creating a new age of video entertainment

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Creating a New Age of Video Entertainment Telecom at NAB April 15, 2008

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Creating a New Age of Video Entertainment. Telecom at NAB April 15, 2008. What is Building B?. New entertainment services company 1 st Complete next generation TV offering Comprehensive content lineup, including traditional TV, internet and movies - PowerPoint PPT Presentation

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Page 1: Creating a New Age of Video Entertainment

Creating a New Age of Video Entertainment

Telecom at NABApril 15, 2008

Page 2: Creating a New Age of Video Entertainment

• New entertainment services company

• 1st Complete next generation TV offering

– Comprehensive content lineup, including traditional TV, internet and movies

– Seamless integration of live, stored, downloadable and internet video

– Centered on on-demand viewing

– Personalized and tailored to the individual viewer

• Distributed through broadband service providers and national retailers

What is Building B?

Page 3: Creating a New Age of Video Entertainment

Major Disruptions in the TV Industry: A Catalyst for Consumer Change70 million consumers will make Digital TV choice over the next 4 years

DVRDVR

HDTVHDTV

TripleTriplePlayPlay

DigitalDigitalTransitionTransition

InternetInternetContentContent

MobileMobileVideoVideo

Page 4: Creating a New Age of Video Entertainment

Inflexible bundles

Too expensive

Difficulty making

everything work together

Inconvenient start times

Movie selection (on-

demand)

Can’t find something of interest to watch

Poor navigation

and usability

The picture quality does not meet my expectations

Complaints Include High Prices, Inflexible Bundles and a Poor Experience

Value is critical

Opportunity to improve the experience

Simplicity is key

Upgrade to HD

Page 5: Creating a New Age of Video Entertainment

Current Approaches are Not Working

• Broadband is challenged to deliver HD television

• A pile of special purpose boxes

‒ Television STB / DVR

‒ Movie boxes

‒ Internet video boxes

• Legacy systems are difficult to upgrade

Page 6: Creating a New Age of Video Entertainment

Upgrading Existing Infrastrucure is Prohibitively Expensive

IP backbone providers will not be able to economically light the existing and new fiber necessary to deliver broad

based TV access at reasonable consumer prices.- 2007 Telecom Predictions Report, Delloite and Touche Consulting

Page 7: Creating a New Age of Video Entertainment

The Key: Align the Network with Content Viewership

Source: Nielsen HH ratings 2005-2006 TV season

PremiumContent &

MoviesABC, NBC, CBS, FOX,

Univision, Telemundo, My

Network, CW, Telefutura, other

independents

53%

0%

34%

Leading Networks

Niche Networks

Broadcast

Networks

Short-Tail (87% of TV viewing) Long-Tail

7%

Internet

Video

Page 8: Creating a New Age of Video Entertainment

Video Delivery Cost Optimized by Combining Broadcast and Broadband

Vie

wers

UnicastPrivate BroadcastBroadcast

Group Delivery Deliver to All Direct

Least Expensive Most Expensive

Digital TV Spectrum Broadband

Page 9: Creating a New Age of Video Entertainment

Video Imperatives for the Broadband Industry

• Differentiated television offering

• A complete content lineup (including HD)

• Works in America’s homes today—with existing broadband

• Limited infrastructure investment

• Enhanced brand and customer relationships

Page 10: Creating a New Age of Video Entertainment

Simple

Self-Install

Compelling

Pricing

Relevant

Advertising

Wireless

Personalization

and

Intelligence

Time Shifting and

On-Demand

Comprehensive

Content

Breakthrough

Video Entertainment

Solution

Page 11: Creating a New Age of Video Entertainment

Unlocking the Next Generation of Television

• Low entry cost

• Simple out of the box setup

• Tailored to individual viewer's routines and preferences

• High Definition and On-Demand

• Community and Web Features

• Broadcast networks and local channels

• Cable networks

• Studio library channels

• PPV movies and events

• Internet content

• Delivered straight to the living room television

• No need for a PC

• Works with any broadband service

Accessible

Comprehensive Content

Works in Homes Today

Personalized Experience

Breakthrough video entertainment service to be launched in 2008

Page 12: Creating a New Age of Video Entertainment
Page 13: Creating a New Age of Video Entertainment

The Industry Has an Opportunity to Capitalize on a New Chapter of Consumer Video

Content

Providers

Broadband

Service Providers

Advertisers

Broadcasters

Broadcasters:

Receive returns on their digital investment

Revitalize their business with targeted and interactive ads

Advertisers:

Deliver higher value advertising on television

Improve the effectiveness of advertising

Broadband Service Providers:

Offer a differentiated triple play

Avoid expensive infrastructure

Promote their brand

Content Providers:

Extend content to new platforms

Leverage brand in an on-demand world

Page 14: Creating a New Age of Video Entertainment

Building B is A Turn-key Video Solution for Broadband Service Providers

Differentiated video services

High-capacity wirelessnetwork for content delivery

+ =

Telco's and ISP’s

DSL and 4G Wireless

Voice & data services

Marketing & distribution

Triple Play

Page 15: Creating a New Age of Video Entertainment

Building B Partnership Model Partnership Roles

Co-Branded

Customer Relationship

Bundling and Pricing

Customer Acquisition

Set-top-box ownership

Network & content operations

1st and 2nd tier customer support

3rd tier technical support

&Partner

Partner

Partner

Partner

Partner

Partner

Page 16: Creating a New Age of Video Entertainment

The Time is Now

• Major partnerships complete

‒ Broadband providers

‒ Content providers

‒ Advertisers

• Created nationwide content distribution network

‒ Broadcast partners in initial launch markets

‒ Infrastructure Partners

‒ Announced with Harris Corporation and Sun Microsystems

• Commencing trials for commercial pilot

Page 17: Creating a New Age of Video Entertainment

Creating a New Age of Video Entertainment

Telecom at NABApril 15, 2008