www.ovum.com Innovation Case Study: illico TV New Generation
Innovation Videotron s illico TV new generation delivers a simple, customizable high-definition television viewing experience. It gives customers user-friendly access to a flexible selection of content and entertainment offerings with a single click. It is supported by a technologically advanced, upgradeable platform. Customers can build their own content package from CAD38 per month (choosing 5 channels) to CAD56 per month (choosing 30 channels). There are also preassembled and special interest packages. Customers get a HD terminal and/or HD PVR on loan when they sigh up for any package. Service Provider Success Matrix illico was ranked highest in customer satisfaction with television service providers in the east region of Canada for 2013 by J.D. Power. As of 30 September 2014, the number of subscribers to the illico Digital TV service stood at 1,549,000. 2
Differentiation Powerful search tool enabling users to sort contents by title, director, actor or key word One click recording Interactive applications for easy access to weather and free preview Simple parental control options Multi-screen TV experience TV, web, tablet and mobile Personalized menus Ability to pause and resume play on a different screen or remotely program personal video recorder (PVR) Value Generation Videotron aims to position itself as the leader in bringing the capabilities and convenience of HD and DVR services to Canada. illico TV New Generation is Videotron s new initiative to continue to advance its video strategy by utilizing its head-end and DOCSIS networks combined with Cisco's set-top technology to deliver attractive video entertainment experiences on air, online, on demand. Illico TV new generation features innovative new functions to meet Quebecers' needs and capture the market. 3
Innovation: Uniqueness and Significance Uniqueness illico TV new generation features navigation functionalities that are uniquely simple and intuitive. In addition, it offers the largest selection of Frenchlanguage HD channels and movies in Canada and provides easy access to an on-demand catalogue of more than 30,000 titles per year. Significance illico TV new generation has high mass market significance. It has been promoted as a technology by Quebecers, for Quebecers. It has made Videotron the uncontested content leader in Quebec. 4
Technical Overview illico TV new generation is based on Alticast's tru2way software. This innovative solution provides Videotron subscribers with exciting applications including: Digital Video Recorder (DVR) functionality, Video-on-Demand, Electronic Program Guide, Pay-Per-View, Caller ID, Weather and the ability for the subscriber to choose their own entertainment package. The platform also provides the capability to add additional capabilities as they become available. Alticast's tru2way software solution is based on open standards and provides Videotron with the flexibility and capability to add additional set-top box manufacturers and applications from multiple developers. Videotron opted for Cisco's HD set-top box platform to deploy the next generation of its enhanced illico digital TV service. Cisco Explorer 4642 HD and 8642 HD-DVR set-top boxes give service providers the opportunity to: Advance their video service plans by integrating high-definition video, digital video recording, and new service application features. They offer consumers innovative features such as a 500-gigabyte DVR hard disc drive that supports up to 280 hours of standard-definition and up to 55 hours of high-definition programming, hybrid video service support, open standard support, multiple tuner support as well as USB 2.0 and Ethernet connectivity. Moreover, they are qualified to meet ENERGY STAR Tier 1 strict energy-efficiency guidelines- the Cisco 8642 HD-DVR requires less than 1 watt of power consumption in standby mode, and is capable of light sleep' mode. Videotron developed the solution in-house, with more than 500 Videotron employees working on the platform. 5
Service Provider Videotron, a wholly owned subsidiary of Quebecor Media Inc., is an integrated communications company engaged in cable television, interactive multimedia development, Internet access, cable telephone and mobile telephone services. Videotron is a leader in new technologies with its illico interactive television service and its broadband network, which supports high-speed cable Internet access, analog and digital cable television, and other services. As of September 30, 2014, Videotron was serving 1,796,300 cable television customers, including 1,549,000 Digital TV subscribers. Videotron is also the Québec leader in high-speed Internet access, with 1,432,300 subscribers to its cable service as of September 30, 2014. As of the same date, Videotron had 589,400 subscriber connections to its mobile telephone service and was providing 1,286,200 cable telephone services. Partner The deployment of illico TV new generation was a collaborative effort of Videotron, Alticast and set-top box suppliers such as CISCO. Alticast, a South Korea based company, was the primary supplier and developer of applications and the user experiences, and was the primary integrator for Videotron. Since inception in 1999, Alticast, has successfully deployed a variety of products into the growing Digital TV Market; User Interfaces, Applications, itv Server Systems, Set-Top Boxes and idtv Hybrid middleware. Further information http://www.videotron.com/residentiel/television/experience-illico 6
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