Gilles Fontaine presentation at Digiworld Summit 2009

1. Managed TV Vs Over the top video The impact of connected TVs on the TV industry Gilles Fontaine IDATE [email_address]

2. The background: the web migration

3. A third phase begins for the video industry

5. The emergence of new TV platform services Right holders TV channel EPG/OS Content packager Network Terminal Consumer New services providers managing the content

6. Incumbent are challenged and reacting Advanced STB to move into the digital home Securing exclusive content Gaining space shelve on all platforms Controlling the eco-system New competitors on the VOD market Theme channels challenged by OTT services Triple-play value proposition threatened Direct distribution of (non premium) programming by US majors Network congestion Right holders TV channel EPG/OS Content packager Network Terminal Consumer

7. The migration of content to the web mechanically destroys value Profitability per hours of video selon le service (UK, 2008-2020) (base 100 = Live TV, 2008) The Press case Revenues per reader/month vs. revenues per UV/months (EUR) The Music case Digital and physical markets 2004-2007 (trade basis) Tarifs and volume effects

8. Focus on connected TV & Devices

9. Broadcast+ Catch-up TV Content portal OTT premium Home server Personal content Enriched TV Best of web Many solutions to connect the TV set Internet Set-top-box Connected TVs, DVD+ Terminal + service Home servers Hybrid STB Broadcast+Broadband

11. Pending questions on the user interface Is the consumer ready to confront with technology embedded in its TV set? Will the consumer accept pushed advertising overlaying its TV programmes? Is the remote user-friendly enough to interact with the TV set? How to identify the viewer to let him connect to its web services?

12. Sizing the connected TV user base Connectable devices installed base - Europe Connected consoles lead the market Stand alone devices benefit from full digital home capabilities Connected TV sets develop on market renewal 40% households with a connectable device in 2012

13. Content is the driver, not the business model Digital home players leveraging content Increase brand stickyness through interoperable devices Leveraging content to increase market share and increase prices Increase brand stickyness through interoperable devices Leveraging content to increase market share and increase prices Leveraging content to increase market share Bundle content and devices for high-end customers Spread Windows use across new devices Develop home servers as a new high value product Enter the residential market Enter the TV set, media, advertising market Extend the search business to video content Enter the TV set, media, advertising market

15. About us

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