Freeing the UX from the limitations of STB hardware performance

Latin America - April 28, 2020

www.vewd.com www.dataxis.com

2

Sa Eva Nébié

Market Analyst

Dataxis

Marco Frattolin

Head of Operator Products

Vewd

Chris Carter

Product Marketing

Vewd

Meet the presenters

3

Market Update

4

Latin America: TV access and pay TV distribution

0%

70%

38%649 million inhabitants

200 million households

93% TV penetration

70 millions pay-TV subscribers

PAY-TV SUBSCRIBERS BY ACCESS

Latin America

REGION’S CHARACTERISTICS

(2019)

pay TV households

penetration

Source: Dataxis

PAY-TV PENETRATION BY COUNTRY

Latin America (2019)

0

10

20

30

40

50

60

70

80

Directcable TV

DTH payTV

IPTV OTT payTV

Total directpay TV

subscribers

Mill

ions

2013 2015 2017 2019

5

47%

Increasing connectivity penetration and speeds

0

100

200

300

400

500

600

700

2018 2019

Mill

ions

Population 4G

59%

MOBILE BROADBAND SUBSCRIBERS

Latin AmericaFIXED BROADBAND SUBSCRIBERS

Latin America

mobile broadband

penetration

fixed internet HH

penetration

Source: Dataxis

0

5

10

15

20

25

30

35

40

Data-onlymobile

FTTx Internetcable

xDSL

Mill

ions

2015 2017 2019

6

0

50

100

150

200

250

2019 2020 2021 2022 2023 2024 2025

Mill

ions

Number of households SVOD subscribers

Growing OTT adoption and multiplication of platforms

SVOD SUBSCRIBERS EVOLUTION

Latin America

19%

31%

INCREASING NUMBER OF ACTIVE SVOD PLATFORMS

Latin America

Source: Dataxis

30

48

66

0

10

20

30

40

50

60

70

Number of active platforms

2015

2017

2019

7

Freeing the UX from the limitations of STB hardware performance

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Freeing the UX from the limitations of STB hardware performance

Your UX is state-of-the-art today (or it was when launched), but will it be in the future?

Upgrades can be rolled-out, with cost and risk, but the performance and capability of the hardware in the home is fixed, limiting what can be done

This is a major competitive disadvantage for operators compared with the always up-to-date services delivered by pure OTT providers

Today we will look at solutions to this problem.

Why is it necessary?

9

AgendaWebinar // April, 2020

Introduction to Vewd1

The UX is in constant flux2

When can it be used?5

Upgradeable UX options3

Vewd Atom cloud browser4

Deployment Considerations6

Summary and Q&A7

10

Where You’ll Find Vewd TechnologyHybrid Broadcast TV

Devices

Pay TV Operator STBsSmart TVs

Providing access to apps

and playback of content

for leading TV OEMs /

ODMs, retailers and their

customers

Integrating OTT content

and apps with Hybrid TV

broadcast services to

deliver complete

solutions for

broadcasters and

manufacturers

Enabling the aggregation

of OTT and VOD content

with linear TV to create a

unified user experience

for pay TV subscribers.

In-Vehicle

Infotainment Systems

Delivering the full OTT

and hybrid TV experience

on connected vehicles to

entertain passengers on

the move

All trademarks are the property of their respective owners.Used for illustrative purposes.

11

EMPLOYEES WORLDWIDE

220+

170COUNTRIES WITH VEWD DEPLOYMENTS

300DEVICES DEPLOYEDWORLDWIDE

MILLION

GLOBALCUSTOMERS

50+

Vewd In NumbersThe Leading provider of OTT and Hybrid TV Solutions

40UNITS ADDED EACH YEAR

MILLION

12

The UX is in constant flux

1313

New OTT apps are constantly being addedU.S. Active Apps

Source: Dataxis

2020

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Popularity of OTT apps varies over timeU.S. Top 10 - 2019 v 2016

2016

1. Netflix

2. Amazon Video (Amazon Prime)

3. Hulu

4. MLB.TV

5. WWE Network

6. Sling TV

7. HBO Now

8. Crunchyroll

9. Showtime

10. CBS All Access

2019

1. Netflix

2. Amazon Prime Video

3. Hulu (SVOD)

4. HBO NOW

5. CBS All Access

6. STARZ

7. Showtime

8. MLB.TV

9. ESPN+

10. Sling TV

Source: Parks Associates

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Apps are constantly being upgraded Along with performance requirements

1616

Subscriber expectations evolveAnd business needs demand regular refreshes of the offer

1717

Big data opens up new opportunitiesThat depend on or affect the user experience

A/B TestingWhat layouts achieve the best results?

DiscoveryWhat are

viewers really looking for?

PromotionWhat do

want subscribers to watch /

buy?

InteractionWhat

engagement models work

best? Big data may affect:

● How the UX should be laid out

● How it is structured to shorten the

route to content

● Which types of services are

featured more prominently

● Other variations that insights from

the data suggest

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What if the STB UX could be updated continuously?

● App catalog kept always up-to-date with the latest service launches

● New services and offers deployed across the entire installed base or

tailored to specific segments or individuals, maximising uptake

● New business ideas tried out and tested before roll-out across the

footprint

● All subscribers on the same version of apps and services making

support less costly

● Software upgrades or box swap-outs unnecessary - saving CapEx and

OpEx

Whatever the performance of the box

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Upgradeable UX Options

2020

Connected STB modelHigh performance set-top box, minimal broadband/processing in Cloud

Broadcast / IPTV

Services

OTT Services

STBw/ full browser

EPG / UX

Operator Cloud

Services

● Personalizable● Upgradeable (for a while)● High STB performance requirement● Minimal Cloud processing● Minimal Cloud bandwidth

2121

Virtual STB modelVery low set-top box performance, high broadband/processing load in Cloud

OTT Services

Broadcast / IPTV

Services

OTT Metadata

OTT Video

STB Virtualization

Trans-coding

STBThin client

EPG / UX

Operator Cloud

Services

● Personalizable● Upgradeable (continuously)● Very low STB performance requirement● Heavy Cloud processing load● Heavy Cloud bandwidth load

2222

Cloud Browser modelLow set-top box load, minimal broadband/processing load in Cloud

OTT Services

Broadcast / IPTV

Services

Cloud Browser

STBThin client

EPG / UX

Operator Cloud

Services

● Personalizable● Upgradeable (continuously)● Low STB performance requirement● Light Cloud processing load● Light Cloud bandwidth load

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Vewd Atom

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Vewd Atom

Thinclienton device

Browser in the cloud

Unified HTML experiences

on any hardware

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Full HTML5

Features

● Latest Chromium running on server

● Support latest frameworks and tools

● Video

● Canvas

● MSE/EME

● Persistent memory for cookies (optional)

Benefits

● 100% transparent for most UI and apps

● Reduce UX/app development costs

● Expand target footprint

● Shorter time-to-market

● Faster innovation cycle

● Pre-integrated with Vewd OpX and apps

The latest Chromium on every device

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Hybrid approach

Features

● Video content streamed from original server

directly to Atom client

○ No transcoding

○ No additional CPU/bandwidth

● UI encoded in H264 or JPG

○ Adaptive bitrate

○ Variable frame rate

○ Inactive UI → zero CPU/bandwidth

Benefits

● Super-efficient server infrastructure

● UX always responsive

● Can blend graphics and video

● Works over Internet

● End-to-end video security intact

Video streaming intact + UI optimised from cloud

Video

UI

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Ultra low latency

Latency contributions

● Network round trip <50ms

● Atom server+client operations 60-120ms

● App runs much faster on cloud!

Benefits

● UX is fast, smooth and always responsive

● Managed networks and public Internet

Cloud-browser latency is... higher or lower?

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Latency contributions

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Flexible thin clientDo what’s optimal on the client, nothing more

Atom client features

● Minimal requirements

(<128MB RAM, <1000 DMIPS)

● Uses native streaming, codecs and DRM

● Vewd Media Player can be included for full

ABR/DRM support, certified with Vewd

network of content partners (*)

● Native OTT apps can be integrated (*)

Benefits

● Use low-end SoC and devices

● Optimisation based on use cases

● Harmonise devices but don’t waste existing

hardware capabilities

(*) subject to hardware specs verification

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When can it be used?

3030

Usage Example: Full STB UIWith Vewd OpX or a third party UI

All trademarks are the property of their respective owners.Used for illustrative purposes.

3131

Usage Example: Video App AggregationWith Vewd App Store

• Leading entertainment from around the world.

• Connecting consumers everywhere to the content they love.

• The most-deployed TV App Store for smart TV and set-top boxes

All trademarks are the property of their respective owners.Used for illustrative purposes.

3232

Usage Example: Voice AssistantsGoogle Assistant delivers on-screen results in HTML5

All trademarks are the property of their respective owners.Used for illustrative purposes.

3333

Usage Example: Banners, Dialogs & AdsFor interactive apps and advertising within programmes or in the UX

All trademarks are the property of their respective owners.Used for illustrative purposes.

3434

Usage Example: Casual Gaming PortalWith Vewd selection of games

All trademarks are the property of their respective owners.Used for illustrative purposes.

3535

Usage Example: T-Commerce PortalWrite once, run on any device

All trademarks are the property of their respective owners.Used for illustrative purposes.

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Deployment Considerations

3737

Capacity planning

1. Estimate workload 2. Calculate capacity 3. Design deployment

Key questions:

● How many subscribers?

● How many concurrent users?

● How many TV hours-per-day?

● What use case?

● How much time spent on the UI?

Based on reference data and tests

● # of H264 encoding tasks per CPU

● Typical bitrate for UI streams

● Typical concurrency rate

● etc.

For example:

● Start with public cloud to minimize setup costs and time-to-market

● Consider moving to on-prem installation to reduce costs over time

● Cloud auto scaling to handle peaks

● Graceful degradation of resolution or frame rate if necessary

3-steps process

Contact us to discuss your specific case!marketing@vewd.com

3838

TCO comparisonCost reduction enabled by Vewd Atom

Vewd

Atom Better STB HW

UI adaptation &

maintenance

39

Common experience across

all devices

Vewd AtomIn A Nutshell

Fast Innovation

Enhanced Security

Cost Reduction

Scalable Content

FutureProofing

40

Q&A

For follow up questions

contact us at:

marketing@vewd.com