ULTRA HIGH DEFINITION MARKET OUTLOOK AND NEXT STEPS

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1 ULTRA HIGH DEFINITION MARKET OUTLOOK AND NEXT STEPS Christoph LIMMER, Director Commercial Development Broadcast & Video Michel CHABROL, Marketing Director Innovation

2 AGENDA Market environment Technical framework & Commercial activites 3

3 SUCCESS INDICATORS FOR ULTRA HD Over 800 Ultra HD channels within the next 10 years predicted * With more than 2/3 of channels distributed, Direct-to-Home will drive Ultra HD roll-out * Growth mainly driven by North America, Western Europe and East Asia The eco-system for UltraHD is already more established by comparison to the initial HD development life-cycle Prices for Ultra HD TV sets have already reached affordable price points and are largely available in-store Broadcasters in East Asia have already started launching commercial Ultra HD offerings to subscribers *Nothern Sky Research,

4 PREDICTED ULTRA HD CHANNEL GROWTH Over 800 Ultra HD channels within the next 10 years predicted with a CAGR of almost 50% * Growth mainly driven by North America (40%), Asia (17%) and Western Europe (14%) HTS will support roll-out in selected regions, notably in North America and Western Europe Number of UltraHD Channels * *Nothern Sky Research,

5 SATELLITE TO DRIVE ULTRA HD CHANNEL GROWTH With almost 70% of channels distributed via DTH platforms, satellite will drive Ultra HD roll-out * For 2015, already 12 UltraHD channels are expected About 60% of channels broadcast via satellite will be from North America, Western Europe and East Asia Number of UltraHD Channels by platform * 0 DTH Others *Nothern Sky Research,

6 COMMERCIAL ULTRA HD OFFERS ALREADY AVAILABLE South Korean DTH operator KT SkyLife and Japanese Sky PerfecTV! have launched first UltraHD channels in June 2014 KT SkyLife is broadcasting 4 hours of UltraHD content per day and is planning to have 2 full UltraHD channels by beginning of 2015 NexTV via Sky Perfect JSAT broadcasts 6 hours of Ultra HD content per day Sky Perfect plans to open an Ultra HD commercial channel in 2015 Three 4k TV channels planned in Japan in 2016 Major US player DirecTV announced UltraHD VoD for end of

7 CONSUMER EQUIPMENT "ULTRA HD READY " UltraHD availability already much higher than what immediately comes to mind UltraHD devices are already in the living environment and actively used Chinese manufacturers offer Ultra HD TV sets for less than US$1,000 Film studios already produce massively UltraHD content UltraHD is in a much better position moving forward compared to the initial HD development life-cycle 3

8 AGENDA Market environment Technical framework & Commercial activites 9

9 ULTRA HDTV IN A NUTSHELL (1) Ultra High Definition TV (Ultra HDTV) will offer Higher resolution Higher frame rate(s) More colours Higher Dynamic Range (HDR) Immersive audio 10

10 ULTRA HDTV IN A NUTSHELL (2) High Definition and Ultra High definition High Definition (HD) HDTV (ITU-R BT.709) Up to 2.1 Mpixels per frame (1920 pixels x 1080 lines) Frame rate: 25 or 30 fps (frames per second or Hz) May be 50 / 60 fps (3G) in the future Colour depth : 8 bits (16.7 Mcolours) in DTH (Direct To Home), 10 bits in contribution (1 Billion) Ultra HDTV : 2 formats defined by ITU * (ITU-R BT.2020) UHDTV1 ( 4k TV ) : 3840 x 2160 pixels = 8.3 Mpixels UHDTV2 ( 8kTV / Super Hi-Vision by NHK): 7680 x 4320 pixels = 33.2 Mpixels Note: Quad HD = «Temporary» Ultra HD format based on BT.709 * ITU = International Telecommunication Union 11

11 ULTRA HDTV IN A NUTSHELL (3) Ultra HDTV should also offer: Progressive mode (instead of interleaved) Frames rates: The experts recommend 50 / 60 fps as a minimum for UHDTV1 (Phase 1) Higher frame rates later on (100 / 120 fps): Phase 2 of UHDTV1 + UHDTV2 (Super Hi-Vision) Colour depth: 10 bits (1 billion colours) or 12 bits (68.7 billion colours) Colour gamut : considerably increased (see slide 6) More colours and more nuances High Dynamic Range (also possible with HD): greater dynamic range of luminosity Immersive audio later on 12

12 ULTRA HDTV IN A NUTSHELL (4) HD 720p (1280 x 720) HD 1080i or p (1920 x 1080) = 2.1 Mpixels UHDTV1 (4k TV) & Quad HD (3840 x 2160 p) = 8.3 Mpixels 4k Cinema (4096 x 2160) UHDTV2 (8k TV) or Super Hi-Vision (7680 x 4320 p) = 33.2 Mpixels 13

13 ULTRA HDTV IN A NUTSHELL (5) Human vision UHDTV (BT.2020) 4k Cinema (4096 x 2160) HDTV (BT.709) 14

14 CALENDAR OF IMPLEMENTATION (TENTATIVE) Ultra HDTV implementation: UHDTV 1 (4k TV): 2 phases are envisaged by DVB (tentative) Phase 1: up to 50 / 60 fps (colour space: BT 709, or : BT 2020) Phase 2: 100 / 120 fps (BT 2020) Then UHDTV2 (8k TV) UHD-2 (tentative) UHD-1 Phase 2 (tentative) UHD-1 Phase p50/60 Bit depth: 10bit Color Space : Rec. 709 and BT (optinal) Subsampling: 4:2:0 Audio: Existing DVB Toolbox Consideration for forward compatibility and bitrate efficient subtitles 4320p100/120 * 2160p100/120 * Bit depth: 10bit, 12bit, 14 bit? Color Space : fuller Rec. 2020? Audio: beyond 5.1 or object based 1080p100/120 * (base layer) Bit depth: 10bit, 12bit, 14 bit optional Color Space : Rec subset (colourist metadata for transition to BT. 2020) Dynamic Range: HDR Subsampling: 4:2:0, 4:2:2 & 4:4:4 Audio: beyond 5.1 or object based Scalability: Yes Coding: HEVC Main / / Production Distribution Presentation * It was suggested that the standard should also include 120/1.001 fps, 60/1.001 and 30/1.001 fps. Further decisions on 100 and 150 fps will be taken. 15

15 CALENDAR (2) : FROM DEMO TO COMMERCIAL UHDTV 1 (4k TV) Demos, tests, showcases implementation Phase 1 (up to 50 / 60 fps) commercial January 2013: 1 st European UHD Permanent demo channel by Eutelsat (Quad HD MPEG-4) at 10 East 2 June 2014: Start of 4kTV broadcasting by NexTV / SKY Perfect in Japan + KT SkyLife in Korea 2016: Three 4kTV channels on air in Japan Phase 2 (100 / 120 fps) commercial 26 May 2014: Eutelsat launches on HOT BIRD an Ultra HD demo channel in HEVC 50 fps, 10-bit colour depth 2015: Sky Perfect 4k commercial channel in japan NHK /Super Hi-Vision UHDTV 2 (8k TV) Experiments Receiver Production Test Broadcast Promotion Broadcast Rio 2016 Olympic Games Tokyo 2020 Olympic Games

16 CALENDAR (3) Encoding / compression: MPEG-4: good efficiency with progressive mode, but industry is now focused on a new standard: HEVC (High Efficiency Video Coding) HEVC: should be 30 to 50% better than MPEG-4 (H264/AVC) can be applied to all formats: HD, Ultra HD Ultra HD needs HEVC to take off Connectivity: HDMI 2.0 connectors 17

17 CALENDAR (4) Encoding: With HEVC: Single «tile» (image encoded in a single block) Soft encoding: 2014 (for 50 / 60 fps) Hardware encoders: 2015 (according to industry) Modulation: With satellite: no problem with DVB-S2 Cable: with DVB-C2 Terrestrial: with DVB-T2 17/09/

18 CALENDAR (5) : HOME EQUIPMENT UHDTV 1 (4k TV) DTH channels via satellite Demo channels Quad HD (MPEG-4) HEVC (up to (50/60 fps) First commercial channels (50/60 fps) HEVC (single tile) TV sets HDMI 1.4 (30 fps) HDMI 2.0 (up to 60 fps) Some TV manufacturers combine HEVC 60 fps and HDMI 2.0 TV sets with DVB-S2 & HEVC decoder UHD TV with HEVC decoder (up to 60 fps) UHDTV Blu-ray players UHDTV Blu-ray with HEVC decoding? UHDTV Camcorders UHDTV Consumer Camcorders? UHDTV Game stations UHDTV Game stations? 19

19 CALENDAR (6): UHDTV1 GLOBAL DISTRIBUTION + HOME DTH satellite Ready Some 2014 TV sets can be directly connected to the satellite dish! (Embedded DVB-S2 demodulator and HEVC decoder) // k camcorders : Consumer : end 2014 Prosumer : end k Blu-ray players + Game stations: end 2014 / k Satellite Set Top Box With HEVC: k UHD TV set: HDMI 2.0: 2014 (50/60fps) (Some with embedded HEVC decoder) k via fiber: same time as via satellite, but not everywhere DTT retransmitter 4k via DTT: not before 2015 with DVB-T2 & HEVC, and not everywhere 4k via ADSL : with HEVC, but not everywhere New boxes for 4k TV 20

20 CAPACITY FOR UHDTV1 VIA SATELLITE Summary of possibilities offered by satellites: Assumptions made: HEVC improvement: from 30 to 50% with respect to MPEG-4 (current equipment) Compression gives higher efficiency with progressive scanning, than with interlaced Type of content Bit rate in DTH with MPEG-4 encoding Number of MPEG-4 channels per 36 MHz transponder (DVB-S2) Bit rate in DTH with HEVC encoding (Based on current assessment from Industry) Number of HEVC channels per 36 MHz transponder (DVB-S2) HDTV 1080i 25 7 to 8 Mbit/s Up to 8 Around 4 Mbit/s Up to 15 HDTV 1080p 50 (3G) Around 10 Mbit/s Up to 6 Around 5 Mbit/s Up to 12 4k at 25 fps (p) 15 to 20 Mbit/s Up to 4 7 to 10 Mbit/s Up to 8 4k at 50 fps (p) 26 to 40 Mbit/s Up to 2 13 to 20 Mbit/s Up to 4 Ratio in 1 transponder: 8 HD channels (25i) with MPEG-4 now 4 UHDTV1 channels (50p) with HEVC Note : The bit rate figures are based on best inputs from industry (may change later on) 21

21 EUTELSAT DEMONSTRATION CHANNELS 1 st channel launched on 8 January 2013: Quad HD MPEG-4 Transmitted via Eutelsat 10A (10 East) Technical solution set up with ATEME 4 Full HD streams (1920 x 1080p 50 fps) + 1 Audio (stereo now) MPEG-4 encoding : 4 video streams of Mbit/s (50 fps) Modulation: DVB-S2 8PSK 2 nd channel launched for IBC 2013: HEVC at 30 fps Channel in cooperation with Samsung launched for IFA 2013 (10 East) (Quad HD MPEG-4) HEVC 50 fps demo channel launched on 26th May 2014 HEVC encoding 50 fps 10-bit colour depth (1 billion colours) On HOT BIRD: premium DTH position over Extended Europe 22

22 EUTELSAT 10A AT 10 EAST Widebeam downlink coverage 23

23 EUTELSAT HOT BIRD AT 13 EAST Widebeam downlink coverage 24

24 LIVE BROADCASTING (SOME EXAMPLES) EUTELSAT 5 West A at 5 West: Live retransmission of Roland Garros in HEVC, 50 fps, with the French Tennis Federation and France TV Sport Live retransmission of 2 matches (+ tests on 28 June) of the 2014 FIFA World Cup Brazil to a big cinema in London (VUE Westfield), with FIFA, HBS, Sony, IDC, Dolby, DSAT, dcinex, ATEME, Decoding of Quad HD MPEG-4 in a Eutelsat Teleport and live reencoding in HEVC 60 fps with an ATEME Titan encoder 25

25 ULTRA HD IMPLEMENTATION Early adopters of Ultra HD: Bouquet / pay-tv operators Thematic channels What type of channel? UHDTV1, most likely at 50/60 fps Channels with play-out (recorded encoded content) Cinema (4k production at 24 and 48 fps) Documentaries Lifestyle Event channels Sports Operas, ballets Key points for UHDTV1 implementation for bouquet operators: Installed base of STBs (big inertia): n x millions units Two types (with satellite): DVB-S MPEG-2 SD & DVB-S2 HD MPEG-4 New STBs needed (HEVC + UHDTV1 / 4k TV) Simulcast transmissions?: SD + HD + 4k TV Strategy: Convert all SD channels to HD? (e.g. SKY Perfect in Japan) Replace all old STBs by a single new model decoding MPEG-2 / MPEG-4 / HEVC? 26

26 THANK YOU FOR YOUR ATTENTION Christoph LIMMER Director, Commercial Development, Broadcast and Video Michel CHABROL Director, Marketing Innovation and Digital Cinema 18

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