PAY TV MONETIZATION IN THE AGE OF OTT. enabled by.

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1 PAY TV MONETIZATION IN THE AGE OF OTT enabled by

2 MONETIZING THE OTT AGE Pay TV has entered the multi-device over-the-top (OTT) era on a global basis. People still consume video in traditional ways through cable, satellite or terrestrial broadcast networks but the classic consumption model is changing. Broadband now provides the delivery path for video. It is shifting video s landscape to a focus on individuals and an experience that allows each audience member to search, browse, find, buy, and play content on-demand from anywhere. Whether the individual is receiving Pay TV services for the first time via broadband, or is expanding the Pay TV experience to include multiple, broadband connected devices, the overthe-top consumption model is gaining dominance in markets everywhere.

3 This fundamental change has massive impacts. Traditional Pay TV providers are either forced to compete against or embrace new competitors. It gives customers more channels through which to access content. It increases customers expectations around video experiences. In simple words it changes the ways in which stakeholders in the paid content value chain will generate and grow revenue from here on. Monetizing the over-the-top era is the next great challenge, and for sure the most critical for Pay TV. From a technical delivery point of view, multi-device OTT delivery has already quite well progressed. Broadband backbone and access networks are widely available along with CDN s, Cloud Services as well as major advances in efficient video encoding based on AVC and HEVC have been achieved. These ingredients make up a potentially impressive video experience for viewers on a range of devices including Smart TVs, tablets, smart phones and more. But what separates the viewer from a customer is the act of payment. This opportunity to generate new revenues opens a wide range of additional challenges. First, it needs attractive business models for customers. This demands B2B partnerships between traditional Pay TV operators, OTT Service Providers and of course Content Providers. And it needs an operating entity which is offering a flexible supporting business platform to orchestrate all B2C and B2B business processes enabling short time to market cycles for building premium video offerings to be consumed anytime and everywhere.

4 TRANSFORM AND EXTEND YOUR BUSINESS OPPORTUNITIES It is out of question in the industry that the new business models demand extensions or replacements of existing CRM and Billing Systems, because existing legacy systems are not flexible enough to cope with the new kind of business requirements - like for example building B2C products out of services provided by various partners (eg partnership between cloud based VoD service, a broadband access service and DTH PayTV channels). Imagine a business scenario managing such a highly complex product and think about extensions to offer the very same product by different retail operators with different service supplying partners and all of these in various countries. Existing legacy CRM/Billing as used by broadcast Pay TV operators is not able to handle these business scenarios, since these were designed typically for traditional Pay TV business models in the broadcast domain. Typically it is not even possible to easily support simple S-VoD & T-VoD models and for sure the systems are not able to support the more complex scenarios with multiple service suppliers and/or multiple retail operators. This is just a taste of today s and tomorrow s business needs for service providers and it results in the demand for R6 which is designed to support partnering, orchestration and monetization of multiple services. In the end, all of this is very good news for new Service Providers as well as for those traditional Pay TV Operators which aim to transform and extend their business opportunities in a multi device OTT era for premium video content leveraging the full potential of technology progress in premium video distribution!

5 R6 IN THE PAY TV / OTT INDUSTRY R6 is already a trusted and well-known solution in the Pay TV and OTT industry. The flagship implementation in this market segment is at a world-leading satellite operator, which operates an open PayTV and OTT platform for TV/OTT service providers in Germany. In this context R6 manages (as of June 2014): More than 1.5 Mio customers Ordering and provisioning of all linear TV and non-linear OTT products as well as ordering of goods (e.g. CA Modules). Subscriptions with monthly billing, invoicing and payments. Prepaid model: One-Time Payment for 12 months in advance. Payment alternatives: direct debit, credit card, PayPal.

6 R6 THE CONCEPT-TO-CASH PLATFORM THAT ENABLES YOUR MEDIA BUSINESS MODELS Infonova s concept-to-cash R6 platform is specifically designed to support traditional and new business models on a single platform. It delivers partnering orchestration, monetization & automated revenue sharing allocation of products & services for multiple suppliers & partners. R6 enables providers and enterprises to partner together and define terms of trade. This allows them to transact with confidence because money due to each party is automatically allocated when customers buy products and services. Leveraging an end-to-end JavaEE virtualized API architecture, R6 enables multiple tenant operators to configure, bundle and price their own product & service portfolios including cloud (IaaS, PaaS & SaaS), broadband IP, VoIP, IPTV, PSTN, mobile with other third party

7 services, e.g. media, insurance, device distribution, content, water, gas and power - for their target markets. This multi-tenancy enables a CSP to lower the entry hurdle for new business models but also allows to consolidate its current businesses on a single platform. R6 provides operators with a platform that can cope with the dramatically changing value chains of heavily converging industries and that significantly increases their operational efficiency at the same time. R6 SUPPORTS PARTNERING, ORCHESTRATION AND MONETIZATION R6 is a highly pre-integrated solution stack for managing an operator s entire service portfolio, customer base and business partner relationships: R6 enables consumer, business, wholesale & multi-tenant business models simultaneously Infonova s R6 unique business architecture supports multiple tenants to be enabled on a single platform with individual access to the full range of R6 functionality. The multi-layer design gives each tenant/operator control of their own business Easy and intuitive web-based applications with reporting capabilities for operators, CSRs, end customers and channel partners to support your Customer Experience Management Sophisticated Java EE integration platform for multiple in-house and external supplier OSS stacks with workflow, notification & task management, reporting & analysis and WebAC framework Catalog driven order management & zero touch/low touch service provisioning orchestration Flexible deployment options including on-premise, in private or public cloud Online charging and real-time customer-centric policy management through seamless orchestration of prepaid products in a truly convergent way

8 INFONOVA Infonova, founded in 1989, is a premium BSS vendor to telco, media and convergent industries. Infonova s R6 is a proven E2E Multi-Tenant Concept-to-Cash BSS Platform. R6 unique business architecture supports multiple tenants to be enabled on a single platform with individual access to the full range of R6 functionality, thereby enabling consolidation of various business segments and brands on one platform. R6 enables a fast implementation of digital economy business models at the same time. Infonova s R6 has been implemented for fixed line incumbents, tier 2 aggregators / attackers, cable TV, mobile MVNO bureau, utilities and content players supporting both Telco 1.0 and Industry 2.0 business models.