SDV overview 042706

Bandwidth Management and Switched Digital Video Lorenzo Bombelli Director, Product Strategy and Management Scientific Atlanta, a Cisco Company

Evolution of Cable Networks ,[object Object],[object Object],[object Object]

The Need for Speed Log Scale Bit Rate (000’s) Lesson Learned: Data rates have risen … for 22 straight years Hayes Modem introduced ADSL2+ becomes available Cox’s new Standard PIR First Proprietary Cable Modem AOL Growth Explosion DOCSIS Introduced “ Consumer-Grade” Peak Offered Data Rates

HDTV is penetrating the mainstream market ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],HH Income of HDTV owners Source: Forrester's Consumer Technographics ™ Q2 2005 North American Survey

The Long Tail Mass Appeal Niche Content

Example: DirecTV has suggested that “niche” content is helping to drive their growth ,[object Object],[object Object],[object Object],[object Object]

Niche experience: Dish Networks now offers extensive international programming African ABN America - $14.99/mo. Armenian Armenia TV - $14.99/mo. Arabic 15 channels - $39.99/mo. Al Jazeera Kuwait TV Chinese 17 channels - $29.99/mo. Farsi 3 channels - $32.99/mo. French 3A Telesud - $14.99/mo. German Polish 1 channel - $14.99/mo. Greek 6 channels - $36.99/mo. Israeli Israeli Network - $19.99/mo. Italian 2 channels - $12.99/mo. Japanese TV Japan - $25.00/mo. Korean 4 channels - $36.99/mo. 4 channels - $38.99/mo. Portuguese Russian South Asian Tagalog Urdu TV Globo - $19.99/mo. 2 channels - $24.99/mo. 6 channels - $49.99/mo. 1 channel - $14.99/mo. 3 channels - $34.99/mo. The high price of these offerings demonstrates the value to niche consumers.

Proliferation of Devices Joysticks Video/Internet Phones Internet Radios Internet Portals Web Tablets Internet/IP Appliances Home Organizers Telephony 802.11x Telephones Laptops Cable Modems Traditional PC PC’s & Media PC’s Wireless Headphones Cell Phones IP/Video Cell Phones Data Link Watches MP3 Players Portable Electronics PDAs PC Connected Peripherals Keyboards Game Players Printers Web Cameras Home Media Gateway Home Control & Monitoring Security Cameras Alarm Systems Lighting Heating & A/C Sprinkler Systems Meter Reading Intercom Systems Digital Cameras Wireless Speakers Digital Camcorders Intelligent Remotes Media Servers Multi-Disk DVD/CD Players & Changers Stereos Receivers Home Audio/Video Baby Monitors Networking Gear Routers Car Audio Memory Stick Portable Media Players

Consumer Choice… No End in Sight ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The “ Long Tail” ,[object Object],[object Object],The “Red Button” ,[object Object],[object Object],[object Object]

Cable’s Challenge: Bandwidth Management Digital Tier Digital Tier 2004 2006 50MHz 550MHz 750MHz EOD Analog Tier (78- 98 CH) Analog Tier (72- 86 CH) Analog Tier (80 CH) HSD/VoIP HSD/VoIP HSD/VoIP EOD EOD HDTV HDTV HDTV Digital Tier Including SDB Bandwidth Savings 25-30% Contention 64 kbps per Subscriber 40-50 HD Channels Including Digital Simulcast 5-10% Contention 8 kbps per Subscriber 10-20 HD Channels ~2009 What Customers are Saying…

Bandwidth Management Options Digital Simulcast HDTV Maintain Analog Improve Bandwidth Efficiency Expand Existing Bandwidth Encoding and Statmuxing Switched Digital Video 1GHz Bandwidth Enhancement 2005/2006 2005-2008 2006/2007 MSO Options Key Drivers Consumer Demand Competition Bandwidth Management

Why Switched Digital Video ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

How SDV Works in HFC Networks ,[object Object],[object Object],[object Object],Headend Service Group A HE-to-Hub Transport Network Service Group B Hub Only channels that are being “watched” by that group are transmitted to each service group Custom lineup switched to each service group according to real-time demand Works on existing MPEG Set-tops HFC HFC Saves HFC Bandwidth Saves HFC Bandwidth

SDV Drives a Paradigm Shift in Bandwidth Management Next 10 5-10 Viewers Next 30 1-5 Viewers Next 200+ < 1Viewer Within any service group, NOT every channel is watched all the time Typical Viewership at a node Top 4 >30 Viewers Unused Capacity Switched Digital Video Switched Channels Everyone could get their own special channels: increased appeal of overall package to ALL subscribers Broadcast Channels Audience Broadcast Channels Current Analog & Digital Broadcast Approach Only the most popular channels are offered due to capacity constraints “ The Long Tail”

Features of Open SDV Architecture ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Bulk Encryptor HFC Network Open IP Architecture for Switched Digital Video Settop with SDV Client Video Content IP Network Mini Carousel Control IP Network Video Sources Channel Change Message Session Binding Groomed Video IGMP Join Out-of-Band Channel In-Band Channel Server Interactive Session Request Encrypted Multicast Video Staging Processor SDV Server Master SRM Edge QAM QPSK Content Sources SDV Manager Management & Provisioning Shell Session Setup Open Interface Specification Video Content Management All interfaces are open and published ,[object Object],[object Object],[object Object]

2) Reserve 37 for VOD 2) Join multicast for SDV ch8 DNCS w/ App-Independent Session and Resource Manager (SRM) GQAM VOD Pump 0) Channel change to SDV ch8 (HD) 3) SDV ch8 (HD) -3) Give me 36x 625kb/s sessions -6) set up CBR SPTS IP unicasts to Netcrypt -1) Take sessionIDs 1-36 on GQAM X -2) Reserve sessionIDs 1-36 “ shell sessions” for SDV 1) Use sessID 12 for HD-SDV ch8 incl: actual bit rate and multicast addresses 4) SDV ch8 1) Buy VOD “ Movie” 3) Send VOD “Movie” to GQAM X 4) “Movie” 5) “Movie” 6) “Movie” ServerInteractiveSessRequest/response 37 Headend SDV / VOD Session Setup Messages DCM Staging Processor 2) Mini Carousel SDV Manager -4) Provision SDV Servers -5) set up multicast CF sessions on Netcrypt -5) DNCS sends SourceIDs, multicast addresses, bit rates to SDV Manager 2) Tune to GQAM X DNCS 4.2 Master SRM SDV Manager SDV Server Netcrypt DCM Staging Processor Hub “ Movie” SDV ch8 (HD) 12

Optimizing the Design Parameters ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Service Group Size RF channels Allocated SDV Content Offered QAM Sharing System Resiliency

Importance of QAM Sharing ,[object Object],[object Object],[object Object],[object Object],[object Object]

QAM Migration Strategy Phased Approach = Minimize Stranded Capital VOD VOD SDV VOD/SDV VOD/SDV Narrowcast QAM Allocation by Service VOD/SDV/Data SDV VOD VOD SDV SDV Stage 1 No QAM Sharing SDV SDV VOD VOD Data Data Data Stage 1.5 Incremental VOD/SDV QAM Sharing Stage 2 VOD/SDV QAM Sharing VOD/SDV VOD/SDV VOD/SDV VOD/SDV VOD/SDV VOD/SDV VOD/SDV VOD/SDV VOD/SDV VOD/SDV Data Data VOD/SDV VOD/SDV VOD/SDV VOD/SDV Stage 2.5 Incremental VOD/SDV/Data QAM Sharing VOD/SDV VOD/SDV VOD/SDV VOD/SDV VOD/SDV VOD/SDV VOD/SDV VOD/SDV Data Data VOD/SDV VOD/SDV VOD/SDV VOD/SDV VOD/SDV/Data Stage 3 VOD/SDV/Data QAM Sharing VOD/SDV/Data VOD/SDV/Data VOD/SDV/Data VOD/SDV/Data VOD/SDV/Data VOD/SDV/Data VOD/SDV/Data VOD/SDV/Data VOD/SDV/Data VOD/SDV/Data VOD/SDV/Data VOD/SDV/Data VOD/SDV/Data VOD/SDV/Data VOD/SDV/Data VOD/SDV/Data QAM sharing in GQAM provisioned by DNCS 4.2 QAM sharing improves system robustness

Network Attached Appliances ,[object Object],[object Object],[object Object],[object Object],IP/GbE Switch/ Router Staging Processor Bulk Encryptor Local Content Sources Bulk Encryptor Bulk Encryptor Staging Processor Staging Processor Future Appliances Remote Content Sources Local Content Routing Network Managed IP Backbone Add New Network Features ,[object Object],[object Object],[object Object]

Encoder Family SD HD MPEG-2 MPEG-4 (H.264) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Next Generation Network-Attached Video Processors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

New Applications for Video Grooming System Initiatives Effects on System ,[object Object],[object Object],Digital Simulcast Growth of VOD Growth of HD Digital Ad Insertion Switched Digital ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Required Solutions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Content Repurposing ,[object Object],[object Object]

Business Benefits of SDV Business Benefit Network Requirement Key Feature ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],1. Bandwidth Reclamation 2. Incremental Program Revenue ,[object Object],[object Object],[object Object],[object Object],3. Increased Targeted Advertising ,[object Object],[object Object],[object Object],[object Object],4. Personalized Advertising ,[object Object],[object Object],[object Object],[object Object],5. New Competitive Features

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Conclusions

NetCrypt HFC Network S-A’s Switched Digital Video Solution Settop with SDV Client Video Content IP Network Control IP Network DCM SDV Server GQAM QPSK Content Sources DNCS 4.2 Master SRM & SDV Manager 4. QAM sharing with multiple applications 10. End-to-End System Solution and Integration 6. Standards-based session QAM 5. Standards-based Intel/Linux Server with N+1 redundancy 8. Next-generation video grooming 2. Master SRM for multiple applications with SSP2.3 9. Planning and Operational Tools and Services 1. Fully Integrated SDV Client 3. Distributed SRM for scalable real-time performance 7. Standards-based Switch/Routers with IGMPv3 SSM

SDV overview 042706

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SDV overview 042706