smartphones are looking to open-standard content sharing as inexpensive differentiator from Apple  Therefore, most include a DLNA server  Strength in numbers … more later

14. Definitions  TV Gateway Server – A device that provides an interface between a local-area network and a television broadcast platform.  The gateway will typically:  Include all of the tuners and demodulators  Translate conditional access into DRM (CA termination)  Thin IP Client STB – A tuner-less STB that also doesn’t support proprietary conditional access  Thin IP Client software can also be loaded on other devices

15. Fixed DLNA Video Client Breakdown

16. Fixed DLNA Video Server Breakdown

17. North American STB Market From 2012-2014, forecast of mostly test- sized deployments In 2015, testing phase is over and GW + thin client architecture becomes standard except for AT&T and Canadian Bells.

18. Fixed + Mobile DLNA Video Device Breakdown  Outside of North America & Japan, smartphones dominate in-home video content distribution  This only includes non- iOS smartphones w/ DLNA servers

19. What does this have to do with the rest of the Smart Home?  Not much, actually  Key hardware element in home control applications is bridge:  From low-power, low-bandwidth wireless net (ZigBee, Z-Wave)  To high-power, high-bandwidth net  Video happens strictly on high-bandwidth net  Smart home interfaces should be remote-UI ready, concentrate on operator-driven support, integration into operator apps on iPad, etc.  TVs themselves might add smart home control interfaces too, but less likely